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Session Laws, 1959
Volume 642, Page 14   View pdf image (33K)
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14                                Laws of Maryland                        [Ch. 10

shall be in the amount not less than fifty percentum (50%) of the
total amount payable by the terms of the contract.

(b)  Nothing in this section shall be construed to limit the au-
thority of the State of Maryland or other public body hereinabove
mentioned to require a performance bond or other security in
additional to those, or in cases other than the cases specified in
sub-section (a) of this section.

(c)  Every person who has furnished labor or material in the
prosecution of the work provided for in such contract, in respect
of which a payment bond is furnished under this section and who
has not been paid in full therefor before the expiration of a period
of ninety days after the day on which the last of the labor was
done or performed by him or material was furnished or supplied
by him for which such claim is made, shall have the right to sue
on the payment bond for the amount, or the balance thereof, unpaid
at the time of institution of such suit and to prosecute said action to
final judgment and execution for the sum or sums justly due him; pro-
vided, however, that any person having direct contractual relation-
ship with a subcontractor of the contractor,
OR WITH ANY SUB-
SUBCONTRACTOR OF THE CONTRACTOR but no contractual
relationship express or implied with the contractor furnishing said
payment bond, shall have a right of action upon the payment bond
upon giving written notice to the contractor within ninety (90) days
from the date on which such person did, or performed the last of the
labor or furnished or supplied the last of the material for which such
claim is made, stating with substantial accuracy the amount claimed
and the name of the party to whom the material was furnished or
supplied or for whom the labor was done or performed. Such
notice shall be served by mailing the same by registered or certified
mail, postage prepaid, in an envelope addressed to the contractor
at any place he maintains an office or conducts his business, or
his residence.

(d)  Every suit instituted under this section shall be brought in
the appropriate court in the political subdivision in which the Con-
tract was to be performed and executed and not elsewhere, but no
such suit shall be commenced after the term of one year after the
date of final acceptance of the work performed under the contract.
The obligee named in the bond shall not be liable for the payment
of any cost or expenses of any such suit.

(e)  In the case of contracts of the State of Maryland, or any
board, commission, or agency thereof, the aforesaid bonds shall be
payable to the State of Maryland and shall be approved by the
Attorney General as to form. In the case of all other contracts
subject to this section, the bonds shall be payable to the public
body concerned, and shall be approved by its attorney as to form.

(f)  Bonds payable to the State of Maryland shall be filed in the
office of the State Comptroller. All other bonds shall be filed in the
office of the public body concerned.

(g)  The State Comptroller or officer in charge of the office
wherein the aforesaid bonds are required to be filed is authorized and
directed to furnish, to any person making application therefor who
submits an affidavit that he has supplied labor, or materials, for
such work and payment therefor has not been made or that he is


 

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Session Laws, 1959
Volume 642, Page 14   View pdf image (33K)
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