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§ 17-104. Payment, performance securities; face amount, recording

West's Annotated Code of MarylandState Finance and ProcurementEffective: October 1, 2014

West's Annotated Code of Maryland
State Finance and Procurement
Division II. General Procurement Law [Titles 11-End] (Refs & Annos)
Title 17. Special Provisions--State and Local Subdivisions (Refs & Annos)
Subtitle 1. Security for Construction Contracts (Refs & Annos)
Effective: October 1, 2014
MD Code, State Finance and Procurement, § 17-104
§ 17-104. Payment, performance securities; face amount, recording
Currentness
In general
(a) Payment security or performance security required under this subtitle shall be:
(1) a bond executed by a surety company authorized to do business in the State;
(2) cash in an amount equivalent to a bond; or
(3) other security that is satisfactory to the public body awarding the contract.
Face amount of security, recording
(b)(1) Subject to paragraphs (2) and (3) of this subsection, performance security may include the granting of a mortgage or deed of trust on real property located within the State if such security is satisfactory to the public body awarding the contract.
(2) The face amount of a mortgage or deed of trust on real property granted as security under this subsection may not exceed 75% of the contractor's equity interest in the property.
(3) A mortgage or deed of trust accepted under this subsection shall be recorded by an official designated by the public body accepting the mortgage or deed of trust in the land records of the county where the real property is situated in accordance with § 3-103 of the Real Property Article.

Credits

Added by Acts 1988, c. 48, § 2, eff. Oct. 1, 1988. Amended by Acts 1997, c. 408, § 1, eff. Oct. 1, 1997; Acts 2006, c. 299, § 1, eff. Oct. 1, 2006; Acts 2008, c. 266, § 1, eff. Oct. 1, 2008.
MD Code, State Finance and Procurement, § 17-104, MD STATE FIN & PROC § 17-104
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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