in controversy in such suit, and not elsewhere, for his or their use and benefit, against said contractor and his sureties, and to prosecute the same to final judgment and execution: Provided, That where suit is instituted by any of such creditors on the bond of the contractor it shall not be commenced until after the complete performance of said contract and final settlement thereof, and shall be commenced within one year after the performance and final settlement of said contract, and not later: And provided further, That where suit is so instituted by a creditor or by creditors only one action shall be brought, and any creditor may file his claim in such action and be made party thereto within one year from the completion of the work under said contract, and not later. If the recovery on the bond should be inadequate to pay the amounts found due to all of said creditors, judgment shall be given to each creditor pro rata of the amount of the recovery. The surety on said bond may pay into court, for distribution among said claimants and creditors, the full amount of the sureties' liability, to wit, the penalty named in the bond, less any amount which said surety may have had to pay to the United States by reason of the execution of said bond, and upon so doing the surety will be relieved from further liability: Provided further, That in all suits instituted under the provisions of this act such personal notice of the pendency of such suits, informing them of their right to intervene as the court may order, shall be given to all known creditors, and in addition thereto notice of publication in some newspaper of general circulation, published in the State or town where the contract is being performed, for at least three successive weeks, the last publication to be at least three months before the time limited therefor."

Approved, February 24, 1905.

(Cir. 7, C. of E., 1905; 33 Stats., 811.)

305. When bonds are required.—Without reference to the amount of the consideration of the contract, bonds will be required with all contracts involving the performance of nonpersonal service in the construction or repair of public buildings and public works. Bonds will also be required for the faithful performance of all contracts for supplies or service when the consideration is $5,000 or

more and the contract can not be fully performed within sixty days from its date. (Par. 4, G. O. 6, C. of E., 1901; Par. 2, G. O. 6, C. of E., 1905.)

306. When bonds may be waived.-Except as required by § 305, bonds may be waived in the discretion of the disbursing officer. (Par. 2, G. O. 6, C. of E., 1905.)

307. Meaning of term "supplies."-The term "supplies" as used in § 305 is intended to include all articles and materials required to be purchased from public funds for the public service. (Par. 8, G. O. 6, C. of E., 1901.)

308. Citations and cross reference:

(a) For general provisions regarding contractors' bonds, see A. R. 567-579.

(b) A lowest bidder failed to furnish a guaranty, one for $500 being specifically required in the instructions to bidders, but submitted his certified check, adding to his proposal and signing the following statement: "In lieu of above we submit certified check to the amount of guaranty." The instructions specified the terms to be embodied in the guaranty and the certified check was submitted in lieu of such guaranty. It could therefore be applied to securing the United States under the conditions specified and should be treated as a substantial compliance with the provisions of A. R. 533. (Dig. Op., J. A. G., 878.)

(c) Where, at the end of the ten days specified in his guaranty, the accepted bidder had failed to enter into the contract, the liability of the guarantors had attached, and, the public interests not being prejudiced, the contract might legally be entered into with one of the guarantors as an openmarket transaction in which he takes the risk on his own account at the rate proposed in the bid. (Dig. Op., J. A. G., 875.)

(d) Where individuals are offered as sureties on contractors' bonds, their financial status to be carefully investigated before acceptance. (Par. 4, G. O. 167, W. D., 1905,—§ 247.)

(e) Under the provisions of R. S. 3739, 3740, and 3741, a Member of Congress may be lawfully accepted as a surety on the bond of a contractor with the United States. (Cir. 22, C. of E., 1885; 18 Op. A. G., 286.)

(ƒ) If after the execution of a bond a material change be made in the name or description of the principal, by erasure, interlineation, or otherwise, without the assent of the sureties or a surety, even though such change be made to correct a mistake, the surety or sureties not consenting will be released. Where the name of one of two sureties is erased and a new surety is substituted without the consent of the remaining surety, the written assent of the latter to the erasure and substitution should be obtained. (Dig. Op., J. A. G., 555.)

(g) Where a corporation is principal in a bond given to the United States its full legal corporate name should be expressed. Thus, where the laws of the State in which such a corporation was created required that the name of a corporation should always include the name of the city or county in which it was formed, and a corporation obligor had been incorporated as "The . Company of Baltimore City," the bond was incomplete unless this addition was set forth and the instrument executed accordingly. (Dig. Op., J. A. G., 546.)

(h) Where a corporation is named as principal in a bond, its corporate name and seal (if it has one) should be affixed by the officer having authority to do so. (Dig. Op., J. A. G., 547.)

(i) The sureties of the contractor who has abandoned his contract are not entitled to receive the unpaid balance of the contract price for completing the work under the contract. (4 Comp. Dec., 611.)

(j) Where a contractor, having failed to complete the work provided for in the contract with him, died, and the contract has not been annulled or rescinded, the sureties are authorized to complete it; but there is no authority to pay to them percentages retained from payments made to the contractor,

nor to pay them for work which they may do, except upon an adjustment of all equities of the decedent. (8 Comp. Dec., 552.)

(k) A contractor having failed to complete the work provided for in the contract with him, a supplemental contract may be entered into with him and his sureties by which it may be provided that the work shall be completed by the sureties and payment made to them therefor, and also, from the amounts retained from payments made to the original contractor, for any excessive cost thereof, less the amount of any damages suffered by the Government. (9 Comp. Dec., 43.)

CHAPTER IX.

MONEY ACCOUNTABILITY.

Subchapter 1.-RENDITION OF ACCOUNTS.

309. General citations and cross reference:

(a) For general provisions regarding the rendition of money accounts, see E. R. 21-24, 26, 27, 33.

(b) The Chief of Engineers to supervise all disbursements by officers of the Corps, and his approval, so far as relates to the necessity or expediency of the expenditures, and the prices paid, to be final. (E. R. 1.)

(c) Officers or troops of the Corps of Engineers detached from the command of the Chief of Engineers will continue to conform to the regulations of the Engineer Department in regard to the rendition of accounts. (A. R. 1524.)

(d) Reports of changes among employees to be made in connection with the money accounts and forwarded to the Chief of Engineers under the same cover. (Cir. 11, C. of E., 1898,§ 472.)

310. General provisions as to rendering accounts.-Commencing with an assignment to a new station, each disbursing officer not under bond will keep and render each account so as to show the particular station and duty to which the account pertains.

Upon being relieved from duty at a station, he will either transfer to his successor, or deposit in some United States designated depository to the credit of the United States, the unexpended balance of public funds remaining in his hands or standing to his credit in a depository, close his accounts, and make final returns, marking the same