2272

LAWS OF MARYLAND

Ch. 655

from liability for the payment of costs and expenses of
certain suits; and generally relating to the
requirements and procedures for providing certain forms
of security with respect to certain public works
contracts.

BY repealing and reenacting, with amendments,

Article - Real Property

Section 9-113

Annotated Code of Maryland

(1974 Volume and 1979 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article - Real Property

9-113.

(a) Before any contract exceeding (five thousand
dollars ($5,000)] $25,000 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 education or
other political subdivision, public authority, or public
instrumentality, or any officer, board, commission, or
agency of any of the foregoing, is awarded to any person,

[he] AND UNLESS OTHER SECURITY SATISFACTORY TO THE

CONTRACTING AUTHORITY HAS BEEN PROVIDED, THAT PERSON 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, OR THE
EQUIVALENT IN CASH, OR OTHER SECURITY 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 executed by a surety company
authorized to do business in this State, OR THE EQUIVALENT
IN CASH, OR OTHER SECURITY 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