31 U.S.C. § 9303 — Use of eligible obligations instead of sur-

Page 582 TITLE 31—MONEY AND FINANCE § 9303 connection with the performance of their official du- ties’’ to eliminate unnecessary words and because of the restatement. The words ‘‘to the Federal Govern- ment’’ are omitted as surplus. The words ‘‘member, of- ficer, or employee’’ are substituted for ‘‘employees and personnel’’ because of the restatement. § 9303. Use of eligible obligations instead of sur- ety bonds (a) If a person is required under a law of the United States to give a surety bond, the person may give an eligible obligation as security in- stead of a surety bond. The obligation shall— (1) be given to the official having authority to approve the surety bond; (2) as determined by the Secretary of the Treasury, have a market value that is equal to or greater than the amount of the required surety bond; and (3) authorize the official receiving the obli- gation to collect or sell the obligation if the person defaults on a required condition. (b)(1) An official receiving an eligible obliga- tion under subsection (a) of this section may de- posit it with— (A) the Secretary of the Treasury; (B) a Federal reserve bank; or (C) a depositary designated by the Sec- retary. (2) The Secretary, bank, or depositary shall issue a receipt that describes the obligation de- posited. (c) Using an eligible obligation instead of a surety bond for security is the same as using— (1) a personal or corporate surety bond; (2) a certified check; (3) a bank draft; (4) a post office money order; or (5) cash. (d) When security is no longer required, an eli- gible obligation given instead of a surety bond shall be returned to the person giving the obli- gation. If a person, supplying labor or material to a contractor defaulting under sections 3131 and 3133 of title 40, files with the United States Government the application and affidavit pro- vided under section 3133(a) of title 40, the Gov- ernment— (1) may return to the contractor the eligible obligation given as security (or proceeds of the eligible obligation given) under sections 3131 and 3133 of title 40 only after the 90-day period for bringing a civil action under section 3133(b) of title 40; and (2) if a civil action is brought in the 90-day period, shall hold the eligible obligation or the proceeds subject to the order of the court hav- ing jurisdiction of the action. (e) This section does not affect the— (1) priority of a claim of the Government against an eligible obligation given under this section; (2) right or remedy of the Government for default on an obligation provided under— (A) sections 3131 and 3133 of title 40; or (B) this section; (3) authority of a court over an eligible obli- gation given as security in a civil action; and (4) authority of an official of the Govern- ment authorized by another law to receive an eligible obligation as security. (f) To avoid frequent substitution of eligible obligations, the Secretary may prescribe regula- tions limiting the effect of this section to an eli- gible obligation maturing more than one year after the date the obligation is given as secu- rity. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1046; Pub. L. 107–217, § 3(h)(9), Aug. 21, 2002, 116 Stat. 1300; Pub. L. 108–178, § 4(f)(2), Dec. 15, 2003, 117 Stat. 2641; Pub. L. 109–351, title IX, § 901(b), (c), Oct. 13, 2006, 120 Stat. 2007.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 9303(a) ..... 6:15(1st sentence). 9303(b) ..... 6:15(3d sentence). 9303(c) ..... 6:15(2d sentence). 9303(d) ..... 6:15(4th, 5th sen- tences). 9303(e) ..... 6:15(6th, 8th sen- tences). 9303(f) ..... 6:15(7th, 9th, 11th sentences). In subsection (a), before clause (1), the words ‘‘If a person is required under a law of the United States to give a surety bond, the person may give a Government obligation as security instead of a surety bond’’ are substituted for ‘‘Wherever by the laws of the United States or regulations made pursuant thereto, any per- son is required to furnish any recognizance, stipula- tion, bond, guaranty, or undertaking, hereinafter called ‘penal bond’, with surety or sureties, such person may, in lieu of such surety or sureties, deposit as security . . . United States Liberty bonds or other bonds or notes of the United States’’ to eliminate unnecessary words and for consistency. The words ‘‘The obligation shall be’’ are added because of the restatement. Clause (3) is substituted for ‘‘together with an agreement au- thorizing such official to collect or sell such bonds or notes so deposited in case of any default in the per- formance of any of the conditions or stipulations of such penal bond’’ to eliminate unnecessary words. In subsection (b)(1), before clause (A), the words ‘‘An official receiving a Government obligation under sub- section (a) of this section may deposit it with’’ are sub- stituted for ‘‘The bonds or notes deposited hereunder, and such other United States bonds or notes as may be substituted therefor from time to time as such secu- rity, may be deposited with’’ for clarity and consist- ency and to eliminate unnecessary words. Clause (A) is substituted for ‘‘Treasurer of the United States’’ be- cause of the source provisions restated in section 321(c) of the revised title. In clause (C), the words ‘‘duly’’ and ‘‘for that purpose’’ are omitted as unnecessary. Subsection (b)(2) is substituted for ‘‘which shall issue receipt therefor, describing such bonds or notes so de- posited’’ to eliminate unnecessary words and for con- sistency. In subsection (c), before clause (1), the words ‘‘Using a Government obligation instead of a surety bond for security is the same as using’’ are substituted for ‘‘The acceptance of such United States bonds or notes in lieu of surety or sureties required by law shall have the same force and effect as’’ to eliminate unnecessary words and for consistency. In clause (1), the word ‘‘per- sonal’’ is substituted for ‘‘individual’’ for consistency. Subsection (d) is substituted for 6:15(4th, 5th sen- tences) to eliminate unnecessary words and for consist- ency in the revised title and with other titles of the Code. In subsection (e), before clause (1), the words ‘‘This section does not’’ are substituted for ‘‘Nothing herein contained shall’’ for clarity and consistency. The words ‘‘or impair’’ are omitted as being covered by ‘‘affect’’. Clause (1) is substituted for ‘‘the bonds or notes depos- ited’’ for clarity and consistency. In clause (2), the words ‘‘of said penal bond’’ are omitted because of the Page 583 TITLE 31—MONEY AND FINANCE § 9305 restatement. In clause (3), the words ‘‘civil action’’ are substituted for ‘‘judicial proceedings’’ for consistency. In clause (4), the word ‘‘official’’ is substituted for ‘‘ad- ministrative officer’’ for consistency. In subsection (f), the words ‘‘in order’’ are omitted as unnecessary. The words ‘‘Government obligations’’ are substituted for ‘‘securities’’ and for ‘‘bonds and notes of the United States’’ for consistency. The words ‘‘the Secretary may prescribe regulations limiting’’ are sub- stituted for ‘‘such rules and regulations may limit’’ for clarity and consistency. The words ‘‘in appropriate classes of cases’’ are omitted as unnecessary. The words ‘‘the obligation is given’’ are substituted for ‘‘of deposit of such bonds’’ for clarity and consistency. The text of 6:15(7th sentence) is omitted as executed. The text of 6:15(9th sentence) is omitted because of section 321 of the revised title. Editorial Notes AMENDMENTS 2006—Pub. L. 109–351, § 901(c)(1), substituted ‘‘eligible obligations’’ for ‘‘Government obligations’’ in section catchline. Subsec. (a). Pub. L. 109–351, § 901(b), (c)(3), substituted ‘‘an eligible obligation’’ for ‘‘a Government obligation’’ in introductory provisions and amended par. (2) gen- erally. Prior to amendment, par. (2) read as follows: ‘‘be in an amount equal at par value to the amount of the required surety bond; and’’. Subsecs. (b) to (e). Pub. L. 109–351, § 901(c)(3), (4), sub- stituted ‘‘an eligible obligation’’ for ‘‘a Government ob- ligation’’ and ‘‘the eligible obligation’’ for ‘‘the Gov- ernment obligation’’ wherever appearing. Subsec. (f). Pub. L. 109–351, § 901(c)(2), (3), substituted ‘‘eligible obligations’’ for ‘‘Government obligations’’ and ‘‘an eligible obligation’’ for ‘‘a Government obliga- tion’’. 2003—Subsec. (d)(1). Pub. L. 108–178 struck out comma after ‘‘sections 3131 and 3133 of title 40’’. 2002—Subsec. (d). Pub. L. 107–217, § 3(h)(9)(A), in intro- ductory provisions substituted ‘‘sections 3131 and 3133 of title 40’’ for ‘‘the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a–270d)’’ and ‘‘section 3133(a) of title 40’’ for ‘‘section 3 of the Act (40 U.S.C. 270c)’’. Subsec. (d)(1). Pub. L. 107–217, § 3(h)(9)(B), substituted ‘‘sections 3131 and 3133 of title 40’’ for ‘‘the Act of Au- gust 24, 1935 (known as the Miller Act) (40 U.S.C. 270a–270d)’’ and ‘‘section 3133(b) of title 40’’ for ‘‘section 2 of the Act (40 U.S.C. 270b)’’. Subsec. (e)(2)(A). Pub. L. 107–217, § 3(h)(9)(C), sub- stituted ‘‘sections 3131 and 3133 of title 40’’ for ‘‘the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a–270d)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees. § 9304. Surety corporations (a) When a law of the United States Govern- ment requires or permits a person to give a sur- ety bond through a surety, the person satisfies the law if the surety bond is provided for the person by a corporation— (1) incorporated under the laws of— (A) the United States; or (B) a State, the District of Columbia, or a territory or possession of the United States; (2) that may under those laws guarantee— (A) the fidelity of persons holding posi- tions of trust; and (B) bonds and undertakings in judicial pro- ceedings; and (3) complying with sections 9305 and 9306 of this title. (b) Each surety bond shall be approved by the official of the Government required to approve or accept the bond. The official may not require that the surety bond be given through a guar- anty corporation or through any particular guaranty corporation. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1047.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 9304 ......... 6:6. Subsection (a) is substituted for 6:6(1st sentence) to eliminate unnecessary words and for clarity and con- sistency. Clause (3) is added for clarity. In subsection (b), the words ‘‘Each surety bond’’ are substituted for ‘‘Such recognizance, stipulation, bond, or undertaking’’, the words ‘‘official of the Govern- ment’’ are substituted for ‘‘head of department, court, judge, officer, board, or body executive, legislative, or judicial’’, and the word ‘‘official’’ is substituted for ‘‘of- ficer or person having the approval of any bond’’, to eliminate unnecessary words and for clarity and con- sistency. § 9305. Authority and revocation of authority of surety corporations (a) Before becoming a surety under section 9304 of this title, a surety corporation must file with the Secretary of the Treasury— (1) a copy of the articles of incorporation of the corporation; and (2) a statement of the assets and liabilities of the corporation signed and sworn to by the president and secretary of the corporation. (b) The Secretary may authorize in writing a surety corporation to provide surety bonds under section 9304 of this title if the Secretary decides that— (1) the articles of incorporation of the cor- poration authorize the corporation to do busi- ness described in section 9304(a)(2) of this title; (2) the corporation has paid-up capital of at least $250,000 in cash or its equivalent; and (3) the corporation is able to carry out its contracts. (c) A surety corporation authorized under sub- section (b) of this section to provide surety bonds shall file with the Secretary each Janu- ary, April, July, and October a statement of the assets and liabilities of the corporation signed and sworn to by the president and secretary of the corporation. (d) The Secretary— (1) shall revoke the authority of a surety corporation to do new business if the Sec- retary decides the corporation is insolvent or is in violation of this section or section 9304 or 9306 of this title; (2) may investigate the solvency of a surety corporation at any time; and (3) may require additional security from the person required to provide a surety bond if the Secretary decides that a surety corporation no longer is sufficient security.