Bonds - When Principal and Surety Not Liable

  1. Law
  2. Georgia Code
  3. Public Officers and Employees
  4. Accounting for Public Funds
  5. Bonds - When Principal and Surety Not Liable

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  1. Neither the principal nor the surety on any bond of any collecting officer or any officer to hold public funds shall be liable for the failure of such officer to account for any public money coming into his hands which he shall have deposited in any designated depository or, if the proper authority shall have failed to designate a depository, in any bank selected by him, if it was deposited in the name of the public body to which it belongs, in his own name in his official title or with his official capacity disclosed, or if the bank receiving the same shall otherwise have notice of the public nature of the deposit, provided that said failure to account is attributable solely to the failure or insolvency of such depository.
  2. Neither the principal nor the surety on the bond of the head of any state department or agency shall be liable for the failure of an employee of any such department or agency to account for any public money coming into the hands of such employee, if such employee is bonded in an amount deemed adequate by the head of the department or agency and the state auditor and the bond complies with this chapter.

(Ga. L. 1933, p. 78, § 13; Ga. L. 1964, p. 282, § 1.)

OPINIONS OF THE ATTORNEY GENERAL

Limitation on liability of principal and surety inapplicable when principal not bonded.

- A default by an employee in an obligation to account for the funds advanced to the employee for the purposes stated in Ga. L. 1973, p. 842, § 1 (see now O.C.G.A. § 45-7-25) was a failure "faithfully to account for all moneys coming into (his) hands," and thus was a claim cognizable under the bond required by former Code 1933, § 89-806 and Ga. L. 1964, p. 282, § 1 (see now O.C.G.A. §§ 45-8-2 and45-8-8); in the event the employee is not bonded as required by former Code 1933, § 89-806, then the limitation of liability with respect to the principal and surety on the bond of the head of that state department contained in Ga. L. 1964, p. 282, § 1 was no longer applicable and the historical rules of liability would in that event apply to the department head and surety. 1973 Op. Att'y Gen. No. 73-87.

RESEARCH REFERENCES

Am. Jur. 2d.

- 63C Am. Jur. 2d, Public Officers and Employees, §§ 351 et seq., 363, et seq.

C.J.S.

- 67 C.J.S., Officers and Public Employees, § 486.

ALR.

- Liability of public officer or his bond for loss of public funds due to insolvency of bank in which they were deposited, 93 A.L.R. 819; 155 A.L.R. 436.

Constitutionality of statutes relieving officer or public depository, or his surety, from liability for loss of public funds, 96 A.L.R. 295.


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