As Amended
SEC. 31-5-15. Withdrawal by contractor of amounts retained on public contracts by
furnishing different security.
Under any public contract heretofore or hereafter made or awarded by the State of Mississippi, or any agency or
department of the State of Mississippi, or by any political subdivision thereof, the contractor may, with the written
consent of his or its surety, from time to time, withdraw the whole or any portion of the amount retained from
payments due the contractor pursuant to the terms of the contract by depositing with the State Treasurer of the
State of Mississippi, or the treasurer or secretary of the political subdivision of the State of Mississippi holding funds
belonging to the contractor, the following security, or any combination thereof in an amount equal to or in excess
of the amount so withdrawn, said securities to be accepted at the time of deposit at market value but not in excess
of par value, to wit:
(1) U. S. Treasury Bonds, U. S. Treasury Notes, U. S. Treasury Certificates of Indebtedness, or U. S. Treasury
Bills, or
(2) Bonds or notes of the State of Mississippi, or
(3) Bonds of any political subdivision of the State of Mississippi, or
(4) Certificates of deposit issued by commercial banks located in the State of Mississippi, provided that such
certificate is negotiable or is accompanied by a power of attorney executed by the owner of the certificate in favor
of the Treasurer of the State of Mississippi or of the treasurer or the secretary of the political subdivision involved,
or
(5) Certificates of deposit issued by savings and loan associations located in the State of Mississippi, the accounts of
which are insured by the Federal Savings and Loan Insurance Corporation, or whose accounts are insured by a
company approved by the State Board of Savings and Loan Associations, provided that such certificate is made
payable with accrued interest on demand and is accompanied by a power of attorney executed by the owner of the
certificate in favor of the Treasurer of the State of Mississippi or the treasurer or secretary of the political
subdivision involved, and provided that any such certificate from any of the savings and loan associations referred
to in this subparagraph shall not be for an amount in excess of the maximum dollar amount of coverage of the
Federal Savings and Loan Insurance Corporation.
The agency or department of the state shall notify the State Treasurer of the amount of deposit required and shall
also notify the State Treasurer when to release the deposit. The political subdivision of the state shall notify its
treasurer or secretary of the amount of deposit required and shall also notify him when to release the deposit.
The State Treasurer, or the secretary or treasurer of the political subdivision holding said security, shall, from time
to time, collect all interest or income on the security so deposited and shall, by and with the written consent of
contractor's surety, pay the same when and as collected to the contractor or contractors who deposited said
obligations. If the deposit be in the form of coupon bonds, the coupons as they respectively become due shall be
delivered to the contractor.
If in the event of an overpayment to a contractor the contracting authority is unable to obtain reimbursement for
such overpayments from the contractor, the chief administrative officer of the contracting authority shall notify the
contractor, its surety and the State Treasurer or other holder of the security, of the nature of the overpayment
and of the failure to obtain reimbursement. Upon such notification, the security holder shall retain the income on
the deposited security until an amount equal to the overpayment is accumulated and paid to the contracting
authority.
In the event the contractor shall default in the performance of the contract or any portion thereof, the securities
deposited by him in lieu of retainage and all interest and coupons and income accruing on said securities after said
default may be sold by the state or any agency or department thereof, or any political subdivision, and the
proceeds of said sale used as if such proceeds represented the retainage provided for under the contract.
SOURCES: Codes, 1942, Sec. 9022.5; Laws, 1971, ch. 516, Sec. 1, eff from and after July 1, 1971. Laws, 1992, ch. 364, Sec. 1, eff from and after July 1, 1992.