{"data":{"id":"us-id/idaho-code-54-1926a","jurisdiction":"us-id","citation":"Idaho Code § 54-1926A","heading":"Use of government obligations instead of surety bonds.","body":"(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:\n(1) Be given to the official having authority to approve the surety bond, or its authorized custodian;\n(2) Be in an amount equal at fair market value to the penal sum of the required surety bond; and\n(3) Authorize the official receiving the obligation to collect or sell the obligation if the person defaults on a required condition.\n(b) (1) An official receiving a government obligation under subsection (a) of this section may deposit it with:\n1. The state treasurer;\n2. A national or state chartered bank; or\n3. A depository designated by the state treasurer.\n(2) The state treasurer, bank, or depository shall issue a safekeeping receipt that describes the obligation deposited.\n(c) Using a government obligation instead of a surety bond for security is the same as using:\n(1) A corporate surety bond;\n(2) A certified check;\n(3) A bank draft;\n(4) A post office money order; or\n(5) Cash.\n(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:\n(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;\n(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.\n(e) The provisions of this section do not affect the:\n(1) Priority of a claim of the contracting body against a government obligation given under this section;\n(2) Right or remedy of the contracting body for default on an obligation provided under this section;\n(3) Authority of a court over a government obligation given as security in a civil action; and\n(4) Authority of an official of the state of Idaho authorized by another law to receive a government obligation as security.\n(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.","path":["TITLE 54 PROFESSIONS, VOCATIONS, AND BUSINESSES","CHAPTER 19 PUBLIC WORKS CONTRACTORS"],"source_url":"https://legislature.idaho.gov/statutesrules/idstat/title54/t54ch19/sect54-1926a/","current_through":"2026 Legislative Session","vintage":"","retrieved_at":"2026-09-04T11:22:54Z","sha256":"2537e06ccf2edb852842a46c78dc27d3ea208109505e686ba5ef70020dbd0faf","source_id":"us-id","stale":false,"prev":"us-id/idaho-code-54-1926","next":"us-id/idaho-code-54-1927"},"notice":"GroundRules: Original legal text. Not legal advice."}