§ 12-71. Bond or letter of credit.

(a)

Unless prohibited by state law, every applicant for a license:

(1)

Registration pursuant to section 12-69; and

(2)

Pursuant to article VIII of chapter 10;

shall file with such registration or license application a surety bond that is valid and in force and effect in the sum of at least $25,000.00 and which complies with the provisions of this section.

(b)

At the option of the applicant, a letter of credit for at least $25,000.00 may be used in lieu of a bond. The letter of credit shall be irrevocable and unconditional, issued by a national or state bank with its main office located in the Minneapolis-St. Paul metropolitan area, and otherwise shall be on terms approved by the manager. The bond or letter of credit shall be conditioned that the applicant, as to all material and equipment furnished by the applicant, and as to all business carried on or all work done, commenced or performed by the applicant during the term of the license registration shall:

(1)

Strictly comply with this Code and state law;

(2)

Pay all permit fees required by this Code and state law and penalties imposed upon the applicant for violations of this Code and state law;

(3)

Save the city harmless from all actions or damages arising from the furnishing of such materials and equipment and the carrying on, doing, commencement or performance of such work or business; and

(4)

Reimburse the city for any expenses which it may incur in completing, reconstructing or repairing any faulty or incomplete work done or to be done by such applicant.

(Code 1970; Code 1992, § 165.03; Ord. No. 142, 12-2-1981; Ord. No. 142-A1, 4-25-1984; Ord. No. 2000-7, 7-5-2000)

State law reference

Plumbing bond and insurance, Minn. Stats. § 326B.46(2); electrician bond and insurance, Minn. Stats. § 326B.33(15), (16); residential trades bond and insurance, Minn. Stats. § 326B.801 et seq.