§ 106 — Withdrawal of retained percentages

New York § 106

• Jurisdiction: New York
• Law GMU: General Municipal
• Art. 5-A: Public Contracts

Text

§ 106. Withdrawal of retained percentages. Notwithstanding any\ninconsistent provision of any general, special or local law, under any\ncontract heretofore or hereafter made or awarded by any political\nsubdivision, or any officer, board or agency thereof, or of any district\ntherein, the contractor may, from time to time, withdraw the whole or\nany portion of the amount retained from payments to the contractor\npursuant to the terms of the contract, upon depositing with the fiscal\nofficer of the political subdivision or district therein or, if so\ndirected by the fiscal officer of the political subdivision or district\ntherein, with a bank or trust company which has entered into an\nagreement with said fiscal officer to provide the services which said\nfiscal officer is required to perform pursuant to the provisions of this\nsection (1) bonds or notes of the United States of America, or\nobligations, the payment of which is guaranteed by the United States of\nAmerica, or (2) bonds or notes of the state of New York, or (3) bonds of\nany political subdivision in the state of New York, of a market value\nequal to the amount so withdrawn. The fiscal officer of the political\nsubdivision or of a district therein, from time to time, shall collect\nall interest and income on the obligations so deposited, and shall pay\nthe same, when and as collected, to the contractor who deposited such\nobligations. When the deposit is in the form of coupon bonds, the\ncoupons shall be clipped, presented for payment, and the proceeds\nremitted to the contractor as they respectively come due. The contractor\nshall not be entitled to interest or income on, or the coupons of, any\nobligations so deposited by him, the proceeds of which shall have been\nused or applied by the political subdivision or district therein\npursuant to the terms of the contract. The fiscal officer of the\npolitical subdivision or district therein or any such bank or trust\ncompany when authorized by said fiscal officer, may impose upon each\ncontractor a service charge for receiving, handling and disbursing\nobligations, funds and coupons pursuant to the provisions of this\nsection in amount to be determined by said fiscal officer. Such a\nservice charge shall not exceed a reasonable amount which is generally\nconsistent with charges by a bank or trust company for such a service.\n