§1497a Supplemental Surety Bond Guarantee

Summary

The Secretary can give an extra surety bond guarantee of up to 20 percent to an eligible Indian person or Indian-owned business that already qualifies under the surety guarantee law in Title 15, so the two guarantees together equal 100 percent of the bond. The Secretary may only do this if the person or business has secured or likely will secure the first guarantee, if the extra guarantee is needed to get the bond, if no more than 25 percent of the surety’s business is made up of these extra-guaranteed bonds, and if the surety will help, advise, and monitor the borrower to prevent losses. The Secretary must set reasonable fees for the Indian person or business and reasonable premiums for sureties, may consider the surety’s costs, and must deposit the receipts into the Fund established by section 1497(a).