Ch. 48

LAWS OF MARYLAND

17-108. ACTION ON SECURITY.

(A)  IN GENERAL.

SUBJECT TO SUBSECTION (B) OF THIS SECTION, A SUPPLIER MAY
SUE ON PAYMENT SECURITY IF THE SUPPLIER:

(1)  SUPPLIED LABOR OR MATERIALS IN THE PROSECUTION OF
WORK PROVIDED FOR IN A CONTRACT SUBJECT TO THIS SUBTITLE; AND

(2)  HAS NOT BEEN PAID IN FULL FOR THE LABOR OR
MATERIALS WITHIN 90 DAYS AFTER THE DAY THAT THE PERSON LAST
SUPPLIED LABOR OR MATERIALS FOR WHICH THE CLAIM IS MADE.

(B)  PAYMENT OWED BY SUBCONTRACTOR.

(1)  A SUPPLIER WHO HAS A DIRECT CONTRACTUAL
RELATIONSHIP WITH A SUBCONTRACTOR OR SUB-SUBCONTRACTOR OF A
CONTRACTOR WHO HAS PROVIDED PAYMENT SECURITY BUT NO CONTRACTUAL
RELATIONSHIP WITH THE CONTRACTOR MAY SUE ON THE SECURITY IF THE
SUPPLIER GIVES WRITTEN NOTICE TO THE CONTRACTOR WITHIN 90 DAYS
AFTER THE LABOR OR MATERIALS FOR WHICH THE CLAIM IS MADE WERE
LAST SUPPLIED IN PROSECUTION OF WORK COVERED BY THE SECURITY.

(2)  A NOTICE UNDER THIS SUBSECTION:

(I)  SHALL STATE WITH SUBSTANTIAL ACCURACY THE
AMOUNT CLAIMED AND THE PERSON TO WHOM THE LABOR OR MATERIAL WAS
SUPPLIED; AND

(II)  SHALL BE SENT BY CERTIFIED MAIL TO THE
CONTRACTOR AT THE CONTRACTOR'S RESIDENCE OR A PLACE WHERE THE
CONTRACTOR HAS AN OFFICE OR DOES BUSINESS.

(C)  CERTIFICATION OF SECURITY.

(1)  ON REQUEST BY A PERSON WHO SUBMITS AN AFFIDAVIT
VERIFYING THAT THE PERSON HAS SUPPLIED LABOR OR MATERIALS BUT HAS
NOT BEEN PAID OR IS BEING SUED UNDER THIS SECTION, THE
COMPTROLLER OR THE OFFICER IN CHARGE OF THE OFFICE WHERE THE
PAYMENT SECURITY OR EVIDENCE OF SECURITY IS REQUIRED TO BE FILED
SHALL ISSUE:

(I)  A CERTIFIED COPY OF THE PAYMENT BOND; OR

(II)  FOR OTHER SECURITY, A CERTIFIED STATEMENT
OF THE SECURITY.

(2)  THE PERSON REQUESTING CERTIFICATION SHALL PAY A
REASONABLE FEE, SET BY THE COMPTROLLER OR OTHER OFFICER REQUIRED
TO ISSUE THE CERTIFICATION, TO COVER THE COSTS OF PREPARATION.

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