kelso40.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 May 9, 2006 to June 25,
2007.
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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, the BDC
is insured against loss arising from larceny or embezzlement under a Registered
Management Investment Company bond (the “Bond") insuring the BDC in the amount
of $1,000,000 in the aggregate and per occurrence; and
WHEREAS, the Board of
Directors has 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 BDC to which any person covered by the Bond may have
access, (iii) the types and terms of the arrangements made by the BDC for the
custody and safekeeping of its assets, (iv) the nature of the securities in the
BDC’s portfolio, (v) the nature and method of conducting the BDC’s operations,
and (vi) the accounting procedures and controls of the BDC.
RESOLVED, that $1 million in
the aggregate and per occurrence of fidelity bond coverage is determined to be a
reasonable amount of fidelity bond coverage to be maintained by the BDC in
accordance with Section 17(g) of and Rule 17g-1 under the Investment Company Act
of 1940; and further
RESOLVED, that the form of the
Bond is approved; and further
RESOLVED, that the Chief
Compliance Officer of the BDC is designated as the person to make the filings
and to give the notices required by Rule 17g-1(g) under the Investment Company
Act; and further
RESOLVED, that upon the
finding of the Board of Directors of the BDC, and the separate finding of the
"Independent Directors," that the continued participation in the current Bond
covering directors and officers of the BDC in the amount of $1 million per
occurrence for an additional one year-term commencing May 9, 2006 at a premium
no higher that the premium for the preceding bond, is in the best interests of
the BDC, and that any officer of the BDC be, and each hereby is, authorized to
take such action as may be necessary or appropriate to effect the renewal of
such bond for such term.
Extension
of Insurance and Fidelity Bond
RESOLVED, that the extension
until June 15, 2007 (and, if later, to the date of the IPO) of the existing
Registered Management Investment Company bond for the Company in the amount of
$1 million, substantially in the form presented at this meeting, be, and it
hereby is, approved, together with such changes and modifications as the
officers of the Company executing the same may approve, such execution being
conclusive evidence of the approval of such changes and modifications by the
Board of Directors of the Company.
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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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FEDERAL INSURANCE COMPANY |
40 EAST
52ND STREET |
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Incorporated under the laws of Indiana |
NEW YORK, N
Y 10022 |
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a stock
insurance company herein called the COMPANY |
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Capital
Center, 251 North Illinois, Suite 1100 |
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Indianapolis, IN 46204-1927 |
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ITEM
1. |
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BOND
PERIOD: from |
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12:01 a.m.
on |
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May 9,
2006 |
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to
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12:01 a.m.
on |
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May 9,
2007 |
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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 and |
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any other
reference shall be deemed to be deleted. There
shall be no deductible applicable to any loss |
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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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$
1,000,000 |
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$
25,000 |
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2.
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On
Premises |
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$
1,000,000 |
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$
25,000 |
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3.
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In
Transit |
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$
1,000,000 |
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$
25,000 |
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4.
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Forgery or
Alteration |
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$
1,000,000 |
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$
25,000 |
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5.
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Extended
Forgery |
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$
1,000,000 |
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$
25,000 |
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6.
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Counterfeit
Money |
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$
100,000 |
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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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$
1,000,000 |
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$
25,000 |
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9.
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Voice
Initiated Funds Transfer Instruction |
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$
1,000,000 |
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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 -
4 |
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IN
WITNESS WHEREOF, THE COMPANY has caused
this Bond to be signed by its authorized officers, but it shall not
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valid
unless also signed by an authorized representative of the Company.
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ICAP Bond
(5-98) - Federal |
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Form
17-02-1421 (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) 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) 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) 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
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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 must
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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 |
|
|
|
|
standard
collection procedures have failed. |
|
|
Audit Expense |
|
11.
|
|
Expense
incurred by the ASSURED for that part of the cost of audits or
|
|
|
|
|
examinations required by any governmental regulatory authority or
self-regulatory |
|
|
|
|
organization to be conducted by such authority, organization or
their appointee by |
|
|
|
|
reason of
the discovery of loss sustained by the ASSURED and covered by this
|
|
|
|
|
Bond. |
|
ICAP Bond (5-98) Form
17-02-1421 (Ed. 5-98) Page 4 of 19 |
General
Agreements |
|
|
|
|
|
|
|
Additional Companies |
|
A.
|
|
If more
than one corporation, or Investment Company, or any
combination of |
Included As Assured |
|
|
|
them is
included as the ASSURED herein: |
|
|
|
|
(1)
|
|
The total
liability of the COMPANY under this Bond for loss or losses |
|
|
|
|
|
|
sustained
by any one or more or all of them shall not exceed the limit for
|
|
|
|
|
|
|
which the
COMPANY would be liable under this Bond if all such loss were
|
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|
|
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|
|
sustained
by any one of them. |
|
|
|
|
|
(2)
|
|
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 |
|
|
|
|
|
|
or
receiving of any notice or proof required to be given and for the purpose
of |
|
|
|
|
|
|
effecting
or accepting any amendments to or termination of this Bond. The
|
|
|
|
|
|
|
COMPANY
shall furnish each Investment Company with a copy
of the |
|
|
|
|
|
|
Bond and
with any amendment thereto, together with a copy of each formal
|
|
|
|
|
|
|
filing of
claim by any other named 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)
|
|
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)
|
|
Knowledge
possessed or discovery made by any partner, director, trustee,
|
|
|
|
|
|
|
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)
|
|
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. |
|
|
Representation Made By |
|
B.
|
|
The ASSURED
represents that all information it has furnished in the |
Assured |
|
|
|
APPLICATION
for this Bond or otherwise is complete, true and correct. Such
|
|
|
|
|
APPLICATION
and other information constitute part of this Bond. |
|
|
|
|
|
The ASSURED
must promptly notify the COMPANY of any change in any fact or
|
|
|
|
|
circumstance which materially affects the risk assumed by the
COMPANY under |
|
|
|
|
this
Bond. |
|
|
|
|
|
Any
intentional misrepresentation, omission, concealment or incorrect
statement of |
|
|
|
|
a material
fact, in the APPLICATION or otherwise, shall be grounds for recision
of |
|
|
|
|
this
Bond. |
ICAP Bond (5-98) Form
17-02-1421 (Ed. 5-98) Page 5 of 19 |
General
Agreements |
|
|
|
|
|
|
(continued) |
|
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|
|
Additional Offices Or |
|
C.
|
|
If the
ASSURED, other than an Investment Company, while
this Bond is in force, |
Employees - Consolidation, |
|
|
|
merges or
consolidates with, or purchases or acquires assets or liabilities
of |
Merger Or Purchase Or |
|
|
|
another
institution, the ASSURED shall not have the coverage afforded under
this |
Acquisition Of Assets |
|
|
|
Bond for
loss which has: |
OrLiabilities - Notice To |
|
|
|
(1)
|
|
occurred or
will occur on premises, or |
Company |
|
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|
(2)
|
|
been caused
or will be caused by an employee, or |
|
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|
|
(3)
|
|
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.
|
|
obtains the
written consent of the COMPANY to extend some or all of the |
|
|
|
|
|
|
coverage
provided by this Bond to such additional exposure, and |
|
|
|
|
c.
|
|
on
obtaining such consent, pays to the COMPANY an additional premium.
|
|
|
Change Of Control - |
|
D.
|
|
When the
ASSURED learns of a change in control (other than in an Investment |
Notice To Company |
|
|
|
Company), as set
forth in Section 2(a) (9) of the Investment Company Act of |
|
|
|
|
1940, |
|
the ASSURED
shall within sixty (60) days give written notice to the |
|
|
|
|
COMPANY
setting forth: |
|
|
|
|
(1)
|
|
the names
of the transferors and transferees (or the names of the beneficial
|
|
|
|
|
|
|
owners if
the voting securities are registered in another name), |
|
|
|
|
(2)
|
|
the total
number of voting securities owned by the transferors and the |
|
|
|
|
|
|
transferees
(or the beneficial owners), both immediately before and after the
|
|
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|
|
|
|
transfer,
and |
|
|
|
|
(3)
|
|
the total
number of outstanding voting securities. |
|
|
|
|
Failure to
give the required notice shall result in termination of coverage for
any |
|
|
|
|
loss
involving a transferee, to be effective on the date of such change in
control. |
|
|
Court Costs And |
|
E.
|
|
The COMPANY
will indemnify the ASSURED for court costs and reasonable |
Attorneys’ Fees |
|
|
|
attorneys'
fees incurred and paid by the ASSURED in defense, whether or not
|
|
|
|
|
successful,
whether or not fully litigated on the merits and whether or not
settled, |
|
|
|
|
of any
claim, suit or legal proceeding with respect to which the ASSURED
would |
|
|
|
|
be entitled
to recovery under this Bond. However, with respect to INSURING
|
|
|
|
|
CLAUSE 1.,
this Section shall only apply in the event that: |
|
|
|
|
(1)
|
|
an
Employee admits to
being guilty of Larceny or Embezzlement,
|
|
|
|
|
(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
|
|
|
|
|
such
Employee were
prosecuted. |
|
|
|
The ASSURED
shall promptly give notice to the COMPANY of any such suit or
|
|
|
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 |
|
|
attorneys
selected by the COMPANY. The ASSURED shall provide all reasonable
|
|
|
information
and assistance as required by the COMPANY for such defense. |
|
|
|
If the
COMPANY declines to defend the ASSURED, no settlement without the
|
|
|
prior
written consent of the COMPANY nor judgment against the ASSURED
shall |
|
|
determine
the existence, extent or amount of coverage under this Bond. |
|
|
|
If the
amount demanded in any such suit or legal proceeding is within the
|
|
|
DEDUCTIBLE
AMOUNT, if any, the COMPANY shall have no liability for court
|
|
|
costs and
attorney's fees incurred in defending all or part of such suit or
legal |
|
|
proceeding. |
|
|
|
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
|
|
|
proceeding. |
|
|
|
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, |
|
|
|
|
|
|
storage,
off-line media libraries, and communication facilities which are
|
|
|
|
|
|
|
connected
to the computer and which are under the control and supervision
|
|
|
|
|
|
|
of the
operating system(s) or application(s) software used by the ASSURED.
|
|
|
|
|
|
b.
|
|
Counterfeit means an
imitation of an actual valid original which is intended |
|
|
|
|
|
|
to deceive
and be taken as the original. |
|
|
|
|
|
c.
|
|
Custodian means the
institution designated by an Investment Company to
|
|
|
|
|
|
|
maintain
possession and control of its assets. |
|
|
|
|
|
d.
|
|
Customer means an
individual, corporate, partnership, trust customer, |
|
|
|
|
|
|
shareholder
or subscriber of an Investment Company which has a
written |
|
|
|
|
|
|
agreement
with the ASSURED for Voice
Initiated Funds Transfer |
|
|
|
|
|
|
Instruction.
|
|
|
|
|
|
e.
|
|
Employee means: |
|
|
|
|
|
|
|
(1)
|
|
an officer
of the ASSURED, |
|
|
|
|
|
|
|
(2)
|
|
a natural
person while in the regular service of the ASSURED at any of |
|
|
|
|
|
|
|
|
the
ASSURED'S premises and compensated directly by the ASSURED |
|
|
|
|
|
|
|
|
through its
payroll system and subject to the United States Internal |
|
|
|
|
|
|
|
|
Revenue
Service Form W-2 or equivalent income reporting plans of |
|
|
|
|
|
|
|
|
other
countries, and whom the ASSURED has the right to control and |
|
|
|
|
|
|
|
|
direct both
as to the result to be accomplished and details and means |
|
|
|
|
|
|
|
|
by which
such result is accomplished in the performance of such |
|
|
|
|
|
|
|
|
service, |
|
|
|
|
|
|
|
(3)
|
|
a guest
student pursuing studies or performing duties in any of the |
|
|
|
|
|
|
|
|
ASSURED'S
premises, |
|
|
|
|
|
|
|
(4)
|
|
an attorney
retained by the ASSURED and an employee of such |
|
|
|
|
|
|
|
|
attorney
while either is performing legal services for the ASSURED, |
|
|
|
|
|
|
|
(5)
|
|
a natural
person provided by an employment contractor to perform |
|
|
|
|
|
|
|
|
employee
duties for the ASSURED under the ASSURED'S supervision |
|
|
|
|
|
|
|
|
at any of
the ASSURED'S premises, |
|
|
|
|
|
|
|
(6)
|
|
an employee
of an institution merged or consolidated with the |
|
|
|
|
|
|
|
|
ASSURED
prior to the effective date of this Bond, |
|
|
|
|
|
|
|
(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 |
|
|
|
|
|
|
|
|
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
|
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|
|
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. |
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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.
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|
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.
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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.
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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.
|
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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. |
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General Exclusions - |
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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 |
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|
termination
of this Bond as an entirety; |
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b.
|
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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.
|
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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.
|
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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.
|
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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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Limitations |
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General Exclusions - |
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h.
|
|
loss
resulting from dishonest acts by any member of the Board of
Directors |
Applicable to All Insuring |
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|
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) |
|
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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 |
|
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|
|
j.
|
|
loss of
confidential information, material or data; |
|
|
|
|
k.
|
|
loss
resulting from voice requests or instructions received over the
|
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|
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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 |
|
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|
|
|
apply to
loss covered under INSURING CLAUSE 2. or 3. which results |
Clause 1. |
|
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|
|
directly
from misplacement, mysterious unexplainable disappearance, or
|
|
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|
|
|
|
damage or
destruction of Property;
|
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|
|
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
|
|
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|
|
transit in
the custody of any person acting as messenger of the |
|
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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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|
|
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 |
|
|
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|
|
|
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 |
|
|
|
|
such
privileges immediately preceding their expiration if said loss is not
discovered |
|
|
|
|
until after
their expiration. If no market price is quoted for such Property or
for |
|
|
|
|
such
privileges, the value shall be fixed by agreement between the
parties. |
|
|
|
|
OTHER
PROPERTY |
|
|
|
|
|
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 |
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10.
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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.
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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. |
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Subrogation – Assignment - 11.
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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 |
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 |
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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.
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submit to
examination by the COMPANY and subscribe to the same under |
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oath, |
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b.
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produce for
the COMPANY'S examination all pertinent records, and |
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c.
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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. |
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Termination |
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13.
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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.
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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.
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|
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 |
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|
|
|
Limitations |
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Termination |
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|
If any
partner, director, trustee, or officer or supervisory employee of
an |
(continued) |
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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) |
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|
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.
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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. |
|
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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 |
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|
|
|
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 |
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|
|
or modified
orally. No change in or modification of this Bond shall be
effective |
|
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|
|
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
|
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|
|
adversely
affect the rights of the ASSURED shall be effective prior to sixty
(60) |
|
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|
|
days after
written notice has been furnished to the Securities and Exchange
|
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|
|
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 |
|
Chubb &
Son, div.
of Federal Insurance Company as
manager of the member insurers of the Chubb
Group of Insurance Companies |
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 of 2002 (the
“Act”) |
effective November
26, 2002, this policy makes available to you insurance for losses
|
arising out of
certain acts of international 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 acting on behalf of any foreign person or foreign interest, 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 90% of covered terrorism losses
that |
exceed the
statutorily established deductible to be paid by the insurance
company |
providing the
coverage. 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.
|
Form
10-02-1281 (Ed. 1/2003) |
VIGILANT INSURANCE COMPANY |
Endorsement
No.: 1 |
Bond Number: |
|
82047423 |
|
NAME OF
ASSURED: BLACKROCK
KELSO CAPITAL CORPORATION |
|
|
DELETING VALUATION-OTHER PROPERTY ENDORSEMENT |
It is
agreed that this Bond is amended by deleting in its entirety the paragraph
titled Other Property in Section |
9.,
Valuation. |
|
|
|
|
|
This
Endorsement applies to loss discovered after 12:01 a.m. on May 9,
2006. |
ALL OTHER
TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
Form 17-02-2437 (Ed. 1-01)
Effective
date of |
|
|
|
|
this
endorsement: May 9,
2006 |
|
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)
|
|
|
|
VIGILANT INSURANCE COMPANY |
|
|
|
|
Endorsement
No: |
|
3
|
|
|
|
|
Bond
Number: |
|
82047423 |
NAME OF
ASSURED: BLACKROCK
KELSO CAPITAL CORPORATION |
|
|
|
|
|
|
|
|
TERMINATION-NONRENEWAL-NOTICE ENDORSEMENT |
It is
agreed that this Bond is amended as follows: |
|
|
1.
|
|
By adding
to Section 13., Termination, the following: |
|
|
|
|
"Termination By The Company |
|
|
|
|
Bonds In
Effect For More Than Sixty (60) Days |
|
|
|
|
If this
Bond has been in effect for more than sixty (60) days, or, if this Bond is
a renewal, the |
|
|
COMPANY may
terminate by providing written notice of cancellation at least sixty (60)
days before the |
|
|
effective
date of termination for at least one of the following reasons: |
|
|
|
|
1.
|
|
Nonpayment
of premium; |
|
|
|
|
2.
|
|
Discovery
of fraud or material misrepresentation in obtaining this Bond or in the
presentation of a |
|
|
|
|
claim
thereunder; |
|
|
|
|
3.
|
|
Discovery
of willful or reckless acts or omissions or violation of any provision of
this Bond on the |
|
|
|
|
part of the
ASSURED which substantially and materially increases any hazard insured
against, |
|
|
|
|
and which
occurred subsequent to the inception of the current BOND PERIOD;
|
|
|
4.
|
|
Conviction
of the ASSURED of a crime arising out of acts increasing the hazard
insured against; |
|
|
5.
|
|
Material
change in the risk which increases the risk of loss after insurance
coverage has been |
|
|
|
|
issued or
renewed, except to the extent that the COMPANY should reasonably have
foreseen the |
|
|
|
|
change, or
contemplated the risk when the contract was written; |
|
|
|
|
6.
|
|
Determination by the Commissioner that the continuation of the Bond
would jeopardize a |
|
|
|
|
COMPANY'S
solvency or would place the COMPANY in violation of the insurance laws of
any |
|
|
|
|
state; |
|
|
|
|
7.
|
|
Determination by the Commissioner that continuation of the present
premium volume of the |
|
|
|
|
COMPANY
would jeopardize the COMPANY'S policyholders, creditors or the
public; |
|
|
8.
|
|
Such other
reasons that are approved by the Commissioner; |
|
|
|
|
9.
|
|
Determination by the Commissioner that the COMPANY no longer has
adequate reinsurance to |
|
|
|
|
meet the
ASSUREDS needs; |
|
|
|
|
10.
|
|
Substantial
breaches of contractual duties, conditions or warranties; or |
|
|
11.
|
|
Unfavorable
underwriting facts, specific to the ASSURED, existing that were not
present at the |
|
|
|
|
inception
of the Bond. |
|
|
ICAP
Bond |
|
Form
17-02-1360 (Rev. 10-99) |
Page
1 |
Bonds In
Effect Sixty (60) Days Or Less |
|
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. |
|
Notice Of
Termination |
|
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. |
|
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. |
|
All notice
of cancellation shall state the reason(s) for cancellation. |
|
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. |
|
Notice Of
Nonrenewal |
|
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. |
|
Such notice
shall contain all of the following: |
|
a.
|
|
Bond
Number: |
|
b.
|
|
Date of
Notice; |
|
c.
|
|
Reason for
Cancellation; |
|
d.
|
|
Expiration
Date of the Bond; |
|
e.
|
|
Effective
Date and Hour of Cancellation. |
|
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.
|
ICAP
Bond |
|
Form
17-02-1360 (Rev. 10-99) |
Page
2 |
|
|
Return
Premium Calculations |
|
|
|
Any
unearned premiums which have been paid by the ASSURED shall be refunded to
the ASSURED |
|
|
on a pro
rata basis if terminated by the COMPANY or the ASSURED. The unearned
premiums shall |
|
|
be refunded
to the ASSURED within forty-five (45) days of receipt of the request for
cancellation or the |
|
|
effective
date of cancellation, whichever is later. |
|
|
|
Conditional
Renewal |
|
|
|
If the
COMPANY offers or purports to renew the Bond, but on less favorable terms
or at higher rates, |
|
|
the new
terms or higher premiums may take effect on the renewal date, if the
COMPANY mails or |
|
|
delivers by
certified mail, return receipt provided by the United States Postal
Service, to the ASSURED, |
|
|
notice of
the new terms or premiums at least sixty (60) days prior to the renewal
date. If the |
|
|
COMPANY
notifies the ASSURED within sixty (60) days prior to the renewal date, the
new terms or |
|
|
premiums do
not take effect until sixty (60) days after the notice is mailed or
delivered, in which case, |
|
|
the ASSURED
may elect to cancel the renewal Bond within the sixty (60) day period. If
the COMPANY |
|
|
does not
notify the ASSURED of the new terms or premiums, the COMPANY shall
continue the Bond |
|
|
at the
expiring terms and premiums until notice is given or until the effective
date of replacement |
|
|
coverage is
obtained by the ASSURED, whichever occurs first.” |
|
2.
|
|
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 May 9,
2006. |
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ALL OTHER
TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
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ICAP
Bond |
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Form
17-02-1360 (Rev. 10-99) |
Page
3 |
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VIGILANT INSURANCE COMPANY |
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Endorsement
No.: 4 |
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Bond
Number: |
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82047423 |
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NAME OF
ASSURED: BLACKROCK
KELSO CAPITAL CORPORATION |
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NEW
YORK AMENDATORY 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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Bonds In
Effect Sixty (60) Days Or Less |
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If this
Bond has been in effect for less than sixty (60) days and if it is not a
renewal Bond, the |
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COMPANY may
terminate it for any reason by mailing or delivering to the ASSURED and to
the |
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authorized
agent or broker, if any, written notice of termination at least sixty (60)
days before the |
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effective
date of termination. |
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Bonds In
Effect More Than Sixty (60) Days |
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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 |
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COMPANY, it
may be terminated by the COMPANY by mailing or delivering to the ASSURED
and to |
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the
authorized agent or broker, if any, written notice of termination at least
sixty (60) days before the |
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effective
date of termination. Furthermore, when the Bond is a renewal or has been
in effect for sixty |
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(60) days
or more, the COMPANY may terminate only for one or more of the reasons
stated in 1-7 |
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below. |
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1.
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Nonpayment
of premium; |
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2.
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Conviction
of a crime arising out of acts increasing the hazard insured against
; |
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3.
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Discovery
of fraud or material misrepresentation in the obtaining of this Bond or in
the |
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presentation of a claim thereunder; |
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4.
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Violation
of any provision of this Bond that substantially and materially increases
the hazard |
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insured
against, and which occurred subsequent to inception of the current BOND
PERIOD; |
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5.
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If
applicable, material physical change in the property insured, occurring
after issuance or last |
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annual
renewal anniversary date of this Bond, which results in the property
becoming uninsurable |
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in
accordance with the COMPANY's objective, uniformly applied underwriting
standards in effect |
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at the time
this Bond was issued or last renewed; or material change in the nature or
extent of |
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this Bond
occurring after issuance or last annual renewal anniversary date of this
Bond, which |
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causes the
risk of loss to be substantially and materially increased beyond that
contemplated at |
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the time
this Bond was issued or last renewed; |
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ICAP Bond -
New York |
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Form
17-02-2863 (Rev. 7-03) |
Page
1 |
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6.
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A
determination by the Superintendent of Insurance that continuation of the
present premium |
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volume of
the COMPANY would jeopardize the COMPANY's policyholders, creditors or
the |
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public, or
continuing the Bond itself would place the COMPANY in violation of any
provision of the |
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New York
Insurance Code; or |
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7.
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Where the
COMPANY has reason to believe, in good faith and with sufficient cause,
that there is |
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a probable
risk or danger that the Property will be
destroyed by the ASSURED for the purpose of |
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collecting
the insurance proceeds. |
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Notice Of
Termination |
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Notice of
termination under this SECTION shall be mailed to the ASSURED and to the
authorized |
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agent or
broker, if any, at the address shown on the DECLARATIONS of this Bond. The
COMPANY, |
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however,
may deliver any notice instead of mailing it. |
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Return
Premium Calculations |
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The COMPANY
shall refund the unearned premium computed pro rata if this Bond is
terminated by the |
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COMPANY." |
2.
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By adding a
new Section reading as follows: |
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"Section
17. Election
To Conditionally Renew / Nonrenew This Bond |
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Conditional
Renewal |
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If the
COMPANY conditionally renews this Bond subject to: |
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1.
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Change of
limits of liability ; |
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2.
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Change in
type of coverage; |
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3.
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Reduction
of coverage; |
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4.
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Increased
deductible; |
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5.
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Addition of
exclusion; or |
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6.
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Increased
premiums in excess of 10%, exclusive of any premium increase due to
and |
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commensurate with insured value added; or as a result of experience
rating, retrospective rating |
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or audit;
the COMPANY shall send notice as provided in Notices Of Nonrenewal And
Conditional |
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Renewal
immediately below. |
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Notices Of
Nonrenewal And Conditional Renewal |
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1.
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If the
COMPANY elects not to renew this Bond, or to conditionally renew this Bond
as provided |
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herein, the
COMPANY shall mail or deliver written notice to the ASSURED at least sixty
(60) but |
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not more
than one hundred twenty (120) days before: |
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a.
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The
expiration date; or |
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b.
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The
anniversary date if this Bond has been written for a term of more than one
year. |
ICAP Bond -
New York |
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Form
17-02-2863 (Rev. 7-03) |
Page
2 |
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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, |
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proof 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 |
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or broker,
or another insurer has mailed or delivered written notice to the COMPANY
that the |
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Bond 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 |
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to the
COMPANY'S refusal to write this Bond. |
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This
Endorsement applies to loss discovered after 12:01 a.m. on May 9,
2006. |
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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 |
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)
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ENDORSEMENT/RIDER |
Effective
date of |
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this
endorsement/rider: May 9,
2006 |
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VIGILANT INSURANCE COMPANY |
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Endorsement/Rider No. 5
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To be
attached to and |
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form a part
of Bond No. 82047423 |
Issued to:
BLACKROCK KELSO CAPITAL CORPORATION |
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AMEND INVESTMENT COMPANY ENDORSEMENT |
In
consideration of the premium charged, it is agreed that Section 1,
Definition g., Investment Company, is
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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. |
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The title
and any headings in this endorsement/rider are solely for convenience and
form no part of the terms |
and
conditions of coverage. |
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All other
terms, conditions and limitations of this Bond shall remain
unchanged. |