What instrument must the treasurer obtain annually in the specified amount?

Prepare for the MCTA Treasurer Exam with our study resources. Utilize flashcards and multiple choice questions, each with hints and explanations. Excel in your MCTA Treasurer Exam!

Bonding the treasurer protects public funds by guaranteeing faithful performance of duties and providing recourse if funds are misused. Requiring an annual bond in a specified amount ensures ongoing protection against losses from misappropriation, errors, or negligence. That instrument is a bond issued by a surety company; it’s the formal guarantee that covers the government up to the stated amount. Insurance policies cover certain risks but not accountability for how funds are handled. A certificate of deposit holds funds; it does not provide a performance guarantee. A surety agreement is part of how bonds are arranged, but the official instrument used is the bond itself.