-CITE-

31 USC CHAPTER 93 - SURETIES AND SURETY BONDS 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

CHAPTER 93 - SURETIES AND SURETY BONDS

-MISC1-

Sec.

9301. Definitions.

9302. Prohibition against surety bonds for United States

Government personnel.

9303. Use of Government obligations instead of surety bonds.

9304. Surety corporations.

9305. Authority and revocation of authority of surety

corporations.

9306. 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.

-End-

-CITE-

31 USC Sec. 9301 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9301. Definitions

-STATUTE-

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.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1046.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9301 6:15(10th, last

sentences).

--------------------------------------------------------------------

In clause (1), the words after the semicolon are omitted as

unnecessary because of the restatement.

Clause (2) is substituted for 6:15(last sentence) for consistency

and to eliminate unnecessary words.

-End-

-CITE-

31 USC Sec. 9302 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9302. Prohibition against surety bonds for United States

Government personnel

-STATUTE-

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.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1046.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9302 31:1201. June 6, 1972, Pub. L. 92-310,

Sec. 101, 86 Stat. 201.

--------------------------------------------------------------------

The words "agency (except a mixed-ownership Government

corporation)" are substituted for 31:1201(c)(words before last

comma) and "agency of the Federal Government" because of section

101 of the revised title and for consistency. The words "member of

the uniformed services or an officer or employee of the United

States Government" are substituted for "civilian employees or

military personnel" for consistency with other titles of the United

States Code. The words "in carrying out official duties" are

substituted for "in connection with the performance of their

official duties" to eliminate unnecessary words and because of the

restatement. The words "to the Federal Government" are omitted as

surplus. The words "member, officer, or employee" are substituted

for "employees and personnel" because of the restatement.

-End-

-CITE-

31 USC Sec. 9303 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9303. Use of Government obligations instead of surety bonds

-STATUTE-

(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.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1046; Pub. L. 107-217,

Sec. 3(h)(9), Aug. 21, 2002, 116 Stat. 1300.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

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).

--------------------------------------------------------------------

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

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)".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 11 section 345; title 26

sections 5177, 5403, 7102, 7485.

-End-

-CITE-

31 USC Sec. 9304 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9304. Surety corporations

-STATUTE-

(a) When a law of the United States Government requires or

permits a person to give a surety bond through a surety, the person

satisfies the law if the surety bond is provided for the person by

a corporation -

(1) incorporated under the laws of -

(A) the United States; or

(B) a State, the District of Columbia, or a territory or

possession of the United States;

(2) that may under those laws guarantee -

(A) the fidelity of persons holding positions of trust; and

(B) bonds and undertakings in judicial proceedings; and

(3) complying with sections 9305 and 9306 of this title.

(b) Each surety bond shall be approved by the official of the

Government required to approve or accept the bond. The official may

not require that the surety bond be given through a guaranty

corporation or through any particular guaranty corporation.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1047.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9304 6:6.

--------------------------------------------------------------------

Subsection (a) is substituted for 6:6(1st sentence) to eliminate

unnecessary words and for clarity and consistency. Clause (3) is

added for clarity.

In subsection (b), the words "Each surety bond" are substituted

for "Such recognizance, stipulation, bond, or undertaking", the

words "official of the Government" are substituted for "head of

department, court, judge, officer, board, or body executive,

legislative, or judicial", and the word "official" is substituted

for "officer or person having the approval of any bond", to

eliminate unnecessary words and for clarity and consistency.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9305, 9306, 9307, 9308 of

this title; title 5 section 8478; title 12 section 1766; title 29

sections 502, 1112, 1363.

-End-

-CITE-

31 USC Sec. 9305 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9305. Authority and revocation of authority of surety

corporations

-STATUTE-

(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.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1047.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9305(a), 6:8.

(b)

9305(c), 6:9.

(d)

9305(e) 6:11.

--------------------------------------------------------------------

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.

-SECREF-

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.

-End-

-CITE-

31 USC Sec. 9306 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9306. Surety corporations acting outside area of incorporation

and place of principal office

-STATUTE-

(a) A surety corporation may provide a surety bond under section

9304 of this title in a judicial district outside the State, the

District of Columbia, or a territory or possession of the United

States under whose laws it was incorporated and in which its

principal office is located only if the corporation has a resident

agent for service of process for that district. The resident agent

-

(1) may be an official of the State, the District of Columbia,

the territory or possession in which the court sits who is

authorized or appointed under the law of the State, District,

territory or possession to receive service of process on the

corporation; or

(2) may be an individual who resides in the jurisdiction of the

district court for the district in which a surety bond is to be

provided and who is appointed by the corporation as provided in

subsection (b) (!1)

(b) If the surety corporation meets the requirement of subsection

(a) by appointing an individual under subsection (a)(2), the surety

corporation shall file a certified copy of the power of attorney

with the clerk of the district court for the district in which a

surety bond is to be given at each place the court sits. A copy of

the power of attorney may be used as evidence in a civil action

under section 9307 of this title.

(c)(1) If a resident agent is removed, resigns, dies, or becomes

disabled, the surety corporation shall appoint another agent as

described in this section.

(2) Until an appointment is made under paragraph (1) of this

subsection or during an absence of an agent from the district in

which the surety bond is given, service of process may be made on

the clerk of the court in which a civil action against the

corporation is brought. The official serving process on the clerk

of the court -

(A) immediately shall mail a copy of the process to the

corporation; and

(B) shall state in the official's return that the official

served the process on the clerk of the court.

(3) A judgment or order of a court entered or made after service

of process under this section is as valid as if the corporation

were served in the judicial district of the court.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1048; Pub. L. 106-113,

div. B, Sec. 1000(a)(9) [title V, Sec. 5007], Nov. 29, 1999, 113

Stat. 1536, 1501A-594.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9306 6:7.

--------------------------------------------------------------------

In subsection (a), before clause (1), the words "in a judicial

district" are added for clarity. The word "outside" is substituted

for "beyond the limits" to eliminate unnecessary words. The words

"territory or possession of the United States" are substituted for

"Territory" for consistency in the revised title. The word

"resident" is added for consistency.

In subsection (b), the words "duly . . . and authenticated" are

omitted as surplus. The words "in which a surety bond is to be

given" are added for clarity and because of the restatement. The

words "the court sits" are substituted for "where a term of such

court is or may be held", and the words "A copy of the power of

attorney may be used as evidence in a civil action" are substituted

for "which copy, or a certified copy thereof, shall be legal

evidence in all controversies", to eliminate unnecessary words and

for clarity and consistency.

In subsection (c)(1), the words "a resident" are substituted for

"any such" for clarity. The words "becomes disabled" are

substituted for "become insane, or otherwise incapable of acting"

to eliminate unnecessary words. The words "the surety corporation

shall" are substituted for "it shall be the duty of such company

to" to eliminate unnecessary words and for consistency. The words

"in his place" are omitted as unnecessary.

In subsection (c)(2), before clause (A), the words "the district

in which the surety bond is given" are substituted for "such

district", and the words "a civil action against the corporation"

are substituted for "such suit", for clarity and consistency. The

words "with like effect as upon an agent appointed by the company"

are omitted as unnecessary. The words "official serving" are

substituted for "officer executing such" for consistency. Clause

(2) is substituted for "state such fact in his return" for clarity.

In subsection (c)(3), the words "decree or" are omitted as being

included in "order". The words "and binding" are omitted as being

included in "valid". The words "as if the corporation were served

in the judicial district of the court" are substituted for "on such

company as if served with process in said district" for clarity and

consistency.

AMENDMENTS

1999 - Subsec. (a). Pub. L. 106-113, Sec. 1000(a)(9) [title V,

Sec. 5007(1)], substituted "has a resident agent for service of

process for that district. The resident agent - " and pars. (1) and

(2) for "designates a person by written power of attorney to be the

resident agent of the corporation for that district. The designated

person -

"(1) may appear for the surety corporation;

"(2) may receive service of process for the corporation;

"(3) must reside in the jurisdiction of the district court for

the district in which a surety bond is to be provided; and

"(4) must be a domiciliary of the State, the District of

Columbia, territory, or possession in which the court sits."

Subsec. (b). Pub. L. 106-113, Sec. 1000(a)(9) [title V, Sec.

5007(2)], substituted "If the surety corporation meets the

requirement of subsection (a) by appointing an individual under

subsection (a)(2), the" for "The".

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9304, 9305, 9307, 9308 of

this title; title 5 section 8478; title 12 section 1766; title 29

sections 502, 1112, 1363.

-FOOTNOTE-

(!1) So in original. Probably should be followed by a period.

-End-

-CITE-

31 USC Sec. 9307 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9307. Civil actions and judgments against surety corporations

-STATUTE-

(a)(1) A surety corporation providing a surety bond under section

9304 of this title may be sued in a court of the United States

having jurisdiction of civil actions on surety bonds in -

(A) the judicial district in which the surety bond was

provided; or

(B) the district in which the principal office of the

corporation is located.

(2) Under sections 9304-9308 of this title, a surety bond is

deemed to be provided in the district -

(A) in which the principal office of the surety corporation is

located;

(B) to which the surety bond is returnable;

(C) in which the surety bond is filed; and

(D) in which the person required to provide a surety bond

resided when the bond was provided.

(b) In a proceeding against a surety corporation providing a

surety bond under section 9304 of this title, the corporation may

not deny its power to provide a surety bond or to assume liability.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1049.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9307(a) 6:10.

9307(b) 6:12.

--------------------------------------------------------------------

In subsection (a)(1), before clause (A), the words "corporation

providing a surety bond" are substituted for "company doing

business" for consistency. The words "in respect thereof" are

omitted as surplus. The words "civil actions on surety bonds" are

substituted for "actions or suits upon such recognizance,

stipulation, bond, or undertaking" for consistency. In clause (A),

the words "the surety bond was provided" are substituted for "such

recognizance, stipulation, bond, or undertaking was made or

guaranteed" for consistency.

In subsection (a)(2), before clause (A), the words "a surety bond

is deemed to be provided" are substituted for "such recognizance,

stipulation, bond, or undertaking shall be treated as made or

guaranteed" for consistency. In clause (A), the words "principal

office of the surety corporation" are substituted for "office" for

clarity and consistency. In clause (D), the words "person required

to provide a surety bond resided when the bond was provided" are

substituted for "principal in such recognizance, stipulation, bond,

or undertaking resided when it was made or guaranteed" for

consistency.

Subsection (b) is substituted for 6:12 to eliminate unnecessary

words and for consistency.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 9306, 9308 of this title;

title 5 section 8478; title 12 section 1766; title 29 sections 502,

1112, 1363.

-End-

-CITE-

31 USC Sec. 9308 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9308. Civil penalty

-STATUTE-

A surety corporation is liable to the United States Government

for a civil penalty of at least $500 but not more than $5,000 for

violating section 9304, 9305, or 9306 of this title. A civil action

under this section may be brought in a judicial district in which a

civil action may be brought against the corporation under section

9307 of this title. A penalty imposed under this section does not

affect the validity of a contract made by the surety corporation.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1049.)

-MISC1-

HISTORICAL AND REVISION NOTES

--------------------------------------------------------------------

Revised Source (U.S. Code) Source (Statutes at Large)

Section

--------------------------------------------------------------------

9308 6:13.

--------------------------------------------------------------------

The section is substituted for 6:13 for clarity and consistency.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 9307 of this title; title

5 section 8478; title 12 section 1766; title 29 sections 502, 1112,

1363.

-End-

-CITE-

31 USC Sec. 9309 01/06/03

-EXPCITE-

TITLE 31 - MONEY AND FINANCE

SUBTITLE VI - MISCELLANEOUS

CHAPTER 93 - SURETIES AND SURETY BONDS

-HEAD-

Sec. 9309. Priority of sureties

-STATUTE-

When a person required to provide a surety bond given to the

United States Government is insolvent or dies having assets

insufficient to pay debts, the surety, or the executor,

administrator, or assignee of the surety paying the Government the

amount due under the bond -

(1) has the same priority to amounts from the assets and estate

of the person as are secured for the Government; and

(2) personally may bring a civil action under the bond to

recover amounts paid under the bond.

-SOURCE-

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1049.)

-MISC1-

HISTORICAL AND REVISION NOTES

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Revised Source (U.S. Code) Source (Statutes at Large)

Section

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9309 31:193. R.S. Sec. 3468.

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In the section, before clause (1), the words "person required to

provide a surety bond" are substituted for "principal in any bond"

for clarity and consistency. The words "dies having assets

insufficient to pay debts" are substituted for "whenever, such

principal being deceased, his estate and effects which come to the

hands of his executor, administrator, or assignee, are insufficient

for the payment of his debts" to eliminate unnecessary words. The

words "and, in either of such cases", "on the bond", and "such

surety, his executor, administrator, or assignee" are omitted as

unnecessary. Clause (1) is substituted for "shall have the like

priority for the recovery and receipt of the moneys out of the

estate and effects of such insolvent or deceased principal as is

secured to the United States" to eliminate unnecessary words and

for clarity. In clause (2), the words "and maintain" are omitted as

surplus. The words "civil action" are substituted for "suit" for

consistency. The words "in law or equity" are omitted as surplus.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 section 1631g; title 50

App. section 34.

-End-