[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]



[Page 561]

 

            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]