Md. Code Regs. 21.07.02.10
Mandatory provision for all construction contracts exceeding $100,000:
PERFORMANCE BOND
Principal | Business Address of Principal |
Surety a corporation of the State of_________________ and authorized to do business in the State of Maryland | Obligee STATE OF MARYLAND |
Penal Sum of Bond (express in words and figures) ________________________________ Description of Contract Contract Number:____________________ | Date of Contract __________, 20___ Date Bond Executed __________, 20___ |
KNOW ALL [MEN] BY THESE PRESENTS, That we, the Principal named above and Surety named above, are held and firmly bound unto the Obligee named above in the Penal Sum of this Performance Bond stated above, for the payment of which Penal Sum we bind ourselves, our heirs, executors, administrators, personal representatives, successors, and assigns, jointly and severally, firmly by these presents. However, where Surety is composed of corporations acting as co-sureties, we the co-sureties, bind ourselves, our successors and assigns, in such Penal Sum jointly and severally as well as severally only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each co-surety binds itself, jointly and severally with the Principal, for the payment of such sum as appears above its name below, but if no limit of liability is indicated, the limit of such liability shall be the full amount of the Penal Sum.
WHEREAS, Principal has entered into or will enter into a contract with the State of Maryland, by and through the Administration named above acting for the State of Maryland, which contract is described and dated as shown above, and incorporated herein by reference. The contract and all items incorporated into the contract, together with any and all changes, extensions of time, alterations, modifications, or additions to the contract or to the work to be performed thereunder or to the Plans, Specifications, and Special Provisions, or any of them, or to any other items incorporated into the contract shall hereinafter be referred as "the Contract."
WHEREAS, it is one of the conditions precedent to the final award of the Contract that these presents be executed.
NOW, THEREFORE, during the original term of said Contract, during any extensions thereto that may be granted by the Administration, and during the guarantee and warranty period, if any, required under the Contract, unless otherwise stated therein, this Performance Bond shall remain in full force and effect unless and until the following terms and conditions are met:
Whenever Principal shall be declared by the Administration to be in default under the Contract, the Surety may, within 15 days after notice of default from the Administration, notify the Administration of its election to either promptly proceed to remedy the default or promptly proceed to complete the contract in accordance with and subject to its terms and conditions. In the event the Surety does not elect to exercise either of the above stated options, then the Administration thereupon shall have the remaining contract work completed, Surety to remain liable hereunder for all expenses of completion up to but not exceeding the penal sum stated above.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligation on this Performance Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the Specifications.
This Performance Bond shall be governed by and construed in accordance with the laws of the State of Maryland and any reference herein to Principal or Surety in the singular shall include all entities in the plural who or which are signatories under the Principal or Surety heading below.
IN WITNESS WHEREOF, Principal and Surety have set their hands and seals to this Performance Bond. If any individual is a signatory under the Principal heading below, then each such individual has signed below on his or her own behalf, has set forth below the name of the firm, if any, in whose name he or she is doing business, and has set forth below his or her title as a sole proprietor. If any partnership or joint venture is a signatory under the Principal heading below, then all members of each such partnership or joint venture have signed below, each member has set forth below the name of the partnership or joint venture, and each member has set forth below his or her title as a general partner, limited partner, or member of joint venture, whichever is applicable. If any corporation is a signatory under the Principal or Surety heading below, then each such corporation has caused the following: the corporation's name to be set forth below, a duly authorized representative of the corporation to affix below the corporation's seal and to attach hereto a notarized corporate resolution of power of attorney authorizing such action, and each such duly authorized representative to sign below and set forth below his or her title as a representative of the corporation. If any individual acts as a witness to any signature below, then each such individual has signed below and has set forth below his or her title as a witness. All of the above has been done as of the Date of Bond shown above.
In Presence of: Witness: ____________________as to | Individual Principal __________________(SEAL) |
In Presence of: Witness: _____________________________ _______________________as to _______________________ as to _______________________ as to | Co-Partnership Principal ______________________(SEAL) (Name of Co-Partnership) By:________________________ (SEAL) ________________________(SEAL) _________________________(SEAL) |
Attest: _____________________as to Corporate Secretary | Corporate Principal _______________________ (Name of Corporation) AFFIX By________________: CORPORATE President SEAL |
Attest: (SEAL) _________________ Signature Bonding Agent's Name:_________________ Agent's Address_________________ | _______________________ (Corporate Surety) By:________________SEAL Title_______________________ ___________________________ (Business Address of Surety) |
Approved as to legal form and sufficiency this___ day of_______ 20___ ____________________________ Asst. Attorney General |
PAYMENT BOND
| Principal | Business Address of Principal |
| Surety | Obligee |
| a corporation of the State of _____________________ | STATE OF MARYLAND |
| and authorized to do business in the State of Maryland | By and through the following Administration .................................................... |
| Penal Sum of Bond (express in words and figures) _________________________________________ | Date of Contract _____________________, 20_____ |
| Description of Contract Contract Number: _________________________ | Date Bond Executed_____________________, 20_____ |
KNOW ALL MEN BY THESE PRESENTS, That we, the Principal named above and Surety named above, being authorized to do business in Maryland, and having business address as shown above, are held and firmly bound unto the Obligee named above, for the use and benefit of claimants as hereinafter defined, in the Penal Sum of this Payment Bond stated above, for the payment of which Penal Sum we bind ourselves, our heirs, executors, administrators, personal representatives, successors, and assigns, jointly and severally, firmly by these co-sureties, bind ourselves, our successors and assigns, in such Penal Sum jointly and severally as well as severally only for the purpose of allowing a joint action or actions against any or all of us, and for all other purposes each co-surety binds itself, jointly and severally with the Principal, for the payment of such sum as appears above its name below, but if no limit of liability is indicated, the limit of such liability shall be the full amount of the Penal Sum.
WHEREAS, Principal has entered into or will enter into a contract with the State, by and through the Administration named above acting for the State of Maryland, which contract is described and dated as shown above, and incorporated herein by reference. The contract and all items incorporated into the contract, together with any and all changes, extensions of time, alterations, modifications, or additions to the contract or to the work to be performed thereunder or to the Plans, Specifications, and Special Provisions, or any of them, or to any other items incorporated into the contract shall hereinafter be referred to as the "Contract".
WHEREAS, it is one of the conditions precedent to the final award of the Contract that these presents be executed.
NOW THEREFORE, the condition of this obligation is such that if the Principal shall promptly make payment to all claimants as hereinafter defined, for all labor and materials furnished, supplied and reasonably required for use in the performance of the Contract, then this obligation shall be null and void; otherwise it shall remain in full force and effect, subject to the following conditions:
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligation on this Payment Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the Specifications.
This Payment Bond shall be governed by and construed in accordance with the laws of the State of Maryland and any reference herein to Principal or Surety in the singular shall include all entities in the plural who or which are signatories under the Principal or Surety heading below.
IN WITNESS WHEREOF, Principal and Surety have set their hands and seals to this Payment Bond. If any individual is a signatory under the Principal heading below, then each such individual has signed below on his or her own behalf, has set forth below the name of the firm, if any, in whose name he or she is doing business, and has set forth below his or her title as a sole proprietor. If any partnership or joint venture is a signatory under the Principal heading below, then all members of each such partnership or joint venture have signed below, each member has set forth below the name of the partnership or joint venture, and each member has set forth below his or her title as a general partner, limited partner, or member of joint venture, whichever is applicable. If any corporation is a signatory under the Principal or Surety heading below, then each such corporation has caused the following: the corporation's name to be set forth below, a duly authorized representative of the corporation to affix below the corporation's seal and to attach hereto a notarized corporate resolution of power of attorney authorizing such action, and each such duly authorized representative to sign below and set forth below his or her title as a representative of the corporation. If any individual acts as a witness to any signature below, then each such individual has signed below and has set forth below his or her title as a witness. All of the above has been done as of the Date of Bond shown above.
| In Presence of: | Individual Principal |
| Witness:__________________________________ as to | _____________________________________(SEAL) |
| In Presence of: | Co-Partnership Principal |
| Witness: | _____________________________________(SEAL) |
| (Name of Co-Partnership) | |
| __________________________________ as to | By:__________________________________(SEAL) |
| __________________________________ as to | _____________________________________(SEAL) |
| __________________________________ as to | _____________________________________(SEAL) |
| Corporate Principal | |
| ______________________________________ | |
| Attest: | (Name of Corporation) |
| AFFIX | |
| __________________________________ | By: _____________________________ CORPORATE |
| Corporate Secretary | President SEAL |
| ______________________________________ | |
| (Corporate Surety) | |
| Attest: (SEAL) | By: _____________________________ SEAL |
| ______________________________________ | Title______________________________________ |
| Signature | |
| Bonding Agent's Name: ____________________ | ______________________________________ |
| (Business Address of Surety) | |
| Agent's Address __________________________ | |
| Approved as to legal form and sufficiency this | |
| ______ day of _____________ 20 __ | |
| ______________________________________ | |
| Asst. Attorney General | |
Md. Code Regs. 21.07.02.10
Regulation .10 amended effective 42:5 Md. R. 488, eff.3/16/2015 ; amended effective 46:5 Md. R. 310, eff. 3/11/2019