Vermont § 12301 - Bonds and insurance

§ 12301. Bonds and insurance

• (a) The governing body of a Vermont financial institution shall direct and require good
  and sufficient fidelity bonds on all active officers, employees, and agents, whether
  or not they draw salary or compensation, which bonds shall provide for indemnity to
  the financial institution on account of any losses sustained by it as the result of
  any dishonest or fraudulent act committed or any omission by them acting independently
  or in collusion or combination with any person or persons. The bonds may be in individual,
  schedule, or blanket form, and the premiums shall be paid by the financial institution. (b) The governing body shall also direct and require suitable insurance protection to
  the financial institution against burglary, robbery, theft, and other similar insurable
  hazards to which the financial institution may be exposed in the operation of its
  business on the premises or elsewhere. (c) The governing body shall be responsible for prescribing at least once in each year
  the amount or penal sum of those bonds or policies and the sureties or underwriters
  thereon, after giving due and careful consideration to all known elements and factors
  constituting the risk or hazards. That action shall be recorded in the minutes of
  the governing body. The Commissioner may require a financial institution to furnish
  an attested duplicate of the bonds and policies required by this section. (d) The Commissioner may require a Vermont financial institution to secure additional
  bonds or insurance. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 289, eff. July 1, 2022.)