At the request and expense of the contractor, and with the approval of the trustees, any amount withheld pursuant to Section 10851 may be deposited with the Treasurer as the escrow agent, who shall pay such moneys to the contractor upon the placing of securities eligible for the investment of state funds under Section 16430 of the Government Code or bank certificates of deposit into such escrow account by the contractor.
“Approval of the trustees,” as used in this section, means that the trustees may, in their discretion, allow or deny the request of the contractor to avail itself of the provisions of this section and that the trustees may, in their discretion, allow the request of the contractor upon the satisfaction of conditions which may be specified by the trustees.
The contractor shall be beneficial owner of any securities in an escrow account pursuant to this section and shall receive any interest thereon.
Any escrow agreement entered into pursuant to this section shall contain as a minimum, the following provisions:
(a) The amount of securities to be deposited; such amount shall not be less than the amount which would otherwise be withheld pursuant to Section 10851;
(b) The terms and conditions of conversion to cash in case of the default of the contractor; and
(c) The termination of the escrow upon completion of the contract.