(a) Before any contract is entered into, the party with whom the contract is proposed to be made shall give security for the performance thereof as follows:

Terms Used In Hawaii Revised Statutes 102-11

  • concession: as used in this chapter means the grant to a person of the privilege to:

    (1) Conduct operations involving the sale of goods, wares, merchandise, or services to the general public including but not limited to food and beverage establishments, retail stores, motor vehicle rental operations under chapter 437D, advertising, and communications and telecommunication services, in or on buildings or land under the jurisdiction of any government agency;
    (2) Operate a parking lot on property owned or controlled by the State with the exception of buildings, facilities, and grounds operated by or otherwise under the jurisdiction of the department of education; and
    (3) Use, for compensation, space on public property to display advertising, or to conduct operations for communications or telecommunications purposes. See Hawaii Revised Statutes 102-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • county: includes the city and county of Honolulu. See Hawaii Revised Statutes 1-22
  • Legal tender: coins, dollar bills, or other currency issued by a government as official money. Source: U.S. Mint
  • National Credit Union Administration: The federal regulatory agency that charters and supervises federal credit unions. (NCUA also administers the National Credit Union Share Insurance Fund, which insures the deposits of federal credit unions.) Source: OCC
(1) For a concession required to provide security under the contract in an amount less than four months’ rental and other charges, if any:

(A) A good and sufficient bond;
(B) A deposit of legal tender; or
(C) A certificate of deposit, share certificate, cashier’s check, treasurer’s check, teller’s check, or official check drawn by, or a certified check accepted by, a bank, savings institution, or credit union insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; and
(2) For a concession required to provide security under the contract in an amount equal to or greater than four months’ rental and other charges, if any: a good and sufficient bond.
(b) All security provided under this section shall:

(1) Be conditioned on the full and faithful performance of the contract in accordance with the terms and intent thereof;
(2) Be in an amount not less than two months’ rental and other charges, if any, required under the contract; provided that any contract for the sale and delivery of in-bond merchandise at the Daniel K. Inouye International Airport shall require a bond in an amount not less than four months of the highest minimum annual rental guaranty required under the contract; and
(3) By its terms inure to the benefit of the State or of the county, as the case may be.
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