e40v17g
[Letterhead of Fifth Street Finance Corp.]
March 16, 2009
VIA EDGAR
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
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Re: |
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Fifth Street Finance Corp.
Rule 17g-1(g) Fidelity Bond Filing |
Ladies and Gentlemen:
On behalf of Fifth Street Finance Corp. (the Company), enclosed herewith for filing,
pursuant to Rule 17g-1(g) under the Investment Company Act of 1940, are the following:
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copy of the fidelity bond covering the Company, which includes a
statement as to the period for which premiums have been paid; and |
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a Certificate of the Secretary of the Company 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. |
If you have any questions regarding this submission, please do not hesitate to call me at
(914) 286-6804.
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Very truly yours,
Fifth Street Finance Corp.
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/s/ Bernard D. Berman
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Bernard D. Berman |
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Executive Vice President and Secretary |
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Enclosures
CERTIFICATE OF SECRETARY
The undersigned, Bernard D. Berman, Executive Vice President and Secretary of Fifth Street
Finance Corp., a Delaware corporation (the Company), does hereby certify that:
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This certificate is being delivered to the Securities and Exchange
Commission (the SEC) in connection with the filing of the Companys 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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The undersigned is the duly elected, qualified and acting Secretary 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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Attached hereto as Exhibit A is a copy of the resolutions
approved by the Board of Directors of the Company, including a majority of the
Board 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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Premiums have been paid for the period January 2, 2009 to January 2,
2010. |
IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed this
16th day of March, 2009.
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/s/ Bernard. D. Berman
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Bernard D. Berman |
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Executive Vice President and Secretary |
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Exhibit A
Excerpt from the minutes of the
meeting of the Board of Directors
of Fifth Street Finance Corp. held
on January 12, 2009
Approval of Fidelity Bond
WHEREAS, Section 17(g) of the Investment Company Act of 1940, as amended (the
1940 Act), and Rule 17g-1(a) thereunder, requires a business development company
(BDC), such as the Company, to provide and maintain a bond which shall be issued
by a reputable fidelity insurance company, authorized to do business in the place
where the bond is issued, to protect the Company against larceny and embezzlement,
covering each officer and employee of the BDC who may singly, or jointly with
others, have access to the securities or funds of the BDC, either directly or
through authority to draw upon such funds of, or to direct generally, the
disposition of such securities, unless the officer or employee has such access
solely through his position as an officer or employee of a bank (each, a covered
person); and
WHEREAS, Rule 17g-1 specifies that the bond may be in the form of (i) an
individual bond for each covered person, or a schedule or blanket bond covering such
persons, (ii) a blanket bond which names the Company as the only insured (a single
insured bond), or (iii) a bond which names the Company and one or more
other parties as insureds (a joint insured bond), as permitted by Rule 17g-1;
and
WHEREAS, Rule 17g-1 requires that a majority of directors who are not
interested persons of the BDC, as such term is defined under the 1940 Act (the
Non-Interested Directors), approve periodically (but not less than once every 12
months) the reasonableness of the form and amount of the bond, with due
consideration to the value of the aggregate assets of the Company to which any
covered person may have access, the type and terms of the arrangements made for the
custody and safekeeping of such assets, and the nature of securities and other
investments to be held by the Company, and pursuant to factors contained in the Rule
which are described in the accompanying memorandum attached hereto; and
WHEREAS, under Rule 17g-1, the Company is required to make certain filings with
the SEC and give certain notices to each member of the Board of Directors in
connection with the bond, and designate an officer who shall make such filings and
give such notices;
NOW THEREFORE BE IT RESOLVED, that having considered the expected aggregate
value of the securities and funds of the Company to which officers or employees of
the Company may have access (either directly or through authority to draw upon such
funds or to direct generally the disposition of such
securities), the type and terms of the arrangements made for the custody of
such securities and funds, the nature of securities and other investments to be held
by the Company, the accounting procedures and controls of the Company, the nature
and method of conducting the operations of the Company, and the requirements of
Section 17(g) of the 1940 Act and Rule 17g-1 thereunder, it is determined that the
amount, type, form, premium and coverage, covering the officers and employees of the
Company and insuring the Company against loss from fraudulent or dishonest acts,
including larceny and embezzlement, issued by National Union Fire Insurance Company
of Pittsburgh, PA. having an aggregate coverage of no less than $750,000.00 and no
more than $5 million (the Fidelity Bond) is reasonable, and the Fidelity Bond be,
and hereby is, approved by the Board of Directors of the Company; and
FURTHER RESOLVED, that having considered the expected aggregate value of the
securities and funds of the Company to which officers or employees of the Company
may have access (either directly or through authority to draw upon such funds or to
direct generally the disposition of such securities), the type and terms of the
arrangements made for the custody of such securities and funds, the nature of
securities and other investments to be held by the Company, the accounting
procedures and controls of the Company, the nature and method of conducting the
operations of the Company, and the requirements of Section 17(g) of the 1940 Act and
Rule 17g-1 thereunder, it is determined that the amount, type, form, premium and
coverage, covering the officers and employees of the Company and insuring the
Company against loss from fraudulent or dishonest acts, including larceny and
embezzlement, issued by National Union Fire Insurance Company of Pittsburgh, PA.
having an aggregate coverage of no less than $750,000 and no more than $5 million is
reasonable, and the Fidelity Bond be, and hereby is, approved by a majority of the
Non-Interested Directors; and
FURTHER RESOLVED, that the officers of the Company be, and they hereby are,
authorized to take all appropriate actions, with the advice of legal counsel to the
Company, to provide and maintain the Fidelity Bond on behalf of the Company;
and
FURTHER RESOLVED, that the Chief Compliance Officer of the Company be and hereby is,
designated as the party responsible for making the necessary filings and giving the notices
with respect to such bond required by paragraph (g) of Rule 17g-1 under the 1940 Act.
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AIG EXECUTIVE LIABILITY SM
Insurance provided by the following member of American International Group, Inc. |
National Union Fire Insurance Company of Pittsburgh, Pa.
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POLICY NUMBER:
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01-426-86-30
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REPLACEMENT OF POLICY NUMBER : 00-552-81-28 |
INVESTMENT COMPANY BLANKET BOND
DECLARATIONS:
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ITEM 1.
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Name of Insured (herein called Insured):
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FIFTH STREET FINANCE CORP. |
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Principal Address:
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445 HAMILTON AVENUE
WHITE PLAINS, NY 10601 |
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ITEM 2. |
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Bond Period: from 12:01 a.m. January 2, 2009 to January 2, 2010 the effective date of the
termination or cancellation of this bond, standard time at the Principal Address as to each of said
dates. |
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ITEM 3. |
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Limit of Liability Subject to Sections 9, 10 and 12 hereof, |
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Limit of Liability/Deductible |
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Insuring Agreement (A)-Fidelity
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$5,000,000/$Nil |
Insuring Agreement (B)-Audit Expense
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$25,000/$5,000 |
Insuring Agreement (C)-On Premises
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$5,000,000/$50,000 |
Insuring Agreement (D)-In Transit
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$5,000,000/$50,000 |
Insuring Agreement (E)-Forgery & Alteration
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$5,000,000/$50,000 |
Insuring Agreement (F)-Securities
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$5,000,000/$50,000 |
Insuring Agreement (G)-Counterfeit Currency
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$5,000,000/$50,000 |
Insuring Agreement (H)-Stop Payment
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$25,000/$5,000 |
Insuring Agreement (I)-Uncollectible Items of Deposit
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$25,000/$5,000 |
Insuring Agreement (J)-Computer Systems
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$5,000,000/$50,000 |
Insuring Agreement (K)-Unauthorized Signatures
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$25,000/$5,000 |
Insuring Agreement (L)- Automated Phone Systems
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$5,000,000/$50,000 |
Insuring Agreement (M)-Telefacsimile Transfer
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$5,000,000/$50,000 |
If Not Covered is inserted above opposite any specified Insuring Agreement or
Coverage, such Insuring Agreement or Coverage and any other reference thereto in this
bond shall be deemed to be deleted therefrom.
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ITEM 4. |
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Offices or Premises Covered-Offices acquired or established subsequent to the effective
date of this bond are covered according to the terms of General Agreement A. All the
Insureds offices or premises in existence at the time this bond becomes effective are covered
under this bond except the offices or premises located as follows: No Exceptions |
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ITEM 5. |
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The liability of the Underwriter is subject to the terms of the following riders
attached thereto: Rider No. # 1, #2, #3, #4,#5, #6,#7, #8, #9 |
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ITEM 6. |
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The Insured by the acceptance of this bond gives to the Underwriter terminating or
canceling prior bond(s) or policy(ies) No.(s) 00-552-81-28 such termination or cancellation to
be effective as of the time this bond becomes effective. |
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Authorized Representative |
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MARSH USA, INC.
1166 AVENUE OF THE AMERICAS
NEW YORK, NY 10036
IN WITNESS WHEREOF, the Insurer has caused this policy to be signed on the Declarations by its
President, a Secretary and its duly authorized representative.
AUTHORIZED REPRESENTATIVE
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COUNTERSIGNATURE
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DATE
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COUNTERSIGNED AT |
MARSH USA, INC.
1166 AVENUE OF THE AMERICAS
NEW YORK, NY 10036-3712
AIG EXECUTIVE LIABILITY SM
Insurance provided by the following member of American International Group, Inc.
National Union Fire Insurance Company of Pittsburgh, Pa.
INVESTMENT COMPANY BLANKET BOND
The Underwriter, in consideration of an agreed premium, and subject to the Declarations made a part
hereof, the General Agreements, Conditions and Limitations and other terms of this bond, agrees
with the Insured, in accordance with the Insuring Agreements hereof to which an amount of insurance
is applicable as set forth in Item 3 of the Declarations and with respect to loss sustained by the
Insured at any time but discovered during the Bond Period, to indemnify and hold harmless the
Insured for:
INSURING AGREEMENTS
Loss resulting from any dishonest or fraudulent act(s), including Larceny or Embezzlement committed
by an Employee, committed anywhere and whether committed alone or in collusion with others,
including loss of Property resulting from such acts of an Employee, which Property is held by the
Insured for any purpose or in any capacity and whether so held gratuitously or not and whether or
not the Insured is liable therefor.
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean only dishonest or
fraudulent act(s) committed by such Employee with the manifest intent:
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to cause the Insured to sustain such loss; and |
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to obtain financial benefit for the Employee, or for any other person or organization
intended by the Employee to receive such benefit, other than salaries, commissions, fees,
bonuses, promotions, awards, profit sharing, pensions or other employee benefits earned in
the normal course of employment. |
Expense incurred by the Insured for that part of the costs of audits or examinations required by
any governmental regulatory authority to be conducted either by such authority or by an independent
accountant by reason of the discovery of loss sustained by the Insured through any dishonest or
fraudulent act(s), including Larceny or Embezzlement of any of the Employees. The total liability
of the Underwriter for such expense by reason of such acts of any Employee or in which such
Employee is concerned or implicated or with respect to any one audit or examination is limited to
the amount stated opposite Audit Expense in Item 3 of the Declarations; it being understood,
however, that such expense shall be deemed to be a loss sustained by the Insured through any
dishonest or fraudulent act(s), including Larceny or Embezzlement of one or more of the Employees
and the liability under this paragraph shall be in addition to the Limit of liability stated in
Insuring Agreement (A) in Item 3 of the Declarations.
Loss of Property (occurring with or without negligence or violence) through robbery, burglary,
Larceny, theft, holdup, or other fraudulent means, misplacement, mysterious unexplainable
disappearance, damage thereto or destruction thereof, abstraction or removal from the possession,
custody or control of the Insured, and loss of subscription, conversion, redemption or deposit
privileges through the misplacement or loss of Property, while the Property is (or is supposed or
believed by the Insured to be) lodged or deposited within any offices or premises located anywhere,
except in an office listed in Item 4 of the Declarations or amendment thereof or in the mail or
with a carrier for hire other than an armored motor
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vehicle company, for the purpose of transportation.
Offices and Equipment
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Loss of or damage to, furnishings, fixtures, stationery, supplies or equipment, within
any of the Insureds offices covered under this bond caused by Larceny or theft in, or by
burglary, robbery or holdup of such office, or attempt thereat, or by vandalism or
malicious mischief; or |
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loss through damage to any such office by Larceny or theft in, or by burglary, robbery
or holdup of such office or attempt thereat, or to the interior of any such office by
vandalism or malicious mischief provided, in any event, that the Insured is the owner of
such offices, furnishings, fixtures, stationery, supplies or equipment or is legally liable
for such loss or damage, always excepting, however, all loss or damage through fire. |
Loss of Property (occurring with or without negligence or violence) through robbery, Larceny,
theft, holdup, misplacement, mysterious unexplainable disappearance, being lost or otherwise made
away with, damage thereto or destruction thereof, and loss of subscription, conversion, redemption
or deposit privileges through the misplacement or loss of Property, while the Property is in
transit anywhere in the custody of any person or persons acting as messenger, except while in the
mail or with a carrier for hire, other than an armored motor vehicle company, for the purpose of
transportation, such transit to begin immediately upon receipt of such Property by the transporting
person or persons, and to end immediately upon delivery thereof at destination.
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FORGERY OR ALTERATION |
Loss through FORGERY or ALTERATION of, on or in any bills of exchange, checks, drafts, acceptances,
certificates of deposit. promissory notes, or other written promises, orders or directions to pay
sums certain in money, due bills, money orders, warrants, orders upon public treasuries, letters
of credit, written instructions, advices or applications directed to the Insured, authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or Property, which instructions
or advices or applications purport to have been signed or endorsed by any customer of the Insured,
shareholder or subscriber to shares, whether certificated or uncertificated, of any Investment
Company or by any financial or banking institution or stockbroker but which instructions, advices
or applications either bear the forged signature or endorsement or have been altered without the
knowledge and consent of such customer, shareholder or subscriber to shares, whether certificated
or uncertificated, of an Investment Company, financial or banking institution or stockbroker,
withdrawal orders or receipts for the withdrawal of funds or Property, or receipts or certificates
of deposit for Property and bearing the name of the Insured as issuer, or of another Investment
Company for which the Insured acts as agent, excluding, however, any loss covered under Insuring
Agreement (F) hereof whether or not coverage for Insuring Agreement (F) is provided for in the
Declarations of this bond.
Any check or draft (a) made payable to a fictitious payee and endorsed in the name of such
fictitious payee or (b) procured in a transaction with the maker or drawer thereof or with one
acting as an agent of such maker or drawer or anyone impersonating another and made or drawn
payable to the one so impersonated and endorsed by anyone other than the one impersonated, shall be
deemed to be forged as to such endorsement.
Mechanically reproduced facsimile signatures are treated the same as handwritten signatures.
Loss sustained by the Insured, including loss sustained by reason of a violation of the
constitution, by-laws, rules or regulations of any Self Regulatory Organization of which the
Insured is a member or which would have been imposed upon the Insured by the constitution,
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by-laws, rules or regulations of any Self Regulatory Organization if the Insured had been a member
thereof,
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through the Insureds having, in good faith and in the course of business, whether for
its own account or for the account of others, in any representative, fiduciary, agency or
any other capacity, either gratuitously or otherwise, purchased or otherwise acquired,
accepted or received, or sold or delivered, or given any value, extended any credit or
assumed any liability, on the faith of, or otherwise acted upon, any securities, documents
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counterfeited, or |
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forged as to the signature of any maker, drawer, issuer, endorser, assignor,
lessee, transfer agent or registrar, acceptor, surety or guarantor or as to the
signature of any person signing in any other capacity, or |
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raised or otherwise altered, or lost, or stolen, or |
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through the Insureds having, in good faith and in the course of business, guaranteed
in writing or witnessed any signatures whether for valuable consideration or not and
whether or not such guaranteeing or witnessing is ultra vires the Insured, upon any
transfers, assignments, bills of sale, powers of attorney, guarantees, endorsements or
other obligations upon or in connection with any securities, documents or other written
instruments and which pass or purport to pass title to such securities, documents or other
written instruments; EXCLUDING, losses caused by FORGERY or ALTERATION of, on or in those
instruments covered under Insuring Agreement (E) hereof. |
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Securities, documents or other written instruments shall be deemed to mean original
(including original counterparts) negotiable or non-negotiable agreements which in and of
themselves represent an equitable interest, ownership, or debt, including an assignment
thereof which instruments are in the ordinary course of business, transferable by delivery
of such agreements with any necessary endorsement or assignment. |
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The word counterfeited as used in this Insuring Agreement shall be deemed to mean any
security, document or other written instrument which is intended to deceive and to be taken
for an original. |
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Mechanically produced facsimile signatures are treated the same as handwritten signatures. |
Loss through the receipt by the Insured, in good faith, of any counterfeited money orders or
altered paper currencies or coin of the United States of America or Canada issued or purporting to
have been issued by the United States of America or Canada or issued pursuant to a United States of
America or Canadian statute for use as currency.
Loss against any and all sums which the Insured shall become obligated to pay by reason of the
Liability imposed upon the Insured by law for damages:
For having either complied with or failed to comply with any written notice of any customer,
shareholder or subscriber of the Insured or any Authorized Representative of such customer,
shareholder or subscriber to stop payment of any check or draft made or drawn by such
customer, shareholder or subscriber or any Authorized Representative of such customer,
shareholder or subscriber, or
For having refused to pay any check or draft made or drawn by any customer, shareholder or
subscriber of the Insured or any Authorized Representative of such customer, shareholder or
subscriber.
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(I) |
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UNCOLLECTIBLE ITEMS OF DEPOSIT |
Loss resulting from payments of dividends or fund shares, or withdrawals permitted from any
customers, shareholders or subscribers account based upon Uncollectible Items of Deposit of a
customer, shareholder or subscriber credited by the Insured or the Insureds agent to such
customers, shareholders or subscribers Mutual Fund Account; or
loss resulting from any Item of Deposit processed through an Automated Clearing House which is
reversed by the customer, shareholder or subscriber and deemed uncollectible by the Insured.
Loss includes dividends and interest accrued not to exceed 15% of the Uncollectible Items which are
deposited.
This Insuring Agreement applies to all Mutual Funds with exchange privileges if all Fund(s) in
the exchange program are insured by a National Union Fire Insurance Company of Pittsburgh, PA for
Uncollectible Items of Deposit. Regardless of the number of transactions between Fund(s), the
minimum number of days of deposit within the Fund(s) before withdrawal as declared in the Fund(s)
prospectus shall begin from the date a deposit was first credited to any Insured Fund(s).
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GENERAL AGREEMENTS
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A. |
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ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION OR MERGER-NOTICE |
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If the Insured shall, while this bond is in force, establish any additional office or
offices, such office or offices shall be automatically covered hereunder from the dates of
their establishment, respectively. No notice to the Underwriter of an increase during any
premium period in the number of offices or in the number of Employees at any of the
offices covered hereunder need be given and no additional premium need be paid for the
remainder of such premium period. |
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2. |
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If an Investment Company, named as Insured herein, shall, while this bond is in
force, merge or consolidate with, or purchase the assets of another institution, coverage
for such acquisition shall apply automatically from the date of acquisition. The Insured
shall notify the Underwriter of such acquisition within 60 days of said date, and an
additional premium shall be computed only if such acquisition involves additional offices
or employees. |
No statement made by or on behalf of the Insured, whether contained in the application or
otherwise, shall be deemed to be a warranty of anything except that it is true to the best of the
knowledge and belief of the person making the statement.
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C. |
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COURT COSTS AND ATTORNEYS FEES
(Applicable to all Insuring Agreements or Coverages now or hereafter forming part of this
bond) |
The Underwriter will indemnify the Insured against court costs and reasonable attorneys fees
incurred and paid by the Insured in defense, whether or not successful, whether or not fully
litigated on the merits and whether or not settled of any suit or legal proceeding brought against
the Insured to enforce the Insureds liability or alleged liability on account of any loss, claim
or damage which, if established against the Insured, would constitute a loss sustained by the
Insured covered under the terms of this bond provided, however, that with respect to Insuring
Agreement (A) this indemnity shall apply only in the event that
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an Employee admits to being guilty of any dishonest or fraudulent act(s), including
Larceny or Embezzlement; or |
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an Employee is adjudicated to be guilty of any dishonest or fraudulent act(s),
including Larceny or Embezzlement; |
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in the absence of (1) or (2) above an arbitration panel agrees, after a review of an
agreed statement of facts, that an Employee would be found guilty of dishonesty if such
Employee were prosecuted. |
The Insured shall promptly give notice to the Underwriter of any such suit or legal proceeding and
at the request of the Underwriter shall furnish it with copies of all pleadings and other papers
therein. At the Underwriters election the Insured shall permit the Underwriter to conduct the
defense of such suit or legal proceeding, in the Insureds name, through attorneys of the
Underwriters selection. In such event, the Insured shall give all reasonable information and
assistance which the Underwriter shall deem necessary to the proper defense of such suit or legal
proceeding.
If the amount of the Insureds liability or alleged liability is greater than the amount
recoverable under this bond, or if a Deductible Amount is applicable, or both, the liability of the
Underwriter under this General Agreement is limited to the proportion of court costs and attorneys
fees incurred and paid by the Insured or by the Underwriter that the amount recoverable under this
bond bears to the total of such amount plus the amount which is not so recoverable. Such indemnity
shall be in
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addition to the Limit of Liability for the applicable Insuring Agreement or Coverage.
Acts of an Employee, as defined in this bond, are covered under Insuring Agreement (A) only while
the Employee is in the Insureds employ. Should loss involving a former Employee of the Insured be
discovered subsequent to the termination of employment, coverage would still apply under Insuring
Agreement (A) if the direct proximate cause of the loss occurred while the former Employee
performed duties within the scope of his/her employment.
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THE FOREGOING INSURING AGREEMENTS AND
GENERAL AGREEMENTS ARE SUBJECT TO
THE FOLLOWING CONDITIONS
AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following terms, as used in this bond, shall have the respective meanings stated in this
Section:
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any of the Insureds officers, partners, or employees, and |
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(2) |
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any of the officers or employees of any predecessor of the Insured whose
principal assets are acquired by the Insured by consolidation or merger with, or
purchase of assets or capital stock of such predecessor. and |
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(3) |
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attorneys retained by the Insured to perform legal services for the Insured
and the employees of such attorneys while such attorneys or the employees of such
attorneys are performing such services for the Insured, and |
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guest students pursuing their studies or duties in any of the Insureds
offices, and |
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(5) |
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directors or trustees of the Insured, the investment advisor, underwriter
(distributor), transfer agent, or shareholder accounting record keeper, or
administrator authorized by written agreement to keep financial and/or other required
records, but only while performing acts coming within the scope of the usual duties
of an officer or employee or while acting as a member of any committee duly elected or
appointed to examine or audit or have custody of or access to the Property of the
Insured, and |
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(6) |
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any individual or individuals assigned to perform the usual duties of an
employee within the premises of the Insured, by contract, or by any agency furnishing
temporary personnel on a contingent or part-time basis, and |
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each natural person, partnership or corporation authorized by written
agreement with the Insured to perform services as electronic data processor of checks
or other accounting records of the Insured, but excluding any such processor who acts
as transfer agent or in any other agency capacity in issuing checks, drafts or
securities for the Insured, unless included under Sub-section (9) hereof, and |
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(8) |
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those persons so designated in Section 15, Central Handling of Securities,
and |
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(9) |
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any officer, partner or Employee of |
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an investment advisor, |
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an underwriter (distributor), |
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a transfer agent or shareholder accounting record-keeper, or |
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d) |
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an administrator authorized by written agreement to keep financial
and/or other required records, |
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for an Investment Company named as Insured while performing acts coming within the
scope of the usual duties of an officer or Employee of any Investment Company named as
Insured herein, or while acting as a member of any committee duly elected or appointed
to examine or audit or have custody of or access to the Property of any such Investment
Company, provided that only Employees or partners of a transfer agent, shareholder
accounting record-keeper or administrator which is an affiliated |
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person as defined in the Investment Company Act of 1940, of an Investment Company named
as Insured or is an affiliated person of the adviser, underwriter or administrator of
such Investment Company, and which is not a bank, shall be included within the
definition of Employee. |
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Each employer of temporary personnel or processors as set forth in Sub-Sections (6) and
of Section 1(a) and their partners, officers and employees shall collectively be deemed
to be one person for all the purposes of this bond, excepting, however, the last
paragraph of Section 13. |
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Brokers, or other agents under contract or representatives of the same general character
shall not be considered Employees. |
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(b) |
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Property means money (i.e.. currency, coin, bank notes, Federal Reserve notes),
postage and revenue stamps, U.S. Savings Stamps, bullion, precious metals of all kinds and
in any form and articles made therefrom, jewelry, watches, necklaces, bracelets, gems,
precious and semi-precious stones, bonds, securities, evidences of debts, debentures,
scrip, certificates, interim receipts, warrants, rights, puts, calls, straddles, spreads,
transfers, coupons, drafts, bills of exchange, acceptances, notes, checks, withdrawal
orders, money orders, warehouse receipts, bills of lading, conditional sales contracts,
abstracts of title, insurance policies, deeds, mortgages under real estate and/or chattels
and upon interests therein, and assignments of such policies, mortgages and instruments,
and other valuable papers, including books of account and other records used by the Insured
in the conduct of its business, and all other instruments similar to or in the nature of
the foregoing including Electronic Representations of such instruments enumerated above
(but excluding all data processing records) in which the Insured has an interest or in
which the Insured acquired or should have acquired an interest by reason of a predecessors
declared financial condition at the time of the Insureds consolidation or merger with, or
purchase of the principal assets of, such predecessor or which are held by the Insured for
any purpose or in any capacity and whether so held by the Insured for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the Insured is liable
therefor. |
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(c) |
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Forgery means the signing of the name of another with intent to deceive; it does not
include the signing of ones own name with or without authority, in any capacity, for any
purpose. |
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(d) |
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Larceny and Embezzlement as it applies to any named Insured means those acts as set
forth in Section 37 of the Investment Company Act of 1940. |
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(e) |
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Items of Deposit means any one or more checks and drafts. Items of Deposit shall not
be deemed uncollectible until the Insureds collection procedures have failed. |
SECTION 2. EXCLUSIONS
THIS BOND DOES NOT COVER:
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(a) |
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loss effected directly or indirectly by means of forgery or alteration of, on or in any
instrument, except when covered by Insuring Agreement (A), (E), (F) or (G). |
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(b) |
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loss due to riot or civil commotion outside the United States of America and Canada; or
loss due to military, naval or usurped power, war or insurrection unless such loss occurs
in |
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transit in the circumstances recited in Insuring Agreement (D), and unless, when such
transit was initiated, there was no knowledge of such riot, civil commotion, military,
naval or usurped power, war or insurrection on the part of any person acting for the
Insured in initiating such transit. |
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(c) |
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loss, in time of peace or war, directly or indirectly caused by or resulting from the
effects of nuclear fission or fusion or radioactivity; provided, however, that this
paragraph shall not apply to loss resulting from industrial uses of nuclear energy. |
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(d) |
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loss resulting from any wrongful act or acts of any person who is a member of the
Board of Directors of the Insured or a member of any equivalent body by whatsoever name
known unless such person is also an Employee or an elected official, partial owner or
partner of the Insured in some other capacity, nor, in any event, loss resulting from the
act or acts of any person while acting in the capacity of a member of such Board or
equivalent body. |
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(e) |
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loss resulting from the complete or partial non-payment of, or default upon, any loan
or transaction in the nature of, or amounting to, a loan made by or obtained from the
Insured or any of its partners, directors or Employees, whether authorized or unauthorized
and whether procured in good faith or through trick, artifice, fraud or false pretenses.
unless such loss is covered under Insuring Agreement (A), (E) or (F). |
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(f) |
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loss resulting from any violation by the Insured or by any Employee |
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(1) |
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of law regulating (a) the issuance, purchase or sale of securities, (b)
securities transactions upon Security Exchanges or over the counter market, (c)
Investment Companies, or (d) Investment Advisors, or |
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(2) |
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of any rule or regulation made pursuant to any such law, unless such loss, in
the absence of such laws, rules or regulations, would be covered under Insuring
Agreements (A) or (E). |
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(g) |
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loss of Property or loss of privileges through the misplacement or loss of Property as
set forth in Insuring Agreement (C) or (D) while the Property is in the custody of any
armored motor vehicle company, unless such loss shall be in excess of the amount recovered
or received by the Insured under (a) the Insureds contract with said armored motor vehicle
company, (b) insurance carried by said armored motor vehicle company for the benefit of
users of its service, and (c) all other insurance and indemnity in force in whatsoever form
carried by or for the benefit of users of said armored motor vehicle companys service, and
then this bond shall cover only such excess. |
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(h) |
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potential income, including but not limited to interest and dividends, not realized by
the Insured because of a loss covered under this bond, except as included under Insuring
Agreement (I). |
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(i) |
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all damages of any type for which the Insured is legally liable, except direct
compensatory damages arising from a loss covered under this bond. |
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(j) |
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loss through the surrender of Property away from an office of the Insured as a result
of a threat |
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(1) |
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to do bodily harm to any person, except loss of Property in transit in the
custody of any person acting as messenger provided that when such transit was
initiated there was no knowledge by the Insured of any such threat, or |
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(2) |
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to do damage to the premises or Property of the Insured, except when covered
under Insuring Agreement (A). |
9
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(k) |
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all costs, fees and other expenses incurred by the Insured in establishing the
existence of or amount of loss covered under this bond unless such indemnity is provided
for under Insuring Agreement (B). |
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(l) |
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loss resulting from payments made or withdrawals from the account of a customer of the
Insured, shareholder or subscriber to shares involving funds erroneously credited to such
account, unless such payments are made to or withdrawn by such depositor or representative
of such person, who is within the premises of the drawee bank of the Insured or within the
office of the Insured at the time of such payment or withdrawal or unless such payment is
covered under Insuring Agreement (A). |
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(m) |
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any loss resulting from Uncollectible Items of Deposit which are drawn from a financial
institution outside the fifty states of the United States of America, District of Columbia,
and territories and possessions of the United States of America, and Canada. |
SECTION 3. ASSIGNMENT OF RIGHTS
This bond does not afford coverage in favor of any Employers of temporary personnel or of
processors as set forth in sub-sections (6) and (7) of Section 1(a) of this bond, as aforesaid, and
upon payment to the Insured by the Underwriter on account of any loss through dishonest or
fraudulent act(s) including Larceny or Embezzlement committed by any of the partners, officers or
employees of such Employers, whether acting alone or in collusion with others, an assignment of
such of the Insureds rights and causes of action as it may have against such Employers by reason
of such acts so committed shall, to the extent of such payment, be given by the Insured to the
Underwriter, and the Insured shall execute all papers necessary to secure to the Underwriter the
rights herein provided for.
SECTION 4. LOSS -NOTICE -PROOF-LEGAL PROCEEDINGS
This bond is for the use and benefit only of the Insured named in the Declarations and the
Underwriter shall not be liable hereunder for loss sustained by anyone other than the Insured
unless the Insured, in its sole discretion and at its option, shall include such loss in the
Insureds proof of loss. At the earliest practicable moment after discovery of any loss hereunder
the Insured shall give the Underwriter written notice thereof and shall also within six months
after such discovery furnish to the Underwriter affirmative proof of loss with full particulars.
If claim is made under this bond for loss of securities or shares, the Underwriter shall not be
liable unless each of such securities or shares is identified in such proof of loss by a
certificate or bond number or, where such securities or shares are uncertificated, by such
identification means as agreed to by the Underwriter. The Underwriter shall have thirty days after
notice and proof of loss within which to investigate the claim, but where the loss is clear and
undisputed, settlement shall be made within forty-eight hours; and this shall apply
notwithstanding the loss is made up wholly or in part of securities of which duplicates may be
obtained. Legal proceedings for recovery of any loss hereunder shall not be brought prior to the
expiration of sixty days after such proof of loss is filed with the Underwriter nor after the
expiration of twenty-four months from the discovery of such loss, except that any action or
proceeding to recover hereunder on account of any judgment against the Insured in any suit
mentioned in General Agreement C or to recover attorneys fees paid in any such suit, shall be
begun within twenty-four months from the date upon which the judgment in such suit shall become
final. If any limitation embodied in this bond is prohibited by any law controlling the
construction hereof, such limitation shall be deemed to be amended so as to be equal to the
minimum period of limitation permitted by such law.
Discovery occurs when the Insured
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(a) |
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becomes aware of facts, or |
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(b) |
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receives written notice of an actual or potential claim by a third party which
alleges that the Insured is liable under circumstance |
which would cause a reasonable person to assume that a loss covered by the bond has been or will be
incurred even though the exact amount or details of loss may not be then known.
SECTION 5. VALUATION OF PROPERTY
The value of any Property, except books of accounts or other records used by the Insured in the
conduct of its business, for the loss of which a claim shall be made hereunder, shall be determined
by the average market value of such Property on the business day next preceding the discovery of
such loss; provided, however, that the value of any Property replaced by the Insured prior to the
payment of claim therefor shall be the actual market value at the time of replacement; and further
provided that in case of a loss or misplacement of interim certificates, warrants, rights, or other
securities, the production which is necessary to the exercise of subscription, conversion,
redemption or deposit privileges, the value thereof shall be the market value of such privileges
immediately preceding the expiration thereof if said loss or misplacement is not discovered until
after their expiration. If no market price is quoted for such Property or for such privileges, the
value shall be fixed by agreement between the parties or by arbitration.
In case of any loss or damage to Property consisting of books of accounts or other records used by
the Insured in the conduct of its business, the Underwriter shall be liable under this bond only if
such books or records are actually reproduced and then for not more than the cost of blank books,
blank pages or other materials plus the cost of labor for the actual transcription or copying of
data which shall have been furnished by the Insured in order to reproduce such books and other
records.
SECTION 6. VALUATION OF PREMISES AND FURNISHINGS
In case of damage to any office of the Insured, or loss of or damage to the furnishings, fixtures,
stationery, supplies, equipment, safes or vaults therein, the Underwriter shall not be liable for
more than the actual cash value thereof, or for more than the actual cost of their replacement or
repair. The Underwriter may, at its election, pay such actual cash value or make such replacement
or repair. If the Underwriter and the Insured cannot agree upon such cash value or such cost of
replacement or repair, such shall be determined by arbitration.
SECTION 7. LOST SECURITIES
If the Insured shall sustain a loss of securities the total value of which is in excess of the
limit stated in Item 3 of the Declarations of this bond, the liability of the Underwriter shall be
limited to payment for, or duplication of, securities having value equal to the limit stated in
Item 3 of the Declarations of this bond.
If the Underwriter shall make payment to the Insured for any loss of securities, the Insured shall
thereupon assign to the Underwriter all of the Insureds rights, title and interests in and to said
securities.
With respect to securities the value of which do not exceed the Deductible Amount (at the time of
the discovery of the loss) and for which the Underwriter may at its sole discretion and option and
at the request of the Insured issue a Lost Instrument Bond or Bonds to effect replacement thereof,
the Insured will pay the usual premium charged therefor and will indemnify the Underwriter against
all loss or expense that the Underwriter may sustain because of the issuance of such Lost
Instrument Bond or Bonds.
With respect to securities the value of which exceeds the Deductible Amount (at the time of
discovery of the loss) and for which the Underwriter may issue or arrange for the issuance of a
Lost Instrument Bond or Bonds to effect replacement thereof, the Insured agrees that it will pay as
premium therefor a proportion of the usual premium charged therefor, said proportion being equal to
the percentage that the Deductible Amount bears to the value of the securities upon discovery of
11
the loss, and that it will indemnify the issuer of said Lost Instrument Bond or Bonds against all
loss and expense that is not recoverable from the Underwriter under the terms and conditions of
this INVESTMENT COMPANY BLANKET BOND subject to the Limit of Liability hereunder.
SECTION 8. SALVAGE
In case of recovery, whether made by the Insured or by the Underwriter, on account of any loss in
excess of the Limit of Liability hereunder plus the Deductible Amount applicable to such loss from
any source other than suretyship, insurance, reinsurance, security or indemnity taken by or for the
benefit of the Underwriter, the net amount of such recovery, less the actual costs and expenses of
making same, shall be applied to reimburse the Insured in full for the excess portion of such loss,
and the remainder, if any, shall be paid first in reimbursement of the Underwriter and thereafter
in reimbursement of the Insured for that part of such loss within the Deductible Amount. The
Insured shall execute all necessary papers to secure to the Underwriter the rights provided for
herein.
SECTION 9. NON-REDUCTION AND NON- ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
At all times prior to termination hereof this bond shall continue in force for the limit stated in
the applicable sections of Item 3 of the Declarations of this bond notwithstanding any previous
loss for which the Underwriter may have paid or be liable to pay hereunder; PROVIDED, however, that
regardless of the number of years this bond shall continue in force and the number of premiums
which shall be payable or paid, the liability of the Underwriter under this bond with respect to
all loss resulting from
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(a) |
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any one act of burglary, robbery or holdup, or attempt thereat, in which no Partner or
Employee is concerned or implicated shall be deemed to be one loss, or |
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(b) |
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any one unintentional or negligent act on the part of any one person resulting in
damage to or destruction or misplacement of Property, shall be deemed to be one loss, or |
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(c) |
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all wrongful acts, other than those specified in (a) above, of any one person shall be
deemed to be one loss, or |
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(d) |
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all wrongful acts, other than those specified in (a) above, of one or more persons
(which dishonest act(s) or act(s) of Larceny or Embezzlement include, but are not limited
to, the failure of an Employee to report such acts of others) whose dishonest act or acts
intentionally or unintentionally, knowingly or unknowingly, directly or indirectly, aid or
aids in any way, or permits the continuation of, the dishonest act or acts of any other
person or persons shall be deemed to be one loss with the act or acts of the persons aided,
or |
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(e) |
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any one casualty or event other than those specified in (a), (b), (c) or (d) preceding,
shall be deemed to be one loss, and |
shall be limited to the applicable Limit of Liability stated in Item 3 of the Declarations of this
bond irrespective of the total amount of such loss or losses and shall not be cumulative in amounts
from year to year or from period to period.
Sub-section (c) is not applicable to any situation to which the language of sub-section (d)
applies.
SECTION 10. LIMIT OF LIABILITY
With respect to any loss set forth in the PROVIDED clause of Section 9 of this bond which is
recoverable or recovered in whole or in part under any other bonds or policies issued by the
Underwriter to the Insured or to any predecessor in interest of the Insured and terminated or
cancelled or allowed to expire and in which the period for discovery has not expired at the time
any such loss thereunder is discovered, the total liability of the
12
Underwriter under this bond and under other bonds or policies shall not exceed, in the aggregate,
the amount carried hereunder on such loss or the amount available to the Insured under such other
bonds or policies, as limited by the terms and conditions thereof, for any such loss if the latter
amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured shall hold, as indemnity against any loss covered hereunder, any valid and
enforceable insurance or suretyship, the Underwriter shall be liable hereunder only for such amount
of such loss which is in excess of the amount of such other insurance or suretyship, not exceeding,
however, the Limit of Liability of this bond applicable to such loss.
SECTION 12. DEDUCTIBLE
The Underwriter shall not be liable under any of the Insuring Agreements of this bond on account of
loss as specified, respectively, in sub-sections (a), (b), (c), (d) and (e) of Section 9,
NON-REDUCTION AND NON- ACCUMULATION OF LIABILITY AND TOTAL LIABILITY, unless the amount of such
loss, after deducting the net amount of all reimbursement and/or recovery obtained or made by the
Insured, other than from any bond or policy of insurance issued by an insurance company and
covering such loss, or by the Underwriter on account thereof prior to payment by the Underwriter of
such loss, shall exceed the Deductible Amount set forth in Item 3 of the Declarations hereof
(herein called Deductible Amount) and then for such excess only, but in no event for more than the
applicable Limit of Liability stated in Item 3 of the Declarations.
The Insured will bear, in addition to the Deductible Amount, premiums on Lost Instrument Bonds as
set forth in Section 7.
There shall be no deductible applicable to any loss under Insuring Agreement A sustained by any
Investment Company named as Insured herein.
SECTION 13. TERMINATION
The Underwriter may terminate this bond as an entirety by furnishing written notice specifying the
termination date which cannot be prior to 60 days after the receipt of such written notice by each
Investment Company named as Insured and the Securities and Exchange Commission, Washington, D.C.
The Insured may terminate this bond as an entirety by furnishing written notice to the Underwriter.
When the Insured cancels, the Insured shall furnish written notice to the Securities and Exchange
Commission, Washington. D.C. prior to 60 days before the effective date of the termination. The
Underwriter shall notify all other Investment Companies named as Insured of the receipt of such
termination notice and the termination cannot be effective prior to 60 days after receipt of
written notice by all other Investment Companies. Premiums are earned until the termination date as
set forth herein.
This Bond will terminate as to any one Insured immediately upon taking over of such Insured by a
receiver or other liquidator or by State or Federal officials, or immediately upon the filing of a
petition under any State or Federal statute relative to bankruptcy or reorganization of the
Insured, or assignment for the benefit of creditors of the Insured. or immediately upon such
Insured ceasing to exist, whether through merger into another entity, or by disposition of all of
its assets.
The Underwriter shall refund the unearned premium computed at short rates in accordance with the
standard short rate cancellation tables if terminated by the Insured or pro rata if terminated for
any other reason.
This Bond shall terminate
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(a) |
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as to any Employee as soon as any partner, officer or supervisory Employee of the
Insured, who is not in collusion with such Employee, shall learn of any dishonest or
fraudulent act(s), including Larceny or Embezzlement on the part of such Employee without
prejudice to the loss of any Property then in transit in the custody of such Employee
(See Section 16[d]), or |
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(b) |
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as to any Employee 60 days after |
13
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receipt by each Insured and by the Securities and Exchange Commission of a written notice
from the Underwriter of its desire to terminate this bond as to such Employee, or |
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(c) |
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as to any person, who is a partner, officer or employee of any Electronic Data
Processor covered under this bond, from and after the time that the Insured or any
partner or officer thereof not in collusion with such person shall have knowledge or
information that such person has committed any dishonest or fraudulent act(s), including
Larceny or Embezzlement in the service of the Insured or otherwise, whether such act be
committed before or after the time this bond is effective. |
SECTION 14. RIGHTS AFTER TERMINATION OR CANCELLATION
At any time prior to the termination or cancellation of this bond as an entirety, whether by the
Insured or the Underwriter, the Insured may give to the Underwriter notice that it desires under
this bond an additional period of 12 months within which to discover loss sustained by the Insured
prior to the effective date of such termination or cancellation and shall pay an additional premium
therefor.
Upon receipt of such notice from the Insured, the Underwriter shall give its written consent
thereto; provided, however, that such additional period of time shall terminate immediately;
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(a) |
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on the effective date of any other insurance obtained by the Insured, its successor
in business or any other party, replacing in whole or in part the insurance afforded by
this bond, whether or not such other insurance provides coverage for loss sustained prior
to its effective date, or |
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(b) |
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upon takeover of the Insureds business by any State or Federal official or agency,
or by any receiver or liquidator, acting or appointed for this purpose |
without the necessity of the Underwriter giving notice of such termination. In the event that such
additional period of time is terminated, as provided above, the Underwriter shall refund any
unearned premium.
The right to purchase such additional period for the discovery of loss may not be exercised by any
State or Federal official or agency, or by any receiver or liquidator, acting or appointed to take
over the Insureds business for the operation or for the liquidation thereof or for any other
purpose.
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities included in the systems for the central handling of securities established and
maintained by Depository Trust Company, Midwest Depository Trust Company, Pacific Securities
Depository Trust Company, and Philadelphia Depository Trust Company, hereinafter called
Corporations, to the extent of the Insureds interest therein as effective by the making of
appropriate entries on the books and records of such Corporations shall be deemed to be Property.
The words Employee and Employees shall be deemed to include the officers, partners, clerks and
other employees of the New York Stock Exchange, Boston Stock Exchange, Midwest Stock Exchange,
Pacific Stock Ex- change and Philadelphia Stock Exchange, hereinafter called Exchanges, and of the
above named Corporations, and of any nominee in whose name is registered any security included
within the systems for the central handling of securities established and maintained by such
Corporations, and any employee of any recognized service company, while such officers, partners,
clerks and other employees and employees of service companies perform services for such
Corporations in the operation of such systems. For the purpose of the above definition a recognized
service company shall be any company providing clerks or other personnel to said Exchanges or
Corporation on a contract basis.
14
The Underwriter shall not be liable on account of any loss(es) in connection with the central
handling of securities within the systems established and maintained by such Corporations, unless
such loss(es) shall be in excess of the amount(s) recoverable or recovered under any bond or policy
of insurance indemnifying such Corporations, against such loss(es), and then the Underwriter shall
be liable hereunder only for the Insureds share of such excess loss(es), but in no event for more
than the Limit of Liability applicable hereunder.
For the purpose of determining the Insureds share of excess loss(es) it shall be deemed that the
Insured has an interest in any certificate representing any security included within such systems
equivalent to the interest the Insured then has in all certificates representing the same security
included within such systems and that such Corporations shall use their best judgment in
apportioning the amount(s) recoverable or recovered under any bond or policy of insurance
indemnifying such Corporations against such loss(es) in connection with the central handling of
securities within such systems among all those having an interest as recorded by appropriate
entries in the books and records of such Corporations in Property involved in such loss(es) on the
basis that each such interest shall share in the amount(s) so recoverable or recovered in the ratio
that the value of each such interest bears to the total value of all such interests and that the
Insureds share of such excess loss(es) shall be the amount of the Insureds interest in such
Property in excess of the amount(s) so apportioned to the Insured by such Corporations.
This bond does not afford coverage in favor of such Corporations or Exchanges or any nominee in
whose name is registered any security included within the systems for the central handling of
securities established and maintained by such Corporations, and upon payment to the Insured by the
Underwriter on account of any loss(es) within the systems, an assignment of such of the Insureds
rights and causes of action as it may have against such Corporations or Exchanges shall to the
extent of such payment, be given by the Insured to the Underwriter, and the Insured shall execute
all papers necessary to secure to the Underwriter the rights provided for herein.
SECTION 16. ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one corporation, co-partnership or person or any combination of them be included as
the Insured herein:
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(a) |
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the total liability of the Underwriter hereunder for loss or losses sustained by
any one or more or all of them shall not exceed the limit for which the Underwriter would
be liable hereunder if all such loss were sustained by any one of them, |
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(b) |
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the one first named herein shall be deemed authorized to make, adjust and receive
and enforce payment of all claims hereunder and shall be deemed to be the agent of the
others for such purposes and for the giving or receiving of any notice required or
permitted to be given by the terms hereof, provided that the Underwriter shall furnish
each named Investment Company with a copy of the bond and with any amendment thereto,
together with a copy of each formal filing of the settlement of each such claim prior to
the execution of such settlement, |
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(c) |
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the Underwriter shall not be responsible for the proper application of any payment
made hereunder to said first named Insured, |
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(d) |
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knowledge possessed or discovery made by any partner, officer or supervisory
Employee of any Insured shall for the purposes of Section 4 and Section 13 of this bond
constitute knowledge or discovery by all the Insured, and |
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(e) |
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if the first named Insured ceases for any reason to be covered under this bond,
then the Insured next named shall thereafter be considered as the first named Insured for
the purposes of this bond. |
15
SECTION 17. NOTICE AND CHANGE OF CONTROL
Upon the Insureds obtaining knowledge of a transfer of its outstanding voting securities which
results in a change in control (as set forth in Section 2(a) (9) of the Investment Company Act of
1940) of the Insured, the Insured shall within thirty (30) days of such knowledge give written
notice to the Underwriter setting forth:
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(a) |
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the names of the transferors and transferees (or the names of the beneficial owners
if the voting securities are requested in another name), and |
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(b) |
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the total number of voting securities owned by the transferors and the transferees
(or the beneficial owners), both immediately before and after the transfer, and |
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(c) |
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the total number of outstanding voting securities. |
As used in this section, control means the power to exercise a controlling influence over the
management or policies of the Insured.
Failure to give the required notice shall result in termination of coverage of this bond, effective
upon the date of stock transfer for any loss in which any transferee is concerned or implicated.
Such notice is not required to be given in the case of an Insured which is an Investment Company.
SECTION 18. CHANGE OR MODIFICATION
This bond or any instrument amending or effecting same may not be changed or modified orally. No
changes in or modification thereof shall be effective unless made by written endorsement issued to
form a part hereof over the signature of the Underwriters Authorized Representative. When a bond
covers only one Investment Company no change or modification which would adversely affect the
rights of the Investment Company shall be effective prior to 60 days after written notification has
been furnished to the Securities and Exchange Commission, Washington, D.C. by the Insured or by the
Underwriter. If more than one Investment Company is named as the Insured herein, the Underwriter
shall give written notice to each Investment Company and to the Securities and Exchange Commission,
Washington, D.C. not less than 60 days prior to the effective date of any change or modification
which would adversely affect the rights of such Investment Company.
IN WITNESS WHEREOF, the Underwriter has caused this bond to be executed on the Declarations Page.
16
ENDORSEMENT #1
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
NEW YORK STATUTORY RIDER/ENDORSEMENT
It is agreed that:
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Part (a) of the Section entitled Termination or Cancellation of this bond/policy is
deleted. |
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Cancellation of this bond/policy by the Underwriter/Company is subject to the following
provisions: |
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If the bond/policy has been in effect for 60 days or less, it may be cancelled by the
Underwriter/Company for any reason. Such cancellation shall be effective 20 days after the
Underwriter/Company mails a notice of cancellation to the first-named insured at the mailing
address shown in the bond/policy. However, if the bond/policy has been in effect for more
than 60 days or is a renewal, then cancellation must be based on one of the following
grounds: |
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(A) |
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non-payment of premium; |
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(B) |
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conviction of a crime arising out of acts increasing the hazard insured
against; |
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(C) |
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discovery of fraud or material misrepresentation in the obtaining of the
bond/policy or in the presentation of claim thereunder; |
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(D) |
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after issuance of the bond/policy or after the last renewal date, discovery of
an act or omission, or a violation of any bond/policy condition that substantially and
materially increases the hazard insured against, and which occurred subsequent to
inception of the current bond/policy period; |
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(E) |
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material change in the nature or extent of the risk, occurring after issuance
or last annual renewal anniversary date of the bond/policy, which causes the risk of
loss to be substantially and materially increased beyond that contemplated at the time
the bond/policy was issued or last renewed; |
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(F) |
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the cancellation is required pursuant to a determination by the superintendent
that continuation of the present premium volume of the insurer would jeopardize that
insurers solvency or be hazardous to the interests of the insureds, the insurers
creditors or the public; |
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(G) |
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a determination by the superintendent that the continuation of the bond/policy
would violate, or would place the insurer in violation of, any provision of the New
York State insurance laws. |
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(H) |
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where the insurer has reason to believe, in good faith and with sufficient
cause, that there is a possible risk or danger that the insured property will be
destroyed by the |
ENDORSEMENT #1
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
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insured for the purpose of collecting the insurance proceeds, provided, however, that: |
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(i) |
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a notice of Cancellation on this ground shall inform the insured
in plain language that the insured must act within ten days if review by the
Insurance Department of the State of New York of the ground for Cancellation is
desired, and |
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(ii) |
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notice of Cancellation on this ground shall be provided
simultaneously by the insurer to the Insurance Department of the State of New
York. |
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Cancellation based on one of the above grounds shall be effective 15 days after the notice
of cancellation is mailed or delivered to the named insured, at the address shown on the
bond/policy, and to its authorized agent or broker. |
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If the Underwriter/Company elects not to replace a bond/policy at the termination of the
bond/policy period, it shall notify the insured not more than 120 days nor less than 60 days
before termination. If such notice is given late, the bond/policy shall continue in effect for
60 days after such notice is given. The Aggregate Limit of Liability shall not be increased or
reinstated. The notice not to replace shall be mailed to the insured and its broker or agent. |
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4. |
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If the Underwriter/Company elects to replace the bond/policy, but with a change of limits,
reduced coverage, increased deductible, additional exclusion, or upon increased premiums in
excess of ten percent (exclusive of any premium increase as a result of experience rating),
the Underwriter must mail written notice to the insured and its agent or broker not more than
120 days nor less than 60 days before replacement. If such notice is given late, the
replacement bond/policy shall be in effect with the same terms, conditions and rates as the
terminated bond/policy for 60 days after such notice is given. |
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The Underwriter/Company may elect to simply notify the insured that the bond/policy will
either be not renewed or renewed with different terms, conditions or rates. In this event, the
Underwriter/Company will inform the insured that a second notice will be sent at a later date
specifying the Underwriters/Companys exact intention. The Underwriter shall inform the
insured that, in the meantime, coverage shall continue on the same terms, conditions and rates
as the expiring bond/policy until the expiration date of the bond/policy or 60 days after the
second notice is mailed or delivered, whichever is later. |
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #2
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
AMEND FIDELITY DELETE MANIFEST
It is agreed that:
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Insuring Agreement (A) FIDELITY, paragraph 2, is hereby amended to read as follows: |
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Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean only
dishonest or fraudulent act(s) committed by such Employee with the intent: |
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(a) |
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to cause the Insured to sustain such loss; and |
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(b) |
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to obtain financial benefit for the Employee, or for any other
person or organization intended by the Employee to receive such benefit, other
than salaries, commissions, fees, bonuses, promotions, awards, profit sharing,
pension or other employee benefits earned in the normal course of employment. |
2. |
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Nothing herein contained shall be held to vary, alter, waive or extend any of the terms,
limitations, conditions or agreements of the attached bond other than as above stated. |
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #3
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
COMPUTER SYSTEMS INSURING AGREEMENT (J)
In consideration of the premium charged the bond is amended as follows:
I.
The bond is hereby amended by adding Insuring Agreement (J) to the bond as follows:
(J) |
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COMPUTER SYSTEMS |
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Loss resulting directly from a fraudulent |
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(1) |
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entry of Electronic Data or Computer Program into, or |
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(2) |
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change of Electronic Data or Computer Program within |
any Computer Systems operated by the Insured, whether owned or leased; or any Computer
System identified in the application for this bond; or a Computer System first used by the
Insured during the Bond Period, as provided by General Agreement A of this bond;
provided that the entry or change causes
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(i) |
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property to be transferred, paid or delivered, |
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(ii) |
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an account of the Insured, or of its customer, to be added, deleted, debited or
credited, or |
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(iii) |
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an unauthorized account or a fictitious account to be debited or credited. |
II.
For the purpose of the coverage afforded by this Insuring Agreement, the following definitions
shall be added to the policy:
Fraudulent Entry or Fraudulent Change shall include such entry or change made by an
Employee of the Insured acting in good faith:
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(a) |
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on an instruction from a software contractor who has a written agreement with
the Insured to design, implement or service programs for a Computer System covered by
this Insuring Agreement, or |
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(b) |
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on an instruction transmitted by Tested telex or similar means of Tested
communication (except a Telefacsimile Device) identified in the application for this
bond purportedly sent by a customer, financial institution or automated
clearinghouse; |
Computer Program means a set of related electronic instructions which direct the
ENDORSEMENT #3
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
operations and functions of a computer or devices connected to it which enable the computer
or devices to receive, process, store or send Electronic Data;
Computer Systems means:
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1) |
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computers with related peripheral components, including storage components
wherever located, |
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2) |
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systems and applications software, |
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terminal devices, and |
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4) |
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related communication networks, including the Internet, |
by which Electronic Data are electronically collected, transmitted, processed, stored and
retrieved;
Electronic Data means facts or information converted to a form usable in a Computer System
by Computer Programs, and which is stored on magnetic tapes or disks, or optical storage
disks or other bulk media;
Telefacsimile Device means a machine capable of sending or receiving a duplicate image of
a document by means of electronic impulses transmitted through a telephone line and which
reproduces the duplicate image on paper;
Tested means a method of authenticating the contents of a communication by placing a valid
test key on it which has been agreed upon between the Insured and a customer, automated
clearing house, or another financial institution for the purpose of protecting the integrity
of the communication in the ordinary course of business;
Internet means worldwide public network of computers, which are commonly referred to as
the internet.
III.
For the purpose of the coverage afforded by this Insuring Agreement, the following exclusions shall
be added to the policy:
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loss resulting directly or indirectly from the assumption of liability by the Insured by
contract unless the liability arises from a loss covered by the Computer Systems Insuring
Agreement and would be imposed on the Insured regardless of the existence of the contract; |
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B. |
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loss resulting directly or indirectly from negotiable instruments, securities, documents or
other written instruments which bear a forged signature, or are counterfeit, altered or
otherwise fraudulent and which are used as source documentation in the preparation of
Electronic Data or manually keyed into a data terminal; |
ENDORSEMENT #3
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
C. |
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loss resulting directly or indirectly from |
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1) |
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mechanical failure, faulty construction, error in design, latent defect, fire,
wear or tear, gradual deterioration, electrical disturbance or electrical surge which
affects a Computer System, or |
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2) |
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failure or breakdown of electronic data processing media, or |
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error or omission in programming or processing; |
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loss resulting directly or indirectly from the input of Electronic Data into a Computer
System terminal device either on the premises of a customer of the Insured or under the
control of such a customer by a person who had authorized access to the customers
authentication mechanism; |
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E. |
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loss resulting directly from the theft of confidential information |
IV.
Solely with respect to the coverage afforded by this endorsement, all loss or series of losses
involving the fraudulent acts of one individual, or involving fraudulent acts in which one
individual is implicated, whether or not that individual is specifically identified, shall be
deemed to be one loss and shall be limited to the applicable Limit of Liability stated in Item 3 of
the Declarations of this bond irrespective of the total amount of such loss or losses and shall not
be cumulative in amounts from year to year or from period to period. A series of losses involving
unidentified individuals but arising from the same method of operation shall be deemed to involve
the same individual and in that event shall be treated as a one loss and shall be limited to the
applicable Limit of Liability as described above.
V.
Solely with respect to the coverage afforded by this endorsement, Section 2. EXCLUSIONS (y) is
deleted in its entirety.
ALL OTHER TERMS, CONDITIONS, AND EXCLUSIONS OF THE BOND REMAIN UNCHANGED
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #4
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
UNAUTHORIZED SIGNATURES
It is agreed that:
1. |
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The attached bond is amended by adding an additional Insuring Agreement as follows: |
UNAUTHORIZED SIGNATURES
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Loss resulting directly from the Insured having accepted, paid or cashed any check or
withdrawal order, draft, made or drawn on a customers account which bears the signature or
endorsement of one other than a person whose name and signature is on the application on file
with the Insured as a signatory on such account. |
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It shall be a condition precedent to the Insureds right to recovery under this rider that
the Insured shall have on file signatures of all persons who are authorized signatories on
such account. |
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The Limit of Liability for the coverage provided by this rider shall be $25,000. |
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The Underwriter shall not be liable under the Unauthorized Signatures Rider for any loss on
account of any instrument unless the amount of such instrument shall be in excess of Five
Thousand Dollars, ($5,000) (herein called Deductible Amount) and unless such loss on account
of such instrument, after deducting all recoveries on account of such instrument made prior to
the payment of such loss by the Underwriter, shall be in excess of such Deductible Amount and
then for such excess only, but in no event more than the amount of the attached bond, or the
amount of coverage under the Unauthorized Signatures Rider, if the amount of such coverage is
less than the amount of the attached bond. |
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Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms,
limitations, conditions, or provisions of the attached bond other than above stated. |
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #5
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
AUDIT EXPENSE
It is agreed that:
The attached bond is amended by adding an additional Insuring Agreement as follows:
AUDIT EXPENSE
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Expenses incurred by the Insured for that part of the costs of audits or examinations
required by any governmental regulatory authority to be conducted either by such authorities
or by independent accountants by reason of the discovery of loss sustained by the Insured
through dishonest or fraudulent act(s) of an Employee. |
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The Limit of Liability for the coverage provided by this Rider by reason of such act(s) of
any Employee or in which such Employee is concerned or implicated or with respect to any one
audit or examination shall be $25,000, it being understood that such liability shall be in
addition to the Limit of Liability state in Item 4 of the declarations of the attached bond. |
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The underwriter shall only be liable hereunder for the amount by which such expense shall be
in excess of $5,000 (herein called the Deductible Amount) but not in excess of the Limit of
Liability stated above. |
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It is understood that expense covered under this Rider exclude those resulting from an audit
or examination required as result of the Insured being taken over by a liquidator or
receiver or by state or federal officials. |
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2. |
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Coverage under this Rider shall terminate upon termination or cancellation of the bond to
which this Rider is attached. |
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #6
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
NOTICE OF CLAIM
(REPORTING BY E-MAIL)
In consideration of the premium charged, it is hereby understood and agreed as follows:
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Email Reporting of Claims : In addition to the postal address set forth for any Notice of
Claim Reporting under this policy, such notice may also be given in writing pursuant to the
policys other terms and conditions to the Insurer by email at the following email address: |
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c-claim@aig.com |
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Your email must reference the policy number for this policy. The date of the Insurers
receipt of the emailed notice shall constitute the date of notice. |
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In addition to Notice of Claim Reporting via email, notice may also be given to the Insurer
by mailing such notice to: c-Claim for Financial Lines, AIG Domestic Claims, Inc., 175 Water
Street, 9th Floor, New York, New York 10038 or faxing such notice to (866) 227-1750. |
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2. |
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Definitions: For this endorsement only, the following definitions shall apply: |
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(a) |
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Insurer means the Insurer, Underwriter or Company or other name
specifically ascribed in this policy as the insurance company or underwriter for this
policy. |
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(b) |
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Notice of Claim Reporting means notice of claim/circumstance, notice of
loss or other reference in the policy designated for reporting of claims, loss or
occurrences or situations that may give rise or result in loss under this policy. |
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(c) |
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Policy means the policy, bond or other insurance product to which this
endorsement is attached. |
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This endorsement does not apply to any Kidnap & Ransom/Extortion Coverage Section, if any,
provided by this policy. |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #7
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COVERAGE TERRITORY ENDORSEMENT
Payment of loss under this policy shall only be made in full compliance with all United States of
America economic or trade sanction laws or regulations, including, but not limited to, sanctions,
laws and regulations administered and enforced by the U.S. Treasury Departments Office of Foreign
Assets Control (OFAC).
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AUTHORIZED REPRESENTATIVE |
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ENDORSEMENT #8
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This endorsement, effective |
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12:01 a.m. |
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January 2, 2009 |
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forms a part of |
Policy number: |
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01-426-86-30 |
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Issued to: |
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FIFTH STREET FINANCE CORP. |
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By: |
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National Union Fire Insurance Company of Pittsburgh, Pa. |
FORMS INDEX ENDORSEMENT
The contents of the Policy is comprised of the following forms:
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FORM |
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EDITION |
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NUMBER |
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DATE |
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FORM TITLE |
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INVESTMENT COMPANY BLANKET BOND DEC PAGE |
41206
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09/84
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INVESTMENT COMPANY BLANKET BOND GUTS |
SR 6180b
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04/88
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NEW YORK STATUTORY RIDER/ENDORSEMENT |
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AMEND FIDELITY DELETE MANIFEST |
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COMPUTER SYSTEMS INSURING AGREEMENT (J) |
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UNAUTHORIZED SIGNATURES |
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AUDIT EXPENSE |
99758
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08/08
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NOTICE OF CLAIM (REPORTING BY E-MAIL) |
88644
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07/05
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COVERAGE TERRITORY ENDORSEMENT (OFAC) |
78859
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10/01
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FORMS INDEX ENDORSEMENT |
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
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AUTHORIZED REPRESENTATIVE |
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