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$ 'l The Contractor and Surcty, jointly and severally, bind thernselves, their heirs, atecutors, adminislrators, successo$ and assigns to thc Owncr to
<br />lay for labor, materials and equipment lumished for use in the performance ofthe Conskuotiodr ConBacf, vhich is incorporatcd herein by feference,
<br />subject to the lollowing terms,
<br />g 2 If the Contractorpromptly mukes puyment ofall sums duc to Clatnatts, and dofcnds, indemnifies and holds harnless the Owrer tom claLns,
<br />demands, liens orsuits by any penon orentlg seekingpaynrent forlabor, matcrials orequipment ftrnished for uso in the performance oflhe
<br />Construction Contract, thcn thc Surcty and thc Conhactor shall have no obligation under this tsond.
<br />$ 3 If there is no OrvnerDefault under the Construction Contract, thc Suray's obligation to the Owner uuder this Eond shall arise afferthe Owner
<br />has promptly notilicd thc Contractor and thc Surcty (at thc address described in Secdon 13) ofclaims, demands, Iiens or sults againsttho Owner or
<br />the bwner'sproporty by any person or entiry seoking payment for labor, materials or equipment ffrmished for use in the performance oflhe
<br />Constnrction Contract ard tcdffsd dofsise of such clalms, demands, liens or suits to the Contrctor atld tbe Surety.
<br />$ 4 When the Owner has satisfied the conditions in Section 3r lhe Surety shall promptly md at the Suretyrs expcnse dcfcnd indcm-ni$ aad hold
<br />hannless the Owncr against aduly tendercd claim, demand, Iien or suit.
<br />$ 5 The Surer/s obligations lo a Claimant uuderthis Bond sholl arise after the follorving:
<br />$ 5.1 Claimants, who do not have a direct conhact with the Contractor,
<br />.1 have fumished auritten notice ofnon-paymenf to tlre Con!:actor, statilgwith substantial occuraoy thc anount alaimed atrd the
<br />name olthe party to whom the materials were, or eguipmcnt was) fi$Eishcd or supplicd orforlvhod thc labolwas done or
<br />performe<i, within ninety (90) days aftcr haviag last performed labor or last firmlshed malcrials or equipnenl ldcluded ln the Claim;
<br />and.2 havs scnt a Claim to thc Surcty (at thc address described in Section 13).
<br />g 6.2 Claimants., who arc cmploycd by or havc a dircct contract with the Conhactor, have sent a Claim to the Surety (rt the address described in
<br />Seotion l3).
<br />g 5 Ifa notice oftron-paymenr required by Sectioa 5,1.1 is glven by the Owner to the €ontraetor, that is sufficient to satisfy a Cluimant's obligation
<br />to furnish a r*ritten notice ofnon-paymentunder Section 5.1'1.
<br />g 7 lVhen a Claimanthas satlsfied the couditions of Sections 5,1 or 5.2, whichever is applicablg the Surety shall promltty anrl at fte Swely's
<br />expense take the follorving actionsl
<br />$ 7.1 Send an answer to the Claimanl rvith a copy to the Orvner, within sirty (60) duys after receipt of thc Claim' striting lhc amounts that ars
<br />undisputed and tho basis for challenging any amounts that are disputed; and
<br />S 7.2 Pay or anange forpaymentof any mdisputed amounts.
<br />$ 7"3 The Suregts failure to discharge its obligotions uuder Ser,tion ?,I or Seetion 72 shall not bc dccrncd to constitute a lvoiver ofdefenses lhe
<br />Surrty or Contractof may have or acquire as to a Claim, except as to undisprrted urouns forwhich thc Surcty and Claimant have r€ached agrcefient,
<br />I4 however, the Surety iails to discharge its obligations uodcr Scction 7.1 or Scction 7,2, the Surety shalt tndennify the Claimant for the reasonable
<br />nttomey's f,ees thc Clainrant iucuts thereafter to rscover any sums fouad to he due and owing to the Claimant.
<br />$ 8. The $urely's tota! obligation shall not exceed the amount of ftis Bond, plus lhe amounl ofruasonable attomey's fees provitlcd undcr Scction ?3;
<br />and the amount of this Bond shal! be credi(ed for ony paymcnls made in good faitb by lhe Surety.
<br />$ I Amounts rirved by the Owner to the Conb:actor undcr lho Construction Contract shall be used for the performance of the CodsUuciion. C0trtract
<br />iod to satisfy claims,if any, uudcr any construction performance bond, By lhe Coutractor furnishing aod the Owner accepting this Bond, ihey agree
<br />that all firnds camcd by tho Cont'actor in the performance ofthe Construction Contract arc dedicated to satisff obligations oft!€ Corkartor and
<br />Surcty under lhis 3on4 subject to the Olvneds priority to use the funds for thc completion ofthe work.
<br />s-2149/AS 8/10
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