additional or other assignments,documents or papers deemed necessary and proper by Surety in order
<br /> to give full effect not only to the intent and meaning of the within assignments, but also to the full
<br /> protection intended to be herein given to Surety Linder all other provisions of this Agreement. The
<br /> Principal and Indemnitors hereby specifically affirm, ratify and confirm all actions taken or to be taken
<br /> by Surety and its designees as their attorney-in-fact. The Principal and Indemnitors agree to use their
<br /> best efforts to effectuate all provisions of this paragraph. This power is coupled with an interest and
<br /> will survive the death or incapacity of any Principal or Indemnitor.
<br /> 9, Assignment. Upon the occurrence of an Event of Default.
<br /> 9.1. Surety shall have the right, but not the obligation, to take possession of the work under any
<br /> Contract and to complete such Contract or cause or consent to the completion thereof, with any
<br /> cost thereof being a toss, if any, for which both Principal and Indemnitors,jointly, severally and
<br /> individual are liable therefor;
<br /> 91.1ndemnitors hereby assign,transfer,and set over to the Surety all of their rights under a Contract,
<br /> including: (1) their right, title and interest in and to all subcontracts let in connection with such
<br /> Contract; (ii) all machinery, plant, equipment, tools and materials upon the site of the work or
<br /> elsewhere for the purposes of the Contract, including all material ordered for the Contract; (III)all
<br /> patents, licenses, permits and computer software used for the performance of any Contract, and
<br /> (iv)any and all sums due under the Contract at the time of the Event of Default or which thereafter
<br /> becomes due; and
<br /> 9.3, In addition to all other rights, Surety is assigned any and all Contract balances on any Project for
<br /> which the Bond has been given. The owner or Obligee, upon demand as a material condition of
<br /> this Bond being furnished, shall pay to the Surety any and all Contract balances.
<br /> 9.4, The Surety is irrevocably given all rights, but not obligations, of Principal and Indemnitors. The
<br /> axercise of such rights, if any, is in the sole discretion of the Surety.
<br /> 9.5. Indemnitors hereby authorize Surety to endorse in the name of the payee, and to receive and
<br /> collect any check, draft, warrant or other instrument made or issued in payment of funds to be
<br /> used by Surety as Surety, In its sole discretion,deems appropriate.
<br /> 10. Trust Funds. All payments due or received for or on account of any Contract, whether or not in the
<br /> possession of Principal or any Indemnitor, will be held in trust as trust funds by Principal and
<br /> Indemnitors for the benefit and payment of all obligations for which Surety may be liable under any
<br /> Bond. The Surety may open a trust account or accounts with a bank for the deposit of the trust funds.
<br /> Upon demand, Principal and Indemnitors shall deposit therein all trust funds received. Withdrawals
<br /> frorn such trust accounts require the express writ en consent of Surety, The Principal and Indemnitors
<br /> represent and warrant that each shall strictly follow the New York State Lien Law Article 3-A statutes,
<br /> and cases decided thereunder, requirements.
<br /> 11. Changes to Bond. The Surety is authorized, without notice to or consent from Principal or any
<br /> Indemnitor, to consent to any change in any Bond, including any increase or decrease in the penal
<br /> limits,of such Bond. The Indemnitors' obligations to Surety shall remain unchanged, even if such
<br /> consent substantially increases Indemnitors'obligation. The Indemnitors acknowledge and agree that
<br /> they are responsible for remaining fully informed about the status and progress of the performance of
<br /> any Contract and Project for which the Bond has been furnished. The Surety has no obligation to
<br /> inform Indemnitors in respect of the issuance or execution of any Bond, or the renewal, extension,
<br /> alteration, or modification of any Bond.
<br /> 12. Co-Sureties. In the event Surety procures the execution of Bonds by other sureties, executes Bonds
<br /> with co-sureties, or reinsures any portion of said Bonds with reinsuring sureties, then all the terms and
<br /> conditions of this Agreement will inure, and be automatically assigned to the extent of their respective
<br /> consideration,to the benefit of such other sureties,co-sureties and reinsuring sureties,their successors
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