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6. After the OWNER Iha% terminined the CONTRACTOR'S right to nomplete the
<br /> Contract,and if the Surety elects to act under paragraph 4.!,4.2,or 4.3 above,then the
<br /> ,l. The CON'rRACrOR and the Surety,jointly and severally, bind ticineelves,their responsibilities of the Surety to the OWNER shall not be greater than those of the
<br /> heirs,executors,administrators,successors and assigns to the Owner tor the performance CONTRACTOR under the Contract,and the responsibilities of the OWNER to the
<br /> of the Contract,which is incorporated herein by reference. Surety shall not be greater than those of the OWNER under the Contract. To a limit of
<br /> the amount of this Bond,but subject to commitment by the OWNER of the Balance of
<br /> 2. If the CONTRACTOR performs the Comnui,the Surety and the CONTRACTOR have the Contract Price to mitigation of costs and damages on the Contract,the Surety is
<br /> no obligations under this Bond,except to participate in coaferences as provided in partigmph obligated without duplication for:
<br /> 3.1.
<br /> 6.I. The responsibilities of the CONTRACTOR for correction of defective
<br /> 3. If there is no OWNER Default,the Surety's obligation under this Bond shall arise after: Work and completion of the Contract;
<br /> 3 1. The OWNER has notified the CONTRACTOR and the Surety at the 6.2. Additional legal, design professional and delay costs resulting from the
<br /> addresses described in paragraph 10 below, that the OWNER is considering declaring a CONIRACTOR's Default,and reauking from the actions or failure to act of the Surety
<br /> CONTRACTOR Oehault and has requested and attempted to arrange a conference with under paragraph d;and
<br /> the CONTRACTOR and the Surely to be held not later than fifteen days after receipt
<br /> of such non=to discuss methods of perforating the Contact. ff the OWNER, the 63. Liquidated danarger, or if no liquidated damages are specified in the
<br /> CONTRACTOR and the Surety agree, the CONTRACTOR shall be allowed a Contract,actual damages caused by delayed performance or non-performance cf the
<br /> reasonable lime to perform the Contract,but such an agvec-merit shall not waive the CONTRACTOR.
<br /> OWNER's right.if any,subsequently to declare a CONTRACTOR Dcfauk: and
<br /> 3.2. 1 he OWNER has declared a CONTRACTOR Default and formally 7_ The Surety shall not be liable to the OWNER or others for obligations of the
<br /> terminated the CONTRACTOR'S right to complete the Contract. Such CONTRACTOR that are unrelated to the Contract,and the Balance Of the Contract
<br /> CONTRACTOR Default shall not be declared earlier than twenty days after the Price shall not be reduced or set off on account of any such unrelated obligations. No
<br /> CONTRACTOR and be Surety have received retie as provided in paragraph 3.1;and right of action shall accrue on this Bond to any person ar entity other than the OWNER
<br /> or its heirs,executors,administtalots,or successors.
<br /> 3 3. The OWNER has agreed to pay the Balance of the Contract Price to
<br /> 8. The Surety Iteteby waives notice of any change,including changes of time,to the
<br /> 3.3.1. The Surety in accordance with the tent's of the Contract: Contract or to related subcontracts,purchase orders and other obligations.
<br /> 3.3.2. Another contractor selected pursuant to parahaph 4.3 to 9. Any proceeding,legal or equitable-under this Bond may be instituted in any court
<br /> perform the Contract. or enrnpetens jurislhctinn in the location in which the Work or;.cart of the Work is
<br /> 4. `Aden the OWNER has satisfied the condition of paragraph 3, the Surety shall located and shall be instituted within two years after CONTRACTOR Default or willriu
<br /> l,nm,prly stet at etc Surety's expense take one of the following actions: two years after the CONTRACTOR ceased working or within two years after the
<br /> Surety refuses or Pails to perform its obligations under this Bond,whichever occurs f"rre&
<br /> 4.1. Arrange for the CONTRACTOR.with consent of the OWNER,to perifonn If the provisions of this paragraph are void or prohibited by law,the minimum period of
<br /> and complete the Contract;or limitation available to sureties at a defense in the jurisdiction of the suit shall be
<br /> applicable.
<br /> 4.2. tJudcitake rr. irelftnm hold cempl•re liar C■WCTCCI irxedr therm h its ageuls or
<br /> thtoughirtdepetrderttaontractors or 10. Notice to the Surety, the OWNER or the CONTRACTOR shall be mailed or
<br /> deliver:A to the address shown on the signature page.
<br /> 4.3. Obtain bids or negotiated proposals from qualified contractors acceptable to
<br /> the OWNER for a contract fur performance and completion of the Contract, arrange for h Y. When this Bond has been furnished to con-ply with. a statutory or other legal
<br /> a contract to be prepared for execution by the OWNER and Cats=tractor selected with re�`Qe nt rn the manor;where tine Connect was be performed,any provision in Ills
<br /> Bond conflicting with said statutory or legal:requirement shall be deemed deleted here
<br /> the Owner's concurrence, to be second with performance and payment bonds (tom and provisions conforming to such statutory or other legal requirement shalt be
<br /> executed by a qualified surety equivalent to the Bonds issued on the Contract,and pay deemed incorporated herein The intent is that this Bond shall be constructed as a
<br /> to the OWNER the amount of damages as described in paragraph 6 in excess of the statutory bond and not as a common law bond.
<br /> Balance of the Contract Price trimmed by the OWNER resulting from the
<br /> CONTRACTOR Default;or 12. finermitioss.
<br /> 4.4. Waive its right to perliorn and complete,arrange for completion,or obtain a 12.1. Balance of the Contract Price: The total amount payable by the OWNER to
<br /> new contractor and with reasonable promptness under the circumstances; the CONTRACTOR under the Contract after all proper adjustments have been made,
<br /> including allowance to the CONTRACTOR of any amounts received or to be received
<br /> 4.4.1. After investigation,detertnine the amount for which it may be by the OWNER in settlement of insurance or other Claims for damages to which the
<br /> liable to the OWNER and,as soon as practicable after the amount is detemrined,tender CONTRACTOR is entitled,reduced by all valid and proper paymenm made to or on
<br /> payment therefor to the OWNER;or behalf of the CONTRACTOR under the Contract.
<br /> 4.4.2. Deny liability in whole or in part and notify tits OWNER citing 12.2. Contract: The agreement between the OWNER and the CONTRACTOR
<br /> reasons therefor. identified on the signature page,including all Contract Documents and changes thereto.
<br /> 5. 11 the Surety does not proceed as provided in paragraph 4 with reasonable 12.3. CONTRACTOR Default: Failure of the CONTRACTOR, which has
<br /> promptness,the Surety shall be deemed to be in default on this Bend fifteen days after neither been remedied nor waived,to pufbrm or otherwise to comply with the terms of
<br /> receipt of an additional written notice from the OWNER to the Surety demanding that the Contract
<br /> the Surely perform its obligations under thls Bond,and the OWNER shall be entitled to
<br /> enforce any remedy available tC the OWNER. If the Surety proceeds as provided in 12A. OWNER Default: Failure of the OWNER, Which has neither been
<br /> paragraph 4.4.and the OWNER refused the payment tendered or the Surety has denied
<br /> remedied or waived, to pay the CONTRACTOR as required by the Contract or to
<br /> pliability, in whole or in part,without further notice the OWNER shall be entitled to perform and compleiC or comply wls the other terms chereof
<br /> enforce any remedy available to the OWNER.
<br /> (FOR INFORMATION ONLY--Name,Address and Telephone)
<br /> AGENT or BROKER: OWNER'S REPRESENTATIVE(Engineer or other party):
<br /> BB&T Insurance Services, Inc.
<br /> 4400 Harding Road, Ste. 400 Nashville, TN 37202-0139
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<br /> 00610-2
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