35-155 - Arizona Statutes

35-155. Cash deposit as an alternative to a surety bond A. Any budget unit which requires a person to post a surety bond to guarantee the faithful performance of a legal obligation may accept, in lieu of the surety bond, a cash deposit in the form of cash or alternatives to cash. The budget unit may accept as an alternative to cash any of the following: 1. Certificates of deposit or investment certificates payable or assigned to the state treasurer issued by banks doing business in this state and insured by the federal deposit insurance corporation. 2. Certificates of deposit, investment certificates or share accounts payable or assigned to the state treasurer and issued by a savings and loan association doing business in this state and insured by the federal savings and loan insurance corporation. 3. Certificates of deposit, investment certificates or share accounts payable or assigned to the state treasurer and issued by a credit union doing business in this state and insured by the national credit union administration. B. The budget unit shall deposit the cash deposit received under this section with the state treasurer. The state treasurer shall hold the cash or alternatives to cash in the name of this state to guarantee the faithful performance of all legal obligations of the person required to post the bond. The person is entitled to receive any accrued interest earned from the alternatives to cash. The state treasurer may impose a fee to reimburse the state treasurer for administrative expenses. The fee shall not exceed ten dollars for each cash deposit. C. A person depositing cash in lieu of a surety bond may withdraw the deposit upon satisfactory performance of the legal obligation or upon replacing the cash deposit with a commercial surety bond. D. The budget unit and the state treasurer have no personal liability for the performance of duties relating to the cash deposits permitted by this section as long as those duties are performed in good faith. E. The state treasurer may prescribe rules relating to the terms and conditions of each type of security provided by this section.