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Texas Finance Code - FIN § 92.156. Financial Institution Bond

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Texas Finance Code - FIN § 92.156. Financial Institution Bond - last updated January 01, 2024 | https://codes.findlaw.com/tx/finance-code/fin-sect-92-156/

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