Public Official Bonds

A public official is expected to uphold its position ethically. Many public officials deal with money or sensitive information. It is important to make sure that people in positions of power do not abuse their authority or act in a way that can threaten the public.

Public official bonds help to ensure that public officials do not abuse their positions. These bonds guarantee honest conduct and faithful performance by those appointed or elected to a position. This is a type of surety bond meant to protect the public from any unethical conduct by public officials like treasurers, notary public, commissioners, law enforcement officers, and town clerks.

The Bond

The bond is usually part of the official’s employment criteria. It requires them to pay a fixed amount if they fail to perform their duty ethically. There are three parties in a public official bond:

Principal – The party that buys the bond, which is the public official.

Obligee – The government or state that requires the bond,

Surety – The bonding company that issues the bond.

Two types of public official bonds

There are two main types of public official bonds: a fidelity bond and a faithful performance bond. A fidelity bond is meant to ensure the honesty of the official. An official must reimburse the other party if he or she is found being dishonest or indulging in misconduct. A faithful performance bond ensures that the official will perform his or her duties ethically. Some bonds may have other guidelines; however, this is the standard for all public official bonds.

Public officials are often held accountable for their subordinates and deputies. In some cases, these subordinates and deputies could also be asked to secure bonds as well. Additionally, there could be a blanket bond in place that covers all members of an office.

Why do we need public official bonds?

To ensure trust in public offices: The public places a lot of trust in public offices, such as the mayor’s office. This type of bond ensures that the officials will follow the rules to ensure that there is no questionable activity going on in these offices.

To ensure faithful conduct: The bond ensures that officials and their subordinates act ethically while in their position.

To protect the government’s interests: Without a bond in place, the government could be negatively impacted in case someone in a public official position is found acting unethically.