Page:United States Statutes at Large Volume 76A.djvu/164

–68– -68faction of the court that any of its sureties is or has become insufficient, the court, upon notice, may order the giving of a new undertaking, with sufficient sureties, in lieu of the insufficient one. All rights obtained by the filing of the original undertaking shall immediately cease if: (1) the new undertaking is not given within the time required by the order; or (2) the sureties thereon fail to justify when required. § 432. Corporations as sureties When an undertaking or bond, with any number of sureties, is authorized or required by a law of the Canal Zone, a corporation with a paid-up capital of not less than $100,000, incorporated under the laws of a State of the United States for the purpose of making, guaranteeing, or becoming a surety upon bonds or undertakings required or authorized by law; or which, by the laws of the State where it was incorporated has that power; and which shall have complied with all the requirements of the law for the admission of corporations to transact that business in the Canal Zone, may become and shall be accepted as security or as sole and sufficient surety upon the undertaking or bond, and it shall be subject to all the liabilities and entitled to all the rights of natural person sureties. § 433. Justification by corporate sureties (a) When the surety on a bond or undertaking authorized or required by a law of the Canal Zone is a foreign corporation, authorized to be a surety on bonds or undertakings in the Canal Zone, and exception is taken to its sufficiency as required by law, the corporate surety may justify on the bond or undertaking as provided in this section. An agent, attorney in fact, or officer of the corporation shall submit to the court, judge, officer, board, or other person before whom the justification is to be made: (1) the original, or a certified copy of the power of attorney, bylaws, or other instrument showing the authority to execute the bonds or undertakings of the person or persons who executed them; (2) a certified copy of the certificate of authority showing that the corporation is authorized to transact business; (3) a certificate from the executive secretary showing that the certificate of authority has not been surrendered, revoked, canceled, annulled, or suspended, or in the event that it has been, that renewed authority to act under it has been granted; (4) a financial statement verified under oath by the president, or a vice president and attested by the secretary or an assistant secretary of the corporation, showing the assets and liabilities of the corporation at the end of the quarter calendar year prior to the 45 days preceding the date of the execution of the bond or undertaking. (b) The justification of the surety shall be complete and it shall be accepted as the sole and sufficient surety on the bond or undertaking if, upon complying with subsection (a) of this section, it appears that: (1) the bond or undertaking was duly executed; (2) the corporation is authorized to transact business in the Canal Zone; and (3) its assets exceed its liabilities in an amount equal to, or in excess of the amount of the bond or undertaking. § 434. Cash deposit in lieu of bond In proceedings in which a bond is required the clerk of the district court may accept a cash deposit in the sum of the bond. Where a

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