DAVID E. MARSDEN, Justice.
C. W. Moore Company was the general contractor and Nelson Roofing & Contracting, Inc., was a subcontractor in the construction of public nursing home additions in Itasca County. As required by Minn.St. 574.26, Moore purchased a labor and materials payment bond from United Pacific Insurance Company. Minn.St. 574.31 provides in pertinent part:
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