{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/43-13.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/43-13.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/43-13.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/43-13.html"}],"law_id":64540,"edition_id":1,"section_id":64540,"structure_id":14160,"section_number":"43-13","catch_line":"Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material","history":"1932, p. 483; Michie Code 1942, \u00a7 6429b; 1968, c. 568; 1980, c. 390; 1982, c. 391; 1992, c. 713; 1998, c. 754; 2020, c. 873.","full_text":"Any contractor or subcontractor or any officer, director or employee of such contractor or subcontractor who shall, with intent to defraud, retain or use the funds, or any part thereof, paid by the owner or his agent, the contractor, or the lender to such contractor or by the owner or his agent, the contractor, or the lender to a subcontractor under any contract for the construction, removal, repair, or improvement of any building or structure permanently annexed to the freehold for any other purpose than to pay persons performing labor upon or furnishing material for such construction, repair, removal, or improvement is guilty of larceny in appropriating such funds for any other use while any amount for which the contractor or subcontractor may be liable or become liable under his contract for such labor or materials remains unpaid and may be prosecuted upon complaint of any person or persons who have not been fully paid any amount due them.\n\t\tThe use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.","order_by":null,"text":{"0":{"id":234875,"text":"Any contractor or subcontractor or any officer, director or employee of such contractor or subcontractor who shall, with intent to defraud, retain or use the funds, or any part thereof, paid by the owner or his agent, the contractor, or the lender to such contractor or by the owner or his agent, the contractor, or the lender to a subcontractor under any contract for the construction, removal, repair, or improvement of any building or structure permanently annexed to the freehold for any other purpose than to pay persons performing labor upon or furnishing material for such construction, repair, removal, or improvement is guilty of larceny in appropriating such funds for any other use while any amount for which the contractor or subcontractor may be liable or become liable under his contract for such labor or materials remains unpaid and may be prosecuted upon complaint of any person or persons who have not been fully paid any amount due them.\n\t\tThe use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract before paying all amounts due or to become due for labor performed or material furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence of intent to defraud. Any breach or violation of this section may give rise to a civil cause of action for a party in contract with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials on the project. Any contract or subcontract provision that allows a contracting party to withhold funds due under one contract or subcontract for alleged claims or damages due on another contract or subcontract is void as against public policy.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14160,"edition_id":1,"name":"Mechanics' and Materialmen's Liens","identifier":"1","label":"chapter","depth":2,"order_by":1,"parent_id":14159,"metadata":{},"date_created":"2026-06-26 03:47:04","date_modified":"2026-06-26 03:47:04","permalink":{"id":221267,"object_type":"structure","relational_id":14160,"identifier":"1","token":"43\/1","url":"\/43\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14159,"edition_id":1,"name":"Mechanics' and Certain Other Liens","identifier":"43","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:47:04","date_modified":"2026-06-26 03:47:04","permalink":{"id":221265,"object_type":"structure","relational_id":14159,"identifier":"43","token":"43","url":"\/43\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":81902,"structure_id":14160,"section_number":"43-1","catch_line":"Definitions","url":"\/43-1\/","token":"43\/1\/43-1","metadata":false},{"id":72410,"structure_id":14160,"section_number":"43-10","catch_line":"Sufficiency of memorandum, affidavit and notice required by \u00a7 43-9","url":"\/43-10\/","token":"43\/1\/43-10","metadata":false},{"id":55337,"structure_id":14160,"section_number":"43-11","catch_line":"How owner or general contractor made personally liable to subcontractor, laborer or materialman","url":"\/43-11\/","token":"43\/1\/43-11","metadata":false},{"id":79868,"structure_id":14160,"section_number":"43-12","catch_line":"Repealed","url":"\/43-12\/","token":"43\/1\/43-12","metadata":false},{"id":64540,"structure_id":14160,"section_number":"43-13","catch_line":"Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material","url":"\/43-13\/","token":"43\/1\/43-13","metadata":false},{"id":69845,"structure_id":14160,"section_number":"43-13.1","catch_line":"Use of lien waiver form; forgery or signing without authority","url":"\/43-13.1\/","token":"43\/1\/43-13.1","metadata":false},{"id":86055,"structure_id":14160,"section_number":"43-13.2","catch_line":"When an affidavit or a signed statement of payment required of owner prior to sale","url":"\/43-13.2\/","token":"43\/1\/43-13.2","metadata":false},{"id":80570,"structure_id":14160,"section_number":"43-13.3","catch_line":"An affidavit or a signed statement of payment required of owner prior to sale or refinance; penalty","url":"\/43-13.3\/","token":"43\/1\/43-13.3","metadata":false},{"id":79181,"structure_id":14160,"section_number":"43-14","catch_line":"Repealed","url":"\/43-14\/","token":"43\/1\/43-14","metadata":false},{"id":71794,"structure_id":14160,"section_number":"43-14.1","catch_line":"Service of notices","url":"\/43-14.1\/","token":"43\/1\/43-14.1","metadata":false},{"id":66035,"structure_id":14160,"section_number":"43-15","catch_line":"Inaccuracies in memorandum or description not affecting lien","url":"\/43-15\/","token":"43\/1\/43-15","metadata":false},{"id":55414,"structure_id":14160,"section_number":"43-16","catch_line":"What owner may do when contractor fails or refuses to complete building, etc","url":"\/43-16\/","token":"43\/1\/43-16","metadata":false},{"id":68827,"structure_id":14160,"section_number":"43-17","catch_line":"Limitation on suit to enforce lien","url":"\/43-17\/","token":"43\/1\/43-17","metadata":false},{"id":71472,"structure_id":14160,"section_number":"43-17.1","catch_line":"Hearing on validity of lien","url":"\/43-17.1\/","token":"43\/1\/43-17.1","metadata":false},{"id":57819,"structure_id":14160,"section_number":"43-18","catch_line":"Lien of general contractor to inure to benefit of subcontractor","url":"\/43-18\/","token":"43\/1\/43-18","metadata":false},{"id":58965,"structure_id":14160,"section_number":"43-19","catch_line":"Validity and priority of lien not affected by assignments","url":"\/43-19\/","token":"43\/1\/43-19","metadata":false},{"id":61935,"structure_id":14160,"section_number":"43-2","catch_line":"Structures, materials, etc., deemed permanently annexed to freehold","url":"\/43-2\/","token":"43\/1\/43-2","metadata":false},{"id":66681,"structure_id":14160,"section_number":"43-20","catch_line":"Extent of lien where owner has less than fee in land","url":"\/43-20\/","token":"43\/1\/43-20","metadata":false},{"id":66928,"structure_id":14160,"section_number":"43-21","catch_line":"Priorities between mechanics' and other liens","url":"\/43-21\/","token":"43\/1\/43-21","metadata":false},{"id":68364,"structure_id":14160,"section_number":"43-22","catch_line":"How liens enforced","url":"\/43-22\/","token":"43\/1\/43-22","metadata":false},{"id":72370,"structure_id":14160,"section_number":"43-23","catch_line":"Priority among liens perfected under this chapter","url":"\/43-23\/","token":"43\/1\/43-23","metadata":false},{"id":67717,"structure_id":14160,"section_number":"43-23.1","catch_line":"Forfeiture of lien","url":"\/43-23.1\/","token":"43\/1\/43-23.1","metadata":false},{"id":55321,"structure_id":14160,"section_number":"43-23.2","catch_line":"Remedies cumulative","url":"\/43-23.2\/","token":"43\/1\/43-23.2","metadata":false},{"id":75637,"structure_id":14160,"section_number":"43-3","catch_line":"Lien for work done and materials furnished; waiver of right to file or enforce lien","url":"\/43-3\/","token":"43\/1\/43-3","metadata":false},{"id":75853,"structure_id":14160,"section_number":"43-4","catch_line":"Perfection of lien by general contractor; recordation and notice","url":"\/43-4\/","token":"43\/1\/43-4","metadata":false},{"id":73387,"structure_id":14160,"section_number":"43-4.01","catch_line":"Posting of building permit; identification of mechanics' lien agent in building permit; notice to mechanics' lien agent; effect of notice","url":"\/43-4.01\/","token":"43\/1\/43-4.01","metadata":false},{"id":66257,"structure_id":14160,"section_number":"43-4.1","catch_line":"Liens to be recorded in deed books and indexed in general index of deeds","url":"\/43-4.1\/","token":"43\/1\/43-4.1","metadata":false},{"id":83985,"structure_id":14160,"section_number":"43-5","catch_line":"Sufficiency of memorandum and affidavit required by \u00a7 43-4","url":"\/43-5\/","token":"43\/1\/43-5","metadata":false},{"id":61637,"structure_id":14160,"section_number":"43-6","catch_line":"Repealed","url":"\/43-6\/","token":"43\/1\/43-6","metadata":false},{"id":79054,"structure_id":14160,"section_number":"43-7","catch_line":"Perfection of lien by subcontractor; extent of lien; affirmative defense; provisions relating to time-share estates","url":"\/43-7\/","token":"43\/1\/43-7","metadata":false},{"id":81789,"structure_id":14160,"section_number":"43-8","catch_line":"Sufficiency of memorandum, affidavit and notice required by \u00a7 43-7","url":"\/43-8\/","token":"43\/1\/43-8","metadata":false},{"id":66394,"structure_id":14160,"section_number":"43-9","catch_line":"Perfection of lien by person performing labor or furnishing materials for a subcontractor; extent of lien","url":"\/43-9\/","token":"43\/1\/43-9","metadata":false}],"previous_section":{"id":79868,"structure_id":14160,"section_number":"43-12","catch_line":"Repealed","url":"\/43-12\/","token":"43\/1\/43-12","metadata":false},"next_section":{"id":69845,"structure_id":14160,"section_number":"43-13.1","catch_line":"Use of lien waiver form; forgery or signing without authority","url":"\/43-13.1\/","token":"43\/1\/43-13.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/43-13\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 6 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1968, chapter 568; in 1980, chapter 390; in 1982, chapter 391; in 1992, chapter 713; in 1998, chapter 754<\/a>; in 2020, chapter 873<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":221285,"object_type":"law","relational_id":64540,"identifier":"43-13","token":"43\/1\/43-13","url":"\/43-13\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/43-13\/","token":"43\/1\/43-13","dublin_core":{"Title":"Funds paid to general contractor or subcontractor must be used to pay persons performing labor or furnishing material","Type":"Text","Format":"text\/html","Identifier":"\u00a7 43-13","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Any contractor or subcontractor or any officer, director or employee of such contractor or subcontractor who shall, with intent<\/span> to defraud, retain or use the funds, or any part thereof, paid by the owner or his agent, the contractor, or the lender to such contractor or by the owner or his agent, the contractor, or the lender to a subcontractor under any contract<\/span> for the construction, removal, repair, or improvement of any building or structure permanently annexed to the freehold for any other purpose than to pay persons performing labor upon or furnishing material<\/span> for such construction, repair, removal, or improvement is guilty of larceny<\/span> in appropriating such funds for any other use while any amount for which the contractor or subcontractor may be liable or become liable under his contract<\/span> for such labor or materials<\/span> remains unpaid and may be prosecuted upon complaint of any person or persons who have not been fully paid any amount due them.\n\t\tThe use by any such contractor or subcontractor or any officer, director, or employee of such contractor or subcontractor of any moneys paid under the contract<\/span> before paying all amounts due or to become due for labor performed or material<\/span> furnished for such building or structure for any other purpose than paying such amounts due on the project shall be prima facie evidence<\/span> of intent<\/span> to defraud. Any breach or violation of this section may give rise to a civil cause of action<\/span> for a party<\/span> in contract<\/span> with the general contractor or subcontractor, as appropriate; however, this right does not affect a contractor’s or subcontractor’s right to withhold payment for failure to properly perform labor or furnish materials<\/span> on the project. Any contract<\/span> or subcontract provision that allows a contracting party<\/span> to withhold funds due under one contract<\/span> or subcontract for alleged claims or damages<\/span> due on another contract<\/span> or subcontract is void as against public policy.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFUNDS PAID TO GENERAL CONTRACTOR OR SUBCONTRACTOR MUST BE USED TO PAY PERSONS\nPERFORMING LABOR OR FURNISHING MATERIAL (\u00a7 43-13)\n\nAny contractor or subcontractor or any officer, director or employee of such\ncontractor or subcontractor who shall, with intent to defraud, retain or use the\nfunds, or any part thereof, paid by the owner or his agent, the contractor, or\nthe lender to such contractor or by the owner or his agent, the contractor, or\nthe lender to a subcontractor under any contract for the construction, removal,\nrepair, or improvement of any building or structure permanently annexed to the\nfreehold for any other purpose than to pay persons performing labor upon or\nfurnishing material for such construction, repair, removal, or improvement is\nguilty of larceny in appropriating such funds for any other use while any amount\nfor which the contractor or subcontractor may be liable or become liable under\nhis contract for such labor or materials remains unpaid and may be prosecuted\nupon complaint of any person or persons who have not been fully paid any amount\ndue them.\n\t\tThe use by any such contractor or subcontractor or any officer, director, or\nemployee of such contractor or subcontractor of any moneys paid under the\ncontract before paying all amounts due or to become due for labor performed or\nmaterial furnished for such building or structure for any other purpose than\npaying such amounts due on the project shall be prima facie evidence of intent\nto defraud. Any breach or violation of this section may give rise to a civil\ncause of action for a party in contract with the general contractor or\nsubcontractor, as appropriate; however, this right does not affect a\ncontractor’s or subcontractor’s right to withhold payment for\nfailure to properly perform labor or furnish materials on the project. Any\ncontract or subcontract provision that allows a contracting party to withhold\nfunds due under one contract or subcontract for alleged claims or damages due on\nanother contract or subcontract is void as against public policy.\n\nHISTORY: 1932, p. 483; Michie Code 1942, \u00a7 6429b; 1968, c. 568; 1980, c. 390;\n1982, c. 391; 1992, c. 713; 1998, c. 754; 2020, c. 873.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}