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<br />1 The Contractor and the Surety. jointly and severally,
<br />bind themselves, their heirs, executors, administrator,
<br />successors and assigns to the Owner to pay for labor,
<br />materials and equipment furnished for use in the
<br />performance of the Construction Contract, which is
<br />incorporated herein by reference.
<br />2 With respect to the Owner, this obligation shall be null
<br />and void if the Contractor.
<br />2.1 Promptly makes payment, directly or indirectly.
<br />for all sums due Claimants, and
<br />2.2 Defends, indemnities, and holds harmless the
<br />Owner from all claims, demands. liens or suits by any
<br />person or entity who furnished labor, materiais or
<br />equipment for use in the performance of the
<br />Construction Contract. provided the Owner has
<br />promptly notified the Contractor and the Surety (at
<br />the address described in Paragraph 12) of any
<br />claims, demands, liens or suits and tendered defense
<br />of such claims, demands, liens or suits to the
<br />Contractor and the Surety, and provided there is no
<br />Owner Default.
<br />
<br />3 With respect to Claimants, this obligation shall be null
<br />and void if the Contractor promptly makes payment,
<br />directly or indireclly. for all sums due.
<br />
<br />4 The Surety shall have no obligation to Claimants under
<br />this Bond until:
<br />
<br />4.1 Claimants who are employed by or have a direct
<br />contract with the Contractor have given notice to the
<br />Surety (at the address described in Paragraph 12)
<br />and sent a copy, or notice thereof, to the Owner,
<br />stating that a claim is being made under this Bond
<br />and, with substantial accuracy, the amount of the
<br />claim.
<br />
<br />4.2 Claimants who do not have a direct contract with
<br />the Contractor.
<br />.1 Have furnished written notice to the Contractor
<br />and sent a copy, or notice thereof, to the
<br />Owner, within gO days after having last per-
<br />formed labor or last furnished materials or
<br />equipment included in the claim stating, with
<br />substantial accuracy, the amount of the claim
<br />and the name of the party to whom the mater-
<br />ials were furnished or supplied or for whom
<br />the labor was done or performed; and
<br />
<br />.2 Have either received B rejection in whole or in
<br />part from the Contractor, or not received within
<br />30 days of furnishing the above notice any
<br />communication from the Contractor by which
<br />the Contractor has indicated the claim will be
<br />paid directly or indirectly: and
<br />
<br />.3 Not having been paid within the above 30 days.
<br />have sent a written notice to the Surety (at the
<br />address described in Paragraph 12) and sent
<br />a copy, or notice thereof. to the Owner. stating
<br />that a claim is being made under this Bond and
<br />enclosing a copy of the previous written notice
<br />furnished to the Contractor.
<br />
<br />5 If a notice required by Paragraph 4 is given by the
<br />Owner to the Contractor or to the Surety. that is sufficient
<br />compliance.
<br />
<br />6 When the Claimant has satisfied the conditions of
<br />Paragraph 4, the Surety shall promptly and at the Surety's
<br />expense take the following actions:
<br />
<br />6.1 Send an answer to the Claimant, with a copy to
<br />the Owner, within 45 days after receipt of the claim.
<br />stating the amounts that are undisputed and the
<br />basis for challenging any amounts that are disputed.
<br />
<br />6.2 Payor arrange for payment of any undisputed
<br />amounts.
<br />
<br />7 The Surety's total obligation shall not exceed the
<br />amount of this Bond, and the amount of this Bond shall be
<br />credited for any payments made in good faith by the
<br />Surety.
<br />
<br />8 Amounts owed by .the Owner to the Contractor under
<br />the Construction Contract shall be used for the
<br />performance of the Construction Contract and to satisfy
<br />claims, If any, under any Construction Performance Bond.
<br />By the Contractor furnishing and the Owner accepting this
<br />Bond, they agree that all funds earned by the Contractor
<br />in the performance of the Construction Contract are
<br />dedicated to satisfy obligations of the Contractor and the
<br />Surety under this Bond, subject to the Owne~s priority to
<br />use the funds for the completion of the work.
<br />
<br />9 The Surety shali not be liable to the Owner, Claimants
<br />or othelll for obligations of the Contractor that are
<br />unrelated to the Construction Contract. The Owner shali
<br />not be liable for payment of any costs or expenses of any
<br />Claimant under this Bond, and shall have under this Bond
<br />no obligations to make payments to, give notices on
<br />behalf of, or otherwise hava obligations to Ciaimants
<br />under this Bond.
<br />
<br />10 The Surety hereby waives notice of any change,
<br />including changes of time. to the Construction Contract or
<br />to related subcontracts, purchase orders and other
<br />obligations.
<br />
<br />11 No suit or action shall be commenced by a Claimant
<br />under this Bond other than in a court of competent juris-
<br />diction in the location in Which the work or part of the work
<br />is located or after the expiration of one year from the date
<br />(1) on which the Claimant gave the notice required by
<br />Subparagraph 4.1 or Clause 4.2.3, or (2) on which the
<br />iast labor or service was performed by anyone or the last
<br />materials or equipment were furnished by anyone under
<br />the Construction Contract, whichever of (1) or (2) first
<br />occurs. If the provisions of this Paragraph are void or
<br />prohibited by law, the minimum periOd of limitation
<br />available to sureties as a defense in the jurisdiction of the
<br />suit shall be applicable.
<br />
<br />12 Notice to the Surety, the Owner or the Contractor shall
<br />be mailed or delivered to the address shown on the
<br />signature page. Actual receipt of notice by Surety. the
<br />Owner or the Contractor, however accomplished. shall be
<br />sufficient compliance as of the date received at the
<br />address shown on the signature page.
<br />
<br />CON 0387 (OB/01)
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