Indiana § 4-30-8-5 Bond or letter of credit

Indiana Statutes

§ 4-30-8-5 — Bond or letter of credit

Indiana·Art. 30 INDIANA STATE LOTTERY·Ch. 8 Vendors; Disclosure and Contract Requirements

Each vendor in a major procurement must, at the
time of executing the contract with the commission, post an appropriate
bond or a letter of credit with the commission in an amount equal to the
full amount estimated to be paid annually to the vendor under contract.
However, the commission may, by a majority vote of all the members
of the commission, adopt a resolution expressly permitting the director
to decrease the bond or letter of credit requirement for a procurement,
if the director determines that the decrease will result in a cost savings
to the commission while still providing adequate protection against
nonperformance. In lieu of a bond or letter of credit, a vendor may, to
assure the faithful performance of its obligations, deposit and maintain
with the commission securities that 

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Each vendor in a major procurement must, at the
time of executing the contract with the commission, post an appropriate
bond or a letter of credit with the commission in an amount equal to the
full amount estimated to be paid annually to the vendor under contract.
However, the commission may, by a majority vote of all the members
of the commission, adopt a resolution expressly permitting the director
to decrease the bond or letter of credit requirement for a procurement,
if the director determines that the decrease will result in a cost savings
to the commission while still providing adequate protection against
nonperformance. In lieu of a bond or letter of credit, a vendor may, to
assure the faithful performance of its obligations, deposit and maintain
with the commission securities that are interest bearing or accruing and
that, with the exception of those specified in subdivision (1) or (2), are
rated in one (1) of the four (4) highest classifications by an established
nationally recognized investment rating service. Securities eligible
under this section are limited to the following:
(1) Certificates of deposit issued by solvent banks or savings
associations organized and existing under Indiana law or under
the laws of the United States and having their principal place of
business in Indiana.
(2) United States bonds and bills for which the full faith and
credit of the government of the United States is pledged for the
payment of principal and interest.
(3) General obligation bonds and notes of any political
subdivision of the state.
(4) Corporate bonds of a corporation that is not an affiliate or
subsidiary of the depositor.
Securities shall be held in trust and must have at all times a market
value at least equal to the full amount estimated to be paid annually to
the vendor under contract.