A determination of whether persons falling within the definition of
administrator, officer or employee are required to be bonded depends on
whether they ``handle'' funds or other property. Determining the amount
of the bond is an aspect of the same process in that it requires a
determination of what funds or other property are being handled or what
amounts of funds or other property are subject to risk of loss with
respect to the duties or powers of an administrator, officer or employee
of a covered plan. Once this calculation is made, the required amount
for which that person must be covered by a bond, either by himself or as
a part of a group or class being bonded under a blanket or schedule
bond, is not less than 10 percent of the amount ``handled'' or $1,000,
whichever is the greater amount, except that no such
bond shall be required in an amount greater than $500,000 by virtue of
these regulations. (See Sec. 2580.412-17.)
