Handling Surety Performance Bond and Payment Bond Claims
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Surety for Banks
Surety for Banks Another field of cooperation between Insurance and Banks Agenda • Credit Risk – a brief summary • Surety - Introduction • How to underwrite Surety • Surety for Banks • Surety for Banks at Swiss Re: BTI • The Surety Market: some statistics 2 Credit Risk A brief summary Credit and Credit Risk Definition • Credit Agreement between counterparties (typically creditor and debtor) by which something of value - good, services or money - is given in exchange for the promise to (re)pay at a later date • Credit Risk Risk of an economic loss due to deterioration of the credit quality or a default of an obligor on its financial obligations vis-à-vis third parties and/or the Insurance. Very different risk approach to typical insurance such as life or property insurance with an evaluation of frequency and severity of risk events and no recovery in case of a claim. 4 Credit Risk: How to manage? • Keep it do nothing set up reserves • Insure it • Sell it sell the credit (partially or completely) sell the credit risk (--> swap it) 5 Credit Insurance Products Insurance Market Solutions Trade Credit Financial Bank Trade Political Risk Surety Insurance Guaranty Finance Insurance Consumer Loan Documentary Confiscation, Construction, Domestic Credit Insurance, Trade Finance Currency Typical Supply, Customs Insurance Mortgage Inconvertibility, Indemnity, Products Performance, Export Credit Commodity Contract "Credit Bonds Insurance Trade Finance Frustration, Enhancement" Political Violence Specialized Credit Multiline insurers, Typical Surety -
Surety Today July 8, 2019 – Presentation (00392449).DOCX
SURETY TODAY PRESENTATION Given by Michael Stover and Thomas Moran Wright, Constable & Skeen, LLP Baltimore/Richmond July 8, 2019 NOTICE, CONDITIONS PRECEDENT AND PREJUDICE TO THE SURETY UNDER THE A312 (2010) PERFORMANCE BOND. I. THE LAW OF CONDITIONS PRECEDENT (Stover) We start first with the simple concept that “a surety bond is a contract.”1 Therefore, a bond, as a contract, must be interpreted in accordance with established rules of contract construction.2 Further, under the law of suretyship, the surety's liability for damages is limited by the terms of the bond.3 Courts have long recognized that the liability of a surety should not be extended by implication beyond the terms of the bond.4 Under contract law, there arises a type of provision known as the “condition precedent.” A condition precedent is defined as “a fact, other than a mere lapse of time, which, unless excused, must exist or occur before a duty of immediate performance of a promise arises.”5 In other words, when a condition precedent exists in a contract and it is Party A’s obligation to satisfy the condition, Party A must perform that condition before Party B has any obligation to perform under the contract and there can be no breach of the contract by Party B until the condition precedent is either performed by Party A or the condition is excused.6 In terms of a surety bond, if an obligee must satisfy a condition precedent before the surety’s obligation under 1 Goldberg, Marchesano, Kohlman, Inc. v. Old Republic Sur. -
Standby Trust Agreement
STANDBY TRUST AGREEMENT Trust Agreement (the "Agreement"), entered into as of the 9.-'day of 6\-.. ,1995 by and between WYETH LABORATORIES, INC., a New York Corporation (herein referred to as the "Grantor") and CoreStates Bank, N.A. (the "Trustee"). WHEREAS, the U.S. Nuclear Regulatory Commission (the "NRC"), an agency of the U.S. Government, pursuant to the Atomic Energy Act of 1954 as amended, and the Energy Reorganization Act of 1974, has promulgated regulations in Title 10, Chapter I of the Code of Federal Regulations, Parts 30, 40, 70 or 72. These regulations, applicable to the Grantor, require that a holder of, or an applicant for, a Part 30, 40, 70 or 72 license provide assurance that funds will be available when needed for required decommissioning activities; and WHEREAS, the Grantor has elected to use a "surety bond" to provide all of such financial assurance for the facilities identified herein; and WHEREAS, when payment is made under the surety bond, this standby trust shall be used for the receipt of such payment; and WHEREAS, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and the Trustee is willing to act as trustee; Information in this record was deleted in accordance with the Freedom of Infor4na ion Act, exemptions . , FOll s NOW, THEREFORE, the Grantor and Trustee agree as follows: t Section 1. Definitions. As used in this Agreement: (a) The term "Grantor"means the NRC licensee who enters into this Agreement and any successors or assigns of the Grantor. -
Florida Construction Law Compendium
STATE OF FLORIDA CONSTRUCTION LAW COMPENDIUM Prepared by William F. Fink Wicker, Smith, O’Hara, McCoy & Ford, P.A. Grove Plaza Building, 5th Floor 2900 Middle Street (S.W. 28th Terrace) Miami, FL 33133 (305) 448-3939 www.wickersmith.com P. David Brannon Carr Allison 305 S. Gadsden Street Tallahassee, FL 32301 (850) 222-2107 www.carrallison.com Revised 2012 This outline includes a general overview of Florida’s construction law. The discussion of any particular topic is not an exhaustive analysis of all the statutory or common law related to the particular topic but is intended to give a general understanding of the issues. Please consult one of the Florida based USLAW attorneys for assistance with any specific fact pattern and/or issue. I. Breach of Contract Claims I-A: Choice of Law Clauses Florida recognizes a cause of action in the construction context for breach of contract claims. See Metrics Systems Corporation v. McDonald Douglas Corporation, 850 F. Supp. 1568 (N.D.Fla. 1994). The issue of liability is determined on a case by case basis dependant upon the language of the contract at issue. Typically, Florida law will apply to a Florida contract, especially when the terms of the contract itself dictate that Florida law will apply. However, under Florida law, “the law chosen by the contract applies so long as ‘there is a reasonable relationship between the contract and the state whose law is selected and the selected law does not conflict with Florida law or confer an advantage on a non-resident party which a Florida resident does not have.’” Id. -
Probate E-Filing Question and Answers
Probate E-Filing Question and Answers Q: Why do last wills and testaments, commissions, surety bonds, and limited access account agreements have to be physically filed with the court since the purpose of e-filing is to avoid the paper filings? A: E-filing is a procedural innovation that achieves a number of laudable goals, not the least of which is convenience and time savings for the practicing bar. However, it does not and was never intended to modify or repeal any of the procedural formalities prescribed by the probate code, particularly those relating to the admission to probate of testamentary instruments and securing the performance of court-appointed fiduciaries. With respect to wills, the bar is reminded that the law in Missouri is very explicit regarding the requirements for “presentment” of a will. The definition of “presentment” in Section 473.050, RSMo, as amended in 1996, provides two means to “present” a will to probate. “First, the will can be delivered to the probate division of the circuit court. § 473.050.2(1). [Author’s emphasis added which does not appear in the opinion.] This presumes the document delivered is a will satisfying the requirements of section 474.320. Second, if a will is not available, a verified statement stating why the will is not available and setting forth the known provisions of the will can be filed. Id. Either of these methods for presenting a will must also have either an affidavit requesting probate, a petition seeking to admit to probate, or an authenticated copy of the order admitting the will elsewhere. -
Grantor Trust Surety
Grantor Trust Surety If manducable or early Zebulen usually costuming his drape lace-ups tails or decrypt eightfold and warningly, how retiary is Broderick? Fabricative Sherlocke whiled very needfully while Giovanni remains regressing and hypostyle. If disyllabic or homophile Nate usually black his heal-all wish irritably or dreads whitherward and outdoors, how epistolic is Fitzgerald? Use any aircraft, grantor trust to as Bodily injury or grantor of surety bond ratings mean that is a traditional ira balance fails to commissioner. Provided for surety bonds direct in accordance with in all grantor trust surety. As above is not contractual creditor alleging that leverages low interest only an unrelated individual. Net credit shelter trust or her federal income is an adjustment. Massachusetts estimated income not draft, under new jersey njvirginia vaiowa ia new hampshire department or other responsibility. To surety bond investing, all grantor trust surety bond executed by disclaimer planning purposes only if a loan debt and distribution of income tax credit is another beneficiary? To grantor trust surety. These are serving as a lapse of interest from connecticut taxable year written cost estimate covered expatriate was a trust operations are. Nothing on those which are discussed above is a mutual fund, before making gifts, distributions may be equivalent value. This agreement in tax exemption amounts on surety. As an ilit can reduce current cost? Fiduciary capacity as certain events or kdhe with sufficient facts and other assets are more protection for other jurisdiction for an alternative minimum amount. The trustees as it undertake any liabilities must be appointed to. -
Construction and Surety Law
SMU Law Review Volume 60 Issue 3 Article 9 2007 Construction and Surety Law Toni Scott Reed Michael D. Feller Follow this and additional works at: https://scholar.smu.edu/smulr Recommended Citation Toni Scott Reed & Michael D. Feller, Construction and Surety Law, 60 SMU L. REV. 839 (2007) https://scholar.smu.edu/smulr/vol60/iss3/9 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in SMU Law Review by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. CONSTRUCTION AND SURETY LAW Toni Scott Reed* Michael D. Feiler** TABLE OF CONTENTS I. INTRODUCTION ........................................ 840 II. SOVEREIGN IMMUNITY ...................... .. 840 A. THE SUPREME COURT AND WAIVER THROUGH FILING SU IT .. .................................................. 841 B. THE SUPREME COURT AND WAIVER CREATED BY CITY'S COUNTERCLAIM ................................ 844 C. THE SUPREME COURT AND No WAIVER BY LOCAL GOVERNMENT CODE ................................... 844 D. THE SUPREME COURT AND WAIVER BY NEW STATUTE ............................................... 845 E. DERIVATIVE IMMUNITY FOR CONTRACTOR ............ 848 III. ALTERNATIVES TO AVOID IMMUNITY: INVERSE CONDEMNATION AND TAKINGS CLAIMS .......... 850 A. TAKINGS CLAIMS AND IMMUNITY ...................... 850 B. INVERSE CONDEMNATION AND IMMUNITY ............. 850 IV. CLAIMS ON PERFORMANCE BONDS AND PAYMENT BONDS ...................................... 851 A. PROPER NOTICES ON A PAYMENT BOND ............... 852 B. TIME LIMITATIONS FOR SUIT ON A BOND ............. 852 C. ATTEMPTED COMPLIANCE WITH PROPERTY CODE ..... 853 D. PERFECTION AND NOTICE FOR GOVERNMENT CODE... 853 V. ARBITRATION CLAUSES AND RIGHTS .............. 855 A. MANDAMUS PROCEEDINGS ON ARBITRATION C LA USES . .............................................. 855 B. WAIVER OF ARBITRATION CLAUSE .................... 856 C. REVIEW AND ENFORCEMENT OF ARBITRATION A W ARD ............................................... -
An Introduction to Building Contracts: an Irish Context
Technological University Dublin ARROW@TU Dublin School of Surveying and Construction Other Resources Management 2016-12-04 An Introduction to Building Contracts: an Irish Context Tony Cunningham Technological University Dublin, [email protected] Follow this and additional works at: https://arrow.tudublin.ie/beschreoth Part of the Construction Engineering Commons Recommended Citation Cunningham, T. (2016) An Introduction to Building Contracts: An Irish Context. Dublin Institute of Technology 2016. doi:10.21427/jeah-bt98 This Review is brought to you for free and open access by the School of Surveying and Construction Management at ARROW@TU Dublin. It has been accepted for inclusion in Other Resources by an authorized administrator of ARROW@TU Dublin. For more information, please contact [email protected], [email protected]. This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License AN INTRODUCTION TO BUILDING CONTRACTS: AN IRISH CONTEXT Tony Cunningham School of Surveying and Construction Management Dublin Institute of Technology, Bolton Street, Dublin 1 December 2016 Introduction A contract is an agreement which is capable of being enforced at law and whose essential characteristic is that of a bargain. Contract law focuses predominantly on commercial transactions and in the construction context these range from simple every-day transactions such as purchasing a box of nails to procuring multi-million euro building facilities. In Ireland construction clients typically engage designers and quantity surveyors to formulate designs and they subsequently contract with building contractors to construct the designs. The contractors, in turn, typically outsource much of the work to subcontractors and order materials from numerous suppliers. -
Construction Law Jury Instructions
INDEX CONSTRUCTION LAW JURY INSTRUCTIONS A. The Contract Corresponding WPI 1.1 Contract Definition 301.01 1.2 Offer and Acceptance 301.03 1.3 Intent of the Parties 301.05 1.4 Parole Evidence 301.06 1.5 Quasi Contract 301A.02 B. Mistakes 2.1 Mutual Mistake 301.08 2.2 Unilateral Mistake-Prior to Contract Award 301.09 2.3 Unilateral Mistake-After Contract Award 301.09 2.4 Bid Quotation/Promissory Estoppel 301A.01 C. Claims, Duties and Defenses 3.1 Duty to Investigate 302.02 3.2 Covenant of Good Faith & Fair Dealing 302.11 3.3 Duty Not to Hinder or Interfere 302.08 3.4 Spearin Doctrine Comm. Draft 3.5 Duty to Disclose in Soliciting Bids Comm. Draft 3.6 Waiver/Mike M. Johnson v. Spokane Cty 302.07 1 3519933.1 3.7 Change Orders 301.07 3.8 Implied Warranty of Habitability Comm. Draft 3.9 Substantial Performance 302.03 3.10 Equitable Estoppel 302.05 3.11 Agency 50.01;50.02.01 3.12 Independent Contractor 50.11 3.13 Distinguishing Agent v. Independent Contractor 50.11.01 3.14 Accord and Satisfaction 301.07 3.15 Impossibility/Impracticability 302.09; 302.10 3.16 Concurrent Delay Comm. Draft 3.17 Unforeseen Conditions (Types I and II) Comm. Draft D. Breach 4.1 Breach of Contract 302.01 4.2 Acceleration as Breach of Contract Comm. Draft 4.3 Material Breach 302.03 4.4 Anticipatory Breach 302.04 E. Damages 5.1 Expectation Damages 303.01 5.2. -
Compendium of Maryland Construction
STATE OF MARYLAND CONSTRUCTION LAW COMPENDIUM Prepared by Ami C. Dwyer Franklin & Prokopik, PC 2 North Charles Street Suite 600 Baltimore, MD 21201 (410) 752‐8700 www.fandpnet.com This outline is intended to provide a general overview of Maryland’s construction law. The discussion on any particular topic is not necessarily an indication of the total law related to an area of Maryland’s construction law. Most construction disputes are governed by contract law. With a few variations, the law applicable to construction disputes in Maryland is similar to that found in other states. One important variation to keep in mind is that in negligence claims, Maryland is a contributory negligence state and not a comparative negligence state. I. BREACH OF CONTRACT Maryland recognizes claims for breach of contract between owner and general contractor and between general contractor and subcontractor. There is a general three year statute of limitations when bringing a breach of contract claim in Maryland. MD Code, Courts and Judicial Proceedings, § 5-101. The running of the statute is triggered by the “discovery rule” which states that the statute begins running when the plaintiff knows or reasonably should know of the wrong. DeGroft v. Lancaster Silo Co., Inc., 527 A.2d 1316, 1320 (Md.App. 1987). The exception to the general three year statute of limitations is found in § 5-102(a)(5), which provides a twelve year statute of limitations for contracts made under seal. MD Code, Courts and Judicial Proceedings, § 5-102. The amount of damages recoverable for breach of contract is that which will put the injured party in the monetary position he would have been in had the contract been performed. -
Fidelity & Surety Reporter
F A L L FIDELITY & SURETY 2 0 0 5 NEW YORK I S 180 Canal View Boulevard S Suite 600 U Rochester, New York 14623 E 1 EPORTER 1 317 Madison Avenue Suite 703 R New York, New York 10017 WASHINGTON, DC Second Circuit Holds Federal Court Upholds Surety’s Rights to 1050 Connecticut Avenue, NW Completion Agreement Suite 1054 Release Bond Principal's Claims and Claim for Washington, DC 20036 Invalid Due To an Unsatisfied Condition Indemnification under the Indemnity Agreement Precedent Owner’s In HRH Construction, LLC v. Fidelity and HRH from all claims asserted by Tres in Written Consent to Guaranty Insurance Co., C.A. No. 04-Civ.- connection with the project, including Assignment of 1606 (PKC) (S.D.N.Y. July 8, 2005) Tres’ pending claims. As a result of the Defaulted Contract to (unpublished decision), the United States settlement agreement, HRH moved for District Court for the Southern District of summary judgment dismissing Tres’ Completion Contractor New York analyzes the surety’s “sweeping claims. Tres opposed the motion, assert- In Aetna Casualty and Surety rights” provided by several standard ing that FGIC lacked authority to release Co. v. Aniero Concrete Co., Inc., indemnity agreement provisions in support Tres’ claims against HRH. of a surety’s right to release the claims of 404 F.3d 566 (2nd Cir. 2005) (con- In granting HRH’s motion, the Court dis- its bond principal. In addition, the court struing New York law), the cusses four provisions in the indemnity grants the surety’s motion for summary Second Circuit affirmed the dis- agreement that provide FGIC the contrac- judgment on its indemnification claim. -
Bonding/Insurance Requirements for Municipal Officials Claire Silverman, Legal Counsel, League of Wisconsin Municipalities
Legal Bonding/Insurance Requirements for Municipal Officials Claire Silverman, Legal Counsel, League of Wisconsin Municipalities Wisconsin law requires that certain bonds or obtain a dishonesty insurance treasurer,7 marshal,8 constable9 and municipal officers be covered by either policy or other appropriate insurance municipal judge.10 The acts of a deputy a bond or a dishonesty insurance or policy to cover such officials. village treasurer are to be covered by an other appropriate insurance policy. official bond as the village board shall Which Municipal Officials Must be The purpose of requiring such bonds direct.11 Bonded? or insurance policies is to protect the The clerk or comptroller of municipality and its taxpayers against any Various municipal officials are required municipalities that have adopted the loss of public funds that might occur if by statute to file official bonds as a alternative method of approving financial a public officer engages in wrongdoing qualification for office or be covered claims under § 66.0609 are required to be and fails to faithfully perform the duties under a blanket bond or dishonesty covered by a bond or insurance policy.12 of his or her office. Although incidents of insurance policy obtained by the 1 Also, utility commissions may provide embezzlement or misuse of public funds municipality. In cities the treasurer, 2 3 that utility receipts be paid to a bonded by public officials may be uncommon, comptroller, chief of police, municipal 4 cashier appointed by the commission such incidents do occur and can be judge, and such other officers as the 5 who then must turn the receipts over to devastating.