§ 502. Bonding of officers and employees of labor organizations; amount, form, and placement of bonds; penalty for violation

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1959

   Labor-Management Reporting and Disclosure Act of 1959

   Pub. L. 86–257 title V § 502 · 73 Stat. 519

   Enacted · 29 U.S.C. § 502

   Pub. L. 86–257, title V, § 502, Sept. 14, 1959, 73 Stat. 536

   Source evidence

   Code source credit
   Pub. L. 86–257, title V, § 502, Sept. 14, 1959, 73 Stat. 536

   Enacted provision · exact public law section
   Sec. 502. bonding (a) Every officer, agent, shop steward, or other representative or employee of any labor organization (other than a labor organization whose property and annual financial receipts do not exceed $5,000 in value), or of a trust in which a labor organization is interested, who handles funds or other property thereof shall be bonded for the faithful discharge of his duties. The bond of each such person shall be fixed at the beginning of the organization’s fiscal year and shall be in an amount not less than 10 per centum of the funds handled by him and his predecessor or predecessors, if any, during the preceding fiscal year, but in no case more than $500,000, if the labor organization or the trust in which a labor organization is interested does not have a preceding fiscal year, the amount of the bond shall be, in the case of a local labor organization, not less than $1,000, and in the case of any other labor organization or of a trust in which a labor organization is interested, not less than $10,000. Such bonds shall be individual or schedule in form, and shall have a corporate surety company as surety thereon. Any person who is not covered by such bonds 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. No such bond shall be placed through an agent or broker or with a surety company in which any labor organization or any officer, agent, shop steward, or other representative of a labor organization has any direct or indirect interest. Such surety company shall be a corporate surety which holds a grant of authority from the Secretary of 61 Stat. 648. the Treasury under the Act of July 30, 1947 (6 U.S.C. 6–13), as an acceptable surety on Federal bonds. (b) Any person who willfully violates this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both.

2. 1965

   Pub. L. 89–216 § 1 · 79 Stat. 888

   1. Substituted · 29 U.S.C. § 502(a)

      Pub. L. 89–216 substituted “to provide protection against loss by reason of act of fraud or dishonesty on his part directly or through connivance with others” for “for the faithful discharge of his duties” in first sentence

   2. Inserted · 29 U.S.C. § 502(a)

      Pub. L. 89–216 inserted proviso allowing Secretary to permit other arrangements to provide necessary protection

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 89–216 substituted “to provide protection against loss by reason of act of fraud or dishonesty on his part directly or through connivance with others” for “for the faithful discharge of his duties” in first sentence and inserted proviso allowing Secretary to permit other arrangements to provide necessary protection.

1 of 3 references resolved to an enrolled provision · 2 partial