2009 California Financial Code - Section 33600-33604 :: Article 4. Fidelity Bonds

33600.  Each fidelity bond required by the commissioner pursuant to
this article shall be issued by one or more corporations admitted to
engage in the surety business in this state and is satisfactory to
the commissioner.

33601.  Whenever the commissioner approves an application for a
license, the commissioner may require, as a condition of such
approval, if the commissioner finds that such condition is necessary
for the protection of the interests of purchasers and holders of
payment instruments issued by the applicant, that the applicant
obtain and thereafter maintain a fidelity bond covering such persons,
having such provisions, and providing coverage in such amounts, as
the commissioner may specify.

33602.  Whenever the commissioner finds that such order is necessary
for the protection of the interests of purchasers and holders of
payment instruments issued by a licensee which is not then required
to maintain a fidelity bond, the commissioner may order such licensee
to obtain and thereafter maintain a fidelity bond covering such
persons, having such provisions, and providing coverage in such
amounts, as the commissioner may specify.

33603.  Whenever the commissioner finds that it is appropriate or
necessary for the protection of the interests of purchasers and
holders of payment instruments issued by a licensee which is then
required to maintain a fidelity bond that such licensee obtain and
thereafter maintain a fidelity bond which differs from the former
fidelity bond with respect to persons covered, amounts of coverage,
or other provisions, the commissioner may by order relieve the
licensee of the requirement that it maintain the former fidelity bond
and require that the licensee obtain and thereafter maintain the
latter fidelity bond.

33604.  Whenever the commissioner finds that it is no longer
necessary for the protection of the interests of purchasers and
holders of payment instruments issued by a licensee which is then
required to maintain a fidelity bond that such licensee continue to
maintain any fidelity bond, the commissioner may by order relieve the
licensee of the requirement that it maintain any fidelity bond.