CHAPTER
Ban 1100 BANK COMMISSIONER
PART
Ban 1101 - 1102 RESERVED
PART
Ban 1103 ANNUAL REPORTS OF INSTITUTIONS
Statutory
Authority: RSA 383:13
Source. #4008, eff 3-3-86; ss by #4532, eff 11-18-88,
EXPIRED: 11-18-94
PART Ban 1104
FIDELITY COVERAGE REQUIREMENTS
Statutory Authority: RSA 383:14
Ban
1104.01 Purpose and Scope. This part imposes requirements for fidelity
bond coverage to indemnify New Hampshire chartered financial institutions
against losses resulting from dishonest or fraudulent acts of officers,
employees and agents of the institution, and acts such as robbery, burglary or
forgery by persons not associated with the institution.
Source. #4025, eff 3-26-86, EXPIRED 3-26-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban
1104.02 Definitions.
(a) "Bank" means a
(1) Guaranty
savings bank;
(2) Mutual
savings bank;
(3) Merchant
bank;
(4)
Cooperative bank;
(5) Building
and loan association;
(6) Savings
and loan association;
(7)
Commercial bank; or
(8) Trust company
with depository powers.
(b) "Credit union" means a
(c) “Nondepository
trust company” means a
Source. #4025, eff 3-26-86, EXPIRED 3-26-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban
1104.03 Fidelity Bond Requirements.
(a) Banks, credit unions and nondepository
trust companies shall:
(1) Obtain
fidelity bond coverage at the time the institution is authorized by the
commissioner to transact business; and
(2) Maintain
such coverage at all times while it remains in operation.
(b) Fidelity bond coverage shall be purchased
from an insurance company:
(1) Rated
“superior” or “excellent” by at least one nationally recognized statistical
rating organization; and
(2) Licensed
or approved by the
(c) Fidelity bonds at a minimum shall provide
coverage for dishonest or fraudulent acts of all employees, including directors
managers or trustees, when performing duties of an employee, all officers, and
all agents of the institution, and acts such as robbery, burglary or forgery by
persons not associated with the institution.
Source. #4025, eff 3-26-86, EXPIRED 3-26-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban
1104.04 Bank and Nondepository
Trust Company Requirements.
(a) The board of directors, managers or trustees
of the bank or nondepository trust company shall
determine the amount of fidelity bond coverage, premised upon consideration of
relevant factors, including, but not limited to, the following:
(1) Internal
auditing safeguards employed;
(2) Number
of employees;
(3) Amount of
deposit liabilities and assets under management and administration; and
(4) Amount
of cash and securities normally held by the bank or nondepository
trust company.
(b) Fidelity bonds shall cover each officer, employee and agent who:
(1) Has control over or access to cash, securities, or
other property of the institution; or
(2) Is otherwise actively
concerned in the administration of the bank or nondepository
trust company.
(c) Directors, managers and trustees of the bank
or nondepository trust company shall not serve as
sureties on the fidelity bonds.
(d) The
acceptable bond format for banks and nondepository
trust companies shall, at a minimum:
(1) For
banks, meet the industry standard format, Financial Institution Bond Standard Form No. 24 dated 2004;
(2) For nondepository trust companies, meet the industry standard
format, Financial Institution Bond
Standard Form No. 14 dated 1987; or
(3) Contain
insuring provisions equivalent to those found in the standard bond formats in
(1) or (2) above, whichever is applicable.
Source. #4025, eff 3-26-86: rpld
by #4101, eff 7-24-86
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban 1104.05 Credit Union
Requirements.
(a) Credit unions shall obtain and maintain fidelity
bond coverage in compliance with the minimum amounts required in the National
Credit Union Administration Regulation Part 713 as amended May 13, 2008.
(b) The
maximum amount of deductibles allowed to a credit union shall:
(1) Be based
on the credit union's total assets; and
(2) Not
exceed the deductible amounts set forth in the National Credit Union
Administration Regulations Part 713 amended May 13, 2008.
(c) A deductible may be applied separately to one
or more insuring clauses in a blanket bond.
(d) Notwithstanding Ban 1104.05(b), a deductible
shall not exceed 10 percent of a credit union's guaranty fund unless the credit
union creates a segregated contingency reserve for the amount of the excess.
(e) Valuation of allowance accounts, such as
allowances for loan losses, shall not be considered part of the guaranty fund
when determining the maximum deductible.
(f) The acceptable bond format for credit unions
shall, at a minimum:
(1) Meet the
industry standard format, Financial Institution Credit Union Blanket Bond
Standard Form No. 23, dated 1950; or
(2) Be an
equivalent that contains the same major areas of insuring agreements found in
the standard bond format in (1) above.
Source. #4025, eff 3-26-86; ss by #4101, eff 7-24-86,
EXPIRED 7-24-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban
1104.06 Notification Upon Termination
and Cancellation.
(a) Fidelity bonds shall include provisions
requiring the surety to give written notice to the commissioner:
(1) Ten days
in advance of the cancellation or termination of a bond when such bond is cancelled
or terminated in its entirety; and
(2)
Immediately when such bond is cancelled or terminated in its entirety
with less than 10 days notice.
(b) A bank, nondepository
trust company or credit union shall give written notice to the commissioner
within 10 days after a bond is cancelled or terminated for a specific employee,
officer, or agent of the bank, nondepository trust
company or credit union.
Source. #4025, eff 3-26-86; amd
by #4178, eff 12-4-86, EXPIRED: 3-26-92 and 12-4-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban 1104.07 Notification of
Changes in Coverage.
(a) Banks, nondepository
trust companies and credit unions shall give written notice to the commissioner
within 10 days of the following changes in fidelity bond coverage:
(1) Type of
coverage;
(2) Increase
in coverage;
(3) Decrease
in coverage if the decrease equals less than 25 percent of the total aggregate
amount of the coverage;
(4) Name of
underwriter; or
(5) Name of
insured.
(b) The notification required in (a) above shall be made a part of the official
minutes of the board of directors, managers or trustees.
(c) A copy of the notification shall be
maintained in the bank's, nondepository trust
company’s or credit union’s insurance file for future reference.
Source. #4025, eff 3-26-86, EXPIRED: 3-26-92
New. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban
1104.08 Prior Approval of Decrease in
Coverage.
(a) Banks, nondepository
trust companies and credit unions shall submit a written request for
commissioner approval at least 30 days in advance of a proposal to reduce
fidelity bond coverage by 25 percent or more of the total aggregate amount of
the coverage.
(b) The commissioner shall approve or deny the
request within 30 days of receipt of the request.
(c) The commissioner shall:
(1) Approve a request for a
reduction in fidelity bond coverage if such a reduction will not affect the
safety and soundness of the institution; or
(2) Deny such a request only if
the reduction will affect the safety and soundness of the institution.
Source. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban 1104.09 Duties of Board of
Directors or Trustees.
(a) The board of directors, managers or trustees
of a bank, nondepository trust company or credit
union, shall, at least annually, review in detail the fidelity bond coverage in
force in order to ensure such coverage meets the requirements of Ban
1104.04(a).
(b) Documentation of the board of directors' or
trustees' periodic review and approval of fidelity bond coverage shall be
included as part of the minutes of the meeting at which the board approves
coverage and reviews coverage.
Source. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10 (from Ban 1104.08)
Ban
1104.10 Additional Coverage. A bank, nondepository
trust company or credit union may maintain additional fidelity bond coverage
through the use of endorsements, riders or other forms of supplemental
coverage.
Source. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
Ban 1104.11 Bonds for Agents.
(a) An agent appointed by the bank,
nondepository trust company or credit union, the
agent may provide a fidelity bond in an amount at least twice the average
monthly collections of such agent, provided:
(1) Such agent makes settlement with the bank, nondepository trust company or credit union at least
monthly; and
(2) Such bond is approved by the board of directors, managers or
trustees of the bank, nondepository trust company or
credit union.
(b) An agent that is a financial institution
insured by the Federal Deposit Insurance Corporation or the National Credit
Union Administration shall not need a bond.
Source. #6536, eff 7-2-97, EXPIRED: 7-2-05
New. #9767, eff 8-21-10, EXPIRED: 8-21-18
PART
Ban 1105 PURCHASE AND
Statutory
Authority: RSA 383:9
Ban 1105.01 1105.03
Source. #4100, eff 7-24-86, EXPIRED: 7-2-90
New. #6311, eff 8-3-96, EXPIRED: 8-3-04
Ban 1105.04
Source. #4717, eff 12-6-89, EXPIRED 12-6-95
New. #6311, eff 8-3-96, EXPIRED: 8-3-04
PART
Ban 1106 CONSUMER COMPLAINTS AGAINST
BANKS
Statutory
Authority: RSA 383:10-d and RSA 541-A:16,
I(b)(1)
Ban 1106.01
Source. #5011, eff 11-28-90; ss by #6312, eff 8-3-96,
EXPIRED: 8-3-04
PART
Ban 1107 AMENDMENTS TO CREDIT UNION
BYLAWS
Ban 1107.01 Amendments to Credit Union Bylaws.
(a)
A credit union organized under the provisions of RSA 394-B or chartered
prior to the passage thereof seeking to amend its bylaws shall petition the
commissioner in writing requesting authorization to amend by providing:
(1) A certified copy of the current bylaws
conspicuously labeled “Current Bylaws”;
(2) An annotated copy of the proposed amended bylaws clearly setting forth the
deletions and additions to the current bylaws conspicuously labeled “Annotated
Bylaws”; and
(3) A certified copy of the vote of the credit
union’s board of directors authorizing the amendment.
(b)
The commissioner shall approve a petition and the proposed amendments if
the bylaws:
(1) Comply with RSA 394-B:5 and any other
applicable provision of RSA 394-B; and
(2) Are approved in accordance with Ban 1107.02,
if seeking a change in membership qualifications.
(c)
Upon receipt of the commissioner’s approval of the bylaw amendment petition,
the credit union shall provide the commissioner with a certified copy of the
revised bylaws.
Source. #8486, eff 11-11-05; ss by #10524, eff
2-20-14
Ban
1107.02 Expanding the Qualifications
for Membership.
(a)
A petition seeking to amend bylaws by expanding the qualifications for
membership shall provide parameters limiting the qualifications so that the
membership is no larger than:
(1) Individuals who live, work, worship or attend
school in the State of
(2) Individuals who are part of a clearly defined
group or located in a particular geographic area.
(b)
A petition seeking to expand the qualifications for membership under
(a)(2) above that expands the field of membership to individuals living outside
the State of
(c)
A petition seeking to amend bylaws for qualifications for membership
shall include a business plan
demonstrating the credit union's ability to serve the membership and include:
(1) The benefit to the credit union of the change
in qualifications for membership;
(2) A plan for delivery of services to the new
membership;
(3) A procedure to verify individuals meet the requirements of qualifications for
membership; and
(4) A demonstration of the credit union’s
financial ability to complete the plan.
(d)
A request for changes to qualifications for membership shall be posted
30 days prior to the change on the department web site.
(e)
Within 30 days of publication on the department web site, any party may
notify the commissioner of its interest in the petition.
(f)
Communications regarding a credit union’s petition to enlarge its field
of membership shall be:
(1) In writing; and
(2) Received by the department prior to the
conclusion of the 30 day notice period.
(g)
A public hearing on the petition shall be held if the information
submitted pursuant to (c) above is insufficient upon which to base the
commissioner’s decision.
(h)
A petition to amend the bylaws to change the qualifications for
membership shall be approved after:
(1) Consideration of comments received or
testimony provided during a public hearing if one is held; and
(2) The commissioner finds that the credit union
is able to serve the proposed membership in accordance with the business plan
provided in (c).
Source. #10524, eff 2-20-14
APPENDIX
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Rule |
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Ban 1104 |
RSA 383:14,I II |
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Ban
1107 |
RSA
394-B:6 |
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Ban
1107.01 |
RSA
394-B:3-a, I. |
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