(a) The provisions of section 13 require that any surety company
with which a bond is placed pursuant to that section must be a corporate
surety which holds a grant of authority from the Secretary of the
Treasury under the Act of July 30, 1947 (6 U.S.C. 6-13), as an
acceptable surety on Federal bonds. The Act provides, among other
things, that in order for a surety company to be eligible for such grant
of authority, it must be incorporated under the laws of the United
States or of any State and the Secretary of the Treasury shall be
satisfied of certain facts relating to its authority and capitalization.
Such grants of authority are evidenced by Certificates of Authority
which are issued by the Secretary of the Treasury and which expire on
the April 30 following the date of their issuance. A list of the
companies holding such Certificates of Authority is published annually
in the Federal Register, usually in May or June. Changes in the list,
occurring between May 1 and April 30, either by addition to or removal
from the list of companies, are also published in the Federal Register
following each such change.
(b) Where a surety becomes insolvent and is placed in receivership,
or if for any other reason the Secretary of the Treasury determines that
its financial condition is not satisfactory to him and he revokes the
authority of such company to act as an acceptable surety under the Act
of July 30, 1947, the ``administrator'' of the insured plan shall, upon
knowledge of such facts, be responsible for securing a new bond with an
acceptable surety.
(c) In obtaining or renewing a bond, the plan administrator shall
assure that the surety is one which satisfies the requirements of this
section. If the bond is for a term of more than one year, the plan
administrator, at the beginning of each reporting year, shall assure
that the surety continues to satisfy the requirements of this subpart.
