Title 19
Financial Institutions

Chapter 2
Creation and Expansion

R.I. Gen. Laws § 19-2-19

§ 19-2-19. Bonds of officers and employees — Supervision by director.

(a) Every officer and employee of a regulated institution shall be bonded in a form and in an amount that the director, or the director’s designee, may prescribe, for the honest discharge of his or her duties, and shall file with the director, or the director’s designee, an attested copy. The director, or the director’s designee, shall promulgate regulations to set minimum amounts of fidelity bond coverage based upon the size of regulated institutions, stating the minimum amount and type of coverage. The director, or the director’s designee, shall be notified of any change in the bond, or any revocation of the bond, within ten (10) business days of the change or revocation by the company issuing the bond and the responsible officer of the regulated institution as designated by the trustees or board of directors of the regulated institution.

(b) The bond or bonds shall be continuous and remain in full force and effect until termination by either the regulated institution or the surety. Termination shall not become effective until thirty (30) days after the director, or the director’s designee, has received notice. Regardless of the number of years, the bond shall continue in force, and the limit of the surety’s liability stated in the bond shall not be cumulative from year to year or period to period.

History of Section.
P.L. 1995, ch. 82, § 39.