Effective - 06 Jul 1994
369.114. Bonds, who shall have, amount, how and when modified — issuance by fidelity insurance company, requirements, modification of, procedure — reciprocal organization, when and how established. — 1. Every person appointed or elected to any position requiring the receipt, payment, management or use of money belonging to any association, or whose duties permit such person to have access to or custody of any of its money or securities or whose duties permit such person regularly to make entries in the books or other records of the association, before assuming such person's duties shall become bonded by some fidelity insurance company licensed to do business in this state. The amount of each such bond shall be determined by the director of the division of finance in accordance with a table of coverage prepared by the director of the division of finance. The amount shall be modified annually in accordance with the table of coverages, which modification shall be made within ninety days following the close of the association's fiscal year.
2. The bond to be issued by each fidelity insurance company shall be substantially uniform, and the terms shall be approved by the director of the division of finance. No modification of the terms shall be made by any bond issuer without serving prior written notice on the director of the division of finance setting forth the proposed changes. Upon receipt of such notice, the director of the division of finance shall send copies to all associations covered by such bonds and invite comments thereon. The director of the division of finance may, in the director's discretion, order a hearing to be held. The requested change shall become effective within ninety days unless the director of the division of finance shall issue an order denying the change.
3. In the event it appears to the director of the division of finance that bonds in the nature of fidelity insurance as required by this section are not available or are not available at premium rates which the director of the division of finance deems reasonable, then the director of the division of finance, upon a petition signed by twenty or more associations covered by this chapter, may permit the establishment of a reciprocal organization on such terms as the director of the division of finance may require to provide bond coverage in the nature of fidelity insurance, and any association covered by this chapter or any federal association with its principal office in this state may become a member. Such reciprocal organization, if established, shall render an annual report to the director of the division of finance and shall be subject to examination by the director of the division of finance.
--------
(L. 1971 S.B. 3 § 22, A.L. 1983 H.B. 570, A.L. 1994 H.B. 1165)
Effective 7-06-94