Section 1
SECTION 1. There is hereby created a permanent reimbursable appropriation to be known as the fidelity fund which shall be administered by the Insular Treasurer, and which shall be available for the following purposes: (a) To replace losses, shortages, and defalcations in the accounts of all public officers and employees bonded under this Act, it being the purpose to indemnify against all losses, shortages, and defalcations fairly arising under the head of fidelity insurance. (b) To pay such expenses of administration and operation of the fidelity fund as may be incurred in carrying out the purposes of this Act.