[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2580.412-9]

[Page 599]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2580_TEMPORARY BONDING RULES--Table of Contents
 
                  Subpart B_Scope and Form of the Bond
 
Sec. 2580.412-9  Meaning of fraud or dishonesty.

    The term ``fraud or dishonesty'' shall be deemed to encompass all 
those risks of loss that might arise through dishonest or fraudulent 
acts in handling of funds as delineated in Sec. 2580.412-6. As such, 
the bond must provide recovery for loss occasioned by such acts even 
though no personal gain accrues to the person committing the act and the 
act is not subject to punishment as a crime or misdemeanor, provided 
that within the law of the state in which the act is committed, a court 
would afford recovery under a bond providing protection against fraud or 
dishonesty. As usually applied under state laws, the term ``fraud or 
dishonesty'' encompasses such matters as larceny, theft, embezzlement, 
forgery, misappropriation, wrongful abstraction, wrongful conversion, 
willful misapplication or any other fraudulent or dishonest acts. For 
the purposes of section 13, other fraudulent or dishonest acts shall 
also be deemed to include acts where losses result through any act or 
arrangement prohibited by title 18, section 1954 of the U.S. Code.