Texas § FI.92.156 - FINANCIAL INSTITUTION BOND

§ FI.92.156. FINANCIAL INSTITUTION BOND

FINANCIAL INSTITUTION BOND. (a) A savings bank shall maintain a financial institution bond that provides adequate coverage to protect the savings bank from loss: (1) by or through dishonest or criminal action or omission, including fraud, theft, or misplacement, by any of the following persons: (A) an officer or employee of the savings bank; (B) an attorney retained by the savings bank; (C) a nonemployee performing data processing services for the savings bank; or (D) a director of the savings bank performing a duty of an officer or employee; or (2) by other perils such as robbery, burglary, forgery, or alteration. (b) A savings bank that employs a collection agent who is not covered by the bond required by Subsection (a) shall: (1) ensure that the savings bank is included as a loss payee in the collection agent's crime coverage; and (2) obtain a certificate of insurance evidencing the sufficiency of the collection agent's crime coverage. (c) Subject to rules adopted under Subsection (e), the board shall, at least annually, review and approve: (1) the coverage, including the amount of the coverage, provided by the bond and the form of the bond; and (2) the sustainability of the corporate surety or insurer that issued the bond. (d) The bond must provide that a cancellation or other termination by the corporate surety or insurer or by the insured is not effective until the earlier of: (1) the date the commissioner approves; or (2) the 30th day after the date written notice of the cancellation is given to the commissioner. (e) The finance commission may adopt rules establishing: (1) the coverage, including the amount of the coverage, that must be provided by the bond and the form of the bond; and (2) the sustainability of the corporate surety or insurer that issues the bond. Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997. Amended by: Acts 2005, 79th Leg., Ch. 1018 (H.B. 955 ), Sec. 5.06, eff. September 1, 2005. Acts 2017, 85th Leg., R.S., Ch. 165 (H.B. 2579 ), Sec. 1, eff. September 1, 2017.