(a) Notwithstanding other law to the contrary, for contracts for the mowing of rights-of-way and litter collection, or either of them, bids may be accompanied by letters of credit in the amount of five percent (5%) of the bid, in lieu of proper bonds, to guarantee execution of the contract.
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Terms Used In Tennessee Code 54-5-138

  • Contract: A legal written agreement that becomes binding when signed.
  • Department: means the department of transportation. See Tennessee Code 54-5-103
(b) All contractors with whom contracts are made for the mowing of rights-of-way and litter collection, or either of them, may provide, in lieu of bonds, letters of credit guaranteeing the department alone the faithful discharge of the contract, and for no other reason.
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