Ch. 110                                    LAWS OF MARYLAND

Approved April 14, 1987.

CHAPTER 110

(House Bill 992)

AN ACT concerning                                         

Insurance - Certificates of Guarantee
MC/PG 28-87

FOR the purpose of exempting from the Insurance Code certain
certificates of guarantee issued on behalf of contractors
for the purpose of satisfying certain bond requirements in
Prince George's County and Montgomery County; clarifying
that Montgomery County and Prince, George's County may honor
certificates of guarantee under this Act, but are not
required to honor certificates of guarantee under the
insurance laws of the State; defining certain terms; making
this Act an emergency measure; and generally relating to
certificates of guarantee.

BY adding to

Article 48A - Insurance Code
Section 9A

Annotated Code of Maryland
(1986 Replacement Volume)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

9A.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(2) "CERTIFICATE OF GUARANTEE" MEANS AN INSTRUMENT
ISSUED:

(I)  BY A NONPROFIT ASSOCIATION OF CONTRACTORS,
OR ITS WHOLLY OWNED SUBSIDIARY WHICH IS APPROVED TO OPERATE BY
PRINCE GEORGE'S COUNTY OR MONTGOMERY COUNTY, AS APPROPRIATE; AND

(II)  ON BEHALF OF A CONTRACTOR FOR THE PURPOSE
OF SATISFYING COUNTY BOND REQUIREMENTS FOR PUBLIC IMPROVEMENTS OR

OTHER COUNTY BONDING REQUIREMENTS.

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