---
kind: "section"
citation: "20 C.F.R. § 703.310"
title: "20"
number: "703.310"
heading: "Authority to seize security deposit; use and/or return of proceeds."
url: "https://uscodex.org/cfr/20/703.310"
---

# §703.310. Authority to seize security deposit; use and/or return of proceeds.

- (a) The Office may take any of the actions set forth in [paragraph (b)](#b) of this section when a self-insurer—
  - (1) Defaults on any of its LHWCA obligations;
  - (2) Fails to renew any deposited letter of credit or substitute a new letter of credit, indemnity bond or acceptable negotiable securities in its place;
  - (3) Fails to renew any deposited negotiable securities at maturity or substitute a letter of credit, indemnity bond or acceptable negotiable securities in their place; or
  - (4) **Fails to comply with any of the terms of the Agreement and Undertaking.**
- (b) When any of the conditions set forth in [paragraph (a)](#a) of this section occur, the Office may, within its discretion and as appropriate to the security instrument—
  - (1) Bring suit under any indemnity bond;
  - (2) Draw upon any letters of credit;
  - (3) Seize any negotiable securities, collect the interest and principal as they may become due, and sell or otherwise liquidate the negotiable securities or any part thereof.
- (c) When the Office, within its discretion, determines that it no longer needs to collect the interest and principal of any negotiable securities seized pursuant to paragraphs [(a)](#a) and [(b)](#b) of this section, or to retain the proceeds of their sale, it must return any of the employer's negotiable securities still in its possession and any remaining proceeds of their sale.

## Notes

### Source

Source: 70 FR 43234, July 26, 2005, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301, and 8171 et seq.; 33 U.S.C. 901 et seq.; 42 U.S.C. 1651 et seq.; 43 U.S.C. 1333; Reorganization Plan No. 6 of 1950, 15 FR 3174, 64 Stat. 1263; Secretary's Order 10-2009, 74 FR 58834.

### Source

Source: 38 FR 26873, Sept. 26, 1973, unless otherwise noted.