SF-274/SF-275 Reinsurance in Favor of the United States

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3. DESCRIPTION OF BOND
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AGREEMENT:
(a) The Direct Writing Company named above is bound as surety to the United States of America, on the bond described above, wherein
the above-named is the principal. The bond is given for the protection of the United States and the Direct Writing Company has applied to the
above Reinsuring Company to be reinsured and counter-secured in the amount shown opposite the name of the Reinsuring Company (referred
to as the "Amount of this Reinsurance"), or for whatever amount less than the "Amount of this Reinsurance" the Direct Writing Company is
liable to pay under or by virtue of the bond.
(b) For a sum mutually agreed upon, paid by the Direct Writing Company to the Reinsuring Company which acknowledges its receipt, the
parties to this Agreement covenant and agree to the terms and conditions of this agreement.
TERMS AND CONDITIONS:
The purpose and intent of this agreement is to guarantee and indemnify the United States against loss under the bond to the extent of the
"Amount of this Reinsurance," or for any less sum than the "Amount of this Reinsurance," that is owing and unpaid by the Direct Writing
Company to the United States.
THEREFORE:
1. If the Direct Writing Company fails to pay any default under the bond equal to or in excess of the "Amount of this Reinsurance," the
Reinsuring Company covenants and agrees to pay to the United States, the obligee on the bond, the "Amount of this Reinsurance." If the
Direct Writing Company fails to pay to the United States any default for a sum less than the "Amount of this Reinsurance," the Reinsuring
Company covenants and agrees to pay to the United States the full amount of the default, or so much thereof that is not paid to the United
States by the Direct Writing Company.
2. The Reinsuring Company further covenants and agrees that in case of default on the bond for the "Amount of this Reinsurance," or
more, the United States may sue the Reinsuring Company for the "Amount of this Reinsurance" or for the full amount of the default when the
default is less than the "Amount of this Reinsurance."
WITNESS
The Direct Writing Company and the Reinsuring Company, respectively, have caused this Agreement to be signed and impressed with their
respective corporate seals by officers possessing power to sign this instrument, and to be duly attested to by officers empowered thereto, on
the day and date above -- written opposite their respective names.
(Over)

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