§ 9305. Authority and revocation of authority of surety corporations

• (a) Before becoming a surety under section 9304 of this title , a surety corporation must file with the Secretary of the Treasury—
  • (1) a copy of the articles of incorporation of the corporation; and
  • (2) a statement of the assets and liabilities of the corporation signed and sworn to by the president and secretary of the corporation.
• (b) The Secretary may authorize in writing a surety corporation to provide surety bonds under section 9304 of this title if the Secretary decides that—
  • (1) the articles of incorporation of the corporation authorize the corporation to do business described in section 9304(a)(2) of this title ;
  • (2) the corporation has paid-up capital of at least $250,000 in cash or its equivalent; and
  • (3) the corporation is able to carry out its contracts.
• (c) A surety corporation authorized under subsection (b) of this section to provide surety bonds shall file with the Secretary each January, April, July, and October a statement of the assets and liabilities of the corporation signed and sworn to by the president and secretary of the corporation.
• (d) The Secretary—
  • (1) shall revoke the authority of a surety corporation to do new business if the Secretary decides the corporation is insolvent or is in violation of this section or section 9304 or 9306 of this title;
  • (2) may investigate the solvency of a surety corporation at any time; and
  • (3) may require additional security from the person required to provide a surety bond if the Secretary decides that a surety corporation no longer is sufficient security.
• (e) A surety corporation providing a surety bond under section 9304 of this title may not provide any additional bond under that section if—
  • (1) the corporation does not pay a final judgment or order against it on the bond; and
  • (2) no appeal or stay of the judgment or order is pending 30 days after the judgment or order is entered.