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S.B. 391 VETOES
(b) The term of a guaranty under this Part VI may not exceed the contract
term.
(c) The Authority may vary the terms and conditions of the guaranty from
surety to surety, based upon the Authority's history of experience with that surety and
upon any other factor that the Authority considers relevant.
(d) (1) The Authority may execute and perform bid, performance, and
payment bonds as a surety for the benefit of a principal in connection with any
contract, the majority of the funding for which is provided by the federal government
or a state government, a local government, or a utility regulated by the Public Service
Commission.
(2) The bonds:
(i) May not exceed [$1,000,000] $5,000,000 each; and
(ii) Shall be subject to the approval of the Authority, based on the
bond worthiness of the principal as determined by the Authority on review of an
application.
(3) The monetary limit in this subsection does not apply if the sources of
funding for the bonds are grants.
(e) (1) The Authority may not approve a guaranty or a bond under this Part
VI unless the Authority considers the economic impact of the contract, for which a
bond is sought to be guaranteed or issued, to be substantial.
(2) To determine the economic impact of a contract, the Authority may
consider:
(i) The amount of the guaranty obligation;
(ii) The terms of the bond to be guaranteed;
(iii) The number of new jobs that will be created by the contract to
be bonded; and
(iv) Any other factor that the Authority considers relevant.
5-1037.
(a) To qualify for a surety bond or guaranty under the Program, a principal
shall meet the requirements of this section.
(b) The principal shall satisfy the Authority that:
(1) (i) The principal is of good moral character; or
(ii) If the principal is not an individual, the principal is owned by
individuals of good moral character;
(2) As determined from creditors, employers, and other individuals who
have personal knowledge of the principal:
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