(a) The Office shall determine the type or types of security which
an applicant shall or may procure. (See Sec. 726.104(b).)
(b) In the event the indemnity bond option is selected, the bond
shall be in such form and contain such provisions as the Office may
prescribe: Provided, That only corporations may act as sureties on such
indemnity bonds. In each case in which the surety on any such bond is a
surety company, such company must be one approved by the U.S. Treasury
Department under the laws of the United States and the applicable rules
and regulations governing bonding companies (see Department of
Treasury's Circular--570).
(c) An applicant for authorization to self-insure based on a
deposit of negotiable securities, in the amount fixed by the Office,
shall deposit any negotiable securities acceptable as security for the
deposit of public moneys of the United States under regulations issued
by the Secretary of the Treasury. (See 31 CFR Part 225.) The approval,
valuation, acceptance, and custody of such securities is hereby
committed to the several Federal Reserve Banks and the Treasurer of the
United States.
