§ 5-22-16-5 — Evidence of financial responsibility

Indiana § 5-22-16-5

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 22: PUBLIC PURCHASING
• Ch. 16: Qualifications and Duties of Offerors and Prospective

Text

(a) A purchasing agent may specify in a
solicitation that an offeror must provide evidence of financial
responsibility in order to be considered responsible. The evidence of
financial responsibility may be a bond, certified check, or other
evidence specified by the purchasing agent in the solicitation.
(b) An offeror must file evidence of financial responsibility in the
amount, at the time, and as specified by the purchasing agent in the
solicitation.
(c) If a bond or certified check is required as the evidence of
financial responsibility, the amount of the bond or certified check may
not be set at more than ten percent (10%) of the contract price. The
bond, certified check, or other evidence of financial responsibility shall
be made payable to the governmental body.
(d) This section does not preclude the use of a performance bond in
addition to the bid bond, certified check, or other evidence of financial
responsibility if the amount of the performance bond is stated in the
solicitation.
(e) The check of an unsuccessful offeror shall be returned to the
offeror by the purchasing agent upon selection of successful offerors.
The check of a successful offeror shall be held until delivery or until
completion of the contract.

Legislative History

As added by P.L.49-1997, SEC.1.