S.D. Admin. R. 20:09:26:18

Current through Register Vol. 51, page 67, December 16, 2024

Section 20:09:26:18 - Payment and performance bonding - Letter of credit

An applicant shall ensure compliance with the requirements of the applicable political subdivision or Indian tribe for contractor bonding. If the political subdivision or Indian tribe does not have contractor bonding requirements, the contractor, before commencing any work, must furnish surety in an amount not less than the contract price to the applicant, for the faithful performance of the contract, with the additional obligation that the contractor promptly pay all persons supplying the contractor with labor or material in the prosecution of the work provided for in the contract.

In lieu of a payment and performance bond, the applicant may obtain a letter of credit in the amount of the housing infrastructure program funding. The letter of credit must:

(1) List the authority as the named beneficiary;

(2) Be irrevocable and unconditional: and

(3) Be issued by a federally insured financial institution.

S.D. Admin. R. 20:09:26:18

49 SDR 125, effective 7/3/2023; 51 SDR 012, effective 8/12/2024

General Authority: SDCL 11-15-6.

Law Implemented: SDCL 11-15-1 to 11-15-5, inclusive.