Ala. Admin. Code r. 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
Notes
Statutory Authority: Code of Ala. 1975, §§ 2-3-4, 2-10-23.
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