1997 Regular Session
To: Business and Financial Institutions
By: Senator(s) Hewes
Senate Bill 2977
AN ACT TO PROVIDE THAT GENERAL CONTRACTORS WHO REQUIRE A SUBCONTRACTOR TO POST A PERFORMANCE BOND SHALL FURNISH TO THE OWNER A PAYMENT BOND, CONDITIONED FOR THE PROMPT PAYMENT OF ALL PERSONS SUPPLYING LABOR OR MATERIAL USED IN THE PROSECUTION OF THE WORK UNDER SUCH CONTRACT, FOR THE USE OF SUCH PERSON, IN AN AMOUNT NOT LESS THAN THE AMOUNT OF THE CONTRACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Any general contractor who enters into a contract with an owner for the construction, alteration, or repair of a public or private building, or public or private work, and who requires a subcontractor to post a performance bond payable to him for such construction, alteration or repair shall furnish to the owner a payment bond payable to such owner, but conditioned for the prompt payment of all persons supplying labor or material used in the prosecution of the work under such contract, for the use of such person, in an amount not less than the amount of the contract.
SECTION 2. This act shall take effect and be in force from and after July 1, 1997.