S.D. Admin. R. 20:09:26:18

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:09:26:18 - Payment and performance bonding - Letter of credit

An applicant shall ensure compliance with the applicable political subdivision's requirements for contractor bonding. If the political subdivision does not have contractor bonding requirements, the contractor, before commencing any work, must furnish surety in an amount not less than the contract price to the applicant, for the faithful performance of the contract, with the additional obligation that the contractor promptly pay all persons supplying the contractor with labor or material in the prosecution of the work provided for in the contract.

In lieu of a payment and performance bond, the applicant may obtain a letter of credit in the amount of the housing infrastructure program funding. The letter of credit must:

(1) List the authority as the named beneficiary;

(2) Be irrevocable and unconditional: and

(3) Be issued by a federally insured financial institution.

S.D. Admin. R. 20:09:26:18

49 SDR 125, effective 7/3/2023

General Authority: SDCL 11-15-6.

Law Implemented: SDCL 11-15-1 to 11-15-5, inclusive.