Security requirements before signing a contract

(a) Before any contract is entered into, the party with whom the contract is proposed to be made shall give security for the performance thereof as follows: (1) For a concession required to provide security under the contract in an amount less than four months' rental and other charges, if any: (A) A good and sufficient bond; (B) A deposit of legal tender; or (C) A certificate of deposit, share certificate, cashier's check, treasurer's check, teller's check, or official check drawn by, or a certified check accepted by, a bank, savings institution, or credit union insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration; and (2) For a concession required to provide security under the contract in an amount equal to or greater than four months' rental and other charges, if any: a good and sufficient bond. (b) All security provided under this section shall: (1) Be conditioned on the full and faithful performance of the contract in accordance with the terms and intent thereof; (2) Be in an amount not less than two months' rental and other charges, if any, required under the contract; provided that any contract for the sale and delivery of in-bond merchandise at the Daniel K. Inouye International Airport shall require a bond in an amount not less than four months of the highest minimum annual rental guaranty required under the contract; and (3) By its terms inure to the benefit of the State or of the county, as the case may be.