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§7 If the Surety elects to act under Section 5.1,5.2 or 5.3, then the responsibilities of the Surety to the Owner shall not
<br /> be greater than those of the Contractor under the Construction Contract.and the responsibilities of the Owner to the
<br /> Surety shall not be greater than those of the Owner under the Construction Contract.Subject to the commitment by
<br /> the Owner to pap the Balance of the Contract Price,the Surety is obligated,without duplication,for
<br /> .1 the responsibilities of the Contractor for correction of defect ye.work and Complcriun of die
<br /> Construction Contract,
<br /> .2 additional legal,design professional and delay costs resulting from the Contractor's Default,and
<br /> resulting from the actions or 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
<br /> damages caused by delayed 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 Bood.
<br /> §9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the
<br /> Construction Contract,and the Balance of the Contract Price shall not be reduced or set off on account of any such
<br /> unrelated obligations.No right of action shall accrue on this Brand to any person or entity other than the Owner or
<br /> its heirs,executors,administrators,successors and assigns.
<br /> §10 The Surety hereby waives notice of any change,including changes of time,to the Cnnstmction Contract or to
<br /> related subcontracts,purchase orders and rather obligations.
<br /> §11 Any proceeding,legal or equitable,under this Bond may be instituted in any Coon of competent jurisdiction in
<br /> die location in which the work or part of dye work is located and shall be instituted within two years after a
<br /> declaration of Contractor Default or within two yews after the Contractor ceased working or within two years after
<br /> the Surety refuses or fails to perform its obligations under this Bond,whichever occurs first.If the provisions of this
<br /> Paragraph are valid or prohibited lay law,the minimum period of limitation available to sureties as a defense in the
<br /> jurisdiction of the suit shall be applicable.
<br /> §12 Nonce to the Surety,the Owner or the Contractor shall he mailed or delivered to the address shown on the page
<br /> on which their signature appears.
<br /> §13 yX hen this Bond has been furnished to comply with a statutory or other legal requirement in the location where
<br /> the construction was ro he performed,any provision in this Bond conflicting with said statutory or legal tegnirement
<br /> shall he deemed deleted herefrnm and provisions conforming to such statutory or other legal requirement shall he
<br /> deemed incorporated herein.AAthen so furnished,the intent is that this Bond shall be construed as a statutory bond
<br /> and not as a common law bond.
<br /> 14 Definitions
<br /> §14.1 Balance of the Contract Price.The total annum payable by the()wrier to the Contractor under the
<br /> Construction Contract after all proper adjusnnents have been made,including*allowance to die Contractor of any
<br /> amounts received or to be received by the Owner in settlement tit'insurance or other claims for damages to which
<br /> the Contractor is entitled,reduced by all valid and proper payments made to or on behalf of the Contractor under the
<br /> Construction Contract.
<br /> §14.2 Construction Contract.'The agreement between the Owner and Contractor identified on the cover page,
<br /> including all Contract Documents and changes made to the agreement and the Contract Documents,
<br /> §14.3 Contractor Default. Failure of the Contractor,which has nor been remedied or vyaiced, to perform Cr
<br /> otherwise en comply with a material term of the Construction Contract.
<br /> §14.4 Owner Default. Failure of the Owner,which has not been remedied or waived,ro pay the Contractor as
<br /> required under the Construction Contract or to perform and crnnplete or couple with the cad ter material terms of the
<br /> Construction Contract.
<br /> §14.5 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor.
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