Special Purpose (Surety) Bonds
- Created for Illinois School Districts
- Accepted by ISBE
- Competitively Priced
One of the most important elements of managing a successful school district budget is to have all of the necessary components to make the system work. At Brokers' Risk, we can provide you with an important component - a School Treasurer's Bond.
Illinois school code requires school districts to provide a Treasurer's Bond covering their school treasurer for an amount of money determined by the State Legislature (see following for details).
Treasurer's Bonds Specifically Created for Illinois School Districts
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
School District Bond Highlights:
- Up to $31.25 million of protection available
- Higher limits are considered on a case by case basis
- Bonds meet government requirements
- Bonds are accepted by the Illinois State Board of Education
- Bonds are offered at very competitive rates
- Our underwriting staff provides professional and timely service
- Special Purpose bonds available include life safety, working cash, and new construction
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." In addition 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 often at a 40% discount as compared to our competition.
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 the IASB, and have been accepted by the Illinois State Board of Education, Regional Superintendents, and township trustees.