Chapter 778. To amend an Act approved August thirteenth, eighteen hundred and ninety-four, entitled “An Act for the protection of persons furnishing materials and labor for the construction of public works.” February 24, 1905. [[H
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CHAP. 778.— An Act To amend an Act approved August thirteenth, eighteen hundred and ninety-four, entitled “An Act for the protection of persons furnishing materials and labor for the construction of public works.” February 24, 1905. [[H. R. 13626](/us/bill/58/hr/13626).] [[Public, No. 100](/us/pl/58/100).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That the Act entitled “AnContractors on public works.Protection of persons furnishing material, etc., to.
Act for the protection of persons furnishing materials and labor for the construction of public works,” approved August thirteenth, 812eighteen hundred and ninety-four, is hereby amended so as to read as follows: " Penal bond to include security for labor, etc.Vol. 28, p. 278, amended.“That hereafter any person or persons entering into a formal contract with the United States for the construction of any public building, or the prosecution and completion of any public work, or for repairs upon any public building or public work, shall be required, before commencing such work, to execute the usual penal bond, with good and sufficient sureties, with the additional obligation that such contractor or contractors shall promptly make payments to all persons supplying him or them with labor and materials in the prosecution of Rights of persons, corporations, etc.the work provided for in such contract; and any person, company, or corporation who has furnished labor or materials used in the construction or repair of any public building or public work, and payment for which has not been made, shall have the right to intervene and be made a party to any action instituted by the United States on the bond of the contractor, and to have their rights and chums adjudicated in such action and judgment rendered thereon, subject, however, to the priority of the claim and judgment of the United States.
If the full amount of the liability of the surety on said bond is insufficient to pay the full amount of said claims and demands, then, after paying the full amount due the United States, the remainder shall be distributed pro rata among Action on bond for labor or material furnished.said interveners. If no suit should be brought by the United States within six months from the Completion and final settlement of said contract, then the person or persons supplying the contractor with labor and materials shall, upon application therefor, and furnishing affidavit to the Department under the direction of which said work has been prosecuted that labor or materials for the prosecution of such work has been supplied by him or them, and payment for which has not been made, be furnished with a certified copy of said contract and bond, upon which be or they shall have a right of action, and shall be, and are Jurisdiction.hereby, authorized to bring suit in the name of the United States in the circuit court of the United States in the district in which said contract was to be performed and executed, irrespective of the amount in controversy in such suit, and not elsewhere, for his or their use and benefit, against said contractor and bis sureties, and to prosecute the *Provisos*.Time limit.same to final judgment and execution: *Provided, *That where suit is instituted by any of such creditors on the bond of the contractor it shall not be commenced until after the complete performance of said contract and final settlement thereof, and shall be commenced within one year after the performance and final settlement of said contract, Creditors limited to single action.and not later: *And provided further,* That where suit is so instituted by a creditor or by creditors, only one action shall be brought, and any creditor may tile bis chum in such action and be made party thereto within one year from the completion of the work under said contract, Judgment where bond is inadequate.and not later.
If the recovery on the bond should be inadequate to pay the amounts found due to all of said creditors, judgment shall be Payment by sureties on bond.given to each creditor pro rata of the amount of the recovery. The surety on said bond may pay into court, for distribution among said claimants and creditors, the full amount of the sureties’ liability, to wit, the penalty named in the bond, less any amount which said surety may have had to pay to the United States by reason of the execution of said bond, and upon so doing the surety will be relieved from Personal notice to creditors.further liability: *Provided further,* That in all suits instituted under the provisions of this Act sack personal notice of the pendency of such suits, informing them of their right to intervene as the court may order, shall be given to all known creditors, and in addition thereto Publication of notice.notice of publication in some newspaper of general circulation, published in the State or town where the contract is being performed, for at least three successive weeks, the last publication to be at least three months before the time limited therefor.
” " Approved, February 24, 1905.