Section 10. Surety bond amount required

A. Every credit union incorporated and operating under the provisions of Chapter 13 (§ 6.2-1300 et seq.) of Title 6.2 of the Code of Virginia shall obtain and keep in force a blanket surety bond upon all of its officials, committee members and employees in a surety company licensed to do business in Virginia in an amount of at least that shown in the following schedule based upon its total assets as shown by its latest statement of financial condition made to the Commission as of the end of each calendar year:

	ASSETS	MINIMUM BOND
	$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 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

B. The maximum amount of deductibles allowed are based on the credit union's total assets. The following table sets out the maximum deductibles:

	ASSETS	MINIMUM DEDUCTIBLE
	$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

C. No bond obtained pursuant to this chapter may be canceled unless written notice thereof is given to the Commissioner of Financial Institutions at least 30 days prior to the effective date of such cancellation, and every such bond shall contain a provision to that effect.

Historical Notes

Derived from VR225-01-0401, eff. January 28, 1988; amended, January 1, 1991; Volume 28, Issue 01, eff. September 1, 2011.

Statutory Authority

§§ 6.2-1303 and 12.1-13 of the Code of Virginia.