{"data":{"id":"us-ky/krs-376.250","jurisdiction":"us-ky","citation":"KRS 376.250","heading":"Withholding by public authority of funds due contractor and their","body":"payment to lien claimant -- Protest by contractor -- Suit by lien claimant.\n(1) When an attested copy of the lien statement and proof of the delivery of an attested\ncopy as provided in KRS 376.240 is delivered to any public authority which has\ncontracted for the construction or improvement of any bridge, public highway, or\nother public property owned by the state, a subdivision or agency thereof, or by any\ncity, county, urban-county, or charter county government, the public authority shall\nendorse on the attested copy the date of its receipt, file the copy and deduct and\nwithhold the amount thereof, plus pursuant to KRS 64.012 to cover the fee of the\ncounty clerk for filing the statement and attesting a copy, from any amount then due\nthe contractor, and if a sufficient amount is not then due the contractor from the\nnext payments which become due.\n(2) Unless the contractor, within thirty (30) days from the date of the delivery of the\nattested copy, files with the public authority a written protest putting in issue the\ncorrectness of the amount due the lien claimant or the liability of the fund for\npayment thereof, the amount withheld shall be paid by the public authority to the\nlien claimant  and charged to the account of the contractor, which payment shall\noperate as a pro tanto release of the public authority from any claim of the\ncontractor under the contract for the amount so paid. The filing in the county clerk's\noffice of the statement of lien provided for in KRS 376.230(2) shall be constructive\nnotice to the contractor of the filing of the claim.\n(3) If the contractor files a written protest as provided in subsection (2) of this section,\nthe public authority with whom the protest is file d shall endorse thereon the date of\nits receipt. The public authority shall promptly send written notice of the protest to\nthe lien claimant by certified mail, return receipt requested and shall not pay over to\nthe lien claimant any of the money withheld f rom the contractor until authorized to\ndo so by the contractor or until directed to do so by an order or judgment of court.\n(4) If suit is not instituted by the lien claimant for the enforcement of the lien and\nsummons in the suit is not served on the publ ic authority or its chairman within\nthirty (30) days after the written notice of the protest is mailed to the claimant, then\nthe lien shall automatically be released and the funds withheld pursuant to the filing\nof the lien statement shall be released and promptly paid to the contractor. If suit is\nfiled and summons served within the time provided, the payment of the funds shall\nbe withheld until ordered to be released or paid over by an order or judgment of the\ncourt, and then paid as directed by the order or judgment.\n(5) All suits for the enforcement of these liens on public funds shall be instituted in the\nCircuit Court of the county in which is located the property on which the\nimprovement is made, except where the property is owned by a public universi ty.\nWhere the property is owned by a public university, the suit shall be instituted in the\nCircuit Court of the county in which is located the main campus of the public\nuniversity. This court shall have exclusive jurisdiction for the enforcement of liens\nasserted against the public funds due the contractors, subject to the same rights of\nappeal as in other civil cases.","path":["KRS Chapter 376"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35310","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:08Z","sha256":"0f69968589ad2b5c1765cf3cda6787cb7a6f48a4b5b16b060e9869a56deb7766","source_id":"us-ky","stale":false,"prev":"us-ky/krs-376.240","next":"us-ky/krs-376.260"},"notice":"GroundRules: Original legal text. Not legal advice."}