Minnesota Session Laws - 1989, Regular Session

  

                         Laws of Minnesota 1989 

                         CHAPTER 50-S.F.No. 192 
           An act relating to natural resources; increasing 
          certain limits on security in lieu of bond for 
          forestry development projects; amending Minnesota 
          Statutes 1988, section 574.264, subdivision 1. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1988, section 574.264, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FOREST DEVELOPMENT PROJECTS.] For a state 
contract for a forestry development project if the amount of the 
contract is not more than $20,000, the person required to file 
the bond or bid deposit may deposit in a local designated state 
depository or with the state treasurer a certified check, a 
cashier's check, a postal, bank, or express money order, 
assignable bonds or notes of the United States, or an assignment 
of a bank savings account or investment certificate or an 
irrevocable bank letter of credit, in the same amount that would 
be required for a bond or bid deposit.  If securities listed in 
this section are deposited, their value shall not be less than 
the amount required for the bond or bid deposit and the person 
required to file the performance bond or bid deposit shall 
submit an agreement authorizing the commissioner to sell or 
otherwise take possession of the securities in the event of 
default under the contract.  The security deposits are for the 
protection of the state and for the performance and completion 
of the contract in accordance with its terms and as security for 
all costs and charges that may accrue for the doing of the work 
specified and compliance with the laws relating to it. 
     Sec. 2.  [EFFECTIVE DATE.] 
     This act is effective the day following final enactment. 
    Presented to the governor April 21, 1989 
    Signed by the governor April 24, 1989, 9:45 p.m.