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  5. 53 N.Y.2d 266 (1981)
 

CATARACT v. TOWN BD OF NEWFANE

53 N.Y.2d 266 (1981)

In the Matter of Cataract Disposal, Inc., Respondent, v. Town Board of the Town of Newfane, Appellant, and Country Side Disposal, Inc., et al., Respondents.

Court of Appeals of the State of New York.

Decided June 16, 1981.

Attorney(s) appearing for the Case

Robert S. Roberson for Town Board of Town of Newfane, appellant.

Michael W. Gibson for J & I Disposal, Inc., respondent.

Leonard G. Tilney, Jr., for Cataract Disposal, Inc., respondent.

Chief Judge COOKE and Judges JASEN and MEYER concur with Judge GABRIELLI; Judge WACHTLER dissents and votes to affirm in a seperate opinion in which Judges JONES and FUCHSBERG concur.

GABRIELLI, J.

We hold that a municipality may, under certain circumstances, treat a cash deposit accompanied by a suitable indemnity agreement as satisfying a requirement in a bid specification that the successful bidder furnish a "performance bond". In so holding, we note that a bid specification calling for a "performance bond" does not necessarily require the involvement of a third-party surety.

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