(a) General consideration. In addition to such substantive matters
as the personnel who must be bonded and the scope and the amount of the
prescribed bonds, which have been discussed previously, the form of the
bonds is the subject of a specific provision of section 502(a). Under
this provision, a bond meeting the substantive requirements of the
section may be either ``individual or schedule in form.'' These terms
are not specially defined and could be descriptive of a variety of
possible forms of bonds. According to trade usage, an individual bond is
a single bond covering a single named individual to a designated amount,
and bonds ``schedule in form'' may include either name schedule or
position schedule bonds. A name schedule bond is typically a single bond
covering a series or list of named individuals, each of whom is bonded
separately to a designated amount. A position schedule bond is typically
a single bond providing coverage with respect to any occupant or holder
of one or more specified positions during the term of the bond, each
office or position being covered to a designated amount. In a statute
relating to trade or commerce, it is frequently helpful to consider
whatever trade or commercial usages may have developed with respect to
the statutory terms. \9\ References to individual, schedule and position
schedule bonds may be found in other acts of Congress and indicate a
clear awareness of trade usages and terminology in this field. \10\
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\9\ See 2 Sutherland, Statutory Construction (3d ed. 1943)
Sec. 4919.
\10\ Act of August 24, 1954, 68 Stat. 335, 12 U.S.C. 1766(g); Act of
August 9, 1955, 69 Stat. 618, 6 U.S.C. 14.
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(b) Particular forms of bonds. If the phrase ``individual or
schedule in form'' is considered in light of the trade usages, section
502(a) at least permits bonds which are individual, name schedule or
position schedule in form. Of course, section 502(a) does not require
any particular type of individual or schedule bonds where different
types exist or may be developed. It could not be said, for example, that
a bond which schedules positions according to similarities in duties,
risks, or required amounts of coverage is not ``schedule in form''
within the meaning of section 502(a) merely because the particular form
of scheduling involved was not employed in bonds current at the time the
section became law. A more specific illustration would be a bond
scheduling shop stewards as a group because of the similar duties they
perform in collecting dues, or members of an executive board as a group
because of the fact that duties are imposed upon the board as such. A
bond of this type would be ``schedule in form'' within the meaning of
section 502(a) and, assuming adequacy of amount and coverage of all
persons whom it is necessary to bond, such a bond would be in conformity
with the statute. Also, a bond scheduling positions or groups of
positions according to amounts of funds handled by occupants of the
positions could be viewed as ``schedule in form.''
(c) Additional bonding. Section 502(a) neither prevents additional
bonding beyond that required by its terms nor prescribes the form in
which such additional coverage may be taken. Thus, so
long as a particular bond is schedule in form as to the personnel
required to be bonded and schedules coverage of these persons in at
least the minimum required amount, additional coverage either as to
personnel or amount may be taken in any form either in the same or in
separate bonds. A bond which provided name or position schedule coverage
for all persons required to be bonded under section 502(a), each
scheduled person or position being bonded in at least the required
minimum amount, would clearly be ``schedule in form'' within the meaning
of section 502(a) regardless of the extent or form of additional
schedule or blanket coverage provided in the same bond.
