Source: https://www.revisor.mn.gov/statutes/?id=574&view=chapter&year=2007
Timestamp: 2016-07-29 04:06:31
Document Index: 709014231

Matched Legal Cases: ['art 1', 'art 5', 'art 2', 'art 5', 'art 5', 'art 5', 'art 1', 'art 2', 'art 2', 'art 2', 'art 1', 'art 1', 'art 1', 'art 2', 'art 11', 'art 5', 'art 2']

574 - 2007 Minnesota Statutes
Print 2007 Minnesota StatutesCompensatory and Collection RemediesChapter 574
2007 Table of Chapters2007 Statutes New, Amended or Repealed2007 Statutes Topics (Index)Chapter 574
CHAPTER 574. BONDS, FINES, FORFEITURESTable of SectionsSectionHeadnote574.01BONDS, REQUISITES AND EXECUTION.574.02Repealed, 1999 c 99 s 24574.03PAYMENT OF PREMIUM.574.04SURETY BONDS TO FEDERAL GOVERNMENT.574.05LIBERTY LOAN BONDS SECURITY.574.06DEPOSIT OF SECURITIES.574.07MARKET VALUE.574.08PROTECTION OF PLEDGE ON COMMENCING ACTION.574.09ADDITIONAL SECURITY.574.10NOTICE OF CLAIM.574.11RECEIVERS' BONDS TO RUN TO STATE.574.12MODES OF JUSTIFICATION.574.13STATE AND COUNTY OFFICERS; UNIFORM BOND.574.14BONDS EXECUTED UNDER OTHER PROVISIONS.574.15SURETY COMPANIES.574.16SURETY, SUBROGATION.574.17SURETIES FOR PART OF PENALTY.574.18UNDERTAKING IN LIEU OF BOND.574.19COST OF SURETY BONDS; PROPER EXPENSE ITEMS.574.20BONDS, BY WHOM APPROVED.574.205BONDS; STATE OFFICIALS AND EMPLOYEES EXCLUDED.574.21PLACE OF FILING BONDS.574.22COURT PROCEEDINGS.574.23EXAMINATION OF ACCOUNTS OF PUBLIC OFFICERS.574.24OFFICIAL BONDS, SECURITY TO WHOM; ACTIONS.574.25LEAVE TO BRING ACTION; ENDORSEMENT ON EXECUTION.574.26CONTRACTORS' BONDS FOR PUBLIC WORK.574.261SECURITY IN PLACE OF BOND.574.262SMALL BUSINESS.574.263NATURAL RESOURCE DEVELOPMENT PROJECTS.574.264SECURITY IN PLACE OF BOND.574.27BIDDERS TO HAVE RIGHT OF ACTION IN CERTAIN CASES.574.28APPROVAL AND FILING OF BOND.574.29FAILURE TO GET PAYMENT BOND.574.30INSOLVENT OR INSUFFICIENT SURETIES.574.31LIMIT OF TIME TO BRING ACTION.574.32APPLICATION OF PAYMENTS.574.33ACTIONS FOR FINES, FORFEITURES, AND PENALTIES; COLLUSION.574.34FINES, HOW DISPOSED OF.574.35PROSECUTION FOR FINES; COURT; COMMITMENT.574.36Renumbered 511.195
574.38LETTERS OF CREDIT.574.39SURETY BONDS; PUBLIC ENTITIES. 574.01 BONDS, REQUISITES AND EXECUTION.
History: (9677) RL s 4523
History: (9677-2) 1929 c 263 s 2; 1931 c 233 s 2; 2000 c 260 s 81
History: (9678) 1919 c 98 s 1; 1986 c 444
History: (9679) 1919 c 346 s 1
History: (9680) 1919 c 346 s 2
History: (9681) 1919 c 346 s 3
History: (9682) 1919 c 346 s 4; 1986 c 444
History: (9683) 1919 c 346 s 5
History: (9684) 1919 c 346 s 6; 1986 c 444
History: (9685) 1921 c 17 s 1; 1986 c 444
History: (9686) RL s 4524; 1907 c 311 s 1; 1986 c 444
Sealed with our seals and dated this ............ day of ..........., A.D. 19 .......
History: (9687) 1909 c 107 s 1; 1986 c 444
History: (9688) 1909 c 107 s 2
History: (9689) RL s 4525; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92
History: (9690) 1917 c 492 s 1
History: (9691) RL s 4526
History: (9692) RL s 4527; 1967 c 854 s 1; 1973 c 123 art 5 s 7; 1983 c 247 s 193; 1998 c 254 art 2 s 63
History: (9693) RL s 4528; 1933 c 311; 1973 c 123 art 5 s 7; 1986 c 444
History: (9694) RL s 4529; 1945 c 317 s 1; 1973 c 123 art 5 s 7; 1973 c 492 s 7; 1973 c 524 s 15; 1983 c 359 s 82; 1986 c 444; 1999 c 99 s 20
History: 1971 c 889 s 1
History: (9695) RL s 4530; 1973 c 123 art 5 s 7; 1974 c 138 s 1; 1976 c 181 s 2; 1Sp1986 c 3 art 1 s 82
History: (9696) RL s 4531
History: (9697) RL s 4532; 1986 c 444
History: (9698) RL s 4533; 1986 c 444
History: (9699) RL s 4534; 1986 c 444
Subdivision 1. Citation. (a) Sections 574.26 to 574.32 are the "public contractors' performance and payment bond act," within those sections referred to as "the act."
Subd. 1a. Exemptions: certain manufacturers; commissioner of transportation. (a) Sections 574.26 to 574.32 do not apply to a manufacturer of public transit buses that manufactures at least 100 public transit buses in a calendar year. For purposes of this section, "public transit bus" means a motor vehicle designed to transport people, with a design capacity for carrying more than 40 passengers, including the driver. The term "public transit bus" does not include a school bus, as defined in section 169.01, subdivision 6.
Subd. 2. Terms. Except as provided in sections 574.263 and 574.264 or if the amount of the contract is $75,000 or less, a contract with a public body for the doing of any public work is not valid unless the contractor gives (1) a performance bond to the public body with whom the contractor entered into the contract, for the use and benefit of the public body to complete the contract according to its terms, and conditioned on saving the public body harmless from all costs and charges that may accrue on account of completing the specified work, and (2) a payment bond for the use and benefit of all persons furnishing labor and materials engaged under, or to perform the contract, conditioned for the payment, as they become due, of all just claims for the labor and materials. Reasonable attorneys' fees, costs, and disbursements may be awarded in an action to enforce claims under the act if the action is successfully maintained or successfully appealed.
Subd. 3. Penalty. The penalty of each bond must not be less than the contract price, and if after the giving of the bond the contract price is increased, for any reason, the public body may require additional bonds, the penalties of which shall be not less than the amount of the increase, and if the additional bonds are not furnished within ten days after demand, the work on the contract shall cease until the additional bonds are furnished. In contracts made by the commissioner of administration or the Department of Transportation of the state, the commissioner of administration or the commissioner of transportation, respectively, may fix the amount of the bond penalty, but at not less than three-quarters of the contract price.
History: (9700) RL s 4535; 1909 c 429 s 1; 1923 c 373 s 1; 1929 c 369 s 1; 1931 c 229 s 1; 1975 c 377 s 39; 1976 c 166 s 7; 1985 c 112 s 2; 1986 c 327 s 5; 1986 c 444; 1994 c 419 s 1; 1995 c 54 s 28; 1995 c 200 s 1; 1998 c 403 s 25; 1Sp2001 c 10 art 2 s 83
Subdivision 1. Certified or cashier's check. With the approval of the commissioner of administration and if the amount of the contract is not more than $5,000 a person may make a contract with the state to do public work and in place of giving the bonds required by section 574.26, submit to the commissioner of administration for deposit with the commissioner of finance (1) a certified check or cashier's check in the same amount as is required for a performance bond as security to protect the state, and (2) a certified or cashier's check in the same amount as is required for a payment bond for all persons furnishing labor and materials under or to perform the contract. The deposits are security for the payment, as they become due, of all just claims for labor and materials and for the performance and completion of the contract according to its terms.
Subd. 1a. Letters of credit. Whenever Laws 1994, chapter 419, or other law or home rule charter requires a performance bond from a contractor doing a public work project of under $50,000 for a public body, the public body may permit the contractor to provide, in place of the performance bond, an irrevocable bank letter of credit in the same amount as required for the bond and subject to the same conditions as the bond.
Subd. 2. Claims. A person entitled to the protection of the deposit in place of a payment bond and wishing to take advantage of its benefits shall, no later than 120 days after the person's last contribution of labor and materials was furnished to the public work that is the subject of the contract, notify in writing the commissioner of administration and the commissioner of finance of the person's claim, giving the names of the parties involved and the amount and nature of the claim. If an action is commenced to obtain the benefit of the deposit in place of a payment bond, a judgment must not be entered within 30 days after giving the notice of the claim and the state or any person entitled to the protection of the deposit may be admitted on its motion as a party to the action and the court shall determine the rights of all parties in the premises. In such suit in which the commissioner of finance is a party, the court may order the commissioner to make payment among the parties to the suit entitled to payment. If the amount of the deposit is insufficient to pay the claims in full, the court may direct that they be paid on a prorated basis. The deposit in place of a payment bond made with the commissioner under this section shall be held by the commissioner for 120 days after the last item of labor and materials was furnished to the public work that is the subject of the contract. If a claim is not filed within the 120-day period, the deposit shall be returned to the person making it. If a claim is filed within the 120-day period, the deposit shall be disbursed by the commissioner of finance under an order of the court.
Subd. 3. Appropriation. Money deposited with the commissioner of finance under this section is annually appropriated to the commissioner of finance to carry out this section.
History: 1965 c 825 s 1; 1975 c 377 s 40; 1986 c 444; 1994 c 419 s 2; 2003 c 112 art 2 s 50
Subdivision 1. Bonds. To carry out the programs, established elsewhere by law, for awarding certain portions of state construction and procurement contracts and subcontracts to small businesses and small businesses owned by economically and socially disadvantaged persons, the commissioners of administration and transportation may, when deemed appropriate, arrange, through competitive bidding or negotiation, to partially indemnify bonding companies which provide bid, performance, and payment bonds covering all or any part of the construction and procurement contracts or subcontracts which are designated for award to small businesses and small businesses owned by economically and socially disadvantaged persons. The amount of the indemnity for all the bonds on each contract shall not exceed $100,000. Bonds which are subject to indemnity shall be provided to contractors at a cost which shall not exceed the cost of bid, performance, and payment bonds if purchased in the usual manner by other businesses for similar contract work or procurement.
Subd. 2. Participation limit. No small business or small business owned and operated by economically and socially disadvantaged persons shall be eligible for bonding pursuant to this section for a period of more than five years from the date that the small business or small business owned and operated by economically and socially disadvantaged persons received its first bond pursuant to this section.
Subd. 3.[Repealed, 1989 c 155 s 5]
Subd. 4. Encumbrance not applicable. Agreements of indemnity entered into pursuant to subdivision 1 shall not be subject to encumbrance requirements imposed by other provisions of law.
History: 1977 c 394 s 1; 1982 c 424 s 130; 1994 c 419 s 3
Subdivision 1. Definition. For the purposes of this section and section 574.264, "natural resource development project" includes site preparation by discing, shearing, rock raking or piling, patch scarification, or furrowing; prairie restoration; creation of wildlife openings and other wildlife habitat improvements; landscape clearing; tree planting; tree seeding; tree pruning; timber stand improvement by thinning or clearing existing forest trees by manual, mechanical, or chemical techniques; or construction, reconstruction, and maintenance of Department of Natural Resources trails, public accesses, water control structures, fish barriers, sewage treatment systems, roads, and bridges. Subd. 2. Contractor's bond. A contract with the state for a natural resource development project may require a performance bond at the discretion of the commissioner of natural resources. If the commissioner determines that a performance bond is required, it shall not be less than five percent of the contract price.
Subd. 3. Bid deposit in place of performance bond. For a contract made by the commissioner for a natural resource development project, the commissioner may require a bid deposit in place of a performance bond for charges that may accrue because of doing the specified work and to enforce the terms of the contract. The commissioner may set the amount of the bid deposit, but it may not be less than five percent of the contract price.
Subd. 4. Payment bond. A contract with the state for a natural resource development project may require a payment bond at the discretion of the commissioner of natural resources. If the commissioner determines that a payment bond is required, the commissioner also has the discretion to decide whether the bond may be in the form of securities in place of a bond as provided in section 574.264. If so, the securities cannot have less value than five percent of the contract price. History: 1985 c 112 s 3; 1994 c 419 s 4,5; 1999 c 231 s 189
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
History: (9701) 1923 c 348 s 1; 1986 c 444; 1994 c 419 s 7
History: (9702) RL s 4536; 1907 c 379; 1931 c 157; 1994 c 419 s 8; 1995 c 31 s 3
History: (9703) RL s 4537; 1986 c 444; 1994 c 419 s 9
History: (9704) RL s 4538; 1986 c 444; 1994 c 419 s 10; 1995 c 31 s 4
Subdivision 1. Claims on performance bonds. In the event of a claim by the public body on a performance bond, no action shall be maintained later than permitted under the statute of limitations applicable to the claim. Nothing in this subdivision may be construed to otherwise affect the common law or equitable rights of performance bond sureties, principals, or public bodies that are obligees.
Subd. 2. Claims on payment bonds. (a) In the event of a claim on a payment bond by a person furnishing labor and materials, no action shall be maintained on the payment bond unless, within 120 days after completion, delivery, or provision by the person of its last item of labor and materials, for the public work, the person serves written notice of claim under the payment bond personally or by certified mail upon the surety that issued the bond and the contractor on whose behalf the bond was issued at their addresses as stated in the bond specifying the nature and amount of the claim and the date the claimant furnished its last item of labor and materials for the public work. The addresses of the contractor and the surety listed on the bond must be addresses at which the companies are authorized to accept service of the notice of the claim. If an agent or attorney-in-fact is authorized to accept service of notice of the claim for the contractor or surety, that fact must be expressly stated in the bond along with the address of the agent or attorney-in-fact at which service of the notice of the claim can be made. For the purpose of this section, notice is sufficient if served personally or via certified mail to the addresses of the contractor and surety listed on the bond. The form of notice is sufficient if it is substantially as follows:
NOTICE IS HEREBY GIVEN that the undersigned claimant has a claim against the above named surety for labor and materials furnished by the undersigned for the public work described as follows: .....
The nature of the labor and materials furnished is as follows: .....
The amount of the claim is: .....
................................. being duly sworn on oath says that ...... is ......................... of the claimant named above and has knowledge of the claim and that the claim is correct, and no part of the claim has been paid.
Signed and sworn to before me on .....
History: (9705) RL s 4539; 1909 c 413 s 1; 1929 c 369 s 2; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92; 1986 c 444; 1994 c 419 s 11; 1995 c 31 s 5,6; 1998 c 254 art 1 s 107; 2001 c 52 s 1
History: (9705-1) 1929 c 369 s 3; 1971 c 293 s 1; 1973 c 241 s 1; 1978 c 674 s 60; 1979 c 2 s 1; 1983 c 289 s 114 subd 1; 1984 c 592 s 90; 1984 c 655 art 1 s 92; 1986 c 444; 1994 c 419 s 12
History: (9706) RL s 4540
Subdivision 1. General. Fines and forfeitures not specially granted or appropriated by law shall be paid into the treasury of the county where they are incurred, except in a county in a judicial district under section 480.181, subdivision 1, paragraph (b), the fines and forfeitures must be deposited in the state treasury and credited to the general fund. Subd. 2. Municipal prosecution; gross misdemeanors. If a city or municipal attorney prosecutes a gross misdemeanor offense, the proceeds of any fine collected by the court shall be disbursed in the same manner as though the offense was a misdemeanor prosecuted by the city or municipal attorney in district court. The county shall pay for any costs associated with incarceration.
History: (9707) RL s 4541; 1983 c 177 s 16; 1998 c 254 art 2 s 64; 1999 c 243 art 11 s 11; 1Sp2001 c 5 art 5 s 20
History: (9708) RL s 4542; 1983 c 359 s 83; 1986 c 444; 1998 c 254 art 2 s 65
History: 1989 c 132 s 1
History: 2001 c 76 s 1