§102-11 Security for performance; conditions.

284 words·~1 min read·/hi/chapter-102/102-11

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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:

(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. [L 1959, c 245, §9; Supp, §7B-9; HRS §102-11; am L 1982, c 141, §1; am L 2006, c 37, §2; am L 2018, c 18, §2]