Bond.
Indianapolis-Marion County Revised Code § 875-415
in effectSec. 875-415. - Bond.
(a) Before a license is issued by the division of construction and business services to any person, partnership or corporation, the license administrator of the division shall require the applicant to file a surety bond in the amount of thirty thousand dollars ($30,000.00) in the case of a type A license, twenty thousand dollars ($20,000.00) in the case of a type B license and ten thousand dollars ($10,000.00) in the case of a type C license. Such a bond shall be maintained in full force and effect for the full period of the license. The bond shall set forth the name, phone number and address of the agent representing the bonding company and shall be:
(1) Issued by a surety authorized to do business in Indiana;
(2) Payable to the Consolidated City of Indianapolis or an unknown third party as obligee; and
(3) Conditioned upon:
a. Compliance with requirements set forth in this chapter that must be met to retain licensure;
b. Prompt payment of all fees owed the consolidated city as set forth in this chapter;
c. Prompt payment to the Consolidated City of Indianapolis for any loss or expense for damages to property of the Consolidated City of Indianapolis caused by any action of the contractor, his or her agents or employees, principals, subcontractors, materialmen or suppliers in violation of building standards and procedures while engaged in any wrecking or any related construction; and
d. Prompt payment to a person, partnership or corporation that is an unknown third party obligee for any:
1. Losses arising out of violation;
2. Expenses necessary to correct violations; and
3. Court costs and attorney fees allowed by the court incurred in connection with the commencement and prosecution of a court action to recover such losses and expenses for violations of building standards and procedures caused by any action of the contractor, his or her agents, employees, principals, subcontractors, materialmen or suppliers while engaged in wrecking or any related construction.
However, the surety is not responsible under the bond for losses or expenses arising out of negligent conduct or improper workmanship unless such conduct or workmanship violates requirements of building standards and procedures.
(b) The license administrator may accept in lieu of the surety bond a properly conditioned irrevocable letter of credit in the amount of thirty thousand dollars ($30,000.00) in the case of a type A license, twenty thousand dollars ($20,000.00) in the case of a type B license and ten thousand dollars ($10,000.00) in the case of a type C license if the controller approves the obligor financial institution as being financially responsible and if the corporation counsel approves the letter of credit as affording the same protections to the City of Indianapolis and an unknown third party as the protections afforded by the surety bond.
(c) The obligation of the surety and financial institution relative to this bond or letter of credit is limited to thirty thousand dollars ($30,000.00) in the case of a type A license, twenty thousand dollars ($20,000.00) in the case of a type B license and ten thousand dollars ($10,000.00) in the case of a type C license. A surety or financial institution may pay on the bond or disburse from the letter of credit to pay a claim in full at any time when that claim and pending claims (reflected by written notice to the surety or financial institution) together do not exceed the unpaid penalty of the bond or the undisbursed balance of the letter of credit. If written notice is received of claims that exceed the unpaid penalty of the bond or undisbursed balance of the letter of credit, the surety or financial institution shall pro-rate payment according to the amount of such claims.
(G.O. 95, 1994, § 1; G.O. 132, 1995, § 29; G.O. 3, 2002, § 65; G.O. 8, 2005, § 19; G.O. 63, 2009, § 133; G.O. 41, 2016, § 2)
Source: Consolidated City of Indianapolis and Marion County, Revised Code (Municode Library, library.municode.com)URL: https://library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances?nodeId=TITIVBUCORELI_CH875COSKTR_ARTIVLIREWRCO_S875-415BOFetched: 10/27/2026