Illinois Treasurer’s (Surety) Bonds

The Illinois School Code, Article 8, Section 8-2 [105 ILCS 5/8-2], provides that “each school treasurer shall execute a bond,” payable either to township trustees or “the school board of each district for which he or she is treasurer or its successors in office.” “The penalty of the bond shall be 25% of the amount of all bonds, notes, mortgages, moneys and effects of which he [or she] is to have the custody,” and “shall be increased or decreased from time to time, as the increase or decrease of the amount of notes, bonds, mortgages, moneys and effects may require, and whenever in the judgment of the regional superintendent of schools,” the township trustees, “or the school board of the district by which the school treasurer was appointed or elected, the penalty of the bond should be increased or decreased; provided that the penalty of the bond shall not be increased to more than 25% of the amount of all bonds, notes, mortgages, moneys and effects of which the treasurer has custody at any time.” P.A. 91-357, eff. 7-29-99.

Bonds for Other Purposes (“Special Purpose Bonds”)
Many school districts may borrow money for the purpose of building, equipping, altering or repairing school buildings or purchasing or improving school sites, or acquiring and equipping playgrounds, recreation grounds, athletic fields, and other buildings or land used or useful for school purposes or for the purpose of purchasing a site, with or without a building or buildings thereon. Surety bonds are required for these purposes and Brokers’ Risk offers such bonds which we refer to as “Special Purpose Bonds.” Brokers’ Risk provides special purpose bonds for the handling of special funds such as new construction, life safety and working cash. Like our School Treasurer’s Bonds, Brokers’ Risk Special Purpose Bonds are competitively priced.

Service From an Industry Leader
Since 1982, Brokers’ Risk has enjoyed a strong relationship with the Illinois Association of School Boards (IASB). Brokers’ Risk treasurers’ bonds are sponsored by IASB and the Illinois Association of School Administrators, and are accepted by the Illinois State Board of Education, Regional Superintendents, and township trustees.