To draft a cancellation of the surety bond,
you can follow the below steps:
Identify the parties involved:
Provide the names of the obligee (the person who requires the bond) and the principal (the person providing the bond).
Provide the bond details:
Specify the bond number, date of execution, and any other relevant details related to the bond.
Reason for cancellation:
State the reason why the surety bond is being canceled.
Termination of liability:
Indicate that the surety's liability under the bond is being terminated and that the obligee is no longer entitled to make a claim against the bond.
Effective date:
Set the effective date of the cancellation, and specify that it will be binding on both parties from that date.
Signature:
Both the obligee and the surety should sign the cancellation.
Example:
Cancellation of Surety Bond
This Cancellation of Surety Bond (“Cancellation”) is made and entered into this [date] by and between [Obligee Name], with a mailing address of [Address] (“Obligee”) and [Surety Name], with a mailing address of [Address] (“Surety”).
Bond Details:
The Surety and the Principal executed a Surety Bond in the amount of [$Amount] on [Date], under Bond Number [Number].
Reason for Cancellation:
The Surety and the Obligee have mutually agreed to cancel the Surety Bond.
Termination of Liability:
The cancellation of this Surety Bond shall terminate the Surety’s liability under the Bond. The Obligee shall no longer be entitled to make a claim against the Bond.
Effective Date:
This Cancellation shall be binding on both parties from [Date].
IN WITNESS WHEREOF, the undersigned have executed this Cancellation as of the date first above written.
[Obligee Name] [Surety Name]
[Signature] [Signature]
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