2006 New York Code - Withdrawal Of Retained Percentages.

 
    §  106.  Withdrawal  of  retained  percentages.    Notwithstanding any
  inconsistent provision of any general, special or local law,  under  any
  contract  heretofore  or  hereafter  made  or  awarded  by any political
  subdivision, or any officer, board or agency thereof, or of any district
  therein, 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  fiscal
  officer  of  the  political  subdivision  or  district therein or, if so
  directed by the fiscal officer of the political subdivision or  district
  therein,  with  a  bank  or  trust  company  which  has  entered into an
  agreement with said fiscal officer to provide the  services  which  said
  fiscal officer is required to perform pursuant to the provisions of this
  section  (1)  bonds  or  notes  of  the  United  States  of  America, or
  obligations, the payment of which is guaranteed by the United States  of
  America, or (2) bonds or notes of the state of New York, or (3) bonds of
  any  political  subdivision  in the state of New York, of a market value
  equal to the amount so withdrawn. The fiscal officer  of  the  political
  subdivision  or  of a district therein, from time to time, shall collect
  all interest and income on the obligations so deposited, and  shall  pay
  the  same,  when  and as collected, to the contractor who deposited such
  obligations.   When the deposit is in the  form  of  coupon  bonds,  the
  coupons  shall  be  clipped,  presented  for  payment,  and the proceeds
  remitted to the contractor as they respectively come due. The contractor
  shall not be entitled to interest or income on, or the coupons  of,  any
  obligations  so  deposited by him, the proceeds of which shall have been
  used or  applied  by  the  political  subdivision  or  district  therein
  pursuant  to  the  terms  of  the  contract.   The fiscal officer of the
  political subdivision or district therein or  any  such  bank  or  trust
  company  when  authorized  by  said fiscal officer, may impose upon each
  contractor a service  charge  for  receiving,  handling  and  disbursing
  obligations,  funds  and  coupons  pursuant  to  the  provisions of this
  section in amount to be  determined  by  said  fiscal  officer.  Such  a
  service  charge  shall not exceed a reasonable amount which is generally
  consistent with charges by a bank or trust company for such a service.