Chap. 275.—An ACT to require funds paid by the owner to a general contractor
or by the owner or general contractor, to a subcontractor, under contracts fot
the construction, removal, repair or improvement of buildings or structures
permanently annexed to the freehold, to be used for the purpose of paying
persons performing labor upon or furnishing material for such construction
repair, removal or improvement, and prescribing penalties. [H B 399]

Approved March 24, 1932

Be it enacted by the general assembly of Virginia, as follows:

1. Any contractor or subcontractor who, with intent to defraud,
shall retain or use the funds, or any part thereof, paid by the owner
to such contractor or by the owner or contractor to a subcontractor
under any contract for. the construction, removal, repair or improve-
ment 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 improve-
ment, shall be guilty of a misdemeanor in appropriating such funds to
his own use while any amount for which he 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 so
defrauded, and upon conviction, shall be punished by a fine of not less
than one hundred nor more than two hundred and fifty dollars, or
confined in jail not less than thirty days nor more than six months, or
by both such fine and imprisonment in the discretion of the court.

2. The use by any such contractor or subcontractor of any monies
paid to him under the contract, before paying all amounts due or to
become due for labor performed or material furnished for such build-
ing or structure, for any other purpose than paving such amounts,
shall be prima facie evidence of intent to defraud.

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