Entities Authorized as Sureties
- A United States corporation or a corporation organized under the laws of the Philippine Islands may solely execute or guarantee recognizances, stipulations, bonds, or undertakings where sureties are required or permitted.
- Such corporations must have the power to guarantee the fidelity of persons in public or private trust positions, execute bonds and undertakings in judicial proceedings, and guarantee faithful performance of contracts with public authorities.
Approval Requirement
- The recognizance, stipulation, bond, or undertaking guaranteed or executed by these corporations must be approved by the head of the department, court, judge, officer, board, or body (executive, legislative, or judicial) responsible for its acceptance or approval.
- No official may require that the surety be furnished by a particular guarantee company; this ensures non-discriminatory acceptance among authorized surety corporations.
Authorization and Compliance Conditions
- No head of department or official shall approve or accept a corporation as surety unless:
- The corporation is authorized to do business legally in the Philippine Islands as provided by the Act.
- The corporation has a contract with the Government of the Philippine Islands authorizing it to become a surety on official recognizances, stipulations, bonds, and undertakings.
Exclusion of Certain Provisions
- The provisions of the subsequent sections of this Act, specifically Sections 2 and beyond, do not apply to corporations organized under the laws of the Philippine Islands.
Effective Date and Retroactivity
- The Act is retroactive and effective from January 13, 1913, thereby applying to all relevant recognizances, bonds, or undertakings from that date onward.