WILLIAM DONALD SCHAEFER, Governor Ch. 587
(1986 Replacement Volume and 1988 Supplement)

BY repealing and reenacting, without amendments,

Article - Financial Institutions

Section 13-234.3(a)

Annotated Code of Maryland

(1986 Replacement Volume and 1988 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.

(c) (1) "Contract term" means the term of the government
contract [including the maintenance or warranty period of up to 2
years from the date on which final payment under the contract is
due] .

(2) "CONTRACT TERM" INCLUDES:

(I)  THE MAINTENANCE OR WARRANTY PERIOD REQUIRED
BY THE CONTRACT; AND

(II)  THE PERIOD DURING WHICH THE SURETY MAY BE
LIABLE FOR LATENT DEFECTS.

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 contract with the federal or State or a local government
or a utility regulated by the Public Service Commission.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

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