Surety Bond

Document Sample
Surety Bond Powered By Docstoc
					Surety Bond
This Surety Bond can be used by a surety and a principal that want to ensure the
completion of certain work or the payment of a certain amount pursuant to a separate
agreement. Customize the information of the parties, the amount or work being
guaranteed, the other party to the contract receiving assurance, and more. In addition,
additional custom language can easily be added to the surety bond as necessary. This
bond is ideal for individuals or small businesses that need to provide surety pursuant to
a separate agreement.
                                               SURETY BOND

This Surety Bond (the “Bond”) is hereby made as of ________________ [Instructions: Insert
the date] by and between ____________________ [Instructions: Insert the Principal’s name]
(the “Principal”), of ______________________________ [Instructions: Insert the Principal’s
address] and ____________________ [Instructions: Insert the Surety’s name] (the “Surety”),
of ______________________________. [Instructions: Insert the Surety’s address]

KNOW ALL PERSONS BY THESE PRESENTS:

WHEREAS, Principal entered into a written agreement (the “Agreement”) with
____________________ [Instructions: Insert the name of the other party to the agreement,
or the “Obligee”] (the “Obligee”) dated ____________________ [Instructions: Insert the date
of the original agreement] whereby, in consideration of Principal’s agreement to
_______________________________, [Instructions: Insert what the Principal agreed to]
Obligee agreed to ____________________ [Instructions: Insert what Obligee agreed to] As
used herein, “Agreement”, shall refer to the Agreement itself and any amendments, addendums,
and/or any other documents referenced by or made a part of the Agreement, all of which are
hereby referred to and incorporated by reference;

WHEREAS, Surety is a corporation duly organized under the laws of the State of
____________________ [Instructions: Insert the state of organization] and authorized to
transact a general surety business in the State of _______________ [Instructions: Insert the
state where Surety is allowed to practice] as a surety; and

NOW THEREFORE, Principal and Surety, are held and firmly bound unto Obligee in the sum
of __________ Dollars ($______) [Instructions: Insert amount] for the payment of which sum
Principal and Surety each jointly and severally bind themselves, their respective heirs, executors,
administrators, successors, and assigns.

1.       CONDITIONS OF THE BOND

       a.     Full and Faithfull Performance by Principal. Provided that Principal promptly,
fully and faithfully performs all of Principal’s agreements, covenants, representations and
warranties contained within the Agreement, Principal and Surety shall have no obligation under
the Bond.

        b.      Default by Principal. In the event that Principal is declared by Obligee to be in
default of the Agreement, Surety may (i) promptly remedy the default; (ii) assume and complete
the Agreement in accordance with its terms and conditions, or (iii) cause another person to
complete the Agreement. In such event, Surety or that such person shall be subrogated to all the
rights of Principal under the Contract.

      c.     Default by Obligee. In the event that Obligee defaults in the performance of any
of Obligee’s agreements, covenants, representations or warranties contained within the
Agreement, Surety shall be relieved from all liability hereunder.


© Copyright 2014 Docstoc Inc. registered document proprietary, copy not                2
       d.      Amendments. In the event that Principal and Obligee amend or modify the
Agreement, Principal shall immediately and prior to the commencement of any such work,
provide Surety with written notice stating the nature and amount of the amendment or
modification; and Surety shall have the right in Surety’s absolute discretion to disapprove any
amendment or modification which would increase the aggregate cost of the Agreement by more
than __________ percent (___%). [Instructions: Insert percentage]

       e.      Force Majeure. Surety shall not be liable for the nonperformance of any of the
terms of the Agreement attributable to fire, riot, strike, the elements or other acts of God, or for
any loss or damage resulting therefrom.

       f.      Third Party Rights. No right of action shall accrue on this bond to or for the use
of any person, firm, or corporation other than Obligee, or Obligee’s successors.

       g.       Bond Limitation Period. No suit, action, or proceeding shall be maintained under
this Bond unless commenced within __________ (___) [Instructions: Insert the number of
years] years after the completion of the work.

2.       MISCELLANEOUS

        a.      This Bond constitutes the entire agreement between the parties hereto with respect
to the specific subject matter hereof and supersedes all prior agreements or understandings of any
kind with respect to the specific subject matter hereof.

       b.       In the event that any provision or part of this Bond shall be deemed void or
invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and
remain in full force and effect.

       c.      Any and all additions, deletions, or modification to this Bond must be in writing
and signed by the parties or it shall have no effect and shall be void.

       d.      No failure by either party to pursue any remedy resulting from any breach of any
provision of this Bond by the other party shall be construed as a waiver of that breach or as a
waiver of any subsequent or other breach unless such waiver is in writing and signed by the non-
breaching party.

        e.      All notices, statements and/or requests for approvals ("notices") that either party
hereto is required or may desire to give to the other party shall be given in writing by addressing
the same to the other party at the addresses set forth above, or at such other address as may be
designated in a notice to the other party. Notices shall be made by personal delivery, courier, or
by certified U.S. mail, return receipt requested, postage prepaid. Notice shall be deemed given
on the date of delivery to the other party.

      f.    This Bond shall be governed in accordance with the laws of the State of
_________________, [Instructions: Insert the state’s laws that will govern this surety]



© Copyright 2014 Docstoc Inc. registered document proprietary, copy not                 3
applicable to agreements to be wholly performed therein, without giving effect to its laws
governing conflict of laws.

IN WITNESS WHEREOF, the parties have executed this Bond as of the date first set forth
above.

PRINCIPAL:                                                       SURETY:
__________ [Instructions: Insert name]                           __________ [Instructions: Insert name]



__________________________                                       __________________________
By: Authorized Signatory                                         By: Authorized Signatory




© Copyright 2014 Docstoc Inc. registered document proprietary, copy not                        4

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:53
posted:8/18/2014
language:English
pages:5
Description: This Surety Bond can be used by a surety and a principal that want to ensure the completion of certain work or the payment of a certain amount pursuant to a separate agreement. Customize the information of the parties, the amount or work being guaranteed, the other party to the contract receiving assurance, and more. In addition, additional custom language can easily be added to the surety bond as necessary. This bond is ideal for individuals or small businesses that need to provide surety pursuant to a separate agreement.