New Jersey Administrative Code
Title 16 - TRANSPORTATION
Chapter 44 - CONSTRUCTION SERVICES
Subchapter 10 - RETAINAGE AND PARTIAL PAYMENTS TO CONTRACTORS
Section 16:44-10.8 - Default

If the contractor defaults or is otherwise deemed owing the Department, the Commissioner shall promptly notify the bank in writing of such default or obligation. Following written notification, the bank shall not dispose of, release or compromise any bond or the proceeds of called or matured bonds, without written instructions from the Commissioner. If directed by the Commissioner, the bank shall sell any bonds in the escrow account and pay proceeds of such sale and/or the proceeds held in the account from called or matured bonds to the Department or to any payee designated by the Commissioner. A copy of the instructions to sell shall be sent to the contractor by certified mail.