THIS AGREEMENT is executed and delivered by the undersigned [hereinafter called “Principal(s)” which term shall also include any Co-principal] to the BONDING COMPANY [hereinafter called “company”], as part of the consideration for the company executing as surety the bond(s) or undertaking(s) described in the Principal(s)’ application which is incorporated in and made a part of this agreement.
The Principal(s) represent, covenant, warrant and agree to the following:
1. Premiums
The Principal(s) shall pay to the company or its duly authorized agent, the fee(s) [hereinafter called “premiums”] specified in the application at the times and in the amounts stated in the application. The premium is fully earned by the company upon the execution of the bond(s) or undertaking(s) and shall not be subject to refund or proration.
2. Indemnification
The Principal(s), jointly and severally, shall at all times indemnify and save the company harmless from and against any and all claims, demands, liabilities, costs, charges, legal fees, disbursements, and expenses of every kind and nature, which the company shall at any time sustain or incur, as well as from all orders, decrees, judgements, and adjudications involving the company by reason or in consequence of having executed the bond(s) or undertaking(s) described in the application. The Principal(s) shall pay over, reimburse, and make good to the company any and all sums and amounts of money required to meet any and every claim, demand, liability, cost, expense, suit, order, decree, adjudication, fee, or payment (including but not limited to legal fees) involving the company by reason of the execution of the bond(s) or undertaking(s) described in the application and any other bond or undertaking executed in the behalf or at the request of the Principal(s) of any of them and before the company shall be required to pay. The liability for legal fees and disbursements includes all legal fees and disbursements that the company may pay or incur, but not limited to a proceeding in which the company may assert or defend its right to collect or charge for any legal fees and/or disbursements incurred in that or any other proceeding.
3. Notice to Company
The Principal(s) shall immediately notify the company at its principal office in Nashville, Tennessee, at its Bond Division, of the receipt of any demand, notice, commencement of any proceeding, or fixing of any liability which the company may be required to discharge by reason the execution of the bond(s) or undertaking(s) described in the application.
4. Evidence of Payment
A receipt, cancelled check, or other evidence of payment by the company, in discharge of any obligation under or incurred in connection with any bond(s) or undertaking(s) in the application, or incurred in connection with any security held by the company, shall be conclusive evidence against the Principal(s) of the fact and amount of the obligation of the Principal(s) to the company.
5. Co-Sureties / Reinsurance
If the company executes any bond or undertaking with co-sureties, reinsures any portion of any bond or undertaking, or procures another surety to execute any bond or undertaking, all of the terms and conditions of this agreement shall apply to and operate for the benefit of the company, the procured sureties and/or reinsurers as their respective interests may appear.
6. Assignment
The company may, at any time, without notice to or the prior consent of the Principal(s), transfer and/or assign this agreement and/or any security pledged by the Principal(s) to any reinsurer, co-surety, insurance company, or transferee which may take over and assume, in whole or in part, the obligation(s) of the company under any bond(s) or undertaking(s) described in this application. After transfer or assignment, the transferee shall become vested with all of the powers and rights of the company, and the company shall be relieved and fully discharged from any liability or responsibility to the Principal(s), including, but not limited to any liability or responsibility for any security pledged pursuant to this agreement.
7. Company’s Discretion
THE COMPANY MAY AT ANY TIME AND IN ITS SOLE DISCRETION, TAKE SUCH STEPS AS IT DEEMS NECESSARY TO PROTECT ITSELF FROM ANY LOSS, COST, OR EXPENSE OR TO OBTAIN ITS RELEASE FROM ANY AND ALL OBLIGATIONS UNDER ANY BOND OR UNDERTAKING. THE COMPANY SHALL NOT BE REQUIRED TO DISCLOSE ANY FACT OR INFORMATION OR GIVE NOTICE OF ANY FACT OR INFORMATION TO THE PRINCIPAL(S) UPON WHICH ANY ACTION TAKEN BY THE COMPANY IS BASED. THE COMPANY MAY ACT OR REFUSE TO ACT IN ANY MANNER THAT IT, IN ITS SOLE DISCRETION, DEEMS PROPER, WHICH IN THE CASE OF APPEARANCE BONDS, MAY INCLUDE BUT NOT BE LIMITED TO SURRENDER OF THE DEFENDANT, EITHER BEFORE OR AFTER THE RENDERING OF A CONDITIONAL OR FINAL FORFEITURE AND/OR EITHER BEFORE OR AFTER THE RENDERING OF A EXPENSE WHICH THE COMPANY MAY SUSTAIN OR INCUR IN OBTAINING RELEASE OR IN SECURING ITSELF AGAINST LOSS, COST, OR EXPENSE SHALL BE BORNE AND PAID BY THE PRINCIPAL(S).
8. Power of Attorney
The Principal(s) hereby authorize and appoint the company as Principal(s)’ attorney in fact to appear for the Principal(s) in and before any court in any action or proceeding, to receive process on behalf of the Principal(s) or waive the issuance and service of process, to enter or confess judgement or permit judgement to be entered against the Principal(s) jointly and severally and in favor of the company, to release all errors, to waive all rights to a stay of execution or appeal, and to do so and perform all acts and execute all documents in the name of the Principal(s) in order to carry into effect the authority granted in this paragraph as fully and completely as the Principal(s) might do if personally present, hereby ratifying and confirmation all that the Principal(s)’/ attorney in fact shall do or cause to be done by virtue of the grant of this power of attorney.
9. Binding Effect
This agreement binds the Principal(s), jointly and severally, and the Principal(s)’ heirs, personal representatives, executors, administrators, successors, and, if permitted, assigns.
10. Company’s Right to Refuse
The company reserves the right to refuse to execute the bond(s) or undertaking(s) for which the application is made. The Principal(s) shall not have a claim or cause of action against the company based on the obligee or any third party’s refusal to accept the company as surety or a third party’s rejection of the bond(s) or undertaking(s).
11. Representations and Warranties
As a further inducement to the company to act as surety on the bond(s) or undertaking(s), the Principal(s) represent and warrant that the statements made in this agreement and the answers supplied for insertion in the application are true, made without reservation, and do not misstate or fail to completely state the information given or requested. The Principal(s) acknowledge that the company is relying upon the information supplied to it by the Principal(s) and the representations, warranties, and promises contained in this agreement as a part of the consideration received by it for acting as surety.
12. Enforcement Rights
The company may enforce its rights against any one or all of the Principal(s) as the company, in its sole discretion, shall determine. The company shall not be required to proceed first against any particular Principal(s) before being able to proceed against any other Principal(s). The Principal(s) hereby expressly waive the benefit of any rule or law requiring the company to proceed against one of the Principal(s) before proceeding against any other Principal(s). The Principal(s) hereby irrevocably waive the benefit or advantage of any and all exceptions or exemptions however designated, now in force, hereafter enacted or recognized, and whether created by the statutory, common, or cannon law of this state, any other state, the United States, or any other country.