§ 19-2-19 - Bonds of officers and employees – Supervision by director. - Rhode Island Statutes

SECTION 19-2-19

   § 19-2-19  Bonds of officers and employees– Supervision by director. – (a) Every officer and employee of a regulated institution shall be bonded in aform and in an amount that the director or the director's designee mayprescribe, for the honest discharge of his or her duties, and shall file withthe director or the director's designee an attested copy. The director or thedirector's designee shall promulgate regulations to set minimum amounts offidelity bond coverage based upon the size of regulated institutions, statingthe minimum amount and type of coverage. The director or the director'sdesignee shall be notified of any change in the bond, or any revocation of thebond within ten (10) business days of the change or revocation by the companyissuing the bond and the responsible officer of the regulated institution asdesignated by the trustees or board of directors of the regulated institution.

   (b) The bond or bonds shall be continuous and remain in fullforce and effect until termination by either the regulated institution or thesurety. Termination shall not become effective until thirty (30) days after thedirector or the director's designee has received notice. Regardless of thenumber of years, the bond shall continue in force, and the limit of thesurety's liability stated in the bond shall not be cumulative from year to yearor period to period.