New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4253 - Bonding Guarantee Assistance Program
Section 4253.6 - Financial backing program assistance

Universal Citation: 21 NY Comp Codes Rules and Regs ยง 4253.6
Current through Register Vol. 45, No. 52, December 27, 2023

Program assistance is limited to the financial backing necessary to secure bid bonds, performance bonds, and payment bonds issued in connection with contract bids or awards. Such program assistance shall be in such form as the corporation may determine, and may include irrevocable standby letters of credits issued to a surety company by a financial institution for the account of the corporation in connection with the surety company providing such bonds on behalf of a program eligible contractor with respect to a contract. The amount of such program assistance provided to a surety company with respect to each contract shall generally not be greater than the amount necessary to induce such surety company to issue the bonds required for the contract, and in no event shall exceed 50 percent of the face value of bonds to be issued by the surety company for such contract. Generally, a surety company may not receive program assistance for more than two contracts for the same contractor at the same time.

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