C.R.S. Section 11-109-502
Director and officer insurance and fidelity bonds

  • legislative declaration

(1)

The general assembly hereby finds, determines, and declares that the following is enforceable and in conformity with the public policy of this state, as expressed in this article, including the provisions of section 11-101-102:

(a)

Any insurance policy, form, contract, endorsement, or certificate in effect or issued on or after April 30, 1993, that provides insurance coverage to directors or officers, or both, of a trust company but that does not grant coverage or that excludes coverage for claims made by any depository insurance organization or other state or federal corporation, organization, entity, or agency acting as receiver, conservator, or liquidator of such trust company, whether in its own name or in behalf of any other person or entity; or

(b)

Any fidelity bond, financial institution bond, or depository institution bond in effect or issued on or after April 30, 1993, that provides for termination of such bond upon the taking over of any trust company by a receiver or other liquidator or by state or federal officials.

(2)

No provision of this article shall be construed to contravene or modify the expressed public policy set forth in this section.

(3)

The directors of a trust company shall:

(a)

Require good and sufficient fidelity bonds on all active officers and employees, whether or not they draw salary or compensation, which bonds must provide for indemnity to the trust company on account of any losses sustained by it as the result of any dishonest, fraudulent, or criminal conduct by them acting independently or in collusion or combination with any person. The bonds may be in individual, schedule, or blanket form, and the trust company shall pay the premiums for the bonds.

(b)

Require suitable insurance protection to the trust company against burglary, robbery, theft, and other insurable hazards to which the trust company may be exposed in the operations of its business on the premises or elsewhere; and

(c)

Prescribe, at least once in each calendar year, the amount or penal sum of the bonds and policies specified in this section and the sureties or underwriters thereon after giving due and careful consideration to all known elements and factors constituting such risk or hazard. The directors shall record the action in the board’s minutes.

Source: Section 11-109-502 — Director and officer insurance and fidelity bonds - legislative declaration, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-11.­pdf (accessed Oct. 20, 2023).

11‑109‑101
Definitions 11‑109‑102
Use of words “trust” or “trust company” 11‑109‑103
Applicability of powers of banking board and bank commissioner to trust companies 11‑109‑104
Powers - banking board - commissioner 11‑109‑105
No private right of action 11‑109‑201
Powers of trust companies 11‑109‑202
Offices of trust companies 11‑109‑203
Activities not requiring a charter 11‑109‑204
Federal deposit insurance required 11‑109‑205
Transactions with affiliates 11‑109‑206
Trust company organized as a limited liability company 11‑109‑301
Incorporators 11‑109‑302
Application fee 11‑109‑303
Assessments 11‑109‑304
Capital 11‑109‑305
Application for charter 11‑109‑306
Procedure for granting or denying charter 11‑109‑401
Acquisition of majority control over an existing trust company - definitions 11‑109‑402
Reports to the banking board and to the commissioner 11‑109‑501
Directors’ meetings - duties 11‑109‑502
Director and officer insurance and fidelity bonds - legislative declaration 11‑109‑601
Penalty for noncompliance with the law 11‑109‑602
Assessment of civil money penalties by banking board 11‑109‑603
No indemnification or insurance against civil money penalties 11‑109‑604
Removal of director, officer, or other person 11‑109‑605
Suspension of director, officer, or other person 11‑109‑606
Informal enforcement authority 11‑109‑607
Receipt of deposits while insolvent 11‑109‑701
Discontinuance of trust business - voluntary liquidation and dissolution 11‑109‑702
Involuntary liquidation 11‑109‑703
Emergency grant of new charter 11‑109‑704
Liquidation by commissioner - procedure 11‑109‑801
Appeals procedure 11‑109‑802
Injunctions - appeals 11‑109‑901
Reserves against deposits 11‑109‑902
Investments 11‑109‑903
Substitution of trust companies 11‑109‑904
Laws governing individuals apply 11‑109‑905
Separation of fiduciary funds 11‑109‑906
Funds awaiting investment or distribution 11‑109‑907
Extensions of credit
Green check means up to date. Up to date

Current through Fall 2024

§ 11-109-502’s source at colorado​.gov