Section 13-03-24-03 - Acceptable bond formsAt a minimum, the bond coverage must:
1. Be purchased in an individual policy from a company holding a certificate of authority from the secretary of the treasury.2. Include fidelity bonds that cover fraud and dishonesty by all employees, directors, officers, supervisory committee members, and credit committee members. Fidelity bond coverage may also cover activities of a credit union service organization provided the credit union owns more than fifty percent of the credit union service organization or the credit union service organization or it is organized by the credit union for the exclusive benefit of the credit union's employees.3. Include an option for the liquidating agent to purchase coverage in the event of an involuntary liquidation that extends the discovery period for a covered loss for at least one year after liquidation.4. In the case of a voluntary liquidation, remain in effect, or provide that the discovery period is extended, for at least four months after the final distribution of assets.5. Be a bond form that has been approved by the national credit union administration board.N.D. Admin Code 13-03-24-03
Effective January 1, 2007.Amended by Administrative Rules Supplement 2022-384, April 2022, effective 4/1/2022.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06