29 CFR § 2580.412-24 - Conditions of exemption.

---
identifier: "/us/cfr/t29/s2580.412-24"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "29 CFR § 2580.412-24 - Conditions of exemption."
title_number: 29
title_name: "Labor"
section_number: "2580.412-24"
section_name: "Conditions of exemption."
chapter_name: "EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF LABOR"
subchapter_number: "I"
subchapter_name: "TEMPORARY BONDING RULES UNDER THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974"
part_number: "2580"
part_name: "TEMPORARY BONDING RULES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "Sec. 505, Pub. L. 93-406, 88 Stat. 894 (29 U.S.C. 1135); sec. 412(e), Pub. L. 93-406, 88 Stat. 889 (29 U.S.C. 1112)."
regulatory_source: "28 FR 14403, Dec. 27, 1963, unless otherwise noted. Redesignated at 50 FR 26706, June 28, 1985."
cfr_part: "2580"
---


# 2580.412-24 Conditions of exemption.

(a) This exemption obtains only with respect to the requirement of section 13(a) of the Act that all bonds required thereunder shall have as surety thereon, a corporate surety company, which is an acceptable surety on Federal bonds under authority granted by the Secretary of the Treasury pursuant to the Act of July 30, 1947 (6 U.S.C. 6-13).

(b) The exemption is granted upon the condition that if for any reason the authority of any such company to act as an acceptable reinsuring company is terminated, the administrator of a plan insured with such company, shall, upon knowledge of such fact, be responsible for securing a new bond with a company acceptable under the Act and the exemptions issued thereunder.

(c) In obtaining or renewing a bond, the plan administrator shall ascertain that the surety is one which satisfies the requirements of the Act and the exemptions thereunder. If the bond is for a term of more than one year, the plan administrator, at the beginning of each reporting year, shall ascertain that the surety continues to do so.