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S.B. 391
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VETOES
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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 (3) 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 (IV) 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 OR ASSETS THAT ARE EVIDENCED BY A
SECURITY INTEREST, INCLUDING AN IRREVOCABLE TRUST RECEIPTS RECEIPT
ISSUED BY THE FINANCIAL INSTITUTION OR BY AN INDEPENDENT TRUSTEE IN THE
NAME OF THE PUBLIC BODY THAT:
1. ARE ISSUED IN ACCORDANCE WITH THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS OF THE INTERNATIONAL
CHAMBER OF COMMERCE; AND § 9-109 OF THE COMMERCIAL LAW ARTICLE;
2. CONTAIN A PAYOUT CLAUSE IN THE EVENT THAT
DEFAULT CANNOT BE REMEDIED; AND
3. IDENTIFY THE SOLICITATION OR CONTRACT NUMBER FOR
WHICH THE SECURITY INTEREST IS PROVIDED;
(III) UNITED STATES GOVERNMENT SECURITIES AT MARKET
VALUE;
(IV) STOCKS AND BONDS THAT:
1. ARE ACTIVELY TRADED ON A NATIONAL UNITED STATES
SECURITY EXCHANGE;
- 3084 -
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