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1 The Contractor and Surety,jointly and severally, bind undisputed amounts for which the Surety and Claimant
<br /> themselves, their heirs, executors, administrators, have reached agreement. If, however, the Surety fails
<br /> successors and assigns to the Owner to pay for labor, to discharge its obligations under Section 7.1 or Section
<br /> materials and equipment furnished for use in the 7.2, the Surety shall indemnify the Claimant for the
<br /> performance of the Construction Contract, which is reasonable attorney's fees the Claimant incurs
<br /> incorporated herein by reference, subject to the following thereafter to recover any sums found to be due and
<br /> terms. owing to the Claimant.
<br /> 2 if the Contractor promptly makes payment of all sums 8 The Surety's total obligation shall not exceed the amount
<br /> due to Claimants, and defends, indemnities and holds of this Bond,plus the amount of reasonable attorney's fees
<br /> harmless the Owner from claims,demands, liens or suits provided under Section 7.3, and the amount of this Bond
<br /> by any person or entity seeking payment for labor, shall be credited for any payments made In good faith by
<br /> materials or equipment furnished for use in the the Surety.
<br /> performance of the Construction Contract,then the Surety
<br /> and the Contractor shall have no obligation under this 9 Amounts owed by the Owner to the Contractor under the
<br /> Bond. Construction Contract shall be used for the performance of
<br /> 3 If there is no owner Default under the Construction the Construction Contract and to satisfy claims, if any,
<br /> Contract, the Surety's obligation to the Owner under this under any construction performance bond. By the
<br /> Bond shall arise after the Owner has promptly notified the Contractor furnishing and the Owner accepting this Bond,
<br /> Contractor and the Surety (at the address described In they agree that all funds earned by the Contractor in the
<br /> Section 13)of claims,demands,liens or suits against the performance of the Construction Contract are dedicated to
<br /> Owner or the Owner's property by any person or entity Bondy obligation the Owner's actor to use the under funds t is
<br /> seeking payment for labor, materials or equipment the completion of the work.
<br /> furnished for use in the performance of the Construction
<br /> Contract and tendered defense of such claims,demands, 10 The Surety shall not be liable to the Owner,Claimants
<br /> liens or suits to the Contractor and the Surety. or others for obligations of the Contractor that are unrelated
<br /> 4 When the Owner has satisfied the conditions in Section to the Construction Contract.The Owner shalt not be liable
<br /> for the payment of any costs or expenses of any Claimant
<br /> 3, the Surety shall promptly and at the Surety's expense under this Bond, and shall have under this Bond no
<br /> defend,indemnify and hold harmless the Owner against a obligation to make payments to,or give notice on behalf of,
<br /> duly tendered claim,demand,lien or suit. Claimants or otherwise have any obligations to Claimants
<br /> 5 The Surety's obligations to a Claimant under this Bond under this Bond.
<br /> shall arise after the following: 11 The Surety hereby waives notice of any change,
<br /> 5.1 Claimants,who do not have a direct contract with including changes of time, to the Construction Contract or
<br /> the Contractor, to related subcontracts, purchase orders and other
<br /> .1 have furnished a written notice of obligations.
<br /> non-payment to the Contractor, stating with 12 No suit or action shall be commenced by a Claimant
<br /> substantial accuracy the amount claimed and under this Bond other than in a court of competent
<br /> the name of the party to whom the materials jurisdiction in the state in which the project that is the
<br /> were,or equipment was,furnished or supplied subject of the Construction Contract is located or after the
<br /> or for whom the labor was done or performed, expiration of one year from the date (1) on which the
<br /> within ninety (90) days after having last Claimant sent a Claim to the Surety pursuant to Section
<br /> performed labor or last furnished materials or 5,1,2 or 5.2,or(2)on which the last labor or service was
<br /> equipment included in the Claim;and performed by anyone or the last materials or equipment
<br /> .2 have sent a Claim to the Surety (at the were furnished by anyone under the Construction Contract,
<br /> address described in Section 13). whichever of(1)or(2)first occurs. If the provisions of this
<br /> 5.2 Claimants,who are employed by or have a direct Paragraph are void or prohibited by law, the minimum
<br /> contract with the Contractor, have sent a Claim to the period of limitation available to sureties as a defense in the
<br /> Surety(at the address described in Section 13). jurisdiction of the suit shall be applicable.
<br /> 6 if a notice of non-payment required by Section 5.1.1 is 13 Notice and Claims to the Surety, the Owner or the
<br /> given by the Owner to the Contractor, that is sufficient to Contractor shall be mailed or delivered to the address
<br /> satisfy a Claimant's obligation to furnish a written notice of shown on the page on which their signature appears.
<br /> non-payment under Section 5.1.1. Actual receipt of notice or Claims, however accomplished,
<br /> 7 When a Claimant has satisfied the conditions of shall be sufficient compliance as of the date received.
<br /> Sections 5.1 or 5.2, whichever is applicable, the Surety 14 When this Bond has been furnished to comply with a
<br /> shall promptly and at the Suretys expense take the statutory or other legal requirement in the location where
<br /> following actions: the construction was to be performed,any provision in this
<br /> 7.1 Send an answer to the Claimant,with a copy to the Bond conflicting with said statutory or legal requirement
<br /> Owner,within sixty(60)days after receipt of the Claim, shall be deemed deleted herefrom and provisions
<br /> stating the amounts that are undisputed and the basis conforming to such statutory or other legal requirement
<br /> for challenging any amounts that are disputed;and shall be deemed incorporated herein. When so furnished,
<br /> 7.2 Pa or arrange for payment of an undisputed the intent is that this Bond shall be construed as a statutory
<br /> Pay p y y p bond and not as a common law bond.
<br /> amounts.
<br /> 7.3 The Surety's failure to discharge Its obligations 15 Upon request by any person or entity appearing to be a
<br /> under Section 7.1 or Section 7.2 shall not be deemed to potential beneficiary of this Bond, the Contractor and
<br /> constitute a waiver of defenses the Surety or Contractor Owner shall promptly furnish a copy of this Bond or shall
<br /> may have or acquire as to a Claim, except as to permit a copy to be made.
<br /> The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312-2010 Edition
<br /> LAIC Pymt A312(10/10) 2
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