CHAPTER 299

FORMERLY

HOUSE BILL NO. 238

AS AMENDED BY SENATE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 69, TITLE 29 OF THE DELAWARE CODE BY PERMITTING LETTERS OF CREDIT OR OTHER SECURITY TO BE POSTED AS SURETY FOR THE PERFORMANCE OF CERTAIN TYPES OF CONTRACTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Section 6909, Chapter 69, Title 29, of the Delaware Code by adding a new subsection (h) to read as follows:

"(h) Contracts for the purchase of materials, equipment and maintenance valued at less than $50,000 and Identified In the specifications by the State or the contracting county, may contain a waiver of the bond requirement, provided, however, that the successful bidder post with the State or contracting county an Irrevocable letter of credit or other suitable or readily collectable financial security for the project. Such letter of credit or other suitable or readily collectable security shall be Issued for a term commencing simultaneously with the execution of the formal contract and terminating no later than three (3) years, subsequent to the date of delivery of such material, equipment or maintenance provided, or to the extent of the warranty period, whichever fs greater; but In no event shall such security expire without the express written approval of the State or the contracting county. On a contract for the purchase of material, the State or contracting county may, at its discretion, reduce or waive the bond or other form of security, provided such reduction or waiver is stated in the bid specifications. In the case of a purchase of one large piece of equipment estimated by the State or the contracting county to be valued at less than $100,000, the provisions of this subsection shall apply."

Approved June 30, 1988.