(a) A person having a claim against a person required to file a surety bond under AS 43.70.025 because of the failure to pay a liability described in AS 43.70.025(a) may bring suit upon the bond. A copy of the complaint shall be served by registered or certified mail on the commissioner at the time suit is filed, and the commissioner shall maintain a record, available for public inspection, of all suits commenced. This service on the commissioner shall constitute service on the surety, and the commissioner shall transmit the complaint or a copy of it to the surety within 72 hours after it is received. The surety on the bond is not liable in an aggregate amount in excess of that named in the bond, but if claims pending at any one time exceed the amount of the bond, the claims shall be satisfied from the bond in the following order:
(1) material, equipment, and supplies delivered in the state;
(2) labor, including employee benefits;
(3) taxes and other amounts due to the city and borough, in that order;
(4) repair of public facilities;
(5) taxes and other amounts due to the state.
(b) If a judgment is entered against a cash deposit, the commissioner, upon receipt of a certified copy of a final judgment, shall pay the judgment from the amount of the deposit in accordance with the priorities set out in (a) of this section.
(c) An action described in (a) of this section may not be commenced on the bond more than three years after the cancellation of the bond.
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