58-55-207. Payment -- Account designated.
(1) A contractor that pays a material supplier, a contractor, or a subcontractor with which the contractor maintains a running account, holds multiple contracts, or owes an outstanding debt shall: clearly designate the contract for which the payment is made; and identify the specific items of account to which the payment applies.
(2) A subcontractor or material supplier that receives a payment for materials or labor shall require the person paying to: clearly designate the contract for which the payment is made; and identify the specific items of account to which the payment applies.
(3) In an action to enforce a lien for materials provided or labor performed by a subcontractor or material supplier, the owner may assert a defense to the lien if: the owner paid the contractor for the materials and the contractor designated the payment in accordance with Subsection; (1) the contractor transferred the payment to the subcontractor or material supplier; and the subcontractor or material supplier failed to require a designation of the account and the specific items of account when receiving the payment.