We are a Lender starting to offer construction financing in the CO area and have been told that it is our obligation to file a "Disburser's Notice" prior to advancing any funds to our GC on M&M Lien Contract. If this is the case, where I can locate the Disburser's Notice to be used? Any assistance regarding this matter would be very helpful.
There is no standared form disburser notice. You speak with construction counsel and they draft it. Once you have the form, you can revise as necessary for each project. The information required in that notice is in C.R.S. § 38-22-126(2). However, there is no penalty for failing to do this notice. It can create potential risks down the road if a notice to disburser is received.
You really should have experienced counsel to help with this as construction lending is extremely complicated and requires solid agreement and advice. If this business has multiple members or shareholders, your attorney will also advise you about a proper written shareholders' or opearting agreement. Reach out and get a consultatation. Most of us offer free consultations.