§ 6.1-194.20. Bonds of officers and employees
A. The directors of every savings institution shall require a bond with corporate surety from each of the active officers and employees of the institution as an indemnity for any loss the institution may sustain as a result of such person's fraud, dishonesty, theft or embezzlement. In lieu of individual bonds a blanket bond with corporate surety covering all active officers and employees of the institution may, with the approval of the board of directors, be obtained. The Commission shall, not less than twice during any period of three consecutive calendar years, examine all such bonds and pass on their sufficiency and either the board of directors or the Commission may require new or additional bonds at any time. The corporate surety shall have a license issued by the Commission.
If a savings institution determines that it is unable to obtain the surety bond coverage required by this section, it shall immediately notify the Commission, which shall forthwith investigate to determine whether such coverage is available to the institution. If the Commission determines, after such investigation, that such coverage is not reasonably available to the institution, the Commission shall not be required to close the institution solely because of the unavailability of such coverage, but may do so under § 6.1-194.83. If the institution is not closed because of the unavailability of such coverage, the Commission shall closely monitor the institution to ensure that such coverage is obtained as soon as possible, and shall take such further action under § 6.1-194.83 or § 6.1-194.84 as the Commission deems necessary.
B. The institution, at its cost, may also obtain insurance to protect its directors, officers and employees against lawsuits arising out of claims of negligence or misconduct.
(Code 1950, §§ 6-201.36, 6.1-166, 6.1-195.43; 1960, c. 402; 1966, c. 584; 1972, c. 796; 1979, c. 60; 1985, c. 425; 1986, c. 628.)
Sections: Previous 6.1-194.13 6.1-194.14 6.1-194.15 6.1-194.16 6.1-194.17 6.1-194.18 6.1-194.19 6.1-194.20 6.1-194.21 6.1-194.22 6.1-194.23 6.1-194.24 6.1-194.25 6.1-194.26 6.1-194.27 NextLast modified: April 16, 2009