Rule, 073031 PAAGO, AGO 18

• Case Date: July 30, 1931
• Court: Pennsylvania

Honorable James N. Rule, Superintendent of Public Instruction, Harrisburg, Pennsylvania. AGO 18 Opinion No. 18 Pennsylvania Attorney General Opinions Opinion of the Attorney General July 30, 1931          School Treasurers—School Depositories—Bonds—Substitution of Collateral Securities for Surety Bonds—School Code Sections S26 and 509.          School treasurers and school depositories may not post collateral securities In place of furnishing the bonds with sureties required by sections 326 and 509 of the School Code of 1911, P. L. 309.          Honorable James N. Rule,          Superintendent of Public Instruction,          Harrisburg, Pennsylvania.          Sir: You have asked to be advised whether treasurers of school districts and depositories of school funds may be permitted to post collateral security to insure faithful performance of their duties and protection of the public moneys, instead of furnishing bonds with individual or corporate sureties.          Section 326 of the School Code of May 18, 1911, P. L. 809, 24 P. S. 303, requires that:

“Every person elected treasurer of any school district * * * shall before entering upon the duties of his office furnish to the school district a proper bond, in such amount and with such surety or sureties as the board of school directors therein may approve, conditioned for the faithful performance of his duties as school treasurer. * * * "

         Section 509 of the Code, 24 P. S. 461, requires that before receiving any of the school funds, any depository selected by the directors: “*** shall furnish a proper bond, in such amount and with such surety or sureties as may be required, to be approved by the board of school directors, and conditioned upon the faithful keeping, paying out, and accounting for of all the school funds and property of said school district that may come into its hands * * *."          It is clear from the statutory provisions that treasurers and depositories must furnish bonds. The question, therefore, is whether they can qualify by giving their own bonds accompanied by a pledge of collateral security. May the statutory requirement of "surety or sureties" be construed to mean simply "security?" It is our opinion that it may not.

"In a broad sense a !surety' is one who becomes responsible for the debt, default, or miscarriage of another. But in a narrower sense a 'surety' is a person who binds himself for the payment of a sum of money, or for the performance of something

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