[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR28.203-3]



[Page 559-560]

 

            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. 28.203-3  Acceptance of real property.



    (a) Whenever a bond with a security interest in real property is 

submitted, the individual surety shall provide--

    (1) Evidence of title in the form of a certificate of title prepared 

by a title insurance company approved by the United States Department of 

Justice. This list entitled List of Approved Attorneys, Abstracters, and 

Title Companies is available from the Title Unit, Land Acquisition 

Section, Land and Natural Resource Division, Department of Justice, 

Washington, DC 20530. This title evidence must show fee simple title 

vested in the surety along with any concurrent owners; whether any real 

estate taxes are due and payable; and any recorded encumbrances against 

the property, including the lien filed in favor of the Government under 

paragraph (d) of this subsection;

    (2) Evidence of the amount due under any encumbrance shown in the 

evidence of title;

    (3) A copy of the current real estate tax assessment of the property 

or a current appraisal dated no earlier than 6 months prior to the date 

of the bond, prepared by a professional appraiser who certifies that the 

appraisal has been conducted in accordance with the generally accepted 

appraisal standards as reflected in the Uniform Standards of 

Professional Appraisal Practice as promulgated by the Appraisal 

Foundation, 1029 Vermont Avenue NW., Washington, DC 20005.

    (b) Failure to provide evidence that the lien has been properly 

recorded will render the offeror nonresponsible.

    (c) The individual surety is liable for the payment of all 

administrative costs of the Government, including legal fees, associated 

with the liquidation of pledged real estate.

    (d) The following format, or any document substantially the same, 

shall be used by the surety and recorded in the local recorder's office 

when a surety pledges real estate on Standard Form 28, Affidavit of 

Individual Surety.



                           Lien on Real Estate



    I/we agree that this instrument constitutes a lien in the amount of 

$----- on the property described in this lien. The rights of the United 

States Government shall take precedence over any subsequent lien or 

encumbrance until the lien is formally released by a duly authorized 

representative of the United States. I/we hereby grant the United States 

the power of sale of subject property, including the right to satisfy 

its reasonable administrative costs, including legal fees associated 

with any sale of subject property, in the event of contractor default if 

I/we otherwise fail to satisfy the underlying ( ) bid guarantee, ( ) 

performance bond, ( ) or payment bond obligations as an individual 

surety on solicitation/contract number -----. The lien is upon the real 

estate now owned by me/us described as follows: (legal description, 

street address and other identifying description)

    IN WITNESS HEREOF, I/we have hereunto affixed my/our hand(s) and 

seal(s) this ---- DAY OF ---- 20--.



________________________________________________________________________



WITNESS:



________________________________________________________________________



(SEAL)





[[Page 560]]





    I, ------, a Notary Public in and for the (CITY) ------, (STATE) --

----, do hereby certify that ------, a party or parties to a certain 

Agreement bearing the date ------ day of ------ 20--, and hereunto 

annexed, personally appeared before me, the said ------ being personally 

well known to me as the person(s) who executed said lien, and 

acknowledged the same to be his/her/their act and deed. GIVEN under my 

hand and seal this ------ day of ------ 20--.



________________________________________________________________________



NOTARY PUBLIC, STATE



    My Commission expires:



[54 FR 48987, Nov. 28, 1989, as amended at 70 FR 11763, Mar. 9, 2005]