Whenever, in the judgment of the board of education of any county the amount of the bond of the superintendent of education or of the chief school financial officer is greater than is necessary, the board of education may reduce the amount of the bond, but not below the minimum fixed by this chapter. A resolution to that effect shall be adopted by the board and spread upon its minutes and a certified copy thereof served upon all of the obligors in the bond. The liability of the obligors under the bond reduced for any breach occurring after the reduction shall not exceed the amount of the bond as reduced. In event of the reduction, the obligors shall refund to the board of education the pro rata net unearned premium on the amount of the reduction.
Structure Code of Alabama
Title 11 - Counties and Municipal Corporations.
Title 1 - Provisions Applicable to Counties Only.
Chapter 2 - Bonds of County Officers, Employees, etc., Generally.
Article 1 - General Provisions.
Section 11-2-1 - Bonds Requirements.
Section 11-2-2 - Conditions of Bonds; Provisions of Law Governing Bonds.
Section 11-2-3 - Filing and Recordation of Bonds of County Officers and Employees.
Section 11-2-4 - Payment of Premiums on Bonds.
Section 11-2-5 - Reduction of Bonds.
Section 11-2-6 - Bonds to Be Made by Surety or Guaranty Companies; Time for Filing; Expiration.