48.13 CONDITIONS OF BONDS.
Subdivision 1. Securities.
If a bond is given, it shall be in favor of the bank and shall have
one corporate surety, which shall be a solvent insurance corporation in good standing authorized
to do business in Minnesota, or at least five individual sureties, not one of whom shall be an
officer, director, or stockholder of the bank, and each of whom shall justify in a sum equal to the
penalty of the bond and, in addition thereto, each individual surety shall furnish to the bank, in
connection with the bond, a verified financial statement showing solvency and responsibility,
which statement shall be renewed and revised annually by each surety. If a contract of insurance
is secured, it shall be in favor of the bank and shall be executed by some insurance company
possessing the qualifications heretofore specified. No cancellation or termination at the request of
the underwriter of a bond or contract of insurance required by section
shall be effective
unless the underwriter gives in advance at least 60 days' written notice by registered mail to the
commissioner of commerce.
Subd. 2. Securities in lieu of bond.
With the prior written approval of the commissioner
and in lieu of the corporate surety or five individual sureties, there may be posted a deposit in
securities of a form and amount acceptable to the commissioner. These funds are under the control
of the commissioner for the purposes of section
. All deposits must remain in the custody of
the commissioner of finance and pursuant to section
may be released only upon order
from the commissioner. These control and custody requirements must not prevent any interest or
dividend earnings accruing on the funds posted to be paid over to pledgor.
History: (7699-2) 1925 c 351 s 2; 1984 c 576 s 10; 1Sp1985 c 13 s 182; 1986 c 444; 1987 c
384 art 2 s 10; 2003 c 112 art 2 s 50