ME–Bond Threshold Increased (LD 2092–Public Law Ch. 500)–ENACTED LAW
Governor Baldacci signed LD 2092, An Act To Amend the Public Works Contractors’ Surety Bond Law of 1971, into law (Public Law, Chapter 500). This measure increases the threshold for requiring a surety bond on a public works project from $100,000 to $125,000 and permits the use of an irrevocable letter of credit from a federally insured financial institution in lieu of a bond. The original bill called for a bond threshold of $250,000 but AIA and SFAA worked to convince the committee that such an increase was neither wise nor warranted.
A copy of the enacted legislation is available at: http://janus.state.me.us/legis/LawMakerWeb/externalsiteframe.asp?ID=280027611&LD=2092&Type=1&SessionID=7
The legislation will take effect 90 days after the Legislature adjourns.
This memo is being simultaneously sent to our legislative analyst staff and will be available on AIAccess shortly.
John P. Murphy
Regional Vice President
American Insurance Association
One Walnut Street
Boston, MA 02108
(617) 305-4152
Filed under: Construction Law, Surety Legislation
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