Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 1100 - Division of Credit Unions
Chapter 2 - State-Chartered Credit Unions
Section 20 CSR 1100-2.030 - Surety Bond Requirement
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule establishes the minimum surety bond coverage a credit union must carry for protection of its assets (see section 370.235, RSMo, for statutory provisions).
(1) All credit unions are required to carry a surety blanket bond with the types and amounts of coverage required to qualify for and maintain, if required, federal share insurance as stated in National Credit Union Association (NCUA) Rules and Regulations, Part 713, and in addition must provide for faithful-performance-of-duty coverage for any officer or employee.
(2) The board of directors of each credit union shall, at least annually, carefully review the bond coverage in force to determine its adequacy in relation to risk exposure and to minimum regulatory requirements and shall document this review in the board of directors' minutes.
(3) All credit unions must use a basic bond form that has been approved by the NCUA board unless prior written approval has been acquired from the director.
(4) All credit unions should maintain increased coverage above the minimum required in section (1), equal to the greater of either of the following amounts within thirty (30) days of discovery of the need for such increase:
(5) Any aggregate limit of liability provided for in a surety blanket bond policy must be at least twice the single loss of liability. This requirement does not apply to optional insurance coverage.
(6) The maximum amount of deductible may not exceed the limit stated in NCUA Rules and Regulations, Part 713.
(7) For purposes of this regulation, the term surety bond is synonymous with the term fidelity bond.
*Original authority: 370.100, RSMo 1939, amended 1945, 1945, 1949, 1959, 1967, 1972.