(a) If a person is required under a law of the state of Idaho to give a surety bond, the person may give a government obligation, as defined in subsection (2)(h) of section 54-1901, Idaho Code. The government obligation shall:
(1)  Be given to the official having authority to approve the surety bond, or its authorized custodian;
(2)  Be in an amount equal at fair market value to the penal sum of the required surety bond; and
(3)  Authorize the official receiving the obligation to collect or sell the obligation if the person defaults on a required condition.
(b)  (1) An official receiving a government obligation under subsection (a) of this section may deposit it with:
1.  The state treasurer;
2.  A national or state chartered bank; or
3.  A depository designated by the state treasurer.
(2)  The state treasurer, bank, or depository shall issue a safekeeping receipt that describes the obligation deposited.
(c)  Using a government obligation instead of a surety bond for security is the same as using:
(1)  A corporate surety bond;
(2)  A certified check;
(3)  A bank draft;
(4)  A post office money order; or
(5)  Cash.

Terms Used In Idaho Code 54-1926A

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • person: includes a corporation as well as a natural person;
Idaho Code 73-114
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
    • (d)  When security is no longer required, a government obligation given instead of a surety bond shall be returned to the person giving the obligation. If a person supplying labor or material to a contractor defaulting under the public contracts bond act, sections 54-1925 through 54-1930, Idaho Code, files with the contracting body the application and affidavit provided under section 54-1927, Idaho Code, the contracting body:
    (1)  May return to the contractor the government obligation given as security or proceeds of the government obligation given under the public contracts bond act, sections 54-1925 through 54-1930, Idaho Code, only after the ninety (90) day period for bringing a civil action under section 54-1927, Idaho Code;
    (2)  Shall hold the government obligation or the proceeds subject to the order of the court having jurisdiction of the action if a civil action is brought in the ninety (90) day period.
    (e)  The provisions of this section do not affect the:
    (1)  Priority of a claim of the contracting body against a government obligation given under this section;
    (2)  Right or remedy of the contracting body for default on an obligation provided under this section;
    (3)  Authority of a court over a government obligation given as security in a civil action; and
    (4)  Authority of an official of the state of Idaho authorized by another law to receive a government obligation as security.
    (f)  To avoid frequent substitution of government obligations, the state treasurer may promulgate rules limiting the effect of the provisions of this section, to a government obligation maturing more than one (1) year after the date the obligation is given as security.