PART 225—ACCEPTANCE OF BONDS SECURED BY GOVERNMENT OBLIGATIONS IN LIEU OF BONDS WITH SURETIES Authority: 12 U.S.C. 391; 31 U.S.C. 321, 9301 and 9303. Source: 64 FR 4763, Jan. 29, 1999, unless otherwise noted. § 225.1 Scope. The regulation in this part applies to Government agencies accepting bonds secured by Government obligations in lieu of bonds with sureties. The Bureau of the Fiscal Service (Fiscal Service) is the representative of the Secretary of the Treasury (Secretary) in all matters concerning this part unless otherwise specified. The Commissioner of the Fiscal Service may issue procedural instructions implementing this regulation. § 225.2 Definitions. For purposes of this part: Agency Authenticate instructions Bearer Bond Bond official Book-entry Custodian Definitive Depositary (1) Any insured bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or any bank which is eligible to make application to become an insured bank under section 5 of such Act (12 U.S.C. 1815); (2) Any mutual savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or any bank which is eligible to make application to become an insured bank under section 5 of such Act (12 U.S.C. 1815); (3) Any savings bank as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) or any bank which is eligible to make application to become an insured bank under section 5 of such Act (12 U.S.C. 1815); (4) Any insured credit union as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752) or any credit union which is eligible to make application to become an insured credit union under section 201 of such Act (12 U.S.C. 1781); (5) Any savings association as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) which is an insured depository institution (as defined in such Act) (12 U.S.C. 1811 et seq. et seq. (6) Any agency or branch of a foreign bank as defined in section 1(b) of the International Banking Act, as amended (12 U.S.C. 3101). Federal Reserve Government obligation Obligor Officer authorized to certify assignment Person Pledge Procedural instructions Registered Secretary § 225.3 Pledge of Government obligations in lieu of a bond with surety or sureties. (a) General. (b) Bond. (c) Amount of Government obligations. (d) Avoiding frequent substitutions. (e) Acceptable Government obligations. www.publicdebt.treas.gov. [64 FR 4763, Jan. 29, 1999, as amended at 65 FR 55430, Sept. 13, 2000] § 225.4 Pledge of book-entry Government obligations. (a) General. (b) Receipt. (c) Effect of the transfer. § 225.5 Pledge of definitive Government obligations. (a) Type and assignment. (1) Bearer Government obligations. (2) Registered Government obligations; assignment. (b) Delivery to bond official; receipt. (c) Risk of loss; safekeeping. (d) Delivery to custodian; receipt. (e) Conversion to book-entry. (2) When converting definitive Government obligations to book-entry form, a Federal Reserve Bank will act pursuant to, and in accordance with, book-entry procedures for issuers that apply to the definitive Government obligations pledged to the bond official's agency, including those set forth in part 306 of this title. § 225.6 Payment of interest. (a) General. (b) Default. § 225.7 Custodian duties and responsibilities. (a) General. (b) Interest. (c) Principal. (d) Liquidation of Government obligations. (e) Application of proceeds of liquidated Government obligations. § 225.8 Bond official duties and responsibilities. The bond official's duties and responsibilities are as follows: (a) Approving the bond secured by Government obligations after determining its sufficiency; (b) Verifying ownership of any registered definitive Government obligations given, and ensuring that those Government obligations are properly assigned; (c) Approving establishment of a book-entry account for the benefit of the bond official; (d) Providing the custodian, when appropriate, with clear and concise instructions; (e) Taking all reasonable and appropriate steps to ensure that all procedures or transactions conform with the provisions of this part; and (f) Notifying the Secretary of the Treasury, or his designee, upon an obligor's default, and, unless otherwise provided by law, applying any part of the proceeds in excess of the amount required to assure payment of any costs incurred by the United States related to the default to satisfy any claim of the United States against the obligor. § 225.9 Return of Government obligations to obligor. (a) General. (b) Miller Act payment bonds. (1) A person, who supplied the obligor with labor or materials and whom the obligor has not paid, files with the United States Government the application and affidavit provided for in the Miller Act (Act), as amended (40 U.S.C. 270a-270d), and the time provided in the Act for the person to commence suit against the obligor on the payment bond has not expired; or (2) A person commences a suit against the obligor within the time provided for in the Act, in which case the bond official will hold the Government obligations subject to the order of the court having jurisdiction of the suit; or (3) The bond official has actual knowledge of a claim against the obligor on the basis of the payment bond, in which case the bond official may return the Government obligations to the obligor when the bond official deems it appropriate. (c) Claim of the United States unaffected. (d) Return of definitive Government obligations; risk of loss. § 225.10 Other agency practices and authorities. (a) Agency practices. (b) Agency authorities. § 225.11 Courts. Nothing contained in this part shall affect the authority of a court over a Government obligation given as security in a civil action.