(a) The board of a state trust company shall require protection and indemnity for clients in reasonable amounts established by regulations adopted under this chapter, against dishonesty, fraud, defalcation, forgery, theft, and other similar insurable losses, with corporate insurance or surety companies:
(1) Authorized to do business in this state; or
(2) Acceptable to the Bank Commissioner and otherwise lawfully permitted to issue the coverage against those losses in this state.
(b) Except as otherwise provided by regulation, coverage required under subsection (a) of this section must include each director, officer and employee of the state trust company without regard to whether the person receives salary or other compensation.
(c) A state trust company may apply to the commissioner for permission to eliminate the bonding requirement of this section for a particular individual. The commissioner shall approve the application if the commissioner finds that the bonding requirement is unnecessary or burdensome. Unless the application presents novel or unusual questions, the commissioner shall approve the application or set the application for hearing not later than sixty (60) days after the date the commissioner considers the application complete and accepted for filing.
Section: Previous 23-51-141 23-51-142 23-51-143 23-51-144 23-51-145 23-51-146 23-51-147 23-51-148 23-51-149 23-51-150 23-51-151 23-51-152 23-51-153 23-51-154 23-51-155 NextLast modified: November 15, 2016