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may hold hearings or other proceedings at any other place. The Authority shall have an official seal which shall be judicially noticed and which shall be preserved in the custody of the secretary of the Authority. Sec. 201, act of June 23, 1938 (52 Stat. 980); 49 U. S. C. 421.
Regulations under this section were prescribed by the President in Executive Order No. 7964, August 29, 1938.
524b. Civil Aeronautics Authority; duties and powers.-(a) The Authority is empowered to perform such acts, to conduct such investigations, to issue and amend such orders, and to make and amend such general or special rules, regulations, and procedure, pursuant to and consistent with the provisions of this Act, as it shall deem necessary to carry out such provisions and to exercise and perform its powers and duties under this Act. Sec. 205, act of June 23, 1938 (52 Stat. 984); 49 U. 8. C. 425.
The Administrator is empowered and directed to encourage and foster the development of civil aeronautics and air commerce in the United States, and abroad, and to encourage the establishment of civil airways, landing areas, and other air navigation facilities. The Administrator and the Air Safety Board shall cooperate with the Authority in the administration and enforcement of this Act. Sec. 301, act of June 23, 1938 (52 Stat. 985); 49 U.S. O. 451.
General provisions :
Jurisdiction of suits, 536.
Nonpayment of judgments, 537.
Estoppel to deny corporate power, to be paid by the United States, 528.
538. Sureties :
Penalties for noncompliance with Notification of default of prin
law, 539. cipal, 529.
Bonds or notes of the United States
in lieu of surety, 540.
Officers of the Quartermaster and Finance
Special disbursing agents, 546.
Schools, District of Columbia, 550. Quarterly statements, 535. 525. Examination as to sufficiency.-* Hereafter every officer required by law to take and approve official bonds shall cause the same to be examined at least once every two years for the purpose of ascertaining the sufficiency of the sureties thereon; and every officer having power to fix the amount of an official bond shall examine it to ascertain the sufficiency of the amount thereof and approve or fix said amount at least once in two years and as much oftener as he may deem it necessary.
Sec. 5, act of Mar. 2, 1895 (28 Stat. 807), 60. S. C. 2.
526. Renewal.-* * Hereafter every officer whose duty it is to take and approve official bonds shall cause all such bonds to be renewed every four years after their dates, but he may require such bonds to be renewed or strengthened oftener if he deem such action necessary. In the discretion of such officer the requirement of a new bond may be waived for the period of service of a bonded officer after the expiration of a four-year term of service pending the appointment and qualification of his successor:
Sec. 5, act of mar. 2, 1895 ( 28 Stat. 808); 6 0. S. C. 3.
All disbursing officers of the pay department shall renew their bonds, or furnish additional security, at least once in four years, and as much oftener as the President may direct. R. S. 1192; 10 U. S. C. 1314.
The provisions of R. S. 1192 are now applicable to officers of the Finance Department, created by sec. 9, act of June 4, 1920, 68, ante.
527. Liability of principal and sureties.—* Provided, That the nonperformance of any requirement of this section on the part of any official of the Government shall not be held to affect in any respect the liability of principal or sureties on any bond made or to be made to the United States: Provided further, That the liability of the principal and sureties on all official bonds shall
continue and cover the period of service ensuing until the appointment and qualification of the successor of the principal :
Sec. 5, act of Mar. 2, 1895 (28 Stat. 808); 6 U. 8. C. 3.
528. Premium limited in amount and not to be paid by the United States.Until otherwise provided by law no bond shall be accepted from any surety or bonding company for any officer or employee of the United States which shall cost more than thirty-five per centum in excess of the rate of premium charged for a like bond during the calendar year nineteen hundred and eight: Provided, That hereafter the United States shall not pay any part of the premium or other cost of furnishing a bond required by law or otherwise of any officer or employee of the United States. Act of Aug. 5, 1909 (36 Stat. 125); 6 U. 8. C. 14.
529. Sureties; notification of default of principal.—That thereafter, whenever any deficiency shall be discovered in the accounts of any official of the United States, or of any officer disbursing or chargeable with public money, it shall be the duty of the accounting officers making such discovery to at once notify the head of the department having control over the affairs of said officer of the nature and amount of said deficiency, and it shall be the immediate duty of said head of department to at once notify all obligors upon the bond or bonds of such official of the nature of such deficiency and the amount thereof. Said notification shall be deemed sufficient if mailed at the post office in the city of Washington, District of Columbia, addressed to said sureties respectively, and directed to the respective post offices where said obligors may reside, if known; but a failure to give or mail such notice shall not discharge the surety or sureties upon such bond. Sec. 1, act of Aug. 8, 1888 (25 Stat. 387); 6 U. S. O. 4.
530. Sureties; limitation of action against.-That if, upon the statement of the account of any official of the United States, or of any officer disbursing or chargeable with public money, by the accounting officers of the Treasury, it shall thereby appear that he is indebted to the United States, and suit therefor shall not be instituted within five years after such statement of said account, the sureties on his bond shall not be liable for such indebtedness. Sec. 2, act of Aug. 8, 1888 (25 Stat, 387); 6 U. 8. C. 5.
The General Accounting Office (see 1646, post), rather than the Treasury, would probably now make the statement provided for in this section.
Notes of Decisions
When limitations begin to run.--Limita- Respecting limitation period, bond requiretions begin to run against liability of Gov. ing Army officer honestly to account for ernment official's sureties as soon as indebt public money and property held not eviedness is incorporated in statement properly dence of "debt," and duty secured thereby rendered. U. S. v. U. S. Fidelity & Guaranty did not become debt until officer defaulted. Co. (D. C., 1928), 25 F. (20) 500.
U. S. v. Geise (C. C. A., 1932), 56 F. (28) Government's claim against surety 583. official's bond held barred five years after Statement of account of Government of "statement of account” was rendered not- Aicial, when rendered, is final as to surety withstanding subsequent statement within and starts limitation period running. Id. five years.
Id. 531. Sureties; priority rights against insolvent principal.-Whenever the principal in any bond given to the United States is insolvent, or whenever, such principal being deceased, his estate and effects which come to the hands of his executor, administrator, or assignee, are insufficient for the payment of his debts, and, in either of such cases, any surety on the bond, or the executor, administrator, or assignee of such surety pays to the United States the money
due upon such bond, such surety, his executor, administrator, or assignee, shall have the like priority for the recovery and receipt of the moneys out of the estate and effects of such insolvent or deceased principal as is secured to the United States; and may bring and maintain a suit upon the bond, in law or equity, in his own name, for the recovery of all moneys paid thereon. R. S. 3468; 31 U. S. C. 193.
532. Surety companies as sureties.—That whenever any recognizance, stipulation, bond, or undertaking conditioned for the faithful performance of any duty, or for doing or refraining from doing anything in such recognizance, stipulation, bond, or undertaking specified, is by the laws of the United States required or permitted to be given with one surety or with two or more sureties, the execution of the same or the guaranteeing of the performance of the condition thereof shall be sufficient when executed or guaranteed solely by a corporation incorporated under the laws of the United States, or of any State having power to guarantee the fidelity of persons holding positions of public or private trust, and to execute and guarantee bonds and undertakings in judicial proceedings: Provided, That such recognizance, stipulation, bond, or undertaking be approved by the head of department, court, judge, officer, board, or body executive, legislative, or judicial required to approve or accept the same. But no officer or person having the approval of any bond shall exact that it shall be furnished by a guarantee company or by any particular guarantee company. Sec. 1, act of Aug. 13, 1894 (28 Stat. 279); 6 U. 8. C. 6.
A list of corporations acceptable as sureties on Federal bonds was promulgated by the Secretary of the Treasury under date of October 17, 1938 (3 F. R. 2596).
533. Surety companies; appointment of agents and service of process.---That no such company shall do business under the provisions of this act beyond the limits of the State or Territory under whose laws it was incorporated and in which its principal office is located nor beyond the limits of the District of Columbia, when such company was incorporated under its laws or the laws of the United States and its principal office is located in said District, until it shall by a written power of attorney appoint some person residing within the jurisdiction of the court for the judicial district wherein such suretyship is to be undertaken, who shall be a citizen of the State, Territory, or District of Columbia, wherein such court is held, as its agent, upon whom may be served all lawful process against such company, and who shall be authorized to enter an appearance in its behalf. A copy of such power of attorney, duly certified and authenticated, shall be filed with the clerk of the district court of the United States for such district at each place where a term of such court is or may be held, which copy, or a certified copy thereof, shall be legal evidence in all controversies arising under this Act. If any such agent shall be removed, resign, or die, become insane, or otherwise incapable of acting, it shall be the duty of such company to appoint another agent in his place as hereinbefore prescribed, and until such appointment shall have been made, or during the absence of any agent of such company from such district, service of process may be upon the clerk of the court wherein such suit is brought, with like effect as upon an agent appointed by the company. The officer executing such process upon such clerk shall immediately transmit a copy thereof by mail to the company, and state such fact in his return. A judgment, decree, or order of a court entered or made after service of process as aforesaid shall be as valid and binding on such company as if served with process in said district. Sec. 2, act of Aug. 13, 1894 (28 Stat. 279); 6 U. S. C. 7.
534. Surety companies; deposit of charter and statement of assets and liabilities. That every company, before transacting any business under this Act, shall deposit with the Secretary of the Treasury of the United States a copy of its charter or articles of incorporation, and a statement, signed and sworn to by its president and secretary, showing its assets and liabilities. If the said Secretary of the Treasury shall be satisfied that such company has authority under its charter to do the business provided for in this Act, and that it has a paid-up capital of not less than two hundred and fifty thousand dollars, in cash or its equivalent, and is able to keep and perform its contracts, he shall grant authority in writing to such company to do business under this Act. Scc. 3, act of Aug. 13, 1894 (28 Stat. 279); act of Mar. 23, 1910 (36 Stat. 241); 6 U. S. C. 8.
The amendment of this section and the section next following consisted in the substitution of the Secretary of the Treasury for the Attorney General, wherever the latter was mentioned in said sections as originally enacted.
535. Surety companies; quarterly statements.---That every such company shall, in the months of January, April, July, and October of each year, file with the said Secretary of the Treasury a statement, signed and sworn to by its president and secretary, showing its assets and liabilities, as is required by section three of this Act. And the said Secretary of the Treasury shall have the power, and it shall be his duty, to revoke the authority of any such company to transact any new business under this Act whenever in his judgment such company is not solvent or is conducting its business in violation of this Act. He may institute inquiry at any time into the solvency of said company and may require that additional security be given at any time by any principal when he deems such company no longer sufficient security. Sec. 4, act of Aug. 13, 189(28 Stat. 279); act of Mar. 23, 1910 (36 Stat. 291); 6 U.S. C. 9.
536. Surety companies; jurisdiction of suits.-That any surety company doing business under the provisions of this act may be sued in respect thereof in any court of the United States which has now or hereafter may have jurisdiction of actions or suits upon such recognizance, stipuiation, bond, or undertaking, in the district in which such recognizance, stipulation, boud or undertaking was made or guaranteed, or in the district in which the principal office of such company is located. And for the purpose of this Act such recognizance, stipulation, bond, or undertaking shall be treated as made or guaranteed in the district in which the office is located, to which it is returnable, or in which it is filed, or in the district in which the principal in such recognizance, stipulation, bond, or undertaking resided when it was made or guaranteed. Sec. 5, act of Aug. 13, 1894 (28 Stat. 280); 6 U. S. C. 10.
537. Surety companies; nonpayment of judgments.--Tliat if any such company shall neglect or refuse to pay any final judgment or decree rendered against it upon any such recognizance, stipulation, bond, or undertaking made or guaranteed by it under the provisions of this Act, from which no appeal, writ of error, or supersedeas has been taken, for thirty days after the rendition of such judgment or decree, it shall forfeit all right to do business under this Act. Sec. 6, act of Aug. 13, 1894 (28 Stat. 280); 6 U. S. C. 11.
538. Surety companies; estoppel to deny corporate power.—That any company which shall execute or guarantee any recognizance, stipulation, bond, or undertaking under the provisions of this Act shall be estopped in any proceeding to enforce the liability which it shall have assumed to incur, to deny its corporate power to execute or guarantee such instrument or assume such liability. Sec, 7, act of Aug. 13, 1894 (28 Stat. 280); 6 U. S. C. 12.