§ 137. Bond to secure payment of certain claims arising from a public\nimprovement; enforcement. 1. In addition to other bond or bonds, if any,\nrequired by law for the completion of a work specified in a contract for\nthe prosecution of a public improvement for the state of New York a\nmunicipal corporation, a public benefit corporation or a commission\nappointed pursuant to law, or in the absence of any such requirement,\nthe comptroller may or the other appropriate official, respectively,\nshall nevertheless require prior to the approval of any such contract a\nbond guaranteeing prompt payment of moneys due to all persons furnishing\nlabor or materials to the contractor or any subcontractors in the\nprosecution of the work provided for in such contract. Whenever a\nmunicipal corporation issues a permit subject to compliance with section\ntwo hundred twenty of the labor law, such permittee or its contractor or\nsubcontractors furnishing workers shall post a payment bond subject to\nthis section. Provided, however, that all performance bonds and payment\nbonds may, at the discretion of the head of the state agency, public\nbenefit corporation or commission, or his or her designee, be dispensed\nwith for the completion of a work specified in a contract for the\nprosecution of a public improvement for the state of New York for which\nbids are solicited where the aggregate amount of the contract is under\none hundred thousand dollars and provided further, that in a case where\nthe contract is not subject to the multiple contract award requirements\nof section one hundred thirty-five of this article, such requirements\nmay be dispensed with where the head of the state agency, public benefit\ncorporation or commission finds it to be in the public interest and\nwhere the aggregate amount of the contract awarded or to be awarded is\nless than two hundred thousand dollars. Provided further, that in a case\nwhere a performance or payment bond is dispensed with, twenty per centum\nmay be retained from each progress payment or estimate until the entire\ncontract work has been completed and accepted, at which time the head of\nthe state agency, public benefit corporation or commission shall,\npending the payment of the final estimate, pay not to exceed\nseventy-five per centum of the amount of the retained percentage.\n 2. A copy of such payment bond shall be kept in the office of the head\nof the department or bureau having charge of the public improvement in\nconnection with which the bond was given and a copy shall also be kept\nin the office of the comptroller or other appropriate official; such\ncopies shall be open to public inspection.\n 3. Every person who has furnished labor or material, to the contractor\nor to a subcontractor of the contractor, in the prosecution of the work\nprovided for in the contract and who has not been paid in full therefor\nbefore the expiration of a period of ninety days after the day on which\nthe last of the labor was performed or material was furnished by him for\nwhich the claim is made, shall have the right to sue on such payment\nbond in his own name for the amount, or the balance thereof, unpaid at\nthe time of commencement of the action; provided, however, that a person\nhaving a direct contractual relationship with a subcontractor of the\ncontractor furnishing the payment bond but no contractual relationship\nexpress or implied with such contractor shall not have a right of action\nupon the bond unless he shall have given written notice to such\ncontractor within one hundred twenty days from the date on which the\nlast of the labor was performed or the last of the material was\nfurnished, for which his claim is made, stating with substantial\naccuracy the amount claimed and the name of the party to whom the\nmaterial was furnished or for whom the labor was performed. The notice\nshall be served by delivering the same personally to the contractor or\nby mailing the same by registered mail, po
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