Compliance

Federal qualifications and procedure for individual sureties.

These qualifications are stated in the Federal code under the FAR Act, which is codified in Parts 1 through 53 of Title 48, Chapter 1 of the Code of Federal Regulations. The specific section under which an individual surety is regulated is 28.203. This section gives direction to and authorizes individuals who have the capacity to write bonds. Federal Statutory regulations were created for Individual Sureties to allow them to participate in surety bonding of federal projects, which Mr. Timothy Arellano has done on multiple occasions.

Authorization for acting without the requirement of state registration is found at 28.203.1 (a), which states: “An individual surety is acceptable for all types of bonds except position schedule bonds.” The assets that can be pledged by an Individual Surety must meet certain requirements per 31 U.S.C. 9310, and those assets must be pledged per 31 CFR part 225.

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Utah Code (Compliance For Personal Surety’s)

52-1-13 Sureties — Approval — Personal surety bond — Requirements.

(1) In all cases where a bond is required of any public officer in this state, either a corporate
surety bond or a personal surety bond may be given. The bonds shall be subject to approval
as provided by law. A personal surety bond may not be approved except with two or more
sureties.

(2) Each surety shall first make and file an affidavit declaring that the individual is a resident of
the state of Utah and is worth the sum specified in the undertaking, over and above all of
the individual’s debts and liabilities and exclusive of property exempt from execution. The
individual shall include in the affidavit a detailed statement of all of the individual’s assets and
liabilities.

(3) Any person who makes a material false statement with respect to Subsection (2) is guilty of a
third degree felony.

(4) If there are more than two sureties, they may express in their affidavits that they are worth
amounts less than that expressed in the bond if the whole amount of all sureties is equivalent to
double the penalty of the bond.

(5) No premium on any surety bond with personal sureties may be paid from any public funds.

(6) The several boards, courts, or officers authorized by law to approve surety bonds may require
sureties on personal surety bonds to justify annually. In the case of failure to justify, the boards
or officers may require additional sureties or a new bond. In case of failure of any public officer
to have the public officer’s sureties justify when required or to furnish additional sureties when
required, the board or officer charged with the duty of approving the bond of the officer shall
declare the office vacant within 60 days after notice personally served upon the officer. At the
expiration of the 60-day period, the office shall become vacant unless the sureties justify or
additional qualified sureties are furnished within the period.

 

Amended by Chapter 121, 2013 General Session

 

Download a PDF Of Utah Code for personal surety here

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Download a PDF Of AGS Surety Residency Compliance

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Download a PDF Of AGS State of Utah Qualifications Compliance

T Arelleno Ltr re Surety Exemptions 12-17-2021

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