Iowa Admin. Code r. 621-8.5

Current through Register Vol. 47, No. 11, December 11, 2024

Rule 621-8.5 - Bond required

Every person required by Iowa Code section 20.25(3)"c" to be bonded shall be bonded to provide protection against loss by reason of act of fraud or dishonesty on the part of such person, directly or through connivance with others.

(1)Bond requirements. The bond of each such person shall be fixed at the beginning of the employee organization's fiscal year and shall be in an amount of not less than 10 percent of the funds handled by such person or that person's predecessor or predecessors, if any, during the preceding fiscal year, but in no case less than $2,000 nor more than $500,000. If the employee organization or the trust in which an employee organization is interested does not have a preceding fiscal year, the amount of the bond shall not be less than $2,000. Such bonds shall have a corporate surety company as surety thereon.

(2)Prohibitions. Any person who is not covered by such bonds shall not be permitted to receive, handle, disburse or otherwise exercise control of the funds or other property of an employee organization or of a trust in which an employee organization is interested. No such bond shall be placed through an agent or broker or with a surety company in which any employee organization or any officer, agent, shop steward or other representative of an employee organization has any direct or indirect interest.

Iowa Admin. Code r. 621-8.5

Amended by IAB January 18, 2017/Volume XXXIX, Number 15, effective 2/22/2017