Bonds

NMSA 1978 ch. 10, art. 2

in effect

NMSA 1978, § 10-2-1 [Sureties on bonds; qualifications.]

10-2-1. [Sureties on bonds; qualifications.] No bond of any public officer of this state executed by any individual, or firm as surety, shall be accepted or approved unless the persons or firm executing the same shall be the owners of unencumbered real estate or personal property in this state to an amount equal to the amount for which they respectively qualify on such bonds. Laws 1909, ch. 122, § 2; Code 1915, § 511; C.S. 1929, § 17-107; 1941 Comp., § 10-201; 1953 Comp., § 5-2-1.

NMSA 1978, § 10-2-2 [County or district officer not to be surety for another official.]

10-2-2. [County or district officer not to be surety for another official.] No county or district officer shall be in future surety on the official bond of another county officer, and no such officer who shall be required to give bond shall be considered as qualified, if any other of the officers above mentioned shall give such bond. Laws 1882, ch. 34, § 1; C.L. 1884, § 501; C.L. 1897, § 843; Code 1915, § 512; C.S. 1929, § 17-108; 1941 Comp., § 10-202; 1953 Comp., § 5-2-2.

NMSA 1978, § 10-2-3 [State and county officers prohibited from being sureties.]

10-2-3. [State and county officers prohibited from being sureties.] It shall be unlawful for any state or county officer who is required by law to give official bonds to sign any bond or become surety for any other person or persons during the term for which he is required to give official bonds for himself. Laws 1903, ch. 57, § 1; Code 1915, § 513; C.S. 1929, § 17-109; 1941 Comp., § 10-203; 1953 Comp., § 5-2-3.

NMSA 1978, § 10-2-4 [Public officer becoming surety; misdemeanor in office.]

10-2-4. [Public officer becoming surety; misdemeanor in office.] Any violation of the preceding section [10-2-3 NMSA 1978] shall constitute a misdemeanor in office. Laws 1903, ch. 57, § 2; 1905, ch. 85, § 1; Code 1915, § 514; C.S. 1929, § 17-110; 1941 Comp., § 10-204; 1953 Comp., § 5-2-4.

NMSA 1978, § 10-2-5 [Recording of bonds required.]

10-2-5. [Recording of bonds required.] The bonds given by all persons elected or appointed to office in this state shall be recorded. Laws 1893, ch. 56, § 1; C.L. 1897, § 3187; Code 1915, § 515; C.S. 1929, § 17-111; 1941 Comp., § 10-205; 1953 Comp., § 5-2-5.

NMSA 1978, § 10-2-6 [Record of official bonds of state and district officers.]

10-2-6. [Record of official bonds of state and district officers.] The bonds of all state and district officers shall be recorded in a record book to be provided for that purpose, and known as the record of official bonds, in the office of the secretary of state. Laws 1893, ch. 56, § 2; C.L. 1897, § 3188; Code 1915, § 516; C.S. 1929, § 17-112; 1941 Comp., § 10-206; 1953 Comp., § 5-2-6.

NMSA 1978, § 10-2-7 [Filing of bonds by officials of state and state agencies.]

10-2-7. [Filing of bonds by officials of state and state agencies.] The bonds of all state officials, and of the members of all state boards and institutions, after having been recorded as required by law, shall be filed and kept in the office of the secretary of state; and all state bonds now filed elsewhere shall be transferred to the office of the secretary. Laws 1905, ch. 59, § 1; Code 1915, § 517; C.S. 1929, § 17-113; 1941 Comp., § 10-207; 1953 Comp., § 5-2-7.

NMSA 1978, § 10-2-8 County and precinct officers; recording and filing bonds

10-2-8. County and precinct officers; recording and filing bonds The bonds of all county officers and constables shall be recorded in the office of the county clerk in a book designated as the record of official bonds. After having been recorded, the bonds shall be filed and kept in the office of the county clerk. Laws 1893, ch. 56, § 3; C.L. 1897, § 3189; Code 1915, § 518; C.S. 1929, § 17-114; 1941 Comp., § 10-208; 1953 Comp., § 5-2-8; Laws 1967, ch. 238, § 2.

NMSA 1978, § 10-2-9 [Recording as prerequisite to discharging duties of office.]

10-2-9. [Recording as prerequisite to discharging duties of office.] Each and every person who may hereafter be elected or appointed to office in this state, required by law to give bond, shall file the same for record before entering upon the discharge of the duties of the office. Laws 1893, ch. 56, § 5; C.L. 1897, § 3190; Code 1915, § 519; C.S. 1929, § 17-115; 1941 Comp., § 10-209; 1953 Comp., § 5-2-9.

NMSA 1978, § 10-2-10 [Action on bond; use of certified copy.]

10-2-10. [Action on bond; use of certified copy.] In all actions at law upon the bond of any officer in this state wherein the original bond of such officer cannot be produced in court, the certified copy thereof, under the seal of the officer making the record, shall be received by any court for the same uses and purposes as the original bond; and any judgment rendered and execution issued against the principal and sureties therein shall be as valid and binding and of as full force and effect as if the original bond had been produced in court in said action at law. Laws 1893, ch. 56, § 6; C.L. 1897, § 3191; Code 1915, § 520; C.S. 1929, § 17-116; 1941 Comp., § 10-210; 1953 Comp., § 5-2-10.

NMSA 1978, § 10-2-11 [Recording fees; payment by officer.]

10-2-11. [Recording fees; payment by officer.] The county clerk of each of the several counties shall be entitled to a fee of two dollars and fifty cents ($2.50) for filing and recording each bond of a county officer, and one dollar [($1.00)] for filing and recording each bond of a precinct officer; the fees for such filing and record to be paid by the officer filing the same, at the time of such filing. Laws 1893, ch. 56, § 7; C.L. 1897, § 3192; Code 1915, § 521; C.S. 1929, § 17-117; 1941 Comp., § 10-211; 1953 Comp., § 5-2-11.

NMSA 1978, § 10-2-12 [Insufficient bond of county or precinct officer; new bond required; failure to provide; procedure; decree of vacancy by district court.]

10-2-12. [Insufficient bond of county or precinct officer; new bond required; failure to provide; procedure; decree of vacancy by district court.] It shall be the duty of the board of county commissioners of each county at each regular meeting thereof on the first day of each meeting to examine and inquire into the sufficiency of all the official bonds given or to be given by any county or precinct officer as required by law, and if it shall appear that any one or more of the securities on the official bond of any county officer has or have removed from the county, died, or become insolvent, or of doubtful solvency, the said board of county commissioners shall cause such county or precinct officer to be summoned to appear before the said board on a day to be named in said summons, to show cause why he should not be required to give a new bond with sufficient security, and if at the appointed time he shall fail to satisfy said board as to the sufficiency of the present security, an order shall be entered of record by said board requiring such county or precinct officer, to file in the office of the county clerk within twenty days, a new bond to be approved as required by law, unless the number and pecuniary ability of other securities on said bond shall be such as to satisfy the board that the bond is sufficient, notwithstanding one or more of the securities on said bond may have removed, be dead, insolvent or of doubtful solvency, in which case the bond in question may be, in the discretion of the board, held sufficient. In the event any such bond is found insufficient, and a new bond is not filed as ordered, the fact shall be certified by the board of county commissioners to the district court of the county, and shall also be certified to the district attorney of the judicial district wherein such county is located; and it shall thereupon become the duty of the district attorney to cause a hearing to be had in said district court for the purpose of adjudicating and declaring a vacancy in such office, in the event the district court determines, after a hearing, that the bond is in fact insufficient, and such officer fails within five days after the district court has so found to file a new bond with sufficient surety as required by law. Upon the entry of such decree of vacancy it shall thereupon become the duty of the appointing power to fill such office in the manner provided by law. Laws 1876, ch. 1, § 37; C.L. 1884, § 368; C.L. 1897, § 687; Code 1915, § 1213; C.S. 1929, § 33-4227; Laws 1939, ch. 57, § 1; 1941 Comp., § 10-212; 1953 Comp., § 5-2-12.

NMSA 1978, § 10-2-13 Short title

10-2-13. Short title Sections 10-2-13 through 10-2-16 NMSA 1978 may be cited as the "Surety Bond Act". 1953 Comp., § 5-2-13, enacted by Laws 1978, ch. 132, § 1.

NMSA 1978, § 10-2-14 Definitions

10-2-14. Definitions As used in the Surety Bond Act [10-2-13 to 10-2-16 NMSA 1978]: A. "department" means the general services department; B. "director" means the director of the risk management division of the department; C. "employee" means any officer or employee of the state, including elected or appointed officials and persons acting on behalf or in service of a state agency in any official capacity whether with or without compensation, but the term does not include an independent contractor; D. "secretary" means the secretary of general services; E. "state agency" means the state or any of its branches, agencies, departments, boards, instrumentalities or institutions; F. "surety bond coverage" means: (1) a schedule or blanket corporate surety bond payable to the state and conditioned on the faithful performance of the duties of each employee during his employment or term of office or until his successor is elected or appointed and is qualified and on a proper accounting for all money and property in his official capacity as a state employee; or (2) a certificate of surety bond coverage issued by the director covering all or any part of the risk set forth in Paragraph (1) of this subsection; and G. "covered educational entity" means a school district as defined in Section 22-1-2 NMSA 1978 or an educational institution established pursuant to Chapter 21, Article 13, 16 or 17 [repealed] NMSA 1978 which requests and is granted surety bond coverage from the risk management division of the general services department, if the coverage is commercially unavailable; except that coverage shall be provided to a school district only through the public school group insurance authority or its successor unless the district has been granted a waiver by the authority or the authority is not offering the coverage for the fiscal year for which the division offers its coverage. A local school district to which the division may provide coverage may provide for marketing and servicing to be done by licensed insurance agents who shall receive reasonable compensation for their services. 1953 Comp., § 5-2-14, enacted by Laws 1978, ch. 132, § 2; 1984, ch. 49, § 1; 1986, ch. 102, § 1.

NMSA 1978, § 10-2-15 Surety bond coverage

10-2-15. Surety bond coverage A. The department shall provide surety bond coverage for all employees. Whenever an employee is required by another law to post bond or surety as a prerequisite to entering employment or assuming office, the requirement is met when coverage is provided for the office or position under the provisions of the Surety Bond Act [10-2-13 to 10-2-16 NMSA 1978]. Notwithstanding any other provisions of law, no state agency or employee shall purchase any employee surety bond other than pursuant to the provisions of the Surety Bond Act. B. The secretary shall prescribe the amount of surety bond coverage by class of employee. C. All or any part of the amount of surety bond coverage prescribed by the secretary may be covered by a schedule or blanket corporate surety bond. D. The department may provide coverage for employees of covered educational entities through insurance, self-insurance or a combination thereof. 1953 Comp., § 5-2-15, enacted by Laws 1978, ch. 132, § 3; 1986, ch. 102, § 2.

NMSA 1978, § 10-2-16 Surety bond fund

10-2-16. Surety bond fund A. There is created in the state treasury a "surety bond fund". B. Money deposited in the surety bond fund may be expended by the department: (1) to provide surety bond coverage; (2) to create a retention fund to cover all or any portion of the surety bond risks of state agencies and covered educational entities; (3) to pay claims of state agencies and covered educational entities covered by a surety bond certificate of coverage issued by the department; and (4) to pay any costs and expenses of carrying out the provisions of this section. C. Claims against the surety bond fund shall be made in accordance with a certificate of coverage issued by the department to each state agency and covered educational entity. If the secretary has reason to believe that the surety bond fund would be exhausted by the payment of all claims allowed against the fund during a particular state fiscal year, the amounts paid for each claim shall be prorated with each state agency and covered educational entity receiving an amount equal to the percentage that its claims bear to the total of claims outstanding and payable from the fund. Any amounts due and unpaid as a result of such proration shall be paid in the following fiscal years. D. The department shall collect or transfer funds from each state agency and covered educational entity to cover costs of coverage of employees of the agency as required by this section. Money collected or transferred from a state agency or covered educational entity pursuant to this subsection shall be deposited in the surety bond fund. Income from the surety bond fund shall be credited to the fund. E. The department may provide individual surety bond coverage protecting employees who are employers or supervisors from personal losses for which they may be responsible, which losses were caused by the lack of honesty or faithful performance of employees under their supervision or control. F. The department shall have the right to recover from a public employee for any loss under the Surety Bond Act [10-2-13 to 10-2-16 NMSA 1978] for which the public employee was responsible. G. The risk management advisory board shall review: (1) specifications for all surety bond coverage to be purchased by the department; (2) the form and legal sufficiency of any surety bond coverage to be purchased by the department; and (3) the form, purpose and content of any surety bond certificate of coverage to be issued by the director. 1953 Comp., § 5-2-16, enacted by Laws 1978, ch. 132, § 4; 1986, ch. 102, § 3; 1989, ch. 324, § 4; 1996 (1st S.S.), ch. 3, § 2; 2000, ch. 27, § 1.

Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18510/index.doFetched: 10/20/2026