Chapter 282. Relative to recognizances, stipulations, bonds, and undertakings, and to allow certain corporations to be accepted as surety thereon
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CHAP. 282.— An Act Relative to recognizances, stipulations, bonds, and undertakings, and to allow certain corporations to be accepted as surety thereon.August 13, 1894. *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Security companies.Bonds executed by, accepted as surety/ 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 injudicial proceedings: *Provided*, That such recognizance, stipulation,*Proviso*.Approval. 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 theDiscrimination forbidden. approval of any bond shall exact that it shall be furnished by a guarantee company or by any particular guarantee company. Sec. 2. That no such company shall do business under the provisionsAgents to be appointed in judicial district where surety undertaken. 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 powerCopy of power of attorney. 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. It any such agent shall be removed, resign,Vacancies. 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 suchService of process. 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. 3. That every company before transacting any business underCopy of charter to be tiled with Attorney-General. this Act shall deposit with the Attorney-General 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 Attorney-General shall be satisfied thatAuthority to act. 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. Sec. 4. That every such company shall, in the months of January, Quarterly financial reports.April, July, and October of each year, file with the said Attorney-General a statement, signed and sworn to by its president and Secretary, showing its assets and liabilities, as is required by section three 280 of tins Act.
And the said Attorney-General shall have the power,Revoking authority. and it shall be his duty, to revoke the authority of any such company to transact any new business under this Act whenever hi his judgment such company is not solvent or is conducting its business in violation Inquiries, etc.of this Act. He may institute inquiry a t 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. 5. That any surety company doing business under the provisionsJurisdiction of United States courts. 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, stipulation, bond, or undertaking, in the district in which such recognizance, stipulation, bond, oi’ undertaking was made or guaranteed, or in the district in which the principal office of such company is located.
And for the purposes 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. 6. That if any such company shall neglect or refuse to pay anyForfeiture of rights on failing to pay judgments. 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. 7. That any company which shall execute or guarantee anyCompanies estopped from denying power. 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. 8. That any company doing business under the provisions ofPenalty for failing to comply with provisions. this Act which shall fail to comply with any of its provisions shall forfeit to the United States for every such failure not less than five hundred dollars nor more than five thousand dollars, to be recovered by suit in the name of the United States in the same courts in which suit may be brought against such company under the provisions of this Act, and such failure shall not affect the validity of any contract entered into by such company.
Approved, August 13, 1894.