WILLIAM DONALD SCHAEFER, Governor Ch. 715

CHAPTER 715

(House Bill 1024)

AN ACT concerning

Maryland Small Business Development Financing Authority -
Surety Bond Guaranty Fund

FOR the purpose of providing that surety bonds for contracts for
certain projects financed by utilities regulated by the
Public Service Commission may be guaranteed by the Surety
Bond Guaranty Fund under certain circumstances; providing
certain restrictions on guaranties financed by the Surety
Bond Guaranty Fund; clarifying the term "government"; and
generally relating to the Surety Bond Guaranty Fund
financial assistance program.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 13-234.3 and 13-234.6

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

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

Article - Financial Institutions

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 its losses incurred 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 WITH THE FEDERAL OR STATE OR A LOCAL
GOVERNMENT OR A UTILITY REGULATED BY THE PUBLIC SERVICE
COMMISSION.

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

(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.

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