25 U.S.C. § 1497a — Supplemental surety bond guarantee
submitted 38 years ago by Pub. L. 93-262 to r/title-25-INDIANS · 253 words · no verdicts yet
The Secretary may add a limited guarantee to a qualifying surety-bond guarantee for an Indian individual or economic enterprise. The section sets eligibility conditions, fees, and where receipts go.
(a) Amount; eligibility. The Secretary* may provide a supplemental surety-bond guarantee of no more than 20 percent of a loss for an Indian individual or economic enterprise eligible under section 694b of title 15, so the two guarantees together equal 100 percent.
(b) Conditions. The Secretary may provide it only after deciding that (1) the applicant has obtained or likely will obtain a section 694b guarantee; (2) the supplemental guarantee is needed to obtain a bond; (3) no more than 25 percent of the surety’s business consists of bonds guaranteed under this section; and (4) the surety will provide suitable technical help and advice and monitor performance to prevent or reduce a loss.
(c) Fees and charges. Regulations must set reasonable fees paid by the applicant and reasonable premiums paid by sureties. The Secretary may consider the surety’s cost of services under (b)(4). Receipts must go into the Fund under section 1497(a).
The Secretary* is authorized to provide a supplemental surety bond guarantee, not to exceed 20 percent of any loss, for any Indian individual or economic enterprise eligible for a surety guarantee under section 694b of title 15, so that the aggregate of the two guarantees is 100 percent.
The Secretary may provide a supplemental guarantee under this section only if the Secretary determines that—
the Indian individual or economic enterprise has secured or will likely secure a surety bond guarantee under section 694b of title 15;
the supplemental guarantee is necessary for the Indian individual or economic enterprise to secure a surety bond;
no more than 25 percent of the surety’s business is comprised of bonds guaranteed pursuant to this section; and
the surety will provide appropriate technical assistance and advice to, and monitor the performance of, the Indian individual or economic enterprise for the prevention or mitigation of a loss.
The rules and regulations promulgated by the Secretary to carry out this section shall include the setting of reasonable fees to be paid by the Indian individual or economic enterprise and reasonable premium charges to be paid by sureties. In setting fees and charges, the Secretary may take into consideration the cost to the surety of providing the services required by paragraph (4) of subsection (b). The receipts from the fees and charges shall be deposited in the Fund established by section 1497(a) of this title.
Source credit: (Pub. L. 93–262, title II, § 218, as added Pub. L. 100–442, § 5(a), Sept. 22, 1988, 102 Stat. 1764.)
- 1988Enacted · Pub. L. 93-262 · 102 Stat. 1764
A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-262 on 1988-09-22.
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