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principal shall wel~ and truly perfonn the construction herein required,

pursuant to the approved plans and specifications therefor, then surety

shall no longer be bound thereon. The. condition of the payment bond shall

be such that if the principal shall well and truly pay, or cause to be

paid, all claims for labor, materials, appliances, teams, or power, or

either or all, perfonned, furnished or contributed in connection with said

works of improvement, then surety shall no longer be bound thereon. Said

bonds shall be subject to approval by the Director as to sufficiency and

liability of sureties named thereon. Said bonds shall be maintained in

full force and ·effect by Society until said works of improvement have been

completed and claims for labor and material have been paid.
7.02 The Director may accept in lieu of the bonds heretofore

described, the perfonnance and payment bonds of corporations duly authorized

to issue surety bonds by the State, naming as principal a licensed con-

tractor employed by Society to construct works of improvement on said

property, provided each bond is in an amount equal to the percentage

hereinabove· provided for said bonds of the cost of the construction to be

performed by said contractor; names County £as an additional obligee;

contains tenns and conditions substantially similar to the requirements

heretofore specified; and is satisfactory as to sufficiency and liability

of sureties named thereon.

7.03 The Director may also accept in lieu of the bonds heretofore

described, the promise of one or more individuals to pay CoW1ty in the

event of a default of Society to well and truly perfonn the construction,

pursuant to the approved plans and specifications therefor, and to pay

claimants, as herein defined, in the event of a default of Society to pay

or cause to be paid, all claims for labor, materials, appliances, teams,

or power, or either or all; perfonned, furnished or contributed in connection

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