New York Laws
Article 5-A - Public Contracts
106 - Withdrawal of Retained Percentages.

§ 106. Withdrawal of retained percentages. Notwithstanding any
inconsistent provision of any general, special or local law, under any
contract heretofore or hereafter made or awarded by any political
subdivision, or any officer, board or agency thereof, or of any district
therein, the contractor may, from time to time, withdraw the whole or
any portion of the amount retained from payments to the contractor
pursuant to the terms of the contract, upon depositing with the fiscal
officer of the political subdivision or district therein or, if so
directed by the fiscal officer of the political subdivision or district
therein, with a bank or trust company which has entered into an
agreement with said fiscal officer to provide the services which said
fiscal officer is required to perform pursuant to the provisions of this
section (1) bonds or notes of the United States of America, or
obligations, the payment of which is guaranteed by the United States of
America, or (2) bonds or notes of the state of New York, or (3) bonds of
any political subdivision in the state of New York, of a market value
equal to the amount so withdrawn. The fiscal officer of the political
subdivision or of a district therein, from time to time, shall collect
all interest and income on the obligations so deposited, and shall pay
the same, when and as collected, to the contractor who deposited such
obligations. When the deposit is in the form of coupon bonds, the
coupons shall be clipped, presented for payment, and the proceeds
remitted to the contractor as they respectively come due. The contractor
shall not be entitled to interest or income on, or the coupons of, any
obligations so deposited by him, the proceeds of which shall have been
used or applied by the political subdivision or district therein
pursuant to the terms of the contract. The fiscal officer of the
political subdivision or district therein or any such bank or trust
company when authorized by said fiscal officer, may impose upon each
contractor a service charge for receiving, handling and disbursing
obligations, funds and coupons pursuant to the provisions of this
section in amount to be determined by said fiscal officer. Such a
service charge shall not exceed a reasonable amount which is generally
consistent with charges by a bank or trust company for such a service.