# Surety Requirements
> **Rural Housing Service** · Direct final rule. · Published 2005-01-07 · Effective 2005-04-07 · 70 FR 1325
## Document
- **Document number:** 05-325
- **Category:** rural-development
- **Sub-agency:** Rural Housing Service
- **Federal Register citation:** 70 FR 1325
- **CFR reference:** 7 CFR 1924
- **Publication date:** 2005-01-07
- **Effective date:** 2005-04-07
## Abstract

The Rural Housing Service is amending its regulations to change the threshold for surety requirements guaranteeing payment and performance from a $100,000 contract amount to the maximum Rural Development Single Family Housing area lending limit. This limit will vary by locality. This will liberalize the requirement for surety and take into account the increased construction cost of single family homes in Rural Development's Single Family Housing Program. This will ease the burden on small contractors for whom obtaining surety is difficult and expensive, thereby reducing costs to our single family housing borrowers.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2005/01/07/05-325/surety-requirements)
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