Policy
FIACCT 19-03_00 Bank Accounts – Deposits in Lieu of Surety Bonds & Similar Accounts
Effective: April 1, 2002
Revised:
Purpose
This policy outlines policies and procedures for deposits in lieu of surety bonds and similar accounts.
Definitions
Deposits in Lieu of Surety
Bonds & Similar Accounts
Bank accounts or time certificates of deposit that are controlled by a state agency in the name of both the state agency and a private individual or corporation. Deposits in lieu of Surety Bonds are opened in lieu of posting a surety bond as required by statute or for other similar purposes. Because these deposits are not state bank accounts, State Treasurer approval is not required.
Policy
A. The agency is responsible for opening, closing, and maintaining a list of all deposit accounts in lieu of surety bonds and similar accounts.
B. When opening the account, the agency shall use the individual or corporation’s Tax ID number on the account, not the state’s Tax ID number. This will ensure that any interest income will be properly reported to the IRS under the correct Tax ID.
C. Questions regarding opening this type of account or the appropriate Tax ID number to use should be directed to the Chief Deputy State Treasurer at 801-538-1042.
D. Contact the Division of Finance’s Manager of Financial Transactions at 801-537-9016 to determine if the account should be recorded in FINET.