7-7-14 - Bonding of directors, officers, employees, and collection agents. - Utah Statutes

7-7-14. Bonding of directors, officers, employees, and collection agents.
Each director, officer, and employee of an association shall, before entering upon theperformance of any duty, execute an individual bond with adequate corporate surety payable tothe association as an indemnity for any loss the association may sustain of money or otherproperty by or through any fraud, dishonesty, forgery or alteration, larceny, theft, embezzlement,robbery, burglary, hold-up, wrongful or unlawful abstraction, misapplication, misplacement,destruction or misappropriation, or any other dishonest or criminal act or omission by thedirector, officer, employee, or agent. An association which employs collection agents, who forany reason are not covered by a bond as hereinabove required, shall provide for the bonding ofeach such agent in an amount equal to at least twice the average monthly collection of the agent. No bond coverage will be required of any agent which is a financial institution insured by theFederal Deposit Insurance Corporation or other federal deposit insurance agency. In lieu ofindividual bonds, a blanket bond, protecting the association from loss through any such act oracts on the part of any such director, officer, or employee, may be obtained. A true copy of everysuch indemnity bond shall be on file at all times with the supervisor. Each bond shall providethat a cancellation of the bond either by the surety or by the insured does not become effectiveunless and until 10 days notice in writing first has been given to the supervisor, unless he hasapproved the cancellation earlier.

Amended by Chapter 378, 2010 General Session