§102-11 Security for performance; conditions. (a) Before any contract is entered into, the party with whom the contract is proposed to be made shall give security for the performance thereof as follows:
(1) For a concession required to provide security under the contract in an amount less than four months' rental and other charges, if any:
(A) A good and sufficient bond;
(B) A deposit of legal tender; or
(C) A certificate of deposit, share certificate, cashier's check, treasurer's check, teller's check, or official check drawn by, or a certified check accepted by, a bank, savings institution, or credit union insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; and
(2) For a concession required to provide security under the contract in an amount equal to or greater than four months' rental and other charges, if any: a good and sufficient bond.
(b) All security provided under this section shall:
(1) Be conditioned on the full and faithful performance of the contract in accordance with the terms and intent thereof;
(2) Be in an amount not less than two months' rental and other charges, if any, required under the contract; provided that any contract for the sale and delivery of in-bond merchandise at the Daniel K. Inouye International Airport shall require a bond in an amount not less than four months of the highest minimum annual rental guaranty required under the contract; and
(3) By its terms inure to the benefit of the State or of the county, as the case may be. [L 1959, c 245, §9; Supp, §7B-9; HRS §102-11; am L 1982, c 141, §1; am L 2006, c 37, §2; am L 2018, c 18, §2]
Structure Hawaii Revised Statutes
Title 9. Public Property, Purchasing and Contracting
102. Concessions on Public Property
102-2 Contracts for concessions; bid required, exception.
102-3 Qualification of bidders.
102-5 Bids; opening; rejection.
102-6 Deposits of legal tender, etc., to accompany bid.
102-7 Forfeiture of deposits, return thereof.
102-8 Bond may be substituted for deposits.
102-9 Contracts to be in writing; highest responsible bidder.
102-10 Modification of contract terms.
102-11 Security for performance; conditions.
102-12 Surety on bond; justification.
102-13 Amendment of contracts, when authorized.
102-14 Use of public buildings by blind or visually handicapped persons.