[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: 29CFR453.22]

[Page 210-211]
 
                             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. 453.22  Prohibition of certain activities by unbonded persons.

    (a) Section 502(a) provides that persons who are not covered by 
bonds as required by that section shall not be permitted to receive, 
handle, disburse, or otherwise exercise custody or control of the funds 
or other property of a labor organization or of a trust in which a labor 
organization is interested. This prohibits personnel who are

[[Page 211]]

required to be bonded, as explained in Sec. 453.8 from performing any 
of these acts without being covered by the required bonds. In addition, 
this provision makes it unlawful for any person with power to do so to 
delegate or assign the duties of receiving, handling, disbursing, or 
otherwise exercising custody or control of such funds or property to any 
person who is not bonded in accordance with the provisions of section 
502(a).
    (b) The legislative history of the Act indicates, however, that it 
was not the intent of Congress to make compliance with the bonding 
requirements of section 502(a) a condition on the right of banks or 
other financial institutions to serve as the depository of the funds of 
labor organizations or trusts. Similarly, it appears that the provisions 
of that section do not require the bonding of brokers or other 
independent contractors who have contracted with labor organizations or 
trusts for the performance of functions which are normally not carried 
out by such labor organizations' or trusts' own officials or employees, 
such as the buying of securities, the performance of other investment 
functions, or the transportation of funds by armored truck. \12\
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    \12\ See Sec. 453.6(b).
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