Surety Association Act of 1989

Summary

Surety Association Act of 1989 - Establishes a pilot program to allow Federal agencies to accept contract bids for Federal construction projects over $25,000 underwritten by individual sureties that are members of an organization designated by the Administrator of General Services as an approved surety association in satisfaction of payment bond requirements under the Miller Act. Sets forth procedures for organizations of individual sureties to follow to be designated as approved surety associations. Directs approved surety associations to establish and maintain a loss reserve against liability which may be incurred by the organization under an agreement with the Administrator to reimburse and insure against losses under such a contract. Prohibits members of approved surety associations from having outstanding bonds for contracts having a total aggregate value of work to be performed greater than 600 percent of the total amount of resources committed to the association by its members. Prohibits the total amount of resources committed to the association by its members from exceeding the total of their new worths. Makes individual members of the associations jointly and severally liable for all obligations and liabilities of the association. Provides that an individual surety shall not be liable for obligations and liabilities of an association that exceed the amount committed by the surety to the association. Provides that an individual surety who withdraws or is terminated from approved surety association membership shall continue to be liable for all obligations and liabilities of the organization which arise during its membership. Requires approved surety associations and their members to supply documents or records to the Administrator or Comptroller General upon request for General Accounting Office reviews to be submitted to the Congress. Subjects such associations to periodic management reviews by independent certified public accountants. Authorizes the Administrator to audit such associations and their members. Sets forth penalties for violations of this Act.

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2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 6 March 1990

  Open at official source

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