B-206893: Mar 18, 1983

The Small Business Administration (SBA) requested a legal opinion as to whether it may honor claims of surety bond companies under its surety bond guarantee program when the surety company has not paid the surety bond guarantee fee. SBA accounting officers expressed concern that approval of such a claim would be an unauthorized and illegal act for which the certifying officer could be held persona...

B-206893: Mar 18, 1983

DIGEST: THE REQUIREMENT IN THE REGULATIONS AND THE SURETY BOND GUARANTEE AGREEMENT THAT SURETIES PAY THE SMALL BUSINESS ADMINISTRATION (SBA) A SURETY BOND GUARANTEE FEE IS NOT A CONDITION PRECEDENT TO SBA'S INDEPENDENT OBLIGATION TO GUARANTEE THE SURETY AGAINST LOSS. SBA SURETY BOND GUARANTEE PROGRAM-GUARANTEE FEES: THIS DECISION IS IN RESPONSE TO A REQUEST FROM THE DIRECTOR. FOR THE REASONS SET F...