State Codes and Statutes

Statutes > California > Fin > 6200-6204

FINANCIAL CODE
SECTION 6200-6204



6200.  Except as provided in subdivision (b) of Section 6203, all
directors, officers, and employees of an association shall, before
entering upon the performance of any of their duties, execute their
individual bonds 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, or employee.




6201.  Associations that employ collection agents, who for any
reason are not covered by a bond required under Section 6200, shall
provide for the bonding of each of those agents in an amount equal to
at least twice the average monthly collection of the agent. The
agents shall be required to make settlement with the association at
least monthly.



6202.  No indemnity bond coverage is required of any agent that is a
financial institution insured by the Federal Deposit Insurance
Corporation.


6203.  (a) The amounts and form of indemnity bonds and sufficiency
of the surety shall be approved by the board of directors and by the
commissioner.
   (b) In lieu of individual bonds, a blanket bond, protecting the
association from loss through any act or acts of any director,
officer, employee or agent, may be obtained.
   (c) A true copy of every indemnity bond shall be on file at all
times at the association's home office.



6204.  Indemnity bonds shall provide that their cancellation either
by the surety or by the insured shall not become effective unless and
until 10 days' notice in writing first shall have been given to the
commissioner, unless the cancellation is approved earlier by the
commissioner.

State Codes and Statutes

Statutes > California > Fin > 6200-6204

FINANCIAL CODE
SECTION 6200-6204



6200.  Except as provided in subdivision (b) of Section 6203, all
directors, officers, and employees of an association shall, before
entering upon the performance of any of their duties, execute their
individual bonds 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, or employee.




6201.  Associations that employ collection agents, who for any
reason are not covered by a bond required under Section 6200, shall
provide for the bonding of each of those agents in an amount equal to
at least twice the average monthly collection of the agent. The
agents shall be required to make settlement with the association at
least monthly.



6202.  No indemnity bond coverage is required of any agent that is a
financial institution insured by the Federal Deposit Insurance
Corporation.


6203.  (a) The amounts and form of indemnity bonds and sufficiency
of the surety shall be approved by the board of directors and by the
commissioner.
   (b) In lieu of individual bonds, a blanket bond, protecting the
association from loss through any act or acts of any director,
officer, employee or agent, may be obtained.
   (c) A true copy of every indemnity bond shall be on file at all
times at the association's home office.



6204.  Indemnity bonds shall provide that their cancellation either
by the surety or by the insured shall not become effective unless and
until 10 days' notice in writing first shall have been given to the
commissioner, unless the cancellation is approved earlier by the
commissioner.


State Codes and Statutes

State Codes and Statutes

Statutes > California > Fin > 6200-6204

FINANCIAL CODE
SECTION 6200-6204



6200.  Except as provided in subdivision (b) of Section 6203, all
directors, officers, and employees of an association shall, before
entering upon the performance of any of their duties, execute their
individual bonds 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, or employee.




6201.  Associations that employ collection agents, who for any
reason are not covered by a bond required under Section 6200, shall
provide for the bonding of each of those agents in an amount equal to
at least twice the average monthly collection of the agent. The
agents shall be required to make settlement with the association at
least monthly.



6202.  No indemnity bond coverage is required of any agent that is a
financial institution insured by the Federal Deposit Insurance
Corporation.


6203.  (a) The amounts and form of indemnity bonds and sufficiency
of the surety shall be approved by the board of directors and by the
commissioner.
   (b) In lieu of individual bonds, a blanket bond, protecting the
association from loss through any act or acts of any director,
officer, employee or agent, may be obtained.
   (c) A true copy of every indemnity bond shall be on file at all
times at the association's home office.



6204.  Indemnity bonds shall provide that their cancellation either
by the surety or by the insured shall not become effective unless and
until 10 days' notice in writing first shall have been given to the
commissioner, unless the cancellation is approved earlier by the
commissioner.

Categories