Section 1603 - Contractor's duties on receipt of notice Upon service of the notice provided by section 602, the contractor shall within thirty (30) days from the contractor's receipt of notice:
(1) settle or discharge the claim of the subcontractor and furnish to the owner a written copy of a waiver, release or satisfaction thereof, signed by the claimant; or(2) agree in writing to undertake to defend against said claim, and if the owner has not retained sufficient funds to protect him against loss, furnish the owner additional approved security to protect the owner from loss in the event the defense should be abandoned by the contractor or should not prevail; or(3) furnish to the owner approved security in an amount sufficient to protect the owner from loss on account of said claim.1963, Aug. 24, P.L. 1175, No. 497, art. VI, § 603.