B-3.2
PROVIDED, that beneficiaries or claimants hereunder shall be limited to the subcontractors, and
persons, firms, and corporations having a direct contract with the PRINCIPAL or its
SUBCONTRACTORS.
PROVIDED FURTHER, that the said Surety for value received hereby stipulates and agrees that
no change, extension of time, alteration or addition to the terms of the contract or to the WORK to
be performed thereunder or the SPECIFICATIONS accompanying the same shall in any way
affect its obligation on this BOND, and it does hereby waive notice of any such change, extension
of time, alteration or addition to the terms of the contract or to the WORK or to the
SPECIFICATIONS.
PROVIDED, FURTHER that no suit or action shall be commenced hereunder by any claimant: (a)
Unless claimant, other than one having a direct contract with the PRINCIPAL shall have given
written notice to any two of the following: The PRINCIPAL, the OWNER, or the SURETY above
named within ninety (90) days after such claimant did or performed the last of the work or labor, or
furnished the last of the materials for which said claim is made, stating with substantial accuracy the
amount claimed and the name of the party to whom the materials were furnished, or for whom the
work or labor was done or performed. Such notice shall be served by mailing the same by
registered mail or certified mail, postage prepaid, in an envelope addressed to the PRINCIPAL,
OWNER, or SURETY, at any place where an office is regularly maintained for the transaction
business, or served in any manner in which legal process may be served in the state in which the
aforesaid project is located, save that such service need not be made by a public officer. (b) After
the expiration of one (1) year following the date on which PRINCIPAL ceased work on said
CONTRACT, it being understood, however, that if any limitation embodied in the BOND is
prohibited by any law controlling the construction hereof, such limitation shall be deemed to be
amended so as to be equal to the minimum period of limitation permitted by such law.
PROVIDED, FURTHER, that it is expressly agreed that this BOND shall be deemed amended
automatically and immediately, without formal and separate amendments hereto, upon amendment
to the Contract not increasing the contract price more than 20 percent, so as to bind the PRINCIPAL
and the SURETY to the full and faithful performance of the Contract as so amended. The term
"Amendment", wherever used in this BOND and whether referring to this BOND, the contract or
the loan Documents shall include any alteration, addition, extension or modification of any
character whatsoever.
PROVIDED FURTHER, that no final settlement between the OWNER and the CONTRACTOR
shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.
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