31 USC 9305 - Authority and revocation of authority of surety corporations

U.S Code last checked for updates: Nov 22, 2024

§ 9305.

Authority and revocation of authority of surety corporations

(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.

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

cite as: 31 USC 9305