Page:United States Statutes at Large Volume 96 Part 1.djvu/1088

 96 STAT. 1046

PUBLIC LAW 97-258—SEPT. 13, 1982 CHAPTER 93—SURETIES AND SURETY BONDS

Sec. 9301. 9302. 9303. 9304. 9305. 9306.

Definitions. Prohibition against surety bonds for United States Government personnel. Use of Government obligations instead of surety bonds. Surety corporations. Authority and revocation of authority of surety corporations. Surety corporations acting outside area of incorporation and place of principal office. 9307. Civil actions and judgments against surety corporations. 9308. Civil penalty. 9309. Priority of sureties.

§9301. Definitions In this chapter— (1) "person" means an individual, a trust, an estate, a partnership, and a corporation. (2) "Government obligation" means a public debt obligation of the United States Government and an obligation whose principal and interest is unconditionally guaranteed by the Government. § 9302. Prohibition against surety bonds for United States Government personnel An agency (except a mixed-ownership Government corporation) may not require or obtain a surety bond for a member of the uniformed services or an officer or employee of the United States Government in carrying out official duties. This section does not affect the personal financial liability of the member, officer, or employee. § 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 (C) a depositary designated by the Secretary. (2) The Secretary, bank, or depositary 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 contrac-

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