Common use of Eligibility of bonds Clause in Contracts

Eligibility of bonds. Bid Bonds and Final Bonds are eligible for an SBA guarantee if they are executed in con- nection with an eligible Contract, as defined in § 115.10, Definitions. Com- mercial and Fidelity bonds are not xxx- gible for SBA guarantees. Ancillary Bonds may also be eligible for SBA’s guarantee. A performance bond must not prohibit a Surety from performing the Contract upon default of the Prin- cipal.

Eligibility of bonds. Bid Bonds and Final Bonds are eligible for an SBA guarantee if they are executed in con- nection with an eligible ContractContract and are of a type listed in the ‘‘Contract Bonds’’ section of the current Manual of Rules, as defined in § 115.10Procedures and Classifica- tions of the Surety Association of America (000 Xxxx Xxxxxx Xxxxx, Definitions. Com- mercial and Fidelity bonds are not xxx- gible for SBA guaranteesXxxxxx, Xxx Xxxxxx 00000). Ancillary Bonds may also be eligible for SBA’s guarantee. A performance bond Performance Bond must not prohibit a Surety from performing the Contract upon default of the Prin- cipal.