FINANCIAL INSTITUTION BOND

(a) A savings bank shall maintain a financial institution bond that provides adequate coverage to protect the savings bank from loss: (1) by or through dishonest or criminal action or omission, including fraud, theft, or misplacement, by any of the following persons: (A) an officer or employee of the savings bank; (B) an attorney retained by the savings bank; (C) a nonemployee performing data processing services for the savings bank; or (D) a director of the savings bank performing a duty of an officer or employee; or (2) by other perils such as robbery, burglary, forgery, or alteration. (b) A savings bank that employs a collection agent who is not covered by the bond required by Subsection (a) shall: (1) ensure that the savings bank is included as a loss payee in the collection agent's crime coverage; and (2) obtain a certificate of insurance evidencing the sufficiency of the collection agent's crime coverage. (c) Subject to rules adopted under Subsection (e), the board shall, at least annually, review and approve: (1) the coverage, including the amount of the coverage, provided by the bond and the form of the bond; and (2) the sustainability of the corporate surety or insurer that issued the bond. (d) The bond must provide that a cancellation or other termination by the corporate surety or insurer or by the insured is not effective until the earlier of: (1) the date the commissioner approves; or (2) the 30th day after the date written notice of the cancellation is given to the commissioner. (e) The finance commission may adopt rules establishing: (1) the coverage, including the amount of the coverage, that must be provided by the bond and the form of the bond; and (2) the sustainability of the corporate surety or insurer that issues the bond.