92452-A-OHF Payment Bond

Payment Bond

OMB Approval No. 2502-0602
(Expires 05/31/2015)

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

(This Bond is issued simultaneously with Performance Bond in
favor of Owner conditioned on the full and faithful performance of
the contract)

Project Number:

Know All Men By These Presents, that we, ____________________________________________________________ of
_____________________________________________________________________________________________________________________
as Principal, (hereinafter called the Principal) and___________________________________________
_________________________________, a _____________________________________________________________ as
Surety, (hereinafter called the Surety) are held and firmly bound unto ________________________________________________
as Obligee, (hereinafter called the “Owner”), for the use and benefit of claimants as hereinafter defined, 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.
Whereas, Principal has entered into a Construction Contract dated ___________________________ with Owner for the construction of a Housing Project designated as ____________________________________________________ a copy of which Construction Contract is by reference made a part hereof; and is hereinafter referred to as the Contract.
Now, therefore, the conditions of this obligation is such that,
if Principal shall promptly make payment to all claimants as
hereinafter defined, for all labor and material used or reasonably
required for use in the performance of the Contract, then this
obligation shall be void; otherwise it shall remain in full force and
effect, subject, however, to the following conditions:
1. A Claimant is defined as one having a direct contract with the
Principal or with a subcontractor of the Principal for labor,
material, or both, used or reasonably required for use in the
performance of the contract, labor and material being construed
to include that part of water, gas, power, light, heat, oil, gasoline,
telephone service or rental of equipment directly applicable to the
Contract.
2. The above name Principal and Surety hereby jointly and
severally agree with the Owner that every claimant as herein
defined, who has not been paid in full before the expiration of a
period of ninety (90) days after the date on which the last of such
claimant’s work or labor was done or performed, or materials were
furnished by such claimant, may sue on this bond for the use of
such claimant, prosecute the suit to final judgment for such sum
or sums as may be justly due claimant, and have execution
thereon. The Owner shall not be liable for the payment of any
costs or expenses of any such suit.
3. No suit or action shall be commenced hereunder by any
claimant:
a) Unless claimant, other than one having direct contract with
the Principal, shall have given written notice to any two of the
following: The Principal, the Owner, or the Surety above named,

within ninety (90) days after such claimant did or performed the
last of the work or labor, or furnished the last of the materials for
which said claim is made, stating with substantial accuracy the
amount claimed and the name of the party to whom the materials
were furnished, or for whom the work or labor was done or
performed. Such notice shall be served by mailing the same by
registered mail or certified mail, postage prepaid, in an envelope
addressed to the Principal, Owner or Surety, at any place where
an office is regularly maintained for the transaction of business,
or served in any manner in which legal process may be served in
the state in which the aforesaid project is located, save that such
service need not be made by a public officer.
b) After the expiration of one (1) year following the date on
which Principal ceased work on said Contract, it being understood, however, that if any limitation embodied in this bond is
prohibited by any law controlling the construction hereof, such
limitation shall be deemed to be amended so as to be equal to the
minimum period of limitation permitted by such law.
c) Other than in a state court of competent jurisdiction in and
for the county or other political subdivision of the state in which
the project, or any part thereof, is situated, or in the United States
District Court for the district in which the project, or any part
thereof, is situated, and not elsewhere.
4. The amount of this bond shall be reduced by and to the extent
of any payment or payments made in good faith hereunder,
inclusive of the payment by Surety of mechanics’ liens which may
be filed of record against said improvement, whether or not claim
for the amount of such lien be presented under and against this
bond.

Signed and Sealed this ___________________________________ day of _______________________________, 20_______.
Witness as to Principal:

(Seal)
(Principal)
By:
(Surety)
By:
Page 1 of 2

form HUD-92452-A­OHF (1/24/2006)
ref. Handbook 4571.1

Public reporting burden for this collection of information is estimated to average 1 hour 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.

$ ______________________________

________________________________________________
(Surety)
PAYMENT BOND
No.____________________________
On Behalf of
________________________________________________
To
________________________________________________
________________________________________________
________________________________________________

Date ______________________________, 20 _______
Expires ____________________________, 20 _______

Page 2 of 2

form HUD-92452-A­OHF (1/24/2006)
ref. Handbook 4571.1