1648                                       LAWS OF MARYLAND                                   Ch. 449

                      CHAPTER 449

(House Bill 437)

AN ACT concerning

Procurement - Escrow Accounts for Retained Funds -

Department of Transportation
and Maryland Transportation Authority

FOR the purpose of establishing an escrow account procedure for

retained funds held by a certain State agency agencies under
certain procurement contracts; providing for an escrow
agreement form; providing for the management and disposition
of the funds in the escrow account; providing that the use
of such an escrow account is at the option of the
contractor; providing for a termination date; providing a
prospective effect; and generally relating to escrow
accounts for retained funds under procurement contracts.

BY adding to

Article - State Finance and Procurement

Section 13-1106

Annotated Code of Maryland

(1985 Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF

MARYLAND, That the Laws of Maryland read as follows;

Article - State Finance and Procurement
13-1106.

(A) (1) IN A ROAD DEPARTMENT OF TRANSPORTATION OR MARYLAND
TRANSPORTATION AUTHORITY CONSTRUCTION OR RECONSTRUCTION CONTRACT,
IN ORDER TO HAVE RETAINED FUNDS PAID TO AN ESCROW AGENT, A
CONTRACTOR, THE CONTRACTOR'S ESCROW AGENT, AND THE CONTRACTOR'S
SURETY MUST EXECUTE AN ESCROW AGREEMENT FORM TO BE SUBMITTED TO
THE DEPARTMENT OF TRANSPORTATION OR THE MARYLAND TRANSPORTATION
AUTHORITY FOR APPROVAL.

(2) (I) THE CONTRACT SHALL DEFINE THE ESCROW AGENT.

(II) THE ESCROW AGREEMENT FORM SHALL CONTAIN
THE COMPLETE ADDRESS OF THE ESCROW AGENT AND SURETY.

(3)  THE EXECUTED ESCROW AGREEMENT AUTHORIZES THE
DEPARTMENT OF TRANSPORTATION OR THE MARYLAND TRANSPORTATION
AUTHORITY TO MAKE PAYMENT OF RETAINED FUNDS TO THE ESCROW AGENT.

(B)  IF A CONTRACTOR ELECTS TO UTILIZE THE ESCROW ACCOUNT
PROCEDURE DESCRIBED IN THIS SECTION, THE CONTRACTOR SHALL
INDICATE THE ELECTION IN THE SPACE PROVIDED ON THE PROPOSED