Sec.4d-3-5. Guaranty or surety

(a) When requested by the department and, if so, within 10 days after the execution date of a contract or the issuance of the contract award, a bidder or proposer shall deliver to the department a performance guaranty. A guaranty may be submitted in any one of the following forms, each in such amount as the CIO determines to be appropriate:

(1) annual bond or warranty bond;

(2) individual bond or warranty bond; or

(3) certified check made payable to "Treasurer, State of Connecticut.

(b) The department may require a performance surety binding the contractor faithfully to fulfill the obligations of the bid or proposal, as accepted. Such assurance in an amount up to 100 percent of each separate award may be submitted, at the department's request, in the form of a performance bond of a licensed surety company, certified check or irrevocable letter of credit from a commercial institution.

(c) Bonds shall meet the following requirements:

(1) Corporation. A duly authorized official of the corporation above his official title shall sign the bond and the corporate seal shall be affixed over his signature;

(2) Firm or Partnership. A duly authorized partner shall sign the bond in the name of the partnership;

(3) Individual. The individual owning the business, and indicating "Owner" shall sign the bond;

(4) The surety company executing the bond shall be licensed to do business in the state, or a company so licensed shall countersign the bond;

(5) An official of the surety company shall sign the bond and the corporate seal shall be affixed over his signature;

(6) Signature of two witnesses for both the principal and the surety shall appear on the bond; and

(7) A power of attorney for the official signing the bond for the surety company shall be submitted with the bond, unless such power of attorney has previously been filed with the department.

(Adopted effective August 9, 2004)