99-9946 Municipal CourtCmsdgeleE3elire
in The Salina Journal September 1999)
ORDINANCE NUMBER 99-9946
AN ORDINANCE AMENDING SECTION 23-22 OF THE SALINA CODE
PERTAINING TO BAIL BONDING LETTERS OF CREDIT, AND REPEALING THE
EXISTING SECTION.
follows:
BE IT ORDAINED by the Governing Body of the City of Salina, Kansas:
Section 1. That Section 23-22 of the Salina Code is hereby amended to read as
"Section 23-22. Bail Bond Company license; Irrevocable letter of
credit.
(a) The applicant shall use as security for issuing bail bonds a
bank issued irrevocable letter of credit in a form approved by the City
Clerk, with the following minimum requirements:
(1) Shall show the City of Salina as beneficiary.
(2) Shall have a minimum value of $10,000.
(3) Shall expire no sooner than March 31 following the
licensing period.
(4) Shall contain provisions that the lending agency must
give the City Clerk 30 days notice prior to cancellation.
(5) Shall contain provisions allowing the City of Salina to
collect on any open bonds the licensee may have should the
letter of credit not be renewed, as outlined in subsection (c)
below.
(b) If the City must make demand upon the letter of credit such
that the amount secured by the letter falls below ten thousand dollars
($10,000), the licensee shall have to provide to the City Clerk written
evidence from the issuing bank that credit of a minimum value of ten
thousand dollars ($10,000) has been restored. Until such time that the
letter of credit is restored, the bail bonding company shall be removed
from the bonding list and unable to write any new bonds.
(c) If the applicant has any open bonds and fails to renew the
letter of credit, whether or not the applicant is still operating as a bail
bonding company, the City shall, no sooner than one week prior to the
expiration of the letter of credit, collect on the letter of credit for the
amount of the open bonds and hold the funds as a cash bond. Any funds
not needed to pay forfeitures will be returned to the bonding company
once the bonding company has been released from any liability. Should a
company no longer desire to operate as a bail bonding company and not
wish to revoke any open bonds or have the City collect on the letter of
credit, a letter of credit may be given for the amount of the bonds still
open. Such reduced amount letter of credit shall not expire for a minimum
of 3 months. Should there still be open bonds upon its expiration, the
same procedures as outlined above wilf be followed."
Section 2. That all currently licensed bail bonding companies which currently have
a letter of credit with an expiration date prior to April 1 shall bring their letter of credit into
compliance at the time of renewal for their 2000 license.
Section 3. That the existing Section 23-22 of the Salina Code is hereby repealed.
Section 4. That this ordinance shall be in full force and effect from and after its
adoption and publication once in the official city newspaper.
Introduced: September 13, 1999
Passe Septe ber 20, 1999
{SEAL} 1d1t_r_*a
ATTE T: onte Shadwick, Mayor
arbar a R. Weber, Deputy City Clerk