§ 9305. — Authority and revocation of authority of surety corporations.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC9305]
TITLE 31--MONEY AND FINANCE
SUBTITLE VI--MISCELLANEOUS
CHAPTER 93--SURETIES AND SURETY BONDS
Sec. 9305. Authority and revocation of authority of surety
corporations
(a) Before becoming a surety under section 9304 of this title, a
surety corporation must file with the Secretary of the Treasury--
(1) a copy of the articles of incorporation of the corporation;
and
(2) a statement of the assets and liabilities of the corporation
signed and sworn to by the president and secretary of the
corporation.
(b) The Secretary may authorize in writing a surety corporation to
provide surety bonds under section 9304 of this title if the Secretary
decides that--
(1) the articles of incorporation of the corporation authorize
the corporation to do business described in section 9304(a)(2) of
this title;
(2) the corporation has paid-up capital of at least $250,000 in
cash or its equivalent; and
(3) the corporation is able to carry out its contracts.
(c) A surety corporation authorized under subsection (b) of this
section to provide surety bonds shall file with the Secretary each
January, April, July, and October a statement of the assets and
liabilities of the corporation signed and sworn to by the president and
secretary of the corporation.
(d) The Secretary--
(1) shall revoke the authority of a surety corporation to do new
business if the Secretary decides the corporation is insolvent or is
in violation of this section or section 9304 or 9306 of this title;
(2) may investigate the solvency of a surety corporation at any
time; and
(3) may require additional security from the person required to
provide a surety bond if the Secretary decides that a surety
corporation no longer is sufficient security.
(e) A surety corporation providing a surety bond under section 9304
of this title may not provide any additional bond under that section
if--
(1) the corporation does not pay a final judgment or order
against it on the bond; and
(2) no appeal or stay of the judgment or order is pending 30
days after the judgment or order is entered.
(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1047.)
Historical and Revision Notes
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Revised Section Source (U.S. Code) Source (Statutes at Large)
----------------------------------------------------------------------------------------------------------------
9305(a), (b)......................... 6:8.
9305(c), (d)......................... 6:9.
9305(e).............................. 6:11.
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In subsection (a), before clause (1), the words ``Before becoming a
surety under section 9304 of this title, a surety corporation must
file'' are substituted for ``Every company, before transacting any
business under sections 6 to 13 of this title, shall deposit'' for
consistency and as being more precise. In clause (1), the words
``charter or'' are omitted as being included in ``articles of
incorporation''.
Subsection (b) is substituted for 6:8(2d sentence) for clarity and
consistency and because of the restatement.
In subsection (c), the words ``A surety corporation authorized under
subsection (b) of this section to provide surety bonds'' are substituted
for ``Every such company'' for clarity. The words ``as is required by
section 8 of this title'' are omitted as unnecessary because of the
restatement.
In subsection (d)(1), the word ``shall'' is substituted for ``shall
have the power, and it shall be his duty, to'' to eliminate unnecessary
words. The words ``under sections 6 to 13 of this title'' are omitted as
unnecessary because of the restatement. The words ``conducting its
business'' are omitted as surplus. In clause (3), the words ``that . . .
be given at any time'' are omitted as surplus. The words ``from the
person required to provide a surety bond'' are substituted for ``by any
principal'' for clarity.
Subsection (e) is substituted for 6:11 to eliminate unnecessary
words, for clarity and consistency, and because of the restatement.
Section Referred to in Other Sections
This section is referred to in sections 9304, 9307, 9308 of this
title; title 5 section 8478; title 12 section 1766; title 29 sections
502, 1112, 1363.
