(a) The Authority may execute and perform a bid bond, performance bond, and payment bond as a surety for the benefit of a principal in connection with a contract financed by the federal government or a state government, a local government, a private entity, or a utility regulated by the Public Service Commission.
(b) (1) This subsection does not apply if the sources of funding for the bonds are grants.
(2) The bonds may not exceed $2,500,000 each.
(c) Bonds are subject to the approval of the Authority based on the bond worthiness of the principal.
Structure Maryland Statutes
Division I - Secretary of Commerce and Department of Commerce
Title 5 - Economic Development and Financial Assistance Programs
Subtitle 5 - Maryland Small Business Development Financing Authority
Part VI - Small Business Surety Bond Program
Section 5-563 - Status; Investments
Section 5-566 - Powers of Authority -- in General
Section 5-567 - Powers of Authority -- Program
Section 5-568 - Surety -- Authority as Guarantor
Section 5-569 - Surety -- Authority as Surety
Section 5-570 - Economic Impact of Contract
Section 5-571 - Surety Bonding Line Authorized
Section 5-572 - Qualifications of Principal; Bond Requirements