§ 573.14

573.14 Retention of unpaid funds. 1. The fund provided for in section 573.13 shall be retained by the public corporation for a period of thirty days after the completion and final acceptance of the improvement. If atthe end of the thirty-day period claims are on file, the public corporation shall continue toretain from the unpaid funds a sum equal to double the total amount of all claims on file. Theremaining balance of the unpaid fund, or if no claims are on file, the entire unpaid fund, shallbe released and paid to the contractor. 2. The public corporation shall order payment of any amount due the contractor to be made in accordance with the terms of the contract. Except as provided in section 573.12 forprogress payments, failure to make payment pursuant to this section, of any amount due thecontractor, within forty days, unless a greater time period not to exceed fifty days is specifiedin the contract documents, after the work under the contract has been completed and if thework has been accepted and all required materials, certifications, and other documentationsrequired to be submitted by the contractor and specified by the contract have been furnishedthe awarding public

k has been accepted and all required materials, certifications, and other documentationsrequired to be submitted by the contractor and specified by the contract have been furnishedthe awarding public corporation by the contractor, shall cause interest to accrue on theamount unpaid to the benefit of the unpaid party. Interest shall accrue during the periodcommencing the thirty-first day following the completion of work and satisfaction of theother requirements of this subsection and ending on the date of payment. The rate ofinterest shall be determined by the period of time during which interest accrues, and shallbe the same as the rate of interest that is in effect under section 12C.6, as of the day interestbegins to accrue, for a deposit of public funds for a comparable period of time. However,for institutions governed pursuant to chapter 262, the rate of interest shall be determined bythe period of time during which interest accrues, and shall be calculated as the prime rateplus one percent per year as of the day interest begins to accrue. This subsection does notabridge any of the rights set forth in section 573.16.

est accrues, and shall be calculated as the prime rateplus one percent per year as of the day interest begins to accrue. This subsection does notabridge any of the rights set forth in section 573.16. Except as provided in sections 573.12and 573.16, interest shall not accrue on funds retained by the public corporation to satisfythe provisions of this section regarding claims on file. This chapter does not apply if thepublic corporation has entered into a contract with the federal government or accepted afederal grant which is governed by federal law or rules that are contrary to the provisions ofthis chapter. For purposes of this subsection, 'prime rate' means the prime rate charged bybanks on short-term business loans, as determined by the board of governors of the federalreserve system and published in the federal reserve bulletin. [C97, §3104; S13, §1989-a59; C24, 27, 31, 35, 39, §10312; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.14; 81 Acts, ch 127, §4] 90 Acts, ch 1229, §4; 91 Acts, ch 148, §2; 2005 Acts, ch 179, §159; 2020 Acts, ch 1062, §62; 2021 Acts, ch 80, §347 Referred to in §262.34, 384.58, 573.12, 573.15A, 573.16, 573.18 Sat Dec 23 11:08:07 2023 Iowa Code

9, §4; 91 Acts, ch 148, §2; 2005 Acts, ch 179, §159; 2020 Acts, ch 1062, §62; 2021 Acts, ch 80, §347 Referred to in §262.34, 384.58, 573.12, 573.15A, 573.16, 573.18 Sat Dec 23 11:08:07 2023 Iowa Code 2024, Section 573.14 (21, 0)