; and (iv) has at all times a combined capital and surplus in excess of such minimum amount (not less than $1,000,000) as the Secretary of Labor prescribes in regulations. (B) Limitation If— (i) a bank or other financial institution would, but for this subparagraph, not be required to be bonded under this section by reason of the application of the exception provided in subparagraph (A), (ii) the bank or financial institution is authorized to exercise trust powers, and (iii) the deposits of the bank or financial institution are not insured by the Federal Deposit Insurance Corporation, such exception shall apply to such bank or financial institution only if the bank or institution meets bonding requirements under State law which the Secretary of Labor determines are at least equivalent to those imposed on banks by Federal law. (b) Regulations (1) In general The Secretary of Labor shall prescribe the amount of a bond under this section at the beginning of each fiscal year. Such amount shall not be less than 10 percent of the amount of funds handled, except that in no case shall such bond be less than $1,000 or more than $500,000, or such higher amount as the Secretary of Labor, after due notice and opportunity for hearing to all interested parties, and other consideration of the record, may prescribe. (2) Amount of funds handled For the purpose of prescribing the amount of a bond under paragraph (1), the amount of funds handled shall be determined by reference to the amount of the funds handled by the person, group, or class to be covered by such bond or by their predecessor or predecessors, if any, during the preceding fiscal year, or to the amount of funds to be handled during the current fiscal year by such person, group, or class, estimated as provided in regulations prescribed by the Secretary of Labor. (c) Terms A bond required by subsection (a)— (1) shall include such terms and conditions as the Secretary of Labor considers necessary to protect the Fund against loss by reason of acts of fraud or dishonesty