Claimant's Payment Bond 

No. _______________

Bond Posted as Security Pursuant to the Contract Documents.

KNOW ALL PERSONS BY THESE PRESENTS, That ___________________________ as Principal, hereinafter called the Principal, and __________________________________ as Surety, hereinafter called the Surety, are, subject to the conditions hereinafter contained, held and firmly bound unto ___________________________________________________ as Obligee, hereinafter called the Crown, in the amount of __________________________ Dollars ($______________), lawful money of Canada, for the payment of which sum, well and truly to be made, the Principal and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally, or, where this bond is subject to the law of the Province of Quebec, as solidary debtors, and firmly by these presents.

SIGNED AND SEALED this ________ day of _______________ 19 ____

WHEREAS, the principal has entered into a Contract with the Crown, dated the __________________________ day of ____________________ 19 ___ for________________________

AND WHEREAS, the Crown has notified the Principal in writing of its intention to withhold contract funds, pursuant to Clause __________ of the Contract for the following claim(s) registered against the Contract:

Date of Notification: _________ 

Claimant: _________ 

Amount: _________ 

NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that this Bond stands in lieu of and as security for the release to the Principal of funds which otherwise would have been withheld by the Crown, by reason of Clause _______ of the Contract on account of the aforementioned claim(s).

To the intent and condition that if the Principal shall pay or cause to be paid the said claim(s) as the Principal may be directed by the Crown to pay, which claim(s)otherwise the Crown would have been entitled to pay by reason of Clause _________ of the Contract, then this obligation shall be void, otherwise it shall remain in full force and effect.

The Crown may sue on this Bond, have the right to prosecute the suit to final judgment for such sum or sums as may be due and have execution thereon; and such right of the Crown is assigned by virtue of Part VIII of the Financial Administration Act to each such aforementioned claimant.

Provided that, no suit or action shall be instituted by the Crown or its assignees herein against the Surety, unless the claimant(s) shall have commenced the proceedings to determine the right to payment pursuant to Clause _______ of the Contract within one year from the date of notification referred to in Clause _______ of the Contract.

 Provided further that:

1.  the amount of this Bond shall be reduced by and to the extent of any payment or payments made in good faith hereunder;

2.  the Surety shall not be liable for a greater sum than the total amount specified in this Bond.