Section 16613 Of Article 2. Security For Deposits From California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 4.5. >> Article 2.
16613
. If it appears to him or her necessary for the security of
the state, the Treasurer shall require as a condition of eligibility
that a savings and loan association or credit union furnish an
indemnity bond approved by the Treasurer, conditioned against loss by
any depreciation in value that may occur in securities deposited as
security for the safekeeping and prompt payment of deposits. The
sureties shall not be stockholders of the principal.