Coach 2013 Annual Report Download - page 942

(ii) undertake to perform and complete the Construction Contract itself, through its agents or independent contractors;
(iii) obtain bids or negotiated proposals from qualified contractors acceptable to the Obligee for a contract for performance and completion of the
Construction Contract, arrange for a contract to be prepared for execution by the Obligee and a contractor selected with the Obligee's
concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the
Construction Contract, and pay to the Obligee the amount of damages as described in Section 6 in excess of the Balance of the Contract Price
incurred by the Obligee as a result of the Contractor Default; or
(iv) waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the
circumstances:
a) after investigation, determine the amount for which it may be liable to the Obligee and, as soon as practicable after the amount is
determined, make payment to the Obligee; or
b) deny liability in whole or in part and notify the Obligee, citing the reasons for denial.
5. If the Surety does not proceed as provided in Section 4, the Surety shall be deemed to be in default on this Bond seven (7) days after receipt of an
additional written notice from the Obligee to the Surety demanding that the Surety perform its obligations under this Bond, and the Obligee shall be
entitled to enforce any remedy available to the Obligee. If the Surety proceeds as provided in Section 4(iv), and the Obligee refuses the payment or the
Surety has denied liability, in whole or in part, without further notice the Obligee shall be entitled to enforce any remedy available to the Obligee.
6. If the Surety elects to act under Sections 4(i), 4(ii) or 4(iii), then the responsibilities of the Surety to the Obligee shall not be greater than those of the
Contractor under the Construction Contract, and the responsibilities of the Obligee to the surety shall not be greater than those of the Obligee under the
Construction Contract. Subject to the commitment by the Obligee to pay the Balance of the Contract Price, the Surety is obligated, without duplication,
for
(i) the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract;
(ii) additional legal, design professional and delay costs resulting from the Contractor's Default, and resulting from the actions or failure to act of
the Surety under Section 4; and
(iii) liquidated damages, or if no liquidated damages are specified in the Construction Contract, actual damages caused by delayed performance or
non-performance of the Contractor.
7. If the Surety elects to act under Section 4(i), 4(ii) or 4(iii), the Surety's liability is limited to the amount of this Bond.
8. The Surety shall not be liable to the Obligee or others for obligations of the Contractor that are unrelated to the Construction Contract, and the Balance of
the Contract Price shall not be reduced or set off on account of any such unrelated obligations. No right of action shall accrue on this Bond to any
person or entity other than the Obligee or its heirs, executors, administrators, successors and assigns.