(20 ILCS 3520/30)
Sec. 30. Requirements.
(a) To qualify for a surety bond guaranty under this Act, a principal must meet the requirements of this Section.
(b) The principal must satisfy the Department of each of the following:
(1) The principal is of good moral character; or if
the principal is not an individual, the principal is owned by individuals of good moral character.
(2) As determined from creditors, employers, and
other individuals who have personal knowledge of the principal, (i) that the principal has a reputation for financial responsibility or (ii) if the principal is not an individual, that a majority of the principal is owned by individuals with a reputation for financial responsibility.
(3) The principal is a resident of Illinois or has
its principal place of business in Illinois.
(4) The principal is unable to obtain adequate
bonding on reasonable terms through normal channels.
(5) The principal has a history of satisfactory
performance of contracts, or in the case of a new business, the principal has the knowledge and expertise reasonably necessary to assure performance of the contract.
(6) The financial condition and assets of the
principal are reasonably adequate to support the contract.
(7) The principal is a small business that has
assets, income, or employees that do not exceed limits established by the Department by regulation or administrative determination.
(c) The principal shall certify to the Department each of the following:
(1) A bond is required in order to bid on a contract
or to serve as a prime contractor or subcontractor.
(2) A bond is not obtainable on reasonable terms and
conditions without assistance under the Program.
(3) The principal will not subcontract more than 75%
of the dollar value of the contract.
(d) The Department may place a lien upon or otherwise encumber the principal's assets as collateral for the guaranty.
(Source: P.A. 88-407; 88-665, eff. 9-16-94.)
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Last modified: February 18, 2015