Los angeles Savings Clause

[roy481]

Does anyone have a "Dual Obligee Rider" containing the "LA Savings Clause"?

If so, would you send it to my email roy.may@lincolngeneral.com?

thanks

I don't think I have ever heard of a LosAngeles Savings Clause, is it used just for California, or is that just the name given to a particular type of dual obligee language?

P.S. I see you are in Florida and with Lincoln General - tell Jay that Glenn says hi!

[roy481]

As I understand it. it is language entered into a multiple obligee rider that was originated in los angeles hence the name.

I am not sure of the exact origin of the statement.

I would lofe to tell jay hello for you but I would need a last name. there are several Glen's in this business

[Admin]

I did a search online, but found little other than formal definitions and a link on the SBA site. I'll post them below in hopes that it will help others to assist you better, good luck!


Dual Obligee Bond
A bond which names as additional obligee a lender or other party, putting them in a position to invoke the performance features of the bond. Obligees are most often added to the bond by a Dual Obligee Rider to the bond, rather than being named in the body of the bond.


Savings Clause

In a dual obligee rider, the savings clause requires the additional named obligee to fulfill the contractual obligations of the contract in order to invoke the performance features of the bond.



SBA FAQ - http://www.sba.gov/OSG/scquest.html

Is this the wording you are looking for?


IT IS FURTHER UNDERSTOOD AND AGREED that the above described bond is amended to include the following Paragraphs:

Notwithstanding anything contained herein to the contrary, the Principal and Surety shall not be liable under this bond to the Obligees, or either of them, unless the said Obligees, or either of them, shall make payments to the Principal strictly in accordance with the terms of said contract as to payments, and shall perform all the other obligations to be performed under said contract at the time and in the manner therein set forth.

The aggregate liability of the surety hereunder to the Obligees is limited to the penal sum above stated and Surety, upon making payment hereunder, shall be subrogated to, and shall be entitled to an assignment of all rights of the payee, either against principal or against any other party liable to the payee on the discharged obligation.

Nothing herein contained shall be held to change, alter or vary the terms of the above described bond except as hereinbefore set forth.





And, if Jay doesn't know which Glenn, tell him from Chicago.