Deposits of securities provided for by the regulations in this part
shall be made with any Federal Reserve bank or any branch of a Federal
Reserve bank designated by the Office, or the Treasurer of the United
States, and shall be held subject to the order of the Office with power
in the Office, in its
discretion in the event of default by the said self-insurer, to collect
the interest as it may become due, to sell the securities or any of
them as may be required to discharge the obligations of the self-
insurer under the Act and to apply the proceeds to the payment of any
benefits or medical expenses for which the self-insurer may be liable.
The Office may, however, whenever it deems it unnecessary to resort to
such securities for the payment of benefits, authorize the self-insurer
to collect interest on the securities deposited by him.
