NY State Fin L § 139 (2021)
2021 New York Laws STF - State Finance Article 9 - Contracts 139 - Retained Percentages.

§  139.  Retained  percentages.  1.  A clause shall be inserted in all   specifications or contracts hereafter made or awarded by the  state,  or   by  any  public  department  or official thereof for work to be executed   except as provided in section thirty-eight of the highway law  in  which   the execution and delivery by the contractor of a performance bond shall   be  required,  providing  that the state shall retain five per centum of   the amount of each progress  payment  in  accordance  with  section  one   hundred thirty-nine-f of the state finance law.2.  The  clause  specified  in  subdivision one of this section may be   inserted in the specifications of any uncompleted  public  contract,  of   the  kind referred to in such subdivision, heretofore made or awarded by   the state or by any public department, or  official  thereof,  with  the   written  consent  of  the  commissioner  of  general services and of the   official of the public department by whom such contract was awarded  and   of  the contractor, provided the surety or sureties upon the performance   and labor and material bonds given  by  the  contractor  upon  any  such   contract shall consent in writing thereto and the retained percentage of   moneys  earned  under  such  contract shall, after the insertion of such   clause, be payable in accordance with the provisions set forth  in  said   clause.3.  Under  any contract heretofore or hereafter made or awarded by the   state, or by any public department or official thereof,  the  contractor   may,  from time to time, withdraw the whole or any portion of the amount   retained from payments to the contractor pursuant to the  terms  of  the   contract,  upon depositing with the state comptroller or, if so directed   by the state comptroller, with a bank or trust company which has entered   into an agreement with the state comptroller  to  provide  the  services   which  the  state  comptroller  is  required  to perform pursuant to the   provisions of this subdivision (1) United States treasury bonds,  United   States   treasury   notes,   United   States  treasury  certificates  of   indebtedness or United States treasury bills, (2) bonds or notes of  the   state  of  New York, (3) bonds of any political subdivision in the state   of New York, (4) bonds of the New York state housing finance agency,  or   (5)  bonds of the New York state medical care facilities finance agency,   of a market value not exceeding par, at the time of  deposit,  equal  to   the amount so withdrawn. The state comptroller shall, from time to time,   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  be in the form of coupon   bonds, the coupons as they respectively become  due  shall  be  clipped,   presented  for payment, and the proceeds remitted to the contractor. The   contractor shall not be entitled to interest or coupons or income on any   of the deposited obligations, the proceeds of which shall  be  or  shall   have  been used, or applied by the state, or by any public department or   official thereof, pursuant to the  terms  of  the  contract.  The  state   comptroller  or  any  such  bank or trust company when authorized by the   state comptroller, may impose upon each contractor a service charge  for   receiving,  handling  and  disbursing  obligations,  funds  and  coupons   pursuant to the provisions of  this  subdivision  in  an  amount  to  be   determined  by the state comptroller. The provisions of this section, as   amended,  shall  supersede  the  provisions  of  any  act   inconsistent   herewith.