U.S. Department
of Justice
31 U.s.c Section 9303
Appendix G
| 31 U.S.C. ｧ 9303. | Use of Government obligations instead of surety bonds |
| (a) | 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. The obligation shall -- |
| | (1) | be given to the official having authority to approve the surety bond; | | (2) | be in an amount equal at par value to the amount of the required surety bond; and | | (3) | authorize the official receiving the obligation to collect or sell the obligation if the person defaults on a required condition. |
| (b) | (1) | An official receiving a Government obligation under subsection (a) of this section may deposit it with - |
| | | (A) | the Secretary of the Treasury; |
| | | (B) | a Federal reserve bank; or |
| | (2) | The Secretary, bank, or depository shall issue a receipt that describes the obligation deposited. |
| (c) | Using a Government 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, a Government obligation given instead of a surety bond shall be returned to the person giving the obligation. If a person, supplying labor or material to a contractor defaulting under the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a-270d), files with the United States Government the application and affidavit provided under section 3 of Act (40 U.S.C. 270c), the Government -- |
| | (1) | may return to the contractor the Government obligation given as security (or proceeds of the Government obligation given) under the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a-270d), only after the 90-day period for bringing a civil action under section 2 of the Act (40 U.S.C. 270b); and | | (2) | if a civil action is brought in the 90-day period, shall hold the Government obligation or the proceeds subject to the order of the court having jurisdiction of the action. |
| (e) | This section does not affect the -- |
| | (1) | priority of a claim of the Government against a Government obligation given under this section; | | (2) | right or remedy of the Government for default on an obligation provided under -- |
| | | (A) | the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a-270d); or |
| | | (B) | this section; |
| | (3) | authority of a court over a Government obligation given as security in a civil action; and | | (4) | authority of an official of the Government authorized by another law to receive a Government obligation as security. |
| (f) | To avoid frequent substitution of Government obligations, the Secretary may prescribe regulations limiting the effect of this section to a Government obligation maturing more than one year after the date the obligation is given as security. |
Updated May 7, 2015