17.86.116    SURETY BONDS

(1) An owner may satisfy the bonding requirements of this subchapter by submitting a surety bond that:

(a) is in an amount that does not exceed 10 percent of the surety's capital surplus account as shown on a balance sheet certified by a certified public accountant and submitted to the department;

(b) is in an amount that does not exceed three times the surety's maximum single obligation;

(c) is issued by a surety authorized by the Montana state auditor and listed in the United States Department of the Treasury Circular 570;

(d) has a power of attorney attached. The power of attorney must state that the surety has authorized the person issuing the bond to bind it to the bond's terms;

(e) provides a requirement and a mechanism for the surety to give prompt notice to the department and the owner of:

(i) any action alleging bankruptcy or insolvency of the surety or a violation that would result in suspension or revocation of the surety's authorization;

(ii) cancellation by the owner; and

(iii) cancellation or pending cancellation by the surety; and

(f) upon a written determination by the department that a surety is unable to comply with the terms of the bond, the owner is deemed to be without bond. The owner shall replace the bond within 90 days after the written determination is mailed by the department.


History: 75-26-310, MCA; IMP, 75-26-304, MCA; NEW, 2018 MAR p. 94, Eff. 1/13/18; AMD, 2020 MAR p. 957, Eff. 5/30/20.