45 CFR § 1629.6 - What is the required minimum level of coverage?
---
identifier: "/us/cfr/t45/s1629.6"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "45 CFR § 1629.6 - What is the required minimum level of coverage?"
title_number: 45
title_name: "Public Welfare"
section_number: "1629.6"
section_name: "What is the required minimum level of coverage?"
chapter_name: "LEGAL SERVICES CORPORATION"
part_number: "1629"
part_name: "BONDING REQUIREMENTS FOR RECIPIENTS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "42 U.S.C. 2996e(1)(A) and 2996f(3)."
regulatory_source: "82 FR 37180, Aug. 9, 2017, unless otherwise noted."
cfr_part: "1629"
---
# 1629.6 What is the required minimum level of coverage?
(a) A recipient must carry fidelity bond coverage or similar coverage at a minimum level of at least ten percent of its annualized funding level for the previous fiscal year.
(b) If a recipient is a new recipient, the coverage must be at a minimum level of at least ten percent of the initial grant.
(c) Notwithstanding paragraphs (a) and (b) of this section, recipients must not carry coverage under this part at a level less than $100,000.