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When a peace officer receives a cash bond, the appropriate action is to deposit it with the custodian of the funds of the court. This requirement ensures that the funds are properly managed and safeguarded within the judicial system. By depositing the cash bond, it becomes part of the official financial records and is handled in accordance with established legal and administrative procedures.

The custodial management of cash bonds also allows for the proper tracking of funds that may be claimed later by defendants or used to fulfill court obligations. This ensures transparency, accountability, and adherence to regulations governing financial transactions within the court system.

In this context, retaining the bond or returning it to the issuer without following the prescribed legal process would fail to uphold the necessary protocol for handling such funds, which is why the options suggesting those actions do not align with legal requirements. Similarly, disregarding the bond if it is not needed undermines the importance of proper financial management and legal compliance.