Olms interpretative Manual

BONDING

530. 
     Bonding In General
     
531. 
     WhoMust Be BondedIn General
     

531.100 WhoMustBeBonded:“Person”
531.200 WhoMustBeBonded:“Duties”
531.300 WhoMustBeBonded:“Labor Organization”
531.400 Who Must Be Bonded:“Trust in Which a Labor Organization isInterested”
531.500 WhoMustBeBonded:“Funds”
531.600 WhoMustBeBonded:“Handled”
531.700 WhoMustBeBonded:“Exclusions”

530. 
     Amountof Bond-Term of Bond
     
531. 
     TypeofBond:Honesty
     
532. 
     FormofBond:Individual orScheduleDesignation ofInsured
     
533. 
     Approved Surety
     
534. 
     ConflictofInterest -Bonding
     
535. 
     PaymentofPremium
     

538-539 (NumbersReserved)

540 ProhibitionAgainstCertain FinancialAid toOfficers

541 UnionLoans, Director Indirect
542-549 (NumbersReserved)

550 ProhibitionAgainstHoldingOfficeorEmployment

551 ProhibitionAgainstCommunists
552 Prohibitionagainst Convicts
553 CrimesCoveredby Section504
554-579 (NumbersReserved)

580 EmbezzlementandOtherCriminalConversions

581-599 (NumbersReserved)

SPECIALNOTE

TEMPORARYPAGE-BONDING

October1965

Experience gained during the years since the effective date of section 502(a) in September1959hassuggestedthedeletionofanumberofreferencestoolderrulingsinthisrevisedsectionoftheManual.Thedeletedrulingsreflectareasthat areeitherimpractical,vague, orthesubject ofcurrent study, such as the concept of “composite person.”In addition, certain clauses that areincorporated in Labor Organization bonds in current use have created technical problems and arereceiving our attention.We hope to be able to resolve these problems with a minimum ofdisruptionto currentbondingpractices,butinviewofthe*****anddiverseinterestsinvolved,thesolutionwill presentsome delicate and time-consuming negotiations.

After these Manual pages were referred to the printer, Congress enacted certainamendments to the LMRDA.The amended law, among other things, substitutes an “honestybond”forthe“faithfuldischargeofdutybond” formerlyrequired.Itisfeltthat theamendmentsdonotmaterially affectthe interpretationscontained inthissectionexceptthat, ofcourse, where

referenceismade toa“faithful dischargebond,”thiswillnowbeconstruedto refertoa bondprovidingprotection against loss by reason of acts of fraud ordishonesty.

Please refer any questions not covered in the following rulings to the Division ofInterpretationand Standards in theNational Office.

(TechnicalRevisions:Dec. 2016)