sec.368Prime contractor’s right to reimbursement

### sec.368 Prime contractor’s right to reimbursement This section applies if— a prime contractor has paid a claim for wages payable to an employee of the employer, in satisfaction of the prime contractor’s obligations under this division; and either of the following happens— for an employer who is a corporation—winding-up proceedings are commenced; for an employer who is an individual—the employer’s assets are distributed in insolvency of the employer or in a composition with the employer’s creditors. The prime contractor is taken to have a claim for wages against the employer’s assets, which is a preferential claim, as if the prime contractor were an employee of the employer to whom wages were payable by the employer. This section applies only to the extent a State law may validly apply to the distribution of assets. (sec.368-ssec.1) This section applies if— a prime contractor has paid a claim for wages payable to an employee of the employer, in satisfaction of the prime contractor’s obligations under this division; and either of the following happens— for an employer who is a corporation—winding-up proceedings are commenced; for an employer who is an individual—the employer’s assets are distributed in insolvency of the employer or in a composition with the employer’s creditors. (sec.368-ssec.2) The prime contractor is taken to have a claim for wages against the employer’s assets, which is a preferential claim, as if the prime contractor were an employee of the employer to whom wages were payable by the employer. (sec.368-ssec.3) This section applies only to the extent a State law may validly apply to the distribution of assets. - (a) a prime contractor has paid a claim for wages payable to an employee of the employer, in satisfaction of the prime contractor’s obligations under this division; and - (b) either of the following happens— (i) for an employer who is a corporation—winding-up proceedings are commenced; (ii) for an employer who is an individual—the employer’s assets are distributed in insolvency of the employer or in a composition with the employer’s creditors. - (i) for an employer who is a corporation—winding-up proceedings are commenced; - (ii) for an employer who is an individual—the employer’s assets are distributed in insolvency of the employer or in a composition with the employer’s creditors. - (i) for an employer who is a corporation—winding-up proceedings are commenced; - (ii) for an employer who is an individual—the employer’s assets are distributed in insolvency of the employer or in a composition with the employer’s creditors.