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SPECTRUM PAINTING CONTRACTORS, INC. v. KREISLER BORG FLORMAN GENERAL CONSTRUCTION CO., INC.

64 A.D.3d 580 (2009)

883 N.Y.S.2d 548

SPECTRUM PAINTING CONTRACTORS, INC., Plaintiff, v. KREISLER BORG FLORMAN GENERAL CONSTRUCTION CO., INC., et al., Defendants, MIRIAM OSBORN MEMORIAL HOME ASSOCIATION, Appellant, and R&J CONSTRUCTION CORP. et al., Respondents.

Appellate Division of the Supreme Court of New York, Second Department.

Decided July 7, 2009.

Ordered that the order is affirmed, with costs.

In 2000 the defendant Miriam Osborn Memorial Home Association (hereinafter Osborn), which operates a development for retirees, borrowed the sum of approximately $57 million from the Dormitory Authority of the State of New York to finance a capital improvement project. Pursuant to article 3-A of the Lien Law, the proceeds of the building loan constituted a trust fund for the purpose of paying certain statutorily-defined...

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