Current through all regulations passed and filed through September 16, 2024
(A) A principal is
ineligible for a development services agency
bond guarantee under one or more of the
following circumstances;
(1) An owner,
officer, director, or general partner of the principal is under indictment for,
or has been convicted of a felony involving protecting the integrity of
business transactions or business relationships; or a final civil judgment has
been entered stating that such owner, officer, director, or general partner has
committed a breach of trust or has violated a law or regulation protecting the
integrity of business transactions or business relationships; or
(2) A regulatory authority has revoked,
canceled, or suspended a license of the principal, or an owner, officer,
director, or general partner of the principal, which is necessary to perform
the contract; or
(3) The principal
has obtained a bond guaranteed by fraud or material misrepresentation.
(B) A surety is ineligible for a
development services agency
bond guarantee under one or more of the
following circumstances:
(1) A regulatory
authority has revoked, canceled, or suspended a license of the surety, or an
owner, officer, director, or general partner of the surety, which is necessary
to transact business as a surety insurer; or
(2) The surety has obtained a bond guarantee
by fraud or material misrepresentation; or
(3) The surety has materially breached the EDGE bond guarantee
participation agreement with the development services
agency.
(C) A principal may lose eligibility for
further development services agency
bond guarantees if any of the following
occurs under a development services agency-guaranteed bond issued on behalf of the
principal:
(1) Legal action under the
guaranteed bond has been initiated;.
(2) The obligee has declared the principal to
be in default under the contract;.
(3) The surety has requested reimbursement
for losses incurred under the bond; or.
(4) The principal committed fraud or material
misrepresentation in obtaining the guaranteed bond.
(D) A surety may lose eligibility for further
development services agency
bond guarantees if any of the following
occurs under a development services agency-guaranteed bond issued on behalf of the
principal:
(1) The surety committed fraud or
material misrepresentation in obtaining the guaranteed bond.
(2) The surety has materially breached the EDGE bond guarantee
participation agreement.
