§507-49  Exceptions.  (a)  Anything
contained in this part to the contrary notwithstanding, in connection with any
repairs or improvements made or performed on property which before the repairs
or improvements was used primarily for dwelling purposes, no lien shall exist
either for the furnishing of materials to a general contractor as defined in
this chapter or the general contractor's subcontractor either of whom was
required to be licensed but was not licensed pursuant to chapter 444 or if
unreasonable advancement of credit was given by the furnisher of materials to
the general contractor or subcontractor whether such person is licensed,
unlicensed or exempted under chapter 444.



The issue of reasonable advancement of credit
shall be decided by the circuit judge at the return day hearing provided for in
section 507-43(a); provided that if a party affected by the lien does not
appear at the return day hearing, the party may raise the issue of unreasonable
advancement of credit at any time prior to the entry of a final or
interlocutory decree of foreclosure in the proceeding brought to enforce the
lien under section 507-47.  For the purposes of this section, if the furnisher
of materials has secured a credit application form from the general contractor
or the subcontractor to whom the materials were furnished or has reasonably
inquired into the credit status of the general contractor or subcontractor, the
advancement of credit by the furnisher of materials shall be prima facie
reasonable.



The credit application referred to herein shall
be current and shall include at least the following information:



A.  For all persons:



1.  Name



2.  Address



3.  Type of business (Example - plumbing
subcontractor)



4.  Date business started



5.  Contractor's license number



6.  Bonding companies generally used



7.  Banks used



8.  List of current creditors



9.  Balance sheet



10.  Total of all outstanding construction
contracts $.....



11.  Incompleted portion of all contracts
$.....



B.  In addition, for corporate accounts:



1.  Names of officers



2.  Authorized capital



3.  Paid in capital



C.  In addition, for noncorporate accounts:



1.  Names of partners, co-venturers, etc.



(b)  Anything contained in this chapter to the
contrary notwithstanding, no general contractor as defined in this chapter or
the general contractor's subcontractor or the subcontractor's subcontractor who
is required to be licensed pursuant to chapter 444 shall have lien rights
unless the contractor was licensed pursuant to chapter 444 when the improvements
to the real property were made or performed, and no subcontractor or
subcontractor's subcontractor so licensed shall have lien rights if the work
was subcontracted to them by a general contractor as defined in this chapter or
the general contractor's subcontractor who was required to be licensed but was
not licensed pursuant to chapter 444. [L 1974, c 113, §2; am L 1975, c 181, §8;
am L 1976, c 209, §2; am L 2006, c 38, §21]