3350 ARTICLE 90

Bonds to State to Protect Sub-Contractors.

An. Code, 1924, sec. 14. 1912, sec. 13. 1918, ch. 127.

11. In all cases where any bond or undertaking, conditioned for the
faithful performance of any contract for construction, installation or repair
work, is given to the State of Maryland, or any of its agencies, such
bond or undertaking shall not be approved or accepted unless the obligors
bind themselves therein to the payment of all just debts for labor and
materials incurred, through sub-contract or in any other manner, by or
in behalf of the person, firm or corporation to whom such contract has
been given, and who is named as principal in such recognizance, stipula-
tion, bond or undertaking. Provided, that in the event that there is a
liability to the State, or any agency thereof, under any such bond or
undertaking, and also a liability thereunder for labor and materials, then
the liability of the State shall be preferred, and shall be paid and discharged
in full before any payment is made for or on account of the liability for
labor or materials; and provided, further, that any suit or proceedings to
enforce the liability under any such bond or undertaking for the payment
of debts for labor or materials shall be brought in the name of the obligee
named in such bond or undertaking, for the use and benefit pro rata of all
creditors for labor or materials who may be entitled to claim thereunder,
and shall be instituted not later than one year from the completion of the
whole work covered by the contract and the acceptance thereof by the State,

or its agency as aforesaid.
Cited but not construed in Carney v. U. S. F. & G. Co., 168 Md. 136.