Academic journal article Defense Counsel Journal

Project Update 1995: Illustrative Provisions of a General Indemnity Agreement Taken in Connection with Contract Surety Bonds

Academic journal article Defense Counsel Journal

Project Update 1995: Illustrative Provisions of a General Indemnity Agreement Taken in Connection with Contract Surety Bonds

Article excerpt

Introduction                                                   260
Definitions                                                    260
Illustrative Provisions and Annotations                        261
  I. Rights of Surety Prior to Payment of Any Loss             261

     A. Right to Indemnity Against Liability                   261

     B. Right to Deposit of Collateral                         261

     C. Right to Have Indemnitors Obtain Release of Surety     262

     D. Right to Have Access to Principal's and                263

        Indemnitors' Books and Records

     E. Right to Financial Information from Third Parties      263

     F. Right to Refuse Execution of Any Bond                  263

 II. Rights of Surety to Indemnity Against Loss or Expense     264

     A. Indemnity Against Loss                                 264

     B. Indemnity Against Expenses, Including Counsel          264

        Fees Incurred by Reason of Execution of Bond

     C. Indemnity Against Expenses Incurred to Enforce         265

        Provisions of Indemnity Agreement Itself
III. Provisions to Minimize Surety's Loss                      265

     A. Assignment of Subcontracts                             265

     B. Assignment of Material and Equipment on Bonded

        Projects                                               266

     C. Right of Surety to Take Over or Complete Performance   266

        of Bonded Contracts

     D. Right of Surety to Finance Principal                   266

     E. Provision Making Principal Trustee of Contract Funds   267

     F. Right to Compromise or Settle Claims                   267

     G. Principal's Obligation to Cooperate in Defense of

        Claims                                                 268
 IV. Provisions to Maximize Surety's Recovery                  268

     A. Assignment of Receivables on Bonded Contracts          268

     B. Assignment of Receivables on Non-Bonded Contracts      268

     C. Assignment of Claims and Right to Prosecute Them       269

     D. Subordination of Other Debts to Surety's Claims        269

  V. Procedural Provisions to Aid Enforcement of Agreement     269

     A. Voucher or Proof of Payment Prima Facie Evidence       269

        of Indemnitor's Liability

     B. Right to Indemnity for Payments Made in Good Faith     270

     C. Confessed Judgment                                     271

     D. Power of Attorney                                      271

     E. UCC Recording Provisions and Requirements              261

     F. Waiver of Notice and Defenses                          261

     G. Waiver of Trial by Jury                                272

     H. Waiver of Homestead and Other Exemptions               272

 VI. Provisions Related to Enforcement or Scope of Indemnity

     Agreement                                                 272

     A. Bonds Executed Prior to Agreement                      272

     B. Rights of Co-Sureties or Reinsurers                    272

     C. … 
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