7-7-14. Bonding of directors, officers, employees and collection agents.
Each director, officer, and employee of an association shall, before entering upon the
performance of any duty, execute an individual bond with adequate corporate surety payable to
the association as an indemnity for any loss the association may sustain of money or other
property by or through any fraud, dishonesty, forgery or alteration, larceny, theft, embezzlement,
robbery, burglary, hold-up, wrongful or unlawful abstraction, misapplication, misplacement,
destruction or misappropriation, or any other dishonest or criminal act or omission by the director,
officer, employee, or agent. An association which employs collection agents, who for any reason
are not covered by a bond as hereinabove required, shall provide for the bonding of each such
agent in an amount equal to at least twice the average monthly collection of the agent. No bond
coverage will be required of any agent which is a financial institution insured by the Federal
Deposit Insurance Corporation or other federal deposit insurance agency. In lieu of individual
bonds, a blanket bond, protecting the association from loss through any such act or acts on the
part of any such director, officer, or employee, may be obtained. A true copy of every such
indemnity bond shall be on file at all times with the supervisor. Each bond shall provide that a
cancellation of the bond either by the surety or by the insured shall not become effective unless
and until 10 days notice in writing first has been given to the supervisor, unless he has approved
the cancellation earlier.
Amended by Chapter 200, 1994 General Session
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Last revised: Thursday, May 28, 2009