Holdback Bond definition
Holdback Bond means a bond issued by a surety company licensed to issue surety bonds in Alberta that guarantees the Consultant’s obligations under the Agreement for the purpose of allowing The City to release funds to the Consultant that have been held back by The City in accordance with the requirements of the Prompt Payment and Construction Lien Act.
Examples of Holdback Bond in a sentence
This Release of Holdback Bond shall remain in full force and effect from the inception date of the Contract and up to and including six months beyond the Contract completion date as evidenced by the letter of acceptance of Contract completion furnished by the Obligee.
No right of action shall accrue on the Release of Holdback Bond to or for the use of any person or corporation other than the Obligee or the heirs, executors, administrators, or successors of the Obligee.
The Surety shall not be liable for a greater sum than the amount specified in this Release of Holdback Bond.