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<br />~ 1 The Contractor and the Surety, jointly and severally bind themselves, their heirs, executors, administrators,
<br />successors and assigns to the Owner to pay for labor, materials and equipment furnished for use in the performance
<br />of the Construction Contract, which is incorporated herein by reference.
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<br />~2 With respect to the Owner, this obligation shall be null and void if the Contractor:
<br />~2.1 Promptly makes payment, directly or indirectly, for all sums due Claimants, and
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<br />~2.2 Defends, indemnifies and holds harmless the Owner from claims, demands, liens or suits by any person or
<br />entity whose claim, demand, lien or suit is for the payment for labor, materials or equipment furnished for use in the
<br />performance of the Construction Contract, provided the Owner has promptly notified the Contractor and the Surety
<br />(at the address describeditl Section 12) of any claims, demands, liens or suits and tendered defense of such claims,
<br />demands, liens or suits10 the Contractor and the Surety, and provided there is no Owner Default.
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<br />~3 With respect to Claimants, this obligation shall be null and void if the Contractor promptly makes payment,
<br />dit:ectly or indirectly; for,iallsums due,
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<br />~:4 The Surety shallliave
<br />~:4. tClaimants whoare:e
<br />(at the address described in
<br />made under this Bond and,
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<br />ligation to Claimants under this Bond until:
<br />ed by or have a direct contract with the Contractor have given notice to the Surety
<br />. on 12) and sent a copy, or notice thereof, to the Owner, stating that a claim is being
<br />substantial accuracy, the amount of the claim,
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<br />~4;2Claitnants whoctb note a direct contract with the Contractor:
<br />.1 Have:furnis itten notice to the Contractor and sent a copy, or notice thereof, to the Owner,
<br />within 90 after having last performed labor or last furnished materials or equipment included in
<br />the claims g, with substantial accuracy, the amount of the claim and the name ofthe party to
<br />whom the 'als were furnished or supplied or for whom the labor was done or performed; and
<br />.2 Have either ed a rejection in whole or in part from the Contractor, or not received within 30
<br />days of g the above notice any communication from the Contractor by which the Contractor
<br />has indicated-the claim will be paid directly or indirectly; and
<br />.3 Nothavingbeen paid within the above 30 days, have sent a written notice to the Surety (at the
<br />address de d in Section 12) and sent a copy, or notice thereof, to the Owner, stating that a claim
<br />is being ma under this Bond and enclosing a copy of the previous written notice furnished to the
<br />Contractor;
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<br />~5 Ifanotice required py Sectiofi4 is given by the Owner to the Contractor or to the Surety, that is sufficient
<br />compliance,
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<br />,~ 6 When the Claimant hassatistied tl1~conditions of Section 4, the Surety shall promptly and at the Surety's
<br />expense takethe following actions:
<br />~6.1Send an answer to the Claimant, with a copy to the Owner, within 45 days after receipt of the claim, stating the
<br />amounts that are undisp:utedand the basis for challenging any amounts that are disputed,
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<br />~ 6.2 Pay or arrange forpaymeIltof any undisputed amounts,
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<br />~ 7 The Surety's total obligation shall not exceed the amount of this Bond, and the amount of this Bond shall be
<br />credited for any payments made in good faith by the Surety,
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<br />~ 8 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the
<br />performance of the Construction Contract and to satisfy claims, if any, under any Construction Performance Bond,
<br />By theContrliCtor furnishing and the Owner accepting this Bond, they agree that all funds earned by the Contractor
<br />inthe performance of the Construction Contract are dedicated to satisfy obligations of the Contractor and the Surety
<br />undetthisBond,subject to the Owner's priority to use the funds for the completion of the work.
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<br />~ 9 The Surety shall not be liable to the Owner, Claimants or others for obligations of the Contractor that are
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<br />unrelated to the Construction Contract. The Owner shall not be liable for payment of any costs or expenses of any
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<br />Claimant under this Bond, and shall have under this Bond no obligations to make payments to, give notices on
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<br />behalf of, or otherwise have obligations to Claimants under this Bond,
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<br />AlA Document A3121M -1984. Copyright <Cl1984 by The American Institute 01 Architects. All rights reserved. WARNING: This AlAe Document Is
<br />protected by U.S. Copyright Law and International Treatles, Unauthorized reproduction or distribution of this AJAe Document, or any portion of It, 6
<br />may result In severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under the law. This document was produced
<br />by AlA software at 12:53:31 on 06101/2005 under Order No.1000172893_1 which expires on 4/26/2006, and is not lor resale.
<br />User Notes: (3398270583)
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