March 3, 2017
VIA EDGAR
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
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Re:
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Solar Capital Ltd. File No. 814-00754
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Rule 17g-1(g) Fidelity Bond Filing
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Dear Sir or Madam:
Enclosed for filing, on behalf of Solar Capital Ltd. (the Corporation), pursuant to Rule 17g-1(g) of the Investment
Company Act of 1940, please find the following:
(i) a copy of the joint fidelity bond covering the Corporation and Solar Senior Capital
Ltd. (Solar Senior), which includes a statement as to the period for which premiums have been paid (the Fidelity Bond) (attached as
Exhibit A
);
(ii) a Certificate of the Secretary of the Corporation containing the resolutions of the Board of Directors approving the amount, type, form
and coverage of the Fidelity Bond and a statement as to the period for which premiums have been paid (attached as
Exhibit B
);
(iii) a copy of the Agreement Regarding the Allocation of Fidelity Bond Recoveries by and among the Corporation and Solar Senior (attached as
Exhibit C
); and
(iv) a statement showing the amount of a single insured bond, which each of the Corporation and Solar Senior would
have been required to provide and maintain had each of the Corporation and Solar Senior not been named as a joint insured under the Fidelity Bond (attached as
Exhibit D
).
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Very truly yours,
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SOLAR CAPITAL LTD.
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/s/ Richard L. Peteka
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Richard L. Peteka
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Chief Financial Officer, Treasurer and Secretary
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Enclosures
EXHIBIT A
POLICYHOLDER NOTICE
Thank you for
purchasing insurance from a member company of American International Group, Inc. (AIG). The AIG member companies generally pay compensation to brokers and independent agents, and may have paid compensation in connection with your policy. You can
review and obtain information about the nature and range of compensation paid by AIG member companies to brokers and independent agents in the United States by visiting our website at
www.aig.com/producer-compensation
or by calling
1-800-706-3102.
91222 (9/ 16)
National Union Fire Insurance Company of Pittsburgh, Pa.
A capital stock company
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POLICY NUMBER:
01-245-65-04
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REPLACEMENT OF POLICY NUMBER:
01-174-34-33
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INVESTMENT COMPANY BLANKET BOND
(A Stock Insurance Company, Herein Called the Underwriter)
Bond No.
01-245-65-04
DECLARATIONS
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Item 1.
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Name of Insured (herein called Insured):
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SOLAR CAPITAL LTD.
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Principal Address:
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500 PARK AVE FL 3
NEW YORK, NY 10022-1606
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Item 2.
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Bond Period: from
12:01a.m.
03/01/2017
to 12:01a.m.
03/01/2018 the effective date of the termination or cancellation of this bond, standard time at the Principal Address as to each of said dates.
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Item 3.
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Limit of LiabilitySubject to Sections 9, 10 and 12 hereof,
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Amount applicable to
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Limit of Liability
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Deductible
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Insuring Agreement (A)-FIDELITY
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$
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3,000,000
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NIL
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Insuring Agreement (B)-AUDIT EXPENSE
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$
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50,000
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$
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10,000
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Insuring Agreement
(C)-ON
PREMISES
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$
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3,000,000
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$
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25,000
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Insuring Agreement
(D)-IN
TRANSIT
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$
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3,000,000
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$
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25,000
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Insuring Agreement (E)-FORGERY OR ALTERATION
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$
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3,000,000
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$
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25,000
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Insuring Agreement (F)-SECURITIES
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$
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3,000,000
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$
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25,000
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Insuring Agreement (G)-COUNTERFEIT CURRENCY
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$
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3,000,000
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$
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25,000
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Insuring Agreement (H)-STOP PAYMENT
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$
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100,000
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$
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5,000
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Insuring Agreement (I)-UNCOLLECTIBLE ITEMS OF DEPOSIT
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$
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100,000
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$
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5,000
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Optional Insuring Agreements and Coverages:
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Insuring Agreement (J)-COMPUTER SYSTEMS FRAUD
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$
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3,000,000
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$
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25,000
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Insuring Agreement (K)-UNAUTHORIZED SIGNATURES
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$
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100,000
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$
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5,000
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Insuring Agreement (L)-AUTOMATED PHONE SYSTEMS
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NIL
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NIL
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2-14057
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© All rights reserved.
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41205 (04/ 95)
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1
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If Not Covered is inserted above opposite any specified Insuring Agreement or Coverage, such Insuring Agreement or Coverage and any other reference thereto in this bond shall be deemed to be deleted
therefrom.
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Item 4.
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Offices or Premises CoveredOffices acquired or established subsequent to the effective date of this bond are covered according to the terms of General Agreement A. All the Insureds offices or premises in
existence at the time this bond becomes effective are covered under this bond except the offices or premises located as follows:
N/A
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Item 5.
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The liability of the Underwriter is subject to the terms of the following riders attached hereto:
#1, #2, #3, #4, #5, #6, #7, #8, #9, #10, #11, #12
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Item 6.
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The Insured by the acceptance of this bond gives to the Underwriter terminating or cancelling prior bond(s) or policy(ies)
No.(s) 01-174-34-33
such termination or cancellation to be effective as of the time this bond becomes effective.
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PREMIUM: $9,360
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2-14057
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© All rights reserved.
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41205 (04/ 95)
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2
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IN WITNESS WHEREOF,
the
Insurer
has caused this Policy to be signed by its President, Secretary and
Authorized Representative. This Policy shall not be valid unless signed below at the time of issuance by an authorized representative of the insurer.
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PRESIDENT
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SECRETARY
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National Union Fire
Insurance Company
of
Pittsburgh, Pa.
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National Union Fire Insurance
Company
of Pittsburgh, Pa.
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AUTHORIZED REPRESENTATIVE
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COUNTERSIGNED AT
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DATE
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COUNTERSIGNATURE
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AON RISK SERVICES NORTHEAST INC
199 WATER ST
NEW YORK, NY 10038-3526
1236782
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2-14057
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© All rights reserved.
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41205 (04/ 95)
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3
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National Union Fire Insurance Company of Pittsburgh, Pa.
®
A capital stock company
INVESTMENT COMPANY BLANKET BOND
The
Underwriter, in consideration of an agreed premium, and subject to the Declarations made a part hereof, the General Agreements, Conditions and Limitations and other terms of this bond, agrees with the Insured, in accordance with the Insuring
Agreements hereof to which an amount of insurance is applicable as set forth in Item 3 of the Declarations and with respect to loss sustained by the Insured at any time but discovered during the Bond Period, to indemnify and hold harmless the
Insured for:
INSURING AGREEMENTS
Loss resulting from any dishonest or fraudulent act(s), including Larceny or Embezzlement committed
by an Employee, committed anywhere and whether committed alone or in collusion with others, including loss of Property resulting from such acts of an Employee, which Property is held by the Insured for any purpose or in any capacity and whether so
held gratuitously or not and whether or not the Insured is liable therefor.
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean
only dishonest or fraudulent act(s) committed by such Employee with the manifest intent:
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(a)
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to cause the Insured to sustain such loss; and
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(b)
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to obtain financial benefit for the Employee, or for any other person or organization intended by the Employee to receive such benefit, other than salaries, commissions, fees, bonuses, promotions, awards, profit
sharing, pensions or other employee benefits earned in the normal course of employment.
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Expense incurred by the Insured for that part of the costs of audits or examinations required by
any governmental regulatory authority to be conducted either by such authority or by an independent accountant by reason of the discovery of loss sustained by the Insured through any dishonest or fraudulent act(s), including Larceny or Embezzlement
of any of the Employees. The total liability of the Underwriter for such expense by reason of such acts of any Employee or in which such employee
is concerned or implicated or with respect to any one audit or examination is limited to the amount stated opposite Audit Expense in Item 3 of the Declarations; it being understood,
however, that such expense shall be deemed to be a loss sustained by the Insured through any dishonest or
fraudulent act(s), including Larceny or Embezzlement of one or more of the Employees and the liability under this paragraph shall be in addition to the Limit of liability stated in Insuring Agreement (A) in Item 3 of the Declarations.
Loss of Property (occurring with or without negligence or violence) through robbery, burglary,
Larceny, theft, holdup, or other fraudulent means, misplacement, mysterious unexplainable disappearance, damage thereto or destruction thereof, abstraction or removal from the possession, custody or control of the Insured, and loss of subscription,
conversion, redemption or deposit privileges through the misplacement or loss of Property, while the Property is (or is supposed or believed by the Insured to be) lodged or deposited within any offices or premises located anywhere, except in an
office listed in Item 4 of the Declarations or amendment thereof or in the mail or with a carrier for hire other than an armored motor vehicle company, for the purpose of transportation.
Offices and Equipment
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(1)
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Loss of or damage to, furnishings, fixtures, stationery, supplies or equipment, within any of the Insureds offices covered under this bond caused by Larceny or theft in, or by burglary, robbery or holdup of such
office, or attempt thereat, or by vandalism or malicious mischief; or
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(2)
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loss through damage to any such office by Larceny or theft in, or by burglary, robbery or holdup of such office or attempt thereat, or to the interior of any such office by
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© All rights reserved.
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vandalism or malicious mischief provided, in any event, that the Insured is the owner of such
offices, furnishings, fixtures, stationery, supplies or equipment or is legally liable for such loss or damage, always excepting, however, all loss or damage through fire.
Loss of Property (occurring with or without negligence or violence) through robbery, Larceny,
theft, holdup, misplacement, mysterious unexplainable disappearance, being lost or otherwise made away with, damage thereto or destruction thereof, and loss of subscription, conversion, redemption or deposit privileges through the misplacement or
loss of Property, while the Property is in transit anywhere in the custody of any person or persons acting as messenger, except while in the mail or with a carrier for hire, other than an armored motor vehicle company, for the purpose of
transportation, such transit to begin immediately upon receipt of such Property by the transporting person or persons, and to end immediately upon delivery thereof at destination.
(E)
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FORGERY OR ALTERATION
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Loss through FORGERY or ALTERATION of, on or in any bills of exchange, checks, drafts,
acceptances, certificates of deposit. promissory notes, or other written promises, orders or directions to pay sums certain in money, due bills, money orders, warrants, orders upon public treasuries, letters of credit, written instructions, advices
or applications directed to the Insured, authorizing or acknowledging the transfer, payment, delivery or receipt of funds or Property, which instructions or advices or applications purport to have been signed or endorsed by any customer of the
Insured, shareholder or subscriber to shares, whether certificated or uncertificated, of any Investment Company or by any financial or banking institution or stockbroker but which instructions, advices or applications either bear the forged
signature or endorsement or have been altered without the knowledge and consent of such customer, shareholder or subscriber to shares, whether certificated or uncertificated, of an Investment Company, financial or banking institution or stockbroker,
withdrawal orders or receipts for the withdrawal of funds or Property, or receipts or certificates of deposit for Property
and bearing the name of the Insured as
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issuer, or of another Investment Company for which the Insured acts as agent, excluding, however, any loss
covered under Insuring Agreement (F) hereof whether or not coverage for Insuring Agreement (F) is provided for in the Declarations of this bond.
Any check or draft (a) made payable to a fictitious payee and endorsed in the name of such fictitious payee or (b) procured in a transaction with
the maker or drawer thereof or with one acting as an agent of such maker or drawer or anyone impersonating another and made or drawn payable to the one so impersonated and endorsed by anyone other than the one impersonated, shall be deemed to be
forged as to such endorsement.
Mechanically reproduced facsimile signatures are treated the same as handwritten signatures.
Loss sustained by the Insured, including loss sustained by reason of a violation of the
constitution, by-laws, rules or regulations of any Self Regulatory Organization of which the Insured is a member or which would have been imposed upon the Insured by the constitution, by-laws, rules or regulations of any Self Regulatory Organization
if the Insured had been a member thereof,
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(1)
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through the Insureds having, in good faith and in the course of business, whether for its own account or for the account of others, in any representative, fiduciary, agency or any other capacity, either
gratuitously or otherwise, purchased or otherwise acquired, accepted or received, or sold or delivered, or given any value, extended any credit or assumed any liability, on the faith of, or otherwise acted upon, any securities, documents or other
written instruments which prove to have been
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(b)
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forged as to the signature of any maker, drawer, issuer, endorser, assignor, lessee, transfer agent or registrar, acceptor, surety or guarantor or as to the signature of any person signing in any other capacity, or
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(c)
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raised or otherwise altered, or lost, or stolen, or
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(2)
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through the Insureds having, in good faith and in the course of business,
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© All rights reserved.
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guaranteed in writing or witnessed any signatures whether for valuable consideration or not and whether or not such guaranteeing or witnessing is ultra vires the Insured, upon any transfers,
assignments, bills of sale, powers of attorney, guarantees, endorsements or other obligations upon or in connection with any securities, documents or other written instruments and which pass or purport to pass title to such securities, documents or
other written instruments; EXCLUDING, losses caused by FORGERY or ALTERATION of, on or in those instruments covered under Insuring Agreement (E) hereof.
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Securities, documents or other written instruments shall be deemed to mean original (including original counterparts) negotiable or non-
negotiable agreements which in and of themselves represent an equitable interest, ownership, or debt, including an assignment thereof which instruments are in the ordinary course of business, transferable by delivery of such agreements with any
necessary endorsement or assignment.
The word counterfeited as used in this Insuring Agreement shall be deemed to mean any
security, document or other written instrument which is intended to deceive and to be taken for an original.
Mechanically produced
facsimile signatures are treated the same as handwritten signatures.
Loss through the receipt by the Insured, in good faith, of any counterfeited money orders
or altered paper currencies or coin of the United States of America or Canada issued or purporting to have been issued by the United States of America or Canada or issued pursuant to a United States of America or Canadian statute for use as
currency.
Loss against any and all sums which the Insured shall become obligated to pay by reason of the
Liability imposed upon he Insured by law for damages:
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41206 (9/ 84)
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For having either complied with or failed to comply with any written notice of any customer,
shareholder or subscriber of the Insured or any Authorized Representative of such customer, shareholder or subscriber to stop payment of any check or draft made or drawn by such customer, shareholder or subscriber or any Authorized Representative of
such customer, shareholder or subscriber, or
For having refused to pay any check or draft made or drawn by any customer, shareholder or
subscriber of the Insured or any Authorized Representative of such customer, shareholder or subscriber.
(I)
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UNCOLLECTIBLE ITEMS OF DEPOSIT
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Loss resulting from payments of dividends or fund shares, or withdrawals
permitted from any customers, shareholders or subscribers account based upon Uncollectible Items of Deposit of a customer, shareholder or subscriber credited by the Insured or the Insureds agent to such customers,
shareholders or subscribers Mutual Fund Account; or
loss resulting from any Item of Deposit processed through an Automated Clearing House
which is reversed by the customer, shareholder or subscriber and deemed uncollectible by the Insured.
Loss includes dividends and interest accrued not to
exceed 15% of the Uncollectible Items which are deposited.
This Insuring Agreement applies to all Mutual Funds with exchange privileges if
all Fund(s) in the exchange program are insured by a National Union Fire Insurance Company of Pittsburgh, PA for Uncollectible Items of Deposit. Regardless of the number of transactions between Fund(s), the minimum number of days of deposit within
the Fund(s) before withdrawal as declared in the Fund(s) prospectus shall begin from the date a deposit was first credited to any Insured Fund(s).
GENERAL AGREEMENTS
A.
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ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION OR MERGER-NOTICE
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1.
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If the Insured shall, while this bond is in force, establish any additional office or offices, such office or offices shall be automatically covered hereunder from the dates of their establishment, respectively. No
notice to the Underwriter of an increase during any premium period in the number of offices or in the number of Employees at any of the offices covered hereunder need be given and no additional premium need be paid for the remainder of such premium
period.
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2.
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If an Investment Company, named as Insured herein, shall, while this bond is in force, merge or consolidate with, or purchase the assets of another institution, coverage for such acquisition shall apply automatically
from the date of acquisition. The Insured shall notify the Underwriter of such acquisition within 60 days of said date, and an additional premium shall be computed only if such acquisition involves additional offices or employees.
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No statement made by or on behalf of the Insured, whether contained in the application or otherwise,
shall be deemed to be a warranty of anything except that it is true to the best of the knowledge and belief of the person making the statement.
C.
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COURT COSTS AND ATTORNEYS FEES
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(Applicable to all Insuring Agreements or Coverages now
or hereafter forming part of this bond)
The Underwriter will indemnify the Insured against court costs and reasonable attorneys fees incurred and
paid by the Insured in defense, whether or not successful, whether or not fully litigated on the merits and whether or not settled of any suit or legal proceeding brought against the Insured to enforce the Insureds liability or alleged
liability on account of any loss, claim or damage which, if established against the Insured, would constitute a loss sustained by the Insured covered under the terms of his bond provided, however, that with respect to Insuring
Agreement (A) this indemnity shall
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41206 (9/ 84)
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apply only in the event that
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(1)
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an Employee admits to being guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement; or
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(2)
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an Employee is adjudicated to be guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement;
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(3)
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in the absence of (1) or (2) above an arbitration panel agrees, after a review of an agreed statement of facts, that an Employee would be found guilty of dishonesty if such Employee were prosecuted.
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The Insured shall promptly give notice to the Underwriter of any such suit or legal proceeding and at the request of the Underwriter shall
furnish it with copies of all pleadings and other papers therein. At the Underwriters election the Insured shall permit the Underwriter to conduct the defense of such suit or legal proceeding, in the Insureds name, through attorneys of
the Underwriters selection. In such event, the Insured shall give all reasonable information and assistance which the Underwriter shall deem necessary to the proper defense of such suit or legal proceeding.
If the amount of the Insureds liability or alleged liability is greater than the amount recoverable under this bond, or if a Deductible Amount is
applicable, or both, the liability of the Underwriter under this General Agreement is limited to the proportion of court costs and attorneys fees incurred and paid by the Insured or by the Underwriter that the amount recoverable under this
bond bears to the total of such amount plus the amount which is not so recoverable. Such indemnity shall be in addition to the Limit of Liability for the applicable Insuring Agreement or Coverage.
Acts of an Employee, as defined in this bond, are covered under Insuring Agreement
(A) only while the Employee is in the Insureds employ. Should loss involving a former Employee of the Insured be discovered subsequent to the termination of employment, coverage would still apply
under Insuring Agreement (A) if the direct proximate cause of the loss occurred while the former Employee performed duties within the scope of his/ her employment.
THE FOREGOING INSURING AGREEMENTS AND
GENERAL AGREEMENTS ARE SUBJECT TO
THE FOLLOWING CONDITIONS
AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following terms, as used in this bond, shall have the respective meanings stated in this Section:
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(1)
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any of the Insureds officers, partners, or employees, and
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(2)
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any of the officers or employees of any predecessor of the Insured whose principal assets are acquired by the Insured by consolidation or merger with, or purchase of assets or capital stock of such predecessor. and
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(3)
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attorneys retained by the Insured to perform legal services for the Insured and the employees of such attorneys while such attorneys or the employees of such attorneys are performing such services for the Insured, and
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(4)
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guest students pursuing their studies or duties in any of the Insureds offices, and
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(5)
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directors or trustees of the Insured, the investment advisor, underwriter (distributor), transfer agent, or shareholder accounting record keeper, or administrator authorized by written agreement to keep financial and/
or other required records, but only while performing acts coming within the scope of the usual duties of an officer or employee or while acting as a member of any committee duly elected or appointed to examine or audit or have custody of or access
to the Property of the Insured, and
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(6)
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any individual or individuals assigned to perform the usual duties of an employee within the premises of the Insured, by contract, or by any agency furnishing temporary personnel on a contingent or part-time basis, and
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(7)
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each natural person, partnership or corporation authorized by written agreement with the Insured to perform services as electronic data processor of checks or other
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41206 (9/ 84)
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accounting records of the Insured, but excluding any such processor who acts as transfer agent or in any other agency capacity in issuing checks, drafts or securities for the Insured, unless
included under Sub- section (9) hereof, and
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(8)
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those persons so designated in Section 15, Central Handling of Securities, and
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(9)
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any officer, partner or Employee of
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a)
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an investment advisor,
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b)
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an underwriter (distributor),
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c)
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a transfer agent or shareholder accounting record- keeper, or
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d)
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an administrator authorized by written agreement to keep financial and/ or other required records,
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for an Investment Company named as Insured while performing acts coming within the scope of the usual duties of an officer or Employee of any
Investment Company named as Insured herein, or while acting as a member of any committee duly elected or appointed to examine or audit or have custody of or access to the Property of any such Investment Company, provided that only Employees or
partners of a transfer agent, shareholder accounting record- keeper or administrator which is an affiliated person as defined in the Investment Company Act of 1940, of an Investment Company named as Insured or is an affiliated person of the adviser,
underwriter or administrator of such Investment Company, and which is not a bank, shall be included within the definition of Employee.
Each employer of temporary personnel or processors as set forth in Sub- Sections (6) and of Section 1(a) and their partners, officers
and employees shall collectively be deemed to be one person for all the purposes of this bond, excepting, however,
the last paragraph of Section 13.
Brokers, or other agents under contract or representatives of the same general character shall
not be considered Employees.
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(b)
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Property means money (i.e.. currency, coin, bank notes, Federal Reserve notes), postage and revenue stamps, U.S. Savings Stamps, bullion, precious metals of all kinds and in any form and articles made
therefrom, jewelry, watches, necklaces, bracelets, gems, precious and semi-precious stones, bonds, securities, evidences of debts, debentures, scrip, certificates, interim receipts, warrants, rights, puts, calls, straddles, spreads, transfers,
coupons, drafts, bills of exchange, acceptances, notes, checks, withdrawal orders, money orders, warehouse receipts, bills of lading, conditional sales contracts, abstracts of title, insurance policies, deeds, mortgages under real estate and/or
chattels and upon interests therein, and assignments of such policies, mortgages and instruments, and other valuable papers, including books of account and other records used by the Insured in the conduct of its business, and all other instruments
similar to or in the nature of the foregoing including Electronic Representations of such instruments enumerated above (but excluding all data processing records) in which the Insured has an interest or in which the Insured acquired or should have
acquired an interest by reason of a predecessors declared financial condition at the time of the Insureds consolidation or merger with, or purchase of the principal assets of, such predecessor or which are held by the Insured for any
purpose or in any capacity and whether so held by the Insured for any purpose or in any capacity and whether so held gratuitously or not and whether or not the Insured is liable therefor.
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(c)
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Forgery means the signing of the name of another with intent to deceive; it does not include the signing of ones own name with or without authority, in any capacity, for any purpose.
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(d)
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Larceny and Embezzlement as it applies to any named Insured means
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those acts as set forth in Section 37 of
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41206 (9/ 84)
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the Investment Company Act of 1940.
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(e)
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Items of Deposit means any one or more checks and drafts. Items of Deposit shall not be deemed uncollectible until the Insureds collection procedures have failed.
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SECTION 2. EXCLUSIONS
THIS BOND DOES NOT COVER:
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(a)
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loss effected directly or indirectly by means of forgery or alteration of, on or in any instrument, except when covered by Insuring Agreement (A), (E), (F) or (G).
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(b)
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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 (D), 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.
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(c)
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loss, in time of peace or war, directly or indirectly caused by or resulting 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.
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(d)
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loss resulting from any wrongful 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, partial owner or partner 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.
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(e)
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loss resulting from the complete or partial non- payment of, or default upon, any loan or transaction in the nature of, or amounting to, a loan made by or obtained from the Insured or any of its partners,
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directors or Employees, whether authorized or unauthorized and whether procured in good faith or through trick, artifice, fraud or false pretenses. unless such
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loss is covered under Insuring Agreement (A), (E) or (F).
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(f)
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loss resulting from any violation by the Insured or by any Employee
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(1)
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of law regulating (a) the issuance, purchase or sale of securities, (b) securities transactions upon Security Exchanges or over the counter market, (c) Investment Companies, or (d) Investment
Advisors, or
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(2)
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of any rule or regulation made pursuant to any such law, unless such loss, in the absence of such laws, rules or regulations, would be covered under Insuring Agreements (A) or (E).
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(g)
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loss of Property or loss of privileges through the misplacement or loss of Property as set forth in Insuring Agreement (C) or (D) while the Property is in the custody of any armored motor vehicle company, unless
such loss shall be in excess of the amount recovered or received by the Insured under (a) the Insureds contract with said armored motor vehicle company, (b) insurance carried by said armored motor vehicle company for the benefit of
users of its service, and (c) all other insurance and indemnity in force in whatsoever form carried by or for the benefit of users of said armored motor vehicle companys service, and then this bond shall cover only such excess.
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(h)
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potential income, including but not limited to interest and dividends, not realized by the Insured because of a loss covered under this bond, except as included under Insuring Agreement (I).
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(i)
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all damages of any type for which the Insured is legally liable, except direct compensatory damages arising from a loss covered under this bond.
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(j)
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loss through the surrender of Property away from an office of the Insured as a result of a threat
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(1)
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to do bodily harm to any person, except loss of Property in transit in the custody of any person acting as messenger provided that when such transit was initiated there was no knowledge by the Insured of any such
threat, or
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(2)
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to do damage to the premises or
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Property of the Insured, except when covered under Insuring Agreement (A).
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(k)
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all costs, fees and other expenses incurred by the Insured in establishing the existence of or amount of loss covered under this bond unless such indemnity is provided for under Insuring Agreement (B).
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(l)
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loss resulting from payments made or withdrawals from the account of a customer of the Insured, shareholder or subscriber to shares involving funds erroneously credited to such account, unless such payments are made to
or withdrawn by such depositor or representative of such person, who is within the premises of the drawee bank of the Insured or within the office of the Insured at the time of such payment or withdrawal or unless such payment is covered under
Insuring Agreement (A).
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(m)
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any loss resulting from Uncollectible Items of Deposit which are drawn from a financial institution outside the fifty states of the United States of America, District of Columbia, and territories and possessions of the
United States of America, and Canada.
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SECTION 3. ASSIGNMENT OF RIGHTS
This bond does not afford coverage in favor of any Employers of temporary personnel or of processors as set forth in sub- sections (6) and (7) of Section
1(a) of this bond, as aforesaid, and upon payment to the Insured by the Underwriter on account of any loss through dishonest or fraudulent act(s) including Larceny or Embezzlement committed by any of the partners, officers or employees of such
Employers, whether acting alone or in collusion with others, an assignment of such of the Insureds rights and causes of action as it may have against such Employers by reason of such acts so committed shall, to the extent of such payment, be
given by the Insured to the Underwriter, and the Insured shall execute all papers necessary to secure to the Underwriter the rights herein provided for.
SECTION 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS
This bond is for
the use and benefit only of the Insured named in the Declarations and the Underwriter shall not be liable hereunder for
loss sustained by anyone other than the Insured unless the Insured, in its sole discretion and at its option,
shall include such loss in the Insureds proof of loss. At the earliest practicable moment after discovery of any loss hereunder the Insured shall give the Underwriter written notice thereof and shall also within six months after such discovery
furnish to the Underwriter affirmative proof of loss with full particulars. If claim is made under this bond for loss of securities or shares, the Underwriter shall not be liable unless each of such securities or shares is identified in such proof
of loss by a certificate or bond number or, where such securities or shares are uncertificated, by such identification means as agreed to by the Underwriter. The Underwriter shall have thirty days after notice and proof of loss within which to
investigate the claim, but where the loss is clear and undisputed, settlement shall be made within forty-eight hours; and this shall apply notwithstanding the loss is made up wholly or in part of securities of which duplicates may be obtained. Legal
proceedings for recovery of any loss hereunder shall not be brought prior to the expiration of sixty days after such proof of loss is filed with the Underwriter nor after the expiration of twenty-four months from the discovery of such loss, except
that any action or proceeding to recover hereunder on account of any judgment against the Insured in any suit mentioned in General Agreement C or to recover attorneys fees paid in any such suit, shall be begun within twenty-four months
from the date upon which the judgment in such suit shall become final. If any limitation embodied in this bond is prohibited by any law controlling the construction hereof, such limitation shall be deemed to be amended so as to be equal to the
minimum period of limitation permitted by such law.
Discovery occurs when the Insured
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(a)
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becomes aware of facts, or
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(b)
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receives written notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstance
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which would cause a reasonable person to assume that a loss covered by the bond has been or will be incurred even though the exact amount or details of loss
may not be then known.
SECTION 5. VALUATION OF PROPERTY
The value of any Property, except books of
accounts or other records used by the Insured in the conduct of its business, for the loss of which a claim
shall be made hereunder, shall be determined by the average market value of such Property on the business day next preceding the discovery of such loss; provided, however, that the value of any Property replaced by the Insured prior to the payment
of claim therefor shall be the actual market value at the time of replacement; and further provided that in case of a loss or misplacement of interim certificates, warrants, rights, or other securities, the production which is necessary to the
exercise of subscription, conversion, redemption or deposit privileges, the value thereof shall be the market value of such privileges immediately preceding the expiration thereof if said loss or misplacement is not discovered until after their
expiration. If no market price is quoted for such Property or for such privileges, the value shall be fixed by agreement between the parties or by arbitration.
In case of any loss or damage to Property consisting of books of accounts or other records used by the Insured in the conduct of its business, the Underwriter
shall be liable under this bond only if such books or records are actually reproduced and then for not more than the cost of blank books, blank pages or other materials plus the cost of labor for the actual transcription or copying of data which
shall have been furnished by the Insured in order to reproduce such books and other records.
SECTION 6. VALUATION OF PREMISES AND FURNISHINGS
In case of damage to any office of the Insured, or loss of or damage to the furnishings, fixtures, stationery, supplies, equipment, safes or vaults therein,
the Underwriter shall not be liable for more than the actual cash value thereof, or for more than the actual cost of their replacement or repair. The Underwriter may, at its election, pay such actual cash value or make such replacement or repair. If
the Underwriter and the Insured cannot agree upon such cash value or such cost of replacement or repair, such shall be determined by arbitration.
SECTION
7. LOST SECURITIES
If the Insured shall sustain a loss of securities the total value of which is in excess of the limit stated in
Item 3 of the Declarations of this bond, the liability of the Underwriter shall
be limited to payment for, or duplication of, securities having value equal to the limit stated in Item 3 of the Declarations of this bond.
If the Underwriter shall make payment to the Insured for any loss of securities, the Insured shall thereupon assign to the Underwriter all of the
Insureds rights, title and interests in and to said securities.
With respect to securities the value of which do not exceed the Deductible Amount
(at the time of the discovery of the loss) and for which the Underwriter may at its sole discretion and option and at the request of the Insured issue a Lost Instrument Bond or Bonds to effect replacement thereof, the Insured will pay the usual
premium charged therefor and will indemnify the Underwriter against all loss or expense that the Underwriter may sustain because of the issuance of such Lost Instrument Bond or Bonds.
With respect to securities the value of which exceeds the Deductible Amount (at the time of discovery of the loss) and for which the Underwriter may issue or
arrange for the issuance of a Lost Instrument Bond or Bonds to effect replacement thereof, the Insured agrees that it will pay as premium therefor a proportion of the usual premium charged therefor, said proportion being equal to the percentage that
the Deductible Amount bears to the value of the securities upon discovery of the loss, and that it will indemnify the issuer of said Lost Instrument Bond or Bonds against all loss and expense that is not recoverable from the Underwriter under the
terms and conditions of this INVESTMENT COMPANY BLANKET BOND subject to the Limit of Liability hereunder.
SECTION 8. SALVAGE
In case of recovery, whether made by the Insured or by the Underwriter, on account of any loss in excess of the Limit of Liability hereunder plus the
Deductible Amount applicable to such loss from any source other than suretyship, insurance, reinsurance, security or indemnity taken by or for the benefit of the Underwriter, the net amount of such recovery, less the actual costs and expenses of
making same, shall be applied to reimburse the Insured in full for the excess portion of such loss, and the remainder, if any, shall be paid first in reimbursement of the Underwriter and thereafter in reimbursement of the Insured for that part of
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such loss within the Deductible Amount. The Insured shall execute all necessary papers to secure to the Underwriter the rights provided for herein.
SECTION 9. NON-REDUCTION AND
NON-ACCUMULATION
OF LIABILITY AND TOTAL LIABILITY
At all times prior to termination hereof this bond shall continue in force for the limit stated in the applicable sections of Item 3 of the Declarations of
this bond notwithstanding any previous loss for which the Underwriter may have paid or be liable to pay hereunder; PROVIDED, however, that regardless of the number of years this bond shall continue in force and the number of premiums which shall be
payable or paid, the liability of the Underwriter under this bond with respect to all loss resulting from
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(a)
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any one act of burglary, robbery or holdup, or attempt thereat, in which no Partner or Employee is concerned or implicated shall be deemed to be one loss, or
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(b)
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any one unintentional or negligent act on the part of any one person resulting in damage to or destruction or misplacement of Property, shall be deemed to be one loss, or
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(c)
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all wrongful acts, other than those specified in (a) above, of any one person shall be deemed to be one loss, or
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(d)
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all wrongful acts, other than those specified in (a) above, of one or more persons (which dishonest act(s) or act(s) of Larceny or Embezzlement include, but are not limited to, the failure of an Employee to report
such acts of others) whose dishonest act or acts intentionally or unintentionally, knowingly or unknowingly, directly or indirectly, aid or aids in any way, or permits the continuation of, the dishonest act or acts of any other person or persons
shall be deemed to be one loss with the act or acts of the persons aided, or
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(e)
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any one casualty or event other than those specified in (a), (b), (c) or (d) preceding, shall be deemed to be one loss, and
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shall be limited to the applicable Limit of Liability stated in Item 3 of the Declarations of this bond irrespective of the total amount of such loss or
losses and shall not be cumulative in amounts from year to year or from period to period.
Sub-section (c) is not applicable to any situation to which the language of sub-section (d) applies.
SECTION 10. LIMIT OF LIABILITY
With respect to any loss
set forth in the PROVIDED clause of Section 9 of this bond which is recoverable or recovered in whole or in part under any other bonds or policies issued by the Underwriter to the Insured or to any predecessor in interest of the Insured and
terminated or cancelled or allowed to expire and in which the period for discovery has not expired at the time any such loss thereunder is discovered, the total liability of the Underwriter under this bond and under other bonds or policies shall not
exceed, in the aggregate, the amount carried hereunder on such loss or the amount available to the Insured under such other bonds or policies, as limited by the terms and conditions thereof, for any such loss if the latter amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured shall hold, as
indemnity against any loss covered hereunder, any valid and enforceable insurance or suretyship, the Underwriter shall be liable hereunder only for such amount of such loss which is in excess of the amount of such other insurance or suretyship, not
exceeding, however, the Limit of Liability of this bond applicable to such loss.
SECTION 12. DEDUCTIBLE
The Underwriter shall not be liable under any of the Insuring Agreements of this bond on account of loss as specified, respectively, in sub-sections (a), (b),
(c), (d) and (e) of Section 9, NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY, unless the amount of such loss, after deducting the net amount of all reimbursement and/or recovery obtained or made by the Insured, other than
from any bond or policy of insurance issued by an insurance company and covering such loss, or by the Underwriter on account thereof prior to payment by the Underwriter of such loss, shall exceed the Deductible Amount set forth in Item 3 of the
Declarations hereof (herein called Deductible Amount) and then for such excess only, but in no event for more than the applicable Limit of Liability stated in Item 3 of the Declarations.
The Insured will bear, in addition to the Deductible Amount, premiums on Lost Instrument Bonds
as set forth in Section 7.
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There shall be no deductible applicable to any loss under Insuring Agreement A sustained by any Investment
Company named as Insured herein.
SECTION 13. TERMINATION
The Underwriter may terminate this bond as an entirety by furnishing written notice specifying the termination date which cannot be prior to 60 days after the
receipt of such written notice by each Investment Company named as Insured and the Securities and Exchange Commission, Washington, D.C. The Insured may terminate this bond as an entirety by furnishing written notice to the Underwriter. When the
Insured cancels, the Insured shall furnish written notice to the Securities and Exchange Commission, Washington. D.C. prior to 60 days before the effective date of the termination. The Underwriter shall notify all other Investment Companies named as
Insured of the receipt of such termination notice and the termination cannot be effective prior to 60 days after receipt of written notice by all other Investment Companies. Premiums are earned until the termination date as set forth herein.
This Bond will terminate as to any one Insured immediately upon taking over of such Insured by a receiver or other liquidator or by State or Federal
officials, or immediately upon the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured. or immediately upon such Insured ceasing
to exist, whether through merger into another entity, or by disposition of all of its assets.
The Underwriter shall refund the unearned premium computed
at short rates in accordance with the standard short rate cancellation tables if terminated by the Insured or pro rata if terminated for any other reason.
This Bond shall terminate
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(a)
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as to any Employee as soon as any partner, officer or supervisory Employee of the Insured, who is not in collusion with such Employee, shall learn of any dishonest or fraudulent act(s), including Larceny or Embezzlement
on the part of such Employee without prejudice to the loss of any Property then in transit in the custody of such Employee (See Section 16[d]), or
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(b)
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as to any Employee 60 days after receipt by each Insured and by the Securities and Exchange Commission of a written notice from the Underwriter of its desire to terminate this bond as to such Employee, or
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(c)
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as to any person, who is a partner, officer or employee of any Electronic Data Processor covered under this bond, from and after the time that the Insured or any partner or officer thereof not in collusion with such
person shall have knowledge or information that such person has committed any dishonest or fraudulent act(s), including Larceny or Embezzlement in the service of the Insured or otherwise, whether such act be committed before or after the time this
bond is effective.
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SECTION 14. RIGHTS AFTER TERMINATION OR CANCELLATION
At any time prior to the termination or cancellation of this bond as an entirety, whether by the Insured or the Underwriter, the Insured may give to the
Underwriter notice that it desires under this bond an additional period of 12 months within which to discover loss sustained by the Insured prior to the effective date of such termination or cancellation and shall pay an additional premium therefor.
Upon receipt of such notice from the Insured, the Underwriter shall give its written consent thereto; provided, however, that such additional period of
time shall terminate immediately;
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(a)
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on the effective date of any other insurance obtained by the Insured, its successor in business or any other party, replacing in whole or in part the insurance afforded by this bond, whether or not such other insurance
provides coverage for loss sustained prior to its effective date, or
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(b)
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upon takeover of the Insureds business by any State or Federal official or agency, or by any receiver or liquidator, acting or appointed for this purpose
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without the necessity of the Underwriter giving notice of such termination. In the event that such additional period of time is terminated, as provided above,
the Underwriter shall refund any unearned
premium.
The right to purchase such additional period for the discovery of loss may not be
exercised by any State or Federal official or agency, or by any receiver or liquidator, acting or appointed to take over the Insureds business for the operation or for the liquidation thereof or for any other purpose.
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities included
in the systems for the central handling of securities established and maintained by Depository Trust Company, Midwest Depository Trust Company, Pacific Securities Depository Trust Company, and Philadelphia Depository Trust Company, hereinafter
called Corporations, to the extent of the Insureds interest therein as effective by the making of appropriate entries on the books and records of such Corporations shall be deemed to be Property.
The words Employee and Employees shall be deemed to include the officers, partners, clerks and other employees of the New York Stock
Exchange, Boston Stock Exchange, Midwest Stock Exchange, Pacific Stock Ex-change and Philadelphia Stock Exchange, herein after called Exchanges, and of the above named Corporations, and of any nominee in whose name is registered any security
included within the systems for the central handling of securities established and maintained by such Corporations, and any employee of any recognized service company, while such officers, partners, clerks and other employees and employees of
service companies perform services for such Corporations in the operation of such systems. For the purpose of the above definition a recognized service company shall be any company providing clerks or other personnel to said Exchanges or Corporation
on a contract basis.
The Underwriter shall not be liable on account of any loss(es) in connection with the central handling of securities within the
systems established and maintained by such Corporations, unless such loss(es) shall be in excess of the amount(s) recoverable or recovered under any bond or policy of insurance indemnifying such Corporations, against such loss(es), and then the
Underwriter shall be liable hereunder only for the Insureds share of such excess loss(es), but in no event for more than the Limit of Liability applicable hereunder.
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41206 (9/84)
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© All rights reserved.
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11
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For the purpose of determining the Insureds share of excess loss(es) it shall be deemed that the Insured
has an interest in any certificate representing any security included within such systems equivalent to the interest the Insured then has in all certificates representing the same security included within such systems and that such Corporations
shall use their best judgment in apportioning the amount(s) recoverable or recovered under any bond or policy of insurance indemnifying such Corporations against such loss(es) in connection with the central handling of securities within such systems
among all those having an interest as recorded by appropriate entries in the books and records of such Corporations in Property involved in such loss(es) on the basis that each such interest shall share in the amount(s) so recoverable or recovered
in the ratio that the value of each such interest bears to the total value of all such interests and that the Insureds share of such excess loss(es) shall be the amount of the Insureds interest in such Property in excess of the amount(s)
so apportioned to the Insured by such Corporations.
This bond does not afford coverage in favor of such Corporations or Exchanges or any nominee in whose
name is registered any security included within the systems for the central handling of securities established and maintained by such Corporations, and upon payment to the Insured by the Underwriter on account of any loss(es) within the systems, an
assignment of such of the Insureds rights and causes of action as it may have against such Corporations or Exchanges shall to the extent of such payment, be given by the Insured to the Underwriter, and the Insured shall execute all papers
necessary to secure to the Underwriter the rights provided for herein.
SECTION 16. ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one corporation,
co-partnership
or person or any combination of them be included as the Insured herein:
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(a)
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the total liability of the Underwriter hereunder for loss or losses sustained by any one or more or all of them shall not exceed the limit for which the Underwriter would be liable hereunder if all such loss were
sustained by any one of them,
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(b)
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the one first named herein shall be deemed authorized to make, adjust and
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receive and enforce payment of all claims hereunder and shall be deemed to be the agent of the others for such purposes and for the giving or receiving of any notice required or permitted to be
given by the terms hereof, provided that the Underwriter shall furnish each named Investment Company with a copy of the bond and with any amendment thereto, together with a copy of each formal filing of the settlement of each such claim prior to the
execution of such settlement,
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(c)
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the Underwriter shall not be responsible for the proper application of any payment made hereunder to said first named Insured,
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(d)
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knowledge possessed or discovery made by any partner, officer or supervisory Employee of any Insured shall for the purposes of Section 4 and Section 13 of this bond constitute knowledge or discovery by all the
Insured, and
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(e)
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if the first named Insured ceases for any reason to be covered under this bond, then the Insured next named shall thereafter be considered as the first named Insured for the purposes of this bond.
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SECTION 17. NOTICE AND CHANGE OF CONTROL
Upon the
Insureds obtaining knowledge of a transfer of its outstanding voting securities which results in a change in control (as set forth in Section 2(a) (9) of the Investment Company Act of 1940) of the Insured, the Insured shall within thirty
(30) days of such knowledge give written notice to the Underwriter setting forth:
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(a)
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the names of the transferors and transferees (or the names of the beneficial owners if the voting securities are requested in another
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41206 (9/ 84)
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name), and
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(b)
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the total number of voting securities owned by the transferors and the transferees (or the beneficial owners), both immediately before and after the transfer, and
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(c)
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the total number of outstanding voting securities.
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As used in this section, control means the power to
exercise a controlling influence over the management or policies of the Insured.
Failure to give the required no ice shall result in termination of
coverage of this bond,
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© All rights reserved.
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12
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effective upon the date of stock transfer for any loss in which any transferee is concerned or implicated.
Such notice is not required to be given in the case of an Insured which is an Investment Company.
SECTION 18. CHANGE OR MODIFICATION
This bond or any instrument
amending or effecting same may not be changed or modified orally. No changes in or modification thereof shall be effective unless made by written endorsement issued to form a part hereof over the signature of the Underwriters Authorized
Representative. When a bond covers only one Investment Company no change or modification which would adversely
affect the rights of the Investment Company shall be effective prior to 60 days after written notification has been furnished to the Securities and Exchange Commission, Washington, D.C. by the
Insured or by the Underwriter. If more than one Investment Company is named as the Insured herein, the Underwriter shall give written notice to each Investment Company and to the Securities and Exchange Commission, Washington, D.C. not less than 60
days prior to the effective date of any change or modification which would adversely affect the rights of such Investment Company.
IN WITNESS WHEREOF,
the Underwriter has caused this bond to be executed on the Declarations Page.
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41206 (9/ 84)
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© All rights reserved.
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13
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ENDORSEMENT#
1
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This endorsement, effective
12:01
am
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March
1,
2017
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forms a part of
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policy number
01-245-65-04
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issued to
SOLAR
CAPITAL
LTD.
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by
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National Union Fire Insurance Company of Pittsburgh, Pa.
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NEW YORK AMENDATORY
ENDORSEMENT - NY STATUTE 3420
Wherever used in this endorsement: 1) we, us, our and Insurer mean the
insurance company which issued this policy; 2) you, your, Insured and first Named Insured mean the Named Corporation, Named Entity, Named Organization, Named Sponsor, Named Insured, or Insured stated
in the declarations page; 3) other insured(s) means all other persons or entities afforded coverage under the policy; 4) Discovery Period means Discovery Period or Extended Reporting Period, as defined in the policy; and 5)
Claim means Claim or Suit as defined in the policy.
It is hereby understood and agreed that the policy is amended as follows:
A.
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The following provisions are hereby added to the policy:
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FAILURE TO GIVE NOTICE WITHIN
PRESCRIBED TIME:
Failure to give any notice required to be given by this policy, or any policy of which this is a renewal, within the
prescribed time shall not invalidate any Claim made against an Insured if:
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(a)
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it shall be shown not to have been reasonably possible to give notice within the prescribed time and that notice was given as soon as was reasonably possible thereafter; or
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(b)
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the failure to provide timely notice has not prejudiced the Insurer.
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Any such Claim shall be
deemed to have been first made against the Insured and noticed to the Insurer within the Policy Period or Discovery Period of the policy issued by the Insurer (the Noticed Policy) in which the Insurer received notice of the Claim;
provided that the coverage afforded with respect to the Noticed Policy shall be in an amount
not greater than
the amount of coverage afforded with respect to the Policy Period of the policy issued by the Insurer (the Former
Policy) in which the Claim was actually first made against the Insured. The foregoing sentence may result in (but not be limited to): (1) reducing the limit of liability available for such a Claim to the available limit of liability applicable
to the Former Policy; (2) increasing the applicable retention amount to that retention amount applicable to the Former Policy; or (3) reducing or eliminating coverage due to exclusions or other restrictions appearing in the Former Policy but
eliminated, in part or in whole, in the Noticed Policy. No coverage shall be afforded under this endorsement if there was not in existence a Former Policy at the time the Claim was actually first made against the Insured.
With respect to subsection (b) above, any such Claim must be noticed during the Policy Period or Discovery Period of a Noticed Policy
which is a renewal or extension of the Former Policy.
Nothing in this endorsement shall be construed to provide coverage for a Claim under
more than one Policy Period or Discovery Period.
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© All rights reserved.
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2-14057
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END 001
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83231 (1/ 09)
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Page 1 of 2
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ENDORSEMENT#
1
(continued)
PREJUDICE:
In the event that the Insurer alleges that it was prejudiced as a result of a failure to give notice within the time required under the policy,
the burden of proof shall be on:
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(a)
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the Insurer to prove that it has been prejudiced, if the notice was provided within two years of the time required under the policy; or
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(b)
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the Insured to prove that the Insurer has not been prejudiced, if the notice was provided more than two years after the time required under the policy.
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The Insurers rights shall not be deemed prejudiced unless the failure to timely provide notice materially impairs the ability of the
Insurer to investigate or defend the Claim.
Notwithstanding the above, an irrebuttable presumption of prejudice shall apply if, prior to
the notice, the Insureds liability has been determined by a court of competent jurisdiction or by a binding arbitration; or if the Insured has resolved the Claim by settlement or other compromise.
NOTICE TO AGENT:
Notice
given by or on behalf of the Insured, or written notice by or on behalf of the injured party or any other claimant, to any licensed agent of the Insurer in the state of New York, with particulars sufficient to identify the Insured, shall be deemed
notice to the Insurer.
INSOLVENCY/ BANKRUPTCY OF INSURED:
The insolvency or bankruptcy of the Insured shall not relieve the Insurer of its obligations under this policy as long as all policy
requirements are met by Insured, its trustee or receiver in bankruptcy. Should a covered judgment be rendered against an insolvent or bankrupt Insured, the Insurer shall be liable for the amount of such judgment not to exceed the applicable limit of
liability under this policy.
B.
|
The Clause entitled,
Action Against Us
or
Action Against Company
is deleted in its entirety and replaced with the following:
|
No one may bring an action against us unless there has been full compliance with all the terms of this policy and the amount of the
Insureds obligation to pay has been finally determined either by:
|
1.
|
judgment against the Insured which remains unsatisfied at the expiration of thirty (30) days from the service of notice of entry of the judgment upon the Insured and upon us; or
|
|
2.
|
written agreement of the Insured, the claimant and us.
|
Any person or organization or legal
representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this policy to the extent of the insurance afforded by this policy. We may not be impleaded by the Insured or its legal
representative in any legal action brought against the Insured by any person or organization.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIND
UNCHANGED.
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 001
|
|
|
|
|
|
83231 (1/ 09)
|
|
Page 2 of 2
|
|
|
ENDORSEMENT#
2
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
NEW YORK AMENDATORY
ENDORSEMENT
Wherever used in this endorsement: 1) Insurer means the insurance company which issued this policy; and 2)
Insured means the Named Corporation, Named Organization, Named Sponsor, Named Insured, Named Entity or Insured stated in the declarations page;
The policy is hereby amended as follows:
I.
|
The Cancellation and When We Do Not Renew provisions are deleted and replaced by the following:
|
|
(a)
|
CANCELLATION BY THE INSURED
|
This policy may be cancelled by the Insured by surrender of this
policy to the Insurer or by giving written notice to the Insurer stating when thereafter such cancellation shall be effective. The Policy Period terminates at the date and hour specified in such notice, or at the date and time of surrender.
|
(b)
|
CANCELLATION, NONRENEWAL AND CONDITIONAL RENEWAL BY THE INSURER
|
|
(i)
|
If this policy has been in effect for sixty (60) or fewer days when cancellation notice is mailed, and this policy is not a renewal of a policy issued by the Insurer, then this policy may be cancelled by the
Insurer by mailing or delivering to the Insured, and to his authorized insurance agent or broker, written notice stating when not less than twenty (20) days thereafter (fifteen (15) days thereafter if cancellation is because of one of the
reasons for cancellation set forth in subsection (ii) below) the cancellation shall be effective. Notice of cancellation issued by the Insurer shall specify the grounds for cancellation.
|
|
(ii)
|
If this policy has been in effect for more than sixty (60) days when notice of cancellation is mailed, or if this policy is a renewal of a policy issued by the Insurer, then this policy may be cancelled by the
Insurer by mailing or delivering to the Insured, and to his authorized insurance agent or broker, written notice stating when not less than fifteen (15) days thereafter the cancellation shall be effective; however, such cancellation must be
based on one or more of the following:
|
|
(A)
|
nonpayment of premium, provided, however, that a notice of cancellation on this ground shall inform the first Named Insured of the amount due;
|
|
(B)
|
conviction of a crime arising out of acts increasing the hazard insured against;
|
|
(C)
|
discovery of fraud or material misrepresentation in the obtaining of the policy or in the presentation of a claim thereunder;
|
|
(D)
|
after issuance of the policy or after the last renewal date, discovery of an act or omission, or a violation of any policy condition, that substantially and materially increases the hazard insured against, and which
occurred subsequent to inception of the current Policy Period;
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 002
|
|
|
|
|
|
69898 (9/ 06)
|
|
Page 1 of 4
|
|
|
ENDORSEMENT#
2
(continued)
|
(E)
|
material change in the nature or extent of the risk, occurring after issuance or last annual renewal anniversary date of the policy, which causes the risk of loss to be substantially and materially increased beyond that
contemplated at the time the policy was issued or last renewed;
|
|
(F)
|
required pursuant to a determination by the New York Superintendent of Insurance that continuation of the present premium volume of the Insurer would jeopardize the Insurers solvency or be hazardous to the
interests of Insureds of the Insurer, its creditors or the public;
|
|
(G)
|
a determination by the New York Superintendent of Insurance that the continuation of the policy would violate, or would place the Insurer in violation of, any provision of the New York Insurance Law;
|
|
(H)
|
revocation or suspension of an Insureds license to practice his profession; or
|
|
(I)
|
where the Insurer has reason to believe that there is a probable risk or danger that the Insured will destroy or permit the destruction of the insured property for the purpose of collecting the insurance proceeds,
provided, however, that:
|
|
(1)
|
a notice of cancellation on this ground shall inform the Insured in plain language that the Insured must act within ten days if review by the department of the ground for cancellation is desired pursuant to item
(3) of this subparagraph (I);
|
|
(2)
|
notice of cancellation on this ground shall be provided simultaneously by the Insurer to the department; and
|
|
(3)
|
upon written request of the Insured made to the department within ten days from the Insureds receipt of notice of cancellation on this ground, the department shall undertake a review of the ground for cancellation
to determine whether or not the Insurer has satisfied the criteria for cancellation specified in this subparagraph; if after such review the department finds no sufficient cause for cancellation on this ground, the notice of cancellation on this
ground shall be deemed null and void.
|
Notice of cancellation by the Insurer shall specify the grounds for cancellation.
|
(A)
|
The Insurer shall mail to the Insured, and to his authorized insurance agent or broker, written notice indicating the Insurers intention:
|
|
(1)
|
not to renew this policy;
|
|
(2)
|
to condition its renewal upon change of limits, change in type of coverage, reduction of coverage, increased deductible or addition of exclusions or upon increased premiums in excess of ten percent; (exclusive of any
premium increase generated as a result of increased exposure units or as a result of experience rating, loss rating, or audit)
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 002
|
|
|
|
|
|
69898 (9/ 06)
|
|
Page 2 of 4
|
|
|
ENDORSEMENT#
2
(continued)
|
(3)
|
that the policy will not be renewed or will not be renewed upon the same terms, conditions or rates; such alternative renewal notice must be mailed or delivered on a timely basis and advise the Insured that a second
notice shall be mailed at a later date indicating the Insurers intention as specified in subparagraph (1) or (2) of this paragraph (A) and that coverage shall continue on the same terms, conditions and rates as expiring, until the
later of the expiration date or sixty (60) days after the second notice is mailed or delivered; such alternative renewal notice also shall advise the insured of the availability of loss information and, upon written request, the request, the insurer
shall furnish such loss information within ten (10) days to the insured.
|
|
(B)
|
A nonrenewal notice as specified in subparagraph (1), a conditional renewal notice as specified in subparagraph (2), and the second notice described in subparagraph (3) of paragraph (A) of this subsection
(iii) shall contain the specific reason or reasons for nonrenewal or conditional renewal, and set forth the amount of any premium increase and nature of any other proposed changes.
|
|
(C)
|
The notice required by paragraph (A) of this subsection (iii) shall be mailed at least sixty (60) but not more than one hundred twenty (120) days in advance of the end of the Policy Period.
|
|
(1)
|
If the Insurer employs an alternative renewal notice as authorized by subparagraph (3) of paragraph (A) of this subsection (iii), the Insurer shall provide coverage on the same terms, conditions, and rates as
the expiring policy, until the later of the expiration date or sixty (60) days after the mailing of the second notice described in such subparagraph.
|
|
(2)
|
Prior to the expiration date of the policy, in the event that an incomplete or late conditional renewal notice or a late nonrenewal notice is provided by the Insurer, the Policy Period shall be extended, at the same
terms and conditions as the expiring policy, except that the annual aggregate limit of the expiring policy shall be increased in proportion to the policy extension, and at the lower of the current rates or the prior periods rates, until sixty
(60) days after such notice is mailed, unless the Insured elects to cancel sooner.
|
|
(3)
|
In the event that a late conditional renewal notice or a late nonrenewal notice is provided by the insurer on or after the expiration date of the policy, coverage shall remain in effect on the same terms and conditions
of the expiring policy for another required policy period, and at the lower of the current rates or the prior periods rates unless the insured during the additional required policy period has replaced the coverage or elects to cancel, in which
event such cancellation shall be on a pro rata premium basis.
|
|
(iv)
|
Nothing herein shall be construed to limit the grounds for which the Insurer may lawfully rescind this policy or decline to pay a claim under this policy.
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 002
|
|
|
|
|
|
69898 (9/ 06)
|
|
Page 3 of 4
|
|
|
ENDORSEMENT#
2
(continued)
|
(v)
|
Notice required herein to be mailed to the Insured shall be mailed to the Insured at the address shown in Item 1 of the Declarations.
|
Notice required herein to be mailed by the Insurer shall be sent by registered, certified or other first class mail. Delivery of written
notice shall be equivalent to mailing.
Proof of mailing of such notice as aforesaid shall be sufficient proof of notice. The Policy
Period shall terminate at the effective date and hour of cancellation or nonrenewal specified in such notice.
|
(vi)
|
If this policy shall be cancelled by the Insured, the Insurer shall retain the customary short rate proportion of the premium hereon.
|
If this policy shall be cancelled by the Insurer, the Insurer shall retain the pro rata proportion of the premium hereon.
Payment or tender of any unearned premium by the Insurer shall not be a condition of cancellation, but such payment shall be made as soon as
practicable.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 002
|
|
|
|
|
|
69898 (9/ 06)
|
|
Page 4 of 4
|
|
|
ENDORSEMENT#
3
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
PROTECTED
INFORMATION EXCLUSION
This rider modifies insurance provided under the following:
BROKER-DEALER GUARD BOND
CREDIT UNION FINANCIAL INSTITUTION FIDELITY BOND FINANCIAL INSTITUTIONS BOND, STANDARD FORM 14 FINANCIAL INSTITUTIONS BOND,
STANDARD FORM 15 FINANCIAL INSTITUTIONS BOND, STANDARD FORM 24 FINANCIAL INSTITUTIONS BOND, STANDARD FORM 25 FOLLOW FORM BOND (EXCESS OVER A FIDELITY BOND) INVESTMENT COMPANY BLANKET BOND
It is agreed that:
1.
|
Coverage shall not apply to any loss resulting directly or indirectly from the: (a) theft, disappearance or destruction of; (b) unauthorized use or disclosure of; (c) unauthorized access to; or
(d) failure to protect any:
|
|
(i)
|
confidential or
non-public;
or
|
|
(ii)
|
personal or personally identifiable;
|
information that any person or entity has a duty to
protect under any law, rule or regulation, any agreement or any industry guideline or standard.
This exclusion shall not apply to the
extent that any unauthorized use or disclosure of a password enables a theft by an Employee of the Insured of money, securities or tangible property of the Insured or that the Insured is holding for a third party; provided, however, this exception
shall not apply to the extent that such unauthorized use or disclosure of a password enables a theft of or disclosure of information.
2.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 3
|
|
|
|
|
|
113011 (10/12)
|
|
|
|
|
ENDORSEMENT#
4
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
OMNIBUS WORDING
It is agreed that:
1.
|
If the Insured shall, while this bond is in force, establish any new funds other than by consolidation or merger with, purchase or acquisition of assets or liabilities of, another institution, such funds shall
automatically be covered hereunder from the date of such establishment without the payment of additional premium for the remainder of the premium period.
|
2.
|
If the Insured shall, while this bond is in force, require an increase in limits to comply with SEC Reg.
17g-1,
due to an increase in asset size of current funds insured under the
bond or by the addition of new funds, the Insured shall notify the Underwriter of such required increase in limits within 30 days of such increase in asset size and the Insured shall be entitled to receive from the Underwriter within 15 days of the
Underwriters receipt of such notice an offer for coverage hereunder for such increase in limits from the date of such increase in assets. Such coverage for increase in asset size shall be conditioned upon the Insured paying the Underwriter the
required additional premium for such increase in limits, which additional premium shall be in amount determined in the sole and absolute discretion of the Underwriter.
|
3.
|
Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, limitations conditions or agreements of the attached bond other than as above stated.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 4
|
|
|
|
|
|
103011 (10/09)
|
|
|
|
|
ENDORSEMENT#
5
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
COMPUTER CRIME
COVERAGE RIDER
In consideration of the premium charged, it is hereby understood and agreed that bond is hereby amended as follows:
1.
|
All the terms and conditions of investment company blanket bond form 41206 (09/84) shall apply to coverage as is afforded by this endorsement unless specifically stated otherwise herein or in any endorsement attached
hereto.
|
2.
|
Items 4 of the Declarations is hereby amended by adding the following under Optional Insuring Agreements and Coverages:
|
|
|
|
|
|
|
|
|
|
|
|
Single Loss
Limit of Liability
|
|
|
Single Loss
Deductible
|
|
|
|
|
Computer Systems Fraud
|
|
$
|
3,000,000
|
|
|
$
|
25,000
|
|
Data Processing Service Operations
|
|
$
|
3,000,000
|
|
|
$
|
25,000
|
|
Voice Initiated Transfer Fraud
|
|
$
|
0
|
|
|
$
|
0
|
|
Telefacsimile Transfer Fraud
|
|
$
|
0
|
|
|
$
|
0
|
|
Destruction of Data or Programs by Hacker
|
|
$
|
3,000,000
|
|
|
$
|
25,000
|
|
Destruction of Data or Programs by Virus
|
|
$
|
3,000,000
|
|
|
$
|
25,000
|
|
Voice Computer Systems Fraud
|
|
$
|
3,000,000
|
|
|
$
|
25,000
|
|
3.
|
The Declarations page is hereby amended by adding the following paragraph to the end thereof:
|
Item 7.
Voice
Initiated Transfer Fraud
Under the terms of the Voice Initiated Transfer Fraud Insuring Agreement, the Insured must place verification
call-back for each transfer in excess of
$0
Telefacsimile Transfer Fraud
Under the terms of the Telefacsimile Transfer Fraud Insuring Agreement, the Insured must place a Verification call-back for each transfer in
excess of
$0
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
4.
|
The Insuring Agreements are hereby amended by adding the following Insuring Agreements to the Bond:
|
COMPUTER SYSTEMS FRAUD
|
(F)
|
Loss resulting directly from a fraudulent:
|
|
(1)
|
entry of Electronic Data or Computer Program into, or
|
|
(2)
|
change of Electronic Data or Computer Program within
|
any Computer System operated by the
Insured, whether owned or leased; or any Computer System identified in the application for this bond; or a Computer System first used by the Insured during the bond period; as provided by General Agreement B; provided the entry or change causes:
|
(i)
|
Property to be transferred, paid or delivered,
|
|
(ii)
|
an account of the Insured, or of its customer, to be added, deleted, debited or credited, or
|
|
(iii)
|
an unauthorized account or a fictitious account to be debited or credited.
|
In this Insuring
Agreement, fraudulent entry or change shall include such entry or change made by an Employee of the Insured acting in good faith:
|
(a)
|
on an instruction from a software contractor who has a written agreement with the Insured to design, implement or service programs for a Computer System covered by this Insuring Agreement, or
|
|
(b)
|
on an instruction transmitted by Tested telex or similar means of Tested communication identified in the application for this bond purportedly sent by a customer, financial institution or automated clearing house.
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
DATA PROCESSING SERVICE OPERATIONS
|
(G)
|
Loss sustained by a Client of the Insured resulting directly from a fraudulent:
|
|
(1)
|
entry of Electronic Data or a Computer Program into, or
|
|
(2)
|
change of Electronic Data or a Computer Program within a Computer System covered under the terms of the
COMPUTER SYSTEMS FRAUD
Insuring Agreement, or
|
|
(3)
|
entry or change of Electronic Data during electronic transmission or physical transit from the Insured to its Client, provided that the entry or change causes:
|
|
(i)
|
Property to be transferred, paid or delivered,
|
|
(ii)
|
an account of the Client, or a customer of the Client, to be added, deleted, debited or credited, or
|
|
(iii)
|
an unauthorized account or a fictitious account to be debited or credited,
|
and for which loss
the Insured is legally liable to the Client as a provider of data processing services for such Client.
In this Insuring Agreement,
fraudulent entry or change shall include such entry or change made by an Employee of the Insured acting in good faith:
|
(a)
|
on an instruction from a software contractor who has a written agreement with the Insured to design, implement or service programs for a Computer System covered by this Insuring Agreement, or
|
|
(b)
|
on an instruction transmitted by Tested telex or similar means of Tested communication identified in the application for this bond purportedly sent by a customer, financial institution or automated clearing house.
|
In this Insuring Agreement, Client means an entity for which the Insured serves as data processor under the terms of a
written agreement.
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
VOICE INITIATED TRANSFER FRAUD
|
(H)
|
Loss resulting directly from the Insured having, in good faith, transferred Funds from a Customers account through a Computer System covered under the terms of the
COMPUTER SYSTEMS FRAUD
Insuring Agreement
in reliance upon a fraudulent voice instruction transmitted by telephone which was purported to be from:
|
|
(1)
|
an officer, director, partner or employee of a Customer of the Insured who was authorized by the Customer to instruct the Insured to make such transfer,
|
|
(2)
|
an individual person who is a Customer of the Insured, or
|
|
(3)
|
an Employee of the Insured in another office of the Insured who was authorized by the Insured to instruct other Employees of the Insured to transfer Funds,
|
and was received by an Employee of the Insured specifically designated to receive and act upon such instructions, but the voice instruction was
not from a person described in (1), (2) or (3) above, provided that:
|
(i)
|
such voice instruction was electronically recorded by the Insured and required password(s) or code word(s) given; and
|
|
(ii)
|
if the transfer was in excess of the amount shown on the Declarations Page as the verification call-back amount for this Insuring Agreement, the voice instruction was verified by a call-back according to a prearranged
procedure.
|
As used in this Insuring Agreement, Customer means an entity or individual which has a written agreement with the
Insured authorizing the Insured to rely on voice instructions to initiate transfers and has provided the Insured with the names of persons authorized to initiate such transfers, and with which the Insured has established an instruction verification
mechanism.
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
TELEFACSIMILE TRANSFER FRAUD
|
(I)
|
Loss resulting directly from the Insured having, in good faith, transferred or delivered Funds, Certificated Securities or Uncertificated Securities through a Computer System covered under the terms of the
COMPUTER
SYSTEMS FRAUD
Insuring Agreement in reliance upon a fraudulent instruction received through a Telefacsimile Device, and which instruction:
|
|
(1)
|
purports and reasonably appears to have originated from:
|
|
(a)
|
a Customer of the Insured,
|
|
(b)
|
another financial institution, or
|
|
(c)
|
another office of the Insured
|
but, in fact, was not originated by the Customer or entity
whose identification it bears, and
|
(2)
|
contains a valid test code which proves to have been used by a person who was not authorized to make use of it, and
|
|
(3)
|
contains the name of a person authorized to initiate such transfer;
|
provided that, if the
transfer was in excess of the amount shown on the Declarations as the verification call-back amount for this Insuring Agreement, the instructions was verified by a call-back according to a prearranged procedure.
As used in this Insuring Agreement, Customer means an entity or individual which has a written agreement with the Insured authorizing the
Insured to rely on Telefacsimile Device instructions to initiate transfers and has provided the Insured with the names of persons authorized to initiate such transfers, and with which the Insured has established an instruction verification
mechanism.
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
DESTRUCTION OF DATA OR PROGRAMS BY HACKER
|
(J)
|
Loss resulting directly from the malicious destruction of, or damage to, Electronic Data or Computer Programs owned by the Insured or for which the Insured is legally liable while stored within a Computer System covered
under the terms of the
COMPUTER SYSTEMS FRAUD
Insuring Agreement. The liability of the Company shall be limited to the cost of duplication of such Electronic Data or Computer Programs from other Electronic Data or Computer Programs which
shall have been furnished by the Insured.
|
In the event, however, that destroyed or damaged Computer Programs cannot be
duplicated from other Computer Programs, the Company will pay the cost incurred for computer time, computer programmers, consultants or other technical specialists as is reasonable necessary to restore the Computer Programs to substantially the
previous level of operational capability.
DESTRUCTION OF DATA OR PROGRAMS BY VIRUS
|
(K)
|
Loss resulting directly from the malicious destruction of, or damage to, Electronic Data or Computer Programs owned by the Insured or for which the Insured is legally liable while stored within a Computer System covered
under the terms of the
COMPUTER SYSTEMS FRAUD
Insuring Agreement if such destruction or damage was caused by a computer program or similar instruction which was written or altered to incorporate a hidden instruction designed to destroy or
damage Electronic Data or Computer Programs in the Computer System in which the computer program or instruction so written or so altered is used.
|
The liability of the Company shall be limited to the cost of duplication of such Electronic Data or Computer Programs from other Electronic
Data or Computer Programs which shall have been furnished by the Insured.
In the event, however, that destroyed or damaged Computer
Programs cannot be duplicated from other Computer Programs, the Company will pay the cost incurred for computer time, computer programmers, consultants or other technical specialists as is reasonably necessary to restore the Computer Programs to
substantially the previous level of operational capability.
|
|
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|
2-14057
|
|
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|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
Special Condition:
Under this Insuring Agreement, Single Loss means all
covered costs incurred by the Insured between the time destruction or damage is discovered and the time the Computer System is restored to substantially the previous level of operational capability. Recurrence of destruction or damage after the
Computer System is restored shall constitute a separate Single Loss.
VOICE COMPUTER SYSTEM FRAUD
|
(L)
|
Loss resulting directly from charges for voice telephone long-distance toll calls which were incurred due to the fraudulent use or fraudulent manipulation of an Account Code or System Password required to obtain access
to a Voice Computer System owned or leased by the Insured, installed on the Insureds premises, whose System Administration is performed and controlled by the Insured; provided, however, that the unauthorized access was not made possible by
|
|
(1)
|
failure to incorporate a System Password feature or failure to change the System Password at least once every 30 days thereafter, or
|
|
(2)
|
failure to have a call-disconnect feature in operation to automatically terminate a callers access to the Voice Computer System after not more than three unsuccessful attempts to input an Account Code.
|
Special Condition:
Under this Insuring Agreement, Single Loss means loss resulting from toll call charges
made only on telephone lines directly controlled by one Voice Computer System and only toll call charges occurring for a period of not more than 30 days inclusive of the date on which the first such toll call charge was made.
5.
|
GENERAL AGREEMENTS A. ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION, MERGER OR PURCHASE OF ASSETS-NOTICE is hereby deleted in its entirety and is replaced with the following:
|
ADDITIONAL OFFICES OR EMPLOYEES OR COMPUTER SYSTEMS - CONSOLIDATION, MERGER OR PURCHASE OF ASSETS OR COMPUTER SYSTEMS
|
A.
|
If the Insured shall, while this bond is in force, establish any additional offices, other than by consolidation
or merger with, or purchase or acquisition of assets or liabilities or computer systems of, another institution,
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
such offices and computer systems shall be automatically covered hereunder from the date of such establishment without the requirement of notice to the Underwriter or the payment of additional
premium for the remainder of the premium period.
|
If the Insured shall, while this bond is in force, consolidate or merge
with, or purchase or acquire assets or liabilities or computer systems of, another institution, the Insured shall not have such coverage as is afforded under this bond for loss which:
|
(a)
|
has occurred or will occur in offices or premises or computer systems, or
|
|
(b)
|
has been caused or will be caused by an employee or employees of such institution, or
|
|
(c)
|
has arisen or will arise out of the assets or liabilities or computer systems acquired by the Insured as a result of such consolidation, merger or purchase of assets or liabilities or computer systems unless the Insured
shall:
|
|
(i)
|
give the Underwriter written notice of the proposed consolidation, merger or purchase of assets or liabilities or computer systems prior to the proposed effective date of such action; and
|
|
(ii)
|
obtain the written consent of the Underwriter to extend the coverage provided by this bond to such additional offices or premises or computer systems, Employees and other exposures; and
|
|
(iii)
|
upon obtaining such consent, pay to the Underwriter an additional premium.
|
6.
|
Solely for the coverage provided by this rider, Section 1. DEFINITIONS (m) Property of the CONDITIONS AND LIMITATIONS section is hereby amended to include Electronic Data and Computer Programs.
|
|
|
|
|
|
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|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
7.
|
Solely for the coverage provided by this rider, Section 1. DEFINITIONS of the CONDITIONS AND LIMITATIONS section is hereby amended by adding the following definitions to the end thereof:
|
|
(i)
|
Account Code means a confidential and protected string of characters which identifies or authenticates a person and permits that person to gain access to a Voice Computer System for the purpose of making toll calls or
utilizing voice mail box messaging capabilities or other similar functional features of the System;
|
|
(ii)
|
Computer Program means a set of related electronic instructions which direct the operations and functions of a computer or devices connected to it which enable the computer or devices to receive, process, store or send
Electronic Data;
|
|
(iii)
|
Computer System means:
|
|
(1)
|
computers with related peripheral components, including storage components wherever located;
|
|
(2)
|
systems and applications software;
|
|
(3)
|
terminal devices; and
|
|
(4)
|
related communication networks, including the internet
|
by which Electronic Data are
electronically collected, transmitted, processed, stored and retrieved;
|
(iv)
|
Electronic Data means facts or information converted to a form usable in a Computer System by Computer Programs and which is stored on magnetic tapes or disks, or optical storage disks or other bulk media;
|
|
(v)
|
Funds means Money on deposit in an account;
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
(vi)
|
System Administration means the performance of security functions including but not limited to defining authorized persons to access a Voice Computer System and adding, changing and deleting Account Codes or passwords
in connection therewith; and invoking or revoking a System option which directs telephone call routing or which adds, moves or drops telephone lines or which performs any other similar activity allowed by a hardware or
software-based
System option that has been incorporated by a manufacturer or vendor into a System or any component thereof provided said System option is not intended for the sole use of such manufacturer or
vendor;
|
|
(vii)
|
System Maintenance means the performance of hardware and software installation, diagnostics and corrections and similar activities that are performed in the usual custom and practice by a manufacturer or vendor to
establish or maintain the basic operational functionality of a Voice Computer System or any component thereof;
|
|
(viii)
|
System Password means a confidential and protected string of characters which identifies or authenticates a person and permits that person to gain access to a Voice Computer System or any portion thereof for the purpose
of performing System Administration or System Maintenance activities;
|
|
(ix)
|
Telefacsimile Device means a machine capable of sending or receiving a duplicate image of a document by means of electronic impulses transmitted through a telephone line and which reproduces the duplicate image on
paper;
|
|
(x)
|
Tested means a method of authenticating the contents of a communication by placing a valid test key on it which has been agreed upon by the Insured and a customer, automated clearing house, or another financial
institution for the purpose of protecting the integrity of the communication in the ordinary course of business;
|
|
(xi)
|
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;
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
2)
|
of a type commonly dealt in 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;
|
|
(xii)
|
Voice Computer System means a Computer System installed in one location which functions as a private branch exchange (PBX), voice mail processor, automated call attendant or provides a similar capability used for the
direction or routing of telephone calls in a voice communications network.
|
8.
|
Solely for the coverage provided by this rider, Section 2. EXCLUSIONS of the CONDITIONS AND LIMITATIONS section is hereby amended by adding the following definitions to the end thereof:
|
|
(i)
|
any loss of the type or kind covered by any other Insuring Agreement provided in this financial institution bond, regardless of any deductible amount or limit of liability;
|
|
(ii)
|
loss caused by a director or Employee of the Insured or by a person in collusion with any director or Employee of the Insured; (Collusion shall include the willful withholding of knowledge from the Insured by any
director or Employee that a fraudulent act by a person not an Employee has been or will be perpetrated against the Insured.);
|
|
(iii)
|
loss resulting directly or indirectly from entry or change of Electronic Data or Computer Programs in a Computer System, unless covered under the
COMPUTER SYSTEMS FRAUD
or
DATA PROCESSING SERVICE OPERATIONS
Insuring Agreements;
|
|
(iv)
|
loss resulting directly or indirectly from the Insured having transferred Funds in reliance on the validity of a voice instruction, unless covered under the
COMPUTER SYSTEMS FRAUD
or
VOICE INITIATED TRANSFER
FRAUD
Insuring Agreements;
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
(v)
|
loss resulting directly or indirectly by the Insured having transferred or delivered Funds, Certificated Securities or Uncertificated Securities in reliance on an instruction received through a Telefacsimile Device,
unless covered under the
TELEFACSIMILE TRANSFER FRAUD
Insuring Agreement;
|
|
(vi)
|
loss resulting directly or indirectly from theft of confidential information;
|
|
(vii)
|
loss resulting directly or indirectly from the assumption of liability by the Insured by contract unless the liability arises from a loss covered by this rider and would be imposed on the Insured regardless of the
existence of the contract;
|
|
(viii)
|
the cost of duplication of Electronic Data or Computer Programs, unless covered under the
DESTRUCTION OF DATA OR PROGRAMS BY HACKER
or
DESTRUCTION OF DATA OR PROGRAMS BY VIRUS
Insuring Agreements;
|
|
(ix)
|
loss involving a Voice Computer System, unless covered under the
VOICE COMPUTER SYSTEM FRAUD
Insuring Agreement;
|
|
(x)
|
loss resulting directly or indirectly from:
|
|
(1)
|
written instructions or advices, or
|
|
(2)
|
telegraphic or cable instructions or advices;
|
unless the instructions or advices are Tested
and the loss is covered under the
COMPUTER SYSTEMS FRAUD
or
DATA PROCESSING SERVICE OPERATIONS
Insuring Agreements;
|
(xi)
|
loss resulting directly or indirectly from negotiable instruments, securities, documents or other written instruments which bear a forged signature, or are counterfeit, altered or otherwise fraudulent and which are used
as source documentation in the preparation of Electronic Data or manually keyed into a data terminal;
|
|
(xii)
|
loss resulting directly or indirectly from the fraudulent preparation, or fraudulent modification of Computer Programs unless covered under the
COMPUTER
SYSTEMS FRAUD
or
DATA
PROCESSING SERVICE
OPERATIONS
Insuring Agreements;
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
(xiii)
|
loss resulting directly or indirectly from:
|
|
a.
|
mechanical failure, faulty construction, error in design, latent defect, fire, wear or tear, gradual deterioration, electrical disturbance or electrical surge which affects a Computer System; or
|
|
b.
|
failure or breakdown of electronic data processing media; or
|
|
c.
|
error or omission in programming or processing;
|
|
(xiv)
|
loss as a result of a threat to Computer System operations;
|
|
(xv)
|
loss resulting directly or indirectly from the use of a telephone credit, debit, charge, identification or similar card to gain access to the Insureds Voice Computer System;
|
|
(xvi)
|
loss resulting directly or indirectly from the input of Electronic Data into a Computer System terminal device either on the premises of a customer of the Insured or under the control of such customer by a person who
had authorized access to the customers authentication mechanism.
|
|
(xvii)
|
loss resulting directly or indirectly from payments made or withdrawals from a depositors account involving items of deposit which are not finally paid for any reason;
|
|
(xviii)
|
loss of potential income, including but not limited to interest and dividends;
|
|
(xix)
|
loss of any type for which the Insured is legally liable, except compensatory damages, but not multiples thereof, arising directly from a loss covered under this policy;
|
|
(xx)
|
any fees, costs and expenses incurred by the Insured;
|
|
(xxi)
|
indirect or consequential loss of any nature;
|
|
(xxii)
|
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;
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
5
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
(xxiii)
|
loss due to riot or civil commotion or loss due to military, naval or usurped power, war or insurrection;
|
|
(xxiv)
|
loss resulting directly or indirectly from the effects of nuclear fission or fusion or radioactivity; provided, however, that this exclusion shall not apply to loss resulting from industrial uses of nuclear energy; and
|
|
(xxv)
|
loss as a result of a threat
|
|
1)
|
to do bodily harm to any person;
|
|
2)
|
to do damage to the premises or property of the Insured; or
|
|
3)
|
to Computer Systems operations;
|
9.
|
Solely for the coverage provided by this rider, Section 5. NOTICE/PROOF - LEGAL PROCEEDINGS AGAINST UNDERWRITER of the CONDITIONS AND LIMITATIONS section is hereby amended by adding the following section to the end
thereof:
|
|
(g)
|
Proof of loss for claim under the Voice Initiated Transfer Fraud Insuring Agreement must include electronic recordings of such voice instructions and the verification call-back, if such call-back was required.
|
|
(h)
|
Proof of loss for claim under the Telefacsimile Transfer Fraud Insuring Agreement must include a copy of the document reproduced by the Telefacsimile Device.
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
© All rights reserved.
|
|
|
|
|
|
MNSCPT
|
|
END 5
|
|
|
ENDORSEMENT#
6
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
FRAUDULENT TRANSFER
INSTRUCTIONS VIA TELEPHONE AND EMAIL
1. In consideration of the premium charged, it is hereby understood and agreed that the following
Insuring Agreement is added to the bond:
FRAUDULENT TRANSFER INSTRUCTIONS VIA TELEPHONE AND EMAIL
Loss resulting directly from the Insured having, in good faith, transferred Money on deposit in a Customers account, or a Customers
Certificated Securities, in reliance upon a fraudulent instruction transmitted to the Insured via telephone or electronic mail and which purported to be from:
|
(b)
|
an Employee of the Insured who was acting on instructions or authority of such Customer; or
|
|
(c)
|
another financial institution acting on behalf of such Customer with authority to make such instructions,
|
and the instruction was received by an Employee of the Insured specifically authorized by the Insured to receive and act upon such
instructions, but the instruction was not from a person described in (a), (b) or (c) above, provided that:
|
(1)
|
for any transfer exceeding the amount set forth in Item 7 of this Rider, the Insured verified the instruction via a password, PIN, other security code, call back to a predetermined telephone number set forth in the
Insureds Written agreement with such Customer or other verification procedure approved in writing by the Underwriter; and
|
|
(2)
|
solely with respect to instructions transmitted via telephone, the Insured preserved a contemporaneous record the instruction that verifies the use of the a password, PIN or other security code, or of the call back, if
any.
|
|
2.
|
As used in this Rider, Customer means a natural person or entity that has a Written agreement with the Insured authorizing the Insured to transfer Money on deposit in an account or Certificated Securities in reliance
upon instructions transmitted to the Insured via the means utilized to transmit the fraudulent instruction.
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
|
|
|
|
|
|
MNSCPT
|
|
END 6
|
|
|
ENDORSEMENT#
6
(Continued)
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
3.
|
The following additional Exclusions are added to the Bond applicable only to this Insuring Agreement:
|
|
(a)
|
loss resulting directly or indirectly from a fraudulent instruction if the sender, or anyone acting in collusion with the sender, ever had authorized access to such Customers password, PIN or other security code;
|
|
(b)
|
loss resulting directly or indirectly from the assumption of liability by the Insured by contract unless the liability arises from a loss covered by this rider and would not be imposed on the Insured regardless of the
existence of the contract; Liability of the Underwriter under this Insuring Agreement shall be a part of, not in addition to, the Aggregate Limit of Liability of this Bond.
|
|
4.
|
For purposes of this Insuring Agreement, all loss or losses involving one natural person or entity, or one group of natural persons or entities acting together, shall be a Single Loss without regard to the number of
transfers or the number of instructions involved. A series of losses involving unidentified natural persons or entities but arising from the same method of operation shall be deemed to involve the same natural person or entity and shall be treated
as Single Loss.
|
|
5.
|
The Single Loss Limit of Liability applicable to loss under this insuring Agreement is: $3,000,000
|
|
6.
|
The Single Loss Deductible applicable to loss under this Insuring Agreement is: $25,000
|
|
7.
|
The amount of any single transfer for which verification via a call back will be required is: $25,000
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
© All rights reserved.
|
|
|
|
|
|
MNSCPT
|
|
END 6
|
|
|
ENDORSEMENT#
7
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
UNAUTHORIZED
SIGNATURES
It is agreed that:
(1)
|
The attached bond is amended by adding an additional Insuring Agreement as follows:
|
UNAUTHORIZED SIGNATURES
(2)
|
Loss resulting directly from the insured having accepted, paid or cashed any check or withdrawal order, draft, made or drawn on a customers account which bears the signature or endorsement of one other than a
person whose name and signature is on the application on file with the Insured as a signatory on such account.
|
(3)
|
It shall be a condition precedent to the Insureds right of recovery under this rider that the Insured shall have on file signatures all persons who are authorized signatories on such account.
|
(4)
|
The Limit of Liability for the coverage provided by this rider shall be
One Hundred Thousand ($100,000)
being understood, however, that such liability shall be part of and not in addition to the Limit of
Liability stated in item 3. of the Declarations of the attached bond.
|
(5)
|
The Underwriter shall not be liable under the Unauthorized Signatures Rider for any loss on account of any instrument unless the amount of such instrument shall be excess of
Five Thousand (5,000)
herein called
Deductible Amount) and unless such loss on account of such instrument, after deducting all recoveries on account of such instrument made prior to the payment of such loss by the Underwriter, shall be in excess of such Deductible Amount and then for
such excess only, but in no event more than the amount of the attached bond, or the amount of coverage under the Unauthorized Signatures Rider, if the amount of such coverage is less than the amount of the attached bond.
|
(6)
|
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, limitations, conditions, or provisions of the attached bond other than as above stated.
|
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
© All rights reserved.
|
|
|
|
|
|
MNSCPT
|
|
END 7
|
|
|
ENDORSEMENT#
8
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
DEFINITION OF
EMPLOYEE AMENDED RIDER
(REMOVE AND WHICH IS NOT A BANK)
It is agreed that:
1.
|
SECTION 1. DEFINITIONS (a) Employee (9), paragraph (2) is hereby amended to read as follows:
|
For an Investment Company named as Insured while performing acts coming within the scope of the usual duties of an Officer or Employee of any
Investment Company named as Insured herein, or while acting as a member of any committee duly elected or appointed to examine or audit or have custody of or access to Property of any such Investment Company, provided that only Employees or partners
of a transfer agent, shareholder, accounting record-keeper or administrator which is an affiliated person as defined in the Investment Company Act of 1940, of an Investment Company named as Insured or is an affiliated person of the advisor,
underwriter or administrator of such Investment Company, shall be included within the definition of Employee.
2.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated.
|
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
© All rights reserved.
|
|
|
|
|
|
MNSCPT
|
|
END 8
|
|
|
EN
DORSEM
EN
T#
9
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March
1,
2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR
CAPITAL
LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
ADDITIONAL INSUREDS
RIDER
It is agreed that:
1.
|
Item 1 of the Declarations, Name of Insured (herein called Insured), is amended to include the following listed entities as additional Insureds under the attached bond:
|
Solar Senior Capital Ltd.
Solar
Capital Partners, LLC
Solar Capital Management, LLC
Solar Capital, LLC
2.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated.
|
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
2-14057
|
|
© All rights reserved.
|
|
|
|
|
|
MNSCPT
|
|
END 9
|
|
|
ENDORSEMENT#
10
|
|
|
|
|
This endorsement, effective
12:01
am
|
|
March 1, 2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR CAPITAL LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
NOTICE OF CLAIM
(REPORTING BY E-MAIL)
In
consideration of the premium charged, it is hereby understood and agreed as follows:
1.
|
Email Reporting of Claims
: In addition to the postal address set forth for any Notice of Claim Reporting under this policy, such notice may also be given in writing pursuant to the policys other terms and
conditions to the Insurer by email at the following email address:
|
c- claim@AIG.com
Your email must reference the policy number for this policy. The date of the Insurers receipt of the emailed notice shall constitute the
date of notice.
In addition to Notice of Claim Reporting via email, notice may also be given to the Insurer by mailing such notice to:
AIG, Financial Lines Claims, P.O. Box 25947, Shawnee Mission, KS 66225 or faxing such notice to (866) 227- 1750.
2.
|
Definitions
: For this endorsement only, the following definitions shall apply:
|
|
(a)
|
Insurer means the Insurer, Underwriter or Company or other name specifically ascribed in this policy as the insurance company or underwriter for this policy.
|
|
(b)
|
Notice of Claim Reporting means notice of claim/ circumstance, notice of loss or other reference in the policy designated for reporting of claims, loss or occurrences or situations
that may give rise or result in loss under this policy.
|
|
(c)
|
Policy means the policy, bond or other insurance product to which this endorsement is attached.
|
3.
|
This endorsement does not apply to any Kidnap & Ransom/ Extortion Coverage Section, if any, provided by this policy.
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 010
|
|
|
|
|
|
99758 (8/ 08)
|
|
Page 1 of 1
|
|
|
ENDORSEMENT#
11
|
|
|
|
|
This endorsement, effective at
12:01 am
|
|
March 1, 2017
|
|
forms a part of
|
Policy number
01-245-65-04
|
|
|
|
|
Issued to:
SOLAR CAPITAL LTD.
|
|
|
|
|
By:
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
ECONOMIC SANCTIONS
ENDORSEMENT
This endorsement modifies insurance provided under the following:
Coverage shall only be provided and payment of loss under this policy shall only be made in full compliance with enforceable United Nations economic and trade
sanctions and the trade and economic sanction laws or regulations of the European Union and the United States of America, including, but not limited to, sanctions, laws and regulations administered and enforced by the U.S. Treasury Departments
Office of Foreign Assets Control (OFAC).
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
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|
© All rights reserved.
|
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2-14057
|
|
END 011
|
|
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|
119679 (9/ 15)
|
|
Page 1 of 1
|
|
|
ENDORSEMENT#
12
|
|
|
|
|
This endorsement, effective
12:01 am
|
|
March 1, 2017
|
|
forms a part of
|
policy number
01-245-65-04
|
|
|
|
|
issued to
SOLAR CAPITAL LTD.
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
FORMS INDEX ENDORSEMENT
The contents of the Policy is comprised of the following forms:
|
|
|
|
|
|
|
EDITION
|
|
|
FORM NUMBER
|
|
DATE
|
|
FORM TITLE
|
41205
|
|
04/95
|
|
INVESTMENT COMPANY BLANKET BOND
|
|
|
|
41206
|
|
09/84
|
|
Investment Company Blanket Bond guts
|
|
|
|
83231
|
|
01/09
|
|
NEW YORK LAW 3420 AMENDATORY ENDORSEMENT
|
|
|
|
69898
|
|
09/06
|
|
NEW YORK AMENDATORY - CANCELLATION/NONRENEWAL
|
|
|
|
113011
|
|
10/12
|
|
PROTECTED INFORMATION EXCLUSION
|
|
|
|
103011
|
|
10/09
|
|
OMNIBUS WORDING
|
|
|
|
MNSCPT
|
|
|
|
COMPUTER CRIME COVERAGE RIDER
|
|
|
|
MNSCPT
|
|
|
|
FRAUDULENT TRANSFER INSTRUCTIONS VIA TELEPHONE AND EMAIL
|
|
|
|
MNSCPT
|
|
|
|
UNAUTHORIZED SIGNATURES
|
|
|
|
MNSCPT
|
|
|
|
DEFINITION OF EMPLOYEE AMENDED RIDER
|
|
|
|
MNSCPT
|
|
|
|
ADDITIONAL INSUREDS RIDER
|
|
|
|
99758
|
|
08/08
|
|
NOTICE OF CLAIM (REPORTING BY
E-MAIL)
|
|
|
|
119679
|
|
09/15
|
|
ECONOMIC SANCTIONS ENDORSEMENT
|
|
|
|
78859
|
|
10/01
|
|
FORMS INDEX ENDORSEMENT
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
|
© All rights reserved.
|
|
|
|
|
|
2-14057
|
|
END 012
|
|
|
|
|
|
78859 (10/ 01)
|
|
Page 1 of 1
|
|
|
CLAIM REPORTING FORM
|
|
|
Issuing Company:
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
|
|
|
|
|
|
Reported under Policy/Bond Number:
01-245-65-04
|
|
Date:
|
|
Type of Coverage:
D&O
E&O
Fidelity
(complete the Fidelity Supplemental on the next page) Insureds
|
|
Name, as given on Policy Declarations (Face Page):
|
If the party involved is different from Insured Name (as given on Policy Declarations) state relationship:
|
|
|
Insurance Broker/Agent:
|
|
AON RISK SERVICES NORTHEAST
INC
|
|
|
|
Address:
|
|
199 WATER ST, NEW YORK, NY
10038-3526
|
|
|
|
|
|
|
|
Contact:
|
|
MICHAEL ONEILL
|
|
Phone:
|
|
|
|
|
eMail:
|
|
zachary.whelan@aon.com
|
|
|
|
|
|
|
|
Send Notice of Claims to:
|
|
AIG
|
|
Phone:
|
|
(888) 602- 5246
|
|
|
Financial Lines Claims
|
|
Fax:
|
|
(866) 227- 1750
|
|
|
P.O. Box 25947
|
|
Email:
|
|
c- Claim@AIG.com
|
|
|
Shawnee Mission, KS 66225
|
|
|
|
|
CLAIM REPORTING FORM
FIDELITY SUPPLEMENTAL
(Only complete this supplemental if the Claim is being reported under Fidelity Coverage)
|
Issuing Company:
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
Reported under Policy/ Bond Number:
01-245-65-04
|
|
|
|
|
|
|
|
|
|
Date of Discovery:
|
|
|
|
|
|
Estimated Amount of loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cause of Loss:
|
|
Employee Dishonesty
|
|
|
|
Computer Fraud
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds Transfer
|
|
|
|
Robbery/Burglary
|
|
|
|
|
|
|
|
|
|
|
|
|
ID Theft
|
|
|
|
Forgery
|
|
|
|
|
|
|
|
|
|
|
|
|
Client Property
|
|
|
|
In Transit
|
|
|
|
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|
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|
|
|
|
|
|
ERISA
|
|
|
|
Credit Card Forgery
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
if Other, describe:
|
|
|
|
|
|
|
|
|
|
Send Notice Of Claims To:
|
|
AIG
|
|
Phone:
|
|
(888)
602-
5246
|
|
|
Financial Lines Claims
|
|
Fax:
|
|
(866)
227-
1750
|
|
|
P.O. Box 25947
|
|
Email:
|
|
c-
Claim@AIG.com
|
|
|
Shawnee Mission, KS 66225
|
|
|
|
|
centralized Customer Link and Information Management
EXHIBIT B
CERTIFICATE OF THE SECRETARY
The undersigned, Richard L. Peteka, Chief Financial Officer, Treasurer and Secretary of Solar Capital Ltd., a Maryland corporation (the
Corporation), does hereby certify that:
1. This certificate is being delivered to the Securities and Exchange Commission
(the SEC) in connection with the filing of the Corporations fidelity bond (the Bond) pursuant to Rule 17g-1 of the Investment Company Act of 1940, as amended, and the SEC is entitled to rely on this certificate for
purposes of the filing.
2. The undersigned is the duly elected, qualified and acting Chief Financial Officer, Treasurer and
Secretary of the Corporation, and has custody of the corporate records of the Corporation and is a proper officer to make this certification.
3. Attached hereto is a copy of the resolutions approved by the Board of Directors of the Corporation, including a majority of the Board
of the Directors who are not interested persons of the Corporation, approving the amount, type, form and coverage of the Bond.
4. Premiums have been paid for the period March 1, 2017 to March 1, 2018.
IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed this 3rd day of March, 2017.
|
/s/ Richard L. Peteka
|
Richard L. Peteka
|
Chief Financial Officer, Treasurer and Secretary
|
Approval of Annual Fidelity Bond Renewal
WHEREAS
, Section 17(g) of the Investment Company Act of 1940, as amended (the
1940 Act
),
and Rule 17g-1(a) thereunder, require each business development company (
BDC
), such as Solar Capital Ltd. (the
Company
) to provide and maintain a bond which shall be issued by a reputable fidelity
insurance company, authorized to do business in the place where the bond is issued, to protect the BDC against larceny and embezzlement, covering each officer and employee of the BDC who may singly, or jointly with others, have access to the
securities or funds of the BDC, either directly or through authority to draw upon such funds of, or to direct generally, the disposition of such securities, unless the officer or employee has such access solely through his position as an officer or
employee of a bank (each, a
covered person
);
and
WHEREAS
, Rule 17g-1 specifies
that the bond may be in the form of (i) an individual bond for each covered person, or a schedule or blanket bond covering such persons, (ii) a blanket bond which names the Company as the only insured, or (iii) a bond which names the
Company and one or more other parties as insureds in a joint insured bond, as permitted by Rule 17g-1;
and
WHEREAS
, Rule 17g-1 requires that a majority of directors who are not interested persons of the BDC, as such
term is defined under the 1940 Act (the
Non-Interested Directors
), approve periodically (but not less than once every 12 months) the reasonableness of the form and amount of the bond, with due consideration to the value of
the aggregate assets of the Company to which any covered person may have access, the type and terms of the arrangements made for the custody and safekeeping of such assets, and the nature of securities and other investments to be held by the
Company, and pursuant to factors contained in Rule 17g-1, which are described in the accompanying memorandum provided herewith;
and
WHEREAS
, under Rule 17g-1, the Company is required to make certain filings with the U.S. Securities and Exchange
Commission (the
Commission
) and give certain notices to each member of the Companys Board of Directors (the
Board
) in connection with the bond, and designate an officer who shall make such
filings and give such notices;
and
WHEREAS
, the Board, including all of the Non-Interested Directors, have
considered the expected aggregate value of the securities and funds of the Company to which the Companys officers and employees may have access (either directly or through authority to draw upon such funds or to direct generally the
disposition of such securities), the type and terms of the arrangements made for the custody of such securities and funds, the nature of securities and other investments to be held by the Company, the accounting procedures and controls of the
Company, the nature and method of conducting the operations of the Company, the requirements of Section 17(g) of the 1940 Act and Rule 17g-1 thereunder, and all other factors deemed relevant by the Board, including the Non-Interested Directors;
NOW, THEREFORE, BE IT RESOLVED
, that having considered the expected aggregate value of the securities and funds of
the Company to which the Companys officers and employees may have access (either directly or through authority to draw upon such funds or to direct generally the disposition of such securities), the type and terms of the arrangements made for
the custody of such securities and funds, the
nature of securities and other investments to be held by the Company, the accounting procedures and controls of the Company, the nature and method of conducting the operations of the Company, the
requirements of Section 17(g) of the 1940 Act and Rule 17g-1 thereunder, and all other factors deemed relevant by the Board, including the Non-Interested Directors, the Board, including all of the Non-Interested Directors, determine that
the amount, type, form, premium and coverage, covering the officers and employees of the Company and insuring the Company against loss from fraudulent or dishonest acts, including larceny and embezzlement, issued by National Union Fire Insurance
Company of Pittsburgh, Pennsylvania in the amount of $3,000,000 (the
Joint Fidelity Bond
) be, and hereby are approved;
and
FURTHER RESOLVED
, that the Board, including all of the Non-Interested Directors, have determined the portion of the
premium to be paid by the Company be, and it hereby is, approved, taking all relevant factors into consideration including, but not limited to, the number of the other insured parties named as insureds, the nature of business activities of the other
insured parties, the amount of the Joint Fidelity Bond and the amount of the premium for such Joint Fidelity Bond, the ratable allocation of the premium among the insureds, and the extent to which the share of the premium allocated to the Company is
less than the premium the Company would have had to pay had such joint insured bond not been obtained;
and
FURTHER RESOLVED
, that the Authorized Officers of the Company be, and each of them hereby is, authorized and directed to
cause the Company to pay its ratable allocation of the annual premium payable with respect to the Joint Fidelity Bond and to enter into and execute, on behalf of the Company, an agreement reflecting the provisions of the Joint Fidelity Bond and
relating to the division of proceeds in the event of a joint fidelity loss, as required by Rule 17g-1(f) (the
Joint Insured Bond Allocation Agreement
);
and
FURTHER RESOLVED
, that the terms and conditions of the Joint Insured Bond Allocation Agreement, in substantially the
form provided herewith, be, and hereby are, approved and adopted in all respects, with such amendments thereto as an Authorized Officer may approve, and with approval of such further amendments evidenced by their inclusion in the Joint Insured Bond
Allocation Agreement;
and
FURTHER RESOLVED
, that the Authorized Officers be, and each of them hereby is,
authorized to make filings with the Commission, in consultation with counsel to the Company, and to give notices as may be required, from time to time, pursuant to Rule 17g-1(g) and Rule 17g-1(h) under the 1940 Act;
and
FURTHER RESOLVED
, that the Companys Authorized Officers be, and each of them hereby is, authorized and directed to
amend the Joint Fidelity Bond, in consultation with counsel to the Company, and to execute such other documents as he or she may deem necessary or appropriate to effect the intent of this resolution;
and
FURTHER RESOLVED
, that each of the Authorized Officers is hereby authorized in the name and on behalf of the Company, to
make or cause to be made, and to execute and deliver, all such additional agreements, documents, instruments and certifications and to take all such steps, and to make all such payments, fees and remittances, as any one or more of such officers may
at any time or times deem necessary or desirable in order to effectuate the purpose and intent of the foregoing resolutions;
and
FURTHER RESOLVED
, that any and all actions previously taken by the Company
or any of its directors, officers or other employees in connection with the documents, and actions contemplated by the foregoing resolutions be, and they hereby are, ratified, confirmed, approved and adopted in all respects as and for the acts and
deeds of the Company;
and
FURTHER RESOLVED
, that for the purposes of the foregoing resolutions, the
Authorized Officers of the Company shall be the Chief Executive Officer, the Chief Operating Officer, Chief Financial Officer and the Secretary (the
Authorized Officers
).
EXHIBIT C
AGREEMENT REGARDING THE ALLOCATION OF
FIDELITY BOND RECOVERIES
THIS
AGREEMENT is made as of February 22, 2017, by and among Solar Capital Ltd. and Solar Senior Capital Ltd. (each, an Insured, and, together, the Insureds), each acting on behalf of itself.
WHEREAS
, each Insured is a closed-end management investment company which has elected to be regulated as a business development company
under the Investment Company Act of 1940, as amended (the 1940 Act);
and
WHEREAS
, each of the Insureds is named
as an insured party under a joint fidelity bond (the Bond);
and
WHEREAS
, the Insureds desire to confirm the
criteria by which recoveries under the Bond shall be allocated between the Insureds;
NOW, THEREFORE
, it is agreed as follows:
|
1.
|
In the event that recovery is received under the Bond as a result of a loss sustained by more than one Insured, the following rules shall apply for determining the priorities for satisfaction of such claims under the
Bond:
|
|
a.
|
First, each Insured shall receive an equitable and proportionate share of the recovery, but at least equal to the amount it would have received had it provided and maintained a single insured bond with the minimum
coverage required under Rule 17g-1(d)(1) under the 1940 Act; and
|
|
b.
|
Second, the remaining amount of recovery, if any, shall then be applied to each claim of each Insured in proportion to the amount of the unreimbursed loss in excess of such minimums incurred by each Insured.
|
|
2.
|
The obligations of an Insured under this Agreement are not binding upon any of the board members of an Insured or Insured shareholders individually, but are binding only with respect to the assets of that Insured.
|
[
Remainder of Page Intentionally Left Blank
]
IN WITNESS WHEREOF, the insured parties have caused this Agreement to be executed by their
respective officers thereunto duly authorized.
|
|
|
SOLAR CAPITAL LTD.
|
|
|
By:
|
|
/s/ Richard L. Peteka
|
Name:
|
|
Richard L. Peteka
|
Title:
|
|
Chief Financial Officer, Treasurer and Secretary
|
|
SOLAR SENIOR CAPITAL LTD.
|
|
|
By:
|
|
/s/ Richard L. Peteka
|
Name:
|
|
Richard L. Peteka
|
Title:
|
|
Chief Financial Officer, Treasurer and Secretary
|
EXHIBIT D
I have examined the Fidelity Bond limit requirements, as prescribed in Rule 17g-1 for the parties insured under National Union Fire Insurance
Company of Pittsburgh Pennsylvania Bond No. 01-245-65-04. This limits analysis is based upon the total asset value of each registrant as stated in the relevant renewal application.
The results of the analysis are as follows:
|
|
|
|
|
|
|
|
|
Registrant
|
|
Asset value
|
|
|
Required
Limit
|
|
Solar Capital Ltd.
|
|
$
|
1,650,547,000
|
|
|
$
|
1,500,000
|
|
Solar Senior Capital Ltd.
|
|
$
|
521,989,000
|
|
|
$
|
900,000
|
|
|
|
|
|
|
|
|
|
|
Total Limit:
|
|
|
|
|
|
$
|
2,400,000
|
|
As you are aware, the limit under the current bond is $3,000,000. Therefore, according to these calculations,
the bond amount is sufficient to meet requirements of Rule 17g-1.
|
Sincerely,
|
|
/s/ Richard L. Peteka
|
Richard L. Peteka
|
Chief Financial Officer, Treasurer and Secretary
|
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