Common use of ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION Clause in Contracts

ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION. Pursuant to Public Contract Code §22300, eligible and equivalent securities may be substituted for any monies withheld by the District to ensure the Contractor’s performance under the Contract Documents at the request and expense of the Contractor and in conformity with the provisions of Public Contract Code §22300. The foregoing and the provisions of Public Contract Code §22300 notwithstanding, failure of the Contractor to request the substitution of eligible and equivalent securities for monies to be withheld by the District prior to submission of the first Payment Application shall be deemed the Contractor’s waiver of rights under Public Contract Code §22300. If timely request is made by the Contractor, the form of Escrow Agreement shall be as set forth in the Contract Documents. The foregoing is subject to the provisions of Article 8 of the General Conditions relating to Public Contract Code §22300 requirements.