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FAR and DFARS › FAR Part 28: Bonds and Insurance › Subpart 28.2

FAR 28.204-1 United States bonds or notes.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section lets a person who must furnish a bond to the Government choose to deposit certain United States bonds or notes instead of using a surety. The deposited securities must equal the bond's penal sum at par value, and must come with a power of attorney and agreement allowing collection or sale if the principal defaults. It also tells the contracting officer where those securities may be turned over or deposited.

Applies to: Any person required to furnish a bond to the Government

What it requires

  • Deposit United States bonds or notes in an amount equal at par value to the penal sum of the bond
  • Include a duly executed power of attorney and agreement authorizing collection or sale of the deposited bonds or notes in the event of default of the principal on the bond
  • If in the District of Columbia, the contracting officer shall deposit all bonds and notes received with the Treasurer of the United States

Key terms: bond · surety · penal sum · par value · power of attorney and agreement

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

Any person required to furnish a bond to the Government has the option, instead of furnishing a surety or sureties on the bond, of depositing certain United States bonds or notes in an amount equal at their par value to the penal sum of the bond (the Act of February 24, 1919 (31 U.S.C. 9303) and Treasury Department Circular No. 154 (31 CFR part 225)). In addition, a duly executed power of attorney and agreement authorizing the collection or sale of such United States bonds or notes in the event of default of the principal on the bond shall accompany the deposited bonds or notes. The contracting officer may (a) turn securities over to the finance or other authorized agency official, or (b) deposit them with the Treasurer of the United States, a Federal Reserve Bank (or branch with requisite facilities), or other depository designated for that purpose by the Secretary of the Treasury, under procedures prescribed by the agency concerned and Treasury Department Circular No. 154 (exception: The contracting officer shall deposit all bonds and notes received in the District of Columbia with the Treasurer of the United States).

Sections that refer to it

  • 28.102-1 General.
  • 28.204 Alternatives in lieu of corporate or individual sureties.

← 28.204 Alternatives in lieu of corporate or individual sureties. · 28.204-2 Certified or cashiers checks, bank drafts, money orders, or currency. →

Rule changes for FAR Part 28

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 28.204-1 United States bonds or notes · SpendQuery