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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 11 of 19
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Conditions and Limitations
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General Exclusions - Applicable to All Insuring Clauses
(continued)
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h.
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loss resulting from dishonest acts by any member of the Board of Directors or Board of Trustees of the ASSURED who is not an
Employee
, acting alone or in
collusion with others;
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i.
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loss, or that part of any loss, resulting solely from
any violation by the ASSURED or by any
Employee
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(1)
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of any law regulating:
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a.
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the issuance, purchase or sale of securities,
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b.
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securities transactions on security or commodity exchanges or the
over the counter market,
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c.
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investment companies,
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d.
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investment advisors, or
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(2)
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of any rule or regulation made pursuant to any such law; or
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j.
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loss of confidential information, material or data;
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k.
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loss resulting from voice requests or instructions received over the telephone, provided however, this Section 2.k. shall not apply to INSURING CLAUSE 7. or
9.
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Specific Exclusions -
Applicable To All Insuring Clauses Except Insuring Clause 1.
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3.
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This Bond does not directly or indirectly cover:
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a.
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loss caused by an
Employee
, provided, however,
this Section 3.a. shall not apply to loss covered under INSURING CLAUSE 2. or 3. which results directly from misplacement, mysterious unexplainable disappearance, or damage or destruction of
Property
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b.
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loss through the surrender of property away from
premises of the ASSURED as a result of a threat:
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(1)
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to do bodily harm to any natural person, except loss
of
Property
in transit in the custody of any person acting as messenger of the ASSURED, provided that when such transit was initiated there was no knowledge by the ASSURED of any such threat, and provided further that this Section 3.b. shall
not apply to INSURING CLAUSE 7., or
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(2)
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to do damage to the premises or
Property
of the
ASSURED;
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c.
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loss resulting from payments made or withdrawals from
any account involving erroneous credits to such account;
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d.
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loss involving
Items of Deposit
which are not
finally paid for any reason provided however, that this Section 3.d. shall not apply to INSURING CLAUSE 10.;
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e.
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loss of property while in the mail;
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 12 of 19
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Conditions and Limitations
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Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clause 1. (continued)
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f.
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loss resulting from the failure for any reason of a financial or depository institution, its receiver or other liquidator to pay or deliver funds or other
Property
to the
ASSURED provided further that this Section 3.f. shall not apply to loss of
Property
resulting directly from robbery, burglary, misplacement, mysterious unexplainable disappearance, damage, destruction or removal from the possession, custody
or control of the ASSURED.
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g.
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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.;
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h.
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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 ASSUREDs
Computer System
; or
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i.
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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 customers authentication
mechanism.
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Specific Exclusions -
Applicable To All Insuring Clauses Except Insuring Clauses 1., 4., And 5.
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4.
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This bond does not directly or indirectly cover:
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a.
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loss resulting from the complete or partial non-payment of or default on any loan whether such loan was procured in good faith or through trick, artifice, fraud or false pretenses;
provided, however, this Section 4.a. shall not apply to INSURING CLAUSE 8.;
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b.
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loss resulting from forgery or any alteration;
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c.
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loss involving a counterfeit provided, however, this Section 4.c.
shall not apply to INSURING CLAUSE 5. or 6.
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Limit Of Liability/Non - Reduction And Non - Accumulation Of Liability
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5.
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At all times prior to termination of this Bond, this Bond shall continue in force for the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS,
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:
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a.
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any one act of burglary, robbery or hold-up, or attempt thereat, in
which no
Employee
is concerned or implicated, or
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b.
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any one unintentional or negligent act on the part of any one
person resulting in damage to or destruction or misplacement of
Property
, or
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c.
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all acts, other than those specified in a. above, of any one person, or
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 13 of 19
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Conditions and Limitations
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Limit Of Liability/Non-Reduction And Non-Accumulation Of Liability (continued)
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d.
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any one casualty or event other than those specified in a., b., or c. above,
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shall be deemed to be one loss and shall be limited to the applicable LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the total
amount of such loss or losses and shall not be cumulative in amounts from year to year or from period to period.
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All acts, as specified in c. above, of any one person
which
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i.
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directly or indirectly aid in any way wrongful acts of any other
person or persons, or
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ii.
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permit the continuation of wrongful acts of any other person or
persons
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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.
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Discovery
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6.
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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:
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a.
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facts which may subsequently result in a loss of a type covered by this Bond, or
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b.
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an actual or potential claim in which it is alleged that the ASSURED is liable to a third party,
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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.
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Notice To Company - Proof - Legal Proceedings Against Company
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7.
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a.
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The ASSURED shall give the COMPANY notice thereof at the earliest practicable moment, not to exceed sixty (60) days after discovery of loss, in an amount that is in excess of 50% of
the applicable DEDUCTIBLE AMOUNT, as stated in ITEM 2. of the DECLARATIONS.
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b.
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The ASSURED shall furnish to the COMPANY proof of loss, duly sworn
to, with full particulars within six (6) months after such discovery.
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c.
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Securities listed in a proof of loss shall be identified by
certificate or bond numbers, if issued with them.
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d.
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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.
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e.
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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.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 14 of 19
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Conditions and Limitations
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Notice To Company - Proof - Legal Proceedings
Against Company
(continued)
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f.
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Proof of loss involving
Voice Initiated Funds Transfer Instruction
shall include electronic recordings of such instructions.
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Deductible Amount
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8.
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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.
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There shall be no deductible applicable to any loss under INSURING CLAUSE 1. sustained by any
Investment Company
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Valuation
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9.
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BOOKS OF ACCOUNT OR OTHER RECORDS
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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.
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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.
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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.
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OTHER PROPERTY
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The value of any loss of
Property
, other than as stated above, shall be the actual cash value or the cost of repairing or replacing such
Property
with
Property
of like quality and value, whichever is less.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 15 of 19
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Conditions and Limitations
(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, at its sole discretion, purchase replacement securities, tender the value of the
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 against all loss, cost or expense arising from the replacement of securities by the
COMPANYS indemnity shall be:
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a.
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for securities having a value less than or equal to the applicable 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 within the applicable LIMIT OF LIABILITY - the percentage that the 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 - the percentage that the DEDUCTIBLE AMOUNT and portion in excess of 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 Section 9, Valuation, regardless of the value of such securities at the time the loss
under the COMPANYS indemnity is sustained.
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The COMPANY is not required to issue its indemnity for any portion of a loss of securities which is not covered by this Bond; however, the COMPANY may do so as a
courtesy to the ASSURED and at its sole discretion.
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The ASSURED shall pay the proportion of the Companys premium charge for the Companys indemnity as set forth in Section 10.a., b., and c. No portion of the
LIMIT OF LIABILITY shall be used as payment of premium for any indemnity purchased by the ASSURED to obtain replacement securities.
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Subrogation - Assignment - Recovery
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11.
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In the event of a payment under this Bond, the COMPANY shall be subrogated to all of the ASSUREDS rights of recovery against any person or entity to the extent of
such payment. On request, the ASSURED shall deliver to the COMPANY an assignment of the ASSUREDS rights, title and interest and causes of action 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 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 ASSUREDS loss which would otherwise have been paid but for the fact that it is in excess of the applicable LIMIT OF
LIABILITY,
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b.
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second, to the COMPANY in satisfaction of amounts paid in settlement of the ASSUREDS claim,
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c.
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third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE AMOUNT, and
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 16 of 19
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Conditions and Limitations
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Subrogation - Assignment - Recovery
(continued)
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d.
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fourth, to the ASSURED in satisfaction of any loss suffered by the ASSURED which was not covered under this Bond.
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Recovery from reinsurance or indemnity of the COMPANY
shall not be deemed a recovery under this section.
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Cooperation Of Assured
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12.
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At the COMPANYS request and at reasonable times and places designated by 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 oath,
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b.
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produce for the COMPANYS 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 COMPANY the rights and causes of action provided for under this Bond. The 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 shall have been given by the acting party to the affected party and to the Securities
and Exchange Commission, Washington, D.C., not less than sixty (60) days prior to the effective date of such termination.
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If the Bond is for a joint ASSURED, it shall not be terminated unless written notice shall have been given by the acting party to the affected party, and by the COMPANY
to all ASSURED
Investment Companies
and to the Securities and Exchange Commission, Washington, D.C., not less than sixty (60) days prior to the effective date of such termination.
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This Bond will terminate as to any one ASSURED, other than an
Investment
Company
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a.
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immediately on the taking over of such ASSURED by a receiver or other 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 relative to bankruptcy or reorganization of the ASSURED, or assignment for the benefit of creditors of the
ASSURED, or
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c.
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immediately upon such ASSURED ceasing to exist, whether through merger 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 accordance with the standard short rate cancellation tables if terminated by the ASSURED or pro
rata if terminated for any other reason.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 17 of 19
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Conditions and Limitations
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Termination (continued)
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If any partner, director, trustee, or officer or supervisory employee of an ASSURED not acting in collusion with an
Employee
learns of any dishonest act committed
by such
Employee
at any time, whether in the employment of the ASSURED or otherwise, whether or not such act is of the type covered under this Bond, and whether against the ASSURED or any other person or entity, the ASSURED:
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a.
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shall immediately remove such
Employee
from a position that would enable such
Employee
to cause the ASSURED to suffer a loss covered by this Bond; and
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b.
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within forty-eight (48) hours of learning that an
Employee
has committed any dishonest act, shall notify the COMPANY, of such action and provide full particulars of such
dishonest act.
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The COMPANY may terminate coverage as respects any
Employee
sixty (60) days after written notice is received by each ASSURED
Investment Company
and the
Securities and Exchange Commission, Washington, D.C. of its desire to terminate this Bond as to such
Employee
.
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Other Insurance
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14.
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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.
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the ASSURED,
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b.
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a
Transportation Company
, or
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c.
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another entity on whose premises the loss occurred or which employed the person causing the loss or engaged the messenger conveying the
Property
involved.
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Conformity
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15.
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If any limitation within this Bond is prohibited by any law controlling this Bonds construction, such limitation shall be deemed to be amended so as to equal the
minimum period of limitation provided by such law.
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Change or Modification
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16.
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This Bond or any instrument amending or affecting this Bond may not be changed or modified orally. No change in or modification of this Bond shall be effective except
when made by written endorsement to this Bond signed by an authorized representative of the COMPANY.
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If this Bond is for a sole ASSURED, no change or modification which would adversely affect the rights of the ASSURED shall be effective prior to sixty (60) days after
written notice has been furnished to the Securities and Exchange Commission, Washington, D.C., by the acting party.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
|
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Page 18 of 19
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Conditions And Limitations
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Change or Modification (continued)
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If this Bond is for a joint ASSURED, no charge or modification which would adversely affect the rights of the ASSURED shall be effective prior to sixty (60) days after
written notice has been furnished to all insured
Investment Companies
and to the Securities and Exchange Commission, Washington, D.C., by the COMPANY.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 19 of 19
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ENDORSEMENT/RIDER
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Effective date of
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this endorsement/rider: June 9, 2017
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FEDERAL INSURANCE COMPANY
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Endorsement/Rider No. 1
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To be attached to and
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form a part of Policy No. 82341119
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Issued to: HERCULES CAPITAL, INC.
COMPLIANCE WITH APPLICABLE TRADE
SANCTION LAWS
It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other similar laws or
regulations prohibit the coverage provided by this insurance.
The title and any headings in this endorsement/rider are solely for convenience
and form no part of the terms and conditions of coverage.
All other terms, conditions and limitations of this Policy shall remain unchanged.
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Authorized Representative
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14-02-9228 (2/2010)
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Page 1
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FEDERAL INSURANCE COMPANY
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Endorsement No:
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2
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Bond Number:
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82341119
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NAME OF ASSURED: HERCULES TECHNOLOGY GROWTH CAPITAL INC
PREMIUM ENDORSEMENT
It is agreed that:
1.
|
The premium for this Bond for the period June 9, 2017 to June 9, 2018 is:
|
Premium: six thousand eight hundred eighty six dollars ($6,886.00)
2.
|
It is further agreed that this premium is subject to change during this period if amendments are made to this Bond at the request of the ASSURED.
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This Endorsement applies to loss discovered after 12:01 a.m. on June 9, 2017.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
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Date: June 8, 2017
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By
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Authorized Representative
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ICAP Bond
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Form 17-02-0735 (Rev. 1-97)
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ENDORSEMENT/RIDER
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Effective date of
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this endorsement/rider: June 9, 2017
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FEDERAL INSURANCE COMPANY
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Endorsement/Rider No. 3
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To be attached to and
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form a part of Bond No. 82341119
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Issued to: HERCULES CAPITAL, INC.
FRAUDULENT TRANSFER INSTRUCTIONS
ENDORSEMENT
(For use with the ICAP bond)
In consideration of the premium charged, it is agreed that this bond is amended as follows:
(1)
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The following Insuring Clause is added:
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FRAUDULENT TRANSFER INSTRUCTIONS
Loss resulting directly from the ASSURED having,
in good faith, transferred money on deposit in a
Customers
account, or a
Customers Certificated Security
or
Uncertificated Security,
in reliance upon a fraudulent instruction transmitted to the ASSURED via
telefacsimile, telephone or electronic mail; provided, however, that:
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A.
|
the fraudulent instruction purports, and reasonably appears, to have originated from:
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ii.
|
an
Employee
acting on instructions of such
Customer,
or
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iii.
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another financial institution acting on behalf of such
Customer
with authority to make such instructions; and
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|
B.
|
the sender of the fraudulent instruction verified the instruction with the password, PIN, or other security code of such
Customer;
and
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|
C.
|
the sender was not, in fact, such
Customer,
was not authorized to act on behalf of such
Customer,
and was not an
Employee;
and
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|
D.
|
the instruction was received by an
Employee
specifically authorized by the ASSURED to receive and act upon such instructions; and
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E.
|
for any transfer exceeding the amount set forth in paragraph (8) of this endorsement, the ASSURED verified the instructions via a call back to a predetermined
telephone number set forth in the ASSUREDs written agreement with such
Customer
or other verification procedure approved in writing by the COMPANY; and
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14-02-21330 (10/2014)
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Page 1
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F.
|
the ASSURED preserved a contemporaneous record of the call back, if any, and the instruction which verifies use of the authorized password, PIN or other security code
of the
Customer
.
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(2)
|
For the purposes of the coverage afforded by this endorsement, the following terms shall have the following meanings:
|
Certificated Security
means a share, participation or other interest in property of, or an enterprise of, the issuer or an
obligation of the issuer, which is:
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(1)
|
represented by an instrument issued in bearer or registered form, and
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(2)
|
of a type commonly dealt in on securities exchanges or markets or commonly recognized in any area in which it is issued or dealt in as a medium for investment, and
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(3)
|
either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.
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Customer
means any individual, corporate partnership, proprietor, trust customer, shareholder or subscriber of an
Investment
Company
which has a written agreement with the ASSURED authorizing the ASSURED to transfer
Money
on deposit in an account or
Certificated Security
or
Uncertificated Security
in reliance upon instructions transmitted to the
ASSURED via telefacsimile, telephone or electronic mail to transmit the fraudulent instruction.
Uncertificated Security
means a share, participation or other interest in property of or an enterprise of the issuer or an obligation of the issuer, which is:
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(1)
|
not represented by an instrument and the transfer of which is registered on books maintained for that purpose by or on behalf of the issuer, and
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(2)
|
of a type commonly dealt in on securities exchanges or markets, and
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(3)
|
either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.
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(3)
|
It shall be a condition precedent to coverage under this Insuring Clause that the ASSURED assert any available claims, offsets or defenses against such
Customer
,
any financial institution or any other party to the transaction.
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(4)
|
Solely with respect to the Fraudulent Transfer Instruction Insuring Clause, the following Exclusions are added:
|
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A.
|
Loss resulting directly or indirectly from a fraudulent instruction if the sender, or anyone acting in collusion with the sender, ever had authorized access to such
Customers
password, PIN or other security code; and
|
|
B.
|
Loss resulting directly or indirectly from the fraudulent alteration of an instruction to initiate an automated clearing house (ACH) entry, or group of ACH entries,
transmitted as an electronic message, or as an attachment to an electronic message, sent via the internet, unless:
|
|
i.
|
each ACH entry was individually verified via the call back procedure without regard to the amount of the entry; or
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ii.
|
the instruction was formatted, encoded or encrypted so that any altercation in the ACH entry or group of ACH entries would be apparent to the ASSURED.
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14-02-21330 (10/2014)
|
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Page 2
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(5)
|
Solely with respect to the Fraudulent Transfer Instruction Insuring Clause, Exclusion 2.k. is deleted and replaced with the following:
|
|
k.
|
loss resulting from voice requests or instructions received over the telephone, provided however, this Section 2.k. shall not apply to INSURING CLAUSE 7. or 9. or
the Fraudulent Transfer Instruction Insuring Clause.
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(6)
|
For the purposes of the Fraudulent Transfer Instruction Insuring Clause, all loss or losses involving one natural person or entity, or one group of natural persons or
entities acting together, shall be a Single Loss without regard to the number of transfers or the number of instructions involved.
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(7)
|
For the purposes of the Fraudulent Transfer Instruction Insuring Clause, the Single Loss Limit of Liability shall be $ 1,250,000. The Deductible Amount shall be $
50,000.
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(8)
|
The amount of any single transfer for which verification via call back will be required is: $ 50,000.
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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.
All other terms, conditions and limitations of this Bond shall remain unchanged.
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Authorized Representative
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14-02-21330 (10/2014)
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Page 3
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FEDERAL INSURANCE COMPANY
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Endorsement No.: 4
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Bond Number: 82341119
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NAME OF ASSURED: HERCULES CAPITAL, INC.
UNAUTHORIZED SIGNATURE
ENDORSEMENT
It is agreed that this Bond is amended as follows:
1.
|
By adding the following INSURING CLAUSE:
|
|
13.
|
Unauthorized Signature
|
Loss
resulting directly from the ASSURED having accepted, paid or cashed any check or
Withdrawal Order
made or drawn on or against the account of the ASSUREDS customer which bears the signature or endorsement of one other than a person whose
name and signature is on file with the ASSURED as a signatory on such account.
It shall be a condition precedent to the
ASSUREDS right of recovery under this INSURING CLAUSE that the ASSURED shall have on file signatures of all the persons who are signatories on such account.
2.
|
By adding to Section 1., Definitions, the following:
|
|
s.
|
Instruction
means a written order to the issuer of an
Uncertificated Security
requesting that the transfer, pledge or release from pledge of the specified
Uncertificated Security
be registered.
|
|
t.
|
Uncertificated Security
means a share, participation or other interest in property of or an enterprise of the issuer or an obligation of the issuer, which is:
|
|
(1)
|
not represented by an instrument and the transfer of which is registered on books maintained for that purpose by or on behalf of the issuer, and
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|
(2)
|
of a type commonly dealt in on securities exchanges or markets, and
|
|
(3)
|
either one of a class or series or by its terms divisible into a class or series of shares, participations, interests or obligations.
|
|
|
|
ICAP Bond
|
|
|
Form 17-02-5602 (Ed. 10-03)
|
|
Page 1
|
|
u.
|
Withdrawal Order
means a non-negotiable instrument, other than an
Instruction,
signed by a customer of the ASSURED authorizing the ASSURED to debit the
customers account in the amount of funds stated therein.
|
This Endorsement applies to loss discovered after 12:01 a.m. on
June 9, 2017.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
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|
|
Date: June 8, 2017
|
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|
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By
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Authorized Representative
|
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|
|
ICAP Bond
|
|
|
Form 17-02-5602 (Ed. 10-03)
|
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Page 2
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FEDERAL INSURANCE COMPANY
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Endorsement No.: 5
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Bond Number: 82341119
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NAME OF ASSURED: HERCULES CAPITAL, INC.
JOINT LOSS PAYEE ENDORSEMENT
It is agreed that this Bond is amended as follows:
1.
|
At the written request of the Named ASSURED, any payment in satisfaction of loss covered by this Bond involving money, securities or other
Property
in which
Hercules Technology Growth Capital, Inc has an interest shall be paid by an instrument issued to that organization and the Named ASSURED as Joint Loss-Payees, subject to the following conditions and limitations:
|
|
a.
|
The attached Bond is for the sole use and benefit of the Named ASSURED as expressed herein. The organization named above shall not be considered as an ASSURED under
this Bond, nor shall it otherwise have any rights or benefits under said Bond.
|
|
b.
|
Notwithstanding any payment made under the terms of this Endorsement or the execution of more than one of such similar Endorsement, the amount paid for any one loss
occurrence or otherwise in accordance with the terms of this bond shall not exceed the LIMIT OF LIABILITY as set forth in the DECLARATIONS.
|
|
c.
|
Nothing herein is intended to alter the terms, conditions and limitations of this Bond.
|
2.
|
Should this Bond be canceled, reduced, non-renewed or restrictively modified by the COMPANY, the COMPANY will endeavor to give thirty (30) days advance notice to
Hercules Technology Growth Capital, Inc but failure to do so shall not impair or delay the effectiveness of any such cancellation, reduction, non-renewal or restrictive modification, nor shall the COMPANY be held liable in any way.
|
3.
|
Should this Bond be canceled or reduced at the request of the ASSURED, the COMPANY will endeavor to notify Hercules Technology Growth Capital, Inc of such cancellation
or reduction within ten (10) business days after receipt of such request, but failure to do so shall not impair or delay the effectiveness of such cancellation or reduction, nor shall the COMPANY be held liable in any way.
|
This Endorsement applies to loss discovered after 12:01 a.m. on June 9, 2017.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
|
|
|
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|
|
|
|
|
|
Date: June 8, 2017
|
|
|
|
By
|
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|
|
|
|
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|
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Authorized Representative
|
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|
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|
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|
|
Form 17-02-4771 (Ed. 9-02)
|
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|
|
ENDORSEMENT/RIDER
|
|
Effective date of
|
|
|
|
|
|
|
|
|
this endorsement/rider: June 9, 2017
|
|
|
|
FEDERAL INSURANCE COMPANY
|
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|
|
Endorsement/Rider No. 6
|
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|
|
To be attached to and
|
|
|
|
|
|
|
|
|
form a part of Bond No. 82341119
|
|
Issued to: HERCULES CAPITAL, INC.
DELETING VALUATION-OTHER PROPERTY
AND AMENDING CHANGE OR MODIFICATION ENDORSEMENT
In consideration of the premium charged, it is agreed that this Bond is amended as follows:
1.
|
The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety.
|
2.
|
The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced with the following:
|
If this Bond is for a joint ASSURED, no change or modification which would adversely affect the rights of the ASSURED shall be effective
prior to sixty (60) days after written notice has been furnished to all insured
Investment Companies
and the Securities and Exchange Commission, Washington, D.C., by the COMPANY.
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.
All other terms, conditions and limitations of this Bond shall remain unchanged.
|
|
|
Authorized Representative
|
|
|
|
|
|
17-02-2437 (12/2006) rev.
|
|
Page 1
|
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|
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|
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|
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|
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|
|
|
FEDERAL INSURANCE COMPANY
|
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|
|
Endorsement No: 7
|
|
|
|
|
|
|
|
Bond Number: 82341119
|
NAME OF ASSURED: HERCULES CAPITAL, INC.
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 COMPANYS 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 COMPANYS 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 ASSUREDS agent or broker, if any.
Such notice shall contain all
of the following:
|
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 listed in this Section shall be considered to be a request by
the ASSURED to immediately terminate this Bond.
|
This Endorsement applies to loss discovered after 12:01 a.m. on June 9,
2017.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
|
|
|
|
|
|
|
|
|
|
Date: June 8, 2017
|
|
|
|
By
|
|
|
|
|
|
|
|
|
Authorized Representative
|
|
|
|
|
|
|
|
|
|
|
ICAP Bond
|
|
|
Form 17-02-1360 (Rev. 10-99)
|
|
Page 3
|
|
|
|
|
|
ENDORSEMENT/RIDER
|
|
|
Effective date of
|
|
|
this endorsement/rider: June 9, 2017
|
|
FEDERAL INSURANCE COMPANY
|
|
|
|
|
Endorsement/Rider No. 8
|
|
|
|
|
To be attached to and
form a
part of Bond No. 82341119
|
|
|
|
Issued to: HERCULES CAPITAL, INC.
|
|
|
|
|
EMPLOYEE BENEFIT PLANS ENDORSEMENT
|
In consideration of the premium charged, it is agreed that this Bond amended by adding the following section:
All of the ASSUREDS employee benefit plans that qualify under Section 412 of the Employee
Retirement Income Security Act of 1974 (ERISA), are provided bonding protection under
INSURING CLAUSE 1., Employee, as required under ERISA.
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.
All other terms, conditions and limitations of this Bond shall remain unchanged.
|
|
|
Authorized Representative
|
|
|
|
|
|
ENDORSEMENT/RIDER
|
|
|
Effective date of
|
|
|
this endorsement/rider: June 9, 2017
|
|
FEDERAL INSURANCE COMPANY
|
|
|
|
|
Endorsement/Rider No. 9
|
|
|
|
|
To be attached to and
form a part of Bond No. 82341119
|
|
|
|
Issued to: HERCULES CAPITAL, INC.
|
|
PRO RATA CANCELLATION ENDORSEMENT
|
In consideration of the premium charged, it is agreed that, notwithstanding anything to the contrary in the policy or any
endorsements thereto, in the event that this policy is cancelled, any premium refund due to the insured shall be computed on a pro rata basis. However, the refund may be less than pro rata if the insurer has made a loan to the insured for the
purpose of payment of premiums for this policy.
The cancellation will be effective even if a refund has not been made or offered.
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and conditions of coverage.
All other terms, conditions and limitations of this Bond shall remain unchanged.
|
|
|
Authorized Representative
|
|
|
|
|
|
14-02-19726 (01/2013)
|
|
Page 1
|
|
|
|
|
|
|
|
|
|
|
|
FEDERAL INSURANCE COMPANY
|
|
|
|
|
|
|
|
Endorsement No. 10
|
|
|
|
|
|
|
|
Bond Number: 82341119
|
NAME OF ASSURED: HERCULES CAPITAL, INC.
REVISE ITEM 2. ENDORSEMENT
It is agreed that this Bond is amended by deleting
ITEM 2. in its entirety on the DECLARATIONS and substituting the following:
ITEM 2.
LIMITS OF LIABILITY-DEDUCTIBLE AMOUNTS:
If Not Covered is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE and any other reference to such
INSURING CLAUSE in this Bond shall be deemed to be deleted.
There shall be no deductible applicable to any loss under INSURING CLAUSE 1 sustained by any Investment Company.
|
|
|
|
|
|
|
|
|
INSURING CLAUSE
|
|
SINGLE LOSS
LIMIT OF LIABILITY
|
|
|
DEDUCTIBLE
AMOUNT
|
|
1. Employee
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
2. On Premises
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
3. In Transit
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
4. Forgery or Alteration
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
5. Extended Forgery
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
6. Counterfeit Money
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
7. Threats to Person
|
|
$
|
Not Covered
|
|
|
$
|
N/A
|
|
8. Computer System
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
9. Voice Initiated Funds Transfer Instruction
|
|
$
|
Not Covered
|
|
|
$
|
N/A
|
|
10. Uncollectible Items of Deposit
|
|
$
|
Not Covered
|
|
|
$
|
N/A
|
|
11. Audit Expense
|
|
$
|
Not Covered
|
|
|
$
|
N/A
|
|
12. Telefacsimile Instruction
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
13. Unauthorized Signature
|
|
$
|
1,250,000
|
|
|
$
|
50,000
|
|
This Endorsement applies to loss discovered after 12:01 a.m. on June 9, 2017.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
|
|
|
|
|
|
|
|
|
|
Date: June 8, 2017
|
|
|
|
By
|
|
|
|
|
|
|
|
|
Authorized Representative
|
|
|
|
|
|
|
|
|
|
|
ICAP Bond
|
|
|
Form 17-02-1582 (Ed. 5-98)
|
|
Page 1
|
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