6.2-1027 - (Effective October 1, 2010) Bonds required of officers and employees; blanket bond. - Virginia Statutes

§ 6.2-1027. (Effective October 1, 2010) Bonds required of officers andemployees; blanket bond.

A. The board of directors of every trust company shall require bonds from allof the active officials and employees of such corporation. In lieu of suchbonds, the board may obtain one or more blanket bonds. The surety on everybond shall be a bonding or surety company authorized to transact business inVirginia, and the penalty of any such bond shall be increased whenever in theopinion of the Commission it is necessary for the protection of the publicinterest.

B. If a trust company is unable to obtain the bond required by this section,it shall immediately notify the Commission. The Commission may then directthe trust company to have an audit performed at its expense by an independentcertified public accounting firm. The trust company shall obtain blanket bondcoverage as soon as such coverage is available. Failure to obtain blanketbond coverage may be cause for action by the Commission as provided by §6.2-1036.

(Code 1950, § 6-46; 1966, c. 584, § 6.1-54; 1974, c. 665; 1979, c. 52; 1992,c. 365; 2010, c. 794.)