Rule 80-1-3-.05. Minimum Requirements for Fidelity Coverage
Rule 80-1-3-.05. Minimum Requirements for Fidelity Coverage
- (1) The Board of Directors of each bank shall review the fidelity insurance coverage annually in order to ascertain its adequacy in relation to the exposure to theft, defalcation, or other similar actions by officers, directors, and employees and to any minimum requirements that may be fixed from time to time by the Commissioner. In evaluating the adequacy and scope of the fidelity coverage, the Board of Directors shall consider whether the coverage should include agents and independent contractors of the bank.
- (2) Every bank shall obtain fidelity coverage, such as a fidelity bond, to provide protection against the potential risks facing the bank as prescribed in the bank's bylaws, applicable statutes, and rules and regulations of the Department.
- (3) The Commissioner may require additional coverage for any bank when, in his or her opinion, the fidelity coverage in force is insufficient to provide adequate fidelity coverage, and the bank shall obtain such additional coverage within thirty (30) days after the date of written notice from the Commissioner of the requirement to obtain such additional coverage. If the bank is unable to obtain such additional coverage within the thirty (30) day timeframe, the bank shall provide the Department with detailed information documenting the commercially reasonable efforts undertaken by the bank during the timeframe and the Department shall determine the amount of additional time needed for the bank to obtain the required coverage.
Authority: O.C.G.A. §§ 7-1-61, 7-1-489.
History. Original Rule entitled "Reimbursement for Cost of Production of Records" was filed on August 17, 1983; effective September 6, 1983.
Repealed: F. Oct. 12, 1989; eff. Nov. 1, 1989.
Adopted: New Rule entitled "Minimum Requirements for Fidelity Coverage." F. June 18, 2025; eff. June 8, 2025.