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Home My WebLink About1576 . ~ TnU3T FUND 6? FovA~e: II any ot the Bonds are exceuted in connection with a contract which by ia terms or by IaM prohibit~ 68 the as~ignment of the oontract price. o~ any part thercot. the Contractor and lndemrutors covenant and agree that 69 all payments received ta or on account o[ said contract shall be held as a trust Iund in which the Suret~? bas au e 90 intereat. tor thepa yment of obiigatio~?s incurred in the performance ot the contcaM and tor labor. matenals. and ~1 ae~vices [urnished ia the ~~osecution ot the work provided ~n sa~d rnntract or any authorised actension or modificatioa 92 ther~ot; and, further, it a expresslY understood and dcelared that ap monics due and to bccomc due under any oou- 73 tcact e~ oontracta covcred by the 8oads are trust tunds~ whether ia the pos.9ession of ~he Contractor o~ Inde.~naton 74 or otherwise, for the benefit ot and tvr payment o[ all such obligations in eonnectioa ~?ith any such ooatcact ot 75 oontracb to~ ~vhich the Surety would be Gable under any oi aaid Bo~ds. which aaid trust alao inura to the beae6t ~6 of the Surety ta any liability or losa it raay have or sustaia under aay said Iionds. aad this Agrcemeat aad declaratioa 77 ahalt also oonstitute aotioe of such trust UNIFOItAi COM11iERGIAL CODB • 98 F~~re: That thia Agroement shaA oonstitute a Security Agreement to the Surety snd alao a Fiaancing Ststemeay 79 both in a~ceordaaoe with the provisions oi the Uniform Commucial Code oi every jurisdiction wherda such Code is in 80 eBect and may be so used by the Surety ~vithout ia any ~vay abrogating. restricting a~ limiting the rig6b of the Surety 81 under this Agcament or uada law. or ia equity. _ TAKEOYER ~ 82 Stxrn: In the eveat o[ any breach or de[auit asserted by the obGgee in any aaid Bonda~ or the Coatractoc haa 83 abandoaod the work on a torfeited any contract or ~ontracts oovered by any said Bonds. or has tailed to pay aWiga• 84 dons iacurred in conntciion therewith, or in the event of the death~ disappearance. Contcacto`'s oonvictioa tat s 85 felony, imprisonment, incompetency. insolvency. or bankruptcy oE the Contractoe~ oc the appoiatment of a reoeiv~et 86 or wstee Eor the Coatractor, or the ~uoperty of che Cpntcactor, or in the event of an as~ ment for the benefit at u 87 creditors oE the Contractor. oc if any action is taken by or against the Contractor undet or y virtue ot the National 88 Bankruptcy Act~ or ahould reorganization or arrangement proa~edinga be hled by ac againat the Coatracta~r undet 89 said Act. or if any acdon is takea by or against the Coatractor under.tb~ insolvency laars ~ any state. posa~aioa. et 90 temtory of the United States the Surety ahaQ have the right, at its optioa and in ita sole discretion and is hec~eby au- 91 thurised. with or without exercising any other right or opdon conferred upon it'by ta~r or in the tam's of this Agree- 92 ment~ to take po~on of any part or all oE the work 4nder any contract or oontracts covered by any aaid Bouds. aad 93 at the expease of the Contractor and Indemnitoca to eomplete or a~sange ior the oompietion of the same, aad the 94 Contractor aad Iademrutors shall prompdy upon demaad pay to the Surety all loe~es. and acp~eases so iacurred. . . ~ CAANG89 9~-- Ss~: The Surety!_is au~orized and em _ ered. without nodce to or knowledge oi the Indemaitoca to assent - - - 96 to any change whatsoevoer in the Bo~e~ a or aay contrac~s-reterred-~o iA ~e Bonds~-and/or ia the general wa= 9~ ditiona. plans and/ar specifications aocompanying said contracts. including, but not Umited Lo. any change ia the 98 time f~ the completion of said contracts and to paymenta or advances thereunder b~tore the same may be due. aud Eo 99- assent to or take any a~ignment or assignments. to euecute or oonsent to the execution of any oontinuation~~ acLen- 100 sions or rrnewals oi the I3onds and to acecute any substitute or aubs+titutes therefor. with the same or diBa+ent lOt conditions. provisions and obl~geea an~f with the same or larger or smaller~ penaltiw. it being ex~uessly understood 102 and agreod that the lndemnitor~ shati remain bound under the terms of ~his Agreement rven though any such assent 103 by the Surety dces or might substantially increase the liability of said Indemn~tora . ADVA`+1CES 104 EieR~t : The Surety is authorized and empowered to guarantee laans. to advance or lerid to the Contractoc any 105 money. which the Surety may see fit, for the purpose of any contracta referred to in. or guaranteed by the Bo~s; 106 and all money expendeci in the completion of any such contracts by the Surety. or lent or advanced from time to time I07 to the Contractor. os gniarai~teed by the Surety [or the purposes of any such contracb. aad all eaate, and expensea 108 incurred by the Surety in relation thereto. unless repaid with 1e~al interest by the Contractor to the Surety wben due, ; 109 shall be presumed to be a loss by the Surety for which the Contractor and the Indemnitocs shaU be resp~eible. 110 notwithstanding that said money ~ any part thereof should not be so uaod by the Contractoc. i ; BOOKS AND RECORDS i i l l Ntxtx: At any time, and until such time as the liability of the Surety under any and all said Boads is termiaated. ~ 112 the Surety shall have the rig6t to reas~onable access to ihe boolcs. reeords~ and aocounts ot the Contractor and In- _ ~ 11~ demnitors; and any bank depository. materialman, supplr house, or other petson~ 6cra. or corporation when request~d 114 by the Surety is hereby authonzed to turnish the Surety any information requested including~ but not limitaf to. the ~ 11S status of the work under oontracts being performad by the Contracior~ the conditioa-oE-the-perfasnnance of such 116 oontracts and paymenta of accounta. . DECLINE EXECUTION 11~ TsrrTS: Unless otherwise specificaUy agreed in writing. the Surety may decline to ~cecute any Bond and the 118 Contractor and Indemnitors agree to make no claim to the contrary in cons~deration of the Surety's recxiving this I19~Agreennen~-arifitfttt~-Surety sha}teuecute a-9i~or-~ro~~-$ond; iE-ahal~-have-the-righ~-te-cl~clin~to-executaaa~.-- 120 and aU of the bonds that may be required in connection w?th any award that may be made under the proposal fat 121 which the Bid or Proposal Bond is given and such declinatioa shall not diminish or alter the liability that may arise 122 by reaeon of having executed the Bid ~ Proposal Bond. ~ - NOTICE OF EXECUTIO~I ~ 123 Et,sv~'re: The Indemnitors hereby waive notice of the execution of said Bonds and of the acceptance of this 124 Agreement. and the Contractor and the Indemnitors hereby waive all notice o( any default, or any otha act or acb ~ l25 g~ving rist to any claim under said Bonds. as well as notice of any and all liability of the Surety undtr said Bonds. 126 and any and aU liabilit~~ on their part hereunder. to the end and e6ect that. the Contractor and the lndemnitora shaU ~ 127 be and continue tiable bereunder. notwithstanding any notice of any kind to which they might have been or be ~ 128 entitled, aad notwithstanding any deEenses they might have been entided to make. ~ ~ ~O~iESTEAD ~ 129 Tw$L~r[t:'fhe Contractor and the Indemnitors hereby waive, so far as their respecdve obfigationa under this Y l30 Agreement are concerned. all rights to claim any of their property. including their respectiv~ homesteads~ as execapt ~ 131 from levy~ execution~ sale or other legal ~rceess under the laws of any State. Tern~~'i~~~t~. . , ~ S~`1TI.E:1iENTS _ .'"`r`~ ~ , ~ r .~~1~ ~ ~ ~ 132 TflIRTBENT}I: The Surety st?all have the right to adjust, settle or comptagnse,~ny daiih~c~em ~uit or judg- ~ 133 ment up~n the Bonds. unless the Contractor and the lndemnitora shall ceq(3re~,t~S~t1&~o '~~iCh claim or 134 demand. or tQ detend ~uch suit. oc to appeal irom such judgment. and ahal) r' :i~t~'thc~5~~at;the Ume of ~ ]35 such request. cash or collateral satis(actory to the Surety in kind and am ~~~~be;ysed in:~~~ny )uci8ment ~ 136 or judgments rendered or that may be rendered~ with interest~ co~ts~ es ~attorney~•:.l~~Qcluding those ~ ~ 137 of thc Surety. _ ~ ~-~,r'r'~•~ ~ ~ ~ p R i- ~ ~~i'.,~.~~~`~. ~ , ~ . ~ . bDOK PAGf 15~ ~9 , ~f „,~~t ~ ' • - ~ ~ ~ - . ~ - ~ _ : . ~ ~ . . ~ ~3~`--_,__ _