Ch. 117                                    1995 LAWS OF MARYLAND

Approved May 9, 1995.

CHAPTER 117
(Senate Bill 178)

AN ACT concerning

Maryland Small Business Development Financing Authority - Surety Bond Program

FOR the purpose of increasing the maximum monetary limit of certain bonds issued by
the Maryland Small Business Development Financing Authority; and generally
relating to the Authority's bond program.

BY repealing and reenacting, with amendments,
Article - Financial Institutions
Section 13-234.3(d)
Annotated Code of Maryland
(1992 Replacement Volume and 1994 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL. ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

13-234.3.

(d) (1) The Authority may execute and perform bid, performance, and payment
bonds as a surety for the benefit of a principal in connection with any contract, the
majority of the funding for which is provided by the federal government or a state
government, a local government, or a utility regulated by the Public Service Commission.

(2)     The bonds:

(i) May not exceed [$250,000] $750,000 each; and

(ii) Shall be subject to the approval of the Authority, based on the
bond worthiness of the principal as determined by the Authority on review of an
application.

(3)     The monetary limit in this subsection does not apply if the sources of
funding for the bonds are grants.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1995.

Approved May 9, 1995.

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