Special Revolving Funds for Performance Surety Deposits
Accounting Policies and Procedures, Special Funds
performance surety deposits license permit approval authorization contract condition work satisfactory completion default forfeiture by-law ordinance rule regulation cash surety bond performance bond escrow account financial guarantee standby letters of credit negotiable bonds or securities insurance policy
44:53G 1/2 44:53G½ acts 2016 218:92
This Informational Guideline Release (IGR) informs local officials about a new statute, G.L. c. 44, § 53G½, which was added by the 2016 Municipal Modernization Act to let cities and towns establish special Performance Surety Deposit Revolving Funds for cash or other financial surety they require to secure satisfactory performance of obligations under a municipal contract or as a condition of the issuance of a municipal license, permit, approval or authorization. The IGR also describes the local procedures required to implement surety revolving funds through by-laws, ordinances, rules or regulations and to account for the deposits.