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under that certain note executed by Owner and payable to Lender (“Note”), in part, to make

payment under the Contract, and desires protection as its interest appears, in event of default by

Contractor under the Contract.

3. Contractor and Surety, jointly and severally, bind themselves, their heirs, executors,

administrators, successors and assigns, to Owner and to Lender, its successors and assigns, as

their respective interests appear, as Obligees, in the sum of

________________________________________________ Dollars ($_______________), for

the performance of the Contract. Any approved increase in the total Contract price shall increase

the obligation of Obligors accordingly.

4. If the Contractor performs the Contract and fully indemnifies and saves harmless

Obligees from all costs and damages which they may suffer by reason of failure to do so, and

fully reimburse and repay Obligees all expenses which any Obligee may incur in making good

any such default, then this obligation shall be null and void; otherwise it shall remain in full force

and effect.

5. Surety shall not be liable under this Performance Bond to Obligees, or any of them,

unless Obligees make payments to Contractor in accordance with the terms of the Contract as to

payments, and/or perform any of the other obligations under the Contract. However, Surety shall

not assert a failure by Obligees to make payments or perform obligations under the Contract

unless each Obligee has been given written notice by Surety of any such failure and a reasonable

period of time (but in no event less than thirty (30) days from receipt of said notice), in which to

cure such failure.

6. Surety agrees that any right of action that any of Obligees herein may have under this

Performance Bond may be assigned, without the consent of Contractor or Surety, to HUD, and

that such assignment will in no manner invalidate or qualify this instrument.

7. The aggregate liability of Surety hereunder to Obligees or their assigns is limited to

the penal sum above stated, and Surety, upon making any payment hereunder, shall be

subrogated to, and shall be entitled to an assignment of, all rights of the payee, either against

Contractor or against any other party liable to the payee in connection with the loss which is the

subject of the payment. Notwithstanding the foregoing, no amounts paid to Owner without the

written consent of Lender shall reduce the liability of Surety to Lender under this Performance

Bond.

8. Any suit, action or proceeding by reason of any default whatever shall be instituted

within two years after the date Owner declares Contractor in default under the Contract. If this

limitation is deemed to be in contravention of any controlling law, this Performance Bond is

deemed amended so as to substitute the minimum period of limitation permitted by such

controlling law for the above limitation.

9. Surety hereby waives notice of any change, including changes of time, to the Contract

or to related subcontracts, purchase orders and other obligations.

Previous versions obsolete

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form HUD-92452-ORCF (mm/yyyy)

Form Hud-92452-Orcf Draft - Performance Bond - Dual Obligee - Department Of Housing And Urban Development Page 2