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BondingSchedule

Bonding Schedule

Specific statutes that directly address the bonding of the treasurer for library boards provide that the treasurer is required to give bond in an amount approved by the board. [KRS 173.360(2); KRS 173.540(5); KRS 173.755(5)].  While there is no statutory amount for the bond, the board may want to use the bonding exposure schedule used by school district boards as a guideline.  The main issue to keep in mind in setting the amount of bond coverage is the maximum amount of money that is accessible at one time. 

 

 

   Revised Exposure Schedule

 EXPOSURE FACTOR  MINIMUM AMOUNT OF BOND
Up to $25,000  $2,500
$25,001 to $125,000  $25,000
$125,001 to $400,000  $50,000
$400,001 to $1,000,000  $100,000
$1,000,001 to $2,000,000  $150,000
$2,000,001 to $4,000,000  $200,000
$4,000,001 to $6,000,000  $300,000
$6,000,001 to $10,000,000  $400,000
$10,000,001 to $15,000,000  $600,000
$15,000,001 to $25,000,000  $800,000
$25,000,001 to $75,000,000  $1,000,000
$75,000,001 to $175,000,000  $1,500,000
$175,000,001 to $500,000,000  $2,000,000
$500,000,001 to $1,000,000,000  $3,000,000
$1,000,000,001 to $1,500,000,000  $4,000,000

 

(SBE 21.080; 1 Ky.R. 70; eff. 11-13-1974; Am. 1552; eff. 12-9-1990; 28 Ky.R. 1690; 2028; eff. 3-18-2002; 35 Ky.R. 635; 1461; eff. 1-5-2009.) — Taken from 702 KAR 3:080.

The board may want to include a statement in the bylaws that indicates: “The library adopts the bonding schedule according to the chart as shown in 702 KAR 3:080.”

 

 Revised March 22, 2016

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