Rule 80-2-5-.01. Minimum Requirements for Fidelity Coverage
Rule 80-2-5-.01. Minimum Requirements for Fidelity Coverage
- (1) The Board of Directors of each credit union 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 credit union.
- (2) Every credit union shall obtain fidelity coverage, such as a fidelity bond, to provide protection against the potential risks facing the credit union as prescribed in the credit union's bylaws, applicable statutes, and rules and regulations of the Department.
- (3) It shall be the duty of the Board of Directors of the credit union to provide adequate fidelity coverage.
- (4) The Commissioner may require additional coverage for any credit union when, in his or her opinion, the fidelity coverage in force is insufficient to provide adequate fidelity coverage, and it shall be the duty of the Board of Directors of the credit union to 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 credit union is unable to obtain such additional coverage within the thirty (30) day timeframe, the credit union shall provide the Department with detailed information documenting the commercially reasonable efforts undertaken by the credit union during the timeframe and the Department shall determine the amount of additional time needed for the credit union to obtain the required coverage.
Authority: O.C.G.A. §§ 7-1-61, 7-1-663.
History. Original Rule entitled "Minimum Requirements for Surety Bond Coverage" adopted. F. May 14, 1976; eff. June 3, 1976.
Amended: F. July 13, 1981; eff. August 2, 1981.
Amended: F. Aug. 22, 2006; eff. Sept. 11, 2006.
Amended: Title changed to "Minimum Requirements for Fidelity Bond Coverage." F. June 10, 2014; eff. June 30, 2014.
Amended: F. July 12, 2024; eff. Aug. 1, 2024.
Amended: New title, "Minimum Requirements for Fidelity Coverage." F. June 18, 2025; eff. July 8, 2025.