[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: 29CFR2580.412-24]

[Page 597]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580_TEMPORARY BONDING RULES--Table of Contents
 
                          Subpart F_Exemptions
 
Sec. 2580.412-24  Conditions of exemption.

    (a) This exemption obtains only with respect to the requirement of 
section 13(a) of the Act that all bonds required thereunder shall have 
as surety thereon, a corporate surety company, which is an acceptable 
surety on Federal bonds under authority granted by the Secretary of the 
Treasury pursuant to the Act of July 30, 1947 (6 U.S.C. 6-13).
    (b) The exemption is granted upon the condition that if for any 
reason the authority of any such company to act as an acceptable 
reinsuring company is terminated, the administrator of a plan insured 
with such company, shall, upon knowledge of such fact, be responsible 
for securing a new bond with a company acceptable under the Act and the 
exemptions issued thereunder.
    (c) In obtaining or renewing a bond, the plan administrator shall 
ascertain that the surety is one which satisfies the requirements of the 
Act and the exemptions thereunder. If the bond is for a term of more 
than one year, the plan administrator, at the beginning of each 
reporting year, shall ascertain that the surety continues to do so.

            Bonds Placed With Underwriters at Lloyds, London