(a) The Authority may execute and perform a bid bond, performance bond, and payment bond as a surety for the benefit of a principal in connection with a
contract financed by the federal government or a state government, a local government, a private entity, or a utility regulated by the Public Service Commission.
(b) (1) This subsection does not apply if the sources of funding for the bonds are grants.
(2) The bonds may not exceed $2,500,000 each.
(c) Bonds are subject to the approval of the Authority based on the bond worthiness of the principal.