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§7 If the Surety elects to act under Section 5.1,5.2 or 5.31 then the responsibilities of the Surety to the Owner shall not be greater than those of the <br /> Contractor under the Construction Contract,and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner under the <br /> Construction Contract.Subject to the commitment by the Owner to pay the Balance of the Contract Price,the Surety is obligated,without <br /> duplication,for <br /> A the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; <br /> .2 additional legal,design professional and delay costs resulting from the Contractor's Default,and resulting from the actions or <br /> failure to act of the Surety under Section 5;and <br /> .3 liquidated damages,or if no liquidated damages are specified in the Construction Contract,actual damages caused by delayed <br /> performance or non-performance of the Contractor. <br /> §8 If the Surety elects to act under Section 5.1,5.3 or 5.4,the Surety's liability is limited to the amount of this Bond. <br /> §9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contract,and the <br /> Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations.No right of action shall accrue on this <br /> Bond to any person or entity other than the Owner or its heirs,executors,administrators,successors and assigns. <br /> §10 The Surety hereby waives notice of any change,including changes of time,to the Construction Contract or to related subcontracts,purchase <br /> orders and other obligations. <br /> §11 Any proceeding,legal or equitable,under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or <br /> part of the work is located and shall be instituted within two years after a declaration of Contractor Default or within two years after the Contractor <br /> ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond,whichever occurs first.If the <br /> provisions of this Paragraph are void or prohibited by law,the minimum period of limitation available to sureties as a defense in the jurisdiction of <br /> the suit shall be applicable. <br /> §12 Notice to the Surety,the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature <br /> appears. <br /> §13 When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the construction was to be <br /> performed,any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions <br /> conforming to such statutory or other legal requirement shall be deemed incorporated herein.When so furnished,the intent is that this Bond shall be <br /> construed as a statutory bond and not as a common law bond. <br /> §14 Definitions <br /> §14.1 Balance of the Contract Price.The total amount payable by the Owner to the Contractor under the Construction Contract after all proper <br /> adjustments have been made,including allowance to the Contractor of any amounts received or to be received by the Owner in settlement of <br /> insurance or other claims for damages to which the Contractor is entitled,reduced by all valid and proper payments made to or on behalf of the <br /> Contractor under the Construction Contract. <br /> §14.2 Construction Contract.The agreement between the Owner and Contractor identified on the cover page,including all Contract Documents <br /> and changes made to the agreement and the Contract Documents. <br /> §14.3 Contractor Default.Failure of the Contractor,which has not been remedied or waived,to perform or otherwise to comply with a material <br /> term of the Construction Contract. <br /> §14.4 Owner Default.Failure of the Owner,which has not been remedied or waived,to pay the Contractor as required under the Construction <br /> Contract or to perform and complete or comply with the other material terms of the Construction Contract. <br /> §14.5 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor. <br /> §15 If this Bond is issued for an agreement between a Contractor and subcontractor,the term Contractor in this Bond shall be deemed to be <br /> Subcontractor and the term Owner shall be deemed to be Contractor. <br /> 3 <br />