BOND_IN_LIEU_OF_RETAINED_FUNDS.pdf

SK rev 2/1/2020 Page 1 of 2

BOND IN LIEU OF RETAINED FUNDS

Revised 2/1/2020

Bond No._______________

I. [Insert Principal’s legal name and check appropriate box below] , an individual OR a husband and wife, a partnership organized under the laws of the State of , the General or Managing

Partner for which is , a limited liability corporation organized under the laws of the State of , the Manager

(or Member) for which is [specify applicable status], a corporation organized and existing under the laws of the State of and authorized to do business in the State of Washington, as Principal (hereinafter "Principal"), has been awarded a contract with The City of Seattle (hereinafter "Seattle") for or relating to , (Contract No. , which contract is incorporated herein by this reference);

II. The Contract and Ch. 60.28 of the Revised Code of Washington (hereinafter "RCW") require Seattle to withhold from Principal a sum (hereinafter "the retainage") in an amount not to exceed five percent (5%) of all monies earned by Principal on estimates during the progress of work under the Contract, but in the initial sum of

Dollars ($ ) as a trust fund for the protection and payment of (a) the claims of any person arising under the Contract, and (b) the State of Washington with respect to taxes imposed pursuant to RCW Title 82 that may be due from Principal; and

III. Principal has requested that Seattle not withhold the retainage, or that Seattle release all or a portion of the retainage currently withheld, as allowed under RCW 60.28.011(6) in exchange for this Bond; Now, Therefore, THE CONDITIONS OF THIS OBLIGATION ARE AS FOLLOWS:

1. Principal and , a corporation organized and existing under the laws of the State of and authorized to transact business in the State of Washington as Surety (hereinafter "Surety"), are jointly and severally held and bound unto Seattle and all other beneficiaries of the trust fund created by RCW 60.28.011(1), as Obligees, in a penal sum equal to five percent (5%) of all monies earned by the Principal on estimates during the progress of work under said Contract (which sum includes and is not limited to increases due to change orders, increases in the quantity of work, and the addition of new items of work), lawful money of the United States of America, for the payment of which Principal and Surety bind themselves and their heirs, executors, administrators, successors, and assigns, jointly and severally, as provided herein.

2. This Bond, including any proceeds therefrom, is subject to all claims and liens arising out of the work performed under said Contract, in the same manner and priority as set forth for the retainage under RCW Ch.

60.28. Any amount(s) determined by Seattle to be due and payable from the retainage in accordance with the provisions of RCW Ch. 60.28 shall be paid by Surety not later than thirty (30) days from and after Surety's receipt of Seattle's written identification of the appropriate payee and amount payable.

3. Surety waives notice of any extension of time or other modification of the Contract. Surety agrees to and is bound by the laws and subject to the jurisdiction of the courts of the State of Washington with respect to this Bond. The venue for any action hereunder shall be in King County, Washington.

4. This Bond shall remain in full force and effect until Surety is notified by Seattle that (a) all necessary affidavits have been provided by Principal; (b) Seattle has received the Washington State Department of Revenue's certification that all taxes, increases and penalties due and to become due from Principal with respect to such Contract or otherwise have been paid in full or are readily collectible without recourse to the State's lien on this Bond; (c) Seattle is satisfied that the claims of materialmen and laborers who have filed claims against such bond, Purchasing and Contracting

Bond No. _______________________

SK rev 2/1/2020 Page 2 of 2 together with sums sufficient to defray the cost of foreclosing the liens of such claims and to pay attorneys' fees associated therewith, have been paid; (d) any sums due to Seattle from the Principal have been paid; (e) Seattle is satisfied that all other taxes, increases, and penalties due and owing from the Contractor have been paid; and

(f) the obligation is duly released by Seattle.

For Surety: For Principal:

By: By:

(Signature) Attorney-in-Fact (Signature)

(Print or type name of Attorney-in-Fact) (Print or type name of signer for Principal)

Print or type address of Attorney-in-Fact for Surety:

(Print or type title of signer for Principal)

STATE OF )

) ss: (PRINCIPAL’S ACKNOWLEDGMENT)

COUNTY OF )

On this day of , __

WITNESS my hand and official seal hereto affixed the day and year in this certificate first above written.

, before me a notary public in and for the State of , duly commissioned and sworn, personally appeared , the person(s) described in and who executed the foregoing Bond, and acknowledged to me that signed and sealed said Bond as a free and voluntary act and deed for the Principal so identified in foregoing Bond for the uses and purposes therein mentioned, and on oath stated that is/are authorized to execute said Bond for the principal named therein.

(Signature of Notary Public) (Print or type name of Notary Public)

Notary Public in and for the State of residing at My commission expires . [SEAL]

STATE OF )

) ss: (SURETY’S ACKNOWLEDGMENT)

COUNTY OF )

On this day of , __

WITNESS my hand and official seal hereto affixed the day and year in this certificate first above written.

, before me a notary public in and for the State of , duly commissioned and sworn, personally appeared , the person described in and who executed the foregoing Bond, and acknowledged to me that signed and sealed said Bond as a free and voluntary act and deed for the Surety so identified in foregoing Bond for the uses and purposes therein mentioned, and on oath stated that is authorized to execute said Bond for the Surety named therein.

(Signature of Notary Public) (Print or type name of Notary Public)

Notary Public in and for the State of residing at My commission expires . [SEAL]