{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/6.2-1127.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/6.2-1127.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/6.2-1127.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/6.2-1127.html"}],"law_id":82490,"edition_id":1,"section_id":82490,"structure_id":14426,"section_number":"6.2-1127","catch_line":"Bonds of officers and employees","history":"Code 1950, \u00a7 6-201.36; 1960, c. 402; 1966, c. 584, \u00a7 6.1-166; 1972, c. 796, \u00a7 6.1-195.43; 1979, c. 60; 1985, c. 425, \u00a7 6.1-194.20; 1986, c. 628; 2010, c. 794.","full_text":"A\n\nThe directors of every savings institution shall require a bond with corporate surety from each of the active officers and employees of the institution as an indemnity for any loss the institution may sustain as a result of such person’s fraud, dishonesty, theft, or embezzlement. In lieu of individual bonds a blanket bond with corporate surety covering all active officers and employees of the institution may, with the approval of the board of directors, be obtained. The Commission shall, not less than twice during any period of three consecutive calendar years, examine all such bonds and pass on their sufficiency and either the board of directors or the Commission may require new or additional bonds at any time. The corporate surety shall have a license issued by the Commission.B\n\nIf a savings institution determines that it is unable to obtain the surety bond coverage required by subsection A, it shall immediately notify the Commission. The Commission shall forthwith investigate to determine whether such coverage is available to the institution. If the Commission determines, after such investigation, that such coverage is not reasonably available to the institution, the Commission may, but shall not be required to, close the institution solely because of the unavailability of such coverage under § 6.2-1199. If the institution is not closed because of the unavailability of such coverage, the Commission shall closely monitor the institution to ensure that such coverage is obtained as soon as possible, and shall take such further action under § 6.2-1199 or 6.2-1200 as the Commission deems necessary.C\n\nThe institution, at its cost, may also obtain insurance to protect its directors, officers, and employees against lawsuits arising out of claims of negligence or misconduct.","order_by":null,"text":{"0":{"id":295554,"text":"The directors of every savings institution shall require a bond with corporate surety from each of the active officers and employees of the institution as an indemnity for any loss the institution may sustain as a result of such person’s fraud, dishonesty, theft, or embezzlement. In lieu of individual bonds a blanket bond with corporate surety covering all active officers and employees of the institution may, with the approval of the board of directors, be obtained. The Commission shall, not less than twice during any period of three consecutive calendar years, examine all such bonds and pass on their sufficiency and either the board of directors or the Commission may require new or additional bonds at any time. The corporate surety shall have a license issued by the Commission.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":295555,"text":"If a savings institution determines that it is unable to obtain the surety bond coverage required by subsection A, it shall immediately notify the Commission. The Commission shall forthwith investigate to determine whether such coverage is available to the institution. If the Commission determines, after such investigation, that such coverage is not reasonably available to the institution, the Commission may, but shall not be required to, close the institution solely because of the unavailability of such coverage under § 6.2-1199. If the institution is not closed because of the unavailability of such coverage, the Commission shall closely monitor the institution to ensure that such coverage is obtained as soon as possible, and shall take such further action under § 6.2-1199 or 6.2-1200 as the Commission deems necessary.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":295556,"text":"The institution, at its cost, may also obtain insurance to protect its directors, officers, and employees against lawsuits arising out of claims of negligence or misconduct.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14426,"edition_id":1,"name":"Incorporation; Certificate of Authority; Corporate Administration","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13490,"metadata":{},"date_created":"2026-06-26 03:48:06","date_modified":"2026-06-26 03:48:06","permalink":{"id":264161,"object_type":"structure","relational_id":14426,"identifier":"2","token":"6.2\/II\/11\/2","url":"\/6.2\/II\/11\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13490,"edition_id":1,"name":"Savings Institutions","identifier":"11","label":"chapter","depth":3,"order_by":1,"parent_id":13000,"metadata":{},"date_created":"2026-06-26 03:45:01","date_modified":"2026-06-26 03:45:01","permalink":{"id":264101,"object_type":"structure","relational_id":13490,"identifier":"11","token":"6.2\/II\/11","url":"\/6.2\/II\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13000,"edition_id":1,"name":"Depository Institutions and Trust Organizations","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12852,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":263685,"object_type":"structure","relational_id":13000,"identifier":"II","token":"6.2\/II","url":"\/6.2\/II\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12852,"edition_id":1,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:56","date_modified":"2026-06-26 03:43:56","permalink":{"id":263249,"object_type":"structure","relational_id":12852,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":67165,"structure_id":14426,"section_number":"6.2-1114","catch_line":"Application of Virginia Stock Corporation Act and Virginia Nonstock Corporation Act","url":"\/6.2-1114\/","token":"6.2\/II\/11\/2\/6.2-1114","metadata":false},{"id":67065,"structure_id":14426,"section_number":"6.2-1115","catch_line":"Formation of state savings institutions","url":"\/6.2-1115\/","token":"6.2\/II\/11\/2\/6.2-1115","metadata":false},{"id":55786,"structure_id":14426,"section_number":"6.2-1116","catch_line":"Corporation name","url":"\/6.2-1116\/","token":"6.2\/II\/11\/2\/6.2-1116","metadata":false},{"id":86871,"structure_id":14426,"section_number":"6.2-1117","catch_line":"Par value of shares; payment of shares; reacquisitions of shares or acceptance thereof as security; how subscriptions to stock to be paid; disposition of money received before institution opens; stock option plans","url":"\/6.2-1117\/","token":"6.2\/II\/11\/2\/6.2-1117","metadata":false},{"id":57320,"structure_id":14426,"section_number":"6.2-1118","catch_line":"Certificate of authority to do business","url":"\/6.2-1118\/","token":"6.2\/II\/11\/2\/6.2-1118","metadata":false},{"id":83031,"structure_id":14426,"section_number":"6.2-1119","catch_line":"Commissions and other fees for sale of stock not permitted","url":"\/6.2-1119\/","token":"6.2\/II\/11\/2\/6.2-1119","metadata":false},{"id":73082,"structure_id":14426,"section_number":"6.2-1120","catch_line":"Minimum capital requirement","url":"\/6.2-1120\/","token":"6.2\/II\/11\/2\/6.2-1120","metadata":false},{"id":79467,"structure_id":14426,"section_number":"6.2-1121","catch_line":"Board of directors","url":"\/6.2-1121\/","token":"6.2\/II\/11\/2\/6.2-1121","metadata":false},{"id":82570,"structure_id":14426,"section_number":"6.2-1122","catch_line":"Meetings of board of directors","url":"\/6.2-1122\/","token":"6.2\/II\/11\/2\/6.2-1122","metadata":false},{"id":78474,"structure_id":14426,"section_number":"6.2-1123","catch_line":"Notice of meetings of members; determining members entitled to notice or to vote","url":"\/6.2-1123\/","token":"6.2\/II\/11\/2\/6.2-1123","metadata":false},{"id":73534,"structure_id":14426,"section_number":"6.2-1124","catch_line":"Voting rights; proxies","url":"\/6.2-1124\/","token":"6.2\/II\/11\/2\/6.2-1124","metadata":false},{"id":84832,"structure_id":14426,"section_number":"6.2-1125","catch_line":"Access to books and records; communication with members","url":"\/6.2-1125\/","token":"6.2\/II\/11\/2\/6.2-1125","metadata":false},{"id":69406,"structure_id":14426,"section_number":"6.2-1126","catch_line":"Audit of savings institution; report","url":"\/6.2-1126\/","token":"6.2\/II\/11\/2\/6.2-1126","metadata":false},{"id":82490,"structure_id":14426,"section_number":"6.2-1127","catch_line":"Bonds of officers and employees","url":"\/6.2-1127\/","token":"6.2\/II\/11\/2\/6.2-1127","metadata":false},{"id":70597,"structure_id":14426,"section_number":"6.2-1128","catch_line":"Loans to executive officers or directors","url":"\/6.2-1128\/","token":"6.2\/II\/11\/2\/6.2-1128","metadata":false},{"id":74367,"structure_id":14426,"section_number":"6.2-1129","catch_line":"Overdrafts by savings institution officers, directors or employees","url":"\/6.2-1129\/","token":"6.2\/II\/11\/2\/6.2-1129","metadata":false},{"id":63419,"structure_id":14426,"section_number":"6.2-1130","catch_line":"Reserves; surplus and undivided profits","url":"\/6.2-1130\/","token":"6.2\/II\/11\/2\/6.2-1130","metadata":false},{"id":56309,"structure_id":14426,"section_number":"6.2-1131","catch_line":"Liability of members of mutual savings institutions","url":"\/6.2-1131\/","token":"6.2\/II\/11\/2\/6.2-1131","metadata":false},{"id":60084,"structure_id":14426,"section_number":"6.2-1132","catch_line":"Mutual capital certificates","url":"\/6.2-1132\/","token":"6.2\/II\/11\/2\/6.2-1132","metadata":false}],"previous_section":{"id":69406,"structure_id":14426,"section_number":"6.2-1126","catch_line":"Audit of savings institution; report","url":"\/6.2-1126\/","token":"6.2\/II\/11\/2\/6.2-1126","metadata":false},"next_section":{"id":70597,"structure_id":14426,"section_number":"6.2-1128","catch_line":"Loans to executive officers or directors","url":"\/6.2-1128\/","token":"6.2\/II\/11\/2\/6.2-1128","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-1127\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 7 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1960, chapter 402; in 1966, chapter 584; in 1972, chapter 796; in 1979, chapter 60; in 1985, chapter 425; in 1986, chapter 628; in 2010, chapter 794<\/a>.<\/p>","references":false,"refers_to":[{"id":60843,"section_number":"6.2-1199","catch_line":"Powers of Commission in case of nonobservance of law, noncompliance with orders, insufficient reserves or insolvency; appointment of Federal Deposit Insurance Corporation as receiver","order_by":null,"url":"\/6.2-1199\/"},{"id":85960,"section_number":"6.2-1200","catch_line":"Removal of director or officer; appeal; penalty for acting after removal","order_by":null,"url":"\/6.2-1200\/"}],"permalink":{"id":264215,"object_type":"law","relational_id":82490,"identifier":"6.2-1127","token":"6.2\/II\/11\/2\/6.2-1127","url":"\/6.2-1127\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/6.2-1127\/","token":"6.2\/II\/11\/2\/6.2-1127","dublin_core":{"Title":"Bonds of officers and employees","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-1127","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The directors of every savings institution<\/span> shall require a bond<\/span> with corporate surety<\/span> from each of the active officers and employees of the institution as an indemnity for any loss the institution may sustain<\/span> as a result of such person<\/span>’s fraud<\/span>, dishonesty, theft, or embezzlement<\/span>. In lieu of individual bonds<\/span> a blanket bond<\/span> with corporate surety<\/span> covering all active officers and employees of the institution may, with the approval of the board of directors, be obtained. The Commission<\/span> shall, not less than twice during any period of three consecutive calendar years, examine all such bonds<\/span> and pass on their sufficiency and either the board of directors or the Commission<\/span> may require new or additional bonds<\/span> at any time. The corporate surety<\/span> shall have a license issued by the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If a savings institution<\/span> determines that it is unable to obtain the surety<\/span> bond<\/span> coverage required by subsection A, it shall immediately notify the Commission<\/span>. The Commission<\/span> shall forthwith investigate to determine whether such coverage is available to the institution. If the Commission<\/span> determines, after such investigation, that such coverage is not reasonably available to the institution, the Commission<\/span> may, but shall not be required to, close the institution solely because of the unavailability of such coverage under § 6.2-1199<\/a>. If the institution is not closed because of the unavailability of such coverage, the Commission<\/span> shall closely monitor the institution to ensure that such coverage is obtained as soon as possible, and shall take such further action under § 6.2-1199<\/a> or 6.2-1200<\/a> as the Commission<\/span> deems necessary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The institution, at its cost, may also obtain insurance to protect its directors, officers, and employees against lawsuits<\/span> arising out of claims of negligence<\/span> or misconduct. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBONDS OF OFFICERS AND EMPLOYEES (\u00a7 6.2-1127)\n\nA. The directors of every savings institution shall require a bond with\ncorporate surety from each of the active officers and employees of the\ninstitution as an indemnity for any loss the institution may sustain as a result\nof such person’s fraud, dishonesty, theft, or embezzlement. In lieu of\nindividual bonds a blanket bond with corporate surety covering all active\nofficers and employees of the institution may, with the approval of the board of\ndirectors, be obtained. The Commission shall, not less than twice during any\nperiod of three consecutive calendar years, examine all such bonds and pass on\ntheir sufficiency and either the board of directors or the Commission may\nrequire new or additional bonds at any time. The corporate surety shall have a\nlicense issued by the Commission.\n\nB. If a savings institution determines that it is unable to obtain the surety\nbond coverage required by subsection A, it shall immediately notify the\nCommission. The Commission shall forthwith investigate to determine whether such\ncoverage is available to the institution. If the Commission determines, after\nsuch investigation, that such coverage is not reasonably available to the\ninstitution, the Commission may, but shall not be required to, close the\ninstitution solely because of the unavailability of such coverage under §\n6.2-1199. If the institution is not closed because of the unavailability of such\ncoverage, the Commission shall closely monitor the institution to ensure that\nsuch coverage is obtained as soon as possible, and shall take such further\naction under § 6.2-1199 or 6.2-1200 as the Commission deems necessary.\n\nC. The institution, at its cost, may also obtain insurance to protect its\ndirectors, officers, and employees against lawsuits arising out of claims of\nnegligence or misconduct.\n\nHISTORY: Code 1950, \u00a7 6-201.36; 1960, c. 402; 1966, c. 584, \u00a7 6.1-166; 1972,\nc. 796, \u00a7 6.1-195.43; 1979, c. 60; 1985, c. 425, \u00a7 6.1-194.20; 1986, c. 628;\n2010, c. 794.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}