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31 U.S.C. §§ 9304–9308

5 sections in range

§9304. Surety corporations

31 U.S.C. § 9304

(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.
Notes, amendments, and revision history

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

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

§9305. Authority and revocation of authority of surety corporations

31 U.S.C. § 9305

(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.
Notes, amendments, and revision history

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

Historical and Revision Notes
Revised Section Source (U.S. Code) Source (Statutes at Large)
9305(a), (b) 6:8.
9305(c), (d) 6:9.
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.

§9306. Surety corporations acting outside area of incorporation and place of principal office

31 U.S.C. § 9306

(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.

Footnotes

  1. 1 So in original. Probably should be followed by a period.
Notes, amendments, and revision history

(Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1048; Pub. L. 106–113, div. B, § 1000(a)(9) [title V, § 5007], Nov. 29, 1999, 113 Stat. 1536, 1501A–594.)

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

Editorial Notes

Amendments

1999—Subsec. (a). Pub. L. 106–113, § 1000(a)(9) [title V, § 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, § 1000(a)(9) [title V, § 5007(2)], substituted “If the surety corporation meets the requirement of subsection (a) by appointing an individual under subsection (a)(2), the” for “The”.

§9307. Civil actions and judgments against surety corporations

31 U.S.C. § 9307

(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.
Notes, amendments, and revision history

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

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

§9308. Civil penalty

31 U.S.C. § 9308

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.
Notes, amendments, and revision history

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

Historical and Revision Notes
Revised Section Source (U.S. Code) Source (Statutes at Large)
9308 6:13.

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