Section 5-568 - Surety - Authority as guarantor [Amendment subject to abrogation].
§ 5-568. Surety - Authority as guarantor [Amendment subject to abrogation].
(a) Authorized.- The Authority may guarantee a surety up to the lesser of 90% or $5,000,000 of its loss under a bid bond, payment bond, or performance bond on a contract financed by the federal government, a state government, a local government, a private entity, or a utility that the Public Service Commission regulates.
(b) Limitation.- The term of a guaranty under this part may not exceed the contract term, including:
(1) the maintenance or warranty period required by the contract; and
(2) the period during which the surety may be liable for latent defects.
(c) Terms and conditions.- The Authority may vary the terms and conditions of a guaranty based on:
(1) the Authority's history of experience with a surety; and
(2) any other factor the Authority considers relevant.
[An. Code 1957, art. 83A, §§ 5-1032(c), 5-1035(a)-(c); 2008, ch. 306, § 2; ch. 266.]