Virginia Code 6.2-1016: Bond required.
A. No applicant shall obtain a certificate without filing with the Commission, and maintaining continuously thereafter, a surety bond in such amount as the Commission may from time to time require.
Terms Used In Virginia Code 6.2-1016
- Commission: means the State Corporation Commission. See Virginia Code 6.2-100
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Person: means any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or other legal or commercial entity. See Virginia Code 6.2-100
- Trust company: means a corporation, including an affiliated trust company, that is authorized to engage in the trust business under Article 2 (§ Virginia Code 6.2-1000
B. In no event shall the amount of the surety bond be less than $1 million.
C. The surety bond required by this section shall be for the benefit of:
1. Any person damaged as a result of a violation of the provisions of, or any regulation adopted pursuant to, this chapter;
2. Any person damaged by the negligence, fraud, or embezzlement of a trust company organized under this article or its directors, officers, or employees; and
3. Any person damaged by any other breach of trust of any trust company organized under this article or its directors, officers, or employees.
D. The Commission may revoke the certificate of any trust company that the Commission finds has failed to maintain a bond as required by this section.
1993, c. 432, § 6.1-32.17; 2010, c. 794.