PRP.10.3.160 Performance Bonds

(a) Unless waived in writing by the Tribe in accordance with this Code, the lessee shall obtain a satisfactory performance bond in an amount sufficient to secure the contractual obligations of the lease. The obligations of the lessee and its sureties under the bond to the Tribe shall also be enforceable by the United States, so long as the land remains in Trust or Restricted Status. The bond shall be written to ensure that the Lessor is provided a thirty (30)-day advance written notice before any cancellation of the bond. The bond shall be for the purpose of securing the lessee's contractual obligations under the lease and shall guarantee:

(1) The annual lease payment;

(2) The estimated development cost of improvements; and

(3) Any additional amount necessary to ensure compliance with the lease.

(b) The Tribe may waive the bond requirement, or reduce the amount, if doing so is in the Best Interests of the Tribe. The Tribe shall maintain written records of the waivers and reductions.

(c) The performance bond may be 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) A surety bond issued by a company approved by the U.S. Department of the Treasury.