§ 10-2-16 — Surety bond fund

New Mexico § 10-2-16

• Jurisdiction: New Mexico
• Ch. 10: Public Officers and Employees
• Art. 2: Bonds

Text

A. There is created in the state treasury a "surety bond fund". B. Money deposited in the surety bond fund may be expended by the department: (1) to provide surety bond coverage; (2) to create a retention fund to cover all or any portion of the surety bond risks of state agencies and covered educational entities; (3) to pay claims of state agencies and covered educational entities covered by a surety bond certificate of coverage issued by the department; and (4) to pay any costs and expenses of carrying out the provisions of this section. C. Claims against the surety bond fund shall be made in accordance with a certificate of coverage issued by the department to each state agency and covered educational entity. If the secretary has reason to believe that the surety bond fund would be exhausted by the payment of all claims allowed against the fund during a particular state fiscal year, the amounts paid for each claim shall be prorated with each state agency and covered educational entity receiving an amount equal to the percentage that its claims bear to the total of claims outstanding and payable from the fund. Any amounts due and unpaid as a result of such proration shall be paid in the following fiscal years. D. The department shall collect or transfer funds from each state agency and covered educational entity to cover costs of coverage of employees of the agency as required by this section. Money collected or transferred from a state agency or covered educational entity pursuant to this subsection shall be deposited in the surety bond fund. Income from the surety bond fund shall be credited to the fund. E. The department may provide individual surety bond coverage protecting employees who are employers or supervisors from personal losses for which they may be responsible, which losses were caused by the lack of honesty or faithful performance of employees under their supervision or control. F. The department shall have the right to recover from a public employee for any loss under the Surety Bond Act [10-2-13 to 10-2-16 NMSA 1978] for which the public employee was responsible. G. The risk management advisory board shall review: (1) specifications for all surety bond coverage to be purchased by the department; (2) the form and legal sufficiency of any surety bond coverage to be purchased by the department; and (3) the form, purpose and content of any surety bond certificate of coverage to be issued by the director.

Legislative History

1953 Comp., § 5-2-16, enacted by Laws 1978, ch. 132, § 4; 1986, ch. 102, § 3;