S.D. Admin. R. 20:09:06:20.01 - Bonds and completion assurances

If the authority is providing first mortgage financing, the authority may require the applicant to provide evidence that the general contractor has provided a labor and materials payment bond with corporate surety in favor of the applicant and authority as obligees. This evidence must be provided by the time of the mortgage loan closing. The authority may require the applicant to provide a performance bond with corporate surety in favor of the applicant and the authority as obligees. The executive director shall establish the amount of the bonds required at a level determined to protect the authority from loss. An irrevocable, unconditional letter of credit from a federally insured financial institution may be substituted for up to 90 percent of the performance bond at the sole discretion of the authority. All corporate surety bonds must be issued by corporate sureties whose equity capital is acceptable to the executive director in view of the amount of surety bond being issued to the authority.

Notes

S.D. Admin. R. 20:09:06:20.01
6 SDR 98, effective April 6, 1980; 10 SDR 4, effective July 27, 1983; 12 SDR 151, 12 SDR 155, effective July 1, 1986; 22 SDR 64, effective November 12, 1995.

General Authority: SDCL 11-11-30, 11-11-128, 11-11-141, 11-11-143, 11-11-165, 11-11-168, 11-11-180.

Law Implemented: SDCL 11-11-155.

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