436.306. Security tendered, when. - Missouri Statutes

Security tendered, when.

436.306. 1. The contractor may tender to the owner acceptablesubstitute security as set forth in section 436.312 with a written requestfor release of retainage in the amount of the substitute security. Thecontractor shall thereupon either:

(1) Be entitled to receive cash payment of retainage pursuant to thissection; or

(2) Not be subject to the withholding of retainage, in either case,to the extent of the security tendered, provided that the contractor is notin default of its agreement with the owner.

2. If the tender described in subsection 1 of this section is madeafter retainage has been withheld, the owner shall, within five workingdays after receipt of the tender, pay to the contractor the withheldretainage to the extent of the substitute security. If the tenderdescribed in subsection 1 of this section is made before retainage has beenwithheld, the owner shall, to the extent of the substitute security,refrain from withholding any retainage from the future payments.

(L. 2002 H.B. 1403)