(a) With the approval of the Legislative Joint Auditing Committee, the Legislative Auditor shall give notice and make proof of loss to and demand payment of the surety on any bond covering an official or employee in which the audit report of the records of that official or employee reflects any shortage or other liability for which that official or employee and his or her surety may in any way be liable.
(b) (1) Within a reasonable time after the Legislative Auditor has given notice and made proof of loss and demand for payment as stated in subsection (a) of this section, the surety shall make payment of the amounts found to be due in the name of the appropriate entity and forward the payment to the Legislative Auditor.
(2) The Legislative Auditor shall transmit the payments received to the treasurers of the respective local taxing units with instructions to credit the amounts received to the accounts entitled to the funds.
(c) The requirements of the self-insured fidelity bond program, § 21-2-701 et seq., shall apply to those officials or employees covered by the program, including, but not limited to, the provision for timing of coverage determinations by the Governmental Bonding Board under § 21-2-709.
Section: Previous 10-4-414 10-4-415 10-4-416 10-4-417 10-4-418 10-4-419 10-4-420 10-4-421 10-4-422 10-4-423 10-4-424 10-4-425 10-4-426 10-4-427Last modified: November 15, 2016