§ 29-3-7-1 — Guardian's bond; amount; collateral in lieu of sureties on bond; reduced bonds

Indiana § 29-3-7-1

• Jurisdiction: Indiana
• Art. 3: GUARDIANSHIPS AND PROTECTIVE
• Ch. 7: Qualification and Bonding Requirements for Guardians

Text

(a) Unless the court finds that a bond is
unnecessary and enters an order to that effect, or unless the appointed
guardian is a bank or trust company (as defined in IC 28-1-1-3), a
guardian must execute and file a bond relating to the duties of the
guardian's office. Unless otherwise directed by the court, the bond must
be in an amount that is not less than the amount determined under
STEP THREE of the following STEPS:
STEP ONE: Enter the aggregate value of the guardianship
property.
STEP TWO: Add to the amount entered under STEP ONE one (1)
year's estimated income.
STEP THREE: From the sum determined under STEP TWO
subtract the value of any property that the guardian, by express
limitation of power, lacks the power to sell, convey, or encumber
without a court order.
(b) The court, instead of sureties on a bond, may accept other
collateral for the performance of the bond, including a pledge of
securities or a mortgage of the land.
(c) The court may fix the bond at an amount less than that provided
under subsection (a), but the amount fixed must, in the court's opinion,
provide adequate protection to the property of the protected person. In
fixing a reduced bond, the court may do any of the following:
(1) Direct the guardian to invest all, or a part of, the property
subject to the guardian's control in:
(A) stocks, bonds, or other securities of any corporation, public
or private, which are listed or admitted to trading on the New
York Stock Exchange, the American Stock Exchange, the
Midwest Stock Exchange, the Pacific Coast Stock Exchange, or
any other exchange regulated by the Securities and Exchange
Commission; or
(B) securities that are obligations issued or guaranteed by the
United States.
(2) Direct the guardian to place all, or a part of, the property
subject to the guardian's control in a savings account. However,
the court may require property to be held in a manner that
requires either the joint authorization of the guardian and the
guardian's surety or an order of the court to remove the funds
from the account.
(3) Direct the guardian to transfer all, or a part of, the property
subject to the guardian's control to a bank or trust company
organized under the laws of Indiana or of the United States and
operating a bank or trust company located within Indiana to
administer the estate as an agent for the guardian.
(4) Direct the guardian to:
(A) transfer any or all stocks, bonds, and securities subject to
the guardian's control only after obtaining an order of the court
directing the transfer; and
(B) require that notice of this restriction on the transfer of such
stocks, bonds, and securities be placed upon the certificates
evidencing those stocks, bonds, and securities.
(5) Direct the guardian to comply with all, part, or any
combination of the requisites specified in subdivisions (1)
through (4).
(6) Direct the guardian to take any other action that the court
determines necessary to provide adequate protection to the
property of the protected person.

Legislative History

As added by P.L.169-1988, SEC.1.