§ 573.16

573.16 Optional and mandatory actions — bond to release. 1. The public corporation, the principal contractor, any claimant for labor or material who has filed a claim, or the surety on any bond given for the performance of the contract, may,at any time after the expiration of thirty days, and not later than sixty days, following thecompletion and final acceptance of said improvement, bring action in equity in the countywhere the improvement is located to adjudicate all rights to said fund, or to enforce liabilityon said bond. 2. Upon written demand of the contractor served, in the manner prescribed for original notices, on the person filing a claim, requiring the claimant to commence action in court toenforce the claim, an action shall be commenced within thirty days, otherwise the retainedand unpaid funds due the contractor shall be released. Unpaid funds shall be paid to thecontractor within twenty days of the receipt by the public corporation of the release asdetermined pursuant to this section. Failure to make payment by that date shall causeinterest to accrue on the unpaid amount.

hin twenty days of the receipt by the public corporation of the release asdetermined pursuant to this section. Failure to make payment by that date shall causeinterest to accrue on the unpaid amount. Interest shall accrue during the period commencingthe twenty-first day after the date of release and ending on the date of the payment. The rateof interest shall be determined pursuant to section 573.14. After an action is commenced,upon the general contractor filing with the public corporation or person withholding thefunds, a surety bond in double the amount of the claim in controversy, conditioned to payany final judgment rendered for the claims so filed, the public corporation or person shallpay to the contractor the amount of funds withheld. [C97, §3103; S13, §1989-a58; C24, 27, 31, 35, 39, §10313; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §573.16] 91 Acts, ch 148, §3Referred to in §384.58, 573.14, 573.15A, 573.18Action against surety, §616.15Manner of service, R.C.P. 1.302 – 1.315 Sat Dec 23 11:08:08 2023 Iowa Code 2024, Section 573.16 (19, 0)