§31A-4-31. Uniform and continuing depository bonds authorized;
review of such bonds; correction of inadequacy;
security for federally insured deposits not
required.
Notwithstanding any provision of any law, ordinance, order,
rule, regulation or resolution requiring depository bonds of
banking institutions covering state, county and municipal
deposits or the deposits of any state, county, municipality or
other political subdivision agency, bureau, department,
instrumentality or officer or public corporation to be renewed
annually or periodically, all such depository bonds may be
uniform in content and continuing in nature and need not be
renewed annually or periodically, but it shall be the
responsibility of any such depositor to review the bonds covering
its deposits from time to time, and at least once each year on or
about the anniversary date of each one thereof, to ascertain and
verify that the coverage and sureties are adequate and sufficient
in all particulars and that such bonds comply with all lawful
requirements. In the event any bond is found to be inadequate or
insufficient, written notice of the inadequacy or insufficiency
shall be given to the banking institution, and it shall be the
responsibility of the banking institution to act promptly to
correct the same by executing a new bond or enlarging and
correcting the coverage of the existing bond, or by taking such
other action as may be required.
The commissioner of banking, with the approval of the
attorney general, shall prescribe the form of the uniform and continuing type of depository bonds as authorized by this
section.
Notwithstanding any provision of any such law, ordinance,
order, rule, regulation or resolution requiring security for such
deposits in the form of collateral, surety bond or other assets
or documents, security for such deposits shall not be required to
the extent such deposits are insured by the federal deposit
insurance corporation.