§103D-703.5 Settlement of default by contractor. Upon default of a contractor, the purchasing agency may accept moneys in satisfaction of the contractor's obligation on a contract whether the moneys are realized from the performance surety's obligation on its bond, an insurer's obligation on the contractor's policy, or any other source of moneys paid to satisfy a contractor's default. Such moneys shall be deemed to be trust moneys and shall be deposited into a trust account with and under the control of the purchasing agency. These moneys and the interest earned thereon shall be used for the completion of such contract. Upon completion of the contract, any excess moneys shall be deposited in the general fund unless otherwise restricted. [L 1997, c 167, §1; am L 1999, c 149, §17]
Section: Previous 103d-412 103d-501 103d-601 103d-701 103d-701.5 103d-702 103d-703 103d-703.5 103d-704 103d-705 103d-706 103d-707 103d-708 103d-709 103d-710 NextLast modified: October 27, 2016