HARRY HUGHES, Governor

2477

13-234.2 13-234.4.

IN ADDITION TO ITS AUTHORITY UNDER § 13-234.1 OF THIS PART
VI THIS PROGRAM, ON APPLICATION, THE AUTHORITY MAY ESTABLISH A
SURETY BONDING LINE IN ORDER TO ISSUE GUARANTEE MULTIPLE BONDS TO
A SMALL BUSINESS PRINCIPAL WITHIN PREAPPROVED TERMS, CONDITIONS,
AND LIMITATIONS.

13-234.3 13-234.5.

(A)  TO QUALIFY FOR A SURETY BOND GUARANTEE UNDER §§ 13-234
THROUGH 13-234.5 OF THIS SUBTITLE, A PRINCIPAL SHALL MEET THE
REQUIREMENTS OF THIS SECTION.

(B)  THE PRINCIPAL SHALL SATISFY THE AUTHORITY THAT:

(1)  THE PRINCIPAL IS OF GOOD MORAL CHARACTER;

(2)  AS DETERMINED FROM CREDITORS, EMPLOYERS, AND
OTHER INDIVIDUALS WHO HAVE PERSONAL KNOWLEDGE OF THE APPLICANT
PRINCIPAL, THE PRINCIPAL HAS A REPUTATION FOR FINANCIAL
RESPONSIBILITY;

(3)  THE PRINCIPAL IS A CITIZEN OF THE UNITED STATES;
RESIDENT OF MARYLAND OR HAS ITS PRINCIPAL PLACE OF BUSINESS IN
MARYLAND; AND

(4)  THE PRINCIPAL IS UNABLE TO OBTAIN ADEQUATE
BONDING REQUIREMENTS ON REASONABLE TERMS THROUGH NORMAL INSURANCE
CHANNELS AND .

(5) (C) THE PRINCIPAL SHALL CERTIFY TO THE AUTHORITY
AND THE AUTHORITY SHALL BE SATISFIED THAT:

(I) (1) A BOND IS REQUIRED IN ORDER TO BID ON A
CONTRACT OR TO SERVE AS A PRIME CONTRACTOR OR SUBCONTRACTOR;

(II) (2) A BOND IS NOT OBTAINABLE ON REASONABLE
TERMS AND CONDITIONS WITHOUT ASSISTANCE UNDER THE MARYLAND SMALL
BUSINESS SURETY BOND GUARANTEE PROGRAM; AND

(III) (3) THE PRINCIPAL WILL NOT SUBCONTRACT
MORE THAN 75 PERCENT OF THE DOLLAR VALUE OF THE CONTRACT.

13-234.4 13-234.6.

(A)  TO APPLY FOR FINANCIAL ASSISTANCE FROM THE MARYLAND
SMALL BUSINESS SURETY BOND GUARANTEE PROGRAM PURSUANT TO §§
13-234 THROUGH 13-234.5 OF THIS SUBTITLE, A PRINCIPAL AND SURETY
SHALL SUBMIT TO THE AUTHORITY AN APPLICATION ON THE FORM THAT THE
AUTHORITY PROVIDES.

(B)  THE APPLICATION SHALL INCLUDE: