WILLIAM DONALD SCHAEFER, Governor

(a)  Subject to the restrictions of this Part VI, the
Authority, on application, may guarantee any surety up to 90
percent of [any] ITS 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] UNDER A BID BOND, A PAYMENT BOND, OR A
PERFORMANCE BOND OF NOT MORE THAN $1,000,000 FOR EACH BOND ON ANY
GOVERNMENT CONTRACT.

(b)  The term of a guaranty under this Part VI may not
exceed the CONTRACT term [of the contract].

(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 NOT APPROVE A GUARANTEE UNDER
THIS PART VI UNLESS THE AUTHORITY CONSIDERS THE ECONOMIC IMPACT
OF THE CONTRACT, FOR WHICH A BOND IS SOUGHT TO BE GUARANTEED, TO
BE SUBSTANTIAL.

(2) TO DETERMINE THE ECONOMIC IMPACT OF A CONTRACT,
THE AUTHORITY MAY CONSIDER:

(I)  THE AMOUNT OF THE GUARANTEE 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.

13-234.5.

(a)  To qualify for a surety bond guaranty 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)  (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[,
the]:

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