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Whenever Contractor shall be, and declared by Owner to be in default under the Contract, the Owner having performed Owner's obligations{hereunder, the Surety may promptly remedy the default, ot'shall promptly 1. Complete the Contract in accordance with its terms and conditions, or 2. Obtain a bid or bids for submission to Owner for completing the Contract in accordance with its terms and conditions, and upon determination by Surety of the lowest responsible bidder, or, if the Owner elects, upon determination by Owner and the Surety jointly of the lowest responsible bidder, arrange for a contract between such bidder and Owner, and make available as Work progresses (even though there should be a default or a succession of defaults under the contract or contracts of completion arranged under this paragraph) sufficient funds to pay the cost of completion less the balance of the contract price; but not exceeding, including other costs and dan.ages for which the Surety may be liable hereunder, the amount set forth in the first paragraph hereof. The term "balance of the contract price," as used in this paragraph, shall mean the total amount payable by Owner to Contractor under the Contract and any amend- ments thereto, less the amount properly paid by Owner to Contractor. Any suit under this bond must be instituted before the expiration of two (2) years from the date on which final payment under the contract falls due. No right of action shall accrue on this bond to or for the use of any person or corpora tion other than the Owner named herein or the heirs, executors, administrators or successors of Owner. Signed and sealed this ! day of ~ ,19 86 . , (Witness) ~'): ~, (Seal):- 0 Princ!pal;: , ~~ TEZAK CONSTRUCTION COo,', INC. ~ .: ~~Cbo~ SAFECO INSURANCE COMPAN F AMERICA ",..' ,;. . ...."- ,'\. - ... '....' .' . - (Witness) . .