|31 U.S.C. ï½§ 9303.||Use of Government obligations instead of|
|(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 |
| ||(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; 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.