§1497a — Title 25 Indians | U.S. Code

Summary

The Secretary can give an extra surety bond guarantee for an eligible Indian person or business. That extra guarantee can cover up to 20 percent of any loss so that, together with the existing federal guarantee, they equal 100 percent. The extra guarantee can be given only if the Secretary finds the person or business has or likely will get the other federal guarantee, the extra guarantee is needed to obtain the bond, no more than 25 percent of the surety’s business is made up of these guarantees, and the surety will provide technical help and monitor performance to prevent or reduce losses. The Secretary must write rules that set reasonable fees for the Indian person or business and reasonable premiums for sureties, may consider the surety’s cost of providing help, and must place the collected fees into the related fund.

Title 25, §1497a

Indians — Source: USLM XML via OLRC

(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.

(b)The Secretary may provide a supplemental guarantee under this section only if the Secretary determines that—

(1)the Indian individual or economic enterprise has secured or will likely secure a surety bond guarantee under section 694b of title 15;

(2)the supplemental guarantee is necessary for the Indian individual or economic enterprise to secure a surety bond;

(3)no more than 25 percent of the surety’s business is comprised of bonds guaranteed pursuant to this section; and

(4)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.

(c)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.

Editorial Notes

Prior Provisions

A prior section 218 of Pub. L. 93–262 was renumbered section 219 by Pub. L. 100–442 and is classified to section 1498 of this title.

§1497a Supplemental Surety Bond Guarantee

Summary

Title 25, §1497a

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata