New York Codes, Rules and Regulations
Title 21 - Miscellaneous
Chapter L - New York State Urban Development Corporation
Part 4253 - Bonding Guarantee Assistance Program
Section 4253.7 - Program administration
Current through Register Vol. 46, No. 12, March 20, 2024
(a) In order for a surety company to participate in the program, the surety company shall enter into a program participation agreement with the corporation in such form as the corporation or the agent may prescribe. Such agreements may include provisions for proof of contractor default; termination of contracts; underwriting standards and principles and practices used in evaluating credit and capacity; and requirements for the claims process, including requirements that the surety company conduct diligent and commercially reasonable recovery efforts.
(b) The corporation shall conduct the oversight and management of the program, and the corporation may engage an agent for administration and implementation of the program.
(c) The corporation may contract with one or more financial institutions in order that such financial institution will provide to surety companies, as additional financial backing program assistance, letters of credit or other guarantees for the account of the corporation.
(d) The corporation or the agent shall evaluate applications for program assistance and make determinations as to business creditworthiness and whether to provide the requested additional financial backing program assistance. Evaluations of eligible contractors may, among other things, include review of financial information, contract performance history, documents submitted to the surety company and other business information.
(e) The corporation may facilitate the provision of technical assistance to eligible small businesses and certified minority-owned business enterprises and certified women-owned business enterprises in accordance with applicable law and regulations.
(f) The corporation or the agent shall prepare annual reports for the program.
