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

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

(A)  A good and sufficient bond;

(B)  A deposit of legal tender; or

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

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

(b)  All security provided under this sectionshall:

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

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

(3)  By its terms inure to the benefit of the State orof 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]