Common use of Treasury Department Clause in Contracts

Treasury Department. The City may require additional security if the initial surety becomes insolvent, bankrupt, or otherwise financially unable to protect the City under the terms of the contract. The City’s requiring new or additional security relieves neither the original surety nor the Contractor of their obligations under the contract. City may, without incurring any liability, stop work under the contract until Contractor furnishes additional security.

Treasury Department. The City may require additional security if the initial surety becomes insolvent, bankrupt, or otherwise financially unable to protect the City under the terms of the contractContract. The City’s requiring new or additional security relieves neither the original surety nor the Contractor of their obligations under the contractContract. City may, without incurring any liability, stop work under the contract Contract until Contractor furnishes additional security.