KRS 376.060: Sale or mortgage of property subject to lien -- Proceeds to be applied to

payment of lien.

If the owner of any legal or equitable interest in land or improvements thereon contracts

for labor or material used in the erection, repair or improvement of a ny structure thereon

under such circumstances that a lien for the payment therefor may attach to the property,

and sells or mortgages the property before the expiration of the time provided for the

filing and recording of a mechanic's or materialman's lien , he shall, on receiving the

consideration for the sale or the proceeds of the loan, pay in full any sum owing for the

labor and materials, unless released in writing by the person furnishing the labor or

materials. If the sum received is insufficient to make such payment in full, the owner shall

make pro rata payments on all claims for such labor and materials.