Minimum Bond Requirements

80-8-3-.03 Minimum Bond Requirements.

(1) Any persons required to be bonded under the provisions of Code of Ala. 1975, §2-10-23, shall be bonded in an amount not less than $5,000. Said bond shall be in favor of the association conditioned upon the faithful performance of their duties in handling and controlling the property and money of the association.

(2) The minimum bond amount set out in Paragraph (1) above shall not prohibit the association, through its board of directors or by the majority of its members in any regular or

special meeting, from requiring any other bond amount over and above this minimum.

(3) Any association existing as of the effective date of this rule whose officers handle and control the money and property of the association that are bonded in an amount less than $5,000 shall be granted reasonable time to comply with this rule. Upon a person's failure to procure added bond coverage up to the minimum required, the association shall then remove said person from the business of handling and controlling the money and property of the association. Author: Charles H. Barnes Statutory Authority: Code of Ala. 1975, §§2-3-4, 2-10-23. History: Filed April 19, 1982.