[Code of Federal Regulations]
[Title 29, Volume 2]
[Revised as of July 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR453.17]

[Page 208]
 
                             TITLE 29--LABOR
 
  CHAPTER IV--OFFICE OF LABOR-MANAGEMENT STANDARDS, DEPARTMENT OF LABOR
 
PART 453_GENERAL STATEMENT CONCERNING THE BONDING REQUIREMENTS OF THE 
LABOR-MANAGEMENT REPORTING AND DISCLOSURE ACT OF 1959--Table of Contents
 
Sec. 453.17  Term of the bond.

    The amount of any required bond must in each instance be based on 
funds handled ``during the preceding fiscal year,'' and must be fixed 
``at the beginning'' of an organization's fiscal year--that is, as soon 
after the date when such year begins as the necessary information from 
the preceding fiscal year can practicably be ascertained. This does not 
mean, however, that a new bond must be obtained each year. There is 
nothing in the Act which prohibits a bond for a term longer than one 
year, with whatever advantages such a bond might offer by way of a lower 
premium, but at the beginning of each fiscal year during its term the 
bond must be in at least the requisite amount. If it is below that level 
at that time for any reason, it would then be necessary either to modify 
the existing bond to increase it to the proper amount or to obtain a 
supplementary bond. In either event, the terms upon which this could 
best be done would be left to the parties directly concerned.

                              Form of Bonds