Oklahoma § 60-301.6 - Fidelity bonds

§ 60-301.6. Fidelity bonds

A. Governing board must require fidelity bonds. The governing

board of a charitable organization serving as trustee of a

charitable trust shall require good and sufficient fidelity bonds on

all officers and employees who are involved in the funding and

administration of a charitable trust, whether or not they are paid a

salary or other compensation. The fidelity bonds shall indemnify

the charitable trusts administered by a charitable organization for

loss sustained to a charitable trust as the result of dishonest,

fraudulent, or criminal conduct by the officers and employees of the

charitable organization, whether acting independently or in

collusion with any person or persons.

Oklahoma Statutes - Title 60. Property

B. Form and premiums of fidelity bonds. The governing board of

a charitable organization serving as trustee of a charitable trust

shall determine the amount and form of its fidelity bonds. The

premiums for its fidelity bonds shall be paid by the charitable

organization and the cost of premiums may be included in the

administrative overhead of the charitable organization.

C. Annual review of fidelity bonds. At least once each

calendar year the governing board of a charitable organization

serving as trustee of a charitable trust shall evaluate all known

elements and factors constituting its risk of loss due to dishonest,

fraudulent, or criminal conduct by its officers and employees and

determine if the amount and form of its fidelity bonds are

sufficient. The governing board shall then require fidelity bonds

in such amounts and form as are sufficient to protect its charitable

trusts from such risk or hazard. The action of the governing board

in determining the amount and form of its fidelity bonds shall be

recorded in the minutes of the governing board.

Added by Laws 1997, c. 99, § 7, emerg. eff. April 15, 1997.