Legal Lien Bond Undertaking

LEGAL LIEN BOND UNDERTAKING

This Legal Lien Bond Undertaking (the Undertaking) is made as of by and between Principal: , a organized under the laws of (Principal), and Surety: (Surety), for the benefit of Obligee: .

RECITALS

WHEREAS, a lien has been asserted or recorded against certain real or personal property described as:

WHEREAS, the lien was filed/recorded on in the office of and indexed under instrument or claim number .

WHEREAS, Principal requests and Surety agrees to furnish this Undertaking to obtain release or non-enforcement of the lien and to secure the Obligee against loss arising from the lien subject to the terms and conditions set forth herein.

NOW, THEREFORE

For good and valuable consideration, the receipt and sufficiency of which are acknowledged, Principal and Surety hereby covenant and agree as follows.

1. BOND AMOUNT AND OBLIGATION

Principal and Surety are jointly and severally bound to Obligee in the sum of (the Bond Amount), conditioned upon payment by Principal and Surety of any and all sums for which the lien or claim may be legally liable, together with costs, interest and attorneys' fees as provided herein.

2. INDEMNITY AND PAYMENT

If it is finally adjudicated in a court of competent jurisdiction or otherwise agreed in writing that the lien was properly filed and that Obligee has suffered loss, Principal and Surety shall, within thirty (30) days after receipt of written demand and a final judgment or settlement, jointly and severally pay to Obligee the full amount of such adjudicated or agreed liability up to the Bond Amount, including reasonable costs, interest and attorneys' fees incurred by Obligee in enforcing its rights under this Undertaking.

3. CONDITIONS OF LIABILITY

Liability of Surety under this Undertaking shall arise only upon written notice to Surety specifying the nature of the claim and providing copies of any judgment, lien instrument or other documents evidencing the asserted claim, which notice shall be delivered to Surety at the address for notices set forth below. Surety shall have the right, but not the obligation, to investigate or defend against the asserted claim. Failure of Surety to defend shall not constitute a waiver of Surety's defenses but shall not limit Surety's liability where liability is established by final adjudication or settlement.

4. NOTICE AND CURE

Obligee shall provide Principal and Surety with written notice of any claim under this Undertaking reasonably promptly after becoming aware of such claim. Principal shall have fourteen (14) days from receipt of such notice to cure the underlying obligation if capable of cure. If Principal fails to cure, Obligee may proceed against the Bond Amount subject to the terms herein.

5. LIMITATION OF LIABILITY

The aggregate liability of Surety under this Undertaking, whether by reason of multiple claims, judgment, settlement or otherwise, shall not exceed the Bond Amount. No action may be commenced against Surety unless and until Obligee has given the notices required herein and has obtained a final adjudication or settlement establishing liability.

6. ATTORNEYS' FEES, COSTS AND INTEREST

In the event of any action to enforce this Undertaking, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs incurred in addition to any other relief. Interest on amounts awarded shall accrue at the legal rate from the date of final judgment or as otherwise required by law.

7. NOTICES

All notices required or permitted under this Undertaking shall be in writing and delivered to the parties at the following addresses by certified mail, return receipt requested, or overnight courier:

8. GOVERNING LAW; VENUE

This Undertaking shall be governed by and construed in accordance with the laws of the State of . Venue for any action arising under this Undertaking shall lie exclusively in the state or federal courts located within , unless otherwise required by mandatory law.

9. ENTIRE AGREEMENT; SEVERABILITY

This Undertaking contains the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. If any provision of this Undertaking is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

10. AMENDMENT; WAIVER; COUNTERPARTS

No amendment, waiver, or modification of any provision of this Undertaking shall be effective unless in writing and signed by Principal and Surety. No delay or omission by Obligee in exercising any right under this Undertaking shall operate as a waiver of such right. This Undertaking may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. CLAIM PROCEDURE

Any claim by Obligee for recovery under this Undertaking must be presented in writing, accompanied by copies of the lien instrument and any judgment or settlement documents. Obligee's presentation of a claim shall not be deemed an admission of liability by Principal or Surety. Payment under this Undertaking is conditioned on final adjudication or a written settlement that establishes the amount due and the entitlement of Obligee to recover.

12. REPRESENTATIONS

Principal hereby represents and warrants that Principal has authority to enter into this Undertaking and that the statements made herein are true and complete. Surety represents that it is duly authorized to issue this Undertaking under its organizational instruments and the laws governing its operations.

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