Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 1075 - SAVINGS BANK ACT
Subpart D - OPERATIONS
Section 1075.460 - Bond of Officers, Organization Directors, Employees and Agents

Universal Citation: 38 IL Admin Code ยง 1075.460

Current through Register Vol. 48, No. 12, March 22, 2024

Every savings bank shall maintain bond coverage with a bonding company acceptable to the Director for every officer, organization director, employee and agent of the savings bank or such other persons in positions requiring the receipt, payment, management or use of money belonging to the savings bank or whose duties permit or require access to or custody of a savings bank's assets or require the making of entries on the books and records of the savings bank.

a) Bond Schedule. The minimum amount of bond shall be based on total consolidated assets of the savings bank and its subsidiaries in accordance with the following schedule:

Total Assets

Minimum Coverage

Less than $1,000,000

$135,000.

$1,000,001 to $10,000,000

$135,000 plus $25,000 for each $1,000,000 or fraction thereof over $1,000,000.

$10,000,001 to $50,000,000

$360,000 plus $50,000 for each $5,000,000 or fraction thereof over $10,000,000.

$50,000,001 to $500,000,000

$760,000 plus $75,000 for each $25,000,000 or fraction thereof over $50,000,000.

Over $500,000,000

$2,110,000 plus $100,000 for each $50,000,000 over $500,000,000.

b) No savings bank shall be required to maintain bond coverage in an amount greater than $3,000,000.

c) Coverage in excess of the above minimum requirements is optional at the discretion of the board of directors of the savings bank.

d) The bond shall not provide for more than one deductible from all losses caused by the same person or caused by the same persons acting in collusion or combination in cases in which the losses result from dishonesty. A deductible shall not exceed an amount determined in accordance with the following schedule:

Total Capital

Permissible Deductible

Less than 4% of total assets

10% of total capital.

Greater than 4% but less than 6% of total assets

15% of total capital.

Greater than 6% of total assets

20% of total capital.

e) The bond shall be in the form known as Standard Form No. 22, Standard Form No. 24 or an equivalent as determined by the Director.

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