Bond Obligation Clause Samples

Bond Obligation. Any employer that (i) first becomes bound to an agreement with the District Council on or after June 1, 2010, or (ii) is or becomes delinquent in any obligations owed under this Agreement, regardless of the length or amount of the delinquency, and regardless of whether it subsequently cures the delinquency, must furnish a satisfactory surety c om pa n y’ s bond, in the amount stated in Section 24.2, to guarantee payment of all obligations under this Agreement. Any Employer that was bound to an agreement with the District Council before June 1, 2010, and was not required to provide a bond, will not be required to provide a bond unless it incurs any delinquency, in which case that Employer must provide a bond in the amount stated in Section 24.2. Any Employer that was bound to an agreement with the District Council as of May 31, 20l0, and maintained a bond in the proper amount as of that date, may retain the bond in that amount unless it incurs any delinquency, in which case that Employer must increase its bond to the amount stated in Section 24.2. An Employer that had a bond as of May 31, 2010, but is not required because of a delinquency to increase the amount of that bond to the amounts stated in Section 24.2, is subject to and responsible for changes in the bond amount based on changes in the number of employees, but any such changes will be based on the bond amounts set forth in the version of Article XXIV, Section 24.2 in effect on May 31, 2010. An Employer that, until granting its bargaining rights to one of the Associations, was party to an independent Memorandum of Understanding, will not incur an obligation to provide a bond because of its grant of bargaining rights to the Association. Any Employer that is required to post a bond shall maintain the bond as long as the Employer is party to a collective bargaining agreement with the District Council.