32-2-408. Bonds of officers, agents, and employees. The board of directors of a building and loan association shall require that all officers, agents, and employees of the building and loan association whose duties include the handling of money, notes, bonds, credits, and cash items and whose duties include bookkeeping or the making of entries in relation to the business of the building and loan association and its customers be bonded. The board of directors shall by an order entered upon the minute books of the board designate all the officers, agents, and employees to be bonded and the amount of bonds to be given by each. The action as to the personnel and amount and the surety company or sureties is subject to approval by the department. The bonds must be in a form that must be provided and approved by the department, the bonds must be approved by the president of the building and loan association, and the president's action must be reported to the board of directors. All bonds required by this section must be kept in the custody of the building and loan association subject to inspection by the department. As far as possible, a bond may not be placed in the custody of the officer, agent, or employee for whom it is given.

     History: En. Sec. 16, Ch. 57, L. 1927; amd. Sec. 1, Ch. 5, L. 1933; re-en. Sec. 6355.17, R.C.M. 1935; amd. Sec. 74, Ch. 431, L. 1975; R.C.M. 1947, 7-118; amd. Sec. 1042, Ch. 56, L. 2009.