1315.02 PROHIBITIONS.

   No original contractor shall do either of the following:

   (a)    Knowingly supply a false affidavit to a lending institution, owner, part owner, or lessee for the purpose of obtaining payment under any home construction contract or under a home purchase contract.

   (b)    Obtain payment from an owner, part owner, lessee or lending institution under a home purchase contract or for work done pursuant to a home construction contract when the original contractor is aware that such payment is based on the assumption of a material fact which the payer considers to be true and which the original contractor knows or should know is false, or when the original contractor has made, either directly or indirectly to the payer a statement of material fact which is false, under circumstances in which the original contractor knew or should have known that such statement was false, or when the original contractor makes the statement without knowing whether it is true or false. For purposes of this subsection, a "material fact" is one on which a reasonable man would form a decision as to whether to make or withhold payment.

      (Ord. 78-8. Passed 2-20-78.)