§ 21-04-08 — Bond of depository - Approval or disapproval - Term

North Dakota § 21-04-08

• Jurisdiction: North Dakota
• Title 21: Governmental Finance
• Ch. 21-04: Depositories of Public Funds

Text

Except as is otherwise provided in sections 21-04-16 and 21-04-17, and before any deposit
is made in any depository other than the Bank of North Dakota, by or in behalf of any public
corporation, such depository shall furnish a bond payable to the public corporation making such
deposit in an amount that at least equals the largest deposit that at any time may be in such
depository. Such bond must be approved as to form by the state's attorney and as to amount
and sufficiency by the board. If the board fails or refuses to approve any such bond, the same
may be presented to the judge of the district court, upon three days' notice to the clerk of the
public corporation to which such bond was submitted, and the judge shall proceed forthwith to
hear and determine the sufficiency of such bond and may approve or disapprove the same as
the facts warrant. If the judge approves such bond, the said financial institution must be
declared a depository of the funds of such public corporation. The sureties on all bonds required
by public corporations according to the provisions of this chapter shall justify as required by
chapter 32-02. In lieu of such personal bond, the governing board of the public corporation
involved may require the financial institution designated as a depository to file a surety bond for
a sum equal to the amount of funds such financial institution may receive according to the
provisions of this chapter. Such bond, when approved, must be deposited with the county
auditor. Such bond must be a continuing bond and must be binding until the proper board of the
public corporation shall require a new or different bond, but in no case involving the deposit of
funds of public corporations may such bond be continued without a renewal thereof for a longer
period than four years.