State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-472_108

§ 143B‑472.108.  Bondingassistance conditions.

(a)        Requirements. – Toobtain bonding assistance under this Part, an applicant must meet theeligibility requirements of G.S. 143B‑472.78 and must demonstrate to thesatisfaction of the Authority that all of the following apply:

(1)        A bond is requiredin order to bid on a contract or to serve as a prime contractor orsubcontractor.

(2)        A bond is notobtainable on reasonable terms and conditions without assistance under thisPart.

(3)        The applicant willnot subcontract more than seventy‑five percent (75%) of the face value ofthe contract.

(b)        Default. – If anapplicant or a person that is a related party with respect to the applicant hasever defaulted on a bond or guaranty provided by the Authority, the Authoritymay approve a guaranty or bond under this Part only if one of the followingapplies:

(1)        Five years haveelapsed since the time of the default.

(2)        Every default by theapplicant or related party in any program administered by the Authority hasbeen cured.

(c)        Economic Effect. – Beforeissuing a guaranty or bond, the Authority must determine that the contract forwhich a bond is sought to be guaranteed or issued has a substantial economiceffect. To determine the economic effect of a contract, the Authority mustconsider all of the following:

(1)        The amount of theguaranty obligation.

(2)        The terms of thebond to be guaranteed.

(3)        The number of newjobs that will be created by the contract to be bonded.

(4)        Any other factorthat the Authority considers relevant. (2007‑441, s. 1.)