(a) This exemption obtains only with respect to the requirement of
section 13(a) of the Act that all bonds required thereunder shall have
as surety thereon, a corporate surety company, which is an acceptable
surety on Federal bonds under authority granted by the Secretary of the
Treasury pursuant to the Act of July 30, 1947 (6 U.S.C. 6-13).
(b) The exemption is granted upon the condition that if for any
reason the authority of any such company to act as an acceptable
reinsuring company is terminated, the administrator of a plan insured
with such company, shall, upon knowledge of such fact, be responsible
for securing a new bond with a company acceptable under the Act and the
exemptions issued thereunder.
(c) In obtaining or renewing a bond, the plan administrator shall
ascertain that the surety is one which satisfies the requirements of the
Act and the exemptions thereunder. If the bond is for a term of more
than one year, the plan administrator, at the beginning of each
reporting year, shall ascertain that the surety continues to do so.
