Substitution of Securities in Lieu of Retainage. The CONTRACTOR may elect to receive 100 percent of payments due under the Project Manual from time to time, without retention from any portion of the payment by the OWNER, by depositing securities of equivalent value with the OWNER in accordance with the provisions of §22300 of the California Public Contract Code. Such securities, if deposited by the CONTRACTOR, shall be valued by the OWNER, whose decision on valuation of the securities shall be final. Securities eligible for investment under this provision shall be limited to those listed in §22300 of the California Public Contract Code and §16430 of the California Government Code.
Substitution of Securities in Lieu of Retainage. Pursuant to Section 22300 of the California Public Contract Code, the Contractor may substitute securities for any money held by the Agency to insure performance of the contract. At the request and expense of the contractor, securities equivalent to the amount withheld shall be deposited with the Agency or with the State or Federally-chartered bank as the escrow agent, who shall return such securities to the contractor upon satisfactory completion of the contract. Deposit of the securities with an escrow agent shall be subject to a written agreement in the form outlined in Section 22300 of the Public Contract Code. The Agency shall not certify that the contract has been completed until at least 45 days after the filing by the Agency of a Notice of Completion. Securities eligible for investment under said Section shall be those listed in Section 16430 of the California Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit, or any other security mutually agreed upon by the Contractor and the public agency.
