Common use of Purpose of Bond Clause in Contracts

Purpose of Bond. The bond is to protect the Department and the State against any loss sustained through failure of the Contractor or any of its employees, officers, directors, agents and representatives to accurately perform the Services required by the Contract for the entire term of the Contract. No compensation shall be due to the Contractor until the performance bond is in place and approved by the Department in writing. Upon execution of the Contract and no later than December 31st of each Plan Year, the Contractor shall provide the Department with a surety bond continuation certificate or other acceptable verification that the bond is valid and has been renewed for an additional year. As an alternative to the surety bond described in this section, the Contractor may use an irrevocable letter of credit on an annually renewable basis, which in the reasonable judgment of the Department, provides substantially equivalent protection. THIS SPACE INTENTIONALLY LEFT BLANK

Purpose of Bond. The bond is to protect the Department and the State against any loss sustained through failure of the Contractor or any of its employees, officers, directors, agents and representatives to accurately perform the Services required by the Contract for the entire term of the Contract. No compensation shall be due to the Contractor until the performance bond is in place and approved by the Department in writing. Upon execution of the Contract and no later than December 31st by each yearly anniversary of each Plan Yearthe Effective Date, the Contractor shall provide the Department with a surety bond continuation certificate or other acceptable verification that the bond is valid and has been renewed for an additional year. As an alternative to the surety bond described in this section, the Contractor may use an irrevocable irrevocable, letter of credit on an annually renewable basis, which in the reasonable judgment of the Department, provides substantially equivalent protection. THIS SPACE INTENTIONALLY LEFT BLANK.

Purpose of Bond. The bond is to protect the Department and the State against any loss sustained through failure of the Contractor or any of its employees, officers, directors, agents and representatives to accurately perform the Services required by the Contract for the entire term of the Contract. No compensation shall be due to the Contractor until the performance bond is in place and approved by the Department in writing. Upon execution of the Contract and no later than December 31st by the start of each Plan YearYear following the Effective Date, the Contractor shall provide the Department with a surety bond continuation certificate or other acceptable verification that the bond is valid and has been renewed for an additional year. As an alternative to the surety bond described in this sectionsubsection, the Contractor may use an irrevocable irrevocable, letter of credit on an annually renewable basis, which in the reasonable judgment of the Department, provides substantially equivalent protection. THIS SPACE INTENTIONALLY LEFT BLANK.