California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 30 - Credit Unions
Article 1 - General Provisions
Section 30.104 - Bond and Insurance Coverage
Current through Register 2024 Notice Reg. No. 38, September 20, 2024
A credit union shall be deemed to have obtained bond or insurance coverage for each officer, credit manager and employee (collectively and separately, the "individual") having control of or access to funds or securities owned by or pledged with the credit union "commensurate with risks involved," within the meaning of Section 14409 of the Financial Code, if all of the following conditions are met:
(a) NCUA Approval. The bond form or insurance policy has been approved in writing by the National Credit Union Administration.
(b) Additional Requirements. The bond form or insurance policy also:
(c) Minimum Coverage Amount. The minimum amount of bond or insurance coverage required is computed based on the gross assets of the credit union in accordance with the following formula:
Assets |
Minimum Bond or Insurance |
$0 to $10,000 |
Coverage equal to the credit union's assets. |
$10,001 to $1,000,000 |
$10,000 for each $100,000 or fraction thereof. |
$1,000,001 to $50,000,000 |
$100,000 plus $50,000 for each million or fraction thereof over $1,000,000. |
$50,000,001 to $295,000,000 |
$2,550,000 plus $10,000 for each million or fraction thereof over $50,000,000. |
Over $295,000,000 |
$5,000,000. |
And
(d)
Assets |
Maximum Deductibles |
$0 - $100,000 |
No deductibles allowed |
$100,001 - $250,000 |
$1,000 |
$250,001 - $1,000,000 |
$2,000 |
Over $1,000,000 |
$2,000 plus 1/1000 of total assets up to a maximum deductible of $200,000 |
1. Change without regulatory effect renumbering former section 909 to new section 30.104 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).
Note: Authority cited: Sections 14201 and 14409, Financial Code. Reference: Sections 14204 and 14409, Financial Code.