SF 274 Reinsurance Agreement for a Bonds Statute Payment Bond

Reinsurance Agreement For A Bonds Statute Payment Bond OMB Control Number: 9000-0001
Expiration Date: 1/31/2027
(See instructions on Page 4)
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

4. Description Of Bond

3A. Amount Of Contract

4A. Penal Sum Of Bond

3B. Contract Date

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)

*Items 1, 2 ,4D - furnished legal name, business address and ZIP Code.
Authorized For Local Reproduction
STANDARD FORM 274 (REV. 10/2023)
Previous Edition Is Not Usable
Prescribed by GSA - FAR (48 CFR) 53.228(i)

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."

STANDARD FORM 274 (REV. 10/2023) PAGE 2

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

5B. (1) Name And Title (Typed)

(2) Name And Title (Typed)

Corporate
Seal

6. Reinsuring Company
6A. (1) Signature

(2) Attest: Signature
Corporate

6B. (1) Name And Title (Typed)

(2) Name And Title (Typed)

Seal

STANDARD FORM 274 (REV. 10/2023) PAGE 3

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(a)(4) 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.

Paperwork Reduction Act Statement
This information collection meets the requirements of 44 USC § 3507, as amended by section 2 of the
Paperwork Reduction Act of 1995. You do not need to answer these questions unless we display a valid
Office of Management and Budget (OMB) control number. The OMB control number for this collection is
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questions. Send only comments relating to our time estimate, including suggestions for reducing this
burden, or any other aspects of this collection of information to: U.S. General Services Administration,
Regulatory Secretariat Division (MVCB), 1800 F Street, NW, Washington, DC 20405.

STANDARD FORM 274 (REV. 10/2023) PAGE 4