(A) In lieu of providing a financial statement showing a minimum net worth for a license group as required by Section 40-11-260, an applicant may provide a surety bond from a surety authorized to transact surety business in this State in an amount of two times the required net worth for the applicant's license group with his initial or renewal application.
(B) The surety bond provided in subsection (A) must:
(1) be continuous in form and must be maintained in effect for as long as the applicant maintains the license issued by the department or until the applicant submits a financial statement showing that he meets the net worth requirements for his license group as provided in Section 40-11-260;
(2) list the State of South Carolina as obligee for the bond;
(3) be for the benefit of any person who is damaged by an act or omission of the applicant constituting a breach of construction contract or a contract for the furnishing of labor, materials, or professional services for construction undertaken by the applicant, or by any unlawful act or omission of the applicant in performing construction; and
(4) be in addition to, and not in lieu of, any other surety bond required of the applicant by law or regulation, or by any party to a contract with the applicant.
(C) The surety bond provided in subsection (A) only may be canceled by notification to the board by the surety and the applicant thirty days prior to cancellation. When the surety bond is canceled, the licensee shall provide proof of net worth for his license group as required by Section 40-11-260 within ten days of cancellation or his license is suspended until written proof of net worth is provided.
(D) Claims may be filed against the bond on a form approved by the board in accordance with procedures established by the board in regulation.
HISTORY: 2018 Act No. 217 (H.4612), Section 1, eff May 18, 2018.
Structure South Carolina Code of Laws
Title 40 - Professions and Occupations
Section 40-11-5. Application of chapter; conflict of laws.
Section 40-11-20. Definitions.
Section 40-11-30. Licensing requirement.
Section 40-11-40. Voluntary contributions with licensee applications; uses; reporting requirements.
Section 40-11-50. Repealed by 2014 Act No. 207, Section 1, eff July 1, 2014.
Section 40-11-60. Rules and regulations; owner-prepared financial statement form.
Section 40-11-70. Powers of board.
Section 40-11-80. Investigation of complaints and violations.
Section 40-11-90. Results of investigations to be presented to board; hearing.
Section 40-11-120. Other sanctions.
Section 40-11-130. Denial of license or certificate.
Section 40-11-140. Prior criminal record.
Section 40-11-150. Voluntary surrender of license.
Section 40-11-170. Costs of investigation and prosecution.
Section 40-11-180. Collection and enforcement of costs, fees, and fines.
Section 40-11-190. Investigations and proceedings confidential; communications privileged.
Section 40-11-200. Unlawful practice; penalty.
Section 40-11-210. Injunctive relief.
Section 40-11-230. Certification as qualifying party.
Section 40-11-240. Qualifications for licensure; required submissions.
Section 40-11-250. Renewal of license; lapsed license.
Section 40-11-260. Financial statements; net worth requirements.
Section 40-11-262. Surety bonds in lieu of providing financial statements.
Section 40-11-280. Change in license classification.
Section 40-11-290. Licensure of applicant holding license in another state.
Section 40-11-330. Joint Venture Bid.
Section 40-11-340. Qualifications for acting as sole prime contractor.
Section 40-11-380. Notification of bankruptcy of licensee.
Section 40-11-400. Qualifying party certificates.
Section 40-11-410. License classifications and subclassifications.
Section 40-11-430. Severability.
Section 40-11-500. Citation of article.
Section 40-11-510. Definitions.
Section 40-11-520. Stay of action or arbitration.
Section 40-11-530. Notice of claim; contents; request for clarification.