Surety Bond

SURETY BOND

FUEL TAX ACT, R.S.O. 1990 c. F.35, as amended, and/or
GASOLINE TAX ACT, R.S.O. 1990 c. G.5, as amended

Bond No.:        ****                                                    Amount:          ****

**** of the ****, in the Province of **** (hereinafter called the "Principal"), and ****  a corporation created and existing under the laws of Canada and duly licensed to transact the business of suretyship in Ontario (at Ontario address) (hereinafter called the "Surety"), jointly and severally bind themselves, their heirs, executors, administrators, successors and assigns, to Her Majesty the Queen in Right of the Province of Ontario as represented by the Minister of Finance (hereinafter called the "Minister") in the penal sum of **** Dollars ($****) of lawful money of Canada.

WHEREAS under the provisions of the FUEL TAX ACT, R.S.O. 1990 c. F.35, as amended, and/or the GASOLINE TAX ACT, R.S.O. 1990 c. G.5, as amended [the "Act(s)"], the Principal is an agent of the Minister for the purpose of collecting the tax imposed by the Act(s), or the holder of a permit or registration certificate, and pursuant to the Act(s) is required to furnish security in a form acceptable to the Minister.

NOW THEREFORE the condition of this obligation is such that if the Principal shall well and truly comply with all of the provisions and requirements of the Act(s) and the regulations made thereunder, and any amendments thereto, including the timely remittance of any tax collected, collectable or payable by the Principal then this obligation shall be null and void, otherwise to remain in full force and effect subject, however, to the following conditions:

1. The Minister's demand for payment pursuant to this bond (a "Claim"), shall be in writing over the signature of any one of the Deputy Minister of Finance; the Commissioner of Revenue; the Assistant Deputy Minister Tax Revenue Division; the Director of the Client Accounts and Services Branch; the Director of the Revenue Collections Branch and the Director of the Legal Services Branch for the Minister of Finance or any of their respective heirs, successors and assigns.
2. The Surety shall, within 30 days from the Minister's demand, pay to the Minister the amount of the Claim not exceeding the bond amount.
3. In the event the Principal has, by the payment date in 2 above, filed a written objection to the assessment or statement of disallowance that is the subject of the Claim, the Surety shall not be obligated to pay the amount of the Claim until such time as the dispute is resolved by the Principal and the Minister or finally resolved by a court of competent jurisdiction.
4. If the Surety shall at any time hereafter give written notice by registered mail to the Minister, at 33 King Street West PO Box 625 Oshawa ON L1H 8H9, to the attention of the Senior Manager, Motor Fuels and Tobacco Tax Operations, Client Accounts and Services Branch, or his or her successor, heir, or assigns, of its intention to terminate the obligation hereby undertaken then this obligation and all liability of the Surety shall, on the expiration of sixty (60) days from the receipt by the Minister of such notice (the "Termination Date"), cease and determine so far as concerns any liability or default of the Principal subsequent to the Termination Date, but otherwise shall remain in full force and effect in respect of any liability or default of the Principal that arose prior to the Termination Date.
5. The Surety shall not be liable for a greater sum than the bond amount.  For greater certainty, the penal sum of this Bond is not and shall not be cumulative from year to year.
6. No right of action shall accrue on this Bond by or for any person or corporation other than the Minister.

IN WITNESS WHEREOF the Principal and the Surety have executed and sealed this bond by their duly authorized signing officers this **** day of **** 200 .

 

By:                                            C/S

Name:                                                                          Title:

I have authority to bind the Corporation.

 

                                                C/S                                                                   C/S
**** Attorney-in-fact                                          **** Attorney-in-fact