N.J. Admin. Code § 16:44-10.6

Current through Register Vol. 56, No. 12, June 17, 2024

Section 16:44-10.6 - Deposit of additional bonds

(a) If additional bonds are required due to a decline in market value of those bonds on deposit with the bank or the value of the bonds on deposit less than the total retainage requirement, the Department shall deduct from current payments, amounts sufficient so that the total bond value on deposit plus retainage withheld will equal the total retainage requirement on all contracts.

(b) The contractor may place sufficient additional bonds on deposit with the bank.

(c) The contractor shall replace any of the bonds held in the escrow account whose value was used in the computation of the amount of the retainage released to the contractor at any time those bonds decline in rating below the rating required for bonds to be acceptable. The contractor is required to replace the unacceptable bonds with acceptable bonds. The Department shall withhold from future payments cash equal to the amount of retainage previously released to the contractor which was based upon the value of the now unacceptable bonds should the contractor fail to replace the unacceptable bonds with acceptable bonds.

N.J. Admin. Code § 16:44-10.6

Amended by R.1987 d.218, effective 5/18/1987.
See: 19 N.J.R. 181(b), 19 N.J.R. 883(a).
(c) added.
Recodified from 16:44-7.7 by R.1994 d.198, effective 4/18/1994.
See: 25 N.J.R. 4727(a), 26 N.J.R. 1690(b).
Amended by R.2004 d.342, effective 9/7/2004.
See: 36 N.J.R. 1659(a), 36 N.J.R. 4155(b).
In (a), substituted "If" for "In the event" preceding "additional bonds"; in (b), deleted "elect, at his discretion, to" following "The contractor may"; in (c), deleted "be required to" following "The contractor shall"; deleted "of Transportation" following "Department" throughout.
Recodified from N.J.A.C. 16:44-7.6 by R.2010 d.122, effective 6/21/2010.
See: 41 N.J.R. 3387(a), 42 N.J.R. 1239(a).