the State. This provision requires the approval of the
commissioner of Administration and only applies to contracts not
exceeding $5,000.
a. Under § 574.264 a State contract for a forestry development
project may have security submitted in lieu of bond including "a
certified check, a cashier's check, a postal, bank or express money
order, asignable bonds or notes of the United States, or an assignment
of a bank savings account or investment certificate or an irrevocable
bank letter of credit."
b. Minn. Stat. § 574.38 provides that whenever this chapter or
other law or home rule charter requires a performance bond from a
contractor doing a public work project of under $50,000 for a home
rule charter or statutory city, county, town, school district or other
local government authority, the contractor may be permitted to
provide, in lieu of the bond, an irrevocable bank letter of credit in
the same amount required for the bond and subject to the same
conditions as the bond.
C. Bond Approval
1. Under Minn. Stat. § 574.20, county bonds are generally approved
as to form and execution by the county attorney of the respective
county. The following items should be checked when approving a
bond:
a. Name of the entity or "principal" providing the bond.
b. Name of the insurance company or "surety" providing
the bond as insurance.
c. Name of the entity or county "obligee" to whom the
bond is given.
d. Amount of the bond.
e. Duration of the bond.
