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2018 Georgia Code 36-91-40 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 36-91-40 Case Law from Google Scholar Amendments to OCGA 36-91-40

TITLE 36 LOCAL GOVERNMENT

Chapter 91 information not found

ARTICLE 3 BONDS

36-91-40. Approval and filing of bonds with treasurer.

    1. Any bid bond, performance bond, payment bond, or security deposit required for a public works construction contract shall be approved and filed with the treasurer or the person performing the duties usually performed by a treasurer of the obligee named therein. At the option of the governmental entity, if the surety named in the bond is other than a surety company authorized by law to do business in this state pursuant to a current certificate of authority to transact surety business by the Commissioner of Insurance, such bond shall not be approved and filed unless such surety is on the United States Department of Treasury's list of approved bond sureties.
    2. Any bid bond, performance bond, or payment bond required by this Code section shall be approved as to form and as to the solvency of the surety by an officer of the governmental entity negotiating the contract on behalf of the governmental entity. In the case of a bid bond, such approval shall be obtained prior to acceptance of the bid or proposal. In the case of payment bonds and performance bonds, such approval shall be obtained prior to the execution of the contract.
  2. Whenever, in the judgment of the obligee:
    1. Any surety on a bid, performance, or payment bond has become insolvent;
    2. Any corporate surety is no longer certified or approved by the Commissioner of Insurance to do business in the state; or
    3. For any cause there are no longer proper or sufficient sureties on any or all of the bonds,

      the obligee may require the contractor to strengthen any or all of the bonds or to furnish a new or additional bond or bonds within ten days. Thereupon, if so ordered by the obligee, all work on the contract shall cease unless such new or additional bond or bonds are furnished. If such bond or bonds are not furnished within such time, the obligee may terminate the contract and complete the same as the agent of and at the expense of the contractor and his or her sureties.

(Code 1981, §36-91-40, enacted by Ga. L. 2000, p. 498, § 1; Ga. L. 2001, p. 820, § 12.)

JUDICIAL DECISIONS

Approval of payment bonds.

- When the general contractor failed to pay the subcontractor for the subcontractor's work on a city project and the surety was insolvent, and the subcontractor sued the general contractor and the city for its work, the trial court properly granted summary judgment in favor of the city because the city complied with the payment bond requirements, and the subcontractor was limited to the exclusive remedy set forth in Georgia's payment bond statutes, O.C.G.A. §§ 36-91-90 and36-91-91. J. Squared Plumbing Company, Inc. v. City of Atlanta, 337 Ga. App. 229, 786 S.E.2d 894 (2016).

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