A. To qualify for a surety bond guaranty pursuant to the program, a surety and principal shall meet the requirements of this section.
B. A surety shall meet the following requirements:
1. Be a company which writes bid, payment, defect or maintenance, or performance bonds in its normal course of business;
2. Has not refused to provide said bonds for which the principal is submitting application to the program; and
3. Has been licensed to do surety business in the State of Oklahoma prior to July 1, 1991.
C. The principal shall satisfy the Administrator that:
1. As determined from creditors, employers and other individuals who have personal knowledge of the principal, the principal has a reputation for financial responsibility;
2. The principal is a resident of this state;
3. The principal is unable to obtain adequate bonding on reasonable terms and conditions through normal channels and has been denied such bonding by two sureties that write contract bonds.
4. Bonding is required in order for the principal to bid on public construction contracts or to serve as a prime contractor or subcontractor on such contracts.
D. The surety and principal shall submit to the Administrator an application for each contract on the form that the Administrator provides. The application for each contract shall include:
1. A detailed description of the project for which the contract is to be let;
2. An itemization of known and estimated costs;
3. The total amount of investment required to perform the contract;
4. The funds available to the principal for working capital;
5. The amount of bonding assistance sought from the program;
6. Information that relates to the financial status of the principal, including:
7. A schedule of all existing and pending contracts and the current status of each; and
8. Any other relevant information that the Administrator requests.
E. After receipt of an application for assistance from the Oklahoma Small Business Surety Bond Guaranty Program, the Administrator may require that a principal shall provide an audited balance sheet before the Administrator makes a decision on the application.
Added by Laws 1990, c. 236, § 6, eff. July 1, 1991.