To comply with the bonding requirements of the LMRDA and the CSRA, a union with property and annual receipts that exceed $5,000 in value, or a trust, must be able to answer yes to each of the following questions:
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Yes |
No |
Questions |
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Are all officers, agents, shop stewards, representatives, or employees who handle funds or other property of your union or trust bonded? |
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Does the bond insure for losses caused by fraud or dishonesty on the part of each bonded person directly or through a scheme with others? |
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Does the bond provide for recovery of lost funds by the union or trust whose funds are covered? |
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If the bond covers more than one union or trust, is recovery from the surety company provided for each to the same extent as if it were bonded separately? |
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Is the amount of the bond for each covered person at least 10 percent of the funds handled by that person during the preceding fiscal year? (The amount of the bond for any one person with any one organization is not required to be over $500,000, no matter what amount of funds that person handles.) |
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Was the bond obtained from a surety company which is on the Secretary of the Treasury’s list of acceptable sureties for Federal bonds? |
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Was the bond obtained from a surety company in which no union and no officers, agents, shop stewards, or other representatives of any union have a direct or indirect interest, and with a broker or agent (if used) in which none of those officials have such an interest? |
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Are all persons who are not properly bonded excluded from handling funds or other property of your union or trust? |
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If your union’s bonding requirements have increased from last year’s coverage, have you obtained amended coverage? |
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Does the bond provide for recovery of all funds lost without a deductible or other form of self-insurance? |
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