§ 6.1-194.20. (Repealed effective October 1, 2010) Bonds of officers andemployees.
A. The directors of every savings institution shall require a bond withcorporate surety from each of the active officers and employees of theinstitution as an indemnity for any loss the institution may sustain as aresult of such person's fraud, dishonesty, theft or embezzlement. In lieu ofindividual bonds a blanket bond with corporate surety covering all activeofficers and employees of the institution may, with the approval of the boardof directors, be obtained. The Commission shall, not less than twice duringany period of three consecutive calendar years, examine all such bonds andpass on their sufficiency and either the board of directors or the Commissionmay require new or additional bonds at any time. The corporate surety shallhave a license issued by the Commission.
If a savings institution determines that it is unable to obtain the suretybond coverage required by this section, it shall immediately notify theCommission, which shall forthwith investigate to determine whether suchcoverage is available to the institution. If the Commission determines,after such investigation, that such coverage is not reasonably available tothe institution, the Commission shall not be required to close theinstitution solely because of the unavailability of such coverage, but may doso under § 6.1-194.83. If the institution is not closed because of theunavailability of such coverage, the Commission shall closely monitor theinstitution to ensure that such coverage is obtained as soon as possible, andshall take such further action under § 6.1-194.83 or § 6.1-194.84 as theCommission deems necessary.
B. The institution, at its cost, may also obtain insurance to protect itsdirectors, officers and employees against lawsuits arising out of claims ofnegligence or misconduct.
(Code 1950, §§ 6-201.36, 6.1-166, 6.1-195.43; 1960, c. 402; 1966, c. 584;1972, c. 796; 1979, c. 60; 1985, c. 425; 1986, c. 628.)
§ 6.1-194.20. (Repealed effective October 1, 2010) Bonds of officers andemployees.
A. The directors of every savings institution shall require a bond withcorporate surety from each of the active officers and employees of theinstitution as an indemnity for any loss the institution may sustain as aresult of such person's fraud, dishonesty, theft or embezzlement. In lieu ofindividual bonds a blanket bond with corporate surety covering all activeofficers and employees of the institution may, with the approval of the boardof directors, be obtained. The Commission shall, not less than twice duringany period of three consecutive calendar years, examine all such bonds andpass on their sufficiency and either the board of directors or the Commissionmay require new or additional bonds at any time. The corporate surety shallhave a license issued by the Commission.
If a savings institution determines that it is unable to obtain the suretybond coverage required by this section, it shall immediately notify theCommission, which shall forthwith investigate to determine whether suchcoverage is available to the institution. If the Commission determines,after such investigation, that such coverage is not reasonably available tothe institution, the Commission shall not be required to close theinstitution solely because of the unavailability of such coverage, but may doso under § 6.1-194.83. If the institution is not closed because of theunavailability of such coverage, the Commission shall closely monitor theinstitution to ensure that such coverage is obtained as soon as possible, andshall take such further action under § 6.1-194.83 or § 6.1-194.84 as theCommission deems necessary.
B. The institution, at its cost, may also obtain insurance to protect itsdirectors, officers and employees against lawsuits arising out of claims ofnegligence or misconduct.
(Code 1950, §§ 6-201.36, 6.1-166, 6.1-195.43; 1960, c. 402; 1966, c. 584;1972, c. 796; 1979, c. 60; 1985, c. 425; 1986, c. 628.)
§ 6.1-194.20. (Repealed effective October 1, 2010) Bonds of officers andemployees.
A. The directors of every savings institution shall require a bond withcorporate surety from each of the active officers and employees of theinstitution as an indemnity for any loss the institution may sustain as aresult of such person's fraud, dishonesty, theft or embezzlement. In lieu ofindividual bonds a blanket bond with corporate surety covering all activeofficers and employees of the institution may, with the approval of the boardof directors, be obtained. The Commission shall, not less than twice duringany period of three consecutive calendar years, examine all such bonds andpass on their sufficiency and either the board of directors or the Commissionmay require new or additional bonds at any time. The corporate surety shallhave a license issued by the Commission.
If a savings institution determines that it is unable to obtain the suretybond coverage required by this section, it shall immediately notify theCommission, which shall forthwith investigate to determine whether suchcoverage is available to the institution. If the Commission determines,after such investigation, that such coverage is not reasonably available tothe institution, the Commission shall not be required to close theinstitution solely because of the unavailability of such coverage, but may doso under § 6.1-194.83. If the institution is not closed because of theunavailability of such coverage, the Commission shall closely monitor theinstitution to ensure that such coverage is obtained as soon as possible, andshall take such further action under § 6.1-194.83 or § 6.1-194.84 as theCommission deems necessary.
B. The institution, at its cost, may also obtain insurance to protect itsdirectors, officers and employees against lawsuits arising out of claims ofnegligence or misconduct.
(Code 1950, §§ 6-201.36, 6.1-166, 6.1-195.43; 1960, c. 402; 1966, c. 584;1972, c. 796; 1979, c. 60; 1985, c. 425; 1986, c. 628.)
