
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[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 the Act of August 24, 1935 (known as the Miller Act) 
(40 U.S.C. 270a-270d), files with the United States Government the 
application and affidavit provided under section 3 of the Act (40 U.S.C. 
270c), the Government--
        (1) may return to the contractor the Government obligation given 
    as security (or proceeds of the Government obligation given) under 
    the Act of August 24, 1935 (known as the Miller Act) (40 U.S.C. 
    270a-270d), only after the 90-day period for bringing a civil action 
    under section 2 of the Act (40 U.S.C. 270b); 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) the Act of August 24, 1935 (known as the Miller Act) (40 
        U.S.C. 270a-270d); 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.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
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.

                       References in Text

    Act August 24, 1935 (known as the Miller Act), referred to in 
subsecs. (d) and (e)(2)(A), is act Aug. 24, 1935, ch. 642, 49 Stat. 793, 
as amended, which is classified generally to sections 270a to 270d-1 of 
Title 40, Public Buildings, Property, and Works. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 270a of Title 40 and Tables.

                  Section Referred to in Other Sections

    This section is referred to in title 11 section 345; title 26 
sections 5177, 5403, 7102, 7485.
