The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003
:
BONDS AND INSURANCE
(Cite as: 8 V.S.A. § 12301)
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§ 12301. Bonds and insurance
(a) The governing body of a Vermont financial institution shall direct and require good
and sufficient fidelity bonds on all active officers, employees, and agents, whether
or not they draw salary or compensation, which bonds shall provide for indemnity to
the financial institution on account of any losses sustained by it as the result of
any dishonest or fraudulent act committed or any omission by them acting independently
or in collusion or combination with any person or persons. The bonds may be in individual,
schedule, or blanket form, and the premiums shall be paid by the financial institution.
(b) The governing body shall also direct and require suitable insurance protection to
the financial institution against burglary, robbery, theft, and other similar insurable
hazards to which the financial institution may be exposed in the operation of its
business on the premises or elsewhere.
(c) The governing body shall be responsible for prescribing at least once in each year
the amount or penal sum of those bonds or policies and the sureties or underwriters
thereon, after giving due and careful consideration to all known elements and factors
constituting the risk or hazards. That action shall be recorded in the minutes of
the governing body. The Commissioner may require a financial institution to furnish
an attested duplicate of the bonds and policies required by this section.
(d) The Commissioner may require a Vermont financial institution to secure additional
bonds or insurance. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 289, eff. July 1, 2022.)