Sec. 505.
(1) The board of directors shall require every employee concerned in the handling of money, accounts, or securities of the savings bank, who can be bonded, to be bonded by a surety company authorized to do business in this state in an amount determined by the board. A surety bond may cover 1 or more employees. The savings bank shall pay for any surety bonds required of its employees.
(2) The commissioner shall require every savings bank to provide reasonable protection and indemnity against burglary, defalcation, and other reasonably required insurable losses. Whenever a savings bank refuses to comply with the requirements of this section, the commissioner may contract for the protection and indemnity and charge the costs to the savings bank. If the charge is not paid, the commissioner shall collect the costs in an action instituted by the attorney general.
History: 1996, Act 354, Imd. Eff. July 1, 1996
Structure Michigan Compiled Laws
Chapter 487 - Financial Institutions
Act 354 of 1996 - Savings Bank Act (487.3101 - 487.3804)
354-1996-5 - Chapter 5 Regulation (487.3501...487.3514)
Section 487.3501 - Impairment of Capital.
Section 487.3502 - Violations; Liability of Directors or Officers.
Section 487.3503 - Officer or Employee as Agent in Sale of Stock or Securities; Prohibition.
Section 487.3504 - Receipt of Consideration or Gratuity Prohibited.
Section 487.3505 - Surety Bonds; Protection Against Insurable Losses.
Section 487.3506 - Reports; Penalty for Failure to Report.
Section 487.3508 - Pledge of Assets.
Section 487.3509 - Deposit by Savings Bank; Limitation.
Section 487.3510 - Insolvency; Transfer of Assets Null and Void.
Section 487.3511 - Property or Casualty Insurance as Condition to Mortgage Loan.
Section 487.3512 - Overdrafts.
Section 487.3514 - Repealed. 2005, Act 192, Imd. Eff. Nov. 7, 2005.