§ 38.2-2404. Limit when penalty of bond exceeds actual exposure to risk
When the penalty of a suretyship obligation exceeds (i) the amount of a judgment described on the obligation as appealed from and secured by the obligation, (ii) the amount of the subject matter in controversy, or (iii) the amount of the estate held in trust by the person acting in a fiduciary capacity, the bond may be executed by any fidelity and surety insurer if the actual amount of the judgment or the subject matter in controversy or estate not subject to supervision or control of the surety is not in excess of the limitation specified in § 38.2-208. When the penalty of a suretyship obligation executed for the performance of a contract exceeds the contract price, the contract price shall be taken as the basis for estimating the limit of risk specified in § 38.2-208.
(1952, c. 317, § 38.1-642; 1986, c. 562.)
Sections: Previous 38.2-2400 38.2-2401 38.2-2402 38.2-2403 38.2-2404 38.2-2405 38.2-2406 38.2-2407 38.2-2408 38.2-2409 38.2-2410 38.2-2411 38.2-2412 38.2-2412.1 38.2-2412.2 NextLast modified: April 16, 2009