Senate Bill 2437

AN ACT TO AMEND SECTION 85-7-185, MISSISSIPPI CODE OF 1972, TO REQUIRE THAT A MATERIALMAN OR MECHANIC ON A JOB MUST BE FURNISHED WITH COPIES OF THE CONSTRUCTION CONTRACT AND APPLICABLE BONDS UPON REQUEST; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 85-7-185, Mississippi Code of 1972, is amended as follows:

85-7-185. When any contractor or subcontractor entering into a formal contract with any person, firm or corporation for the construction of any building or work or the doing of any repairs shall enter into a bond with the person, firm or corporation guaranteeing * * * faithful performance of the contract and containing * * * provisions and penalties as the parties thereto may insert therein, the bond shall also be subject to the additional obligations that the contractor or subcontractor shall promptly make payments to all persons furnishing labor or material or rental or lease equipment under the contract; and if the bond does not contain any * * * provisions for the payment of the claims of persons furnishing labor or material or rental or lease equipment under the contract, the bond shall nevertheless inure to the benefit of the person furnishing labor or material under the contract, the same as if the stipulation had been incorporated in the bond, and any * * * person who has furnished labor or materials or rental or lease equipment used therein for which payment has not been made shall have the right to intervene and be made a party to any action instituted on the bond, and to have his rights adjudicated in the action and judgment rendered thereon, subject, however, to the priority of the rights or claim, for damages or otherwise, of the obligee. The bond herein provided for may be made by any surety company authorized to do business in the State of Mississippi. Any person supplying labor or materials for the prosecution of the work, upon request to the bond obligee or bond principal, shall be furnished with a true and correct copy of both the applicable contract and of the bond or bonds.

SECTION 2. This act shall take effect and be in force from and after July 1, 2012.