Louisiana Administrative Code
Title 34 - GOVERNMENT CONTRACTS, PROCUREMENT AND PROPERTY CONTROL
Part V - Procurement
Chapter 5 - Reverse Auctions
Section V-523 - Bid Guaranty and Bond [Formerly LAC 34:I.523]
Universal Citation: LA Admin Code V-523
Current through Register Vol. 50, No. 9, September 20, 2024
A. Bid Guaranty
1. When specified in the invitation for bids,
a bid bond, cashier's check, or certified check, made payable to the Department
of the Treasury of the state of Louisiana, for the amount specified, must
accompany each bid.
2. If a bid
bond is used, it shall be written by a surety or insurance company currently on
the U.S. Department of the Treasury Financial Management Service list of
approved bonding companies which is published annually in the Federal
Register, or by a Louisiana domiciled insurance company with at least
an A-rating in the latest printing of the A.M. Best's Key Rating
Guide to write individual bonds up to 10 percent of policyholders'
surplus as shown in the A.M. Best's Key Rating Guide.
B. Performance Bond
1. Any performance bond furnished shall be
written by a surety or insurance company currently on the U.S. Department of
the Treasury Financial Management Service list of approved bonding companies
which is published annually in the Federal Register, or by a
Louisiana domiciled insurance company with at least an A- rating in the latest
printing of the A.M. Best's Key Rating Guide to write
individual bonds up to 10 percent of policyholders' surplus as shown in the
A.M. Best's Key Rating Guide or by an insurance company that
is either domiciled in Louisiana or owned by Louisiana residents and is
licensed to write surety bonds.
2.
No surety or insurance company shall write a performance bond which is in
excess of the amount indicated as approved by the U.S. Department of the
Treasury Financial Management Service list or by a Louisiana domiciled
insurance company with an A- rating by A.M. Best up to a limit of 10 percent of
policyholders' surplus as shown by A.M. Best; companies authorized by this
Paragraph who are not on the treasury list shall not write a performance bond
when the penalty exceeds 15 percent of its capital and surplus, such capital
and surplus being the amount by which the company's assets exceed its
liabilities as reflected by the most recent financial statements filed by the
company with the Department of Insurance.
3. In addition, any performance bond
furnished shall be written by a surety or insurance company that is currently
licensed to do business in the state of Louisiana. If a performance bond has
been required, the requirement cannot be waived, unless otherwise allowed by
Louisiana statutes.
AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1581.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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