OPINION OF THE COURT
O'BRIEN, J.
This appeal presents the issue of whether the surety on a labor and material bond issued pursuant to State Finance Law § 137 is required to pay for the cost of equipment which was rented by its principal for use on a public improvement project but thereafter was not returned to the supplier.
I
In October 1998 the Dormitory Authority—State of New York (hereinafter the DASNY) entered into a contract...
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