13 C.F.R. § 115.60 Selection and admission of PSB Sureties.
Title 13 - Business Credit and Assistance
(a) Selection of PSB Sureties. SBA's selection of PSB Sureties will be guided by, but not limited to, these factors: (1) An underwriting limitation of at least $2,000,000 on the U.S. Treasury Department list of acceptable sureties; (2) An agreement to charge Principals no more than the Surety Association of America's advisory premium rates in effect on August 1, 1987; (3) Premium income from contract bonds guaranteed by any government agency (Federal, State or local) of no more than one- quarter of the total contract bond premium income of the Surety; (4) The vesting of underwriting authority for SBA guaranteed bonds only in employees of the Surety; (5) The vesting of final settlement authority for claims and recovery under the PSB program only in employees of the Surety's permanent claims department; and (6) The rating or ranking designations assigned to the Surety by recognized authority. (b) Admission of PSB Sureties. A Surety admitted to the PSB program must execute a PSB Agreement before approving SBA guaranteed bonds. No SBA guarantee attaches to bonds approved before the AA/SG or designee has countersigned the Agreement. [61 FR 3271, Jan. 31, 1996, as amended at 66 FR 30804, June 8, 2001]
Title 13: Business Credit and Assistance
PART 115—SURETY BOND GUARANTEE
Subpart C—Preferred Surety Bond (PSB) Guarantees
§ 115.60 Selection and admission of PSB Sureties.
