1. Agencies of state government shall be required to waive the requirement of satisfaction, performance, surety, or bid bonds for targeted small businesses which are able to demonstrate the inability of securing such a bond because of a lack of experience, lack of net worth, or lack of capital. This waiver shall not apply to businesses with a record of repeated failure of substantial performance or material breach of contract in prior circumstances. The waiver shall be applied only to a project or individual transaction amounting to fifty thousand dollars or less, notwithstanding section 573.2. In order to qualify, the targeted small business shall provide written evidence to the economic development authority that the bond would otherwise be denied the business. The granting of the waiver shall in no way relieve the business from its contractual obligations and shall not preclude the state agency from pursuing any remedies under law upon default or breach of contract.

Terms Used In Iowa Code 12.44

  • Authority: means a department, or public or quasi-public instrumentality of the state including but not limited to the authority created under chapter 12E, 16, 257C, or 261A, which has the power to issue obligations, except that "authority" does not include the state board of regents or the Iowa finance authority to the extent the Iowa finance authority acts pursuant to chapter 260C. See Iowa Code 12.30
  • Contract: A legal written agreement that becomes binding when signed.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Obligations: means notes, bonds, including refunding bonds, and other evidences of indebtedness of an authority. See Iowa Code 12.30
  • state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
  • State agency: means a board, commission, bureau, division, office, department, or branch of state government. See Iowa Code 12.28
 2. The economic development authority shall certify targeted small businesses for eligibility and participation in this program and shall make this information available to other state agencies.
 3. Subdivisions of state government may also grant such a waiver under similar circumstances.
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