La. Admin. Code tit. 71, § III-2301 - General Provisions

Current through Register Vol. 48, No. 3, March 20, 2022

A. Bidders for general obligation bonds of the state must furnish a good faith deposit in the amount of 2 percent of the par value of the bonds (the deposit) offered for sale in the form of a certified check or cashier's check or by surety bond. If a check is used, it must accompany each sealed bid. For an electronic bid or a facsimile bid as authorized by the Electronic Bidding Rule, the check must be provided in advance of the submission of the bid. Such check must be drawn on a bank or trust company authorized to transact business in the state of Louisiana or in the state of New York , payable to or in favor of the State Treasurer of Louisiana on behalf of the state of Louisiana . Any surety bond must be from an insurance company licensed to issue such a bond in the state of Louisiana and such bond must be submitted to the state bond commission prior to the opening of the bids. The surety bond must identify each bidder whose deposit is guaranteed by such surety bond. If the bonds are awarded to a bidder utilizing a surety bond, then the successful bidder is required to submit its deposit to the state bond commission in the form of a certified check or cashier = s check drawn on a bank or trust company authorized to transact business in the state of Louisiana or in the state of New York, payable to or in favor of the State Treasurer of Louisiana on behalf of the state of Louisiana (or wire transfer such amount as instructed by the state bond commission) not later than 2 p.m. (Baton Rouge time) on the next business day following the award. If such good faith deposit is not received by that time, the surety bond will be drawn on by the state to satisfy the deposit requirement. No interest on the deposit will accrue to the successful bidder. The deposit will be applied to the purchase price of the bonds. In the event the successful bidder fails to honor its accepted bid, the deposit will be retained by the state. Delivery of the deposit is at the risk of the bidder.

Notes

La. Admin. Code tit. 71, § III-2301
Promulgated by the Department of Treasury, State Bond Commission, LR 26:1675 (August 2000), repromulgated LR 29:195 (February 2003).
AUTHORITY NOTE: Promulgated in accordance with R.S. 47:5010.

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