FAR 28.204 Alternatives in lieu of corporate or individual sureties

Section Federal Acquisition Regulation

Facts

Citation
FAR 28.204
Type
Section
Last amended
86 FR 3682 Effective Feb 16, 2021
Proposed changes
1
Text as of
FAC 2026-01
Official text
acquisition.gov

Text from acquisition.gov. Federal Register history from the Federal Register's records of the rules that amended this section.

Text

(a) Any person required to furnish a bond to the Government may furnish any of the types of security listed in 28.204-1 through 28.204-3 instead of a corporate or individual surety for the bond. When any of those types of security are deposited, a statement shall be incorporated in the bond form pledging the security in lieu of execution of the bond form by corporate or individual sureties. The contractor shall execute the bond forms as the principal. Agencies shall establish safeguards to protect against loss of the security and shall return the security or its equivalent to the contractor when the bond obligation has ceased.

(b) Upon written request by any contractor securing a performance or payment bond by any of the types of security listed in 28.204-1 through 28.204-3, the contracting officer may release a portion of the security only when the conditions allowing the partial release of security in 28.203-3(c) are met. The contractor shall, as a condition of the partial release, furnish an affidavit agreeing that the release of such security does not relieve the contractor of its obligations under the bond(s).

(c) The contractor may satisfy a requirement for bond security by furnishing a combination of the types of security listed in 28.204-1 through 28.204-3 or a combination of bonds supported by these types of security and additional surety bonds under 28.202 or 28.203. During the period for which a bond supported by security is required, the contractor may substitute one type of security listed in 28.204-1 through 28.204-3 for another, or may substitute, in whole or combination, additional surety bonds under 28.202 or 28.203.

Contents

  • 28.204-1 United States bonds or notes
  • 28.204-2 Certified or cashier’s checks, bank drafts, money orders, or currency
  • 28.204-3 Irrevocable letter of credit
  • 28.204-4 Contract clause

Federal Register history

Final rule Published Effective
Federal Acquisition Regulation: Individual Sureties 86 FR 3682 · FAC 2021-03

Proposed changes

Proposed rule Published Comments
Federal Acquisition Regulation: Revolutionary Federal Acquisition Regulation Overhaul Parts 14, 28, 36, and 52 91 FR 59534 · FAR Case 2026-010, Docket No. FAR-2026-0010, Sequence No. 1 Closed Oct 19, 2026No final rule found

Sections cited

Quick answers

What is FAR 28.204?

FAR 28.204 is a section of the Federal Acquisition Regulation, titled "Alternatives in lieu of corporate or individual sureties".

When was FAR 28.204 last changed?

The most recent final rule on record is "Federal Acquisition Regulation: Individual Sureties" (86 FR 3682), published Jan 14, 2021 and effective Feb 16, 2021.

Are changes to FAR 28.204 proposed?

One proposed change has no final rule yet.

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