SF 274 Reinsurance Agreement for a Bonds Statute Payment Bond

REINSURANCE AGREEMENT FOR A BONDS STATUTE PAYMENT BOND
(See instructions on reverse)

OMB Control Number: 9000-0045
Expiration Date: 7/31/2019

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Washington, DC 20405.
1. DIRECT WRITING COMPANY*

1A. DATE DIRECT WRITING COMPANY EXECUTES THIS
AGREEMENT

1B. STATE OF INCORPORATION

2. REINSURING COMPANY*

2A. AMOUNT OF THIS REINSURANCE

$
2B. DATE REINSURING COMPANY EXECUTES THIS
AGREEMENT
2C. STATE OF INCORPORATION

3. DESCRIPTION OF CONTRACT
3A. AMOUNT OF CONTRACT
3B. CONTRACT DATE

4. DESCRIPTION OF BOND
4A. PENAL SUM OF BOND

3C. CONTRACT NUMBER

4B. DATE OF BOND

4C. BOND NUMBER

3D. DESCRIPTION OF CONTRACT

4D. PRINCIPAL*

3E. CONTRACTING AGENCY

4E. STATE OF INCORPORATION (If Corporate Principal)

AGREEMENT:
(a) The Direct Writing Company named above is bound as a surety on the payment bond described above, wherein the above described is the
principal, for the protection of all persons supplying labor and material on the contract described above, which is for the construction, alteration, or repair of
a public building or public work of the United States. The payment bond is for the use of persons supplying labor or material, and is furnished to the United
States under 40 U.S.C. chapter 31, subchapter III, Bonds, known as the Bonds Statute. The Direct Writing Company has applied to the Reinsuring
Company named above to be reinsured and counter-secured in the amount above opposite the name of the Reinsuring Company (referred to as "Amount
of this Reinsurance"), or for whatever amount less than the "Amount of this Reinsurance" the Direct Writing Company is liable to pay under or by virtue of
the payments bond.
(b) For a sum mutually agreed upon, paid by the Direct Writing Company to the Reinsuring Company which acknowledges its receipt, the parties to
this Agreement covenant and agree to the terms and conditions of this agreement.
TERMS AND CONDITIONS:
The purpose and intent of this agreement is (a) to guarantee and indemnify the persons who have furnished or supplied labor or material in the
prosecution of the work provided for in the contract referred to above (hereinafter referred to as "laborers and materialmen," the term "materialmen"
including persons having a direct contractual relation with a subcontractor but no contractual relationship expressed or implied with the contractor who has
furnished the said payment bond) against loss under the payment bond to the extent of the "Amount of this Reinsurance," or for any sum less than the
"Amount of this Reinsurance," that is owing and unpaid by the Direct Writing Company to the "laborers and materialmen" on the payment bond; and (b) to
make the "laborers and materialmen" obligees under this Reinsurance Agreement to the same extent as if their respective names were written herein.
THEREFORE:
1. The Reinsuring Company covenants and agrees (a) To pay the "Amount of this Reinsurance" to the "laborers and materialmen" in the event of the Direct Writing Company's failure to pay to the
"laborers and materialmen" any default under the payment bond equal to or in excess of the "Amount of this Reinsurance;" and
(b) To pay (1) the full amount to the "laborers and materialmen," or (2) the amount not paid to them by the Direct Writing Company; in case the
Direct Writing Company fails to pay the "laborers and materialmen" any default under the payment bond less than the "Amount of this Reinsurance."
*Items 1, 2 ,4D - furnished legal name, business address and ZIP Code.
AUTHORIZED FOR LOCAL REPRODUCTION
Previous edition is usable

(Over)
STANDARD FORM 274 (REV. 4/2013)

Prescribed by GSA - FAR (48 CFR) 53.228(i)

2. The Reinsuring Company and the Direct Writing Company covenant and agree that, in the case of default on the payment bond for the "Amount of this
Reinsurance," or more, the persons given a "right of action" or a "right to sue" on the payment bond by 40 U.S.C. 3133 may bring suit against the Reinsuring
Company in the United States District Court for the district in which the contract described above is to be performed and executed for the "Amount of this
Reinsurance" or, if the amount of the default is for less than the "Amount of this Reinsurance," for whatever the full amount of the default may be. The
Reinsuring Company further covenants and agrees to comply with all requirements necessary to give such court jurisdiction, and to consent to determination
of matters arising under this Reinsurance Agreement in accordance with the law and practice of the court. It is expressly understood by the parties that the
rights, powers, and privileges given in this paragraph to persons are in addition to or supplemental to or in accordance with other rights, powers, and privileges
which they might have under the statutes of the United States, any States, or the other laws of either, and should not be construed as limitations.
3. The Reinsuring Company and the Direct Writing Company further covenant and agree that the Reinsuring Company designates the process agent,
appointed by the Direct Writing Company in the district in which the contract is to be performed and executed, as an agent to accept service of process in any
suit instituted on this Reinsurance Agreement, and that the process agent shall send, by registered mail, to the Reinsuring Company at its principal place of
business shown above, a copy of the process.
4. The Reinsuring Company and the Direct Writing Company further covenant and agree that this Reinsurance Agreement is an integral part of the
payment bond.
WITNESS:
The Direct Writing Company and the Reinsuring Company, respectively, have caused this Agreement to be signed and impressed with their respective
corporate seals by officers possessing the power to sign this instrument, and to be duly attested to by officers empowered thereto, on the day and date in Item
1A written opposite their respective names.

5. DIRECT WRITING COMPANY
5A. (1) SIGNATURE

(2) ATTEST: SIGNATURE

Corporate
5B. (1) NAME AND TITLE (Typed)

(2) NAME AND TITLE (Typed)

Seal

6. REINSURING COMPANY
6A. (1) SIGNATURE

(2) ATTEST: SIGNATURE

Corporate
6B. (1) NAME AND TITLE (Typed)

(2) NAME AND TITLE (Typed)

Seal

INSTRUCTIONS
This form is to be used in cases where it is desired to cover the excess of a Direct Writing Company's
underwriting limitation by reinsurance instead of co-insurance on Bonds Statute payment bonds running
to the United States. See FAR (48 CFR) 28.202-1 and 53.228(i).
Execute and file this form as follows:
Original and copies (as specified by the bond-approving officer), signed and sealed, shall accompany
the bond or be filed within the time period shown in bid or proposal.
One copy, signed and sealed, shall accompany the Direct Writing Company's quarterly Schedule of
Excess Risks filled with the Department of Treasury.
Other copies may be prepared for the use of the Direct Writing Company and Reinsuring Company.
Each Reinsuring Company should use a separate form.

STANDARD FORM 274 (REV. 4/2013) BACK