Business Bond Packet

BUSINESS BOND PACKET

Parties and Identifying Information

Principal Name:

Recitals

WHEREAS, Principal is engaged in the business activities described herein and has requested Surety to issue one or more bonds in favor of Obligee as security for the faithful performance of Principal's obligations under applicable agreements, statutes, permits or contracts; and

WHEREAS, Surety is willing to issue such bond(s) on the terms and conditions set forth in this Business Bond Packet, including the indemnity and collateral provisions contained herein; and

WHEREAS, Principal, Obligee and Surety intend that the terms of issuance, premium payment, collateral, and the indemnity obligations be set forth in writing and be enforceable as an integrated agreement among the parties.

Bond Identification and Conditions

Bond Type: Contract Bond License Bond Performance Bond Payment Bond

Bond Number:    Penal/Surety Sum: $    Effective Date:

Condition of this bond is such that if Principal faithfully performs all obligations required under the underlying obligation to Obligee, then this bond shall be null and void; otherwise it shall remain in full force and effect and Surety shall be obligated to the extent and in the manner set forth by the bond instrument and applicable law.

Scope of Work

Payment Terms

Premium Amount Payable by Principal: $

Late Fee and Interest: If any premium or other charge due hereunder is not paid when due, Principal shall pay a late charge of per month on the overdue amount, together with all reasonable costs of collection, including attorneys' fees and expenses incurred by Surety.

Collateral and Security: Principal shall furnish such collateral or security as Surety may require in its sole discretion to secure payment of premiums, reimbursements, or losses. Collateral may include cash, lien assignments, or other security agreements as documented in a separate collateral agreement executed contemporaneously with this Packet.

Term and Termination

Term Commencement Date:    Term Expiration Date:

Notice of Termination: Either party may terminate obligations hereunder only upon written notice delivered to the other party at least days before the intended termination date; termination shall not relieve Principal or Indemnitors of obligations arising prior to effective termination, nor shall termination release any liability arising under any bond issued prior to the effective date of termination.

Indemnity and Reimbursement

Principal, and any Indemnitor executing a separate indemnity agreement, jointly and severally agree to indemnify, defend and hold harmless Surety from and against any and all losses, liabilities, costs, expenses, including attorney fees, judgments, settlements, and interest that Surety may incur by reason of executing, procuring, or paying under any bond, or in enforcing any right under this Packet or any collateral agreement.

Principal agrees to reimburse Surety upon demand for any claim payments made by Surety on account of any default of Principal, including costs of investigation and defense. Principal's obligation to reimburse Surety is immediate and continuing regardless of whether Surety has first pursued remedies against Principal or collateral.

Representations, Warranties and Certifications

Principal represents and warrants that it is duly organized and in good standing under the laws of its jurisdiction, has full authority to enter into this Packet and any underlying obligations, and that the execution, delivery and performance of this Packet have been duly authorized by all necessary corporate or organizational action.

Confidentiality

Except as required by law or as necessary to perform the duties of Surety hereunder, all non-public information furnished by Principal to Surety in connection with this Packet, including financial information and collateral documentation, shall be held in confidence by Surety and its agents. Notwithstanding the foregoing, Surety may disclose such information to reinsurers, affiliates, counsel, auditors, and potential purchasers of surety obligations provided that such recipients agree to maintain confidentiality consistent with this paragraph.

Governing Law; Venue

This Packet and any dispute arising out of or relating to it shall be governed by and construed in accordance with the laws of the State of without regard to conflict of law principles. Venue for any action shall be in the state or federal courts located in that state, and the parties hereby submit to the personal jurisdiction of such courts.

Entire Agreement and Amendments

This packet, together with any bond forms, collateral agreements, and written endorsements or riders executed contemporaneously, constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements. No amendment or waiver of any provision shall be effective unless in writing and signed by the party to be charged.

Notices

Certifications and Authorizations

By executing below, Principal certifies that all information provided in this Packet is true, complete and correct to the best of Principal's knowledge. Principal authorizes Surety to verify financial information, obtain credit reports, and to disclose information to reinsurers and other parties as necessary to underwrite and administer the bond(s).

Sign Now