Limits on attachment, garnishment, and execution levy -- Subcontractor lien not affected by payments, debts, offsets, and counterclaims involving other parties.
Limits on attachment, garnishment, and execution levy -- Subcontractor lien not affected by payments, debts, offsets, and counterclaims involving other parties.
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(1) An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an owner owes to an original contractor is not valid as against a subcontractor's preconstruction or construction lien.
(2) An assignment, attachment, or garnishment of or encumbrance or execution levy on money that an original contractor owes to a subcontractor is not valid as against a lien of a laborer employed by the day or piece.
(3) The preconstruction or construction lien of a subcontractor may not be diminished, impaired, or otherwise affected by:
(a) a payment, whether in cash or in-kind, to the original contractor or another subcontractor;
(b) a debt owed by the original contractor to the owner;
(c) a debt owed by another subcontractor to the original contractor or to a third subcontractor; or
(d) an offset or counterclaim in favor of the owner against the original contractor, or in favor of the original contractor against another subcontractor, or in favor of another subcontractor against a third subcontractor.