New Mexico § 58-1-67 - Fidelity bonds and other insurance

§ 58-1-67. Fidelity bonds and other insurance

A. The directors of a state bank shall direct and require good and sufficient fidelity

bonds on all active officers and employees, whether or not they draw salary or compensation,

which bonds shall provide for indemnity to such bank on account of any losses sustained

by it as the result of any dishonest, fraudulent or criminal act or omission committed

or omitted by them acting independently or in collusion or combination with any person

or persons. Such bonds may be in individual, schedule or blanket form, and the premiums therefor

shall be paid by the bank. B. The said directors shall also direct and require suitable insurance protection

to the bank against burglary, robbery, theft and other similar insurable hazards to

which the bank may be exposed in the operations of its business on the premises or

elsewhere. C. The directors shall be responsible for prescribing at least once in each year the

amount or penal sum of the bonds or policies and the sureties or underwriters thereon,

after giving due and careful consideration to all known elements and factors constituting

such risk or hazard. This action shall be recorded in the minutes of the board of directors and thereafter

be reported to the commissioner [director of the financial institutions division of

the regulation and licensing department] and be subject to his approval.