RUS Form 307, Bid Bond

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U.S. Department of Agriculture
Rural Utilities Service

BID BOND
1.

KNOW ALL PERSONS that we, ______________________________________________________________
__________________________________________________________________________ as Principal, and
________________________________________________________________________________________ ,
as Surety, are held and firmly bound unto _______________________________________________________
________________________________________________________________ (hereafter called the "Owner")
in the penal sum of ten percent (10%) of the amount of the bid referred to in paragraph 2 below, but not to
exceed __________________________________________________ dollars ($ _____________________), as
hereinafter set forth and for the payment of which sum well and truly to be made we bind ourselves, our
executors, administrators, successors and assigns, jointly and severally, by these presents;

2.

WHEREAS, the Principal has submitted a bid to the Owner for the construction of the Rural Utilities Service
project known as ____________________________________________________________________.

3.

NOW, THEREFORE, the condition of this obligation is such that if the Owner shall accept the bid of the
Principal, and
a.

the Principal shall execute such contract documents, if any, as may be required by the terms of the bid and
give such Contractor's Bond or Bonds for the performance of the contract and for the prompt payment of
labor and material furnished for the project as may be specified in the bid, or

b.

in the event of the failure of the Principal to execute such contract documents, if any, and give such
Contractor's Bond or Bonds, if the Principal shall pay to the Owner the difference, not to exceed the penal
sum hereof, between the amount specified in the bid and such larger amount for which the Owner may in
good faith contract with another party to construct the project, then this obligation shall be void, otherwise
to remain in full force and effect.

IN WITNESS WHEREOF, the undersigned have caused this instrument to be executed and their respective
corporate seals to be affixed and attested by their duly authorized representatives this
____________________________________________ day of ________________________________ , 20______ .
(Seal)
Principle
ATTEST:

By

Secretary

Title
(Seal)
Surety

ATTEST:

By

Secretary

Title

RUS FORM 307 (Rev. 2-04)