38.2-2404 - Limit when penalty of bond exceeds actual exposure to risk. - Virginia Statutes

§ 38.2-2404. Limit when penalty of bond exceeds actual exposure to risk.

When the penalty of a suretyship obligation exceeds (i) the amount of ajudgment described on the obligation as appealed from and secured by theobligation, (ii) the amount of the subject matter in controversy, or (iii)the amount of the estate held in trust by the person acting in a fiduciarycapacity, the bond may be executed by any fidelity and surety insurer if theactual amount of the judgment or the subject matter in controversy or estatenot subject to supervision or control of the surety is not in excess of thelimitation specified in § 38.2-208. When the penalty of a suretyshipobligation executed for the performance of a contract exceeds the contractprice, the contract price shall be taken as the basis for estimating thelimit of risk specified in § 38.2-208.

(1952, c. 317, § 38.1-642; 1986, c. 562.)