State Codes and Statutes
Statutes > Missouri > T24 > C369 > 369_114Bonds, who shall have, amount, how and when modified--issuance byfidelity insurance company, requirements, modification of,procedure--reciprocal organization, when and how established.
369.114. 1. Every person appointed or elected to anyposition requiring the receipt, payment, management or use ofmoney belonging to any association, or whose duties permit suchperson to have access to or custody of any of its money orsecurities or whose duties permit such person regularly to makeentries in the books or other records of the association, beforeassuming such person's duties shall become bonded by somefidelity insurance company licensed to do business in this state.The amount of each such bond shall be determined by the directorof the division of finance in accordance with a table of coverageprepared by the director of the division of finance. The amountshall be modified annually in accordance with the table ofcoverages, which modification shall be made within ninety daysfollowing the close of the association's fiscal year.
2. The bond to be issued by each fidelity insurance companyshall be substantially uniform, and the terms shall be approvedby the director of the division of finance. No modification ofthe terms shall be made by any bond issuer without serving priorwritten notice on the director of the division of finance settingforth the proposed changes. Upon receipt of such notice, thedirector of the division of finance shall send copies to allassociations covered by such bonds and invite comments thereon.The director of the division of finance may, in the director'sdiscretion, order a hearing to be held. The requested changeshall become effective within ninety days unless the director ofthe division of finance shall issue an order denying the change.
3. In the event it appears to the director of the divisionof finance that bonds in the nature of fidelity insurance asrequired by this section are not available or are not availableat premium rates which the director of the division of financedeems reasonable, then the director of the division of finance,upon a petition signed by twenty or more associations covered bythis chapter, may permit the establishment of a reciprocalorganization on such terms as the director of the division offinance may require to provide bond coverage in the nature offidelity insurance, and any association covered by this chapteror any federal association with its principal office in thisstate may become a member. Such reciprocal organization, ifestablished, shall render an annual report to the director of thedivision of finance and shall be subject to examination by thedirector of the division of finance.
(L. 1971 S.B. 3 § 22, A.L. 1983 H.B. 570, A.L. 1994 H.B. 1165)Effective 7-6-94
