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TITLE 43TRANSPORTATION
PART 1TEXAS DEPARTMENT OF TRANSPORTATION
CHAPTER 9CONTRACT AND GRANT MANAGEMENT
SUBCHAPTER BHIGHWAY IMPROVEMENT CONTRACTS
RULE §9.20Partial Payments

Highway improvement contracts may provide for partial payments.

  (1) Construction and preventive maintenance contracts. Construction contracts and preventive maintenance contracts may provide for partial payments.

  (2) 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:

    (A) interest earned on deposited funds will be paid to the contractor unless otherwise specified under the terms of the agreement;

    (B) 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;

    (C) 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

    (D) any other terms and conditions prescribed by the department and the comptroller of public accounts as necessary to protect the interests of the state.


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

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