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• g I The Contractor and Surety,lointh and severally,bind themselves,their heirs,executors,administrators.
<br /> successors and assigns to the Owner to pay for labor,materials and equipment furnished for use in the performance
<br /> of the Construction Contract,which is incorporated herein hr reference,subject to the following terms.
<br />• g 2 If the Contractor promptly makes payment of all turns due to Claimants,and defends,indemnifies and hoMs
<br /> harmless the Owner from claims,demands, liens or suits by any person or entity seeking payment for labor,materials
<br /> or equipment Furnished for use in The performance of the Construction Contract,then the Surety and the Contractor
<br /> shall have no obligation under this Bond.
<br /> 4 3 If there is no Owner Default under the Construction Contract,the Surety's obligetie,n vs the Owner under this
<br /> Bond shall arise after the Owner has promptly notified the Contractor and the Surety at the address described in
<br /> Section 13)of claims,demands,liens or suits against the Owner or the Owner's property by any person or entity
<br /> seeking payment fot labor,materials or equipment furnished for use in the performance of the Construction Contract
<br /> and tendered defense of such claims,demands,liens or suits to the Contractor and the Surety.
<br /> 5 4 When the Owner has satisfied the conditions in Section 3,the Surety shall promptly and at die Surety's expense
<br /> defend,indemnify and hold(harmless time Owner against a duly Tendered clams,demand,lien or suit.
<br /> 5 The Surey's obligations to a Claimant under this Bond shall arise after the following:
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<br /> 5 5.1 Claimants,who do not have a direct contract with the Contractor,
<br /> .1 have Furnished a written notice of non-patment to the Contractor,stating web substantial accuracy
<br /> the amount claimed and the name of the patty to whom the materials were,or equipment was,
<br /> furnished or supplied or for whom the labor was done or performed,within ninety ;9111 days after
<br /> having last performed labor or last furnished materials or equipment included in the Claim;and
<br /> .2 have sent a Claim to the Surety(at the address described in Section 13).
<br /> §5.2 Claimants,who are employed by or have a direct contract with the Contractor,have sent a Claim to the Surety
<br /> (at the address described in Section 13).
<br /> 5 6 If a notice of non-pay meat required by Section 5. 1.1 is given by the Owner to the Contractor,that is sufficient to
<br /> satisfy a Claimant's ohfigation to furnish a written notice of non-payment under Section 5.1.1.
<br /> 7 When a Claimant has satisfied the conditions of Sections Si. or 5.2,whichever is applicable,the Siren shall
<br /> promptly and at the Surety's expense take The following actions:
<br /> 7.1 Send an answer to the Claimant,with a copy to tire Owner,within sixty(Oh days after receipt of the Claim,
<br /> stating the amounts that are undisputed and the basis for challenging any amounts that are disputed;and
<br /> 5 7.2 Pay or arrange for payment of any undisputed amounts.
<br /> 5 7.3 The Surety's failure to discharge its obligations under Section 7.1 nr Section 72 shall nor be deemed to
<br /> constitute a waiver of defenses the Surety or Contractor may have of acquire as CO a Claim,except as to undisputed
<br /> amounts for which [tie Surety and Claimant ha ye reached agreement.If,howeycr,the Surety fails to discharge its
<br /> obligations under Section 7.1 or Section 7.2,the Surer:.-shall indemnify the Claimant for the reasonable attorney's
<br /> fees the Claimant incurs thereafter to recover any sums Found to be due and owing to the Claimant.
<br /> 4 S The Suren's total obligation shall not exceed the amount of dais Bond,plus the amount of reasonable a tarn em's
<br /> fees pros'ded under Section'3,and the amount of this Bond shall be credited for any payments made in good faith
<br /> by the Surety.
<br /> 5 9 Amounts owed lay the Garner to the Contactor under the Construction Contract shall be used for the
<br /> performance of the Construction Contract and to satisfy claims,if any, under any construction performance bond.By
<br /> the Contractor furnishing and the Owner accepting this Bond,they agree that all funds earned by the Contractor in
<br /> the performance of the Cnnstrucdon Contract arc dedicated to satisfy obligations of the Contractor and Sorea under
<br /> this Bond,subject to the Owner's priority to use the fund.for the completion o1 the work.
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