The Undersigned hereby declares, without reservation, that the representations above are true and are made to induce the Surety to issue the bond(s) applied for.
The Undersigned agrees that the Surety, at its sole discretion, may decline, cancel, or terminate the bond(s) applied for without incurring any liability to the Undersigned.
In consideration of the issuance of the bond(s), including any substitute, successor, renewal, continuation, increase, or extension thereof, the Undersigned jointly and severally agrees as follows:
- Authorization – Authorizes the Surety to obtain credit reports and make inquiries with financial institutions, individuals, firms, and corporations to:
- Verify information provided.
- Evaluate the application for underwriting purposes.
- Enforce any rights the Surety has under this agreement.
- Premium Payments – Agrees to pay the required premium upon execution of the bond(s) and annually in advance thereafter.
- Termination Evidence – Agrees to provide satisfactory proof that all liability under the bond(s) has been terminated.
- Indemnification – Agrees to perform all obligations under the bond(s), reimburse the Surety for all payments made on account of the bond(s), and defend, indemnify, and hold the Surety harmless against all claims, liabilities, losses, costs, damages, penalties, expenses, and attorney’s fees arising from:
- The issuance of the bond(s).
- Obtaining a release or evidence of termination.
- Enforcing any provision of this agreement.
- Claims Settlement – Acknowledges that the Surety has the exclusive right to investigate, adjust, settle, or compromise any claim based on actual or potential liability, unless the Undersigned requests litigation in writing and immediately provides collateral satisfactory to the Surety.
- Evidence of Loss – Agrees that the Surety’s itemized statement of losses and expenses shall serve as prima facie evidence of the Undersigned’s liability.
- Collateral Security – Agrees to deposit, upon demand, any amount the Surety determines necessary to cover claims, lawsuits, expenses, or judgments. Such funds shall serve as collateral security for any bond issued.
- Waiver of Notice – Waives notice of any claims, demands, or information received by the Surety concerning the principal or the bond(s).
- Security Interest – Grants the Surety a security interest in all monies, deposit accounts, accounts receivable, chattel paper, documents of title, intangibles, and other property in which the Undersigned has an interest. This agreement shall constitute both a Security Agreement and Financing Statement under the Uniform Commercial Code where applicable.
- Continuing Obligation – Agrees that this is a continuing obligation that may only be terminated by written notice to the Surety. The effective date of termination shall be no less than 30 days after the Surety receives such notice. Termination does not release the Undersigned from any obligations or liabilities arising during the term of this agreement, regardless of when they become known to the Surety.
Regardless of the date this Indemnity Agreement is signed, it shall be effective as of the execution date of the bond(s) referenced above, pursuant to the promises and agreements made by the Undersigned.
