New Jersey Administrative Code
Title 16 - TRANSPORTATION
Chapter 44 - CONSTRUCTION SERVICES
Subchapter 10 - RETAINAGE AND PARTIAL PAYMENTS TO CONTRACTORS
Section 16:44-10.5 - Responsibilities of bank designated and appointed as escrow agent

Universal Citation: NJ Admin Code 16:44-10.5

Current through Register Vol. 56, No. 18, September 16, 2024

(a) Upon delivery of the negotiable bonds, the bank shall certify to the Department that the bonds meet the terms of acceptability defined herein and furnish a receipt to the contractor and send a copy to the Department. The receipt shall contain:

1. Description of negotiable bonds on deposit by official name;

2. The rating of each issue of bonds;

3. Maturity date;

4. Coupon rate;

5. Par value and current market value of each issue.

(b) The bank shall hold the negotiable bonds as escrow agent for and on behalf of the Department and the contractor in accordance with the terms of the escrow agreement and this subchapter.

(c) The bank shall provide a monthly report to the Department and a copy to the contractor which shall contain:

1. Description of negotiable bonds on deposit by official name;

2. The rating of each issue of bonds;

3. Maturity date;

4. Coupon rate;

5. Par value and current market value of each issue;

6. Total market value of all bonds deposited by the contractor.

(d) The bank shall promptly collect all interest due on the bonds and pay interest to the contractor.

(e) The bank shall release the negotiable bonds to the contractor only upon receipt of written authorization from the Commissioner.

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