Texas Administrative Code
Title 43 - TRANSPORTATION
Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION
Chapter 9 - CONTRACT AND GRANT MANAGEMENT
Subchapter B - CONTRACTS FOR HIGHWAY PROJECTS
Section 9.20 - Partial Payments

Universal Citation: 43 TX Admin Code § 9.20

Current through Reg. 50, No. 13; March 28, 2025

(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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