[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2580.412-12]

[Page 591-592]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580_TEMPORARY BONDING RULES--Table of Contents
 
                      Subpart C_Amount of the Bond
 
Sec. 2580.412-12  Relationship of determining the amount of the bond to 
``handling''.

    A determination of whether persons falling within the definition of 
administrator, officer or employee are required to be bonded depends on 
whether they ``handle'' funds or other property. Determining the amount 
of the bond is an aspect of the same process in that it requires a 
determination of what funds or other property are being handled or what 
amounts of funds or other property are subject to risk of loss with 
respect to the duties or powers of an administrator, officer or employee 
of a covered plan. Once this calculation is made, the required amount 
for which that person must be covered by a bond, either by himself or as 
a part of a group or class being bonded under a blanket or schedule 
bond, is not less than 10 percent of the amount ``handled'' or $1,000, 
whichever is the greater amount, except that no such bond shall be 
required in an amount

[[Page 592]]

greater than $500,000 by virtue of these regulations. (See Sec. 
2580.412-17.)