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The Indemnity Agreement For Surety Bond is a critical document used in Irish business transactions where a party (Principal) requires a surety bond to secure their performance or financial obligations. This agreement is essential because the surety company (typically a bank or insurance company) requires protection against potential losses they might incur if called upon to pay under the bond. The document is particularly common in construction projects, government contracts, and financial transactions in Ireland where performance or payment bonds are mandatory. The agreement must comply with Irish contract law, the Statute of Frauds (Ireland) 1695, and relevant EU regulations. It typically includes detailed provisions for indemnification scope, claim procedures, security arrangements, and enforcement mechanisms. The agreement becomes particularly important when significant financial obligations are involved or when regulatory requirements mandate the provision of surety bonds.

1. Parties: Identifies and defines all parties to the agreement: the Principal, Surety (usually a bank or insurance company), and Indemnitor(s)

2. Background: Sets out the context of the agreement, including reference to the underlying bond obligation and the purpose of the indemnity

3. Definitions: Defines key terms used throughout the agreement, including 'Bond', 'Loss', 'Claim', and 'Indemnified Amount'

4. Indemnification Obligations: Core section detailing the scope and nature of the indemnity, including what losses and expenses are covered

5. Payment Terms: Specifies when and how payments must be made under the indemnity, including timing and method of payment

6. Claims Procedure: Details the process for making claims under the indemnity, including notice requirements and documentation

7. Representations and Warranties: States the representations and warranties made by the Indemnitor regarding their capacity and authority

8. Security and Collateral: Outlines any security or collateral requirements to support the indemnity obligations

9. Duration and Termination: Specifies the term of the agreement and conditions for termination

10. Governing Law and Jurisdiction: Establishes Irish law as governing law and specifies jurisdiction for disputes

11. Execution: Formal execution blocks for all parties to sign