Form HUD-92452-OHF Performance Bond-Dual Obligee

Performance Bond-Dual Obligee

U.S. Department of Housing
and Urban Development
Office of Housing
Federal Housing Commissioner

OMB Approval No. 2502-xxxx
(exp.   xx/xx/xxxx)

Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information.
HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information collection is necessary to ensure that viable projects are developed. It is important to obtain information from applicants to assist
HUD in determining if nonprofit organizations initially funded continue to have the financial and administrative capacity needed to develop a project
and that the project design meets the needs of the residents. The Department will use this information to determine if the project meets statutory
requirements with respect to the development and operation of the project, as well as ensuring the continued marketability of the projects. This
information is required in order to obtain benefits. This information is considered non-sensitive and no assurance of confidentiality is provided.

Privacy Act Notice: The United States Department of Housing and Urban Development, Federal Housing Administration, is authorized to solicit the
information requested in the form by virtue of Title 12, United States Code, Section 1701 et seq., and regulations promulgated thereunder at Title 12,
Code of Federal Regulations. While no assurance of confidentiality is pledged to respondents, HUD generally discloses this data only in response to a
Freedom of Information Act request.

Know All Men By These Presents, That We,
_______________________________________________________________________
of
_________________________________________________________________________________________________________
as Principal, (hereinafter called the Principal) and ___________________________________________, a______________________
as Surety, (herinafter called the Surety) are held and firmly bound unto __________________________________________________
Owner, (hereinafter called the “Owner-Obligee”) and unto ___________________________________________________________,
its successors and assigns, of _________________________________________________________(hereinafter called the “Lender”)
as their respective interests may appear, as OBLIGEES, in the sum of ___________________________________________________
Dollars ($
), lawful money of the United States of America, for the payment of which Principal and Surety bind
themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
with

WHEREAS, Principal has entered into a Construction Contract dated ____________________________________

Owner-Obligee for the construction of a Housing Project designated as __________________________________________________
___________________________________________________________________________________________________________
a copy of which Construction Contract is by reference made a part hereof; and
WHEREAS, Lender has agreed to lend to Owner-Obligee a sum of money to be secured by a mortgage on said project and to be
used in making payments under said Contract, and desires protection as its interests may appear, in event of default by Principal under
said Contract, said protection to be subject to the performance by the Obligees, or either of them, of the obligations to Principal in
connection with said Contract.
NOW, THEREFORE, the condition of this obligation is such that, if Principal shall well and truly perform all the undertakings,
covenants, terms, conditions and agreements of said Contract on its part, and fully indemnify and save harmless Obligees from all cost
and damage which they may suffer by reason of failure so to do, and fully reimburse and repay Obligees all outlay and expense which
Obligees may incur in making good any such default, then this obligation shall be null and void; otherwise it shall remain in full force
and effect.
The foregoing, however, is subject to the following further provisions:
Page 1 of 3

form HUD-92452­OHF(7/2009)
ref. Handbook 4571.4 & 4571.5

1. The Suret y shall not be l iable under this Bond to the Obligees, or either of them, unless the said Obligees, or either of them,
shall make payments to the Prin cipal strictly in accordan ce with the term s of said Contract as to payments, and shall perform all the
other obligations to be performed under said Contract at the time and in the manner therein set forth.
2. Surety agrees that any right of action that either of Obligees herein might have under this bond may be assigned to the
Secretary of Housing and Urban Development, acting by and through the Federal Housing Commissioner, and that such assignment
will in no manner invalidate or qualify this instrument.
4

3. No suit, action, or proceeding by reason of any default whatever shall be brought on this bond after two years from
the day on which the final payment under the Contract falls due.

4. The prior written approval of Surety shall be required with regard to any changes or alterations in said Contract
where the cost thereof, added to prior changes or alterations, causes the aggregate cost of all changes and alterations to
exceed 10 percent of the original Contract price; but, except as to the foregoing, any alterations which may be made in the
terms of the Contract, or in the work to be done under it, or the giving by the Obligees of any extension of tim e for the
performance of the Contract, or any other forbearance on the part of either the Obligees or Principal to the other, shall not
in any way release Surety or Principal of the obligations of this instrum ent, notice to Surety of any such alteration,
extension, or forebearance being hereby waived.
5. The aggregate liability of Surety hereunder to the Ob ligees or their assigns is lim ited to the penal sum above
stated, and Surety, upon making any payment hereunder, shall be subrogated to, and shall be entitled to an assignm ent of,
all rights of the pay ee, either against Principal or against any other party liable to the pay ee in connection with the loss
which is the subject of the payment.
day of

SIGNED and SEALED this

Witness as to Principal

20

____________________________________________(SEAL)
(Principal)

_____________________________________________ By

___________________________________________
_____________________________________________
(Surety)

By

____________________________________________

Page 2 of 3

form HUD-92452­OHF(7/2009)
ref. Handbook 4571.4 & 4571.5

$_________________________

__________________________________________________________
(Surety)

PERFORMANCE BOND-DUAL OBLIGEE

No._____________________________
On Behalf of

________________________________________________

________________________________________________

________________________________________________

________________________________________________

Date_____________________________, 20____________
Expires ___________________________,

20____________

Page 3 of 3

form HUD-92452­OHF(7/2009)
ref. Handbook 4571.4 & 4571.5