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Surety Bond
SURETY BOND
Surety bond by [Name of issuer] as principal, and as surety, a corporation incorporated under the laws of the State of [State of issuer], and licensed to transact a surety business in the State of [State of issuer], to [Name of obligee], as obligee.
RECITALS:
A. Principal and surety are bound to obligee in the sum of $ [Amount of bond] Dollars, for the payment of which principal and surety jointly and severally bind themselves, their successors, assigns, and legal representatives.
B. Principal and obligee have entered into a written contract for, hereinafter "contract", which was executed on [Date of contract], a copy of which is attached and incorporated by reference.
1. DURATION: This obligation shall run continuously and shall remain in full force and effect until and unless the bond is terminated and canceled as provided herein or as otherwise provided by law.
2. CONDITION OF OBLIGATION: If principal fully performs its obligation or indemnifies obligee against any loss resulting from the breach of any part of the original contract by principal, this obligation shall be void.
3. NOTICE: No liability shall attach to surety hereunder unless upon discovery of any fact or circumstance indicating a possible claim hereunder, immediate written notice thereof containing all details then known is given to surety at its principal office at: [Location of principal office].
4. TERMINATION: Surety may terminate its obligation by giving written notice to obligee, but such notice shall not affect any obligation which may have arisen prior to the receipt of such notice by obligee.
5. COMPLETION OF ORIGINAL CONTRACT / SUBROGATION: In case of
default by principal, surety may assure and complete or procure completion of the obligations of principal, and surety shall be subrogated and entitled to all the rights and properties of principal arising out of the original contract.
6. EXTENT OF LIABILITY: The maximum amount of the liability of surety shall be no more than $ [Maximum amount of the liability] Dollars,
together with the interest due thereon.
7. MODIFICATION OF ORIGINAL CONTRACT: Any modification in the
obligations of the original contract may be made without the consent or knowledge of surety and without in any way releasing surety from liability under this bond.
8. SEVERABILITY: If any of the provisions of this bond are held to be illegal or unenforceable by a court of competent jurisdiction, all other provisions shall remain effective.
9. BINDING EFFECT: This bond shall be binding and inure on surety and its successors, assigns, and legal representatives.
IN WITNESS WHEREOF, principal and surety have executed this bond on [Date executed].
Principal Surety