90177-CA Capital Advance Program Off-Site Bond

Capital Advance Program
Off-Site Bond
For use under Section 202 of the Housing Act of 1959
or Section 811 of the National Affordable Housing Act

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

OMB Approval No. 2502-0470
(exp. 8/31/2013)

Public reporting burden for this collection of information is estimated to average 30 minutes 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.

Know All Men By These Presents: That We, ________________________________________________________________ of
_______________________________________________________________________________________________________
(hereinafter called the Principal(s)) and __________________________________________________, a Corporation organized under
the laws of the State of ______________________ , (hereinafter called the Surety) are held and firmly bound unto the Secretary of
Housing and Urban Development (hereinafter called the HUD) in the sum of ___________________________________ Dollars
($ ________________ ), for the payment whereof the Principal(s) and Surety bind themselves, their heirs, executors, administrators,
successors and assigns, jointly and severally by these presents.
Whereas, _________________________________________________________________________ (hereinafter called the Mortgagor) has requested HUD to advance certain funds to Mortgagor for the purpose of constructing a Housing project to be located at
______________________ _____________________________________________________________________ , and identified as
Project No. ___________________________ , said funds to be secured by a ______________________________________________
(hereinafter called Mortgage), said Mortgage made by the Secretary of HUD; and
Whereas, HUD is unwilling to advance said funds to the Mortgagor without assurance that all off-site facilities and/or utilities
necessary to operate successfully said project will be installed not later than _______________________________ , 20 _______ ; and
Whereas, The Principal(s) has (have) entered into a Construction Contract dated ___________________________ with the mortgagor
for the completion of off-site facilities and utilities necessary to operate successfully said project, as set forth in Exhibit A attached
hereto and shown in detail in Drawings and Specifications entitled _______________________________________________, dated
______________________________ , prepared by _______________________________________________ Architect.
Now, Therefore, The Condition Of This Obligation Is Such that, if the Principal(s) shall install and complete said off-site facilities
and/or utilities, or cause the installation and completion of said off-site facilities and/or utilities according to the aforesaid Exhibit
and Drawings and Specifications within the time hereinabove specified, free from all liens and claims of any and all persons performing
the labor thereon or furnishing materials therefor, or both, or in the default thereof, the Surety shall, promptly after written notice of
such default, (1) perform said obligations and agreements, or (2) promptly pay to HUD, its successors or assigns, actual damages by
reason of said default, then this obligation to be void, otherwise to remain in full force and effect.
No, suit, action, or proceeding by reason of any default whatever shall be brought on this bond after two years from the date said offsite facilities and/or utilities are to be installed, as hereinabove required.
It is understood and agreed by and between the parties hereto that this Bond may be assigned to the Mortgagor together with all rights
and rights of action accruing herein to any owner or owners, and to the Secretary of HUD, his/her successor in office and assigns.
Signed and Sealed this __________________________________ day of _______________________________, 20 ________ .
Witness as to Principal:

Principal (Seal)

Surety

By

Previous versions obsolete

ref. Handbooks 4571.4 & 4571.5

form HUD-90177-CA (12/20/2005)