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Complete Representation of the Construction Industry. Our clients include Owners, Developers, Individual and Corporate Sureties, General Contractors, Subcontractors, Architects and Engineers.

Meeting the Owners' Concerns
  • The Owner understandably has an interest in ensuring that if, after default, the Trust’s proposed cure is unacceptable; the Owner can go against the ITR if necessary.
  • The Owner may also want assurances that it would have the sole and unrestricted right to draw upon all or any part of the assets deposited in the escrow account.
  • Such concerns anticipate a situation where the Trust is not able to respond in any way to the default.
  • Although the Trust deems this possibility to be extremely remote, the Trust notes that, as far as the Obligee/Owner recovering assets from the ITR in the event of a default, there several protections are identified in the ITR language.

    --- First, in the ITR, the Trustee, the Trust, of the assets, declares that the ITR is subject to the International Chamber of Commerce’s (“ICC”) terms governing credit, including the repayment of funds because of a default. 
    --- The ITR states that funds are recovered in the event of a default when the Trust receives an invoice(s) from the Obligee where the outstanding amounts have been confirmed and such payments by the Trust will continue until exonerated by the Obligee.
  • Simply put, when the Trust’s surety FSA receives an invoice(s) from the Obligee/Owner for outstanding funds due to the Obligee, and both the Surety and Trust has investigated the claim and confirmed the funds are due the Obligee through the Trustee’s due diligence, the Trust will then pay the invoice(s) and said payment will be within 45 banking days.

    --- Invoices should be mailed andor scanned and emailed to the Surety at the address in the bond.   The Trust has suggested that the Obligee do both mail and email to ensure prompt response.
  • The Trust’s ITR authorizes the Owner as the beneficiary/Obligee to collect against the trust assets, and the Trust does have a legally binding obligation to pay the Owner as stated in the second paragraph of the ITR if there is a default. 
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