(a)(1) Any board member, executive committee member, employee officer, or any other authorized person of a development district, who receives public funds, has authority to make expenditures from public funds, or has access to any public funds, is hereby required to give bond to be made payable to the state of Tennessee with such sureties as hereinafter provided. Such bond is to be conditioned in all cases in which a different condition is not prescribed, upon the faithful discharge of the duties of such office, employment or other authorized activity in which such person is engaged during the time such person continues therein, or in the discharge of any part of such duties.
(2)(A) A development district may obtain, in lieu of the surety bond required by subdivision (a)(1), a policy of
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(a) (1) Any board member, executive committee member, employee officer, or any other authorized person of a development district, who receives public funds, has authority to make expenditures from public funds, or has access to any public funds, is hereby required to give bond to be made payable to the state of Tennessee with such sureties as hereinafter provided. Such bond is to be conditioned in all cases in which a different condition is not prescribed, upon the faithful discharge of the duties of such office, employment or other authorized activity in which such person is engaged during the time such person continues therein, or in the discharge of any part of such duties. (2) (A) A development district may obtain, in lieu of the surety bond required by subdivision (a)(1), a policy of insurance issued by an insurance company duly authorized to do business in this state or an agreement with a pool established by two (2) or more governmental entities pursuant to § 29-20-401 or an entity established pursuant to § 29-20-401(b)(2) for the administration of such agreement, which provides government crime coverage, employee dishonesty insurance coverage, or equivalent coverage that insures the lawful performance by officials and their employees of their fiduciary duties and responsibilities. (B) A policy or agreement obtained pursuant to subdivision (a)(2)(A) must have limits of not less than four hundred thousand dollars ($400,000) per occurrence. (C) A policy or agreement satisfying the requirements set forth in subdivision (a)(2)(A) is deemed to be a blanket official bond for each official or office identified in the policy or agreement for all purposes under this chapter. (D) The officials who may be covered under the policy or agreement include board members, policy council members, employees, officers, and other authorized persons of a development district who handle public funds pursuant to this chapter. (E) A copy of the policy or agreement evidencing the persons covered, the amount of coverage maintained, and the type of coverage provided must be filed in the office of the register of deeds where the office of the development district is located. (F) A policy or agreement filed pursuant to subdivision (a)(2)(E) satisfies the requirement for the filing of official bonds under subsection (e). (b) Such official bond shall be executed in the same form as that prescribed by § 8-19-101 , for county and state officials and employees. (c) (1) Effective July 1, 2013, the minimum amount of such required bond shall be determined from the amount of revenues handled by the respective development district as reported in the last audit approved by the comptroller of the treasury. The minimum amount of the bond shall be based on revenues as follows: (A) Four percent (4%) of the revenues up to three million dollars ($3,000,000); and (B) Two percent (2%) of the excess over three million dollars ($3,000,000) shall be added. (2) The amounts indicated in subdivisions (c)(1)(A) and (B) shall be cumulative. (d) All such official bonds shall be signed by authorized individuals of a corporate surety, and such corporation shall be duly licensed to do business in this state as a surety. (e) The official bonds required under this section are hereby required to be recorded in the office of the register of deeds where the office of the development district is located and transmitted to the office of the county clerk in the same county for safekeeping. (f) No examination or certification of any of such bonds shall be required in this section. (g) Provisions for bonds of all state and county officers set forth in title 8, chapter 19, shall also govern the bonds of all persons covered under this section, so far as title 8, chapter 19, is not inconsistent with this section. (h) The respective development district shall pay the premiums for such bonds.