Hawaii Revised Statutes 103D-703.5 – Settlement of default by contractor
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Terms Used In Hawaii Revised Statutes 103D-703.5
- Contract: means all types of agreements, regardless of what they may be called, for the procurement or disposal of goods or services, or for construction. See Hawaii Revised Statutes 103D-104
- Contract: A legal written agreement that becomes binding when signed.
- Contractor: means any person having a contract with a governmental body. See Hawaii Revised Statutes 103D-104
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Purchasing agency: means any governmental body which is authorized by this chapter or its implementing rules and procedures, or by way of delegation, to enter into contracts for the procurement of goods, services, or construction. See Hawaii Revised Statutes 103D-104
- Trust account: A general term that covers all types of accounts in a trust department, such as estates, guardianships, and agencies. Source: OCC
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.