(a) An associationshall maintain a blanket indemnity bond of at least a minimum amount asprescribed by the Commissioner of Banks.
(b) An associationwhich employs collection agents, who for any reason are not covered by the bondas hereinabove required, shall provide for the bonding of each such agent in anamount equal to at least twice the average monthly collections of such agent.Such agents shall be required to make settlement with the association at leastonce monthly. No such coverage by bond will be required of any agent which is afederally insured depository institution. The amount and form of such bonds andthe sufficiency of the surety thereon shall be approved by the board ofdirectors and the Commissioner of Banks before such is valid. All such bondsshall provide that a cancellation thereof either by the surety or by theinsured shall not become effective unless and until 30 days' notice in writingshall have been given to the Commissioner of Banks.
(c) The Commissioner ofBanks may require every member of the board of directors, officer or employeeof an association who shall knowingly make, approve, participate in, or assentto, or who knowingly shall permit any of the officers or agents of theassociation to make investments not authorized by this Chapter, to deposit withthe association an indemnity bond, insurance or collateral of a kind and amountsufficient to indemnify the association against damage which the association orits members or stockholders sustain in consequence of such unauthorizedinvestment.
(d) The amountconsidered sufficient to indemnify the association shall, in the case of anunauthorized loan, be the difference between the book value of the loan and theamount that could legally have been made under the provisions of this Chapter.The amount considered sufficient to indemnify the association shall, in thecase of an unauthorized other investment, be the difference between the bookvalue and the market value of the investment at the time when the Commissionerof Banks makes his determination that such investment is unauthorized. Wheneveran unauthorized investment has been sold or disposed of without recourse, theCommissioner of Banks shall release such part of the indemnity as remains afterdeducting any loss, which amount shall be retained by the association. Wheneverthe balance of an unauthorized loan has been reduced to an amount which wouldpermit such loan to be made in compliance with the provisions of this Chapter,the indemnity shall be released. The Commissioner of Banks, in making suchdetermination may require an independent appraisal of the security.
(e) The Commissioner ofBanks shall cause to be examined annually all such bonds and pass on theirsufficiency and either the board of directors or the Commissioner of Banks mayrequire new or additional bonds at any time.
(f) The Commissionerof Banks is empowered to promulgate rules and regulations with respect tolitigation expenses and other indemnity matters. (1981, c. 282, s. 3; 1989(Reg. Sess., 1990), c. 806, s. 8; 2001‑193, s. 16.)
(a) An associationshall maintain a blanket indemnity bond of at least a minimum amount asprescribed by the Commissioner of Banks.
(b) An associationwhich employs collection agents, who for any reason are not covered by the bondas hereinabove required, shall provide for the bonding of each such agent in anamount equal to at least twice the average monthly collections of such agent.Such agents shall be required to make settlement with the association at leastonce monthly. No such coverage by bond will be required of any agent which is afederally insured depository institution. The amount and form of such bonds andthe sufficiency of the surety thereon shall be approved by the board ofdirectors and the Commissioner of Banks before such is valid. All such bondsshall provide that a cancellation thereof either by the surety or by theinsured shall not become effective unless and until 30 days' notice in writingshall have been given to the Commissioner of Banks.
(c) The Commissioner ofBanks may require every member of the board of directors, officer or employeeof an association who shall knowingly make, approve, participate in, or assentto, or who knowingly shall permit any of the officers or agents of theassociation to make investments not authorized by this Chapter, to deposit withthe association an indemnity bond, insurance or collateral of a kind and amountsufficient to indemnify the association against damage which the association orits members or stockholders sustain in consequence of such unauthorizedinvestment.
(d) The amountconsidered sufficient to indemnify the association shall, in the case of anunauthorized loan, be the difference between the book value of the loan and theamount that could legally have been made under the provisions of this Chapter.The amount considered sufficient to indemnify the association shall, in thecase of an unauthorized other investment, be the difference between the bookvalue and the market value of the investment at the time when the Commissionerof Banks makes his determination that such investment is unauthorized. Wheneveran unauthorized investment has been sold or disposed of without recourse, theCommissioner of Banks shall release such part of the indemnity as remains afterdeducting any loss, which amount shall be retained by the association. Wheneverthe balance of an unauthorized loan has been reduced to an amount which wouldpermit such loan to be made in compliance with the provisions of this Chapter,the indemnity shall be released. The Commissioner of Banks, in making suchdetermination may require an independent appraisal of the security.
(e) The Commissioner ofBanks shall cause to be examined annually all such bonds and pass on theirsufficiency and either the board of directors or the Commissioner of Banks mayrequire new or additional bonds at any time.
(f) The Commissionerof Banks is empowered to promulgate rules and regulations with respect tolitigation expenses and other indemnity matters. (1981, c. 282, s. 3; 1989(Reg. Sess., 1990), c. 806, s. 8; 2001‑193, s. 16.)
(a) An associationshall maintain a blanket indemnity bond of at least a minimum amount asprescribed by the Commissioner of Banks.
(b) An associationwhich employs collection agents, who for any reason are not covered by the bondas hereinabove required, shall provide for the bonding of each such agent in anamount equal to at least twice the average monthly collections of such agent.Such agents shall be required to make settlement with the association at leastonce monthly. No such coverage by bond will be required of any agent which is afederally insured depository institution. The amount and form of such bonds andthe sufficiency of the surety thereon shall be approved by the board ofdirectors and the Commissioner of Banks before such is valid. All such bondsshall provide that a cancellation thereof either by the surety or by theinsured shall not become effective unless and until 30 days' notice in writingshall have been given to the Commissioner of Banks.
(c) The Commissioner ofBanks may require every member of the board of directors, officer or employeeof an association who shall knowingly make, approve, participate in, or assentto, or who knowingly shall permit any of the officers or agents of theassociation to make investments not authorized by this Chapter, to deposit withthe association an indemnity bond, insurance or collateral of a kind and amountsufficient to indemnify the association against damage which the association orits members or stockholders sustain in consequence of such unauthorizedinvestment.
(d) The amountconsidered sufficient to indemnify the association shall, in the case of anunauthorized loan, be the difference between the book value of the loan and theamount that could legally have been made under the provisions of this Chapter.The amount considered sufficient to indemnify the association shall, in thecase of an unauthorized other investment, be the difference between the bookvalue and the market value of the investment at the time when the Commissionerof Banks makes his determination that such investment is unauthorized. Wheneveran unauthorized investment has been sold or disposed of without recourse, theCommissioner of Banks shall release such part of the indemnity as remains afterdeducting any loss, which amount shall be retained by the association. Wheneverthe balance of an unauthorized loan has been reduced to an amount which wouldpermit such loan to be made in compliance with the provisions of this Chapter,the indemnity shall be released. The Commissioner of Banks, in making suchdetermination may require an independent appraisal of the security.
(e) The Commissioner ofBanks shall cause to be examined annually all such bonds and pass on theirsufficiency and either the board of directors or the Commissioner of Banks mayrequire new or additional bonds at any time.
(f) The Commissionerof Banks is empowered to promulgate rules and regulations with respect tolitigation expenses and other indemnity matters. (1981, c. 282, s. 3; 1989(Reg. Sess., 1990), c. 806, s. 8; 2001‑193, s. 16.)
