Source: http://test.jurist.org/documents/rulemaking/2015-08297.php
Timestamp: 2019-03-25 21:52:49
Document Index: 651097748

Matched Legal Cases: ['§ 115', '§ 115', '§ 115', 'art 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115', '§ 115']

JURIST - Surety Bond Guarantee Program; Miscellaneous Amendments
I. Discussion of Proposed Changes Back to Top
Third, the rule proposes to modify the conditions under which a Principal, and its Affiliates, would be deemed ineligible for a bond guaranteed by SBA in the circumstance where the Principal has previously defaulted on an SBA guaranteed surety bond. Under the current rules, a Principal and its Affiliates are ineligible for further SBA bond guarantees if the Surety has requested reimbursement for Losses incurred under an SBA guaranteed bond issued on behalf of the Principal. See 13 CFR 115.14(a)(4). However, in the Prior Approval Program, the current rules provide that SBA's Office of Surety Guarantees (OSG) may agree, upon the Surety's recommendation, to reinstate the Principal, and its Affiliates, if the Surety has settled its claim with the Principal for an amount and on terms accepted by OSG (13 CFR 115.36(b)(2)), or the Principal's indebtedness to the Surety is discharged by operation of law (e.g., bankruptcy discharge) (13 CFR 115.36(b)(4)), or OSG and the Surety determine that further bond guarantees are appropriate (13 CFR 115.36(b)(5)). In addition, in the PSB Program, the current rules provide that the PSB Surety may reinstate a Principal's eligibility upon the Surety's determination that reinstatement is appropriate (13 CFR 115.14(b)).
Section 115.18(a)(2). SBA is proposing to revise this paragraph to provide that the Surety's failure to continue to comply with the requirements set forth in section 115.11 are sufficient grounds for refusal to issue further guarantees, or in the case of a PSB Surety, termination of preferred status.
Section 115.36. By including the conditions for reinstatement and the standard for underwriting after reinstatement in § 115.14(b) and (c), this rule proposes to rename the heading of this section to “§ 115.36 Indemnity settlements”, delete “(a) Indemnity settlements.”, renumber paragraphs “(1)”, “(2)”, and “(3)”, as “(a)”, “(b)”, and “(c)”, respectively, and remove paragraphs (b) and (c).
Section 115.60(a)(5). By including in § 115.11 the requirement that all Sureties vest final settlement authority for claims and recovery only in their salaried claims staff, this rule proposes to remove 115.60(a)(5) and renumber the existing paragraph 115.60(a)(6) accordingly. Compliance with Executive Orders 12866, 13563, 12988, and 13132, the Paperwork Reduction Act (44 U.S.C. Ch. 35) and the Regulatory Flexibility Act (5 U.S.C. 601-612).
List of Subjects in 13 CFR Part 115 Back to Top
2.Amend § 115.11 by adding three sentences at the end to read as follows:
§ 115.11 Applying to participate in the Surety Bond Guarantee Program.
3.Amend § 115.13 by adding paragraph (a)(7) to read as follows:
§ 115.13 Eligibility of Principal.
4.Amend § 115.14 to read as follows:
(b) Reinstatement of Principal's eligibility. At any time after a Principal becomes ineligible for further bond guarantees under § 115.14(a):
(ii) Reinstate a Principal's eligibility upon the Surety's determination that further bond guarantees are appropriate after the Principal was deemed ineligible for further SBA bond guarantees under § 115.14(a) (1), (2), (3), (5) or (6).
5.Amend § 115.16 by revising paragraphs (e)(1) and (f)(1) to read as follows:
§ 115.16 Determination of Surety's Loss.
6.Amend § 115.18 by revising paragraph (a)(2) to read as follows:
§ 115.18 Refusal to issue further guarantees; suspension and termination of PSB status.
(2) Regulatory violations, fraud. Acts of wrongdoing such as fraud, material misrepresentation, breach of the Prior Approval or PSB Agreement, the Surety's failure to continue to comply with the requirements set forth in § 115.11, or regulatory violations (as defined in §§ 115.19(d) and 115.19(h)) also constitute sufficient grounds for refusal to issue further guarantees, or in the case of a PSB Surety, termination of preferred status.
7.Amend § 115.36 to read as follows:
§ 115.36 Indemnity settlements.
§ 115.60 Selection and admission of PSB Sureties. [Amended]
8.Amend § 115.60 to read as follows:
a. Amend § 115.60(a)(1) by removing “$2,000,000” and inserting “$6,500,000” in its place; and
Citation: 80 FR 19886
citation:80 FR 19886 comments_close:2015-06-15 date: docnum:2015-08297 effective_date: html:https://www.federalregister.gov/articles/2015/04/14/2015-08297/surety-bond-guarantee-program-miscellaneous-amendments pdf:http://www.gpo.gov/fdsys/pkg/FR-2015-04-14/pdf/2015-08297.pdf