CITY OF FRANKLIN DEFECT BOND
WE, ______, as Principal, and ______, as Surety, are bound to the City of Franklin, Virginia, a municipal corporation, (hereinafter “the City”) in the sum of $______lawful money of the United States, to be paid to the City and for the payment of which we bind ourselves and our heirs, executors, administrators, successors and assigns, jointly and severally, by this instrument dated the ____ day of ______, 20 ____.
Whereas, the said Principal hereunder has been granted permit(s) by the City to one or more of the following activities in accordance with approved plans, and the City has accepted the work by letter of approval, now, therefore, the Principal and Surety enter into this Bond for the purpose of guaranteeing repairs or corrections to defects in the work arising within 2 years after acceptance of the work or activity by the City and execution of this Bond on or before the ____day of ______, 20__.
( ) (1) Construct or reconstruct improvements in or for the public right of way as required by a site plan approved by the City;
( ) (2) Make repairs to or construct new improvements for the public infrastructure, public utilities or other public property in accordance with a contract entered into with the City and in keeping with the requirements of the city engineer;
( ) (3) Install improvements and utilities in a subdivision in the City and maintain them for the required two year period in accordance with the requirements of the City of Franklin Subdivision Ordinance;
( ) (4) Engage in land-disturbing activities in accordance with the City of Franklin Erosion and Sedimentation Control Ordinance and Program;
( ) (5) Enter on a public right of way or other public property to construct or repair poles, lines, conduits and related appurtenances on behalf of a private utility company;
( ) (6) Engage in Stormwater Management activities in accordance with the City of Franklin Stormwater Management Ordinance and Program; and/or
( ) (7) Engage in the following activities (Set forth below the activities to be engaged in within the City)
______
In the event of a defect requiring repairs or corrections the City of Franklin (“CITY”) shall notify the PRINCIPAL in writing of any defect for which the PRINCIPAL is responsible prior to the expiration of the defect period. Minor defects, as determined by the City, may be repaired at one time prior to the expiration of the defect period. Emergencies that involve loss of services or damage to property shall be repaired immediately. For other defects the PRINCIPAL shall have 30 days to investigate the defect and provide a plan of action to repair or correct the defect and submit a deadline for completion of the corrective action that can be no longer than 60 days without the consent in writing from the City of Franklin. If the PRINCIPAL shall fail to correct such defect within the time specified, then the SURETY shall have (60) days thereafter within which to take such action as it deems necessary to insure performance of the PRINCIPAL’s obligation. If such defect is not corrected after the expiration of such sixty-day period, then the CITY shall have the right to correct such defect and the PRINCIPAL and SURETY, jointly and severally, shall pay all costs and expenses incurred by the CITY in correcting such defect; including but not limited to, the engineering, legal and other costs, together with any damages either direct or consequential, which the CITY may sustain on account of PRINCIPAL’s failure to correct such defect. In addition, CITY shall have the right to contract for the correction of such defect and upon acceptance of the lowest responsible bid, the PRINCIPAL and SURETY shall become immediately liable for the amount of the said bid; and, in the event the CITY commences legal proceedings for the collection thereof, interest shall accrue on said amount at the rate of (6) percent per annum, beginning at the commencement of such legal proceedings. The CITY, in its discretion, may permit the SURETY to correct such defect in the event of the PRINCIPAL’s failure to perform. In the event the CITY commence suit for the collection of any sums due hereunder, the PRINCIPAL and the SURETY agree to pay all costs incurred by the CITY, including attorney’s fees.
Principal Name: ______Surety Name: ______
SSN or Tax ID No.: ______Bond No. ______
Address: ______Address: ______
______
Contact Person: ______Contact Person: ______
Phone No.: ______Phone No. ______
Signature: ______Atty. in Fact Name: ______*
Signature: ______
City Attorney: ______Date:______
Acknowledgment of Principal
State of Virginia
City/County of ______, to-wit:
I, the undersigned Notary Public in and for the State of Virginia at Large, do certify that ______, whose name as Principal or representative of Principal is signed to the foregoing surety bond dated the _____ day of ______, 20 ____, personally appeared before me and acknowledged the same.
Given under my hand and seal this ____ day of ______, 20___.
My Commission expires on ______. ______
Notary Public
Affidavit and Acknowledgment of Surety
State of Virginia
City/County of ______to-wit:
I, the undersigned Notary Public in and for the State of Virginia at Large, do certify that ______, (Attorney in Fact’s name) personally appeared before me and made oath that he/she is an Attorney in Fact for ______(Name of Surety Company), that he/she is duly authorized to execute the foregoing bond by virtue of a certain power of attorney of said company, that the said power of attorney designating ______(Name) as its Attorney in Fact is recorded in the Clerk’s Office of the Circuit Court of ______, Virginia and has not been revoked, that the said company has complied with all the laws regulating the admission of such companies to transact business in the State of Virginia, that the said company holds a certificate from the Commissioner of Insurance authorizing it to do business in the State of Virginia, , that the penalty of the foregoing bond is not in excess of ten percent of its paid up capital, surplus and undivided profits, that the surety company is solvent and fully able to meet promptly all its obligations and that the said ______(Name) as its Attorney thereupon in the name of and on behalf of the said company acknowledged the foregoing writing as its act and deed.
Given under my hand and seal this ____ day of ______, 20___.
My Commission expires on ______. ______
Notary Public
*Attach Certified Copy of Power of Attorney to this Surety Bond
Form 4-24-12