Treasury Modernizes Surety Bond Rules

📢 Big news for public agencies and the surety industry:

Last year, for the first time in over 2 decades, the U.S. Department of the Treasury officially updated the rules governing federal surety bonds. The changes — effective August 9, 2024 — modernize how surety companies qualify and operate under 31 CFR Part 223.

🔍 Key takeaways from the new rule:
New categories of reinsurers are now recognized (including "reciprocal jurisdiction" and "alien" reinsurers)

Letters of credit are now accepted as security for excess risk
The Circular 570 publication cycle is shifting to August 1 annually

More clarity and consistency for federal and public sector procurement teams

📄 Read the full implementation guide from Treasury here:
👉 Final Rule Implementation Guide https://lnkd.in/dxkiHGSY (PDF)

💡 Why it matters for Surety2000 users:
This rule refresh signals continued support for secure, verifiable bonding practices — and aligns with the shift toward digital bond workflows across federal and state procurement.

In fact, even more federal updates are in the works - more on that in a follow up post coming soon…

Surety2000 is already aligned with these modernization efforts — offering public agencies and contractors a fully electronic, verified bond submission system that’s:

✔️ Trusted by surety companies nationwide
✔️ Secure and fraud-resistant
✔️ Compliant with current and evolving regulations

📬 If you're a public agency, now’s the time to ensure your bond intake process is built for this new regulatory landscape.
Want help digitizing your bond process? Click this link https://lnkd.in/dEYX6zUz