N.Y. Comp. Codes R. & Regs. Tit. 9 § 9005.4 - Bonding and insurance
(a)
Each person appointed in accordance with this Subtitle or outside agent which
handles, holds, invests, maintains custody of or directs disbursement of funds
or serves as a trustee shall be bonded with a customary or usual bond, obtained
from an organization duly authorized and licensed to provide such bond in the
State of New York, to protect against any loss resulting from fraud or
dishonesty by such person or the employees, officers and agents
thereof.
(b) The amount of the bond
shall not be less than the lesser of:
(1) 100
percent of the amount under the plan managed or administered or held by such
person ; or
(2) $25 million;
provided, however, that the board or deferred compensation committee, as
applicable, may, in its discretion, require a bond in a greater amount if the
board or deferred compensation committee determines that such greater amount is
necessary or advisable to adequately protect the plan from any loss resulting
from fraud or dishonesty by such person.
The cost of any such bond for a
(c)
Each trustee , independent consultant , administrative service agency and
financial organization appointed in accordance with this Subtitle shall provide
appropriate evidence of adequate insurance, and the cost of any such insurance
for a trustee who is a member of the board or deferred compensation committee,
as applicable, shall be treated as a reasonable and necessary expense of
administering the plan and may be paid from the assets of the plan.
Notes
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