1. (a) The Authority may guarantee a surety up to the lesser of 90% or $2,250,000 of its loss under a bid bond, payment bond, or performance bond on a contract financed by the federal government, a state government, a local government, a private entity, or a utility that the Public Service Commission regulates.

2. (b) The term of a guaranty under this part may not exceed the contract term, including:

   1. (1) the maintenance or warranty period required by the contract; and
   2. (2) the period during which the surety may be liable for latent defects.

3. (c) The Authority may vary the terms and conditions of a guaranty based on:

   1. (1) the Authority's history of experience with a surety; and
   2. (2) any other factor the Authority considers relevant.

Added by Acts 2008, c. 306, § 2, eff. Oct. 1, 2008. Amended by Acts 2008, c. 266, § 1, eff. Oct. 1, 2008; Acts 2008, c. 306, § 4; Acts 2015, c. 106, § 1, eff. July 1, 2015.