574.264 SECURITY IN PLACE OF BOND.
Subdivision 1. Natural resource development projects.
In place of a performance or
payment bond or bid deposit for a state contract for a natural resource development project
less than $100,000, the person required to file the bond or bid deposit may deposit in a local
designated state depository or with the commissioner of finance 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 the 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 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 or nonpayment of any persons furnishing labor and materials under,
or to perform, the contract.
Subd. 2. Claims against securities in place of bid deposits.
Securities in place of payment
bonds are subject to claims as provided for other deposits in section
574.261, subdivision 2
History: 1985 c 112 s 4; 1989 c 50 s 1; 1994 c 419 s 6; 1999 c 231 s 190; 2000 c 495 s
49; 2003 c 112 art 2 s 50