A Corporate Surety Bond is a bond executed by a surety corporation that has been approved by the Department of Treasury as an acceptable surety for federal bonds. Any corporate surety offered for a bond furnished to the Government must appear in the Department of the Treasury Circular 570, which is revised annually as of July 1. Copies of this circular and interim supplements may be obtained from the Internet at www.fms.treas.gov/c570. Interim supplements are published in the Federal Register and
on the Internet as they occur. Before accepting a corporate surety as bond security, the bond-approving officer must take all of the following actions:
1) Verify from Treasury Circular 570 that:
a) The surety is licensed to transact a fidelity and surety business in the State or area (District of Columbia, American Samoa, Guam, Puerto Rico, and the Virgin Islands), where it or it’s agent executes the bond.
b) The surety has sufficient underwriting limitation to cover the penal sum of the bond or has obtained coinsurance or reinsurance from a Treasury certified reinsurer. A list of certified reinsurers is found in Treasury Circular 570.
2) Verify that the agent executing the bond on behalf of the surety is authorized to do so by the surety. A certified copy of the authorizing document, such as a power of attorney, is sufficient.
3) Authenticate the bond with the surety office shown in the Treasury Circular 570.
4) Verify that the principal and surety have executed the bond on the correct form.