form40-1763of3.htm
August
22, 2008
VIA
EDGAR
Securities
and Exchange Commission
100
F Street, N.E.
Washington,
D.C. 20549
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Re:
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Rule
17g-1 Fidelity Bond Filing for
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BlackRock
Kelso Capital Corporation
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Dear
Sir or Madam:
Enclosed for filing, on behalf of
BlackRock Kelso Capital Corporation (the “Company”), pursuant to Rule 17g-1(g)
of the Investment Company Act of 1940, please find the following:
(i)
a copy of the executed Fidelity Bond for the Company; and
(ii) a
Certificate of the Secretary 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.
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Very
truly yours,
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BLACKROCK
KELSO CAPITAL
CORPORATION
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Frank
D. Gordon
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Chief
Financial Officer,
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Treasurer
and Secretary
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Enclosures
Certificate
of the Secretary
The
undersigned, Frank D. Gordon, Chief Financial Officer, Secretary and Treasurer
of BlackRock Kelso Capital Corporation, a Delaware Corporation (the "Company"),
does hereby certify that:
1.
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This
certificate is being delivered to the Securities and Exchange Commission
(the “SEC”) in connection with the filing of the Company’s 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.
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2.
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The
undersigned is the duly elected, qualified and acting Chief Financial
Officer, Secretary and Treasurer of the Company, and has custody of the
corporate records of the Company and is a proper officer to make this
certification.
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3.
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Attached
hereto as Exhibit A is a copy of the resolutions approved by a majority of
the directors who are not "interested persons" of the Company, approving
the amount, type, form and coverage of the
Bond.
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4.
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Premiums
have been paid for the period June 26, 2008 to June 26,
2009.
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IN
WITNESS WHEREOF, the undersigned has caused this certificate to be executed this
22nd day of August, 2008.
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Frank
D. Gordon
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Chief
Financial Officer,
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Treasurer
and Secretary
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EXHIBIT
A
Approval
of Insurance and Fidelity Bond
WHEREAS, it is proposed that
the Company be insured against loss arising from larceny and embezzlement under
an investment company asset protection bond issued by Federal Insurance Company
or Vigilant Insurance Company (the “Bond”) insuring the
Company in the amount of $1,250,000 per occurrence; and further
WHEREAS, the Directors have
considered the adequacy of the Bond with due consideration to (i) the amount and
type of coverage provided by the Bond, (ii) the aggregate value of the assets of
the Company to which any person covered by the Bond may have access, (iii) the
types and terms of the arrangements made by the Company for the custody and
safekeeping of its assets, (iv) the nature of the securities in the Company’s
portfolio, (v) the nature and method of conducting the Company’s operations,
(vi) the accounting procedures and controls of the Company and (vii) such other
matters as the Directors considered relevant; and therefore be it
RESOLVED, that $1,250,000 per
occurrence of fidelity bond coverage is determined to be a reasonable amount of
fidelity bond coverage to be maintained by the Company in accordance with
Section 17(g) of and Rule 17g-1 under the 1940 Act; and further
RESOLVED, that the form of the
Bond submitted to the Directors is approved; and further
RESOLVED, that in accordance
with Rule 17g-1(h) under the 1940 Act, the Secretary and Chief Compliance
Officer of the Company are hereby designated as the officers of the Company who
are authorized and directed to make the filings with the SEC and give the
notices required by Rule 17g-1(g); and further
RESOLVED, that the officers of
the Company be, and they hereby are, authorized and directed at all times to
take all actions necessary to assure compliance with these resolutions and said
Rule 17g-1.
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Chubb
Group of Insurance Companies |
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DECLARATIONS
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FINANCIAL
INSTITUTION INVESTMENT |
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15 Mountain
View Road, Warren, New Jersey 07059 |
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COMPANY ASSET
PROTECTION BOND |
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NAME OF
ASSURED (including its Subsidiaries): |
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Bond Number:
82047423 |
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BLACKROCK
KELSO CAPITAL CORPORATION |
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VIGILANT
INSURANCE COMPANY |
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Incorporated
under the laws of New York |
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40 EAST 52ND
STREET |
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a stock
insurance company herein called the COMPANY |
NEW YORK, NY
10022 |
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55 Water
Street, New York NY 10041-2899 |
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ITEM
1. |
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BOND
PERIOD: |
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from |
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12:01 a.m.
on |
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June 26,
2008 |
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to |
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12:01 a.m.
on |
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June 26,
2009 |
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ITEM
2. |
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LIMITS OF
LIABILITY--DEDUCTIBLE AMOUNTS: |
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If “Not
Covered” is inserted below opposite any specified INSURING CLAUSE, such
INSURING CLAUSE |
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and any other
reference shall be deemed to be deleted. There
shall be no deductible applicable to any |
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loss
under INSURING CLAUSE 1. sustained by any Investment
Company. |
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DEDUCTIBLE |
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INSURING
CLAUSE |
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LIMIT OF
LIABILITY |
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AMOUNT |
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1. |
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Employee |
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$
1,250,000 |
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$
25,000 |
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2. |
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On
Premises |
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$
1,250,000 |
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$
25,000 |
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3. |
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In
Transit |
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$
1,250,000 |
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$
25,000 |
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4. |
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Forgery or
Alteration |
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$
1,250,000 |
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$
25,000 |
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5. |
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Extended
Forgery |
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$
1,250,000 |
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$
25,000 |
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6. |
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Counterfeit
Money |
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$
1,250,000 |
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$
25,000 |
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7. |
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Threats to
Person |
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$ Not
Covered |
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$
N/A |
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8. |
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Computer
System |
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$
1,250,000 |
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$
25,000 |
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9. |
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Voice
Initiated Funds Transfer Instruction |
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$
1,250,000 |
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$
25,000 |
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10. |
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Uncollectible
Items of Deposit |
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$
25,000 |
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$
5,000 |
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11. |
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Audit
Expense |
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$
25,000 |
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$
5,000 |
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ITEM
3. |
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THE LIABILITY
OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
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ENDORSEMENTS
EXECUTED SIMULTANEOUSLY HEREWITH: |
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1 -
5 |
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IN
WITNESS WHEREOF, THE COMPANY has caused
this Bond to be signed by its authorized officers, but it shall
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be valid
unless also signed by an authorized representative of the
Company. |
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ICAP Bond
(5-98) - Vigilant |
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Form
17-02-1422 (Ed. 5-98) |
Page 1 of
1 |
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The COMPANY,
in consideration of payment of the required premium, and in
reliance |
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on the
APPLICATION and all other statements made and information furnished to
the |
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COMPANY by
the ASSURED, and subject to the DECLARATIONS made a part of
this |
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Bond and to
all other terms and conditions of this Bond, agrees to pay the
ASSURED |
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for: |
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Insuring
Clauses |
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Employee |
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1. |
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Loss
resulting directly from Larceny
or Embezzlement committed by
any |
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Employee, alone or in
collusion with others. |
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On
Premises |
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2. |
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Loss of
Property
resulting directly from robbery, burglary, false
pretenses, |
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common law or
statutory larceny, misplacement, mysterious unexplainable
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disappearance, damage, destruction or removal, from the possession,
custody or |
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control of
the ASSURED, while such Property
is lodged or deposited at premises |
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located
anywhere. |
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In
Transit |
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3. |
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Loss of
Property
resulting directly from common law or statutory
larceny, |
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misplacement,
mysterious unexplainable disappearance, damage or
destruction, |
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while the
Property
is in transit anywhere: |
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a. |
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in an armored
motor vehicle, including loading and unloading thereof,
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b. |
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in the
custody of a natural person acting as a messenger of the
ASSURED, |
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or |
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c. |
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in the
custody of a Transportation Company and being
transported in a |
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conveyance
other than an armored motor vehicle provided, however, that
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covered
Property
transported in such manner is limited to the
following: |
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(1) |
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written
records, |
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(2) |
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securities
issued in registered form, which are not endorsed or are
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restrictively
endorsed, or |
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(3) |
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negotiable
instruments not payable to bearer, which are not endorsed
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or are
restrictively endorsed. |
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Coverage
under this INSURING CLAUSE begins immediately on the receipt
of |
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such
Property
by the natural person or Transportation Company and
ends |
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immediately
on delivery to the premises of the addressee or to any
representative |
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of the
addressee located anywhere. |
ICAP Bond
(5-98) |
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Form
17-02-1421 (Ed. 5-98) |
Page 1 of
19 |
Insuring
Clauses |
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(continued) |
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Forgery Or Alteration |
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4. |
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Loss
resulting directly from: |
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a. |
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Forgery
on, or fraudulent material alteration of, any bills of
exchange, |
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checks,
drafts, acceptances, certificates of deposits, promissory notes,
due |
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bills, money
orders, orders upon public treasuries, letters of credit,
other |
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written
promises, orders or directions to pay sums certain in money,
or |
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receipts for
the withdrawal of Property,
or |
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b. |
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transferring,
paying or delivering any funds or other Property, or
establishing |
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any credit or
giving any value in reliance on any written instructions,
advices |
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or
applications directed to the ASSURED authorizing or acknowledging
the |
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transfer,
payment, delivery or receipt of funds or other Property,
which |
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instructions,
advices or applications fraudulently purport to bear the
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handwritten
signature of any customer of the ASSURED, or shareholder or
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subscriber to
shares of an Investment Company, or of any
financial |
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institution
or Employee
but which instructions, advices or applications either
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bear a
Forgery
or have been fraudulently materially altered without
the |
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knowledge and
consent of such customer, shareholder, subscriber, financial
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institution
or Employee; |
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excluding,
however, under this INSURING CLAUSE any loss covered under
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INSURING
CLAUSE 5. of this Bond, whether or not coverage for INSURING
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CLAUSE 5. is
provided for in the DECLARATIONS of this Bond. |
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For the
purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile |
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signature is
treated the same as a handwritten signature. |
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Extended Forgery |
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5. |
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Loss
resulting directly from the ASSURED having, in good faith, and in
the |
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ordinary
course of business, for its own account or the account of others in
any |
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capacity: |
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a. |
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acquired,
accepted or received, accepted or received, sold or delivered,
or |
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given value,
extended credit or assumed liability, in reliance on any
original |
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Securities, documents or other written instruments
which prove to: |
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(1) |
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bear a
Forgery
or a fraudulently material alteration, |
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(2) |
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have been
lost or stolen, or |
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(3) |
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be
Counterfeit,
or |
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b. |
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guaranteed in
writing or witnessed any signatures on any transfer, |
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assignment,
bill of sale, power of attorney, guarantee, endorsement or
other |
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obligation
upon or in connection with any Securities, documents or other |
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written
instruments. |
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Actual
physical possession, and continued actual physical possession if taken
as |
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collateral,
of such Securities, documents or other written instruments
by an |
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Employee, Custodian, or a
Federal or State chartered deposit institution of the |
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ASSURED is a
condition precedent to the ASSURED having relied on such
items. |
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Release or
return of such collateral is an acknowledgment by the ASSURED that
it |
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no longer
relies on such collateral. |
ICAP Bond
(5-98) |
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Form
17-02-1421 (Ed. 5-98) |
Page 2 of
19 |
Insuring
Clauses |
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Extended Forgery |
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For the
purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile |
(continued) |
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signature is
treated the same as a handwritten signature. |
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Counterfeit Money |
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6. |
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Loss
resulting directly from the receipt by the ASSURED in good faith of
any |
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Counterfeit money. |
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Threats To Person |
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7. |
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Loss
resulting directly from surrender of Property
away from an office of the |
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ASSURED as a
result of a threat communicated to the ASSURED to do bodily
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harm to an
Employee
as defined in Section 1.e. (1), (2) and (5), a Relative
or |
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invitee of
such Employee, or a
resident of the household of such Employee,
who |
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is, or
allegedly is, being held captive provided, however, that prior to the
surrender |
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of such
Property: |
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a. |
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the
Employee
who receives the threat has made a reasonable effort
to |
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notify an
officer of the ASSURED who is not involved in such threat,
and |
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b. |
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the ASSURED
has made a reasonable effort to notify the Federal Bureau of
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Investigation
and local law enforcement authorities concerning such threat.
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It is agreed
that for purposes of this INSURING CLAUSE, any Employee
of the |
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ASSURED, as
set forth in the preceding paragraph, shall be deemed to be
an |
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ASSURED
hereunder, but only with respect to the surrender of money,
securities |
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and other
tangible personal property in which such Employee
has a legal or |
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equitable
interest. |
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Computer System |
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8. |
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Loss
resulting directly from fraudulent: |
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a. |
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entries of
data into, or |
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b. |
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changes of
data elements or programs within, |
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a
Computer
System, provided
the fraudulent entry or change causes: |
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(1) |
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funds or
other property to be transferred, paid or delivered, |
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(2) |
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an account of
the ASSURED or of its customer to be added, deleted, |
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debited or
credited, or |
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(3) |
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an
unauthorized account or a fictitious account to be debited or
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credited. |
ICAP Bond
(5-98) |
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Form
17-02-1421 (Ed. 5-98) |
Page 3 of
19 |
Insuring
Clauses |
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(continued) |
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Voice
Initiated Funds |
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9. |
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Loss
resulting directly from Voice
Initiated Funds Transfer Instruction directed |
Transfer Instruction |
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to the
ASSURED authorizing the transfer of dividends or redemption proceeds
of |
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Investment Company shares from a
Customer's account,
provided such Voice |
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Initiated Funds Transfer Instruction was: |
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a. |
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received at
the ASSURED'S offices by those Employees of the
ASSURED |
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specifically
authorized to receive the Voice
Initiated Funds Transfer |
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Instruction, |
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b. |
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made by a
person purporting to be a Customer,
and |
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c. |
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made by said
person for the purpose of causing the ASSURED or Customer |
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to sustain a
loss or making an improper personal financial gain for such
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person or any
other person. |
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In order for
coverage to apply under this INSURING CLAUSE, all Voice
Initiated |
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Funds
Transfer Instructions must be
received and processed in accordance with |
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the
Designated Procedures outlined in the APPLICATION furnished to
the |
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COMPANY. |
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Uncollectible Items of |
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10. |
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Loss
resulting directly from the ASSURED having credited an account of
a |
Deposit |
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customer,
shareholder or subscriber on the faith of any Items of
Deposit which |
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prove to be
uncollectible, provided that the crediting of such account
causes: |
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a. |
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redemptions
or withdrawals to be permitted, |
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b. |
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shares to be
issued, or |
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c. |
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dividends to
be paid, |
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from an
account of an Investment Company. |
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In order for
coverage to apply under this INSURING CLAUSE, the ASSURED
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must hold
Items of
Deposit for the
minimum number of days stated in the |
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APPLICATION
before permitting any redemptions or withdrawals, issuing any
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shares or
paying any dividends with respect to such Items of
Deposit. |
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Items of
Deposit shall not be
deemed uncollectible until the ASSURED'S |
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standard
collection procedures have failed. |
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Audit
Expense |
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11. |
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Expense
incurred by the ASSURED for that part of the cost of audits
or |
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examinations
required by any governmental regulatory authority or
self-regulatory |
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organization
to be conducted by such authority, organization or their appointee
by |
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|
reason of the
discovery of loss sustained by the ASSURED and covered by
this |
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|
Bond. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 4 of
19 |
General
Agreements |
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Additional Companies |
|
A. |
|
If more than
one corporation, or Investment Company, or any
combination of |
Included As Assured |
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|
them is
included as the ASSURED herein: |
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(1) |
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The total
liability of the COMPANY under this Bond for loss or losses
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sustained by
any one or more or all of them shall not exceed the limit for
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which the
COMPANY would be liable under this Bond if all such loss were
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sustained by
any one of them. |
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(2) |
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Only the
first named ASSURED shall be deemed to be the sole agent of
the |
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others for
all purposes under this Bond, including but not limited to the
giving |
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|
or receiving
of any notice or proof required to be given and for the purpose
of |
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effecting or
accepting any amendments to or termination of this Bond. The
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COMPANY shall
furnish each Investment Company with a copy
of the |
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Bond and with
any amendment thereto, together with a copy of each formal
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filing of
claim by any other named ASSURED and notification of the terms
of |
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the
settlement of each such claim prior to the execution of such
settlement. |
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(3) |
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The COMPANY
shall not be responsible for the proper application of any
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payment made
hereunder to the first named ASSURED. |
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(4) |
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Knowledge
possessed or discovery made by any partner, director,
trustee, |
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officer or
supervisory employee of any ASSURED shall constitute
knowledge |
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or discovery
by all the ASSUREDS for the purposes of this Bond. |
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(5) |
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If the first
named ASSURED ceases for any reason to be covered under this
|
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Bond, then
the ASSURED next named on the APPLICATION shall thereafter
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be considered
as the first named ASSURED for the purposes of this Bond.
|
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Representation Made By |
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B. |
|
The ASSURED
represents that all information it has furnished in the
|
Assured |
|
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|
APPLICATION
for this Bond or otherwise is complete, true and correct.
Such |
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APPLICATION
and other information constitute part of this Bond. |
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|
The ASSURED
must promptly notify the COMPANY of any change in any fact or
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circumstance
which materially affects the risk assumed by the COMPANY
under |
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this
Bond. |
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Any
intentional misrepresentation, omission, concealment or incorrect
statement of |
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|
a material
fact, in the APPLICATION or otherwise, shall be grounds for recision
of |
|
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|
this
Bond. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 5 of
19 |
General
Agreements |
|
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|
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|
(continued) |
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Additional Offices Or |
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C. |
|
If the
ASSURED, other than an Investment Company, while this
Bond is in force, |
Employees - Consolidation, |
|
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|
merges or
consolidates with, or purchases or acquires assets or liabilities
of |
Merger
Or Purchase Or |
|
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|
another
institution, the ASSURED shall not have the coverage afforded under
this |
Acquisition Of Assets Or |
|
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|
Bond for loss
which has: |
Liabilities - Notice To |
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(1) |
|
occurred or
will occur on premises, or |
Company |
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(2) |
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been caused
or will be caused by an employee, or |
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(3) |
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arisen or
will arise out of the assets or liabilities, |
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of such
institution, unless the ASSURED: |
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a. |
|
gives the
COMPANY written notice of the proposed consolidation, merger
or |
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purchase or
acquisition of assets or liabilities prior to the proposed
effective |
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date of such
action, and |
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b. |
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obtains the
written consent of the COMPANY to extend some or all of the
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coverage
provided by this Bond to such additional exposure, and |
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c. |
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on obtaining
such consent, pays to the COMPANY an additional premium.
|
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Change
Of Control - |
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D. |
|
When the
ASSURED learns of a change in control (other than in an Investment |
Notice
To Company |
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Company), as set
forth in Section 2(a) (9) of the Investment Company Act of
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1940, |
|
the ASSURED
shall within sixty (60) days give written notice to the
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COMPANY
setting forth: |
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(1) |
|
the names of
the transferors and transferees (or the names of the
beneficial |
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owners if the
voting securities are registered in another name), |
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(2) |
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the total
number of voting securities owned by the transferors and the
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transferees
(or the beneficial owners), both immediately before and after
the |
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transfer,
and |
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(3) |
|
the total
number of outstanding voting securities. |
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Failure to
give the required notice shall result in termination of coverage for
any |
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loss
involving a transferee, to be effective on the date of such change in
control. |
|
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Court
Costs And |
|
E. |
|
The COMPANY
will indemnify the ASSURED for court costs and reasonable
|
Attorneys’ Fees |
|
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|
attorneys'
fees incurred and paid by the ASSURED in defense, whether or
not |
|
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|
successful,
whether or not fully litigated on the merits and whether or not
settled, |
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of any claim,
suit or legal proceeding with respect to which the ASSURED
would |
|
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|
be entitled
to recovery under this Bond. However, with respect to
INSURING |
|
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|
|
CLAUSE 1.,
this Section shall only apply in the event that: |
|
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|
(1) |
|
an
Employee
admits to being guilty of Larceny
or Embezzlement, |
|
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|
(2) |
|
an
Employee
is adjudicated to be guilty of Larceny
or Embezzlement,
or |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 6 of
19 |
General
Agreements |
|
|
|
|
|
|
Court
Costs And |
|
(3) |
|
in the
absence of 1 or 2 above, an arbitration panel agrees, after a review
of |
Attorneys’ Fees |
|
|
|
an agreed
statement of facts between the COMPANY and the ASSURED,
|
(continued) |
|
|
|
that an
Employee
would be found guilty of Larceny
or Embezzlement if |
|
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|
|
such
Employee
were prosecuted. |
|
|
|
The ASSURED
shall promptly give notice to the COMPANY of any such suit or
|
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|
legal
proceeding and at the request of the COMPANY shall furnish copies of
all |
|
|
pleadings and
pertinent papers to the COMPANY. The COMPANY may, at its
|
|
|
sole option,
elect to conduct the defense of all or part of such legal
proceeding. |
|
|
The defense
by the COMPANY shall be in the name of the ASSURED through
|
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|
attorneys
selected by the COMPANY. The ASSURED shall provide all
reasonable |
|
|
information
and assistance as required by the COMPANY for such defense.
|
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|
If the
COMPANY declines to defend the ASSURED, no settlement without
the |
|
|
prior written
consent of the COMPANY nor judgment against the ASSURED shall
|
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|
determine the
existence, extent or amount of coverage under this Bond.
|
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|
If the amount
demanded in any such suit or legal proceeding is within the
|
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|
DEDUCTIBLE
AMOUNT, if any, the COMPANY shall have no liability for court
|
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|
costs and
attorney's fees incurred in defending all or part of such suit or
legal |
|
|
proceeding. |
|
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|
If the amount
demanded in any such suit or legal proceeding is in excess of
the |
|
|
LIMIT OF
LIABILITY stated in ITEM 2. of the DECLARATIONS for the
applicable |
|
|
INSURING
CLAUSE, the COMPANY'S liability for court costs and attorney's
fees |
|
|
incurred in
defending all or part of such suit or legal proceedings is limited to
the |
|
|
proportion of
such court costs and attorney's fees incurred that the LIMIT
OF |
|
|
LIABILITY
stated in ITEM 2. of the DECLARATIONS for the applicable
INSURING |
|
|
CLAUSE bears
to the total of the amount demanded in such suit or legal
|
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|
proceeding. |
|
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|
If the amount
demanded is any such suit or legal proceeding is in excess of
the |
|
|
DEDUCTIBLE
AMOUNT, if any, but within the LIMIT OF LIABILITY stated in
ITEM |
|
|
2. |
|
of the
DECLARATIONS for the applicable INSURING CLAUSE, the |
|
|
COMPANY'S
liability for court costs and attorney's fees incurred in defending all
or |
|
|
part of such
suit or legal proceedings shall be limited to the proportion of
such |
|
|
court costs
or attorney's fees that the amount demanded that would be
payable |
|
|
under this
Bond after application of the DEDUCTIBLE AMOUNT, bears to the
total |
|
|
amount
demanded. |
|
|
|
Amounts paid
by the COMPANY for court costs and attorneys' fees shall be
in |
|
|
addition to
the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
|
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 7 of
19 |
Conditions
And |
|
|
|
|
|
|
|
|
Limitations
|
|
|
|
|
|
|
|
|
|
|
Definitions |
|
1. |
|
As used in
this Bond: |
|
|
|
|
a. |
|
Computer
System means a
computer and all input, output, processing, |
|
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|
|
storage,
off-line media libraries, and communication facilities which
are |
|
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|
connected to
the computer and which are under the control and supervision
|
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|
|
of the
operating system(s) or application(s) software used by the
ASSURED. |
|
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|
|
|
b. |
|
Counterfeit means an
imitation of an actual valid original which is intended
|
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|
|
to deceive
and be taken as the original. |
|
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|
c. |
|
Custodian means the
institution designated by an Investment Company to |
|
|
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|
|
|
maintain
possession and control of its assets. |
|
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|
|
d. |
|
Customer
means an individual, corporate, partnership, trust
customer, |
|
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|
|
|
shareholder
or subscriber of an Investment Company which has a
written |
|
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|
|
|
agreement
with the ASSURED for Voice
Initiated Funds Transfer |
|
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|
|
Instruction. |
|
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|
e. |
|
Employee
means: |
|
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|
|
|
(1) |
|
an officer of
the ASSURED, |
|
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|
(2) |
|
a natural
person while in the regular service of the ASSURED at any of
|
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|
the ASSURED'S
premises and compensated directly by the ASSURED |
|
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|
through its
payroll system and subject to the United States Internal
|
|
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|
|
Revenue
Service Form W-2 or equivalent income reporting plans of
|
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|
other
countries, and whom the ASSURED has the right to control and
|
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|
direct both
as to the result to be accomplished and details and means
|
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|
by which such
result is accomplished in the performance of such |
|
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|
service, |
|
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(3) |
|
a guest
student pursuing studies or performing duties in any of the
|
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|
|
ASSURED'S
premises, |
|
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|
(4) |
|
an attorney
retained by the ASSURED and an employee of such |
|
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|
|
attorney
while either is performing legal services for the ASSURED,
|
|
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|
|
(5) |
|
a natural
person provided by an employment contractor to perform |
|
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|
|
employee
duties for the ASSURED under the ASSURED'S supervision |
|
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|
at any of the
ASSURED'S premises, |
|
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|
|
|
(6) |
|
an employee
of an institution merged or consolidated with the |
|
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|
|
|
ASSURED prior
to the effective date of this Bond, |
|
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|
|
|
(7) |
|
a director or
trustee of the ASSURED, but only while performing acts |
|
|
|
|
|
|
|
|
within the
scope of the customary and usual duties of any officer or
|
|
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|
|
|
|
|
|
other
employee of the ASSURED 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 ASSURED, or |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 8 of
19 |
Conditions
And |
|
|
|
|
|
|
Limitations
|
|
|
|
|
|
|
|
|
Definitions |
|
(8) |
|
each natural
person, partnership or corporation authorized by written
|
(continued) |
|
|
|
agreement
with the ASSURED 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 ASSURED'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 ASSURED, |
|
|
|
(9) |
|
any partner,
officer or employee of an investment advisor, 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. |
|
|
|
|
|
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 advisor 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 e. (4), (5) and (8) above, and upon payment to
|
|
|
|
|
|
|
the ASSURED
by the COMPANY 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 ASSURED'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 |
|
|
|
|
|
|
ASSURED to
the COMPANY, and the ASSURED shall execute all |
|
|
|
|
|
|
papers
necessary to secure to the COMPANY the rights provided for
|
|
|
|
|
|
|
herein. |
|
|
|
|
|
Each employer
of persons as set forth in e.(4), (5) and (8) 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
fifth paragraph of Section 13. |
|
|
|
|
|
Independent
contractors not specified in e.(4), (5) or (8) above, |
|
|
|
|
intermediaries, agents, brokers or other representatives of the
same general |
|
|
|
|
character
shall not be considered Employees. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 9 of
19 |
Conditions
And |
|
|
|
|
Limitations
|
|
|
|
|
|
|
Definitions |
|
f. |
|
Forgery
means the signing of the name of another natural person with
the |
(continued) |
|
|
|
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. |
|
|
g. |
|
Investment Company means any
investment company registered under the |
|
|
|
|
Investment
Company Act of 1940 and listed under the NAME OF ASSURED
|
|
|
|
|
on the
DECLARATIONS. |
|
|
|
h. |
|
Items of
Deposit means one or
more checks or drafts drawn upon a |
|
|
|
|
financial
institution in the United States of America. |
|
|
i. |
|
Larceny
or Embezzlement means larceny
or embezzlement as defined in |
|
|
|
|
Section 37 of
the Investment Company Act of 1940. |
|
|
|
j. |
|
Property
means money, revenue and other 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 a
|
|
|
|
|
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, deeds or mortgages; other
valuable |
|
|
|
|
papers,
including books of accounts and other records used by the
|
|
|
|
|
ASSURED 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 ASSURED acquired an interest at the time of the
|
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|
|
ASSURED'S
consolidation or merger with, or purchase of the principal
|
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|
|
assets of, a
predecessor or which are held by the ASSURED for any |
|
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|
purpose or in
any capacity and whether so held gratuitously or not and
|
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|
|
whether or
not the ASSURED is liable therefor. |
|
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k. |
|
Relative
means the spouse of an Employee
or partner of the ASSURED |
|
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|
|
and any
unmarried child supported wholly by, or living in the home of,
such |
|
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|
|
Employee
or partner and being related to them by blood, marriage or
legal |
|
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|
|
guardianship. |
|
|
l. |
|
Securities, documents or other written instruments
means original |
|
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|
(including
original counterparts) negotiable or non-negotiable instruments,
or |
|
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|
assignments
thereof, which in and of themselves represent an equitable
|
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|
interest,
ownership, or debt and which are in the ordinary course of
business |
|
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|
transferable
by delivery of such instruments with any necessary |
|
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|
endorsements
or assignments. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 10 of
19 |
Conditions
And |
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|
Limitations
|
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|
Definitions |
|
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|
m. |
|
Subsidiary means any
organization that, at the inception date of this Bond, |
(continued) |
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|
|
is named in
the APPLICATION or is created during the BOND PERIOD and
|
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|
of which more
than fifty percent (50%) of the outstanding securities or
voting |
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rights
representing the present right to vote for election of directors is
owned |
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|
or controlled
by the ASSURED either directly or through one or more of its
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subsidiaries. |
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n. |
|
Transportation Company means any
organization which provides its own |
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|
or its leased
vehicles for transportation or which provides freight
forwarding |
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or air
express services. |
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o. |
|
Voice
Initiated Election means any
election concerning dividend options |
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|
available to
Investment Company shareholders
or subscribers which is |
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|
requested by
voice over the telephone. |
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p. |
|
Voice
Initiated Redemption means any
redemption of shares issued by an |
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|
Investment Company which is
requested by voice over the telephone. |
|
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q. |
|
Voice
Initiated Funds Transfer Instruction means any
Voice
Initiated |
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|
Redemption or
Voice
Initiated Election. |
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|
For the
purposes of these definitions, the singular includes the plural and
the |
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|
plural
includes the singular, unless otherwise indicated. |
|
|
General Exclusions - |
|
2. |
|
This
bond does not directly or indirectly cover: |
Applicable to All Insuring |
|
|
|
a. |
|
loss not
reported to the COMPANY in writing within sixty (60) days
after |
Clauses |
|
|
|
|
|
termination
of this Bond as an entirety; |
|
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|
|
|
b. |
|
loss due to
riot or civil commotion outside the United States of America
and |
|
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|
Canada, or
any loss due to military, naval or usurped power, war or
|
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|
|
|
insurrection.
This Section 2.b., however, shall not apply to loss which
occurs |
|
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|
in transit in
the circumstances recited in INSURING CLAUSE 3., provided
|
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|
that when
such transit was initiated there was no knowledge on the part
of |
|
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|
any person
acting for the ASSURED of such riot, civil commotion,
military, |
|
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|
naval or
usurped power, war or insurrection; |
|
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|
c. |
|
loss
resulting from the effects of nuclear fission or fusion or
radioactivity; |
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|
d. |
|
loss of
potential income including, but not limited to, interest and
dividends |
|
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|
not realized
by the ASSURED or by any customer of the ASSURED; |
|
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|
e. |
|
damages of
any type for which the ASSURED is legally liable, except
|
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|
|
compensatory
damages, but not multiples thereof, arising from a loss
|
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|
covered under
this Bond; |
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|
f. |
|
costs, fees
and expenses incurred by the ASSURED in establishing the
|
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|
existence of
or amount of loss under this Bond, except to the extent
covered |
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|
under
INSURING CLAUSE 11.; |
|
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|
g. |
|
loss
resulting from indirect or consequential loss of any nature;
|
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 11 of
19 |
Conditions
And |
|
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|
|
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|
|
|
Limitations
|
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|
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|
General Exclusions - |
|
|
|
h. |
|
loss
resulting from dishonest acts by any member of the Board of
Directors |
Applicable to All Insuring |
|
|
|
|
|
or Board of
Trustees of the ASSURED who is not an Employee,
acting |
Clauses |
|
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|
alone or in
collusion with others; |
(continued) |
|
|
|
i. |
|
loss, or that
part of any loss, resulting solely from any violation by the
|
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|
|
|
|
ASSURED or by
any Employee: |
|
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|
(1) |
|
of any law
regulating: |
|
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|
|
|
a. |
|
the issuance,
purchase or sale of securities, |
|
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|
b. |
|
securities
transactions on security or commodity exchanges or |
|
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|
the over the
counter market, |
|
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|
c. |
|
investment
companies, |
|
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|
d. |
|
investment
advisors, or |
|
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|
(2) |
|
of any rule
or regulation made pursuant to any such law; or |
|
|
|
|
j. |
|
loss of
confidential information, material or data; |
|
|
|
|
k. |
|
loss
resulting from voice requests or instructions received over
the |
|
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|
|
|
|
telephone,
provided however, this Section 2.k. shall not apply to
INSURING |
|
|
|
|
|
|
CLAUSE 7. or
9. |
|
|
Specific Exclusions - |
|
3. |
|
This
Bond does not directly or indirectly cover: |
Applicable To All Insuring |
|
|
|
a. |
|
loss caused
by an Employee, provided,
however, this Section 3.a. shall not |
Clauses Except Insuring |
|
|
|
|
|
apply to loss
covered under INSURING CLAUSE 2. or 3. which results |
Clause
1. |
|
|
|
|
|
directly from
misplacement, mysterious unexplainable disappearance, or
|
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|
|
|
|
damage or
destruction of Property; |
|
|
|
|
b. |
|
loss through
the surrender of property away from premises of the ASSURED
|
|
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|
|
|
|
as a result
of a threat: |
|
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|
|
(1) |
|
to do bodily
harm to any natural person, except loss of Property
in |
|
|
|
|
|
|
|
|
transit in
the custody of any person acting as messenger of the |
|
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|
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|
|
ASSURED,
provided that when such transit was initiated there was no
|
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|
|
|
knowledge by
the ASSURED of any such threat, and provided further |
|
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|
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|
|
|
that this
Section 3.b. shall not apply to INSURING CLAUSE 7., or |
|
|
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|
|
|
(2) |
|
to do damage
to the premises or Property
of the ASSURED; |
|
|
|
|
c. |
|
loss
resulting from payments made or withdrawals from any account
|
|
|
|
|
|
|
involving
erroneous credits to such account; |
|
|
|
|
d. |
|
loss
involving Items of
Deposit which are not
finally paid for any reason |
|
|
|
|
|
|
provided
however, that this Section 3.d. shall not apply to INSURING
|
|
|
|
|
|
|
CLAUSE
10.; |
|
|
|
|
e. |
|
loss of
property while in the mail; |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 12 of
19 |
Conditions
And |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limitations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specific Exclusions - |
|
|
|
f. |
|
loss
resulting from the failure for any reason of a financial or
depository |
Applicable To All Insuring |
|
|
|
|
|
institution,
its receiver or other liquidator to pay or deliver funds or
other |
Clauses Except Insuring |
|
|
|
|
|
Property
to the ASSURED provided further that this Section 3.f. shall
not |
Clause
1. |
|
|
|
|
|
apply to loss
of Property
resulting directly from robbery, burglary, |
(continued) |
|
|
|
|
|
misplacement, |
|
mysterious |
|
unexplainable |
|
disappearance, |
|
damage, |
|
|
|
|
|
|
destruction
or removal from the possession, custody or control of the
|
|
|
|
|
|
|
ASSURED. |
|
|
|
|
|
|
|
|
|
|
|
|
g. |
|
loss of
Property
while in the custody of a Transportation Company, |
|
|
|
|
|
|
provided
however, that this Section 3.g. shall not apply to INSURING
|
|
|
|
|
|
|
CLAUSE
3.; |
|
|
|
|
|
|
|
|
|
|
|
|
h. |
|
loss
resulting from entries or changes made by a natural person
with |
|
|
|
|
|
|
authorized
access to a Computer
System who acts in
good faith on |
|
|
|
|
|
|
instructions,
unless such instructions are given to that person by a
software |
|
|
|
|
|
|
contractor or
its partner, officer, or employee authorized by the ASSURED
to |
|
|
|
|
|
|
design,
develop, prepare, supply, service, write or implement programs
for |
|
|
|
|
|
|
the ASSURED's
Computer
System;
or |
|
|
|
|
|
|
|
|
i. |
|
loss
resulting directly or indirectly from the input of data into a
Computer |
|
|
|
|
|
|
System
terminal, either on the premises of the customer of the
ASSURED |
|
|
|
|
|
|
or under the
control of such a customer, by a customer or other person who
|
|
|
|
|
|
|
had
authorized access to the customer's authentication mechanism.
|
|
|
Specific Exclusions - |
|
4. |
|
This
bond does not directly or indirectly cover: |
|
|
|
|
Applicable To All Insuring |
|
|
|
a. |
|
loss
resulting from the complete or partial non-payment of or default on
any |
Clauses Except Insuring |
|
|
|
|
|
loan whether
such loan was procured in good faith or through trick,
artifice, |
Clauses 1., 4., And 5. |
|
|
|
|
|
fraud or
false pretenses; provided, however, this Section 4.a. shall not
apply |
|
|
|
|
|
|
to INSURING
CLAUSE 8.; |
|
|
|
|
|
|
|
|
|
|
b. |
|
loss
resulting from forgery or any alteration; |
|
|
|
|
|
|
|
|
c. |
|
loss
involving a counterfeit provided, however, this Section 4.c. shall
not |
|
|
|
|
|
|
apply to
INSURING CLAUSE 5. or 6. |
|
|
|
|
|
|
Limit
Of Liability/Non- |
|
5. |
|
At all times
prior to termination of this Bond, this Bond shall continue in force
for |
Reduction And Non- |
|
|
|
the limit
stated in the applicable sections of ITEM 2. of the
DECLARATIONS, |
Accumulation Of Liability |
|
|
|
notwithstanding any previous loss for which the COMPANY may have
paid or be |
|
|
|
|
liable to pay
under this Bond provided, however, that the liability of the
COMPANY |
|
|
|
|
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
|
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 13 of
19 |
Conditions
And |
|
|
|
|
|
|
Limitations
|
|
|
|
|
|
|
|
|
Limit
Of Liability/Non- |
|
|
|
d. |
|
any one
casualty or event other than those specified in a., b., or c.
above, |
Reduction And Non- |
|
|
|
shall be
deemed to be one loss and shall be limited to the applicable LIMIT
OF |
Accumulation Of Liability |
|
|
|
LIABILITY
stated in ITEM 2. of the DECLARATIONS of this Bond irrespective
of |
(continued) |
|
|
|
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. |
|
|
Discovery |
|
6. |
|
This Bond
applies only to loss first discovered by an officer of the
ASSURED |
|
|
|
|
during the
BOND PERIOD. Discovery occurs at the earlier of an officer of
the |
|
|
|
|
ASSURED 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 ASSURED 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.
|
|
|
Notice
To Company - |
|
7. |
|
a. |
|
The ASSURED
shall give the COMPANY notice thereof at the earliest |
Proof
- Legal Proceedings |
|
|
|
|
|
practicable
moment, not to exceed sixty (60) days after discovery of loss,
in |
Against Company |
|
|
|
|
|
an amount
that is in excess of 50% of the applicable DEDUCTIBLE |
|
|
|
|
|
|
AMOUNT, as
stated in ITEM 2. of the DECLARATIONS. |
|
|
|
|
|
b. |
|
The ASSURED
shall furnish to the COMPANY proof of loss, duly sworn to,
|
|
|
|
|
|
|
with full
particulars within six (6) months after such discovery.
|
|
|
|
|
|
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
COMPANY 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 ASSURED. No claim,
suit, |
|
|
|
|
|
|
action or
legal proceedings shall be brought under this Bond by anyone
|
|
|
|
|
|
|
other than
the ASSURED. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 14 of
19 |
Conditions
And |
|
|
|
|
|
|
Limitations
|
|
|
|
|
|
|
|
|
Notice
To Company - |
|
|
|
f. |
|
Proof of loss
involving Voice
Initiated Funds Transfer Instruction shall |
Proof
- Legal Proceedings |
|
|
|
|
|
include
electronic recordings of such instructions. |
Against Company |
|
|
|
|
|
|
(continued) |
|
|
|
|
|
|
|
|
Deductible Amount |
|
8. |
|
The COMPANY
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 ASSURED,
other |
|
|
|
|
than from any
Bond or policy of insurance issued by an insurance company
and |
|
|
|
|
covering such
loss, or by the COMPANY on account thereof prior to payment
by |
|
|
|
|
the COMPANY
of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in
|
|
|
|
|
ITEM 3. of
the DECLARATIONS, and then for such excess only, but in no
event |
|
|
|
|
for more than
the applicable LIMITS OF LIABILITY stated in ITEM 2. of the
|
|
|
|
|
DECLARATIONS. |
|
|
|
|
|
There shall
be no deductible applicable to any loss under INSURING CLAUSE
1. |
|
|
|
|
sustained by
any Investment Company. |
|
|
Valuation |
|
9. |
|
BOOKS OF
ACCOUNT OR OTHER RECORDS |
|
|
|
|
The value of
any loss of Property
consisting of books of account or other records |
|
|
|
|
used by the
ASSURED in the conduct of its business shall be the amount paid
by |
|
|
|
|
the ASSURED
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
|
|
|
|
|
ASSURED for
the actual transcription or copying of data to reproduce such
books |
|
|
|
|
of account or
other records. |
|
|
|
|
|
The value of
any loss of Property
other than books of account or other records |
|
|
|
|
used by the
ASSURED 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 ASSURED with the consent of the |
|
|
|
|
COMPANY and
prior to the settlement of any claim for such Property
shall be the |
|
|
|
|
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 |
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|
such
privileges immediately preceding their expiration if said loss is not
discovered |
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|
until after
their expiration. If no market price is quoted for such Property
or for |
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|
such
privileges, the value shall be fixed by agreement between the
parties. |
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|
OTHER
PROPERTY |
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|
The value of
any loss of Property, other than
as stated above, shall be the actual |
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|
cash value or
the cost of repairing or replacing such Property
with Property
of |
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|
like quality
and value, whichever is less. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 15 of
19 |
Conditions
And |
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Limitations
|
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|
(continued) |
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Securities Settlement |
|
10. |
|
In the event
of a loss of securities covered under this Bond, the COMPANY
may, |
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|
at its sole
discretion, purchase replacement securities, tender the value of
the |
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|
securities in
money, or issue its indemnity to effect replacement
securities. |
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|
The indemnity
required from the ASSURED under the terms of this Section
|
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|
against all
loss, cost or expense arising from the replacement of securities by
the |
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COMPANY'S
indemnity shall be: |
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a. |
|
for
securities having a value less than or equal to the
applicable |
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DEDUCTIBLE
AMOUNT - one hundred (100%) percent; |
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b. |
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for
securities having a value in excess of the DEDUCTIBLE AMOUNT
but |
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within the
applicable LIMIT OF LIABILITY - the percentage that the
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DEDUCTIBLE
AMOUNT bears to the value of the securities; |
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c. |
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for
securities having a value greater than the applicable LIMIT OF
LIABILITY |
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- the
percentage that the DEDUCTIBLE AMOUNT and portion in excess
of |
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the
applicable LIMIT OF LIABILITY bears to the value of the
securities. |
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The value
referred to in Section 10.a., b., and c. is the value in accordance
with |
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Section 9,
VALUATION, regardless of the value of such securities at the time
the |
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loss under
the COMPANY'S indemnity is sustained. |
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|
The COMPANY
is not required to issue its indemnity for any portion of a loss
of |
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|
|
securities
which is not covered by this Bond; however, the COMPANY may do
so |
|
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|
as a courtesy
to the ASSURED and at its sole discretion. |
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|
The ASSURED
shall pay the proportion of the Company's premium charge for
the |
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|
Company's
indemnity as set forth in Section 10.a., b., and c. No portion of
the |
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LIMIT OF
LIABILITY shall be used as payment of premium for any
indemnity |
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|
purchased by
the ASSURED to obtain replacement securities. |
|
|
Subrogation - Assignment - 11. |
|
In the event
of a payment under this Bond, the COMPANY shall be subrogated
to |
Recovery |
|
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|
all of the
ASSURED'S rights of recovery against any person or entity to the
extent |
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|
|
of such
payment. On request, the ASSURED shall deliver to the COMPANY
an |
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|
assignment of
the ASSURED'S rights, title and interest and causes of action
|
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against any
person or entity to the extent of such payment. |
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Recoveries,
whether effected by the COMPANY or by the ASSURED, shall be
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applied net
of the expense of such recovery in the following order:
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a. |
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first, to the
satisfaction of the ASSURED'S loss which would otherwise have
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been paid but
for the fact that it is in excess of the applicable LIMIT OF
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LIABILITY, |
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b. |
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second, to
the COMPANY in satisfaction of amounts paid in settlement of
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the ASSURED'S
claim, |
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c. |
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third, to the
ASSURED in satisfaction of the applicable DEDUCTIBLE |
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AMOUNT,
and |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 16 of
19 |
Conditions
And |
|
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|
|
|
|
Limitations
|
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|
Subrogation - Assignment - |
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d. |
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fourth, to
the ASSURED in satisfaction of any loss suffered by the
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Recovery |
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ASSURED which
was not covered under this Bond. |
(continued) |
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Recovery from
reinsurance or indemnity of the COMPANY shall not be deemed a
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recovery
under this section. |
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Cooperation Of Assured |
|
12. |
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At the
COMPANY'S request and at reasonable times and places designated
by |
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|
the COMPANY,
the ASSURED shall: |
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a. |
|
submit to
examination by the COMPANY and subscribe to the same under
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|
oath, |
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b. |
|
produce for
the COMPANY'S examination all pertinent records, and |
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|
c. |
|
cooperate
with the COMPANY in all matters pertaining to the loss.
|
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|
The ASSURED
shall execute all papers and render assistance to secure to
the |
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|
COMPANY the
rights and causes of action provided for under this Bond. The
|
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|
ASSURED shall
do nothing after loss to prejudice such rights or causes of
action. |
|
|
Termination |
|
13. |
|
If the Bond
is for a sole ASSURED, it shall not be terminated unless written
notice |
|
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|
shall have
been given by the acting party to the affected party and to
the |
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|
Securities
and Exchange Commission, Washington, D.C., not less than sixty
(60) |
|
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|
|
days prior to
the effective date of such termination. |
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|
If the Bond
is for a joint ASSURED, it shall not be terminated unless written
notice |
|
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|
shall have
been given by the acting party to the affected party, and by
the |
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|
|
COMPANY to
all ASSURED Investment Companies and to the
Securities and |
|
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|
|
Exchange
Commission, Washington, D.C., not less than sixty (60) days prior
to |
|
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|
|
the effective
date of such termination. |
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|
This Bond
will terminate as to any one ASSURED, other than an Investment |
|
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|
Company: |
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|
a. |
|
immediately
on the taking over of such ASSURED by a receiver or other
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|
liquidator or
by State or Federal officials, or |
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b. |
|
immediately
on the filing of a petition under any State or Federal
statute |
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|
relative to
bankruptcy or reorganization of the ASSURED, or assignment
for |
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|
|
the benefit
of creditors of the ASSURED, or |
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c. |
|
immediately
upon such ASSURED ceasing to exist, whether through merger
|
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|
|
into another
entity, disposition of all of its assets or otherwise. |
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|
The COMPANY
shall refund the unearned premium computed at short rates in
|
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|
|
accordance
with the standard short rate cancellation tables if terminated by
the |
|
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|
|
ASSURED or
pro rata if terminated for any other reason.
|
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 17 of
19 |
Conditions
And |
|
|
|
|
|
|
Limitations
|
|
|
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|
|
|
Termination |
|
|
|
If any
partner, director, trustee, or officer or supervisory employee of
an |
(continued) |
|
|
|
ASSURED not
acting in collusion with an Employee
learns of any dishonest act |
|
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|
|
committed by
such Employee
at any time, whether in the employment of the |
|
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|
|
ASSURED or
otherwise, whether or not such act is of the type covered under
this |
|
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|
Bond, and
whether against the ASSURED or any other person or entity,
the |
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|
ASSURED: |
|
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|
|
a. |
|
shall
immediately remove such Employee
from a position that would enable |
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|
|
such
Employee
to cause the ASSURED to suffer a loss covered by this
|
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|
Bond;
and |
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|
b. |
|
within
forty-eight (48) hours of learning that an Employee
has committed |
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|
|
|
any dishonest
act, shall notify the COMPANY, of such action and provide
full |
|
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|
|
particulars
of such dishonest act. |
|
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|
|
The COMPANY
may terminate coverage as respects any Employee
sixty (60) |
|
|
|
|
days after
written notice is received by each ASSURED Investment Company |
|
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|
|
and the
Securities and Exchange Commission, Washington, D.C. of its desire
to |
|
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|
|
terminate
this Bond as to such Employee. |
|
|
Other
Insurance |
|
14. |
|
Coverage
under this Bond shall apply only as excess over any valid and
collectible |
|
|
|
|
insurance,
indemnity or suretyship obtained by or on behalf of: |
|
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|
|
a. |
|
the
ASSURED, |
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|
|
b. |
|
a
Transportation Company,
or |
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|
c. |
|
another
entity on whose premises the loss occurred or which employed
the |
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|
|
person
causing the loss or engaged the messenger conveying the Property |
|
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|
|
involved. |
|
|
Conformity |
|
15. |
|
If any
limitation within this Bond is prohibited by any law controlling this
Bond's |
|
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|
|
construction,
such limitation shall be deemed to be amended so as to equal
the |
|
|
|
|
minimum
period of limitation provided by such law. |
|
|
Change
or Modification |
|
16. |
|
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 |
|
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|
|
representative of the COMPANY. |
|
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|
|
If this Bond
is for a sole ASSURED, no change or modification which would
|
|
|
|
|
adversely
affect the rights of the ASSURED 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.
|
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 18 of
19 |
Conditions
And |
|
|
Limitations
|
|
|
|
|
Change
or Modification |
|
If this Bond
is for a joint ASSURED, no charge or modification which would
|
(continued) |
|
adversely
affect the rights of the ASSURED 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
|
|
|
COMPANY. |
ICAP Bond
(5-98) |
|
Form
17-02-1421 (Ed. 5-98) |
Page 19 of
19 |
|
|
|
|
ENDORSEMENT/RIDER |
Effective
date of |
|
|
|
|
this
endorsement/rider: June 26, 2008 |
|
VIGILANT
INSURANCE COMPANY |
|
|
Endorsement/Rider No. |
|
1 |
|
|
To be
attached to and |
|
|
|
|
form a part
of Bond No. |
|
82047423 |
Issued to:
BLACKROCK KELSO CAPITAL CORPORATION |
|
|
|
|
AMEND INVESTMENT COMPANY ENDORSEMENT |
In
consideration of the premium charged, it is agreed that Section 1,
Definition g., Investment Company,
is |
deleted in
its entirety and replaced with the following: |
|
|
Investment Company means (1) any
investment company registered under the Investment Company Act
of |
1940 or (2)
any business development company that has filed a Form N-54A (or successor
form) with the |
Securities
and Exchange Commission electing to be subject to the provisions of the
Investment Company |
Act of 1940
applicable to business development companies, and listed under the NAME OF
ASSURED on |
the
DECLARATIONS. |
|
|
|
|
|
|
The title and
any headings in this endorsement/rider are solely for convenience and form
no part of the terms |
and
conditions of coverage. |
|
|
|
|
|
All other
terms, conditions and limitations of this Bond shall remain
unchanged. |
Effective
date of |
|
|
|
|
this
endorsement: June 26, 2008 |
|
VIGILANT
INSURANCE COMPANY |
|
|
Endorsement
No.: 2 |
|
|
To be
attached to and form a part of Bond |
|
|
Number: |
|
82047423 |
|
|
Issued to:
BLACKROCK KELSO CAPITAL CORPORATION |
|
|
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS
RIDER |
It is agreed
that this insurance does not apply to the extent that trade or economic
sanctions or other |
laws or
regulations prohibit the coverage provided by this insurance.
|
|
|
|
|
ALL OTHER
TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
Form 14-02-9228 (Ed. 4/2004)
|
|
|
|
|
|
ENDORSEMENT/RIDER |
Effective
date of |
|
|
|
|
this
endorsement/rider: June 26, 2008 |
|
VIGILANT
INSURANCE COMPANY |
|
|
|
|
Endorsement/Rider No. |
|
3 |
|
|
|
|
To be
attached to and |
|
|
|
|
|
|
form a part
of Bond No. |
|
82047423 |
|
|
Issued to:
BLACKROCK KELSO CAPITAL CORPORATION |
|
|
|
|
DELETING
VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION
|
|
|
|
|
ENDORSEMENT |
|
|
In
consideration of the premium charged, it is agreed that this Bond is
amended as follows: |
1. |
|
The paragraph
titled Other Property in Section 9, Valuation, is deleted in its
entirety. |
2. |
|
The third
paragraph in Section 16, Change or Modification, is deleted in its
entirety and replaced |
|
|
with the
following: |
|
|
|
|
|
|
If this Bond
is for a joint ASSURED, no change or modification which would adversely
affect the |
|
|
rights of the
ASSURED shall be effective prior to sixty (60) days after written notice
has been |
|
|
furnished to
all insured Investment Companies and the
Securities and Exchange Commission, |
|
|
Washington,
D.C., by the COMPANY. |
|
|
|
|
|
|
The title and
any headings in this endorsement/rider are solely for convenience and form
no part of the |
terms and
conditions of coverage. |
|
|
|
|
All other
terms, conditions and limitations of this Bond shall remain
unchanged. |
|
|
17-02-2437 (12/2006) rev.
|
|
|
|
VIGILANT
INSURANCE COMPANY |
|
|
|
|
|
Endorsement
No.: 4 |
|
|
|
|
|
Bond
Number: |
|
82047423 |
|
|
|
NAME OF
ASSURED: BLACKROCK KELSO CAPITAL CORPORATION |
|
|
|
|
|
|
|
NEW YORK
AMENDATORY ENDORSEMENT |
|
|
|
It is agreed
that this Bond is amended as follows: |
|
|
|
1. |
|
By adding to
Section 13, Termination, the following: |
|
|
|
|
|
Bonds In
Effect Sixty (60) Days Or Less |
|
|
|
|
|
If this Bond
has been in effect for less than sixty (60) days and if it is not a
renewal Bond, the COMPANY |
|
|
may terminate
it for any reason by mailing or delivering to the ASSURED and to the
authorized agent or |
|
|
broker, if
any, written notice of termination at least sixty (60) days before the
effective date of |
|
|
termination. |
|
|
|
|
|
Bonds In
Effect More Than Sixty (60) Days |
|
|
|
|
|
If this Bond
has been in effect for sixty (60) days or more, or if it is a renewal of a
Bond issued by the |
|
|
COMPANY, it
may be terminated by the COMPANY by mailing or delivering to the ASSURED
and to |
|
|
the
authorized agent or broker, if any, written notice of termination at least
sixty (60) days before the |
|
|
effective
date of termination. Furthermore, when the Bond is a renewal or has been
in effect for sixty |
|
|
(60) days or
more, the COMPANY may terminate only for one or more of the reasons stated
in 1-7 |
|
|
below. |
|
|
|
|
|
1. |
|
Nonpayment of
premium; |
|
|
|
|
|
2. |
|
Conviction of
a crime arising out of acts increasing the hazard insured against
; |
|
|
|
3. |
|
Discovery of
fraud or material misrepresentation in the obtaining of this Bond or in
the presentation |
|
|
|
|
of a claim
thereunder; |
|
|
|
|
|
4. |
|
Violation of
any provision of this Bond that substantially and materially increases the
hazard |
|
|
|
|
insured
against, and which occurred subsequent to inception of the current BOND
PERIOD; |
|
|
|
5. |
|
If
applicable, material physical change in the property insured, occurring
after issuance or last |
|
|
|
|
annual
renewal anniversary date of this Bond, which results in the property
becoming uninsurable |
|
|
|
|
in accordance
with the COMPANY's objective, uniformly applied underwriting standards in
effect at |
|
|
|
|
the time this
Bond was issued or last renewed; or material change in the nature or
extent of this |
|
|
|
|
Bond
occurring after issuance or last annual renewal anniversary date of this
Bond, which causes |
|
|
|
|
the risk of
loss to be substantially and materially increased beyond that contemplated
at the time |
|
|
|
|
this Bond was
issued or last renewed; |
|
|
ICAP Bond -
New York |
|
Form
17-02-2863 (Rev. 7-03) |
Page
1 |
|
|
6. |
|
A
determination by the Superintendent of Insurance that continuation of the
present premium |
|
|
|
|
volume of the
COMPANY would jeopardize the COMPANY's policyholders, creditors or the
public, |
|
|
|
|
or continuing
the Bond itself would place the COMPANY in violation of any provision of
the New |
|
|
|
|
York
Insurance Code; or |
|
|
7. |
|
Where the
COMPANY has reason to believe, in good faith and with sufficient cause,
that there is a |
|
|
|
|
probable risk
or danger that the Property
will be destroyed by the ASSURED for the purpose of
|
|
|
|
|
collecting
the insurance proceeds. |
|
|
Notice Of
Termination |
|
|
Notice of
termination under this SECTION shall be mailed to the ASSURED and to the
authorized agent |
|
|
or broker, if
any, at the address shown on the DECLARATIONS of this Bond. The COMPANY,
however, |
|
|
may deliver
any notice instead of mailing it. |
|
|
Return
Premium Calculations |
|
|
The COMPANY
shall refund the unearned premium computed pro rata if this Bond is
terminated by the |
|
|
COMPANY." |
2. |
|
By adding a
new Section reading as follows: |
|
|
"Section 17.
Election To Conditionally Renew / Nonrenew This Bond |
|
|
Conditional
Renewal |
|
|
If the
COMPANY conditionally renews this Bond subject to: |
|
|
1. |
|
Change of
limits of liability ; |
|
|
2. |
|
Change in
type of coverage; |
|
|
3. |
|
Reduction of
coverage; |
|
|
4. |
|
Increased
deductible; |
|
|
5. |
|
Addition of
exclusion; or |
|
|
6. |
|
Increased
premiums in excess of 10%, exclusive of any premium increase due to
and |
|
|
|
|
commensurate
with insured value added; or as a result of experience rating,
retrospective rating or |
|
|
|
|
audit; the
COMPANY shall send notice as provided in Notices Of Nonrenewal And
Conditional |
|
|
|
|
Renewal
immediately below. |
|
|
Notices Of
Nonrenewal And Conditional Renewal |
|
|
1. |
|
If the
COMPANY elects not to renew this Bond, or to conditionally renew this Bond
as provided |
|
|
|
|
herein, the
COMPANY shall mail or deliver written notice to the ASSURED at least sixty
(60) but |
|
|
|
|
not more than
one hundred twenty (120) days before: |
|
|
|
|
a. |
|
The
expiration date; or |
|
|
|
|
b. |
|
The
anniversary date if this Bond has been written for a term of more than one
year. |
ICAP Bond -
New York |
|
Form
17-02-2863 (Rev. 7-03) |
Page
2 |
|
|
2. |
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Notice shall
be mailed or delivered to the ASSURED at the address shown on
the |
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DECLARATIONS
of this Bond and the authorized agent or broker, if any. If notice is
mailed, proof |
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of mailing
shall be sufficient proof of notice. |
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3. |
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Paragraphs 1.
and 2. immediately above shall not apply when the ASSURED, authorized
agent or |
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broker, or
another insurer has mailed or delivered written notice to the COMPANY that
the Bond |
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has been
replaced or is no longer desired. |
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3. |
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By adding to
General Agreement B., Representations Made By Assured, the
following: |
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No
misrepresentation shall be deemed material unless knowledge by the COMPANY
would have lead to |
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the COMPANY'S
refusal to write this Bond. |
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This
Endorsement applies to loss discovered after 12:01 a.m. on June 26,
2008. |
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ALL OTHER
TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
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ICAP Bond -
New York |
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Form
17-02-2863 (Rev. 7-03) |
Page
3 |
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VIGILANT
INSURANCE COMPANY |
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Endorsement
No: |
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5 |
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Bond
Number: |
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82047423 |
NAME OF
ASSURED: BLACKROCK KELSO CAPITAL CORPORATION |
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TERMINATION-NONRENEWAL-NOTICE ENDORSEMENT
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It is agreed
that this Bond is amended as follows: |
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1. |
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By adding to
Section 13., Termination, the following: |
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"Termination
By The Company |
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Bonds In
Effect For More Than Sixty (60) Days |
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If this Bond
has been in effect for more than sixty (60) days, or, if this Bond is a
renewal, the COMPANY |
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may terminate
by providing written notice of cancellation at least sixty (60) days
before the effective date |
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of
termination for at least one of the following reasons: |
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1. |
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Nonpayment of
premium; |
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2. |
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Discovery of
fraud or material misrepresentation in obtaining this Bond or in the
presentation of a |
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claim
thereunder; |
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3. |
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Discovery of
willful or reckless acts or omissions or violation of any provision of
this Bond on the |
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part of the
ASSURED which substantially and materially increases any hazard insured
against, and |
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which
occurred subsequent to the inception of the current BOND
PERIOD; |
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4. |
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Conviction of
the ASSURED of a crime arising out of acts increasing the hazard insured
against; |
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5. |
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Material
change in the risk which increases the risk of loss after insurance
coverage has been |
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issued or
renewed, except to the extent that the COMPANY should reasonably have
foreseen the |
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change, or
contemplated the risk when the contract was written; |
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6. |
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Determination
by the Commissioner that the continuation of the Bond would jeopardize
a |
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COMPANY'S
solvency or would place the COMPANY in violation of the insurance laws of
any |
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state; |
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7. |
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Determination
by the Commissioner that continuation of the present premium volume of
the |
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COMPANY would
jeopardize the COMPANY'S policyholders, creditors or the
public; |
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8. |
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Such other
reasons that are approved by the Commissioner; |
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9. |
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Determination
by the Commissioner that the COMPANY no longer has adequate reinsurance
to |
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meet the
ASSUREDS needs; |
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10. |
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Substantial
breaches of contractual duties, conditions or warranties; or
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11. |
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Unfavorable
underwriting facts, specific to the ASSURED, existing that were not
present at the |
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inception of
the Bond. |
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ICAP
Bond |
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Form
17-02-1360 (Rev. 10-99) |
Page
1 |
Bonds In
Effect Sixty (60) Days Or Less |
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If this Bond
has been in effect for sixty (60) days or less, and it is not a renewal
Bond, the COMPANY |
may terminate
for any reason by providing written notice of termination at least sixty
(60) days before the |
effective
date of termination. |
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Notice Of
Termination |
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Notice of
termination under this Section shall be mailed or delivered, by certified
mail, return receipt |
provided by
the United States Postal Service, to the ASSURED and to the authorized
agent or broker, if |
any, at least
sixty (60) days prior to the effective date of cancellation at the address
shown on the |
DECLARATIONS
of this Bond. |
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If this Bond
is cancelled for nonpayment of premium, the COMPANY will mail or deliver,
by certified |
mail, return
receipt provided by the United States Postal Service, a written notice at
least thirty (30) days |
before the
effective date of cancellation. The cancellation notice shall contain
information regarding the |
amount of
premium due and the due date, and shall state the effect of nonpayment by
the due date. |
Cancellation
shall not be effective if payment of the amount due is made prior to the
effective date of |
cancellation. |
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All notice of
cancellation shall state the reason(s) for cancellation.
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There is no
liability on the part of, and no cause of action of any nature shall arise
against, the |
COMPANY, its
authorized representatives, its employees, or any firm, person or
corporation furnishing to |
the COMPANY,
information relating to the reasons for cancellation or nonrenewal, for
any statement |
made by them
in complying or enabling the COMPANY to comply with this Section, for the
provision of |
information
pertaining thereto, or for statements made or evidence submitted at any
hearings conducted |
in connection
therewith, if such information was provided in good faith and without
malice. |
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Notice Of
Nonrenewal |
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If the
COMPANY elects not to renew this Bond, the COMPANY shall mail or deliver
written notice, by |
certified
mail, return receipt, provided by the United States Postal Service, to the
ASSURED, at his last |
known
address, at least sixty (60) days before the expiration date or before the
anniversary date, if this |
Bond has been
written for a term of more than one (1) year. Such notice shall also be
mailed to the |
ASSURED'S
agent or broker, if any. |
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Such notice
shall contain all of the following: |
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a. |
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Bond
Number: |
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b. |
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Date of
Notice; |
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c. |
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Reason for
Cancellation; |
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d. |
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Expiration
Date of the Bond; |
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e. |
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Effective
Date and Hour of Cancellation. |
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Notice of
nonrenewal shall not be required if the COMPANY or a COMPANY within the
same insurance |
group has
offered to issue a renewal Bond, the ASSURED has obtained replacement
coverage or has |
agreed in
writing to obtain replacement coverage, the ASSURED has requested or
agreed to |
nonrenewal,
or the Bond is expressly designated as nonrenewable.
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ICAP
Bond |
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Form
17-02-1360 (Rev. 10-99) |
Page
2 |
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Return
Premium Calculations |
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Any unearned
premiums which have been paid by the ASSURED shall be refunded to the
ASSURED on |
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a pro rata
basis if terminated by the COMPANY or the ASSURED. The unearned premiums
shall be |
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refunded to
the ASSURED within forty-five (45) days of receipt of the request for
cancellation or the |
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effective
date of cancellation, whichever is later. |
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Conditional
Renewal |
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If the
COMPANY offers or purports to renew the Bond, but on less favorable terms
or at higher rates, the |
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new terms or
higher premiums may take effect on the renewal date, if the COMPANY mails
or delivers |
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by certified
mail, return receipt provided by the United States Postal Service, to the
ASSURED, notice of |
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the new terms
or premiums at least sixty (60) days prior to the renewal date. If the
COMPANY notifies |
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the ASSURED
within sixty (60) days prior to the renewal date, the new terms or
premiums do not take |
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effect until
sixty (60) days after the notice is mailed or delivered, in which case,
the ASSURED may elect |
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to cancel the
renewal Bond within the sixty (60) day period. If the COMPANY does not
notify the |
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ASSURED of
the new terms or premiums, the COMPANY shall continue the Bond at the
expiring terms |
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and premiums
until notice is given or until the effective date of replacement coverage
is obtained by the |
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ASSURED,
whichever occurs first.” |
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2. |
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It is further
understood and agreed that for the purposes of Section 13., Termination,
any occurrence |
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listed in
this Section shall be considered to be a request by the ASSURED to
immediately terminate this |
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Bond. |
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This
Endorsement applies to loss discovered after 12:01 a.m. on June 26,
2008. |
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ALL OTHER
TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP
Bond |
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Form
17-02-1360 (Rev. 10-99) |
Page
3 |
POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(for policies with no terrorism exclusion or sublimit)
You
are hereby notified that, under the Terrorism Risk Insurance Act (the “Act”),
effective December 26, 2007, this policy makes available to you insurance for
losses arising out of certain acts of terrorism. Terrorism is defined as any act
certified by the Secretary of the Treasury, in concurrence with the Secretary of
State and the Attorney General of the United States, to be an act of terrorism;
to be a violent act or an act that is dangerous to human life, property or
infrastructure; to have resulted in damage within the United States, or outside
the United States in the case of an air carrier or vessel or the premises of a
United States Mission; and to have been committed by an individual or
individuals as part of an effort to coerce the civilian population of the United
States or to influence the policy or affect the conduct of the United States
Government by coercion.
You
should know that the insurance provided by your policy for losses caused by acts
of terrorism is partially reimbursed by the United States under the formula set
forth in the Act. Under this formula, the United States pays 85% of covered
terrorism losses that exceed the statutorily established deductible to be paid
by the insurance company providing the coverage.
However, if aggregate
insured losses attributable to terrorist acts certified under the Act exceed
$100 billion in a Program Year (January 1 through December 31), the Treasury
shall not make any payment for any portion of the amount of such losses that
exceeds $100 billion.
10-02-1281 (Ed. 1/2003)
If
aggregate insured losses attributable to terrorist acts certified under the Act
exceed $100 billion in a Program Year (January 1 through December 31) and we
have met our insurer deductible under the Act, we shall not be liable for the
payment of any portion of the amount of such losses that exceeds $100 billion,
and in such case insured losses up to that amount are subject to pro rata
allocation in accordance with procedures established by the Secretary of the
Treasury.
The
portion of your policy’s annual premium that is attributable to insurance for
such acts
of
terrorism is: $ -0-.
If
you have any questions about this notice, please contact your agent or
broker.
10-02-1281 (Ed. 1/2003)
IMPORTANT
NOTICE TO POLICYHOLDERS
All of the members
of the Chubb Group of Insurance companies doing business in the United States
(hereinafter “Chubb”) distribute their products through licensed insurance
brokers and agents (“producers”). Detailed information regarding the types of
compensation paid by Chubb to producers on US insurance transactions is
available under the Producer Compensation link located at the bottom of the page
at www.chubb.com, or by calling 1-866-588-9478. Additional information may be
available from your producer.
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Thank you for choosing Chubb. |
10-02-1295 (ed. 5/2007)
The SEC
Requires Proof of Your Fidelity Insurance Policy
Your company is now required to file an electronic copy of your fidelity
insurance coverage (Chubb’s ICAP Bond policy) to the Securities and Exchange
Commission (SEC), according to rules adopted by the SEC on June 12,
2006.
Chubb is in the process of providing your agent/broker with an electronic
copy of your insurance policy as well as instructions on how to submit this
proof of fidelity insurance coverage to the SEC. You can expect to receive this
information from your agent/broker shortly.
The electronic copy of your policy is provided by Chubb solely as a
convenience and does not affect the terms and conditions of coverage as set
forth in the paper policy you receive by mail. The terms and conditions of the
policy mailed to you, which are the same as those set forth in the electronic
copy, constitute the entire agreement between your company and
Chubb.
If you have any questions, please contact your agent or
broker.
Form 14-02-12160 (ed. 7/2006)