(a) Authority. A contract under this subchapter may
provide for partial payments.
(b) Trust agreement. At the request of a contractor
and with the approval of the department and the comptroller of public
accounts, any amount retained may be deposited under the terms of
a trust agreement with a state or national bank that has its main
office or a branch office in Texas as selected by the contractor,
provided that the contract price exceeds $300,000. The trust agreement
shall provide that:
(1) interest earned on deposited funds will be paid
to the contractor unless otherwise specified under the terms of the
agreement;
(2) all expenses incident to the deposit and all charges
made by the escrow agent for custody of the securities and forwarding
of interest shall be paid solely by the contractor;
(3) the department may, at any time and with or without
reason, demand in writing that the bank return or repay, within 30
days of the demand, the retainage or any investments in which it is
invested; and
(4) any other terms and conditions prescribed by the
department and the comptroller of public accounts as necessary to
protect the interests of the state.
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Source Note: The provisions of this §9.20 adopted to be effective September 22, 1995, 20 TexReg 7085; amended to be effective December 12, 1999, 24 TexReg 10901; amended to be effective December 6, 2007, 32 TexReg 8856; amended to be effective April 20, 2023, 48 TexReg 1968 |