The
UNDERWRITER, in consideration of the required premium, and in reliance on the
APPLICATION and all other statements made and information furnished to the
UNDERWRITER by the INSURED, and subject to the DECLARATIONS made a part of this
bond and to all other terms and conditions of this bond, agrees to pay the
INSURED for:
INSURING
CLAUSES
1. EMPLOYEE
COVERAGE
Loss
resulting directly from Larceny or Embezzlement committed by any Employee, alone
or in collusion with others.
2. PREMISES
COVERAGE
Loss of
Property resulting directly from robbery, burglary, common-law or statutory
larceny, hold-up, misplacement, mysterious unexplainable disappearance, damage,
destruction or abstraction or removal from the possession, custody or control of
the INSURED, while such Property is lodged or deposited within any offices or
premises located anywhere.
Loss of,
or damage to furnishings, fixtures, stationery, supplies, equipment, safes or
vaults (but excluding all electronic data processing equipment) within any of
the INSURED'S offices resulting directly from robbery, burglary, common law or
statutory larceny or hold-up of such offices, or attempt thereat, or by
vandalism or malicious mischief, or loss through damage to any office resulting
directly from robbery, burglary, common law or statutory larceny or hold-up of
such office, or attempts thereat, or to the interior of any such office by
vandalism or malicious mischief, provided, in any event that the INSURED is the
owner of such offices, furnishings, fixtures, stationery, supplies, equipment,
safes or vaults or is legally liable for such loss or damage always excepting,
however, a loss or damage through fire.
3. TRANSIT
COVERAGE
Loss of
Property resulting directly from robbery, common law or statutory larceny,
misplacement, mysterious unexplainable disappearance, damage to or destruction
of, while the Property is in transit anywhere:
|
a.
|
in
an armored motor vehicle, including loading and unloading
thereof,
|
|
b.
|
in
the custody of a natural person acting as a messenger of the INSURED,
or
|
|
c.
|
in
the custody of a Transportation Company and being transported in a
conveyance other than an armored motor vehicle provided, however, that
covered Property transported in such manner is limited to the
following:
|
|
II.
|
securities
issued in registered form which are not endorsed or are restrictively
endorsed, or
|
|
III.
|
negotiable
instruments not payable to bearer, which are not endorsed or are
restrictively endorsed.
|
For
All the Commitments You Make
®
Coverage
under this INSURING CLAUSE begins immediately on the receipt of such Property by
the natural person acting as a messenger or Transportation Company and ends
immediately on delivery to the premises of the addressee or to any
representative of the addressee located anywhere.
4.
|
FORGERY
OR ALTERATION COVERAGE
|
|
Loss
resulting directly from:
|
|
a.
|
Forgery
or fraudulent material alteration of, on or in any bills of exchange,
checks, drafts, acceptances, certificates of deposits, promissory notes,
due bills, money orders, orders upon public treasuries, letters of credit,
other written promises, orders or directions to pay sums certain in money,
or receipts for the withdrawal of Property,
or
|
|
b.
|
transferring,
paying or delivering any funds or other Property, or establishing any
credit or giving any value in reliance on any written instructions,
advices, or applications directed to the INSURED authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or other
Property, which instructions, advices or applications purport to bear the
handwritten signature of any customer of the INSURED, or shareholder or
subscriber to shares of an Investment Company, or of any banking
institution, stockbroker or Employee but which instructions or
applications either bear a Forgery or a fraudulent material alteration
without the knowledge and consent of such customer, shareholder,
subscriber to shares, banking institution, stockbroker, or
Employee;
|
excluding,
however, under this INSURING CLAUSE any loss covered under INSURING CLAUSE 5. of
this bond, whether or not coverage for INSURING CLAUSE 5. is provided for in the
DECLARATIONS of this bond.
A
mechanically reproduced facsimile signature is treated the same as a handwritten
signature.
5.
|
EXTENDED
FORGERY COVERAGE
|
Loss
resulting directly from the INSURED having in good faith, and in the ordinary
course of business, whether for its own account or for the account of others, in
any capacity:
|
a.
|
acquired,
accepted or received, sold or delivered, given value, extended credit, or
assumed liability in reliance upon any original Securities, documents or
other written instruments which
prove:
|
|
I.
|
to
bear a Forgery or fraudulent material
alteration,
|
|
II.
|
to
have been lost or stolen, or
|
|
III.
|
to
be Counterfeit, or
|
|
b.
|
guaranteed
in writing or witnessed any signatures 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 which pass or purport to pass title to
them.
|
Actual
physical possession, and continued actual physical possession, of such
Securities, documents or other written instruments by an Employee, Custodian, or
a Federal or State chartered deposit institution is a condition precedent to the
INSURED having relied on such items. Release or return of such items
is an acknowledgment by the INSURED that it no longer relies on such
items.
A
mechanically reproduced facsimile signature is treated the same as a handwritten
signature.
For
All the Commitments You Make
®
6.
|
COUNTERFEIT
CURRENCY COVERAGE
|
Loss
resulting directly from the receipt by the INSURED, in good faith, of any
Counterfeit money orders, currencies or coin of any country.
7.
|
THREATS
TO PERSONS COVERAGE
|
Loss
resulting directly from surrender of Property away from an office of the INSURED
as a result of a threat communicated to the INSURED to do bodily harm to an
Employee as defined in paragraphs (1), (2) and (5) of the definition, a Relative
or invitee of such Employee, or a resident of the household of such Employee,
who is, or allegedly is, being held captive provided, however, that prior to the
surrender of such Property:
|
a.
|
the
Employee who receives the threat has made a reasonable effort to notify an
officer of the INSURED who is not involved in such threat,
and
|
|
b.
|
the
INSURED has made a reasonable effort to notify the Federal Bureau of
Investigation and local law enforcement authorities concerning such
threat.
|
It is
agreed that for purposes of the INSURING CLAUSE, any Employee of the INSURED, as
set forth in the preceding paragraph, shall be deemed to be an INSURED
hereunder, but only with respect to the surrender of money, securities and other
tangible personal property in which such Employee has a legal or equitable
interest.
8.
|
COMPUTER
SYSTEMS COVERAGE
|
Loss
resulting directly from fraudulent entry of data into or change of data elements
or programs within the INSURED'S proprietary Computer System or a Computer
System operated or used by the INSURED and declared in the APPLICATION, provided
that the fraudulent entry or change causes:
|
a.
|
Property
to be transferred, paid or
delivered,
|
|
b.
|
an
account of the INSURED, or of its customer, to be added, deleted, debited,
or credited, or
|
|
c.
|
an
unauthorized account or a fictitious account to be debited or
credited.
|
9.
|
VOICE
INITIATED TRANSACTION COVERAGE
|
Loss
resulting directly from a Voice Initiated Transaction directed to the INSURED
authorizing the transfer of dividends or redemption proceeds of Investment
Company shares from a Customer's account, provided such Voice Initiated
Transaction was:
|
a.
|
received
at the INSURED'S offices by those Employees of the INSURED specifically
authorized to receive the Voice Initiated
Transaction,
|
|
b.
|
made
by a person purporting to be a Customer,
and
|
|
c.
|
made
by said person for the purpose of causing the INSURED or Customer to
sustain a loss or making an improper personal financial gain for such
person or any other person.
|
In order
for coverage to apply under this INSURING CLAUSE, all Voice Initiated
Transactions must be received and processed in accordance with the Designated
Procedures outlined in the APPLICATION furnished to the
UNDERWRITER.
For
All the Commitments You Make
®
10
.
|
UNCOLLECTIBLE ITEMS OF DEPOSIT
COVERAGE
|
Loss
resulting directly from the INSURED having credited an account of a customer,
shareholder or subscriber on the faith of any Items of Deposit which prove to be
uncollectible, provided that the crediting of said account causes:
|
a.
|
redemption’s
or withdrawals to be permitted,
|
|
b.
|
shares
to be issued, or
|
from an
account of an Investment Company.
In order
for coverage to apply under this INSURING CLAUSE, the INSURED must hold Items of
Deposit for the minimum number of days stated in the APPLICATION before
permitting any redemption’s or withdrawals, issuing any shares or paying any
dividends with respect to such Items of Deposit.
Items of
Deposit shall not be deemed uncollectible until the INSURED'S standard
collection procedures have failed.
11.
|
AUDIT
EXPENSE COVERAGE
|
Reasonable
expense incurred by the INSURED for that part of an audit or examination
required by any governmental regulatory authority or self-regulatory
organization and actually conducted by such authority, organization or their
appointee by reason of the discovery of loss sustained by the INSURED and
covered by this bond.
CONDITIONS
AND LIMITATIONS
|
A.
|
GENERAL
EXCLUSIONS APPLICABLE TO ALL INSURING
CLAUSES
|
This bond
does not directly or indirectly cover:
|
(1)
|
loss
not reported to the UNDERWRITER in writing within thirty (30) days after
termination of this bond as an
entirety;
|
|
(2)
|
loss
due to riot or civil commotion outside the United States of America and
Canada, or any loss due to military, naval or usurped power, war or
insurrection. However, this exclusion shall not apply to loss
which occurs in transit in the circumstances recited in INSURING CLAUSE
3., provided that when such transit was initiated there was no knowledge
on the part of any person acting for the INSURED of such riot, civil
commotion, military, naval or usurped power, war or
insurrection;
|
|
(3)
|
loss
resulting from dishonest acts by any member of the Board of Directors or
Board of Trustees of the INSURED who is not an Employee, acting alone or
in collusion with others;
|
|
(4)
|
loss,
or that part of any loss, resulting solely from any violation by the
INSURED or by any Employee of any law, or rule, or regulation pursuant to
any law regulating:
|
For
All the Commitments You Make
®
|
a.
|
the
issuance, purchase or sale of
securities,
|
|
b.
|
transactions
on security or commodity exchanges or the over-the-counter
markets,
|
|
c.
|
investment
companies, or
|
|
(5)
|
loss
of potential income including, but not limited to, interest and dividends
not realized by the INSURED or by any customer of the
INSURED;
|
|
(6)
|
loss
resulting from indirect or consequential loss of any
nature;
|
|
(7)
|
damages
of any type for which the INSURED is legally liable, except compensatory
damages (but not multiples thereof) arising from a loss covered under this
bond;
|
|
(8)
|
loss
resulting from the effects of nuclear fission or fusion or
radioactivity;
|
|
(9)
|
loss
resulting from the theft of confidential information, material or
data;
|
|
(10)
|
costs,
fees and expenses incurred by the INSURED in establishing the existence or
amount of loss under this bond, provided however, this EXCLUSION shall not
apply to INSURING CLAUSE 11.;
|
|
(11)
|
loss
resulting from voice requests or instructions received over the telephone,
provided however, this EXCLUSION shall not apply to INSURING CLAUSE 7. or
9.
|
B.
|
SPECIFIC
EXCLUSIONS APPLICABLE TO ALL INSURING CLAUSES EXCEPT INSURING CLAUSE
1.
|
This bond
does not directly or indirectly cover:
(1)
|
loss
caused by an Employee, provided, however, this EXCLUSION shall not apply
to loss covered under INSURING CLAUSE 2. or 3. which results directly from
misplacement, mysterious unexplainable disappearance, or damage to or
destruction of Property;
|
(2)
|
loss
through the surrender of Property away from an office of the INSURED as a
result of a threat:
|
|
a.
|
to
do bodily harm to any person, except loss of Property in transit in the
custody of any person acting as messenger of the INSURED, provided that
when such transit was initiated there was no knowledge by the INSURED of
any such threat, and provided further that this EXCLUSION shall not apply
to INSURING CLAUSE 7., or
|
|
b.
|
to
do damage to the premises or property of the
INSURED;
|
(3)
|
loss
involving Items of Deposit which are not finally paid for any reason
provided however, that this EXCLUSION shall not apply to INSURING CLAUSE
10.;
|
(4)
|
loss
resulting from payments made or withdrawals from any account involving
erroneous credits to such account;
|
(5)
|
loss
of Property while in the mail:
|
For
All the Commitments You Make
®
(6)
|
loss
of Property while in the custody of a Transportation Company, provided
however, that this EXCLUSION shall not apply to INSURING CLAUSE
3.;
|
(7)
|
loss
resulting from the failure for any reason of a financial or depository
institution, its receiver or other liquidator to pay or deliver funds or
other Property to the INSURED provided further that this EXCLUSION shall
not apply to loss of Property resulting directly from robbery, burglary,
hold-up, misplacement, mysterious unexplainable disappearance, damage,
destruction or abstraction from the possession, custody or control of the
INSURED.
|
C.
|
EXCLUSIONS
APPLICABLE TO ALL INSURING CLAUSES EXCEPT INSURING CLAUSES 1., 4.,
5.
|
This bond
does not directly or indirectly cover:
(1)
|
loss
resulting from forgery or any
alteration;
|
(2)
|
loss
resulting from the complete or partial non-payment of or default on any
loan whether such loan was procured in good faith or through trick,
artifice, fraud or false pretenses;
|
(3)
|
loss
involving a counterfeit provided, however, this EXCLUSION shall not apply
to INSURING CLAUSE 5. or 6.
|
This bond
applies only to loss first discovered by any partner, director, trustee, officer
or supervisory employee of the INSURED during the BOND
PERIOD. Discovery occurs at the earlier of such individuals being
aware of;
|
a.
|
facts
which may subsequently result in a loss of a type covered by this bond,
or
|
|
b.
|
an
actual or potential claim in which it is alleged that the INSURED is
liable to a third party, regardless of when the act or acts causing or
contributing to such loss occurred, even though the amount of loss does
not exceed the applicable DEDUCTIBLE AMOUNT or the exact amount or details
of loss may not then be known.
|
3.
|
NOTICE
TO UNDERWRITER - PROOF - LEGAL PROCEEDINGS AGAINST
UNDERWRITER
|
|
a.
|
At
the earliest practicable moment, not to exceed thirty (30) days after
discovery of loss, the INSURED shall give the UNDERWRITER notice
thereof.
|
|
b.
|
Within
six (6) months after such discovery, the INSURED shall furnish to the
UNDERWRITER proof of loss, duly sworn to, with full
particulars.
|
|
c.
|
Securities
listed in a proof of loss shall be identified by certificate or bond
numbers, if issued with them.
|
|
d.
|
Legal
proceedings for the recovery of any loss under this bond shall not be
brought prior to the expiration of sixty (60) days after the proof of loss
is filed with the UNDERWRITER or after the expiration of twenty-four (24)
months from the discovery of such
loss.
|
|
e.
|
This
bond affords coverage only in favor of the INSURED. No claim,
suit, action or legal proceedings shall be brought under this bond by
anyone other than the INSURED.
|
For
All the Commitments You Make
®
4.
|
LIMIT
OF LIABILITY/NON - REDUCTION AND NON-ACCUMULATION OF
LIABILITY
|
At all
times prior to termination of this bond, this bond shall continue in force for
the limit stated in the applicable sections of ITEM 3. of the DECLARATIONS,
notwithstanding any previous loss for which the UNDERWRITER may have paid or be
liable to pay under this bond provided, however, that the liability of the
UNDERWRITER under this bond with respect to all loss resulting
from:
|
a.
|
any
one act of burglary, robbery or hold-up, or attempt thereat, in which no
Employee is concerned or implicated,
or
|
|
b.
|
any
one unintentional or negligent act on the part of any one person resulting
in damage to or destruction or misplacement of Property,
or
|
|
c.
|
all
acts, other than those specified in a. above, of any one person,
or
|
|
d.
|
any
one casualty or event other than those specified in a., b., or c.
above,
|
shall be
deemed to be one loss and 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.
|
All
acts, as specified in c. above, of any one person
which
|
|
i.
|
directly
or indirectly aid in any way wrongful acts of any other person or persons,
or
|
|
ii.
|
permit
the continuation of wrongful acts of any other person or
persons
|
whether
such acts are committed with or without the knowledge of the wrongful acts of
the person so aided, and whether such acts are committed with or without the
intent to aid such other person, shall be deemed to be one loss with the
wrongful acts of all persons so aided.
The
UNDERWRITER shall not be liable under any INSURING CLAUSES of this bond on
account of loss 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
4. of the DECLARATIONS, 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.
There
shall be no deductible applicable to any loss under INSURING CLAUSE 1.
sustained by any Investment Company.
6.
|
COURT
COSTS AND ATTORNEYS' FEES
|
The
UNDERWRITER will indemnify the INSURED for 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
claim, suit or legal proceeding with respect to which the INSURED would be
entitled to recovery under this bond. However, with respect to
INSURING CLAUSE 1. this Section shall only apply in the event that:
|
a.
|
an
Employee admits to being guilty of Larceny or
Embezzlement,
|
|
b.
|
an
Employee is adjudicated to be guilty of Larceny or
Embezzlement, or
|
|
c.
|
in
the absence of a. or b. above, an arbitration panel agrees, after a review
of an agreed statement of facts between the UNDERWRITER and the INSURED,
that an Employee would be found guilty of Larceny or Embezzlement if such
Employee were prosecuted.
|
For
All the Commitments You Make
®
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 copies of all
pleadings and pertinent papers to the UNDERWRITER. The UNDERWRITER
may, at its sole option, elect to conduct the defense of all or part of such
legal proceeding. The defense by the UNDERWRITER shall be in the name
of the INSURED through attorneys selected by the UNDERWRITER. The
INSURED shall provide all reasonable information and assistance as required by
the UNDERWRITER for such defense.
If the
amount demanded in any such suit or legal proceeding is greater than the LIMIT
OF LIABILITY stated in ITEM 3. of the DECLARATIONS for the applicable INSURING
CLAUSE, or if a DEDUCTIBLE AMOUNT is applicable, or both, the UNDERWRITER'S
liability for court costs and attorneys' fees incurred in defending all or part
of such legal proceeding is limited to the proportion of such court costs and
attorneys' fees incurred that the LIMIT OF LIABILITY stated in ITEM 3. of the
DECLARATIONS for the applicable INSURING CLAUSE bears to the total of the amount
demanded in such suit or legal proceeding.
Amounts
paid by the UNDERWRITER for court costs and attorneys' fees shall be in addition
to the LIMIT OF LIABILITY stated in ITEM 3. of the DECLARATIONS.
If the
UNDERWRITER declines to defend the INSURED, no settlement without the prior
written consent of the UNDERWRITER nor judgment against the INSURED shall
determine the existence, extent or amount of coverage under this bond, and the
UNDERWRITER shall not be liable for any costs, fees and expenses incurred by the
INSURED.
The value
of any loss of Property other than books of account or other records used by the
INSURED in the conduct of its business, for which a claim is made shall be
determined by the average market value of such Property on the business day
immediately preceding discovery of such loss provided, however, that the value
of any Property replaced by the INSURED with the consent of the UNDERWRITER and
prior to the settlement of any claim for such Property shall be actual market
value at the time of replacement.
In the
case of a loss of interim certificates, warrants, rights or other securities,
the production of which is necessary to the exercise of subscription,
conversion, redemption or deposit privileges, the value of them shall be the
market value of such privileges immediately preceding their expiration if said
loss 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.
The value
of any loss of Property consisting of books of account or other records used by
the INSURED in the conduct of its business shall be the amount paid by the
INSURED for blank books, blank pages, or other materials which replace the lost
books of account or other records, plus the cost of labor paid by the INSURED
for the actual transcription or copying of data to reproduce such books of
account or other records.
For
All the Commitments You Make
®
8.
|
VALUATION
OF PREMISES AND FURNISHINGS
|
In the
case of loss or damage to any office of the INSURED or to the furnishings,
fixtures, stationery, supplies, equipment, safes or vaults, the UNDERWRITER
shall not be liable for more than the actual cash value thereof, or for more
than the actual cost of 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 the
actual cash value or the cost of replacement or repair, it shall be determined
by arbitration.
In the
event of a loss of securities covered under this bond, the UNDERWRITER may, at
its sole discretion, purchase replacement securities, tender the value of the
securities in money, or issue its indemnity to effect replacement
securities.
The
indemnity required from the INSURED under the terms of this Section against all
loss, cost or expense arising from the replacement of securities by the
UNDERWRITER'S indemnity shall be:
|
a.
|
for
securities having a value less than or equal to the applicable DEDUCTIBLE
AMOUNT one hundred (100% percent);
|
|
b.
|
for
securities having a value in excess of the DEDUCTIBLE AMOUNT but within
the applicable LIMIT OF LIABILITY- the percentage that the DEDUCTIBLE
AMOUNT bears to the value of the
securities;
|
|
c.
|
for
securities having a value greater than the applicable LIMIT OF LIABILITY
the percentage that the DEDUCTIBLE AMOUNT and portion in excess of the
applicable LIMIT OF LIABILITY bears to the value of the
securities.
|
The value
referred to in a., b., and c. above is the value in accordance with SECTION 8,
VALUATION OF PROPERTY, regardless of the value of such securities at the time
the loss under the UNDERWRITER'S indemnity is sustained.
The
UNDERWRITER is not required to issue its indemnity for any portion of a loss of
securities which is not covered by this bond; however, the UNDERWRITER may do so
as a courtesy to the INSURED and at its sole discretion.
The
INSURED shall pay the proportion of the UNDERWRITER'S premium charge for the
UNDERWRITER'S indemnity as set forth in a., b., and c. above. No
portion of the LIMIT OF LIABILITY shall be used as payment of premium for any
indemnity purchased by the INSURED to obtain replacement
securities.
10.
|
SUBROGATION
- ASSIGNMENT-RECOVERY
|
In the
event of a payment under this bond, the UNDERWRITER shall be subrogated to all
of the INSURED'S rights of recovery against any person or entity to the extent
of such payment. On request, the INSURED shall deliver to the
UNDERWRITER an assignment of the INSURED'S rights, title and interest and causes
of action against any person or entity to the extent of such
payment.
For
All the Commitments You Make
®
Recoveries,
whether effected by the UNDERWRITER or by the INSURED, shall be applied net of
the expense of such recovery, first to the satisfaction of the INSURED'S loss
which would otherwise have been paid but for the fact that it is in excess of
the applicable LIMIT OF LIABILITY, second, to the UNDERWRITER in satisfaction of
amounts paid in settlement of the INSURED'S claim and third, to the INSURED in
satisfaction of the applicable DEDUCTIBLE AMOUNT. Recovery from
reinsurance and/or indemnity of the UNDERWRITER shall not be deemed a recovery
under this section.
11.
|
COOPERATION
OF INSURED
|
At the
UNDERWRITER'S request and at reasonable times and places designated by the
UNDERWRITER the INSURED shall submit to examination by the UNDERWRITER and
subscribe to the same under oath, produce for the UNDERWRITER'S examination all
pertinent records, and cooperate with the UNDERWRITER in all matters pertaining
to the loss.
The
INSURED shall execute all papers and render assistance to secure to the
UNDERWRITER the rights and causes of action provided for under this
bond. The INSURED shall do nothing after loss to prejudice such
rights or causes of action.
Coverage
under this bond shall apply only as excess over any valid and collectible
insurance, indemnity or suretyship obtained by or on behalf of the INSURED, a
Transportation Company, or another entity on whose premises the loss occurred or
which employed the person causing the loss or engaged the messenger conveying
the Property involved.
13.
|
ADDITIONAL
COMPANIES INCLUDED AS INSURED
|
If more
than one corporation, or Investment Company, or any combination of them is
included as the INSURED herein:
|
a.
|
The
total liability of the UNDERWRITER under this bond 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 under this bond if all such losses
were sustained by any one of them.
|
|
b.
|
Only
the first named INSURED shall be deemed to be the sole agent of the others
for all purposes under this bond, including but not limited to the giving
or receiving of any notice or proof required to be given and for the
purpose of effecting or accepting any amendments to or termination of this
bond. The UNDERWRITER shall furnish each Investment Company
with a copy of the bond and with any amendment thereto, together with a
copy of each formal filing of claim by any other named INSURED and
notification of the terms of the settlement of each such claim prior to
the execution of such settlement.
|
|
c.
|
The
UNDERWRITER shall not be responsible for the proper application of any
payment made hereunder to the first named
INSURED.
|
|
d.
|
Knowledge
possessed or discovery made by any partner, director, trustee, officer or
supervisory employee of any INSURED shall constitute knowledge or
discovery by all the INSUREDS for the purposes of this
bond.
|
|
e.
|
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 purpose of this
bond.
|
For
All the Commitments You Make
®
14.
|
ADDITIONAL
OFFICES OR EMPLOYEES - CONSOLIDATION, MERGER OR PURCHASE OR ACQUISITION OF
ASSETS OR LIABILITIES - NOTICE TO
UNDERWRITER
|
If the
INSURED, other than an Investment Company, while this bond is in force, merges
or consolidates with, or purchases or acquires assets or liabilities of another
institution, the INSURED shall not have the coverage afforded under this bond
for loss which:
|
a.
|
has
occurred or will occur in offices or on premises,
or
|
|
b.
|
has
been caused or will be caused by an employee or employees,
or
|
|
c.
|
has
arisen or will arise out of the assets or liabilities
acquired
|
|
i.
|
gives
the UNDERWRITER written notice of the proposed consolidation, merger or
purchase or acquisition of assets or liabilities prior to the proposed
effective date of such action, and
|
|
ii.
|
obtains
the written consent of the UNDERWRITER to extend some or all of the
coverage provided by this bond to such additional exposure,
and
|
|
iii.
|
on
obtaining such consent pays to the UNDERWRITER an additional
premium.
|
15.
|
CHANGE
OF CONTROL - NOTICE TO UNDERWRITER
|
When the
INSURED learns of a change in control (other than in an Investment Company), as
set forth in Section 2(a) (9) of the Investment Company Act of 1940, the INSURED
shall within thirty (30) days give written notice to the UNDERWRITER setting
forth:
|
a.
|
the
names of the transferors and transferees (or the names of the beneficial
owners if the voting securities are registered in another
name),
|
|
b.
|
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
|
|
c.
|
the
total number of outstanding voting
securities.
|
Failure
to give the required notice shall result in termination of coverage for any loss
involving a transferee, to be effective on the date of such change in
control.
16.
|
REPRESENTATIONS
MADE BY INSURED
|
The
INSURED represents that all information it has furnished in the APPLICATION for
this bond or otherwise is complete, true and correct. Such
APPLICATION and other information constitute part of this bond.
The
INSURED must promptly notify the UNDERWRITER of any change in any fact or
circumstance which materially affects the risk assumed by the UNDERWRITER under
this bond.
Any
misrepresentation, omission, concealment or incorrect statement of a material
fact, in the APPLICATION or otherwise, shall be grounds for rescission of this
bond.
17.
|
TERMINATION
- CANCELLATION
|
If the
bond is for a sole INSURED, it shall not be terminated or canceled unless
written notice shall have been given by the acting party to the affected party
and to the Securities and Exchange Commission, Washington, D.C., not less than
sixty (60) days prior to the effective date of such termination or
cancellation.
For
All the Commitments You Make
®
If the
bond is for a joint INSURED, it shall not be terminated or canceled unless
written notice shall have been given by the acting party to the affected party,
and by the UNDERWRITER to all INSURED Investment Companies and to the Securities
and Exchange Commission, Washington, D.C., not less than sixty (60) days prior
to the effective date of such termination or cancellation.
This bond
will terminate as to any one INSURED, other than an Investment Company,
immediately on the taking over of such INSURED by a receiver or other liquidator
or by State or Federal officials, or immediately on 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, disposition of all of its assets or otherwise.
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.
Coverage
will terminate as to any Employee:
|
a.
|
immediately
on any partner, director, trustee, or officer or supervisory employee not
acting in collusion with such Employee, learning of any dishonest act
committed by such Employee at any time, whether in the employment of the
INSURED or otherwise, whether or not such act is of the type covered under
this bond, and whether against the INSURED or any other person or entity,
or
|
|
b.
|
sixty
(60) days after the receipt by each INSURED and by the Securities and
Exchange Commission, Washington, D.C., of a written notice from the
UNDERWRITER of its desire to terminate this bond as to such
Employee.
|
18.
|
CHANGE
OR MODIFICATION
|
This bond
or any instrument amending or affecting this bond may not be changed or modified
orally. No change in or modification of this bond shall be effective
except when made by written endorsement to this bond signed by an authorized
representative of the UNDERWRITER.
If this
bond is for a sole INSURED, no change or modification which would adversely
affect the rights of the INSURED shall be effective prior to sixty (60) days
after written notice has been furnished to the Securities and Exchange
Commission, Washington, D.C., by the acting party.
If this
bond is for a joint INSURED, no change or modification which would adversely
affect the rights of the INSURED shall be effective prior to sixty (60) days
after written notice has been furnished to all insured Investment Companies and
to the Securities and Exchange Commission, Washington, D.C., by the
UNDERWRITER.
For
All the Commitments You Make
®
|
1.
|
computers,
with related peripheral and storage components, wherever
located,
|
|
2.
|
systems
and applications software,
|
|
4.
|
related
communication networks by which data are electronically collected,
transmitted, processed, stored, and
retrieved.
|
Counterfeit
means an imitation
of an actual valid original which is intended to deceive and be taken as the
original.
Custodian
means the
institution designed by an Investment Company to maintain possession and control
of its assets.
Customer
means an individual,
corporate, partnership or trust customer shareholder or subscriber of an
Investment Company which has a written agreement with the INSURED for Voice
Initiated Transactions.
|
1.
|
an
officer of the INSURED,
|
|
2.
|
a
natural person while in the regular service of the INSURED at any of the
INSURED'S offices and compensated directly by the INSURED through its
payroll system and subject to the United States Internal Revenue Service
Form W-2 or equivalent income reporting plans of other countries, and whom
the INSURED has the right to control and direct both as to the result to
be accomplished and details and means by which such result is accomplished
in the performance of such service,
|
|
3.
|
an
attorney retained by the INSURED and an employee of such attorney while
either is performing legal services for the
INSURED,
|
|
4.
|
a
person provided by an employment contractor to perform clerical, premises
maintenance or security duties for the INSURED under the INSURED'S
supervision at any of the INSURED'S offices or
premises,
|
|
5.
|
an
employee of an institution merged or consolidated with the INSURED prior
to the effective date of this bond,
|
|
6.
|
a
guest student pursuing studies or performing duties in any of the
INSURED'S offices,
|
|
7.
|
each
natural person, partnership or corporation authorized by written agreement
with the INSURED to perform services as electronic data processor of
checks or other accounting records related to such checks but only while
such person, partnership or corporation is actually performing such
services and not:
|
|
a.
|
creating,
preparing, modifying or maintaining the INSURED'S computer software or
programs, or
|
|
b.
|
acting
as transfer agent or in any other agency capacity in issuing checks,
drafts or securities for the
INSURED,
|
|
8.
|
a
director or trustee of the INSURED, but only while performing acts within
the scope of the customary and usual duties of any officer or employee of
the INSURED 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
the INSURED, or
|
|
9.
|
any
partner, officer or employee of an investment adviser, an underwriter
(distributor), a transfer agent or shareholder accounting recordkeeper, or
an administrator, for an Investment Company while performing acts coming
within the scope of the customary and usual duties of an officer or
employee of an Investment Company or acting as a member of any committee
duly elected or appointed to examine, audit or have custody of or access
to Property of an Investment
Company.
|
For
All the Commitments You Make
®
The term
Employee shall not include any partner, officer or employee of a transfer agent,
shareholder accounting recordkeeper or administrator:
|
a.
|
which
is not an "affiliated person" (as defined in Section 2(a) of the
Investment Company Act of 1940) of an Investment Company or of the
investment adviser or underwriter (distributor) of such Investment
Company, or
|
|
b.
|
which
is a "bank" (as defined in Section 2(a) of the Investment Company Act of
1940).
|
This bond
does not afford coverage in favor of the employers of persons as set forth in 4.
and 7. above, and upon payment to the INSURED by the UNDERWRITER resulting
directly from 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 INSURED'S 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 provided for herein.
Each
employer of persons as set forth in 3., 4. and 7. above and the partners,
officers and other employees of such employers shall collectively be deemed to
be one person for all the purposes of this bond, excepting, however, the last
paragraph of Section 18.
Independent
contractors not specified in 3., 4.,7. above, intermediaries, agents, brokers or
other representatives of the same general character shall not be considered
Employees.
Forgery
means the signing of
the name of another person or organization with the intent to deceive but does
not mean a signature which consists in whole or in part of one's own name, with
or without authority, in any capacity, for any purpose.
Investment Company
means an
investment company registered under the Investment Company Act of 1940 and as
listed under the NAME OF INSURED on the DECLARATIONS.
Items of Deposit
means one or
more checks or drafts drawn upon a financial institution in the United States of
America.
Larceny or Embezzlement
means
larceny or embezzlement as set forth in Section 37 of the Investment
Company Act of 1940.
Property
means money (i.e.,
currency, coin, bank notes, or Federal Reserve notes); postage and revenue
stamps; U.S. Savings Stamps; securities, including any note, stock, treasury
stock, bond, debenture, evidence of indebtedness, certificate of deposit,
certificate of interest or participation in any profit-sharing agreement,
collateral trust certificate, preorganization certificate or subscription,
transferable share, investment contract, voting trust certificate, certificate
of deposit for a security, fractional undivided interest in oil, gas, or other
mineral rights, any interest or instruments commonly known as security under the
Investment Company Act of 1940, any other certificate of interest or
participation in, temporary or interim certificate for, receipt for, guarantee
of, or warrant or right to subscribe to or purchase any of the foregoing; bills
of exchange; acceptances; checks; withdrawal orders; money orders; travelers'
letters of credit; bills of lading; abstracts of title; insurance policies;
deeds; mortgages on real estate and/or upon chattels and interests therein;
assignments of such policies, mortgages and instruments; other valuable papers,
including books of accounts and other records used by the INSURED in the conduct
of its business (but excluding all electronic data processing records); and, all
other instruments similar to or in the nature of the foregoing in which the
INSURED acquired an interest at the time of the INSURED'S consolidation or
merger with, or purchase of the principal assets of, a predecessor or which are
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.
For
All the Commitments You Make
®
Relative
means the spouse of
an Employee or partner of the INSURED and any unmarried child supported wholly
by, or living in the home of, such Employee or partner and being related to them
by blood, marriage or legal guardianship.
Securities
, documents or other
written instruments means original (including original counterparts) negotiable
or non-negotiable instruments, or assignments thereof, which in and of
themselves represent an equitable interest, ownership, or debt and which are in
the ordinary course of business transferable by delivery of such instruments
with any necessary endorsements or assignments.
Transportation Company
means
any organization which provides its own or leased vehicles for transportation or
which provides freight forwarding or air express services.
Voice Initiated Election
means
any election concerning dividend options available to Investment Company
shareholders or subscribers which is requested by voice over the
telephone.
Voice Initiated Redemption
means any redemption of shares issued by an Investment Company which is
requested by voice over the telephone.
Voice Initiated Transaction(s)
means any Voice Initiated Redemption or Voice Initiated Election.
Chairman
|
|
Secretary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POLICYHOLDER
NOTICE
Economic
and Trade Sanctions Conditions
Ethics
and proper business conduct has been the cornerstone of CNA since 1897. While
much has changed during the last century, our commitment to these core values
has not wavered. We strongly believe that proper business conduct is more than
the practice of avoiding wrong; it is also a matter of choosing to do right.
Nowhere is this more essential than helping in the fight against terrorism. As
such, we are committed to complying with U.S. Department of Treasury Office of
Foreign Asset Control (OFAC) requirements.
Through a
variety of laws, OFAC administers and enforces economic sanctions against
countries and groups of individuals, such as terrorists and narcotics
traffickers. These laws prohibit
all
United States
citizens (including corporations and other entities) and permanent residents
from engaging in transactions with sanctioned countries and with individuals and
entities on the Specially Designated Nationals (SDN) list. Because
all U.S. citizens and companies are subject to this law, we wanted to be sure
you were aware of its scope and restrictions. If you haven’t already done so,
you may want to consider discussing this issue with your legal counsel to ensure
you are in compliance.
For
insurance companies, accepting premium from, issuing a policy to, insuring
property of, or making a claim payment to an individual or entity that is the
subject of U.S.-imposed economic sanctions or trade embargoes usually are
violations of these laws and regulations. Fines for violating OFAC requirements
can be substantial. CNA has established an OFAC compliance program part which
includes the use of exclusionary policy language. We believe this makes good
business sense for CNA and you.
The
purpose of this letter is to advise you that your policy includes OFAC
exclusionary policy language, which may reduce or eliminate certain
coverage. Specifically, if it is determined that your policy violates
certain Federal or State laws or regulations, such as the U.S. list of Specially
Designated Nationals or Blocked Persons (organizations or individuals associated
with terrorist groups), any term or condition of your policy will be null and
void to the extent it violates the applicable laws or regulations of the United
States.
We’re
sure you share our commitment to compliance and thank you for your
cooperation.
Your
policy language reads as follows:
ECONOMIC
AND TRADE SANCTIONS CONDITION
The
following condition is added to the Policy:
ECONOMIC
AND TRADE SANCTIONS CONDITION
In
accordance with laws and regulations of the United States concerning economic
and trade embargoes, this policy is void from its inception with respect to any
term or condition of this policy that violates any laws or regulations of the
United States concerning economic and trade embargoes including, but not limited
to the following:
1.
|
Any
insured, or any person or entity claiming the benefits of an insured, who
is or becomes a Specially Designated National or Blocked Person or who is
otherwise subject to U.S. economic or trade
sanctions;
|
ENDORSEMENT
NUMBER: 1
POLICY
NUMBER: 425135205
ISSUED
TO: The Taiwan Fund, Inc.
EFFECTIVE
DATE OF ENDORSEMENT:
This
endorsement, which forms a part of and is for attachment to the Policy issued by
the designated Insurers, takes effect on the effective date of said Policy at
the hour stated in said Policy and expires concurrently with said Policy unless
another effective date is shown above.
By
Authorized
Representative_________________________________________________________________________
(No
signature is required if this endorsement is issued with the Policy or if it is
effective on the Policy Effective Date)
2.
|
Any
claim or “suit” that is brought in a Sanctioned Country or by a Sanctioned
Country Government, where any action in connection with such claim or suit
is prohibited by U.S. economic or trade
sanctions;
|
3.
|
Any
claim or “suit” that is brought by any Specially Designated National or
Blocked Person or any person or entity who is otherwise subject to U.S.
economic or trade sanctions;
|
4.
|
Property
that is located in a Sanctioned Country or that is owned by, rented to or
in the care, custody or control of a Sanctioned Country Government, where
any activities related to such property are prohibited by U.S. economic or
trade sanctions; or
|
5.
|
Property
that is owned by, rented to or in the care, custody or control of a
Specially Designated National or Blocked Person, or any person or entity
who is otherwise subject to U.S. economic or trade
sanctions.
|
As used
in this endorsement a Specially Designated National or Blocked Person is any
person or entity that is on the list of Specially Designated Nationals and
Blocked Persons issued by the U.S. Treasury Department’s Office of Foreign Asset
Control (OFAC) as it may be from time to time amended.
As used
in this endorsement a Sanctioned Country is any country that is the subject of
trade or economic embargoes imposed by the laws or regulations of the United
States of America.
THIS
DISCLOSURE NOTICE DOES NOT PROVIDE COVERAGE NOR DOES THIS NOTICE REPLACE ANY
PROVISIONS OF YOUR POLICY. YOU SHOULD READ YOUR POLICY AND REVIEW
YOUR DECLARATIONS PAGE FOR COMPLETE INFORMATION ON THE COVERAGE AND PRICE OF
YOUR POLICY. IF THERE IS ANY CONFLICT BETWEEN THE POLICY AND THIS
NOTICE,
THE PROVISIONS
OF THE POLICY SHALL PREVAIL
. YOUR INDEPENDENT INSURANCE AGENT WILL BE
ABLE TO EXPLAIN THE TERMS OF THE CONTRACT IN DETAIL.
ENDORSEMENT
NUMBER: 1
POLICY
NUMBER: 425135205
ISSUED
TO: The Taiwan Fund, Inc.
EFFECTIVE
DATE OF ENDORSEMENT:
This
endorsement, which forms a part of and is for attachment to the Policy issued by
the designated Insurers, takes effect on the effective date of said Policy at
the hour stated in said Policy and expires concurrently with said Policy unless
another effective date is shown above.
By
Authorized
Representative_________________________________________________________________________
(No
signature is required if this endorsement is issued with the Policy or if it is
effective on the Policy Effective Date)
THIS
ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ECONOMIC
AND TRADE SANCTIONS CONDITION
The
following condition is added to the Policy:
ECONOMIC
AND TRADE SANCTIONS CONDITION
In
accordance with laws and regulations of the United States concerning economic
and trade embargoes, this policy is void from its inception with respect to any
term or condition of this policy that violates any laws or regulations of the
United States concerning economic and trade embargoes including, but not limited
to the following:
1.
|
Any
insured under this Policy, or any person or entity claiming the benefits
of such insured, who is or becomes a Specially Designated National or
Blocked Person or who is otherwise subject to U.S. economic or trade
sanctions;
|
2.
|
Any
claim or suit that is brought in a Sanctioned Country or by a Sanctioned
Country Government, where any action in connection with such claim or suit
is prohibited by U.S. economic or trade
sanctions;
|
3.
|
Any
claim or suit that is brought by any Specially Designated National or
Blocked Person or any person or entity who is otherwise subject to U.S.
economic or trade sanctions;
|
4.
|
Property
that is located in a Sanctioned Country or that is owned by, rented to or
in the care, custody or control of a Sanctioned Country Government, where
any activities related to such property are prohibited by U.S. economic or
trade sanctions; or
|
5.
|
Property
that is owned by, rented to or in the care, custody or control of a
Specially Designated National or Blocked Person, or any person or entity
who is otherwise subject to U.S. economic or trade
sanctions.
|
As used
in this endorsement a Specially Designated National or Blocked Person is any
person or entity that is on the list of Specially Designated Nationals and
Blocked Persons issued by the U.S. Treasury Department’s Office of Foreign Asset
Control (O.F.A.C.) as it may be from time to time amended.
As used
in this endorsement a Sanctioned Country is any country that is the subject of
trade or economic embargoes imposed by the laws or regulations of the United
States of America.
ENDORSEMENT
NUMBER: 2
POLICY
NUMBER: 425135205
ISSUED
TO: The Taiwan Fund, Inc.
EFFECTIVE
DATE OF ENDORSEMENT:
This
endorsement, which forms a part of and is for attachment to the Policy issued by
the designated Insurers, takes effect on the effective date of said Policy at
the hour stated in said Policy and expires concurrently with said Policy unless
another effective date is shown above.
By
Authorized Representative
_______________________________________________________________________
(No
signature is required if this endorsement is issued with the Policy or if it is
effective on the Policy Effective Date)
INVESTMENT
COMPANY BOND
GROWTH
IN SIZE PROVISIONS
In
consideration of the premium paid, it is understood and agreed that
CONDITIONS AND LIMITATIONS,
Section 14.
ADDITIONAL
OFFICES OR EMPLOYEES – CONSOLIDATION, MERGER OR PURCHASE OR ACQUISITION OF
ASSETS OR LIABILITIES – NOTICE TO UNDERWRITER
is amended by the addition
of the following:
If an
INSURED, other than an Investment Company as defined in the Policy, merges or
consolidates with or purchases or acquires assets or liabilities of another
entity, there is no coverage under this bond for loss which involves any assets
or employees acquired as a result of that transaction unless the INSURED gives
the UNDERWRITER written notice of the proposed transaction prior to its proposed
effective date and obtains the written consent of the UNDERWRITER to include
those assets or employees under this bond and pays the UNDERWRITER any
additional premium charged.
If an
INSURED creates, other than by acquisition, a new investment company required by
the SEC Reg 17g-1 to have coverage of the type afforded by this bond, that
investment company will be automatically insured hereunder, provided that the
total combined limit of liability for all INSURED covered hereunder, as required
by SEC Reg 17g-1, including the newly created investment company does not exceed
$2,000,000. If the coverage required for the newly created investment
company will exceed that limit, no coverage will be provided hereunder for the
investment company without the written consent of the UNDERWRITER.
If an
Investment Company requires an increase in limits to comply with SEC Reg. 17g-1
due to an increase in asset size, whether by growth of current funds insured
under the bond or by the addition of new funds, that increase in limits shall
take place automatically and will be covered until the next Annual Period
without payment of additional premium, provided that the total
combined limit of liability for all INSUREDS under this bond does not
exceed $2,000,000 after including the increase in limits needed due to the
increase in asset size. If the increase in limits needed as a result of the
increase in assets will exceed $2,000,000, then the increase will not occur
unless written consent of the UNDERWRITER is obtained.
Within 15
days of the end of each Annual Period, each Investment Company insured hereunder
shall advise the UNDERWRITER, in writing, of its current asset size as of the
conclusion of that Annual Period and shall pay to the UNDERWRITER any additional
premium required by it for any newly created investment companies or any
increase in limits that will carry into the current Annual Period.
DEFINITIONS
Annual Period
means each
consecutive twelve month period commencing on the effective date of this
bond.
This
endorsement, which forms a part of and is for attachment to the following
described Policy issued by the designated Insurers takes effect on the effective
date of said Policy, unless another effective date is shown below, at the hour
stated in said Policy and expires concurrently with said Policy.
Must
be Completed
|
|
Complete
Only When This Endorsement Is Not Prepared with the Policy
or
is Not to be Effective with the
Policy
|
ENDT.
NO.
3
|
POLICY
NO.
425135205
|
|
ISSUED
TO
|
EFFECTIVE
DATE OF
THIS
ENDORSEMENT
|
|
Countersigned
by ______________________________
Authorized
Representative
|
|
|
|
|
CNA
INSURANCE COMPANIES
STOP PAYMENT LEGAL
LIABILITY
It is
agreed that:
1.
|
The
attached bond is hereby amended by adding an additional Insuring Agreement
as follows:
|
STOP
PAYMENT LEGAL LIABILITY
Loss
which the Insured shall become legally obligated to pay as damages in connection
with any check, note or draft, other than a "travelers check" payable by the
Insured and drawn, made or accepted by any depositor of the Insured and arising
out of:
|
(a)
|
compliance
or failure to comply with any Notice to Stop Payment;
or
|
|
(c)
|
failure
to give proper Notice of Dishonor;
and
|
2.
|
This
Insuring Agreement applies only to Stop Payment Notice received by and
presentments first made to the Insured during the period this rider is in
force. The first sentence of Section 3 of the attached bond
does not apply to this Insuring
Agreement.
|
3.
|
In
lieu of the exclusions in the attached bond, the following exclusions are
applicable to this Insuring
Agreement:
|
|
(a)
|
liability
assumed by the Insured under any agreement to be responsible for
loss;
|
|
(b)
|
liability
arising out of dishonest of fraudulent acts of officers or employees of
the Insured.
|
4.
|
The
Single Loss Limit of Liability is $25,000 and the Single Loss Deductible
is $5,000 for the coverage provided by this rider shall it being
understood, however, that such liability shall be a part of and not in
addition to the Aggregate Limit of Liability stated in Item 3 of the
Declarations of the attached bond.
|
This
rider/endorsement, which forms part of and is for attachment to the following
described bond/policy issued by the designated Underwriter/Company takes effect
on the effective date of said bond/policy, unless another effective date is
shown below, at the hour stated in said bond/policy and expires concurrently
with said bond/policy.
Must
Be Completed
|
|
Complete
only when this rider/endorsement is not prepared with the
bond/policy
or is not to be effective with the bond/policy
|
Rider/Endorsement
No.
4
|
Policy
No.
425135205
|
|
Issued
to:
|
Effective
date of
this
rider/endorsement
|
|
Countersigned
by ______________________________
Authorized
Representative
|
|
|
|
|
5.
|
The
Underwriter shall be liable hereunder for the amount by which one loss
exceeds the Single Loss Deductible amount stated above, but not in excess
of the Single Loss Limit of Liability stated
above.
|
6.
|
Coverage
under this rider shall terminate upon termination or cancelation of the
bond to which this rider is attached. Coverage under this rider
may also be terminated or canceled without canceling the bond as an
entirety.
|
|
(a)
|
60
days after receipt by the Insured of written notice from the Underwriter
of its desire to terminate or cancel coverage under this rider;
or
|
|
(b)
|
immediately
upon receipt by the Underwriter of a written request for the Insured to
terminate or cancel Coverage under this
policy.
|
Stop
Payment Legal Liability
This rider/endorsement, which
forms part of and is for attachment to the following described bond/policy
issued by the designated Underwriter/Company takes effect on the effective date
of said bond/policy, unless another effective date is shown below, at the hour
stated in said bond/policy and expires concurrently with said bond/policy.
Must
Be Completed
|
|
Complete
only when this rider/endorsement is not prepared with the
bond/policy
or is not to be effective with the bond/policy
|
Rider/Endorsement
No.
4
|
Policy
No.
425135205
|
|
Issued
to:
|
Effective
date of
this
rider/endorsement
|
|
Countersigned
by ______________________________
Authorized
Representative
|
|
|
|
|
CENTRAL HANDLING OF
SECURITIES
It is
agreed that:
1. Those
premises of Depositories listed in the following Schedule shall be deemed to be
premises of the Insured but only as respects coverage on Certificated
Securities:
|
SCHEDULE
|
|
DEPOSITORY
|
|
LOCATION
COVERED
|
All Depositories of the
Insured
2. Certificated
Securities held by such Depository shall be deemed to be Property as defined in
the attached bond to the extent of the Insured’s interest therein as effected by
the making of appropriate entries on the books and records of such
Depository.
3. The
attached bond does not afford coverage in favor of any Depository listed in the
Schedule above. When the Underwriter indemnifies the Insured for a
loss covered hereunder, the Insured will assign the rights and causes of action
to the extent of the claim payment against the Depository, or any other entity
or person against whom it has a cause of action, to the
Underwriter.
4. If
the rules of the Depository named in the Schedule above provide that the Insured
shall be assessed for a portion of the judgment (or agreed settlement) taken by
the Underwriter based upon the assignment set forth in part 3 above and the
Insured actually pays such assessment, then the Underwriter will reimburse the
Insured for the amount of the assessment but not exceeding the amount of loss
payment by the Underwriter.
This rider/endorsement, which forms part of and is for attachment
to the following described bond/policy issued by the designated
Underwriter/Company takes effect on the effective date of said bond/policy,
unless another effective date is shown below, at the hour stated in said
bond/policy and expires concurrently with said bond/policy.
Must
Be Completed
|
|
Complete
only when this rider/endorsement is not prepared with the
bond/policy
or is not to be effective with the bond/policy
|
Rider/Endorsement
No.
5
|
Policy
No.
425135205
|
|
Issued
to:
|
Effective
date of
this
rider/endorsement
|
|
Countersigned
by ______________________________
Authorized
Representative
|
|
|
|
|
CENTRAL
HANDLING OF SECURITIES
|
|
FOR
USE WITH FINANCIAL INSTITUTION BONDS, STANDARD FORMS NOS. 14, 24 AND 25 TO
SCHEDULE THE PREMISES OF DEPOSITORIES.
REVISED
TO OCTOBER, 1987.
|
|
This rider/endorsement, which
forms part of and is for attachment to the following described bond/policy
issued by the designated Underwriter/Company takes effect on the effective date
of said bond/policy, unless another effective date is shown below, at the hour
stated in said bond/policy and expires concurrently with said bond/policy.
Must
Be Completed
|
|
Complete
only when this rider/endorsement is not prepared with the
bond/policy
or is not to be effective with the bond/policy
|
Rider/Endorsement
No.
5
|
Policy
No.
425135205
|
|
Issued
to:
|
Effective
date of
this
rider/endorsement
|
|
Countersigned
by ______________________________
Authorized
Representative
|
|
|
|
|
UNAUTHORIZED
SIGNATURE RIDER
In
consideration of the premium paid for this Bond, it is agreed as
follows:
1.
|
The
following is added to the
INSURING AGREEMENT
section:
|
UNAUTHORIZED
SIGNATURE
|
1.
|
Loss
resulting by reason of the Insured having accepted, paid or cashed any
check or withdrawal order or draft, made or drawn on a customer’s 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.
|
|
2.
|
It
shall be a condition precedent to the Insured’s right of recovery under
this rider that the Insured shall have on file signatures of all persons
who are authorized signatories on such
account.
|
2.
|
The
following is added to Section 4.
LIMIT OF
LIABILITY:
|
The Limit
of Liability for the coverage provided by this rider shall be $25,000, subject
to a single loss deductible of $5,000, provided however, that such liability
shall be part of and not in addition to the Limit of Liability stated in item 4.
of the Declarations of the attached bond.
All other
terms and conditions of the Policy remain unchanged.
This
endorsement, which forms a part of and is for attachment to the Policy
issued by the designated Insurers, takes effect on the effective date of
said Policy at the hour stated in said Policy and expires concurrently
with said Policy unless another effective date is shown
below.
By
Authorized Representative
________________________________________________________________________
(No
signature is required if issued with the Policy or if it is effective on
the Policy Effective Date)
|
GSL5304XX
(12-04)
|
Policy
No:
|
425135205
|
Page
1
|
Endorsement
No:
|
6
|
Continental
Insurance Company
|
Effective
Date:
|
|
AMEND
NOTICE OF TERMINATION-CANCELLATION ENDORSEMENT
(VARIABLE
NOTICE PROVISION)
In
consideration of the premium paid for this Policy, it is hereby understood and
agreed that
Section 17.
TERMINATION-CANCELLATION
, the reference to “sixty (60) days” is deleted
in its entirety and replaced with the following:
Ninety
(90) days
All other
terms and conditions of the Policy remain unchanged.
This
endorsement, which forms a part of and is for attachment to the Policy
issued by the designated Insurers, takes effect on the effective date of
said Policy at the hour stated in said Policy, unless another effective
date is shown below, and expires concurrently with said
Policy.
|
GSL19320XX
(5-10)
|
Policy
No:
|
425135205
|
Page
|
Endorsement
No:
|
7
|
Continental
Insurance Company
|
Effective
Date:
|
|