§ 162.560 What forms of security are acceptable under a WSR lease?

(a) We will accept a performance bond only in one of the following forms: (1) Certificates of deposit issued by a federally insured financial institution authorized to do business in the United States; (2) Irrevocable letters of credit issued by a federally insured financial institution authorized to do business in the United States; (3) Negotiable Treasury securities; or (4) Surety bonds issued by a company approved by the U.S. Department of the Treasury. (b) We may accept an alternative form of security approved by us that provides adequate protection for the Indian landowners and us, including but not limited to an escrow agreement and assigned savings account. (c) All forms of performance bonds or alternative security must, if applicable: (1) Indicate on their face that BIA approval is required for redemption; (2) Be accompanied by a statement granting full authority to BIA to make an immediate claim upon or sell them if the lessee violates the terms of the lease; (3) Be irrevocable during the term of the performance bond or alternative security; and (4) Be automatically renewable during the term of the lease. (d) We will not accept cash bonds.