Legal Question in Construction Law in Florida
Surety demanded cash collateral
After issuing a bid bond, the surety demanded $240k in cash collateral before they would issue performance/payment bonds. The bid bond did not require this. I could not post this amount and my surety agent posted a cash LOC of $240k. The job was completed without incident. My surety agent had me sign a promissory note for their protection. The surety agent is now threatening to sue me for $58k in interest for posting the LOC. Going in to this the Agent advised the surety would release the LOC at 80% completion. This was accomplished in 9 months but the surety would not release the requirement. The LOC was in place for 1.5 years due to additional change orders. I would appreciate any advise.
1 Answer from Attorneys
Re: Surety demanded cash collateral
I would need to see your paperwork.
Good luck,
Randall Gilbert
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