§ 9303. — Use of Government obligations instead of surety bonds.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC9303]
TITLE 31--MONEY AND FINANCE
SUBTITLE VI--MISCELLANEOUS
CHAPTER 93--SURETIES AND SURETY BONDS
Sec. 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 contractor
defaulting under sections 3131 and 3133 of title 40, files with the
United States Government the application and affidavit provided under
section 3133(a) of title 40, the Government--
(1) may return to the contractor the Government obligation given
as security (or proceeds of the Government obligation given) under
sections 3131 and 3133 of title 40 only after the 90-day period for
bringing a civil action under section 3133(b) of title 40; 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) sections 3131 and 3133 of title 40; 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.
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1046; Pub. L. 107-217,
Sec. 3(h)(9), Aug. 21, 2002, 116 Stat. 1300; Pub. L. 108-178,
Sec. 4(f)(2), Dec. 15, 2003, 117 Stat. 2641.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
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9303(a).............................. 6:15(1st sentence).
9303(b).............................. 6:15(3d sentence).
9303(c).............................. 6:15(2d sentence).
9303(d).............................. 6:15(4th, 5th sentences).
9303(e).............................. 6:15(6th, 8th sentences).
9303(f).............................. 6:15(7th, 9th, 11th
sentences).
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In subsection (a), before clause (1), the words ``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'' are substituted for ``Wherever by the laws of the United States
or regulations made pursuant thereto, any person is required to furnish
any recognizance, stipulation, bond, guaranty, or undertaking,
hereinafter called `penal bond', with surety or sureties, such person
may, in lieu of such surety or sureties, deposit as security . . .
United States Liberty bonds or other bonds or notes of the United
States'' to eliminate unnecessary words and for consistency. The words
``The obligation shall be'' are added because of the restatement. Clause
(3) is substituted for ``together with an agreement authorizing such
official to collect or sell such bonds or notes so deposited in case of
any default in the performance of any of the conditions or stipulations
of such penal bond'' to eliminate unnecessary words.
In subsection (b)(1), before clause (A), the words ``An official
receiving a Government obligation under subsection (a) of this section
may deposit it with'' are substituted for ``The bonds or notes deposited
hereunder, and such other United States bonds or notes as may be
substituted therefor from time to time as such security, may be
deposited with'' for clarity and consistency and to eliminate
unnecessary words. Clause (A) is substituted for ``Treasurer of the
United States'' because of the source provisions restated in section
321(c) of the revised title. In clause (C), the words ``duly'' and ``for
that purpose'' are omitted as unnecessary.
Subsection (b)(2) is substituted for ``which shall issue receipt
therefor, describing such bonds or notes so deposited'' to eliminate
unnecessary words and for consistency.
In subsection (c), before clause (1), the words ``Using a Government
obligation instead of a surety bond for security is the same as using''
are substituted for ``The acceptance of such United States bonds or
notes in lieu of surety or sureties required by law shall have the same
force and effect as'' to eliminate unnecessary words and for
consistency. In clause (1), the word ``personal'' is substituted for
``individual'' for consistency.
Subsection (d) is substituted for 6:15(4th, 5th sentences) to
eliminate unnecessary words and for consistency in the revised title and
with other titles of the Code.
In subsection (e), before clause (1), the words ``This section does
not'' are substituted for ``Nothing herein contained shall'' for clarity
and consistency. The words ``or impair'' are omitted as being covered by
``affect''. Clause (1) is substituted for ``the bonds or notes
deposited'' for clarity and consistency. In clause (2), the words ``of
said penal bond'' are omitted because of the restatement. In clause (3),
the words ``civil action'' are substituted for ``judicial proceedings''
for consistency. In clause (4), the word ``official'' is substituted for
``administrative officer'' for consistency.
In subsection (f), the words ``in order'' are omitted as
unnecessary. The words ``Government obligations'' are substituted for
``securities'' and for ``bonds and notes of the United States'' for
consistency. The words ``the Secretary may prescribe regulations
limiting'' are substituted for ``such rules and regulations may limit''
for clarity and consistency. The words ``in appropriate classes of
cases'' are omitted as unnecessary. The words ``the obligation is
given'' are substituted for ``of deposit of such bonds'' for clarity and
consistency. The text of 6:15(7th sentence) is omitted as executed. The
text of 6:15(9th sentence) is omitted because of section 321 of the
revised title.
Amendments
2003--Subsec. (d)(1). Pub. L. 108-178 struck out comma after
``sections 3131 and 3133 of title 40''.
2002--Subsec. (d). Pub. L. 107-217, Sec. 3(h)(9)(A), in introductory
provisions substituted ``sections 3131 and 3133 of title 40'' for ``the
Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 270a-270d)''
and ``section 3133(a) of title 40'' for ``section 3 of the Act (40
U.S.C. 270c)''.
Subsec. (d)(1). Pub. L. 107-217, Sec. 3(h)(9)(B), substituted
``sections 3131 and 3133 of title 40'' for ``the Act of August 24, 1935
(known as the Miller Act) (40 U.S.C. 270a-270d)'' and ``section 3133(b)
of title 40'' for ``section 2 of the Act (40 U.S.C. 270b)''.
Subsec. (e)(2)(A). Pub. L. 107-217, Sec. 3(h)(9)(C), substituted
``sections 3131 and 3133 of title 40'' for ``the Act of August 24, 1935
(known as the Miller Act) (40 U.S.C. 270a-270d)''.
Effective Date of 2003 Amendment
Amendment by Pub. L. 108-178 effective Aug. 21, 2002, see section 5
of Pub. L. 108-178, set out as a note under section 5334 of Title 5,
Government Organization and Employees.
Section Referred to in Other Sections
This section is referred to in title 11 section 345; title 26
sections 5177, 5403, 7102, 7485.
