Contractors are given the right, under section 106 of the General Municipal Law, to withdraw the whole or any portion of amounts withheld as retainage. To make withdrawals, contractors are required to deposit with the Comptroller certain authorized securities with a par and market value equal to or greater than the amount of retainage withdrawn. The City also extends this right to franchisees for security deposits. The Comptroller, as the City’s Chief Fiscal Officer, is the custodian of all deposited cash and securities and is responsible for the administration of all collateral deposits. In order to process all requests related to retainage and/or security deposits in a timely fashion, the following forms are required:
|Agency Request for New Bond Substitution Account/Account Update Form||Once the Agency and Vendor have come to terms on the retainage agreement the Agency will submit a request to either:
|New Transaction Form||After all terms have been agreed upon between the Agency and the Vendor, the Vendor or the Vendors broker will submit a New Transaction Form denoting the type of transaction (Deposit, Substitution or Release), containing all required information as indicated on the form.||Exhibit B|
|Contractor Lien/Assignment Certification||In order for deposited securities to be released, the Contracting Agency must request that the Depositor provide this notarized statement confirming whether or not they have any existing outstanding liens or third party assignments against the Depositor.||Exhibit C|
Retainage and Franchise processing is maintained in accordance with the General Municipal Law Article 5-A, Section 106, 106A, and 106B.