§103D-703.5  Settlement of default bycontractor.  Upon default of a contractor, the purchasing agency may acceptmoneys in satisfaction of the contractor's obligation on a contract whether themoneys are realized from the performance surety's obligation on its bond, aninsurer's obligation on the contractor's policy, or any other source of moneyspaid to satisfy a contractor's default.  Such moneys shall be deemed to betrust moneys and shall be deposited into a trust account with and under thecontrol of the purchasing agency.  These moneys and the interest earned thereonshall be used for the completion of such contract.  Upon completion of thecontract, any excess moneys shall be deposited in the general fund unlessotherwise restricted. [L 1997, c 167, §1; am L 1999, c 149, §17]