New_Bonds_(SHARP).docx

NON-PROFIT CORPORATION OR LIMITED PARTNERSHIP ENTITY

PERFORMANCE BOND

Bond No. ______________________ KNOW ALL BY THESE PRESENTS, that WHEREAS, __________________________________ (“Owner”), including its successors and permitted assigns, and including Sacramento Housing Authority Repositioning Program, Inc. (“SHARP”) and/or any affiliated limited partnership, limited liability company, or other ownership entity of the Project, if applicable, as Obligee, has entered into a written Construction Contract dated __________ with:

________________________________________ (Full legal name of Contractor), as Principal (hereinafter “Contractor”), for the Project known as _______________________________________ (“Project”), in accordance with the Contract Documents, which Contract is by reference made a part hereof and is hereinafter referred to as the "Contract"; and WHEREAS, __________________________________ (Bonding Company), a corporation duly licensed under the laws of the State of California, is Surety (hereinafter “Surety”) for the Contractor under this Bond;

WHEREAS, Contractor and Surety are held and firmly bound unto the Owner, as Obligee, in the penal sum of ____________________________________ Dollars ($_____________), for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Contractor shall promptly and faithfully perform said Contract, then this obligation shall be null and void; otherwise, it shall remain in full force and effect.

Surety hereby waives notice of any alteration or extension of time made by the Owner, and its obligation is not affected by any such alteration or extension provided the same is within the scope of the Contract. The Surety further waives the provisions of California Civil Code Sections 2819 and 2845, and agrees that no change, extension of time, alteration, or addition to the Contract shall in any way affect its obligations under this Bond.

Whenever Contractor shall be, and is declared by the Owner to be in default under the Contract, the Owner having performed its obligations thereunder, the Surety shall promptly:

1. Complete the Contract in accordance with its terms and conditions; or

2. Obtain a bid or bids for completing the Contract in accordance with its terms and conditions, and upon determination by the Owner and the Surety jointly of the lowest responsive and responsible bidder, arrange for a contract between such bidder and the Owner, and make available as work progresses sufficient funds to pay the cost of completion, less the balance of the Contract price, but not exceeding, including other costs and damages for which the Surety may be liable hereunder, the amount set forth above.

The term “balance of the Contract price” shall mean the total amount payable by Owner to Contractor under the Contract and any amendments thereto, less the amount properly paid by Owner to Contractor.

No right of action shall accrue on this bond to or for the use of any person or corporation other than the Obligee named herein or its successors and permitted assigns.

As a condition precedent to final completion, this obligation shall remain in full force and effect for a period of one (1) year after completion and acceptance of the Work, during which time the Surety shall be responsible for defects in workmanship or materials as required under the Contract.

Signed and sealed this ______ day of ________________, 20_____.

Principal (Seal)

(Witness)

(Title)

(Surety)

(Witness)

By:

(Attorney-in-fact)

The Power of Attorney of persons signing for the Surety Company must be attached.

NOTE:

Date of Performance Bond must not be prior to date of Contract.

Bond shall be for 100% of the Contract price unless otherwise approved by Owner.

END OF SECTION

NON-PROFIT CORPORATION OR LIMITED PARTNERSHIP ENTITY

LABOR & MATERIAL PAYMENT BOND

LABOR & MATERIAL PAYMENT BOND

Bond No. ______________________ KNOW ALL BY THESE PRESENTS, that WHEREAS, __________________________________ (“Owner”), including its successors and permitted assigns, and including Sacramento Housing Authority Repositioning Program, Inc. (“SHARP”) and/or any affiliated limited partnership, limited liability company, or other ownership entity of the Project, if applicable, as Obligee, has entered into a written Construction Contract dated __________ with:

________________________________________ (Full legal name of Contractor), as Principal (hereinafter “Contractor”), for the Project known as _______________________________________ (“Project”), in accordance with the Contract Documents, which Contract is by reference made a part hereof and is hereinafter referred to as the "Contract"; and WHEREAS, __________________________________ (Bonding Company), a corporation duly licensed under the laws of the State of California, is Surety (hereinafter “Surety”) for the Contractor under this Bond;

WHEREAS, Contractor and Surety are held and firmly bound unto the Owner and Obligee in the penal sum of _________________________________________________Dollars ($_____________), for the payment whereof Contractor and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that, if Principal shall promptly make payment to all claimants, as hereinafter defined, for all labor and material used or reasonably required for use in the performance of the Contract, then this obligation shall be void; otherwise it shall remain in full force and effect, subject to the following conditions:

1. A claimant is defined as one having a direct contract with the Principal or with a subcontractor of the Principal for labor, material, or both, used or reasonably required for use in the performance of the Contract. Labor and material shall include water, gas, power, light, heat, oil, gasoline, telephone service, rental of equipment, or other items directly applicable to the Contract.

2. The Principal and Surety jointly and severally agree with the Obligee that every claimant as herein defined who has not been paid in full before the expiration of ninety (90) days after the date on which the last of such claimant’s labor was done or material furnished may sue on this bond for the use of such claimant, prosecute the suit to final judgment, and have execution thereon. The Obligee shall not be liable for the payment of any costs or expenses of such suit.

3. No suit shall be commenced hereunder by any claimant:

a. Unless claimant, other than one having a direct contract with Principal, has given written notice to any two of the following: the Principal, the Owner, or the Surety, within ninety (90) days after the last labor was performed or material supplied;

b. After the expiration of one (1) year following the date on which the last labor was performed or material supplied;

c. Other than in a court of competent jurisdiction in the county where the Contract was to be performed.

4. The amount of this bond shall be reduced by any payments made in good faith hereunder, including payment of mechanics’ liens filed against the Project.

5. This bond is issued pursuant to California Civil Code Sections 9550 through 9566 and shall inure to the benefit of all persons entitled to make a claim under said sections.

6. The Surety hereby waives the provisions of California Civil Code Sections 2819 and 2845 and agrees that no change, extension of time, alteration, or addition to the Contract shall affect its obligations under this Bond.

7.

Signed and sealed this ______ day of ________________, 20_____.

Principal (Seal)

(Witness)

(Title)

(Surety)

(Witness)

By:

(Attorney-in-fact)

The Power of Attorney of persons signing for the Surety Company must be attached.

NOTE:

Bond shall be for 100% of the Contract price unless otherwise approved in writing by the Owner.

END OF SECTION