If a court finds a surety acted in bad faith in the $($non$)$performance of its bond obligations, the surety:

may be liable on a payment or performance bond for actual damages only.

may be liable to the obligee or to the beneficiary on a payment bond for damages in excess of the penal sum of the bond.

is liable to the principal on a performance bond for damages in excess of the penal sum of the bond.

may be liable to the obligee on a payment bond for punitive damages.