CHAPTER 186
FORMERLY HOUSE BILL NO. 459
AS AMENDED BY'
HOUSE AMENDMENTS NO. 1 AND 2
AN ACT TO AMEND CHAPTER 69, TITLE 29 OF THE DELAWARE CODE RELATING TO THE PROCUREMENT OF MATERIALS AND AWARD OF CONTRACTS FOR PUBLIC WORKS BY STATE AGENCIES.
Be it enacted by the General Assembly of the State of Delaware:
Section 1. Amend Chapter 69, Title 29 of the Delaware Code, by adding the following new Section 6920, to read:
§ 6920. Substitution of securities for retainages on State Contracts
(1) Under any contract made or awarded by an agency, the contractor may, from time to time, withdraw the whole or any portion of the total amount then being retained for payments to the contractor pursuant to the terms of the contract, upon depositing with the agency:
(a) United States Treasury Bonds, United States Treasury Notes, United States Treasury Certificates of indebtedness or United States Treasury Bills, or
(b) Bonds or Notes of the State of Delaware, or
(c) Bonds of any political subdivision in the State of Delaware, or
(d) Certificates of deposit from State or National Banks located in the State of Delaware; provided, however, that no amount shall be so withdrawn by the contractor at any particular time which shall be in excess of the aggregate market value of the above-described securities so deposited at the time of and in relation to such particular withdraw or of the aggregate face value of such securities at such time, whichever shall be lower.
(2) The agency shall, on a regular basis, collect all interest or income on the obligations so deposited and shall pay the same, when and as collected, to the contractor who deposited the obligations. If the deposit is in the form of coupon bonds, the agency shall deliver each coupon as it matures to the contractor.
(3) At any time while any agency holds any securities as above—described on deposit from a contractor, the contractor shall, upon his request, receive back from the agency all or part of the securities, and any income of any nature then held by the agency from the securities he requests, or accrued thereon, provided that the contractor redeposits with the agency, in substitution for such securities as he shall request, an amount of cash equivalent to the amount of retainage for which the said securities were originally deposited.
Section 2. This Act shall become effective upon enactment and approval by the Governor.
Approved July 1, 1971.