Mich. Comp. Laws » Michigan Compiled Laws / Chapter 570 / Act 259 of 1931
Michigan Compiled Laws

Mich. Comp. Laws § 570.153 (2026)

Building contract fund; evidence of fraudulent detention or use.

✓ current as of July 2026
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BUILDING CONTRACT FUND


Act 259 of 1931


570.153 Building contract fund; evidence of fraudulent detention or use.

Sec. 3.

    The appropriation by a contractor, or any subcontractor, of any moneys paid to him for building operations before the payment by him of all moneys due or so to become due laborers, subcontractors, materialmen or others entitled to payment, shall be evidence of intent to defraud.

History: 1931, Act 259, Eff. Sept. 18, 1931 ;-- CL 1948, 570.153

Compiler's Notes:

    For transfer of powers and duties of certain occupational functions, boards, and commissions from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

Notes of Decisions
Cited in 19 cases (4 in the last 5 years), 1977–2025 · leading case: BC Tile & Marble Co. v. Multi Bldg. Co., 794 N.W.2d 76 (Mich. Ct. App. 2010).
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BC Tile & Marble Co. v. Multi Bldg. Co., 794 N.W.2d 76 (Mich. Ct. App. 2010). · cites it 5× “[ 15 ] And MCL 570.153 provides: The appropriation by a contractor, or any subcontractor, of any moneys paid to him for building operations before the *585 payment by him of all moneys due or so to become due laborers, subcontractors, materialmen or others entitled to payment,…”
Livonia Bldg. Materials Co. v. Harrison Constr. Co., 742 N.W.2d 140 (Mich. Ct. App. 2007). · cites it 3× “” MCL 570.153. And this Court has further explained that “a reasonable inference of appropriation arises from the payment of construction funds to a contractor and the subsequent failure of the contractor to pay laborers, subcontractors, material-men, or others entitled to…”
People v. Brown, 610 N.W.2d 234 (Mich. Ct. App. 2000). · cites it 3× “Here, the evidence presented at the preliminary examination showed that although Fredrickson made timely payments to HPCS under the contract and although certain subcontractors were owed money, defendant took money from the HPCS account and deposited it in her personal account,…”
DiPonio Constr. Co. v. Rosati Masonry Co., 631 N.W.2d 59 (Mich. Ct. App. 2001). · cites it 2× “” MCL 570.153. Plaintiff concludes that a civil cause of action under the statute sounds in fraud and is therefore governed by the six-year limitation period found in § 5813.”
In Re Gerald JOHNSON, Bankrupt, CARLISLE CASHWAY, INC., Plaintiff-Appellant, v. Gerald JOHNSON, Defendant-Appellee, 691 F.2d 249 (6th Cir. 1982). “Mich.Comp.Laws Ann. § 570.153 provides: The appropriation by a contractor, or any subcontractor, of any moneys paid to him for building operations before the payment by him of all moneys due or so to become due laborers, subcontractors, materialmen or others entitled to payment,…”
People v. Miller, 259 N.W.2d 877 (Mich. Ct. App. 1977). · cites it 2× “The final section of the act, MCLA 570.153; MSA 26.333, provides that the appropriation of monies paid the contractor for building operations, "before the payment by him of all moneys due or to become due laborers, subcontractors, materialmen or others entitled to payment, shall…”
Shafer Redi-Mix, Inc. v. Craft, 414 B.R. 165 (W.D. Mich. 2009). · cites it 2× “Section 3 more pointedly provides that “[t]he appropriation by a contractor, or any subcontractor, of any moneys paid to him for building operations before the payment by him of all moneys due or so to become due laborers, subcontractors, materialmen or others entitled to…”
HA Smith Lumber & Hardware Co. v. Decina, 670 N.W.2d 729 (Mich. Ct. App. 2003). “[MCL 570.153.] B. ANALYSIS The trial court did not err in finding that Decina and Decina Co.”
People v. Whipple, 509 N.W.2d 837 (Mich. Ct. App. 1993). “[MCL 570.153; MSA 26.333.] Because the mbtfa is a remedial statute, we construe it liberally for the advancement of the remedy.”
Barbour v. Handlos Real Est. & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986). “MCL 570.153; MSA 26.333 provides that a contractor’s appropriation of any moneys paid him for building operations before he has paid all construction costs is evidence of intent to defraud.”
Sameer Patel v. Shamrock Floorcovering Serv., 565 F.3d 963 (6th Cir. 2009). “Nevertheless, Patel testified that he paid his own operating expenses — including payroll, utilities, taxes, and wages to himself for services rendered as president — before he sent any money to Shamrock.”
Sellars v. United States, 938 F. Supp. 432 (E.D. Mich. 1996). “Section 3 of the Michigan Act provides that the appropriation by a contractor “of any monies paid to him for building operation before the payment by him of all moneys due as to become due laborers, subcontractors, materialmen or others entitled to payment shall be evidence of…”
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