IL HB3523

Reduces the minimum penalty amount for school treasurer bonds from 25% to 10% of the treasurer's custodial assets, as measured on the final day of the school district's most recent fiscal year.

Allows school board to determine the bond penalty amount (at least 10%) rather than being automatically set at a fixed percentage, removing provisions for automatic increases and decreases based on asset changes.

Removes the requirement that treasurer bonds be secured by two or more individuals with real estate interests; allows bonds to be secured by either individual sureties or surety companies authorized to do business in Illinois.

Changes the duration of bonds issued for specific bond issues; the bond now remains in force until the funds are taken into account in determining the penalty amount for the general surety bond required by Section 8-2, rather than until funds are fully disbursed.

Applies changes to both general school treasurer bonds (Section 8-2) and bonds specifically issued for borrowed funds under the School Code (Section 19-6).