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See LMCIT risk management <br />information memo LMCIT Bond <br />Coverage for further <br />information on the type of <br />coverage offered. <br /> <br />Mitre. Stat, ,~ 574.23. <br /> <br />6. Form of surety bOnds <br />The insurance company that writes the bond usually provides corporate <br />surety bond toms. The forms should comply with state requirements. <br />Printed forms for personal surety bonds are available from legal stationers. <br />The League can provide information on suggested forms. <br /> <br />7. Terms of bonds <br /> <br />Bonds may be for a specified period, such as for a year, or for an indefinite <br />term, in which case they remain in effect as long as the person stays in <br />office. The League recommends, however, that the council only accept <br />bonds that are for a one-year period. Each bonded officer or employee <br />would then furnish a new bond annually. This procedure protects the city <br />against an accumulation of improper actions on the part of an individual. <br /> <br />8. LMCIT bond coverage <br /> <br />The League of Minnesota Cities Insurance Trust (LMCIT) offers public <br />employee bond coverage as part of its overall package of coverage for <br />cities. LMCIT's bond program makes available all of the fidelity and <br />faithful performance bond coverage and limits that is needed by cities and <br />city officials, and coordinates the bond coverage with a city's other <br />coverage to avoid gaps, overlaps, and inconsistencies. <br /> <br />B. Examination of accounts <br />The council must make, or arrange for another party to make, a thorough <br />examination of an officer's financial accounts when: the official files a new <br />official bond or other securi.'ty; the officer's term expires; or a vacancy <br />results from the death, resignation or removal of the officiall If there is any <br />discrepancy in the accounts, the council must immediately notify the <br />official and the official's sureties of the irregularity. The statement must be <br />in writing. The council should mail the statement to the officer and sureties <br />at their residences, if known. Failure to make the examination or give such <br />notice does not discharge the sureties. <br /> <br />Such an examination of accounts should occur at the end of an official's <br />term of office whether or not that official has been re-elected to serve <br />another term. <br /> <br />8-16 <br /> <br />Tlfis chapter last revised 12/14/2004 <br /> <br />HANDBOOK FOR MINNESOTA CITIES <br /> <br />-76- <br /> <br /> <br />