2476

LAWS OF MARYLAND

Ch. 426

(8) DO ANYTHING NECESSARY OR CONVENIENT TO CARRY OUT
ITS POWERS AND THE PURPOSES OF THIS PROGRAM.

13-234.2.

(A) THERE IS A SMALL BUSINESS SURETY BOND GUARANTEE FUND.

(B) THE FUND IS A CONTINUING, NONLAPSING, REVOLVING FUND
THAT CONSISTS OF:

(1) MONEYS APPROPRIATED BY THE STATE TO THE FUND;

(2) PREMIUMS, FEES, AND ANY OTHER AMOUNTS RECEIVED BY
THE AUTHORITY WITH RESPECT TO BONDING ASSISTANCE PROVIDED BY THE
AUTHORITY UNDER THIS PROGRAM;

(3) PROCEEDS DESIGNATED BY THE AUTHORITY FROM THE
SALE, LEASE, OR OTHER DISPOSITION OF PROPERTY OR CONTRACTS HELD
OR ACQUIRED BY THE AUTHORITY;

(4) INCOME FROM INVESTMENTS THAT THE STATE TREASURER
MAKES FROM MONEYS IN THE FUND; AND

(5) ANY OTHER MONEYS MADE AVAILABLE UNDER THIS
PROGRAM.

(C) THE FUND SHALL BE USED:

(1) FOR THE PURPOSES DESCRIBED IN THIS PROGRAM; AND

(2) TO PAY ANY AND ALL EXPENSES OF THE AUTHORITY IN
ADMINISTERING THE PROGRAM.

(D) MONEYS IN THE FUND SHALL BE DEPOSITED WITH THE STATE
TREASURER AND INVESTED AND REINVESTED IN THE SAME MANNER AS OTHER
STATE FUNDS, AND ANY INVESTMENT EARNINGS SHALL BE PAID INTO THE
FUND.

13-234.1 13-234.3.

(A)  SUBJECT TO THE RESTRICTIONS OF THIS PART VI, THE
AUTHORITY, ON APPLICATION, MAY GUARANTEE ANY SURETY UP TO 90
PERCENT OF ANY LOSSES INCURRED AS A RESULT OF A PRINCIPAL'S
BREACH OF A BID BOND, A PAYMENT BOND, OR A PERFORMANCE BOND ON
ANY GOVERNMENT CONTRACT OF NOT MORE THAN $1,000,000 IN FACE
VALUE.

(B)  THE TERM OF A GUARANTEE UNDER THIS PART VI MAY NOT
EXCEED THE TERM OF THE CONTRACT.

(C)  THE AUTHORITY MAY VARY THE TERMS AND CONDITIONS OF THE
GUARANTEE FROM SURETY TO SURETY, CONDITIONED ON BASED UPON THE
AUTHORITY'S HISTORY OF EXPERIENCE WITH THAT SURETY AND UPON ANY
OTHER FACTOR THAT THE AUTHORITY CONSIDERS RELEVANT.