Montana Attorney General Opinion 15-27

Opinion No. 27 Highway Conh'actor's Bond-Surety Bond-Insolvent Surety, HELD: Under the facts, bonds to be required in lieu of bonds of insolvent surety companies must be in the full amount of the particular contract. January 14, 1933, You ha\'e submitted to this office the following question and ask for an opin- ion thereon:' "If a highway huilding eontractor's surety compan~' becomes insol\'ent before the eompletion of such eon tractor's construction ()bligations, but after a large portion of the work of such contraetor has been eompieted. shall the Highwu.,· Commission require a hond for the full amonnt of the con- traet or for snch amonnt as is necessary to protcet unfinished work '!" 'l'his proposition. in the judgment of this office, is fully eovered b~' Section 4 of Chapter 20, Laws of H)31. Tn saifl Chavter 20 you will note that a bond is required for ·the full amount of the con- tl'act exeept in certain instanees rela t- ing to municipalities whieh do not ap- ply to the proposition that rou have presented. Another provision that would bear on the situation is the fact that material men. laborers and others have a right of Hen which mar be exercised any time within fifteen dars after the com- pletion of the contract and as )'our Commission is not presumed to know just what rights of liens may he out- "tanding it would appeal' that the full amount of the bond would be necessary even though it may work a hardship on the bonding company's agent. In view of the foregoing it is the opinion of -this offiee that bowls to be required in lieu of bonds of insolyent snret~' companies would ha "C to he in the full amount of the particular eon, tract.