6.2-1053 - (Effective October 1, 2010) Bonds required of officers and employees; blanket bond. - Virginia Statutes

§ 6.2-1053. (Effective October 1, 2010) Bonds required of officers andemployees; blanket bond.

A. The board of directors of every trust subsidiary shall require bonds fromall of the active officials and employees of such corporation. In lieu ofsuch bonds, the board may obtain one or more blanket bonds. The surety onevery bond shall be a bonding or surety company authorized to transactbusiness in Virginia, and the penalty of any such bond shall be increasedwhenever in the opinion of the Commission it is necessary for the protectionof the public interest.

B. If a trust subsidiary is unable to obtain the bond required by thissection, it shall immediately notify the Commission, which may then directthe trust subsidiary to have an audit performed at its expense by anindependent certified public accounting firm. The trust subsidiary shallobtain blanket bond coverage as soon as such coverage is available. Failureto obtain blanket bond coverage may be cause for action by the Commission asprovided by § 6.2-906.

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