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Municipal Technical Advisory Service (MTAS)

Original Author: Carrier, Angie
Date of Material: 02/09/2018

Insurance--Liability--Public officials

Bonding of Mayor and Town Recorder

Reviewed Date: 06/15/2021
MTAS responds to an inquiry regarding whether the mayor and town recorder must be bonded.

Dear City Official,

You have inquired as to whether the Mayor and Town Recorder are required to be bonded. Municipal official bond requirements are controlled by individual charters. The Town’s charter vaguely mentions the “recorder’s bond,” as to it being in the custody of the mayor. Staff has researched as to insurance coverage versus bond coverage and discovered there is a gap. The governing body should determine the amount of coverage weighing the risk with the fiduciary duties of the recorder. This may be something you would like to discuss with a insurance carrier that issues or provides this type of service. The bond should cover the faithful performance of the official. The purpose is to protect the taxpaying citizen. In the event the employee gets access to a citizen’s credit card information and makes fraudulent charges, the faithful performance bond would allow the citizen to file a claim against the bond to try to recover any money lost. The dishonesty policy coverage protects the assets of the City because of an employee’s dishonesty, not a third party.
Also by having an internal control policy, you can put those checks and balances in place to protect the Town’s assets. Please refer to the MTAS Internal Controls Toolkit for more information:
If you have any questions, please feel free to contact me at or 865-974-9063.

Thank you for allowing MTAS to assist you in this matter.

Angie Carrier
MTAS Municipal Management Consultant