N.Y. General Municipal Law § 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equal to the amount so withdrawn.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.