UNITED STATES OF AMERICA, PLAINTIFF-APPELLEE,
v.
HERBERTO MADRIGAL, DEFENDANT, AND INTERNATIONAL FIDELITY INSURANCE CO., DEFENDANT-APPELLANT
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The court held that 6 U.S.C. § 15 does not apply to a surety's obligation on a bond forfeiture, and therefore the surety cannot satisfy its obligation with treasury bonds worth less than the face value of the bond.
International Fidelity Insurance Co. (Fidelity), a surety, sought to satisfy its obligation on a forfeited $15,000 bail bond by tendering United State…
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MERRITT, Circuit Judge.
In this civil case, Defendant-Appellant, International Fidelity Insurance Co. (Fidelity) appeals from District Judge Churchill’s Order denying Fidelity’s motion for an order compelling the Government to accept United States treasury bonds in satisfaction of Fidelity’s obligation on a bail bond forfeiture by defendant Madrigal. The issue on appeal is whether6 U.S.C. § 15 (1976) should be applied to the obligation of a surety on a bond forfeiture.
By its language,6 U.S.C. § 15 does not reach the case at bar. It refers only to the right of the defendant himself to deposit certain types of government securities as bond instead of using a surety to make bail. This Court, in Heine v. U.S., 135 F. 2d 914 (6th Cir.1943), discussed the applicability of6 U.S.C. § 15 to a surety in connection with the issue of whether a cash deposit by sureties could be used to satisfy a fine against the defendants. The court stated that the statute was not applicable to a cash deposit by sureties, because a surety is not a person who “is required to furnish” a personal bond.
Appellant admits that the statutory language does not explicitly cover a surety’s obligations upon bond forfeiture. It argues, however, that because a third party can deposit money or securities as bail for a defendant initially, that a surety should have the same freedom upon default. It is by no means clear that such bonds would be acceptable in this Circuit in light of Heine. If they were accepted, any deficiency upon forfeiture by the defendant could be satisfied out of other assets of the obligor under F.R.Crim.P. 46(e)(3), which provides: In this case, however, Fidelity is trying to satisfy its entire obligation on a $15,000 bond, with securities worth less than that amount. (3) Enforcement. When a forfeiture has not been set aside, the court shall on motion enter a judgment of default and execution may issue thereon. By entering into a bond the obligors submit to the jurisdiction of the district court and irrevocably appoint the clerk of the court as their agent upon whom any papers affecting their liability may be served. Their liability may be enforced on motion without the necessity of an independent action. In short, the language of6 U.S.C. § 15 does not apply to sureties, and Fidelity has offered no convincing justification for allowing it to satisfy its contractual obligation to the government with property worth less than the agreed amount.
Accordingly, the Order of the District Court is affirmed.