§102-11  Security for performance;
conditions.  (a)  Before any contract is entered into, the party with whom
the contract is proposed to be made shall give security for the performance
thereof as follows:



(1)  For a concession required to provide security
under the contract in an amount less than four months' rental and other
charges, if any:



(A)  A good and sufficient bond;



(B)  A deposit of legal tender; or



(C)  A certificate of deposit, share
certificate, cashier's check, treasurer's check, teller's check, or official
check drawn by, or a certified check accepted by, a bank, savings institution,
or credit union insured by the Federal Deposit Insurance Corporation or the
National Credit Union Administration; and



(2)  For a concession required to provide security
under the contract in an amount equal to or greater than four months' rental
and other charges, if any:  a good and sufficient bond.



(b)  All security provided under this section
shall:



(1)  Be conditioned on the full and faithful
performance of the contract in accordance with the terms and intent thereof;



(2)  Be in an amount not less than two months' rental
and other charges, if any, required under the contract; provided that any
contract for the sale and delivery of in bond merchandise at Honolulu
International Airport shall require a bond in an amount not less than four
months of the highest minimum annual rental guaranty required under the
contract; and



(3)  By its terms inure to the benefit of the State or
of the county, as the case may be. [L 1959, c 245, §9; Supp, §7B-9; HRS
§102-11; am L 1982, c 141, §1; am L 2006, c 37, §2]