State Public Official Bond

The bond must be obtained and filed before taking office. Under Indiana Code 5-4-1-9, officials cannot legally assume their duties until the bond is properly filed. The bond must be approved by the designated approving authority (such as the city executive for most city officers), then filed with the County Recorder's office within 10 days of issuance or approval. A copy must also be uploaded with the State Board of Accounts Annual Financial Report.

Bond amounts vary by office and are calculated based on the office's fiscal receipts from the prior year. Minimum amounts are $5,000 for general employees, $15,000 for positions like city judges and clerks, and $30,000 for fiscal officers such as clerk-treasurers, controllers, county auditors, treasurers, and sheriffs. The standard formula is $30,000 per $1,000,000 in receipts, with a typical maximum of $300,000 (though the State Board of Accounts may approve higher amounts). Your specific bond amount is set by your local fiscal body or governing statute.

If an official breaches their duties (such as misconduct, negligence, failure to properly account for funds, or non-compliance with Indiana Code 5-11), the State of Indiana or affected parties can file a claim against the surety bond. The surety company will investigate the claim and, if valid, pay damages up to the bond amount to compensate for losses. The bonded official (principal) is then legally obligated to reimburse the surety company for the full amount paid out, plus any associated costs.