New Jersey Administrative Code
Title 16 - TRANSPORTATION
Chapter 44 - CONSTRUCTION SERVICES
Subchapter 10 - RETAINAGE AND PARTIAL PAYMENTS TO CONTRACTORS
Section 16:44-10.4 - Pledge of approved bonds by contractor in lieu of retained percentages
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any money heretofore or hereafter withheld from contract payments as provided for in this subchapter shall be paid by the State to any contractor entitled thereto who shall deposit certain negotiable bonds with a bank in the State of New Jersey, which is an approved depository of the State of New Jersey, having a trust department, and which is willing to complete the escrow agreement between the Department, the contractor and the bank.
(b) The bonds deposited by the contractor must be issued by the State of New Jersey or any of its political subdivisions, having a rating of at least "Baa" by Moody's Investor Service and/or "BBB" by Standard and Poors Corporation, and must have a value at least equal to the amount of money to be released to the contractor.