General Municipal Law 109 — Legislation
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SECTION 109-A
Purchases through the office of general services by certain public associations
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SECTION 109
Assignment of public contracts
General Municipal (GMU) CHAPTER 24, ARTICLE 5-A
§ 109. Assignment of public contracts. 1. A clause shall be inserted
in all specifications or contracts hereafter made or awarded by any
officer, board or agency of a political subdivision, or of any district
therein, prohibiting any contractor, to whom any contract shall be let,
granted or awarded, as required by law, from assigning, transferring,
conveying, subletting or otherwise disposing of the same, or of his
right, title, or interest therein, or his power to execute such
contract, to any other person or corporation without the previous
consent in writing of the officer, board or agency awarding the
contract.
2. If any contractor, to whom any contract is let, granted or awarded,
as required by law, by any officer, board or agency of a political
subdivision, or of any district therein, shall without the previous
written consent specified in subdivision one of this section, assign,
transfer, convey, sublet or otherwise dispose of such contract, or his
right, title or interest therein, or his power to execute such contract,
to any other person or corporation, the officer, board or agency which
let, made, granted or awarded such contract shall revoke and annul such
contract, and the political subdivision or district therein, as the case
may be, and such officer, board or agency shall be relieved and
discharged from any and all liability and obligations growing out of
such contract to such contractor, and to the person or corporation to
which such contract shall have been assigned, transferred, conveyed,
sublet or otherwise disposed of, and such contractor, and his assignees,
transferees or sublessees shall forfeit and lose all moneys, theretofore
earned under such contract, except so much as may be required to pay his
employees. The provisions of this section shall not hinder, prevent, or
affect an assignment by any such contractor for the benefit of his
creditors made pursuant to the laws of this state.