A-21234, FEBRUARY 4, 1928, 7 COMP. GEN. 461

A-21234: Feb 4, 1928

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THE DATE OF EXECUTION OF A SURETY BOND BY THE SURETY WILL BE USED WHEN REFERENCE IS MADE THERETO. THE DATE OF EXECUTION OF A BOND WILL ALSO BE USED BY THE GENERAL ACCOUNTING OFFICE IN THE SETTLEMENT OF ACCOUNTS OF DISBURSING OFFICERS. 1928: I HAVE YOUR LETTER OF JANUARY 10. THAT IS. WHETHER THE DATE THE BOND IS EXECUTED BY THE PRINCIPAL. OR THE DATE THE BOND IS MADE EFFECTIVE. ORDINARILY WHEN A SURETY BOND IS TO BECOME EFFECTIVE UPON ITS APPROVAL BY THE ADMINISTRATIVE OFFICE WHOSE DUTY IT IS TO PASS THEREON AND BY THE TREASURY DEPARTMENT. IT HAS BEEN HELD IN SUCH CASES THAT THE OFFICIAL BOND BECOMES BINDING FROM DATE OF DELIVERY THEREOF AND IN THE ABSENCE OF EVIDENCE TO THE CONTRARY IT IS PRESUMED TO HAVE BEEN DELIVERED ON THE DAY OF ITS DATE.

A-21234, FEBRUARY 4, 1928, 7 COMP. GEN. 461

BONDS - SURETY - DISBURSING OFFICERS - DATE TO BE USED FOR REFERENCE AND IDENTIFICATION PURPOSES IN THE PREPARATION OF REQUISITIONS FOR ADVANCE OF FUNDS, ACCOUNTS CURRENT, DEPOSIT LISTS, ETC., THE DATE OF EXECUTION OF A SURETY BOND BY THE SURETY WILL BE USED WHEN REFERENCE IS MADE THERETO, AND IN CASES WHERE THE BOND SPECIFIES AN EFFECTIVE DATE OTHER THAN THAT UPON WHICH IT WOULD OTHERWISE BECOME EFFECTIVE, SUCH EFFECTIVE DATE MAY BE STATED ALSO. THE DATE OF EXECUTION OF A BOND WILL ALSO BE USED BY THE GENERAL ACCOUNTING OFFICE IN THE SETTLEMENT OF ACCOUNTS OF DISBURSING OFFICERS.

COMPTROLLER GENERAL MCCARL TO THE SECRETARY OF THE INTERIOR, FEBRUARY 4, 1928:

I HAVE YOUR LETTER OF JANUARY 10, 1928, REQUESTING TO BE ADVISED AS TO WHICH DATE SHOULD BE USED IN REFERRING TO SURETY BONDS IN CONNECTION WITH THE PREPARATION OF ACCOUNTS CURRENT, REQUISITIONS FOR FUNDS, ETC., THAT IS, WHETHER THE DATE THE BOND IS EXECUTED BY THE PRINCIPAL, THE DATE EXECUTED BY THE SURETY, THE DATE OF APPROVAL BY THE HEAD OF THE DEPARTMENT CONCERNED, THE DATE APPROVED BY THE SOLICITOR OF THE TREASURY, OR THE DATE THE BOND IS MADE EFFECTIVE.

ORDINARILY WHEN A SURETY BOND IS TO BECOME EFFECTIVE UPON ITS APPROVAL BY THE ADMINISTRATIVE OFFICE WHOSE DUTY IT IS TO PASS THEREON AND BY THE TREASURY DEPARTMENT, THE DATE OF THE EXECUTION BY THE PRINCIPAL AND HIS SURETY MAY BE SAID TO BE THE TRUE DATE OF THE BOND. IT HAS BEEN HELD IN SUCH CASES THAT THE OFFICIAL BOND BECOMES BINDING FROM DATE OF DELIVERY THEREOF AND IN THE ABSENCE OF EVIDENCE TO THE CONTRARY IT IS PRESUMED TO HAVE BEEN DELIVERED ON THE DAY OF ITS DATE, I.E., DATE OF EXECUTION. COMP. DEC. 428; 17 ID. 86. IN SUCH CASES IT WOULD APPEAR ADVISABLE AND PROPER TO USE THE DATE OF EXECUTION BY THE SURETY FOR REFERENCE PURPOSES, NOT ONLY BECAUSE SUCH DATE IS GENERALLY KNOWN TO ALL CONCERNED, BUT BECAUSE IT IS THE TRUE DATE OF THE BOND.

IN CASES IN WHICH IT IS STIPULATED IN THE BOND THAT IT IS TO BECOME EFFECTIVE AT A DATE SUBSEQUENT TO THE DATE OF EXECUTION OR OF APPROVAL IT WOULD APPEAR THAT THE IMPORTANT DATE OF THE BOND IS THAT UPON WHICH IT BECOMES EFFECTIVE. IN SUCH CASES IT MIGHT BE PROPER TO REFER TO THE SURETY BOND BY ITS EFFECTIVE DATE, EXCEPT FOR THE FACT THAT SOME CONFUSION MIGHT ARISE IN THAT THERE WOULD BE NO UNIFORMITY IN REFERRING TO ALL SURETY BONDS. FURTHERMORE, THE DATE OF EXECUTION BY THE SURETY IS, IN ALL EVENTS, THE DATE OF THE BOND. IT IS THE DATE UPON WHICH BOTH PRINCIPAL AND SURETY ASSUME THEIR OBLIGATION WHICH MAY TAKE EFFECT ONLY AT A LATER DATE. UNDER SUCH CIRCUMSTANCES IT WOULD APPEAR NOT ONLY ADVANTAGEOUS FOR THE PURPOSE OF UNIFORMITY, BUT PROPER FROM A LEGAL STANDPOINT, TO REFER TO A SURETY BOND BY THE DATE OF ITS EXECUTION BY THE SURETY. THE USING OF SUCH DATE WILL HAVE THE ADVANTAGE NOT ONLY OF BEING KNOWN TO ALL CONCERNED BUT WILL EXPRESS THE TRUE DATE OF THE BOND AS IT APPEARS THEREON.

ACCORDINGLY, YOU ARE ADVISED THAT IN REQUISITIONS FOR ADVANCE OF FUNDS, DEPOSIT LISTS, ACCOUNTS CURRENT, ETC., THE DATE OF EXECUTION OF THE BOND BY THE SURETY SHOULD BE USED FOR REFERENCE PURPOSES. IN CASES WHERE AN EFFECTIVE DATE IS SPECIFIED IN THE BOND, IT WOULD BE PROPER TO REFER TO THAT DATE ALSO, FOR EXAMPLE,"BOND OF JUNE 18, 1927, EFFECTIVE JULY 1, 1927.' IN THE SETTLEMENT OF THE ACCOUNTS OF DISBURSING OFFICERS THE DATE OF EXECUTION OF THE BOND BY THE SURETY WILL BE USED BY THIS OFFICE HEREAFTER WHEN REFERENCE IS MADE THERETO.