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1. Contractor and Surety,jointly and severally, bind themselves, their 8. Amounts owed by Owner to Contractor under the Contract shall be
<br /> heirs, executors, administrators, successors, and assigns to Owner to pay used for the performance of the Contract and to satisfy claims,if any,under
<br /> for labor,materials,and equipment furnished by Claimants for use in the any performance bond.By Contractor furnishing and Owner accepting this
<br /> performance of the Contract,which is incorporated herein by reference. Bond,they agree that all funds earned by Contractor in the performance of
<br /> the Contract are dedicated to satisfy obligations of Contractor and Surety
<br /> 2. With respect to Owner, this obligation shall be null and void if under this Bond, subject to Owner's priority to use the funds for the
<br /> Contractor: completion of the Work.
<br /> 2.1 Promptly makes payment,directly or indirectly,for all sums due 9. Surety shall not be liable to Owner, Claimants, or others for
<br /> Claimants,and obligations of Contractor that are unrelated to the Contract.Owner shall not
<br /> 2.2 Defends, indemnifies, and holds harmless Owner from all be liable for payment of any costs or expenses of any Claimant under this
<br /> claims, demands, liens, or suits alleging non-payment by Bond,and shall have under this Bond no obligations to make payments to,
<br /> Contractor by any person or entity who furnished labor, give notices on behalf of,or otherwise have obligations to Claimants under
<br /> materials, or equipment for use in the performance of the this Bond.
<br /> Contract,provided Owner has promptly notified Contractor and
<br /> Surety (at the addresses described in Paragraph 12) of any 10. Surety hereby waives notice of any change, including changes of
<br /> claims, demands, liens, or suits and tendered defense of such time,to the Contract or to related Subcontracts,purchase orders and other
<br /> claims, demands, liens, or suits to Contractor and Surety, and obligations.
<br /> provided there is no Owner Default.
<br /> 11. No suit or action shall be commenced by a Claimant under this Bond
<br /> 3. With respect to Claimants,this obligation shall be null and void if other than in a court of competent jurisdiction in the location in which the
<br /> Contractor promptly makes payment, directly or indirectly, for all sums Work or part of the Work is located or after the expiration of one year from
<br /> due. the date(1)on which the Claimant gave the notice required by Paragraph
<br /> 4.1 or Paragraph 4.2.3, or (2) on which the last labor or service was
<br /> 4. Surety shall have no obligation to Claimants under this Bond until: performed by anyone or the last materials or equipment were furnished by
<br /> 4.1 Claimants who are employed by or have a direct contract with anyone under the Construction Contract, whichever of (1) or (2) first
<br /> Contractor have given notice to Surety (at the addresses occurs.If the provisions of this paragraph are void or prohibited by law,the
<br /> described in Paragraph 12)and sent a copy,or notice thereof,to minimum period of limitation available to sureties as a defense in the
<br /> Owner,stating that a claim is being made under this Bond and, jurisdiction of the suit shall be applicable.
<br /> with substantial accuracy,the amount of the claim. 12. Notice to Surety,Owner,or Contractor shall be mailed or delivered to
<br /> 4.2 Claimants who do not have a direct contract with Contractor: the addresses shown on the signature page. Actual receipt of notice by
<br /> 1. Have furnished written notice to Contractor and sent a Surety, Owner, or Contractor, however accomplished, shall be sufficient
<br /> copy, or notice thereof, to Owner, within 90 days after compliance as of the date received at the address shown on the signature
<br /> having last performed labor or last furnished materials or page.
<br /> equipment included in the claim stating, with substantial
<br /> accuracy, the amount of the claim and the name of the 13. When this Bond has been furnished to comply with a statutory
<br /> party to whom the materials or equipment were furnished requirement in the location where the Contract was to be performed,any
<br /> or supplied,or for whom the labor was done or performed; provision in this Bond conflicting with said statutory requirement shall be
<br /> and deemed deleted herefrom and provisions conforming to such statutory
<br /> 2. Have either received a rejection in whole or in part from requirement shall be deemed incorporated herein. The intent is that this
<br /> Contractor, or not received within 30 days of furnishing Bond shall be construed as a statutory Bond and not as a common law
<br /> the above notice any communication from Contractor by bond.
<br /> which Contractor had indicated the claim will be paid
<br /> directly or indirectly;and 14. Upon request of any person or entity appearing to be a potential
<br /> 3. Not having been paid within the above 30 days,have sent beneficiary of this Bond,Contractor shall promptly furnish a copy of this
<br /> a written notice to Surety and sent a copy, or notice Bond or shall permit a copy to be made.
<br /> thereof,to Owner,stating that a claim is being made under 15. Definitions
<br /> this Bond and enclosing a copy of the previous written
<br /> notice fiunished to Contractor. 15.1 Claimant: An individual or entity having a direct contract with
<br /> Contractor, or with a first-tier subcontractor of Contractor, to
<br /> 5. If a notice by a Claimant required by Paragraph 4 is provided by furnish labor, materials, or equipment for use in the
<br /> Owner to Contractor or to Surety,that is sufficient compliance. performance of the Contract.The intent of this Bond shall be to
<br /> 6. When a Claimant has satisfied the conditions of Paragraph 4, the include without limitation in the terms "labor, materials or
<br /> Surety shall promptly and at Surety's expense take the following actions: equipment" that part of water, gas, power, light, heat, oil,
<br /> gasoline, telephone service, or rental equipment used in the
<br /> 6.1 Send an answer to that Claimant,with a copy to Owner,within Contract, architectural and engineering services required for
<br /> 45 days after receipt of the claim,stating the amounts that are performance of the Work of Contractor and Contractor's
<br /> undisputed and the basis for challenging any amounts that are Subcontractors,and all other items for which a mechanic's lien
<br /> disputed. may be asserted in the jurisdiction where the labor,materials,or
<br /> 6.2 Pay or arrange for payment of any undisputed amounts. equipment were furnished.
<br /> 15.2 Contract: The agreement between Owner and Contractor
<br /> 7. Surety's total obligation shall not exceed the amount of this Bond, identified on the signature page, including all Contract
<br /> and the amount of this Bond shall be credited for any payments made in Documents and changes thereto.
<br /> good faith by Surety. 15.3 Owner Default: Failure of Owner, which has neither been
<br /> remedied nor waived, to pay Contractor as required by the
<br /> Contract or to perform and complete or comply with the other
<br /> terms thereof.
<br /> FOR INFORMATION ONLY—Name,Address and Telephone
<br /> Surety Agency or Broker
<br /> Owner's Representative(engineer or other party)
<br /> Payment Bond
<br /> 006113-2
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