669.240 - Fidelity bonds; insurance.
669.240 Fidelity bonds; insurance.
1. The directors or managers of a trust company shall require good and sufficient fidelity bonds in the amount of $25,000 or more on all active officers, managers, members acting in a managerial capacity and employees, whether or not they receive a salary or other compensation from the trust company, to indemnify the trust company against loss because of any dishonest, fraudulent or criminal act or omission by any of the persons bonded acting alone or in combination with any other person. The bonds may be in any form and may be paid for by the trust company.
2. The trust company shall obtain suitable insurance against burglary, robbery, theft and other hazards to which it may be exposed in the operation of its business.
3. The trust company shall at least annually prescribe the amount or penal sum of the bonds or policies and designate the sureties and underwriters thereof, after giving due and careful consideration to all known elements and factors constituting a risk or hazard. The action must be recorded in the minutes of the trust company and reported to the Commissioner.
(Added to NRS by 1969, 1188; A 1983, 300, 1762; 1987, 1946; 1999, 848)
NRS 669.245 Commissioner authorized to be signatory. The Commissioner is authorized to be, on his or her own behalf and that of the Division of Financial Institutions, a signatory to the Nationwide Cooperative Agreement for Supervision and Examination of Multi-State Trust Institutions as adopted by the Conference of State Bank Supervisors and exercise his or her discretion in the supervision of multi-state trust institutions consistently with that agreement.
(Added to NRS by 2009, 1952)