| Class Code: 2-14057
TSB 5062b 1087 Copyright, The Surety Association of America, 1987 Page 5 of 7
to meet its obligations, including its obligations to its partners
other than to such general partner(s), then the Financial
Interest in the Insured, as above defined, of such general
partner(s) shall be reduced in an amount necessary, or
eliminated if need be, in order to enable the Insured upon
payment of loss under this bond to meet such obligations, to
the extent that such payment will enable the Insured to meet
such obligations, without any benefit accruing to such general
partner(s) from such payment; and
(2) as respects limited partners the value of such limited
partner’s(’) investment in the Insured.
(h) Forgery means the signing of the name of another person or
organization with intent to deceive; it does not mean a signature which
consists in whole or in part of one’s own name signed with or without
authority, in any capacity, for any purpose.
(i) Guarantee means a written undertaking obligating the signer to pay
the debt of another to the Insured or its assignee or to a financial institution
from which the Insured has purchased participation in the debt, if the debt is
not paid in accordance with its terms.
(j) Instruction means a written order to the issuer of an Uncertificated
Security requesting that the transfer, pledge, or release from pledge of the
Uncertificated Security specified be registered.
(k) Letter of Credit means an engagement in writing by a bank or other
person made at the request of a customer that the bank or other person will
honor drafts or other demands for payment upon compliance with the
conditions specified in the Letter of Credit.
(l) Money means a medium of exchange in current use authorized or
adopted by a domestic or foreign government as a part of its currency.
(m) Negotiable Instrument means any writing
(1) signed by the maker or drawer; and
(2) containing any unconditional promise or order to pay a sum
certain in Money and no other promise, order, obligation or
power given by the maker or drawer; and
(3) is payable on demand or at a definite time; and
(4) is payable to order or bearer.
(n) Partner means a natural person who
(1) is a general partner of the Insured, or
(2) is a limited partner and an Employee (as defined in Section
1(e)(1) of the bond) of the Insured.
(o) Property means Money, Certificated Securities, Uncertificated
Securities of any Federal Reserve Bank of the United States, Negotiable
Instruments, Certificates of Deposit, documents of title, Acceptances,
Evidences of Debt, security agreements, Withdrawal Orders, certificates of
origin or title, Letters of Credit, insurance policies, abstracts of title, deeds and
mortgages on real estate, revenue and other stamps, tokens, unsold state
lottery tickets, books of account and other records whether recorded in writing
or electronically, gems, jewelry, precious metals of all kinds and in any form,
and tangible items of personal property which are not herein before
enumerated.
(p) Statement of Uncertificated Security means a written statement of the
issuer of an Uncertificated Security containing:
(1) a description of the Issue of which the Uncertificated Security
is a part;
(2) the number of shares or units:
(a) transferred to the registered owner;
(b) pledged by the registered owner to the registered
pledgee;
(c) released from pledge by the registered pledgee;
(d) registered in the name of the registered owner on the
date of the statement; or
(e) subject to pledge on the date of the statement;
(3) the name and address of the registered owner and registered
pledgee;
(4) a notation of any liens and restrictions of the issuer and any
adverse claims to which the Uncertificated Security is or may
be subject or a statement that there are none of those liens,
restrictions or adverse claims; and
(5) the date:
(a) the transfer of the shares or units to the new registered
owner of the shares or units was registered;
(b) the pledge of the registered pledgee was registered, or
(c) of the statement, if it is a periodic or annual statement.
(q) Transportation Company means any organization which provides its
own or leased vehicles for transportation or which provides freight forwarding or air
express services.
(r) Uncertificated Security means a share, participation or other interest in
property of or an enterprise of the issuer or an obligation of the issuer, which is:
(1) not represented by an instrument and the transfer of which is
registered upon books maintained for that purpose by or on
behalf of the issuer;
(2) of a type commonly dealt in on securities exchanges or
markets; and
(3) either one of a class or series or by its terms divisible into a
class or series of shares, participations, interests or
obligations.
(s) Withdrawal Order means a non-negotiable instrument, other than
an Instruction, signed by a customer of the Insured authorizing the Insured to
debit the customer’s account in the amount of funds stated therein.
EXCLUSIONS
Section 2. This bond does not cover:
(a) loss resulting directly or indirectly from forgery or alteration, except
when covered under Insuring Agreements (A), (D), or (E);
(b) loss due to riot or civil commotion outside the United States of
America and Canada; or loss due to military, naval or usurped power, war or
insurrection unless such loss occurs in transit in the circumstances recited in
Insuring Agreement (C), and unless, when such transit was initiated, there
was no knowledge of such riot, civil commotion, military, naval or usurped
power, war or insurrection on the part of any person acting for the Insured in
initiating such transit;
(c) loss resulting directly or indirectly from the effects of nuclear fission
or fusion or radioactivity; provided, however, that this paragraph shall not
apply to loss resulting from industrial uses of nuclear energy;
(d) loss resulting from any act or acts of any person who is a member
of the Board of Directors of the Insured or a member of any equivalent body
by whatsoever name known unless such person is also an Employee or an
elected official of the Insured in some other capacity, nor, in any event, loss
resulting from the act or acts of any person while acting in the capacity of a
member of such Board or equivalent body;
(e) loss resulting directly or indirectly from the complete or partial
nonpayment of, or default upon, any loan or transaction involving the Insured
as a lender or borrower, or extension of credit, including the purchase,
discounting or other acquisition of false or genuine accounts, invoices, notes,
agreements or Evidences of Debt, whether such loan, transaction or
extension was procured in good faith or through trick, artifice, fraud or false
pretenses, except when covered under Insuring Agreements (A), (D) or (E);
(f) loss resulting from any violation by the Insured or by any Employee
(1) of law regulating (i) the issuance, purchase or sale of
securities, (ii) securities transactions upon security exchanges
or over the counter market, (iii) investment companies, or (iv)
investment advisers, or
(2) of any rule or regulation made pursuant to any such law,
unless it is established by the Insured that the act or acts which caused the
said loss involved fraudulent or dishonest conduct which would have caused
a loss to the Insured in a similar amount in the absence of such laws, rules or
regulations;
(g) loss resulting directly or indirectly from the failure of a financial or
depository institution, or its receiver or liquidator, to pay or deliver, on demand
of the Insured, funds or Property of the Insured held by it in any capacity,
except when covered under Insuring Agreements (A) or (B)(1)(a);
(h) loss caused by an Employee, except when covered under Insuring
Agreement (A) or when covered under Insuring Agreement (B) or (C) and
resulting directly from misplacement, mysterious unexplainable
disappearance or destruction of or damage to Property;
(i) loss resulting directly or indirectly from transactions in a customer’s
account, whether authorized or unauthorized, except the unlawful withdrawal
and conversion of Money, securities or precious metals, directly from a
customer’s account by an Employee provided such unlawful withdrawal and
conversion is covered under Insuring Agreement (A);
(j) damages resulting from any civil, criminal or other legal proceeding
in which the Insured is alleged to have engaged in racketeering activity
except when the Insured establishes that the act or acts giving rise to such
damages were committed by an Employee under circumstances which result
directly in a loss to the Insured covered by Insuring Agreement (A). For the
purposes of this exclusion, “racketeering activity” is defined in 18 United
States Code 1961 et seq., as amended;
(k) loss resulting directly or indirectly from the use or purported use of
credit, debit, charge, access, convenience, identification, cash management
or other cards
(1) in obtaining credit or funds, or
(2) in gaining access to automated mechanical devices which, on
behalf of the Insured, disburse Money, accept deposits, cash
checks, drafts or similar written instruments or make credit
card loans, or
(3) in gaining access to point of sale terminals, customer-bank
communication terminals, or similar electronic terminals of
electronic funds transfer systems,
whether such cards were issued, or purport to have been issued, by the
Insured or by anyone other than the Insured, except when covered under
Insuring Agreement (A);
(l) loss involving automated mechanical devices which, on behalf of the
Insured, disburse Money, accept deposits, cash checks, drafts or similar written
instruments or make credit card loans, except when covered under Insuring
Agreement (A); |