(A) DOD guarantees sureties participating in the EDGE bond guarantee program against a portion of their losses incurred and paid as a result of a principal's breach of the terms of a bid bond or final bond on any eligible contract. The director of DOD or his/her designee shall develop the EDGE bond guarantee program application and procedures. The surety must obtain DOD's approval through the application process below before a guaranteed bond can be issued.
(B) A surety who desires to participate in the EDGE bond guarantee program shall submit an application to the division of minority business affairs in DOD. The director of DOD or his/her designee shall review and approve or disapprove the application. If the application is approved, the director shall submit the application to the controlling board. If the application is approved by controlling board, the surety must enter into a participation agreement with the director in order to become a participating surety in the EDGE bond guarantee program.
(C) The participating surety may then submit EDGE bond guarantee program requests for guarantee to DOD. When submitting a bond guarantee program request for guarantee to DOD for a bond guarantee, the principal must certify that it meets the eligibility requirements set forth in section 123.152 of the Revised Code. The director of DOD or his/her designee shall review the EDGE bond guarantee program request for guarantee and make a determination whether to approve the request based on program fund availability and principal's eligibility and said determination shall be final.
(D) The director of DOD may guarantee up to ninety per cent of the loss incurred and paid by sureties on bonds guaranteed under division (A) of section 122.90 of the Revised Code. The total amount to be bonded (e.g. all bonds combined under the contract: performance, payment and bid bonds) shall not exceed $500,000 in face value at the time of the bond or bond's execution.
(E) Bid bonds and final bonds are eligible for a DOD bond guarantee if they are executed in connection with an eligible contract and the director of DOD or his/her designee has approved a request for guarantee submitted as proscribed.
(F) A bid bond guarantee expires one hundred twenty days after execution of the bid bond, unless the surety notifies DOD in writing before the one hundred twentieth day that a later expiration date is required. The notification must include the new expiration date which shall not extend beyond an additional one hundred twenty days.