30-191. Indemnity or performance bonds as
security; collateral security in lieu of bond


A. Operating units may execute and deliver indemnity or performance bonds as
required by the United States or the state as security or assurance for performance of or
indemnity for liability under any contract made with them or either of them.


B. The operating units may at their election establish, tender and deliver
collateral security in lieu of the indemnity or performance bond required. The amount or
penalty of any indemnity or performance bond or pledge shall be the amount determined by
the pledgee as sufficient for and proportionate to any contract undertaking involved.


C. The bond or pledge shall be in appropriate and effective form as the
circumstances require. The pledge may consist of:


1. An uncommitted or unencumbered fund on hand or to be received or to be
thereafter created.


2. Proceeds of any uncommitted or unencumbered district assessment.


3. Income or proceeds from any district, state agency or municipal operation not
otherwise committed or encumbered.


4. Revenue bonds.


5. Real or personal property.


6. Any other valuable right or thing satisfactory to the pledgees or either of
them.