Common use of QUALIFICATION OF SURETY Clause in Contracts

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 Each bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 The surety company shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised (31 CFR Section 223.10, Section 223.11). Further, the surety company shall provide Village with evidence satisfactory to Village, that such excess risk has been protected in an acceptable manner. The Village will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by the Office of the Florida Insurance Commissioner, the Village shall review and either accept or reject the surety company based on the financial information available to the Village. A surety company that is rejected by the Village may be substituted by the Bidder or proposer with a surety company acceptable to the Village, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Financial Holder’s Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class VI 50,000,001 or more A Class VII 5.2. For projects of $500,000.00 or less, Village may accept a Bid Bond, Performance Bond and Payment Bond from a surety company which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Payment Bond.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, currently authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Financial Holder’s Ratings Amount of Bond holders Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class VI 50,000,001 or more A Class VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the RPP. If there are no more stringent requirements, the provisions of this section shall apply.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, currently authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Amount of Bond Financial Holder’s holders Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class ... IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class ... VI 50,000,001 or more A Class .. VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the RPP. If there are no more stringent requirements, the provisions of this section shall apply.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond Bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bondsBonds: Policy-Policy- Amount of Bond Financial Holder’s holders Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class ... III 5,000,001 to 10,000,000 A Class ... IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class ... VI 50,000,001 or more A Class .. VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the Bid. If there are no more stringent requirements, the provisions of this section shall apply.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Amount of Bond Financial Holder’s holders Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class ... III 5,000,001 to 10,000,000 A Class ...IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class ...VI 50,000,001 or more A Class ..VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the RPP. If there are no more stringent requirements, the provisions of this section shall apply.

QUALIFICATION OF SURETY. 5.1. ‌ Bid Bonds, Performance Bonds and Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Financial Holder’s Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class VI 50,000,001 or more A Class VII 5.2. For projects of $500,000.00 or less, Village may accept a Bid Bond, Performance Bond and Payment Bond from a surety company which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Payment Bond.VII

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, currently authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Financial Holder’s Amount of Bond holders Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class ... IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class ... VI 50,000,001 or more A Class .. VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the RPP. If there are no more stringent requirements, the provisions of this section shall apply.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 Each bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 The surety company shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised (31 CFR Section 223.10, Section 223.11). Further, the surety company shall provide Village with evidence satisfactory to Village, that such excess risk has been protected in an acceptable manner. . 5.1.3 The Village will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village shall review and either accept or reject the surety company based on the financial information available to the Village. A surety company that is rejected by the Village may be substituted by the Bidder or proposer with a surety company acceptable to the Village, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Financial Holder’s Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class VI 50,000,001 or more A Class VII 5.2. For projects of $500,000.00 or less, Village may accept a Bid Bond, Performance Bond and Payment Bond from a surety company which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Payment Bond.

QUALIFICATION OF SURETY. 5.1. Performance Bonds and Bid Bonds, Performance/ Payment Bonds over Five Hundred Thousand Dollars ($500,000.00): 5.1.1 ): Each bond must be executed by a surety company of recognized standing, authorized to do business in the State of Florida as surety, having a resident agent in the State of Florida and having been in business with a record of successful continuous operation for at least five (5) years. 5.1.2 . The surety company Surety shall hold a current certificate of authority as acceptable surety on federal bonds in accordance with United States Department of Treasury Circular 570, Current Revisions. If the amount of the Bond exceeds the underwriting limitation set forth in the circular, in order to qualify, the net retention of the surety company Surety shall not exceed the underwriting limitation in the circular, and the excess risks must be protected by coinsurance, reinsurance, or other methods in accordance with Treasury Circular 297, revised September 1, 1978 (31 CFR DFR Section 223.10, Section 223.11223.111). Further, the surety company Surety shall provide Village City with evidence satisfactory to VillageCity, that such excess risk has been protected in an acceptable manner. The Village City will accept a surety bond from a company with a rating of B+ or better for bonds up to $2 million, provided, however, that if any surety company appears on the watch list that is published quarterly by Intercom of the Office of the Florida Insurance Commissioner, the Village City shall review and either accept or reject the surety company based on the financial information available to the VillageCity. A surety company that is rejected by the Village City may be substituted by the Bidder or proposer with a surety company acceptable to the VillageCity, only if the bid amount does not increase. The following sets forth, in general, the acceptable parameters for bonds: Policy-Policy- Amount of Bond Financial Holder’s holders Ratings Size Category 500,001 to 1,000,000 B+ Class I 1,000,001 to 2,000,000 B+ Class II 2,000,001 to 5,000,000 A Class III 5,000,001 to 10,000,000 A Class ... IV 10,000,001 to 25,000,000 A Class V 25,000,001 to 50,000,000 A Class ... VI 50,000,001 or more A Class .. VII 5.2. For projects of $500,000.00 or less, Village City may accept a Bid Bond, Performance Bond and Payment Bond from a surety company Surety which has twice the minimum surplus and capital required by the Florida Insurance Code at the time the invitation to bid is issued, if the surety company Surety is otherwise in compliance with the provisions of the Florida Insurance Code, and if the surety company holds a currently valid certificate of authority issued by the United States Department of the Treasury under Section 9304 to 9308 of Title 31 of the United States Code, as may be amended from time to time. The A Certificate and Affidavit so certifying (Form 00722) should be submitted with the Bid Bond and also with the Performance Bond and Performance/Payment Bond. More stringent requirements of any grantor agency are set forth within the RPP. If there are no more stringent requirements, the provisions of this section shall apply.