Q: When can a school district cancel a warrant?
A: MCA 20-9-223 allows cancellation of a warrant outstanding (unredeemed) after 1 year. However, the obligation represented by the warrant continues for 8 years under MCA 27-2-202.
Q: When can a school district issue a replacement warrant?
A: A school district can issue a replacement warrant anytime after the payee files an indemnity bond with the school district clerk. If the warrant has been cancelled and the obligation has not lapsed under MCA 27-2-202 (i.e., 8 yrs), MCA 20-9-223, allows the district to issue a replacement warrant without getting an indemnity bond from the payee.
Q: How long must districts retain cleared warrants?
A: Although MCA 20-9-215 requires retention for 5 years, the statute of limitations involving written contracts under 27-2-202 requires 8 years. Accordingly, the Montana Department of Commerce set the official record retention schedule for school district warrants to be 8 years past the date of issuance. School district warrants are normally kept on file with the county clerk and recorder.
OPI Contact: Rebecca Phillips at (406) 444-0783 or email email@example.com
3rd of February, 2010