Public Act 93-0291

SB1382 Enrolled                      LRB093 04039 MKM 04078 b

    AN ACT in relation to municipalities.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  5.   The Official Bond Payment Act is amended by
changing Section 1 as follows:

    (5 ILCS 270/1) (from Ch. 103, par. 16)
    Sec. 1.  The State or any county, township, municipality,
or public board or body, whether organized under  general  or
special  Act,  shall  pay  out  of  its funds the cost of any
official bond furnished by any officer of the State,  county,
township,  municipality,  or public board or body required by
its laws, rules, or regulations to execute the  bond  if  the
officer furnishes the bond with a surety company or companies
authorized  to  do  business  in this State under the laws of
this State and, if the surety on any  official  bond  is  not
such  a  surety  company  or  companies,  the  State, county,
township, municipality, or public board or body shall pay out
of its funds the cost of any bond or bonds  indemnifying  the
surety  against  liability  on  the  official bond. The total
amount of the indemnity,  however,  must  correspond  to  the
total  obligation of the surety on the official bond, and the
indemnitor or indemnitors must  be  a  company  or  companies
authorized   by  the  laws  of  this  State  to  execute  the
indemnifying bond or bonds.  A county  that  has  elected  to
self-insure under Section 9-103 of the Local Governmental and
Governmental  Employees  Tort  Immunity Act may also elect to
self-insure with respect to official bonds and  shall,  thus,
satisfy  the requirements of this Section. A township located
in a county with the township form of government and  a  road
district  comprised of that township may jointly obtain, from
a risk management  pool  of  townships,  any  official  bonds
required  by  law to be furnished by officers of the township
or road district. A road district located in a county without
the township form of  government  may  obtain,  from  a  risk
management pool of townships and road districts, any official
bonds required by law to be furnished by officers of the road
district.   A municipality may obtain, from a risk management
pool of municipalities, any official bonds required by law to
be furnished by officers of the municipality.
(Source: P.A. 87-738; 88-360.)

    Section 99. Effective date.  This  Act  takes  effect  on
January 1, 2004.