Term of Service
IN CONSIDERATION of the execution of the bond for which application is made, the undersigned Owner / Applicant, and any additional Indemnitors (collectively, “Indemnitors”) for themselves, their personal representatives, heirs, successors and assigns, hereby agree with, warrant and represent to, and bind themselves jointly and severally to, Lexington National Insurance Corporation and their co-sureties, reinsurers, and any other company which may execute a bond or bonds at the request of any of them, (individually and collectively called “Surety”) as follows:
- Indemnitors agree to pay Surety an advanced premium for the first year or a fractional part thereof that is earned and the amount due annually thereafter in accordance with Surety’s then current premium rates or any minimum earned premium until Surety shall be discharged or released from any and all liability and responsibility under said bond, and all matters arising therefrom, and until competent written legal evidence of such discharge or release, satisfactory to Surety, is furnished to Surety.
- Indemnitors agree that Surety may make any credit checks, including consumer and investigative credit checks, it deems necessary.
- Indemnitors warrant and represent that the questions answered, and information furnished in connection with the application are true and correct.
- Indemnitors agrees to indemnify and keep indemnified Surety and its agents and representatives and hold and save it them harmless from and against any and all liability, damage, loss, cost and expense of whatsoever kind or nature, including counsel, experts’ and attorneys’ fee, which Surety or its agents or representatives may at any time sustain or incur by reason or in consequence of have executed or procured the execution of the bond or enforcing this agreement against any of the undersigned or in procuring or in attempting to procure its release from liability under the bond.
- If Surety shall set up a reserve to cover any liability, claims, suit, or judgment under said bond, the undersigned will, immediately upon demand, deposit with Surety a sum of money, equal to such reserve and any increase thereof, to be held by Surety as collateral security on said bond. Any such collateral shall be available, in the discretion of Surety, as collateral security on any other or all bonds heretofore or hereafter executed for at the requests of any of the undersigned.
- Indemnitors hereby grant to Surety a security interest in, and lien on, all of their furniture, fixtures, equipment, office equipment, books and records, documents, accounts, deposit accounts, investment property, security accounts and security entitlements, accounts receivable, chattel paper, instruments, letter of credit rights, contract rights and contract proceeds, machinery, plant, inventory, insurance policies, vehicles, tools, real property, and general intangibles, and agree that Surety may perfect any interest granted herein by filing or otherwise .
- If Surety shall procure any other company or companies to execute or join with it in executing, or to reinsure said bonds, this instrument shall insure to the benefit of such other company or companies, its or their successors and assigns, to give it or them a direct right of actions against the Indemnitors to enforce the provisions of this instrument.
- An itemized statement of payments made, and expenses incurred, by Surety, sworn to by an officer of Surety, shall be prima facie evidence of the liability of the Indemnitors to reimburse Surety for such payments.
- Surety in its sole discretion and without notice to the undersigned, is hereby authorized but not required from time to: (a) make or consent to any change in said bond or to issue or caused to be issued any substitutions, revisions, or renewals thereof, and this instrument shall apply to such substituted or changed bond or renewal and the surety thereon; (b) take such action as it may deem appropriate to prevent or minimize loss under said bond, including but not limited to steps to cancel or procure discharge from liability under said bonds, and (c) adjust, settle or compromise any claim or suit arising under said bond and, with respect to any such claims or suits, to take any action it may deem appropriate and any adjustment, settlement or compromise made or action taken by Surety shall be conclusive against and binding upon the Indemnitors.
- Indemnitors agree to pay the full amount of the foregoing regardless of (a) the failure of the principal or any Applicant, Owner, or Indemnitor to sign any such bond or (b) any claims that other indemnity, security or collateral was to have been obtained or (c) the release, return or exchange by Surety with or without the consent of the undersigned, of any indemnity, security, or collateral that may have been obtained or (d) the fact that any party signing this instrument is not bound for any reason.
- Indemnitors hereby irrevocably nominate, constitute, appoint and designate the Surety and its designees as their attorney-in-fact with the right, power, and authority, but not the obligation, to exercise all of the rights and powers of the Indemnitors assigned, transferred, and set over to Surety in this Agreement, and in the name of the Indemnitors, or any one or more of them, to make, endorse, execute, sign, fill in blanks, and deliver any and all additional or other instruments and writings, including, but not limited to, assignments, financing statements, documents, deeds of trust and all other instruments.
- Indemnitors hereby expressly waive notice from Surety of any claims or demand made against Surety or the principal under the bond or of any information Surety may receive concerning the principal, any contract, or bond. Surety shall have to right to decline any or all bonds herein applied for and shall have the right to withdraw from or cancel the same at any time, all without incurring any liability to the undersigned.
- If any portion of this agreement is found to be in conflict with any law controlling the construction hereof, such portion of this instrument shall be considered to be deleted and the remainder shall continue in full force and effect. A facsimile or electronic copy of this Agreement, including actual, virtual, electronic, or click-through signatures or affirmations, shall be considered an original and shall be admissible in a court at law to the same extent as an original copy.
- All obligations of the principal, applicants, and indemnitors to Surety are due, payable, and performable in Baltimore, Maryland, where venue of any action to enforce this agreement may be brought by Surety. Surety shall be entitled to recover all attorney’s fees (including those of attorneys employed by Surety), consulting fees, expert fees, collection costs, and claims handling or adjustment expenses in defending any claims made against its bonds or in enforcing any of its rights under this Agreement. Maryland law, without reference to the conflict of law rules of any other state that would apply any other law, shall apply to this Agreement.
- In consideration of the execution by Surety of the suretyship herein applied for, each of the undersigned, jointly and severally, agree to be bound by all of the terms of the foregoing indemnity agreement executed by the Indemnitors, as fully as though each of the undersigned were the sole Owner or Applicant named herein, and admit to being financially interested in the performance of the obligation, which the suretyship applied for is given to secure.