[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: 48CFR28.204-1]



[Page 561-562]

 

            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. 28.204-1  United States bonds or notes.



    Any person required to furnish a bond to the Government has the 

option, instead of furnishing a surety or sureties on the bond, of 

depositing certain United States bonds or notes in an amount equal at 

their par value to the penal sum of the bond (the Act of February 24, 

1919 (31 U.S.C. 9303) and Treasury Department Circular No. 154 dated 

July 1, 1978 (31 CFR part 225)). In addition, a duly executed power of 

attorney and agreement authorizing the collection or sale of such United 

States bonds or notes in the event of default of the principal on the 

bond shall accompany the deposited bonds or notes. The contracting 

officer may (a) turn securities over to the finance or other authorized 

agency official, or (b) deposit them with the Treasurer of the United 

States, a Federal Reserve Bank



[[Page 562]]



(or branch with requisite facilities), or other depository designated 

for that purpose by the Secretary of the Treasury, under procedures 

prescribed by the agency concerned and Treasury Department Circular No. 

154 (exception: The contracting officer shall deposit all bonds and 

notes received in the District of Columbia with the Treasurer of the 

United States).



[48 FR 42286, Sept. 19, 1983. Redesignated and amended at 54 FR 48986, 

48989, Nov. 28, 1989]