6.1-54 - (Repealed effective October 1, 2010) Bonds required of officers and employees; blanket bond. - Virginia Statutes

§ 6.1-54. (Repealed effective October 1, 2010) Bonds required of officers andemployees; blanket bond.

A. The board of directors of every bank, trust company and trust subsidiaryshall require bonds from all of the active officials and employees of suchcorporation. In lieu of such bonds, the board may obtain one or more blanketbonds. A bank holding company may obtain a blanket bond covering allaffiliate banks within the holding company. The surety on every bond shallbe a bonding or surety company authorized to transact business in Virginia,and the penalty of any such bond shall be increased whenever in the opinionof the State Corporation Commission it is necessary for the protection of thepublic interest.

B. If a bank is unable to obtain the bond required by this section, it shallimmediately notify the Commission, which may then direct the bank to have anaudit performed at its expense by an independent certified public accountingfirm. The bank shall obtain blanket bond coverage as soon as such coverageis available. Failure to obtain blanket bond coverage may be cause foraction by the Commission as provided by § 6.1-92.

(Code 1950, § 6-46; 1966, c. 584; 1974, c. 665; 1979, c. 52; 1992, c. 365.)