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ROBERT L. EHRLICH, JR., Governor Ch. 299
[(3)] (4) [other] ANOTHER FORM OF security:
(I) ALLOWED BY REGULATION AUTHORIZED BY FEDERAL OR
STATE REGULATION; OR
(II) that is satisfactory to the public body awarding the contract.
(b) (1) Subject to paragraphs (2) and (3) of this subsection, performance
security may include the granting of a mortgage or deed of trust on real property
located within the State if such security is satisfactory to the public body awarding
the contract.
(2) The face amount of a mortgage or deed of trust on real property
granted as security under this subsection may not exceed 75% of the contractor's
equity interest in the property.
(3) A mortgage or deed of trust accepted under this subsection shall be
recorded by an official designated by the public body accepting the mortgage or deed
of trust in the land records of the county where the real property is situated in
accordance with § 3-103 of the Real Property Article.
(C) A BOND EXECUTED BY AN INDIVIDUAL SURETY SHALL BE ACCEPTABLE AS
PAYMENT SECURITY OR PERFORMANCE SECURITY UNDER THIS SUBTITLE IF:
(1) THE INDIVIDUAL SURETY PROVIDES A SECURITY INTEREST IN ONE
OR MORE OF THE ASSETS LISTED IN PARAGRAPH (2) OF THIS SUBSECTION TO THE
PROCUREMENT OFFICER AT THE TIME THE BOND IS FURNISHED; AND
(1) THE CONTRACTOR HAS BEEN DENIED CORPORATE SURETY CREDIT:
(2) THE INDIVIDUAL SURETY ONLY TRANSACTS BUSINESS THROUGH AN
INSURANCE AGENCY LICENSED BY THE MARYLAND INSURANCE ADMINISTRATION;
(3) THE INDIVIDUAL SURETY ATTACHES THE GSA STANDARD FORM 28,
AFFIDAVIT OF INDIVIDUAL SURETY. TO THE BID SECURITY:
(4) THE INDIVIDUAL SURETY PROVIDES A UCC-1 FILING SECURITY
INTEREST TO THE PUBLIC BODY FOR ONE OR MORE OF THE ASSETS LISTED IN ITEM
(5)(I) THROUGH (TV) AND (VI) OF THIS SUBSECTION AT THE TIME THE BOND IS
FURNISHED; AND
(2) (5) THE INDIVIDUAL SURETY PLEDGES ONE OR MORE OF THE
FOLLOWING ASSETS IN AN AMOUNT EQUAL TO OR GREATER THAN THE AGGREGATE
PENAL AMOUNTS OF THE BONDS REQUIRED BY THE SOLICITATION, INCLUDING:
(I) CASH OR CERTIFICATES OF DEPOSIT;
(II) CASH EQUIVALENTS HELD WITH A FEDERALLY INSURED
FINANCIAL INSTITUTION, INCLUDING CASH EQUIVALENTS EVIDENCED BY
IRREVOCABLE TRUST RECEIPTS ISSUED BY THE INSTITUTION OR BY AN
INDEPENDENT TRUSTEE OR ASSETS THAT ARE EVIDENCED BY A SECURITY
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- 1681 -
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