---
kind: "section"
citation: "43 C.F.R. § 5451.1"
title: "43"
number: "5451.1"
heading: "Minimum performance bond requirements; types."
url: "https://uscodex.org/cfr/43/5451.1"
---

# §5451.1. Minimum performance bond requirements; types.

- (a) A minimum performance bond of not less than 20 percent of the total contract price shall be required for all contracts of $10,000 or more, but the amount of the bond shall not be in excess of $500,000, except when the purchaser opts to increase the minimum bond as provided in [§ 5451.2](/cfr/43/5451.2.md). A minimum performance bond of not less than $500 or 20% of the contract price, whichever is greater, will be required for all installment contracts less than $10,000. For cash sales less than $10,000, bond requirements, if any, will be at the discretion of the authorized officer. The performance bond may be:
  - (1) Bond of a corporate surety shown on the approved list issued by the United States Treasury Department and executed on an approved standard form; or
  - (2) Personal surety bond, executed on an approved standard form if the authorized officer determines the principals and bondsmen are capable of carrying out the terms of the contract; or
  - (3) Cash bond; or
  - (4) **Negotiable securities of the United States.**
  - (5) **Any guaranteed remittance approved by the authorized officer.**

## Notes

### Amendments

[35 FR 9786, June 13, 1970, as amended at 38 FR 6281, Mar. 8, 1973; 46 FR 42673, Aug. 24, 1981; 47 FR 38696, Sept. 2, 1982; 85 FR 82375, Dec. 18, 2020]

### Authority

Authority: 43 U.S.C. 2604; 30 U.S.C. 601 et seq.

### Amendments

[35 FR 9786, June 13, 1970, as amended at 38 FR 6281, Mar. 8, 1973; 46 FR 42673, Aug. 24, 1981; 47 FR 38696, Sept. 2, 1982; 85 FR 82375, Dec. 18, 2020]