Before the letting of any contract on which bonds are required to be taken by the chief procurement officer, the sureties thereon shall, in all cases, at the time the bond is issued, be listed in the most recently published "Listing of Approved Sureties" of the U.S. Department of the Treasury, with underwriting limitations in excess of the contract price. If at any time the sureties, or any one of them, upon any such bond shall become insolvent, or shall in the opinion of the chief procurement officer be unsatisfactory, or unable to respond in damages in case of liability on such bond, the chief procurement officer shall notify the principal or principals on such bond, and direct that satisfactory sureties be provided forthwith. No payment shall be made on account of work done by such principal or principals until satisfactory sureties have been provided as directed. In case of the neglect, failure, or refusal of such principal or principals to provide satisfactory sureties when so directed within 10 days after such notification, the chief procurement officer may declare the contract of such principal or principals forfeited, but such forfeiture shall not release the principal or principals, or their sureties, from any liability which may have accrued prior to the date of the forfeiture.
(Prior code § 26-4; Amend Coun. J. 7-19-00, p. 38206, § 1)