IN Code § 5-4-1-18 (2021)
2021 Indiana Code|Title 5. State and Local Administration|Article 4. Officers' Bonds and Oaths|Chapter 1. Filing, Recording, and Terms of Bonds and Oaths|5-4-1-18. Local Officer, Employee, and Contractor Surety Bonds and Crime Policies; Amount, Form, Term Requirements

Sec. 18. (a) Except as provided in subsections (b), (c), and (d), the following individuals shall file and maintain in place an individual surety bond during each year that the individual serves as an officer, employee, or contractor:(1) City judges, controllers, clerks, and clerk-treasurers.(2) Town judges and clerk-treasurers.(3) Auditors, treasurers, recorders, surveyors, sheriffs, coroners, assessors, and clerks.(4) Township trustees.(5) Those employees directed to file an individual bond by the fiscal body of a city, town, or county.(6) Township assessors (if any).(7) Individuals:(A) who are employees or contractors of a city, town, county, or township; and(B) whose official duties include receiving, processing, depositing, disbursing, or otherwise having access to funds:(i) that belong to the federal government, the state, a political subdivision, or another governmental entity; and(ii) in an amount that exceeds five thousand dollars ($5,000) per year.(b) The fiscal body of a city, town, county, or township may by ordinance authorize the purchase of a blanket bond that:(1) is endorsed to include faithful performance to cover the faithful performance of; and(2) includes aggregate coverage sufficient to provide coverage amounts specified for;all employees, commission members, and persons acting on behalf of the local government unit, including the officers, employees, and contractors described in subsection (a) who are required to file a bond under this chapter.(c) The fiscal body of a city, town, or county may by ordinance or the fiscal body of a township may by resolution authorize the purchase of a name or position schedule bond that:(1) names each individual or each position covered under the schedule bond;(2) is endorsed to include faithful performance to cover the faithful performance of all officers, employees, and contractors described in subsection (a) who are required to file a bond under this chapter; and(3) includes aggregate coverage sufficient to provide coverage amounts specified for all officers, employees, and contractors described in subsection (a) who are required to file a bond under this chapter.(d) The fiscal body of a city, town, county, or township may by ordinance (or for a township, by resolution) authorize the purchase of a crime insurance policy that:(1) provides coverage for criminal acts or omissions committed by;(2) is endorsed to include faithful performance to cover the faithful performance of; and(3) includes aggregate coverage sufficient to provide coverage amounts specified for;all officers, employees, contractors, commission members, and persons acting on behalf of the local government unit and required to file a bond under this chapter. For the sole purpose of recovering public funds on behalf of a local government unit, the state is considered to be an additional named insured on all crime insurance policies and endorsements obtained under this subsection.(e) Except as provided in subsections (k) and (l), the fiscal bodies of the respective units shall fix the amount of the bond of city controllers, city clerk-treasurers, town clerk-treasurers, Barrett Law fund custodians, county treasurers, county sheriffs, circuit court clerks, township trustees, and conservancy district financial clerks as follows:(1) The amount must equal thirty thousand dollars ($30,000) for each one million dollars ($1,000,000) of receipts of the officer's office during the last complete fiscal year before the purchase of the bond, subject to subdivision (2).(2) The amount may not be less than thirty thousand dollars ($30,000) nor more than three hundred thousand dollars ($300,000) unless the fiscal body approves a greater amount for the officer or employee.County auditors shall file bonds in amounts of not less than thirty thousand dollars ($30,000), as fixed by the fiscal body of the county.(f) The amount of the bond of a person who is not specified in subsection (e) and is required to file an individual bond shall be fixed by the fiscal body of the unit as follows:(1) If the person is not described in subsection (a)(7), at not less than fifteen thousand dollars ($15,000).(2) If the person is described in subsection (a)(7), at not less than five thousand dollars ($5,000).(g) Except as provided in subsection (m), a controller of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) shall file an individual surety bond in an amount:(1) fixed by the board of directors of the solid waste management district; and(2) that is at least thirty thousand dollars ($30,000).(h) Except as provided under subsection (g), a person who is required to file an individual surety bond by the board of directors of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) shall file a bond in an amount fixed by the board of directors.(i) In 1982 and every four (4) years after that, the state examiner shall review the bond amounts fixed under this section and report in an electronic format under IC 5-14-6 to the general assembly whether changes are necessary to ensure adequate and economical coverage.(j) The commissioner of insurance may prescribe the form of the bonds or crime insurance policies required by this section, in consultation with the state board of accounts and the Indiana archives and records administration under IC 5-15-5.1-6. However, a bond or crime insurance policy that does not conform to a form prescribed under this subsection may be used to meet the requirements of this chapter.(k) Notwithstanding subsection (e), the state board of accounts may fix the amount of the bond for a city controller, city clerk-treasurer, town clerk-treasurer, Barrett Law fund custodian, county treasurer, county sheriff, circuit court clerk, township trustee, or conservancy district financial clerk at an amount that exceeds thirty thousand dollars ($30,000) for each one million dollars ($1,000,000) of receipts of the officer's office during the last complete fiscal year before the purchase of the bond. However, the bond amount may not exceed three hundred thousand dollars ($300,000). An increased bond amount may be established under this subsection only if the state examiner issues a report under IC 5-11-5-1 that includes a finding that the officer engaged in malfeasance, misfeasance, or nonfeasance that resulted in the misappropriation of, diversion of, or inability to account for public funds.(l) Notwithstanding subsection (f), the state board of accounts may fix the amount of the bond for any person who is described in:(1) subsection (f)(1) and is required to file an individual bond at an amount that exceeds fifteen thousand dollars ($15,000); or(2) subsection (f)(2) and is required to file an individual bond at an amount that exceeds five thousand dollars ($5,000).An increased bond amount may be established under this subsection only if the state examiner issues a report under IC 5-11-5-1 that includes a finding that the person engaged in malfeasance, misfeasance, or nonfeasance that resulted in the misappropriation of, diversion of, or inability to account for public funds.(m) Notwithstanding subsection (g), the state board of accounts may fix the amount of the bond for a controller of a solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal) at an amount that exceeds thirty thousand dollars ($30,000). An increased bond amount may be established under this subsection only if the state examiner issues a report under IC 5-11-5-1 that includes a finding that the controller engaged in malfeasance, misfeasance, or nonfeasance that resulted in the misappropriation of, diversion of, or inability to account for public funds.(n) The following apply to a bond that is filed to comply with this section:(1) Each bond must provide coverage in the amount required for the individual covered under the bond for one (1) year (the policy year) commencing on the first day of the:(A) calendar year;(B) fiscal year of the political subdivision or governmental unit; or(C) individual's service in the office or position for which a bond is required.(2) A continuous bond may be used to satisfy the requirement of subdivision (1) if the bond:(A) is renewed on an annual basis for the period during which the individual serves in the office or position for which a bond is required; and(B) provides coverage in the amount required for the individual covered under the bond for each policy year.However, any claim under a continuous bond used under this subdivision must be brought not later than six (6) years after the occurrence giving rise to the claim.(3) The maximum aggregate liability of the surety or insurer for a single policy year is the penal sum of the bond. In the case of a continuous bond, the maximum aggregate liability of the surety or insurer for the entire term that the bond is in effect is the penal sum of the bond for the current term of the bond and the penal sums of the bond for the five (5) immediately preceding years.As added by Acts 1981, P.L.47, SEC.3. Amended by P.L.54-1989, SEC.1; P.L.49-1989, SEC.5; P.L.33-1992, SEC.2; P.L.49-1995, SEC.4; P.L.1-1996, SEC.36; P.L.28-2004, SEC.56; P.L.146-2008, SEC.34; P.L.176-2009, SEC.1; P.L.117-2011, SEC.1; P.L.171-2015, SEC.6; P.L.230-2015, SEC.2; P.L.60-2016, SEC.1; P.L.188-2016, SEC.3.