§ 143B-472.107. Bonding assistance authorized.
§ 143B‑472.107. Bondingassistance authorized.
(a) Guaranty. Subjectto the restrictions of this Part, the Authority, on application, may guaranteea surety for losses incurred under a bid bond, payment bond, or performancebond on an applicant's contract, of which the majority of the funding isprovided by a government agency or a combination of government agencies, up toninety percent (90%) of the surety's losses, or nine hundred thousand dollars($900,000), whichever is less. The term of a guaranty under this section shallnot exceed the contract term. The Authority may vary the terms and conditionsof the guaranty from surety to surety, based on the Authority's history ofexperience with the surety and other factors that the Authority considers relevant.
(b) Notice. When theAuthority provides a guaranty under this section with respect to a contract, itmust give the government agencies that are parties to the contract writtennotice of the guaranty.
(c) Bonds. TheAuthority may execute and perform bid bonds, performance bonds, and paymentbonds as a surety for the benefit of an applicant in connection with acontract, of which the majority of the funding is provided by a governmentagency or a combination of government agencies.
(d) Obligation of State. The total amount of guarantees issued and bonds executed shall not exceedninety percent (90%) of the amount of money in the Small Business Surety BondFund. The Authority shall not pledge any money other than money in the Fund forpayment of a loss or bond. No action by the Authority constitutes the creationof a debt secured by a pledge of the taxing power or the faith and credit ofthe State or any of its political subdivisions. The face of each guaranteeissued or bond executed shall contain a statement that the Authority isobligated to pay the guarantee or bond only from the revenue in the SmallBusiness Surety Bond Fund and that neither the taxing power nor the faith andcredit of the State or any of its political subdivisions is pledged in paymentof the guarantee or bond. Nothing in this subsection limits the ability of theAuthority to obtain reinsurance.
(e) Limitation. Thetotal amount of bonding assistance provided to each recipient during a fiscalyear shall not exceed fifteen percent (15%) of the amount of money in the Fundas of the beginning of that fiscal year.
(f) Payment. If theAuthority considers it prudent, it may require that payment be made either tothe contractor and lending institution or to the bonding authority. (2007‑441, s. 1.)