DA Form 4881-3 Surety Bond PDF - Army Materiel Loan

DA Form 4881-3 Surety Bond PDF – Army Materiel Loan – This comprehensive guide explains DA Form 4881-3, its purpose in U.S. Army loan processes, completion instructions, and related regulatory requirements for borrowers of Army materiel.

Download the official DA Form 4881-3 PDF here: https://armypubs.army.mil/pub/eforms/DR_a/pdf/A4881_3.pdf

Table of Contents

What Is DA Form 4881-3?

DA Form 4881-3 serves as the official Surety Bond (Exhibit II) for the loan of U.S. Army materiel. It ensures the safe return of borrowed property in good condition or provides financial reimbursement to the government for any loss, damage, depreciation, repair, renovation, or transportation expenses.

The form is used in conjunction with the Agreement for the Loan of US Army Materiel (DA Form 4881-R) and Exhibit I (DA Form 4881-2), which lists the specific property being loaned. It falls under AR 700-131, Loan, Lease, and Donation of Army Materiel.

Key details:

Proponent Agency: DCS, G-4 (Deputy Chief of Staff, G-4).
Date: July 2004 (replaces earlier DA Form 4881-3-R, September 1984).
Purpose: Legally binds the borrower (obligor) to protect public property and cover government costs.

Purpose and Importance in Army Materiel Loans

The U.S. Army loans materiel to DOD activities, non-DOD federal agencies, state/local governments, and certain special activities (e.g., educational institutions, veterans’ organizations) when it supports mutual interests without interfering with Army missions.

DA Form 4881-3 provides financial security. Bonds ensure:

Safe return of equipment.
Reimbursement for losses, damages, or expenses.
Compliance with statutory authorities (e.g., 10 U.S.C. provisions for specific loans).

Bonds equal the total value of items on Exhibit I. A “double bond” (twice the value) applies in specific cases, such as loans to the American National Red Cross (ANRC) for training or ordnance to certain high schools.

The bond protects taxpayers by guaranteeing the government recovers costs without relying solely on the borrower’s promise.

When Is a Surety Bond Required?

Bonds are mandatory for many non-DOD borrowers per 32 CFR Part 623 and AR 700-131 (Table 2-1). They may use:

Cash or certified bank check.
Negotiable U.S. Treasury bonds (with DA Form 4881-4 Power of Attorney).
Surety bond from a reputable bonding company.

Exceptions and waivers exist (e.g., for certain historical property managed by the Center of Military History). In emergencies (under $1,000 value in some older guidance), approval authorities may issue materiel before the bond posts, with a short grace period.

Loans to other federal agencies may exclude depreciation from bond calculations.

How to Complete DA Form 4881-3: Step-by-Step Instructions?

The form includes lettered blanks (a) through (y). Follow these official instructions precisely:

(a): Name of the borrowing Federal agency, local government, or special activity (or entity providing the bond).
(b): Type of activity (e.g., Federal agency, civil government, corporation like Boy Scouts of America).
(c): City of principal office.
(d): State of principal office.
(e): Penal sum (bond amount, matching Exhibit I total value).
(f): Loan period (number of days or authorized term).
(g): Date of the signed loan agreement.
(h)-(i): For Treasury bonds — interest rate and due date.
(j): Army installation or command Finance and Accounting Officer (e.g., Fort Hood, TX).
(k)-(m): Date the bond is signed.
(n): Title of borrower’s chief executive (e.g., Governor, Chief Scout Executive).
(o): Comptroller or treasurer, if applicable.
Witness, notary, and Power of Attorney sections follow standard legal execution.

Notes on security:

Deposit cash/check/Treasury bonds with the Finance and Accounting Officer.
Execute an irrevocable Power of Attorney (DA Form 4881-4) authorizing disbursement upon default.
Notarize the document properly.

Reproduce locally on 8.5 x 11-inch paper if needed. The form includes detailed instructions on page 3.

Key Terms and Conditions of the Bond

The obligor agrees to:

Safeguard and account for all loaned property.
Return it in good order (reasonable wear excepted) within the specified period.
Pay for lost/damaged items, depreciation (where applicable), repairs, and transportation.
Allow the government to liquidate security upon default.

Defaults trigger forfeiture based on actual Army expenses. Forfeitures require Secretary of the Army approval in some cases. Returned materiel may allow partial recoupment.

Bonds are held until final settlement and returned upon satisfactory completion.

DA Form 4881-R: Main Loan Agreement.
DA Form 4881-2: Exhibit I – List of Military Property.
DA Form 4881-4: Power of Attorney (for Treasury bonds).
DA Form 4881-1: Certificate for Signature by an Alternate.

These documents work together as part of a complete loan package.

Regulatory Framework and Compliance

Governed primarily by:

AR 700-131 (Loan, Lease, and Donation of Army Materiel, 23 August 2004).
32 CFR Part 623 (Loan of Army Materiel).

Borrowers must comply with accountability, inventory, maintenance, and reporting requirements. Annual inventories and proper storage (especially for arms/high-value items) are standard.

For current guidance, consult official Army Publications (armypubs.army.mil) or contact the appropriate approving authority listed in AR 700-131 Table 2-1.

Who Needs This Form? Target Users in the USA?

State and local governments.
Federal agencies (non-DOD).
Educational institutions.
Veterans’ organizations, scouting groups, and other authorized special activities.
Entities borrowing for training, disaster relief, or public benefit programs.

Proper execution protects both the borrower and the U.S. Government while enabling valuable public-private cooperation.

Download DA Form 4881-3 here and ensure full compliance with AR 700-131 for any Army materiel loan. Always verify the latest requirements through official Army channels, as policies can be updated.