[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR28.204]

[Page 543]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 28_BONDS AND INSURANCE--Table of Contents
 
           Subpart 28.2_Sureties and Other Security for Bonds
 
Sec.  28.204  Alternatives in lieu of corporate or individual sureties.

    (a) Any person required to furnish a bond to the Government may 
furnish any of the types of security listed in 28.204-1 through 28.204-3 
instead of a corporate or individual surety for the bond. When any of 
those types of security are deposited, a statement shall be incorporated 
in the bond form pledging the security in lieu of execution of the bond 
form by corporate or individual sureties. The contractor shall execute 
the bond forms as the principal. Agencies shall establish safeguards to 
protect against loss of the security and shall return the security or 
its equivalent to the contractor when the bond obligation has ceased.
    (b) Upon written request by any contractor securing a performance or 
payment bond by any of the types of security listed in 28.204-1 through 
28.204-3, the contracting officer may release a portion of the security 
only when the conditions allowing the partial release of lien in 28.203-
5(c) are met. The contractor shall, as a condition of the partial 
release, furnish an affidavit agreeing that the release of such security 
does not relieve the contractor of its obligations under the bond(s).
    (c) The contractor may satisfy a requirement for bond security by 
furnishing a combination of the types of security listed in 28.204-1 
through 28.204-3 or a combination of bonds supported by these types of 
security and additional surety bonds under 28.202 or 28.203. During the 
period for which a bond supported by security is required, the 
contractor may substitute one type of security listed in 28.204-1 
through 28.204-3 for another, or may substitute, in whole or 
combination, additional surety bonds under 28.202 or 28.203.

[61 FR 31653, June 20, 1996, as amended at 62 FR 44807, Aug. 22, 1997]