J. MILLARD TAWES, GOVERNOR                              13

CHAPTER 10
(Senate Bill 4)

AN ACT to repeal Section 11 of Article 90 of the Annotated Code
of Maryland (1957 Edition), title "Sureties", sub-title "Bonds
to State to Protect Sub-contractors", and to enact a new Section
11 in lieu thereof to stand in the place and stead of the section so
repealed, generally revising the laws concerning contract perform-
ance bonds to protect contractors and subcontractors; to require
the giving of performance and payment bonds by contractors
awarded contracts in excess of five thousand dollars ($5,000) by
the State of Maryland or by any county, municipal corporation,
board of education or other political subdivision, public authority
or public instrumentality in this State or any officer, board,
commission or agency of any of the foregoing, for the construction,
alteration or repair of any public building or for any public work
or improvement.

Section 1. Be it enacted by the General Assembly of Maryland,
That Section 11 of Article 90 of the Annotated Code of Maryland
(1957 Edition), title "Sureties", sub-title "Bonds to State to Protect
Subcontractors", be and it is hereby repealed, and that a new
Section 11 be and it is hereby enacted in lieu thereof to stand in
the place and stead of the section so repealed, and to read as follows:

11.

(a) Before any contract, exceeding five thousand dollars ($5,000)
in amount, for the construction, alteration, or repair of any public
building or public work or improvement of the State of Maryland,
or of any county, city, municipal corporation, town, board of educa-
tion or other political subdivision, public authority, or public instru-
mentality, or any officer, board, commission, or agency of any of the
foregoing, is awarded to any person, he shall furnish to the State of
Maryland, or to such county, city, municipal corporation, town, or
other political subdivision, public authority, or public instrumentality,
or to such officer, board, commission, or agency thereof, the following
bonds which shall become binding upon the award of the contract
to such person, who is hereinafter designated as "contractor":

(1)  A performance bond executed by a surety company authorized
to do business in this State satisfactory to the public body awarding
the contract, and in such amount as it shall deem adequate, for the
protection of the public body.

(2)  A payment bond excuted EXECUTED by a surety company
authorized to do business in this State satisfactory to the public body
for the protection of all persons supplying labor and materials to the
contractor or his subcontractor in the prosecution of the work pro-
vided for in the contract for the use of each such person. The bond

Explanation: Italics indicate new matter added to existing law.

[Brackets] indicate matter stricken from existing law.

CAPITALS indicate amendments to bill.

Strike out indicates matter stricken out of bill.