2461. Bonding Of Officers And Employees Of Labor Organizations -- 29 U.S.C. 502

Title 29 U.S.C. § 502 requires that all officers, employees and certain representatives who handle funds or property of a labor organization (except those whose property and annual receipts do not exceed $5,000), or of a trust in which a labor organization is interested, be bonded to provide protection against loss by reason of acts of fraud or dishonesty on their part directly or through connivance with others. Any person who is not bonded shall not be permitted to exercise control over a union's assets. While no designation is made as to who is responsible for permitting an unbonded individual to handle assets, the fiduciary standards imposed in 29 U.S.C. § 501(a) indicate that officers, agents and ship stewards and others, regardless of title, in a position of authority may be liable. Willful violations are punishable by up to one year and a fine.

[cited in JM 9-139.020]