Section 290-RICR-20-00-4.7 - Bond RequirementsA. The Permittee will be required to give surety or to submit a performance bond to the Department prior to the issuance of any Physical Alteration Permit.B. If the costs of the proposed Alteration under the Permit exceed $25,000, the Permittee shall furnish a performance bond in the amount of one hundred percent (100%) of costs conditioned upon the faithful performance of work associated with the Permit in accordance with all applicable specifications and conditions. Such bond shall be solely for the protection of the Department and the State of Rhode Island.C. The bond submitted to the Department shall be provided by a surety both acceptable to the Department and licensed and authorized to conduct business in the State of Rhode Island.D. All surety companies must be listed with the Department of the Treasury, Fiscal Services, Circular 570, (Latest Revision published by the Federal Register or available at http://www.treas.gov).E. The Department may require an additional amount of bond in connection with work added to the Permit by changes, additions and modifications by directing the Permittee to increase the penal amount of the existing bond or to obtain an additional bond.F. If the costs of the proposed Alteration under the Physical Alteration Permit are less than $25,000, the Permittee may be required to give security by depositing assets or other performance guarantee in a form acceptable to the Department in the amount of one hundred percent (100%) of such costs. If the Permittee has deposited assets instead of furnishing sureties for any bond required under the Permit and the assets are in the form of checks, currency, or drafts, the Department will hold the assets in an account for the Permittee's benefit. Upon completion of the work associated with the Permit, the Permittee's funds from such assets will be returned as soon as possible, unless the Department determines that part or all of the funds are required to compensate the Department for costs it incurs as a result of the Permittee's delay, default or failure to perform. In such a case, the funds will be available to compensate the Department.290 R.I. Code R. 290-RICR-20-00-4.7
Amended effective 11/28/2018