Guam § 160309 - Fidelity Bonds; Insurance.

§ 160309. Fidelity Bonds; Insurance.

(a) The directors of a Trust Company shall require good and

sufficient fidelity bonds in the amount of Twenty-five Thousand Dollars

($25,000.00) or more on all active officers and employees, whether or

not they receive a salary or other compensation from the Company, to

indemnify the Company against loss because of any dishonest, fraudulent

or criminal act or omission by any officer or employee acting alone or in

combination with any other person. The bonds may be in any form and

may be paid for by the Trust Company.

(b) The directors shall obtain suitable insurance for their Company

against burglary, robbery, theft and other hazards to which it may be

exposed in the operation of its business.

(c) The directors shall at least annually prescribe the amount of

penal sum of the bonds or policies and designate the sureties and

underwriters thereof, after giving due and careful consideration to all

known elements and factors constituting a risk or hazard. The directors=

COL4122017

11 GCA FINANCE & TAXATION

CH. 160 GUAM-BASED TRUST COMPANIES ACT

action must be recorded in the minutes of the board of directors and

reported to the Commissioner.

2017 NOTE: Subsection designations altered pursuant to the authority of 1 GCA §

1606.