MARVIN MANDEL, Governor                                     367

SATISFACTORY TO THE PUBLIC BODY AWARDING THE CONTRACT,

AMD IN SUCH AMOUNT AS IT SHALL DEEM ADEQUATE, FOR THE

PROTECTION OF THE PUBLIC BODY.

(2) A PAYMENT BOND 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, INCLUDING LESSORS

OF EQUIPMENT TO THE EXTENT OF THE FAIR RENTAL VALUE

THEREOF, TO THE CONTRACTOR OR HIS SUBCONTRACTOR IN THE

PROSECUTION OF THE WORK PROVIDED FOR IN THE CONTRACT FOR

THE USE OF EACH SUCH PERSON. THE BOND SHALL BE IN THE

AMOUNT NOT LESS THAN FIFTY PER CENTUM (50%) OF THE TOTAL
AMOUNT PAYABLE BY THE TERMS OF THE CONTRACT. ANY
CONTRACTOR COVERED BY SUCH A BOND SHALL NOT BE REQUIRED

TO FURNISH A WAIVER OF MECHANICS' LIENS TO THE STATE.

ANY CONTRACTOR PRIOR TO RECEIVING A PROGRESS OR FINAL

PAYMENT UNDER A CONTRACT COVERED HEREUNDER SHALL CERTIFY

IN WRITING THAT HE HAS MADE PAYMENT FROM PROCEEDS OF

PRIOR PAYMENTS, AND THAT HE WILL MAKE TIMELY PAYMENTS

FROM THE PROCEEDS OF THE PROGRESS OR FINAL PAYMENT THEN

DUE HIM, TO HIS SUBCONTRACTORS AND SUPPLIERS IN ACCORDANCE
WITH HIS CONTRACTUAL ARRANGEMENTS WITH THEM.

(B) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO

LIMIT THE AUTHORITY OF THE STATE OF MARYLAND OR OTHER

PUBLIC BODY HEREINABOVE MENTIONED TO REQUIRE A

PERFORMANCE BOND OR OTHER SECURITY IN ADDITION TO THOSE

OR IN CASES OTHER THAN THE CASES SPECIFIED IN SUBSECTION
(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;

PROVIDED, HOWEVER, THAT ANY PERSON HAVING DIRECT

CONTRACTUAL RELATIONSHIP WITH A SUBCONTRACTOR OF THE

CONTRACTOR, OR WITH ANY SUB-SUBCONTRACTOR OF THE

CONTRACTOR BUT NOT 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