§103D-703.5  Settlement of default by
contractor.  Upon default of a contractor, the purchasing agency may accept
moneys in satisfaction of the contractor's obligation on a contract whether the
moneys are realized from the performance surety's obligation on its bond, an
insurer's obligation on the contractor's policy, or any other source of moneys
paid to satisfy a contractor's default.  Such moneys shall be deemed to be
trust moneys and shall be deposited into a trust account with and under the
control of the purchasing agency.  These moneys and the interest earned thereon
shall be used for the completion of such contract.  Upon completion of the
contract, any excess moneys shall be deposited in the general fund unless
otherwise restricted. [L 1997, c 167, §1; am L 1999, c 149, §17]