SURETY BOND

 

Surety bond by ____________________________ as principal, and as surety, a corporation incorporated under the laws of the State of ____________________ _________, and licensed to transact a surety business in the State of __________ _________________, to ________________________________, as obligee.

 

 

RECITALS:

 

A.    Principal and surety are bound to obligee in the sum of ___________________ ($___________), for the payment of which principal and surety jointly and severally bind themselves, their successors, assigns, and legal representatives.

 

B.    Principal and obligee have entered into a written contract for ________________ _____________ (hereinafter "contract") which was executed on ___________ (month & day), ___ (year), a copy of which is attached and incorporated by reference.

 

1.    DURATION:  This obligation shall run continuously and shall remain in full force

and effect until and unless the bond is terminated and canceled as provided herein

or as otherwise provided by law.

 

2.    CONDITION OF OBLIGATION:  If principal fully performs its obligation or

indemnifies obligee against any loss resulting from the breach of any part of the

original contract by principal, this obligation shall be void.

 

3.    NOTICE:  No liability shall attach to surety hereunder unless upon discovery of

any fact or circumstance indicating a possible claim hereunder, immediate written

notice thereof containing all details then known is given to surety at its principal

office at:  _________________________________________________________.

4.    TERMINATION:  Surety may terminate its obligation by giving written notice to

obligee, but such notice shall not affect any obligation which may have arisen prior

to the receipt of such notice by obligee.

 

5.    COMPLETION OF ORIGINAL CONTRACT / SUBROGATION:  In case of

default by principal, surety may assure and complete or procure completion of the

obligations of principal, and surety shall be subrogated and entitled to all the rights

and properties of principal arising out of the original contract.

 

6.    EXTENT OF LIABILITY:  The maximum amount of the liability of surety shall be no more than __________________________________ ($___________), together with the interest due thereon.

 

7.    MODIFICATION OF ORIGINAL CONTRACT:  Any modification in the

obligations of the original contract may be made without the consent or knowledge

of surety and without in any way releasing surety from liability under this bond.

 

8.    SEVERABILITY:  If any of the provisions of this bond are held to be illegal or

unenforceable by a court of competent jurisdiction, all other provisions shall remain

effective.

 

9.    BINDING EFFECT:  This bond shall be binding and inure on surety and its

successors, assigns, and legal representatives.

 

IN WITNESS WHEREOF, principal and surety have executed this bond on ______

_________ (month & day), ___ (year).

 

 

__________________________________                        ______________________

Principal                                                                                    Surety