§ 5-572. Qualifications of principal; bond requirements

   (a) Qualifications of principal. -- To qualify for financial assistance under this part the principal shall satisfy the Authority that the principal:

   (1) is of good moral character or is owned by individuals of good moral character;

   (2) as determined from creditors, employers, and other individuals who have personal knowledge, is an individual with a reputation for financial responsibility or is owned by individuals, a majority of whom have a reputation for financial responsibility;

   (3) is a resident of the State or the principal place of business of the applicant is in the State; and

   (4) is unable to obtain adequate bonding on reasonable terms through normal channels.

(b) Bond requirements. -- To qualify for financial assistance under this part the principal shall certify to the Authority, and the Authority shall be satisfied, that:

   (1) a bond is required to bid on a contract or to serve as prime contractor or subcontractor;

   (2) a bond cannot be obtained on reasonable terms and conditions without assistance from the Program; and

   (3) the principal will not subcontract more than 75% of the monetary value of the contract.

HISTORY: An. Code 1957, art. 83A, § 5-1037; 2008, ch. 306, § 2.