§ 573.16 — Optional and mandatory actions — bond to release

Iowa § 573.16

• Jurisdiction: Iowa
• Title XIV: PROPERTY
• Ch. 573: LABOR AND MATERIAL ON PUBLIC IMPROVEMENTS

Text

1. The public corporation, the principal contractor, any claimant for labor or material who
has filed a claim, or the surety on any bond given for the performance of the contract, may,
at any time after the expiration of thirty days, and not later than sixty days, following the
completion and final acceptance of said improvement, bring action in equity in the county
where the improvement is located to adjudicate all rights to said fund, or to enforce liability
on said bond.
2. Upon written demand of the contractor served, in the manner prescribed for original
notices, on the person filing a claim, requiring the claimant to commence action in court to
enforce the claim, an action shall be commenced within thirty days, otherwise the retained
and unpaid funds due the contractor shall be released. Unpaid funds shall be paid to the
contractor within twenty days of the receipt by the public corporation of the release as
determined pursuant to this section. Failure to make payment by that date shall cause
interest to accrue on the unpaid amount. Interest shall accrue during the period commencing

the twenty-first day after the date of release and ending on the date of the payment. The rate
of interest shall be determined pursuant to section 573.14. After an action is commenced,
upon the general contractor filing with the public corporation or person withholding the
funds, a surety bond in double the amount of the claim in controversy, conditioned to pay
any final judgment rendered for the claims so filed, the public corporation or person shall
pay to the contractor the amount of funds withheld.

Legislative History

[C97, §3103; S13, §1989-a58; C24, 27, 31, 35, 39, §10313; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.16]