Since section 502 is intended to protect the funds or other property
of labor organizations and trusts in which labor organizations are
interested, bonds under this section should allow for enforcement or
recovery for the benefit of the labor organization or trust concerned by
those ordinarily authorized to act for it in such matters. For example,
in the case of a local labor organization, a bond would not be
appropriate under section 502 if it protected only the interests of a
national or international labor organization with which the local labor
organization is affiliated or if it designated as the insured only some
particular officer of the organization who does not legally represent it
in similar formal instruments.
