(1) The general assembly hereby finds, determines, and declares that the following is enforceable and in conformity with the public policy of this state, as expressed in this article, including the provisions of section 11-101-102:
Any insurance policy, form, contract, endorsement, or certificate in effect or issuedon or after April 30, 1993, that provides insurance coverage to directors or officers, or both, of a trust company but that does not grant coverage or that excludes coverage for claims made by any depository insurance organization or other state or federal corporation, organization, entity, or agency acting as receiver, conservator, or liquidator of such trust company, whether in its own name or in behalf of any other person or entity; or
Any fidelity bond, financial institution bond, or depository institution bond in effector issued on or after April 30, 1993, that provides for termination of such bond upon the taking over of any trust company by a receiver or other liquidator or by state or federal officials.
No provision of this article shall be construed to contravene or modify the expressedpublic policy set forth in this section.
The directors of a trust company shall:
Require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salary or compensation, which bonds must provide for indemnity to the trust company on account of any losses sustained by it as the result of any dishonest, fraudulent, or criminal conduct by them acting independently or in collusion or combination with any person. The bonds may be in individual, schedule, or blanket form, and the trust company shall pay the premiums for the bonds.
Require suitable insurance protection to the trust company against burglary, robbery,theft, and other insurable hazards to which the trust company may be exposed in the operations of its business on the premises or elsewhere; and
Prescribe, at least once in each calendar year, the amount or penal sum of the bondsand policies specified in this section and the sureties or underwriters thereon after giving due and careful consideration to all known elements and factors constituting such risk or hazard. The directors shall record the action in the board's minutes.
Source: L. 2003: Entire article added with relocations, p. 1193, § 3, effective July 1. L. 2013: (3) added, (SB 13-154), ch. 282, p. 1483, § 51, effective July 1.
Editor's note: This section is similar to former § 11-23-117.5 as it existed prior to 2003.