Ohio Administrative Code › Title 122:15 - Minority Business Development Division › Chapter 122:15-1 - EDGE Bond Guarantee Program Requirements › Section 122:15-1-01 - EDGE bond guarantee program-definitions

Current through all regulations passed and filed through July 1, 2024
(A) "Bid bond" means a bond conditioned upon
			 the bidder on a contract entering into the contract, and furnishing the
			 required payment and performance bonds.
(B) "Contract" means a written obligation of
			 the principal requiring the furnishing of services, supplies, labor, materials,
			 machinery, equipment, or construction. A contract does not include a permit,
			 subdivision contract, lease, land contract, evidence of debt, financial
			 guarantee, warranty of performance or efficiency, warranty of fidelity, or
			 release of lien (other than for claims under a guaranteed bond). Contracts may
			 include a maintenance agreement of two years or less which covers defective
			 workmanship or materials only. With the development
			 service agency's written
			 approval, it can also include a longer maintenance agreement covering defective
			 workmanship or materials, or a maintenance agreement covering something other
			 than defective workmanship or materials. To qualify for such approval, the
			 agreement must be ancillary to the contract for which the development service agency
								 is guaranteeing a bond, must be
			 required to be performed by the same principal, and must be customarily
			 required in the relevant trade or industry.
(C)
								 "Final bond" means a performance bond and/or
			 payment bond.
(D)
								 "Loss" means:
(1) In the case of a bid bond, the lesser of
			 the penal sum or the amount which is the difference between the bonded bid and
			 the next higher responsive bid. In either case, the loss is reduced by any
			 amounts the surety recovers by reason of the principal's defenses against the
			 obligee's demand for performance by the principal and any sums the surety
			 recovers from indemnitors and other salvage; or
(2) In the case of a payment bond, the sum
			 necessary to pay all just and timely claims against the principal for the value
			 of labor, materials, equipment, and supplies furnished for use in the
			 performance of the bonded contract and other covered debts, or, at the surety's
			 option, the penal sum of the payment bond. In either case, the loss includes
			 interest (if any), but loss is reduced by any amounts recovered (through offset
			 or otherwise) by reason of the principal's claims against laborers,
			 subcontractors, suppliers, or other rightful claimants, and by any amounts
			 recovered from indemnitors and other salvage; or
(3) In the case of a performance bond, the
			 sum necessary to meet the cost of fulfilling the terms of a bonded contract or,
			 at the surety's option, the penal sum of the bond. In either case, the loss
			 includes interest (if any), but loss is reduced by any amounts recovered
			 (through the offset or otherwise) by reason of the principal's defenses or
			 causes of action against the obligee, and by any amounts recovered from
			 indemnitors and other salvage; or
(4) In addition, for each type of bond
			 described in paragraphs (F)(1) through (F)(3) of this rule, loss shall include
			 all reasonably and customary expenses incurred by the surety in adjusting
			 claims, in meeting bond obligations and in securing, or attempting to secure,
			 recoveries.