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either or all, performed, furnished or contributed in connection with said

works of improvement, then surety shal I no longer be bound thereon. Said

bonds shall be subject to approval by the Director as to sufficiency and

liability of sureties named thereon. Said bonds shall be maintained in full

force and effect by Society until said works of improvement have been

completed and claims for labor and materials have been paid.

2. The Director may accept in lieu of the bonds heretofore described,

the performance and payment bonds of corporations duly authorized to issue

surety bonds by the State, naming as principal a licensed contractor

employed by Society to construct works of improvement on said property,

provided each bond is in an amount equal to the percentage hereinabove

provided for said bonds of the cost of the construction to be performed by

said contractor; names County as an additional obligee; contains terms and

conditions substantially similar to the requirements heretofore specified; and

is satisfactory as to sufficiency and liability of sureties named thereon.

3. The Director may also accept in lieu of the bonds heretofore

described, the promise of one or more individuals to pay County in the event

of a default of Society to well and truly perform the construction, pursuant

to the approved plans and specifications therefor, and to pay claimants, as

herein defined, in the event of a default of Society to pay or cause to be

paid, all claims for labor, materials, appliances, teams, or power, or either

or all,·· performed, furnished or contributed. in connection with said works of

improvement, provided corporate surety bonds cannot be obtained; the

suretyship obligation is in writing; the liability as surety and /or guarantor of

said principle obligation is commensurate with Society, becomes absolute upon

breach and can be exonerated only by performance or payment; and the

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