Ch. 45

1993 LAWS OF MARYLAND

(ii) Equipment needed to perform the contract, the cost of which can
be repaid from contract proceeds, if the Authority has entered into an agreement with the
applicant necessary to secure the loan.

13-234.3.

(a)     Subject to the restrictions of this Part VI, the Authority, on application, may
guarantee any surety up to the lesser of 90 percent or $900,000 of its losses incurred
under a bid bond, a payment bond, or a performance bond on any contract [with], THE
MAJORITY OF THE FUNDING FOR WHICH IS PROVIDED BY the federal GOVERNMENT
or [State] A STATE [or] GOVERNMENT, a focal government or a utility regulated by the
Public Service Commission.

(d) (1) The Authority may execute and perform bid, performance; and payment
bonds as a surety for the benefit of a principal in connection with any contract [with],
THE MAJORITY OF THE FUNDING FOR WHICH IS PROVIDED BY the federal
GOVERNMENT or [State] A STATE government, a local government [in the State], or a
utility regulated by the [State] Public Service Commission.

(2)     The bonds:

(i) May not exceed $250,000 each; and

(ii) Shall be subject to the approval of the Authority; based on the
bond worthiness of the principal as determined by the Authority on review of an
application.

(3)     The MONETARY limit in this subsection does not apply if the sources OF
FUNDING for the bonds are grants.

13-234.4.

In addition to its authority under this Program; on application, the Authority may
establish a surety Bonding line in order to ISSUE OR guarantee multiple Bonds to a
principal within preapproved terms, conditions, and limitations.

13-234.6.

(b)     The application shall include:

(1)     A detailed description of the [government or utility] project;

(2)     An itemization Of known and estimated costs;

(3)     The total amount of investment required to perform the [government or
utility] contract;

(4)     The funds available to the principal for working capital;

(5)     The amount of bonding assistance sought from the Authority;

(6)     Information that relates to the inability of the principal to obtain
adequate bonding on reasonable terms through normal channels;                         

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