09/09/2024 | Press release | Distributed by Public on 09/09/2024 10:13
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Financial Institution Bond | |||||||||
For Investment Companies | |||||||||
DECLARATIONS | FEDERAL INSURANCE COMPANY | ||||||||
Incorporated under the laws of Indiana, a stock | |||||||||
Name of Assured: | insurance company, herein called the Company | ||||||||
AETOS LONG/SHORT STRATEGIES FUND LLC | One American Square 202 N Illinois Street, | ||||||||
Address of Assured: | Suite 2600 | ||||||||
875 THIRD AVENUE | Indianapolis, IN 46282 | ||||||||
NEW YORK, NY 10022 | Bond Number: J06033374 | ||||||||
Item 1. | Bond Period: | From: | August 22, 2024 | ||||||
To: | August 22, 2025 | ||||||||
At 12:01 A.M. local time at the Address of Assured. | |||||||||
Item 2. | Single Loss Limits Of Liability - Deductible Amounts: | ||||||||
Insuring Clause | Single Loss Limit Of | Deductible Amount | |||||||
Liability | |||||||||
1 | . | Employee | $ | 1,000,000 | $ | 0 | |||
2 | . | On Premises | $ | 1,000,000 | $ | 25,000 | |||
3 | . | In Transit | $ | 1,000,000 | $ | 25,000 | |||
4 | . | Forgery Or Alteration | $ | 1,000,000 | $ | 25,000 | |||
5 | . | Extended Forgery | $ | 1,000,000 | $ | 25,000 | |||
6 | . | Counterfeit Money | $ | 1,000,000 | $ | 25,000 | |||
7 | . | Computer System Fraud | $ | 1,000,000 | $ | 25,000 | |||
8 | . | Claims Expense | $ | 10,000 | $ | 0 | |||
9 | . | Audit Expense | $ | 1,000,000 | $ | 25,000 | |||
10. Uncollectible Items Of Deposit | $ | 1,000,000 | $ | 25,000 | |||||
11 | . | Voice Initiated Funds Transfer | $ | 1,000,000 | $ | 25,000 | |||
Instruction |
PF-52903D (08/21)
Page 1 of 2
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Financial Institution Bond |
For Investment Companies |
IN WITNESS WHEREOF, the Company has caused this Bond to be signed by its Authorized Officers, but it shall |
not be valid unless also signed by a duly authorized representative of the Company. |
FEDERAL INSURANCE COMPANY |
PF-52903D (08/21)
Page 2 of 2
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Important Notice |
The SEC Requires Proof of Your Fidelity Insurance Policy |
Your company is now required to file an electronic copy of your fidelity insurance coverage (Chubb's ICAP Bond |
policy) to the Securities and Exchange Commission (SEC), according to rules adopted by the SEC on June 12, |
2006. |
Chubb is in the process of providing your agent/broker with an electronic copy of your insurance policy as well as |
instructions on how to submit this proof of fidelity insurance coverage to the SEC. You can expect to receive this |
information from your agent/broker shortly. |
The electronic copy of your policy is provided by Chubb solely as a convenience and does not affect the terms and |
conditions of coverage as set forth in the paper policy you receive by mail. The terms and conditions of the policy |
mailed to you, which are the same as those set forth in the electronic copy, constitute the entire agreement |
between your company and Chubb. |
If you have any questions, please contact your agent or broker. |
14-02-12160 (08/19)
Page 1 of 1
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Notice of Loss Control Services | |
Insuring Company: Federal Insurance Company | |
As a Chubb policyholder, you have loss prevention information and/or services available to you, as | |
listed in this Notice. You may order any brochure by email to [email protected] and to view | |
our full suite of loss prevention brochures/services go to www.chubb.com/us/fl-lossprevention | |
Directors and Officers (D&O) Liability Loss Prevention Services | |
• | Directors and Officers Liability Loss Prevention Manuals: |
Directors and Officers Liability Loss Preventions - #14-01-0035 | |
Directors and Officers Securities Litigation Loss Preventions - #14-01-0448 | |
Director Liability Loss Prevention in Mergers and Acquisitions - #14-01-1099 | |
Directors and Officers Liability Loss Prevention for Not-for-Profit- -#14-01-0036 | |
Cyber Loss Mitigation for Directors -#14-01-1199 | |
Employment Practices Liability (EPL) Loss Prevention Services | |
• | Toll-free Hot Line |
Have a question on how to handle an employment situation? Simply call 1.888.249.8425 to access | |
the nationally known employment law firm of Jackson Lewis P.C. We offer customers an unlimited | |
number of calls to the hot line at no additional charge. | |
• | ChubbWorks.com |
ChubbWorks.com is a web-based platform that offers multiple services including overviews of | |
employment laws, sample employment policies and procedures, and on-line training. To gain | |
immediate access to ChubbWorks go to www.chubbworks.com and register using your policy | |
number. | |
• | Employment Practices Loss Prevention Guidelines Manual |
Employment Practices Loss Prevention Guidelines - #14-01-0061 | |
• | Loss Prevention Consultant Services |
Chubb has developed a network of more than 120 law firms, human resources consulting firms, and | |
labor economist/statistical firms that offer specialized services for employment issues. | |
• | Public Company EPL Customers |
Employment Practices Loss Prevention Guidelines - Written by Seyfarth Shaw exclusively for | |
Chubb this manual provides an overview of key employment issues faced by for-profit companies | |
and offers proactive idea for avoiding employment lawsuits. | |
• | Private Company EPL Customers |
Employment Practices Loss Prevention Guidelines - Written by Seyfarth Shaw exclusively for | |
Chubb this manual provides an overview of key employment issues for -profit companies and offers | |
proactive idea for avoiding employment lawsuits. |
14-02-23030 (05/2018)
Page 1 of 2
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Fiduciary Liability Loss Prevention Services | |
• | Fiduciary Liability Loss Prevention Manual |
Who May Sue You and Why: How to Reduce Your ERISA Risks and the Role of Fiduciary | |
Liability Insurance #14-01-1019 | |
Crime Loss Prevention Services | |
• | Crime/Kidnap, Ransom & Extortion Loss Prevention Manual |
Preventing Fraud: How Anonymous Hotlines Can Help #14-01-1090 | |
Cyber Security Loss Prevention Services | |
Visit: https://www2.chubb.com/us-en/business-insurance/cyber-security.aspx to learn more | |
about Chubb's Cyber Services for our policyholders. | |
Health Care Directors and Officers (D&O) Liability Loss Prevention Services | |
• | Readings in Health Care Governance Manual |
Readings in Health Care Governance -#14-01-0788 | |
• | ChubbWorks.com |
ChubbWorks.com for Health Care Organizations - The Health Care Zone is a free online | |
resource containing health care specific loss prevention information for employment practices | |
liability, directors and officers (D&O) liability, and fiduciary liability exposures. To gain | |
immediate access to ChubbWorks go to www.chubbworks.com and register using your policy | |
number. | |
• | Health Care D&O Loss Prevention Consultant Services |
Health Care D& O Loss Prevention Consultant Services- #14-01-1164 | |
-------------------- | |
The services provided are advisory in nature. While this program is offered as a resource in | |
developing or maintaining a loss prevention program, you should consult competent legal counsel | |
to design and implement your own program. No liability is assumed by reason of the services, | |
access or information provided. All services are subject to change without notice. |
14-02-23030 (05/2018)
Page 2 of 2
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Chubb Producer Compensation |
Practices & Policies |
Chubb believes that policyholders should have access to information about Chubb's practices and policies related |
to the payment of compensation to brokers and independent agents. You can obtain that information by accessing |
our website at http://www.chubbproducercompensation.com or by calling the following toll-free telephone |
number: |
1-866-512-2862. |
ALL-20887a (09/19)
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Trade or Economic |
Sanctions Notice |
TRADE OR ECONOMIC SANCTIONS NOTICE |
This insurance does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit |
us from providing insurance, including, but not limited to, the payment of claims. All other terms and conditions |
of the policy remain unchanged. |
ALL-21101 (09/19)
Page 1 of 1
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IMPORTANT NOTICE TO | ||
POLICYHOLDERS | ||
Social Engineering Tips | ||
Please read! | ||
HAVE YOU BEEN TRICKED INTO WIRE FRAUD? TAKE IMMEDIATE ACTION! | ||
If you believe you have transferred funds to a criminal posing as a legitimate business associate, you should act | ||
quickly: | ||
1 | . | Immediately contact the originating bank and request a recall of the wire transfer and confirm that |
recall in writing. | ||
2 | . | Immediately file a complaint with the FBI at www.ic3.gov. This reporting triggers the FBI's Recovery Asset |
Team and the FBI's assistance seeking return of the wire transfer. | ||
3 | . | Preserve records of the incident, including emails sent and received in their original electronic state. |
Correspondence and forensic information contained in these electronic files help investigators shed light on | ||
the perpetrator(s), and parties responsible for the incident. | ||
4 | . | Once the above steps are complete, contact Chubb per the instructions in your policy. |
While neither recalling the wire transfer nor reporting to the FBI guarantees the return of your funds, these steps | ||
maximize the opportunity to mitigate your loss, assist the FBI in tracing the funds and help establish any | ||
insurance claim. | ||
Simple Steps to Prevent Fraudulently Induced Wire Transfers | ||
Email communication is efficient, but it is not a secure method of communication. Regardless of your familiarity | ||
with a contact, that contact's email may be intercepted, altered and fabricated. You may reduce the | ||
chances of fraud by following these best practices: | ||
1 | . | Verify Email Requests by Telephone: Require those responsible for paying invoices or changing bank |
routing information to verify payment details over the phone, rather than by email or documents sent | ||
electronically. Making a phone call to a known, pre-existing telephone number remains the single best | ||
protection against fraud. | ||
2 | . | Segregate Wire Transfer Responsibilities: Establish a standing policy that requires at least three people |
to review and approve wire transfer requests, pay an invoice or change a business partner's bank account | ||
information. Such requests should be entered by the initiator of the wire and verified by two independent | ||
signatories. | ||
3 | . | Turn on MFA for Cloud Email: Multifactor Authentication is available from all major email providers. It |
provides a layer of security to email accounts beyond a user's account name and password, making it harder | ||
for criminals to impersonate you, your executives and your employees. | ||
This document is for information only. It is offered as a resource to be used together with your professional | ||
insurance advisers in maintaining a loss prevention program. No liability is assumed by reason of the | ||
information this document contains. |
ALL-317454 (03/21)
Page 1 of 1
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U. S. Treasury Department's Office |
Of Foreign Assets Control ("OFAC") |
Advisory Notice to Policyholders |
This Policyholder Notice shall not be construed as part of your policy and no coverage is provided by this |
Policyholder Notice nor can it be construed to replace any provisions of your policy. You should read your |
policy and review your Declarations page for complete information on the coverages you are provided. |
This Notice provides information concerning possible impact on your insurance coverage due to directives |
issued by OFAC. Please read this Notice carefully. |
The Office of Foreign Assets Control (OFAC) administers and enforces sanctions policy, based on |
Presidential declarations of "national emergency". OFAC has identified and listed numerous: |
l Foreign agents; |
l Front organizations; |
l Terrorists; |
l Terrorist organizations; and |
l Narcotics traffickers; |
as "Specially Designated Nationals and Blocked Persons". This list can be located on the United States |
Treasury's web site - http//www. treas. gov/ofac. |
In accordance with OFAC regulations, if it is determined that you or any other insured, or any person or |
entity claiming the benefits of this insurance has violated U. S. sanctions law or is a Specially Designated |
National and Blocked Person, as identified by OFAC, this insurance will be considered a blocked or frozen |
contract and all provisions of this insurance are immediately subject to OFAC. When an insurance policy |
is considered to be such a blocked or frozen contract, no payments nor premium refunds may be made |
without authorization from OFAC. Other limitations on the premiums and payments also apply. |
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PF-17914a (04/16) | Reprinted, in part, with permission of | Page 1 of 1 |
ISO Properties, Inc. |
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Notice to Policyholders |
QUESTIONS ABOUT YOUR INSURANCE? |
Answers to questions about your insurance, coverage information, or assistance in resolving |
complaints can be obtained by contacting: |
CHUBB |
Customer Support Service Department |
436 Walnut Street |
PO Box 1000 |
Philadelphia, PA 19106-3703 |
1-800-352-4462 |
PF-17993a (04/20)
Page 1 of 1
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Financial Institution Bond | ||||
For Investment Companies | ||||
The Company, in consideration of the premium paid, and in reliance on the Application and all other statements | ||||
made and information furnished to the Company by the Assured, and subject to the Declarations made part of this | ||||
Bond and to all other terms, conditions, and limitations of this Bond, agrees to pay the Assured for: | ||||
I. | INSURING CLAUSES | |||
1 | . | Employee | ||
Loss resulting directly from Larceny or Embezzlement committed by any Employee acting alone or | ||||
in collusion with others. | ||||
2 | . | On Premises | ||
Loss of Property resulting directly from: | ||||
a. | robbery, burglary, misplacement, mysterious unexplainable disappearance, damage or destruction; or | |||
b. | false pretenses, or common law or statutory larceny, committed by a natural person while on the | |||
premises of the Assured, | ||||
while the Property is lodged or deposited at premises located anywhere. | ||||
For the purpose of coverage under this Insuring Clause 2, the premises of securities depositories shall be | ||||
deemed to be premises of the Assured, but only with respect to the loss of Certificated Securities. | ||||
Certificated Securities held by such depositories shall be deemed to be Property, but only to the extent | ||||
of the Assured's interest therein as detailed in the books and records of such depositories. | ||||
3 | . | In Transit | ||
Loss of Property resulting directly from common law or statutory larceny, misplacement, mysterious | ||||
unexplainable disappearance, damage or destruction, while the Property is in transit anywhere in: | ||||
a. | an armored motor vehicle, including loading and unloading thereof; | |||
b. | the custody of a natural person acting as a messenger of the Assured; or | |||
c. | the custody of a Transportation Company and being transported in a conveyance other than an | |||
armored motor vehicle, provided that covered Property transported in such manner is limited to the | ||||
following: | ||||
(1) | Written records; | |||
(2) | Certificated Securities issued in registered form, which are not endorsed or are restrictively | |||
endorsed; or | ||||
(3) | Negotiable Instruments not payable to bearer, which are not endorsed or are restrictively | |||
endorsed. | ||||
Coverage under this Insuring Clause 3 begins immediately on the receipt of such Property by the armored | ||||
motor vehicle, natural person messenger, or Transportation Company and ends immediately on | ||||
delivery to the premises of the addressee or to any representative of the addressee located anywhere. | ||||
4 | . | Forgery Or Alteration | ||
Loss resulting directly from the Assured having, in good faith: | ||||
a. | transferred, paid, or delivered any Property; or | |||
b. | established any credit or given any value, | |||
in reliance on any Written and Original: |
PF-52903 (08/21)
Page 1 of 17
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Financial Institution Bond | ||||||
For Investment Companies | ||||||
(1 | ) | Negotiable Instrument (other than an Evidence of Debt); | ||||
(2 | ) | Acceptance; | ||||
(3 | ) | Withdrawal Order or receipt for the withdrawal of Property; | ||||
(4 | ) | Certificate of Deposit; | ||||
(5 | ) | Letter of Credit; or | ||||
(6 | ) | instruction or advice directed to the Assured and purportedly signed by any Customer, any | ||||
financial institution, or any Employee, | ||||||
which | ||||||
i. | bears a Forgery; or | |||||
ii. | is fraudulently materially altered. | |||||
For the purpose of this Insuring Clause 4, a reproduction of a handwritten signature is treated the same as | ||||||
the handwritten signature. An electronic or digital signature is not treated as a reproduction of a | ||||||
handwritten signature. | ||||||
5 | . | Extended Forgery | ||||
Loss resulting directly from the Assured having, in good faith, for its own account or the account of others: | ||||||
a. | acquired, sold or delivered, given value, extended credit or assumed liability in reliance on any Written | |||||
and Original: | ||||||
(1 | ) | Certificated Security; | ||||
(2 | ) | deed, mortgage or other instrument conveying title to, or creating or discharging a lien on, real | ||||
property; | ||||||
(3 | ) | Evidence of Debt; or | ||||
(4 | ) | Instruction, | ||||
which | ||||||
i. | bears a Forgery, but only to the extent the Forgery directly causes the loss; | |||||
ii. | is fraudulently materially altered, but only to the extent the alteration directly causes the loss; | |||||
or | ||||||
iii. | is lost or stolen; | |||||
b. | guaranteed in writing or witnessed any signature on any: | |||||
(1 | ) | transfer; | ||||
(2 | ) | assignment; | ||||
(3 | ) | bill of sale; | ||||
(4 | ) | power of attorney; or | ||||
(5 | ) | endorsement upon any item listed in a.(1) through a.(4) above, | ||||
but only to the extent that such guarantee or signature directly causes the loss; or | ||||||
c. | acquired, sold or delivered, or given value, extended credit or assumed liability in reliance on any item | |||||
listed in a.(1) or a.(2) above which is a Counterfeit Original, but only to the extent the Counterfeit | ||||||
Original directly causes the loss. |
PF-52903 (08/21)
Page 2 of 17
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Financial Institution Bond | |||
For Investment Companies | |||
Actual physical possession, and continued actual physical possession if taken as collateral, of the items | |||
listed in a.(1) through a.(4) above by an Employee, Custodian, or a federal or state chartered deposit | |||
institution of the Assured is a condition precedent to the Assured having relied on such items. Release | |||
or return of such collateral is an acknowledgment by the Assured that it no longer relies on such collateral. | |||
For the purpose of this Insuring Clause 5, a reproduction of a handwritten signature is treated the same as | |||
the handwritten signature. An electronic or digital signature is not treated as a reproduction of a | |||
handwritten signature. | |||
6 | . | Counterfeit Money | |
Loss resulting directly from the receipt by the Assured in good faith of counterfeit Money. | |||
7 | . | Computer System Fraud | |
Loss resulting directly from the: | |||
a. | withdrawal, transfer, payment, or delivery of Property; or | ||
b. | creation, deletion, debiting, or crediting of an account of the Assured or Customer, | ||
which results directly from a Network Intrusion. | |||
8 | . | Claims Expense | |
Claims Expenses incurred by the Assured in determining the amount of covered loss under this Bond | |||
in excess of the applicable Deductible Amount. | |||
9 | . | Audit Expense | |
Audit Expenses incurred by the Assured by reason of the discovery of loss covered under Insuring | |||
Clause 1. | |||
10 | . | Uncollectible Items Of Deposit | |
Loss resulting directly from the Assured having credited an account of a customer, shareholder, or | |||
subscriber on the faith of any Items of Deposit which prove to be uncollectible, provided that the crediting | |||
of such account causes: | |||
a. | redemptions or withdrawals to be permitted; | ||
b. | shares to be issued; or | ||
c. | dividends to be paid, | ||
from an account of an Assured. | |||
As a condition precedent to coverage under this Insuring Clause 10, the Assured must hold Items of | |||
Deposit for the minimum number of days stated in the Application before permitting any redemptions or | |||
withdrawals, issuing any shares, or paying any dividends with respect to such Items of Deposit. | |||
Items of Deposit shall not be deemed uncollectible until the Assured's standard collection procedures | |||
have failed. | |||
11 | . | Voice Initiated Funds Transfer Instruction | |
Loss resulting directly from the Assured having, in good faith, transferred, paid, or delivered Money or | |||
Securities in reliance upon any Voice Initiated Funds Transfer Instruction that purports, and | |||
reasonably appears, to have originated from: | |||
a. | the Customer; | ||
b. | an Employee acting on instructions of such Customer; or |
PF-52903 (08/21)
Page 3 of 17
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Financial Institution Bond | ||||
For Investment Companies | ||||
c. | a financial institution acting on behalf of such Customer with authority to make such instructions, | |||
but which Voice Initiated Funds Transfer Instruction was, in fact, fraudulently issued without the | ||||
knowledge of the Assured, Employee, or Customer. | ||||
As a condition precedent to coverage under this Insuring Clause 11, the Voice Initiated Funds Transfer | ||||
Instruction must be received and processed in accordance with the Designated Procedures as outlined in | ||||
the Application furnished to the Company. | ||||
II. | GENERAL AGREEMENTS | |||
1 | . | Automatic Increase - Limit Of Liability | ||
If, during the Bond Period, an increase in the minimum amount of the Single Loss Limit Of Liability | ||||
applicable to Insuring Clause 1 is required pursuant to Rule 17g-1 of the Investment Company Act of 1940, | ||||
as a result of: | ||||
a. | the creation of a new Investment Company; or | |||
b. | an increase in the gross assets of Investment Companies covered under the Bond, | |||
then the minimum required increase in the amount of the Single Loss Limit Of Liability applicable to | ||||
Insuring Clause 1 shall take place automatically for the remainder of the Bond Period without payment of | ||||
an additional premium. | ||||
2 | . | Joint Assured | ||
The first named Assured shall be deemed to be the sole agent of the other Assureds for all purposes | ||||
under this Bond, including but not limited to the giving or receiving of any notice or proof required to be | ||||
given and for the purpose of effecting or accepting any amendments to or termination of this Bond. | ||||
If the first named Assured ceases for any reason to be covered under this Bond, then the Assured next | ||||
named on the Application shall thereafter be considered as the first named Assured for the purposes of | ||||
this Bond. | ||||
The Company shall furnish each Assured with a copy of the Bond and with any amendment thereto, | ||||
together with a copy of each formal filing of claim by any other Assured and notification of the terms of | ||||
the settlement of each such claim prior to the execution of such settlement. | ||||
Knowledge possessed or discovery made by any Assured shall constitute knowledge possessed or discovery | ||||
made by all of the Assureds for the purposes of this Bond. | ||||
All loss and other payments, if any, payable by the Company, shall be payable to the first named Assured | ||||
without regard to such Assured's obligations to others, and the Company shall not be responsible for the | ||||
application by the first named Assured of any payment made by the Company. If the Company agrees to | ||||
and makes payment to any Assured other than the first named Assured, such payment shall be treated | ||||
as though made to the first named Assured. | ||||
The Company shall not be liable for loss sustained by one Assured to the advantage of any other Assured. | ||||
3 | . | Notice To Company Of Legal Proceedings Against Assured - Election To Defend | ||
The Assured shall promptly give notice to the Company of any legal proceeding brought to determine the | ||||
Assured's liability for any loss, claim or damage which, if established, would constitute a collectible loss | ||||
under this Bond. Concurrent with such notice, and as requested thereafter, the Assured shall furnish | ||||
copies of all pleadings and pertinent papers to the Company. | ||||
The Company may, at its sole option, elect to conduct the defense of all or part of such legal proceeding. | ||||
The defense by the Company shall be in the name of the Assured through attorneys selected by the | ||||
Company. The Assured shall provide all reasonable information and assistance as required by the | ||||
Company for such defense. |
PF-52903 (08/21)
Page 4 of 17
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Financial Institution Bond | ||||
For Investment Companies | ||||
If the Company elects to defend all or part of any legal proceeding, the court costs and attorneys' fees | ||||
incurred by the Company and any settlement or judgment on that part defended by the Company shall be | ||||
a loss under the applicable Insuring Clause of this Bond. In addition, if the amount demanded in the legal | ||||
proceeding is greater than the amount recoverable under this Bond, or if a Deductible Amount is applicable, | ||||
or both, the Company's liability for court costs and attorneys' fees incurred in defending all or part of such | ||||
legal proceeding is limited to the proportion of such court costs and attorneys' fees incurred that the amount | ||||
recoverable under this Bond bears to the total of the amount demanded in such legal proceeding. | ||||
If the Company declines to defend the Assured, no settlement without the prior written consent of the | ||||
Company or judgment against the Assured shall determine the existence, extent or amount of coverage | ||||
under this Bond, and the Company shall not be liable for any costs, fees and expenses incurred by the | ||||
Assured. | ||||
4 | . | Representations Made By Assured | ||
The Assured represents that all information it has furnished in the Application for this Bond or otherwise | ||||
is complete, true and correct. Such Application and other information constitute part of this Bond. Any | ||||
intentional misrepresentation, omission, concealment or incorrect statement of a material fact, in the | ||||
Application or otherwise, shall be grounds for rescission of this Bond. | ||||
III. | DEFINITIONS | |||
As used in this Bond: | ||||
Acceptance means a draft which the drawee has, by signature written on it, engaged to honor as presented. | ||||
Assured means: | ||||
(1 | ) | the Investment Company listed under Name of Assured in the Declarations (the "first named | ||
Assured"); or | ||||
(2 | ) | any other Investment Company listed in the Application. | ||
Assured does not include any entity or organization that is not an Investment Company. | ||||
Assured's Network means: | ||||
(1 | ) | the Assured's Computer System; or | ||
(2 | ) | an Electronic Communication System. | ||
Audit Expenses means reasonable expenses incurred by the Assured with the Company's prior written | ||||
consent, which shall not be unreasonably withheld, for audits or examinations required by any | ||||
governmental regulatory authority or self-regulatory organization to be conducted by such authority, | ||||
organization, or their appointee. Audit Expense shall not include the Assured's internal corporate costs | ||||
(such as salaries), attorneys' fees, or expenses incurred by any customer. | ||||
Certificate of Deposit means an acknowledgment in writing by a financial institution of receipt of | ||||
Money with an engagement to repay it. | ||||
Certificated Security means a share, participation or other interest in property of the issuer, or an | ||||
enterprise of the issuer, or an obligation of the issuer, which is: | ||||
(1 | ) | represented by an instrument issued in bearer or registered form; | ||
(2 | ) | of a type commonly dealt in on securities exchanges or markets or commonly recognized in any area in | ||
which it is issued or dealt in as a medium for investment; and | ||||
(3 | ) | either one of a class or series or by its terms divisible into a class or series of shares, participations, | ||
interests or obligations. |
PF-52903 (08/21)
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Financial Institution Bond | ||
For Investment Companies | ||
Claims Expenses means reasonable expenses incurred by the Assured with the Company's prior written | ||
consent, which shall not be unreasonably withheld, solely for independent firms or individuals retained to | ||
determine the amount of a covered loss. Claims Expenses shall not include the Assured's internal | ||
corporate costs (such as salaries), attorneys' fees, or expenses incurred by any customer. | ||
Computer System means a device or group of devices and all input, output, processing, storage, off-line | ||
media libraries (including third-party hosted computing services accessed across the internet, including | ||
infrastructure, platform, and software services), and communication facilities, including related | ||
communications networks, which are connected directly or indirectly to such device or group of devices. | ||
Counterfeit Original means an imitation of an actual valid Original which is intended to deceive and | ||
be taken as the Original. | ||
Cryptocurrency means a digital or electronic medium of exchange, operating independently of a central | ||
bank, in which encryption techniques are used to regulate the generation of units and to verify the transfer | ||
of such units. | ||
Custodian means the institution designated by an Assured to maintain possession and control of its | ||
assets. | ||
Customer means any shareholder of an Assured which has a written agreement with the Assured to | ||
transfer such shareholder's Money or Securities through a Voice Initiated Funds Transfer | ||
Instruction. | ||
Customer Communication System means an: | ||
(1 | ) | online portal or mobile application provided by the Assured for purposes of accessing a Customer's |
account; or | ||
(2 | ) | electronic mailing system hosted by the Assured or by a third party cloud service provider. |
Director means any natural person duly elected or appointed: | ||
(1 | ) | as an officer of the Assured; |
(2 | ) | to the Assured's board of directors; or |
(3 | ) | as a trustee of the Assured. |
Electronic Communication System means: | ||
(1 | ) | Fedwire, Clearing House Interbank Payment System (CHIPS), Society for Worldwide Interbank |
Financial Telecommunication (SWIFT), and similar automated interbank communication systems in | ||
which the Assured participates; | ||
(2 | ) | Customer Communication System; or |
(3 | ) | any communication system similar to those set forth in (1) and (2) of this definition in which the |
Assured participates, | ||
allowing for the input, output, examination, or transfer of electronic instructions into or from the | ||
Assured's Computer System. | ||
Employee means any natural person: | ||
(1 | ) | while in the regular service of an Assured in the ordinary course of such Assured's business, whom |
such Assured compensates directly by salary or wage and has the right to control and direct in the | ||
performance of such service; | ||
(2 | ) | Director while in the regular service of an Assured in the ordinary course of such Assured's |
business, or while acting as a member of any committee duly elected or appointed to examine or audit | ||
or have custody of or access to Property of the Assured; | ||
(3 | ) | intern while in the regular service of an Assured in the ordinary course of such Assured's business; |
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(4 | ) | provided by an employment contractor while in the regular service of an Assured in the ordinary | |
course of such Assured's business under the Assured's supervision at any of the Assured's | |||
premises; | |||
(5 | ) | employee of the Assured's contracted: | |
a. | investment advisor; | ||
b. | underwriter (distributor); | ||
c. | transfer agent; | ||
d. | shareholder accounting record-keeper; or | ||
e. | fund administrator, | ||
while performing acts for the Assured in the capacity of an Employee; | |||
(6 | ) | attorney of a law firm retained by the Assured while performing legal services for the Assured; or | |
(7 | ) | Processor, but only while such Processor is performing services and not: | |
a. | creating, preparing, modifying, or maintaining the Assured's computer applications or software | ||
programs; or | |||
b. | acting as a transfer agent or in any other agency capacity in issuing checks, drafts, or securities for | ||
the Assured. | |||
Each employer of persons as set forth in (6) and (7) of this definition and the partners, officers, and other | |||
employees of such employers shall collectively be deemed to be one person for the purpose of the definition | |||
of Single Loss and in the event of payment under this Bond, the Company shall be subrogated to the | |||
Assured's rights of recovery, as stated in Section 12., Subrogation - Assignment - Recovery, of the | |||
Conditions and Limitations, against any such employer. | |||
Employee does not include: | |||
(1 | ) | any employee of a fund administrator for any employee benefit plan; or | |
(2 | ) | any employee of a transfer agent, shareholder accounting record-keeper, or fund administrator which | |
is: | |||
a. | not an "affiliated person" (as defined in Section 2(a) of the Investment Company Act of 1940) of an | ||
Assured or of the investment advisor or underwriter (distributor) of such Assured; or | |||
b. | a "bank" (as defined in Section 2(a) of the Investment Company Act of 1940). | ||
Evidence of Debt means an instrument, including a Negotiable Instrument, executed by a Customer | |||
and held by the Assured, which in the regular course of business is treated as evidencing the Customer's | |||
debt to the Assured. | |||
Forgery means: | |||
(1 | ) | affixing the handwritten signature, or a reproduction of the handwritten signature, of another natural | |
person without authorization and with the intent to deceive; or | |||
(2 | ) | affixing the name of an organization as an endorsement to a check without authority and with the intent | |
to deceive, | |||
provided that a signature which consists in whole or in part of one's own name signed with or without | |||
authority, in any capacity, for any purpose is not a Forgery. | |||
Initial Transaction Statement means the first written statement signed by or on behalf of the issuer of | |||
an Uncertificated Security sent to the registered owner or registered pledgee containing: |
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(1 | ) | a description of the issue of which the Uncertificated Security is a part; |
(2 | ) | the number of shares or units transferred to the registered owner, pledged by the registered owner to |
the registered pledgee, or released from pledge by the registered pledgee; | ||
(3 | ) | the name, address and taxpayer identification number, if any, of the registered owner and registered |
pledgee; and | ||
(4 | ) | the date the transfer, pledge or release was registered. |
Instruction means a written order to the issuer of an Uncertificated Security requesting that the | ||
transfer, pledge or release from pledge of the specified Uncertificated Security be registered. | ||
Investment Company means any entity registered under the Investment Company Act of 1940. | ||
Items of Deposit means one or more checks or drafts drawn upon a financial institution in the United | ||
States of America. | ||
Larceny or Embezzlement means larceny and embezzlement as defined under Section 37 of the | ||
Investment Company Act of 1940. | ||
Letter of Credit means an engagement in writing by a bank or other person made at the request of a | ||
customer that the bank or other person will honor drafts or other demands for payment in compliance with | ||
the conditions specified in the engagement. | ||
Money means a medium of exchange in current use authorized or adopted by a domestic or foreign | ||
government as part of its currency. | ||
Negotiable Instrument means any writing: | ||
(1 | ) | signed by the maker or drawer; |
(2 | ) | containing an unconditional promise or order to pay a sum certain in Money and no other promise, |
order, obligation or power given by the maker or drawer; | ||
(3 | ) | payable on demand or at a definite time; and |
(4 | ) | payable to order or bearer. |
Negotiable Instrument includes a substitute check as defined in the Check Clearing for the 21st Century | ||
Act, and shall be treated the same as the Original it replaced. | ||
Network Intrusion means the: | ||
(1 | ) | unauthorized access; or |
(2 | ) | entry of an unauthorized application or software program, |
into the Assured's Network, by any entity or natural person, except an Employee or any authorized | ||
representative of the Assured. | ||
Original means the first rendering or archetype and does not include photocopies or electronic | ||
transmissions even if received and printed. | ||
Processor means an employee of any entity authorized by the Assured to perform data processing of the | ||
Assured's checks and accounting records related to such checks. Processor does not include any | ||
employee of a Federal Reserve Bank or clearing house. | ||
Property means Money; Securities; Initial Transaction Statement; Negotiable Instrument; | ||
Certificate of Deposit; Acceptance; Evidence of Debt; Withdrawal Order; Letter of Credit; | ||
insurance policy; abstract of title, deed and mortgage on real estate; revenue and other stamps; precious | ||
metals in any form; and books of accounts and other Written records, but not electronic data processing | ||
records or media. | ||
Property does not include electronic data or Cryptocurrency. |
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Securities means either Certificated Securities or Uncertificated Securities. | ||||
Single Loss means all covered loss, court costs, and attorneys' fees resulting from: | ||||
(1 | ) | any one act of burglary, robbery or attempt at either, in which no Employee is implicated; | ||
(2 | ) | any one act or series of related acts on the part of any natural person resulting in the damage, | ||
destruction, or misplacement of Property; | ||||
(3 | ) | all acts other than those specified in (1) and (2) of this definition, caused by any natural person or in | ||
which such natural person is implicated; or | ||||
(4 | ) | any one event not specified in (1), (2) or (3) of this definition. | ||
Transportation Company means any organization which provides its own or its leased vehicles for | ||||
transportation or which provides freight forwarding or air express services. | ||||
Uncertificated Security means a share, participation or other interest in property of the issuer, or an | ||||
enterprise of the issuer, or an obligation of the issuer, which is: | ||||
(1 | ) | not represented by an instrument and the transfer of which is registered on books maintained for that | ||
purpose by or on behalf of the issuer; | ||||
(2 | ) | of a type commonly dealt in on securities exchanges or markets; and | ||
(3 | ) | either one of a class or series or by its terms divisible into a class or series of shares, participations, | ||
interests or obligations. | ||||
Voice Initiated Funds Transfer Instruction means those oral instructions which authorize the | ||||
transfer of Money in a Customer's account, or of a Customer's Securities, and which are: | ||||
(1 | ) | made over a telecommunications device; and | ||
(2 | ) | directed to those natural persons specifically authorized to receive such instructions by such | ||
telecommunications device. | ||||
Withdrawal Order means a non-negotiable instrument, other than an Instruction, signed by a | ||||
Customer authorizing the Assured to debit the Customer's account in the amount of funds stated | ||||
therein. | ||||
Written means expressed through letters or marks placed upon paper and visible to the eye. | ||||
For the purposes of these definitions, the singular includes the plural and the plural includes the singular, | ||||
unless otherwise indicated. | ||||
IV. | EXCLUSIONS | |||
1 | . | General Exclusions - Applicable To All Insuring Clauses | ||
This Bond does not cover loss resulting directly or indirectly from: | ||||
a. | riot or civil commotion outside the United States of America and Canada, or any loss due to military, | |||
naval or usurped power, war or insurrection. This Exclusion 1.a., however, shall not apply to loss which | ||||
occurs in transit in the circumstances recited in Insuring Clause 3, provided that when such transit was | ||||
initiated there was no knowledge on the part of any person acting for the Assured of such riot, civil | ||||
commotion, military, naval or usurped power, war or insurrection; | ||||
b. | the effects of nuclear fission or fusion, radioactivity, or chemical or biological contamination; | |||
c. | the loss of potential income. This Exclusion 1.c., however, shall not apply to interest and dividends | |||
accrued to the benefit of the Assured or any Customer prior to the discovery of a covered loss, | ||||
whether or not such accrued interest or dividends have been paid into the account of such Assured or | ||||
Customer as of the discovery of such covered loss; |
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d. | damages of any type for which the Assured is legally liable, except compensatory damages, but not | |||
multiples thereof, arising from a loss covered under this Bond; | ||||
e. | all costs, fees and expenses incurred by the Assured: | |||
(1 | ) | in establishing the existence of or amount of loss covered under this Bond, except for loss covered | ||
under Insuring Clause 8 or 9; or | ||||
(2 | ) | as a party to any legal proceeding, even if such legal proceeding results in a loss covered by this | ||
Bond; | ||||
f. | indirect or consequential loss of any nature, except for loss covered under Insuring Clause 8 or 9. This | |||
Exclusion 1.f., however, shall not apply to interest and dividends accrued to the benefit of the Assured | ||||
or any Customer prior to the discovery of a covered loss, whether or not such accrued interest or | ||||
dividends have been paid into the account of such Assured or Customer as of the discovery of such | ||||
covered loss; | ||||
g. | any violation by the Assured or by any Employee: | |||
(1 | ) | of any law regulating: | ||
i. | the issuance, purchase or sale of securities; | |||
ii. | securities transactions on security or commodity exchanges or the over the counter market; | |||
iii. | investment companies; or | |||
iv. | investment advisors; or | |||
(2 | ) | of any rule or regulation made pursuant to any such law; | ||
h. | the loss or disclosure of confidential information, material or data, while in the care, custody or control | |||
of the Assured, including but not limited to patents, trade secrets, processing methods, customer lists, | ||||
financial information, credit card information, health information, retirement or health savings | ||||
account information, or any similar type of non-public information. This Exclusion 1.h., however, shall | ||||
not apply when such information, material or data is used to support or facilitate the commission of | ||||
any act otherwise covered under this Bond; | ||||
i. | fees, costs, fines, penalties or any other expenses incurred by an Assured which result, directly or | |||
indirectly, from the access to or disclosure of an Assured's or another entity's or person's confidential | ||||
or personal information, including but not limited to patents, trade secrets, processing methods, | ||||
customer lists, financial information, credit card information, health information, retirement or health | ||||
savings account information, or any similar type of non-public information; | ||||
j. | liability resulting from disclosure of or acting on material nonpublic information; | |||
k. | liability assumed by the Assured by agreement under any contract, unless loss under this Bond would | |||
be covered in the absence of such agreement; | ||||
l. | the dishonest acts of any Director who is not an Employee, acting alone or in collusion with others; | |||
m. | any modification, damage, destruction, deletion, or corruption of any application or software program | |||
within the Assured's Network, except for loss covered under Insuring Clause 7; | ||||
n. | a threat or series of threats to: | |||
(1 | ) | gain access to the Assured's Computer System and sell or disclose confidential information | ||
stored within the Assured's Computer System; or | ||||
(2 | ) | modify, damage, destroy, delete, or corrupt any application or software program within the | ||
Assured's Computer System; | ||||
o. | costs or expenses of any independent forensic analysts or network security consultants engaged to | |||
investigate or assess any actual or alleged threat; |
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p. | costs or expenses incurred to identify or remediate application or software program errors or | ||||
vulnerabilities, or costs to update, replace, restore, upgrade, maintain, or improve a Computer | |||||
System; | |||||
q. | costs or expenses incurred to replace, restore, recreate, collect, or recover any application or software | ||||
program; or | |||||
r. | Cryptocurrency. | ||||
2 | . | Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clause 1 | |||
This Bond does not cover loss resulting directly or indirectly from: | |||||
a. | the acts of an Employee, except for loss covered under: | ||||
(1 | ) | Insuring Clause 2 or 3 which results directly from misplacement, mysterious unexplainable | |||
disappearance, or damage or destruction of Property; or | |||||
(2 | ) | Insuring Clause 11; | |||
b. | the surrender of a ransom or extortion payment away from the Assured's premises as a result of a | ||||
threat to do bodily harm to any person, or to do damage to the premises or Property of the Assured, | |||||
except for loss covered under Insuring Clause 3.b.; | |||||
c. | payments made or withdrawals from any account involving erroneous credits to such account, unless | ||||
such payments or withdrawals are physically received by such depositor or representative of such | |||||
depositor who is within the premises of the Assured at the time of such payment or withdrawal; | |||||
d. | any Uncertificated Security, except for loss covered under Insuring Clause 7; | ||||
e. | the loss of Property while: | ||||
(1 | ) | in the mail; | |||
(2 | ) | in the custody of a Transportation Company, except for loss covered under Insuring Clause 3; | |||
or | |||||
(3 | ) | located on the premises of an armored motor vehicle operator; | |||
f. | damages resulting from any civil, criminal or other legal proceeding in which the Assured is | ||||
adjudicated to have engaged in Racketeering activity; | |||||
g. | the failure for any reason of a financial or depository institution, its receiver or other liquidator to pay | ||||
or deliver funds or Property to the Assured, except for loss of Securities covered under Insuring | |||||
Clause 2; | |||||
h. | instructions issued by a Customer to the Assured when such instructions are made, sent, or | ||||
originated by a natural person authorized by the Customer to make, send, or originate any | |||||
instructions; | |||||
i. | the use of credit, debit, charge, access, convenience, identification, cash management, or other cards | ||||
whether such cards were issued, or purport to have been issued, by the Assured or by any entity other | |||||
than the Assured; | |||||
j. | Items of Deposit which are not finally paid for any reason including, but not limited to, Forgery or | ||||
any other fraud, except for loss covered under Insuring Clause 10; | |||||
k. | the acts of any agent, broker, factor, commission merchant, independent contractor, intermediary, | ||||
finder, or other representative of the same general character of the Assured; or | |||||
l. | the acts of any employee, agent, broker, factor, commission merchant, independent contractor, | ||||
intermediary, finder, or other representative of the same general character of any third party, while | |||||
conducting business with the Assured on behalf of such third party. |
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3 | . | Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clauses 1, 4, and 5 | |||
This Bond does not cover loss resulting directly or indirectly from: | |||||
a. | the complete or partial non-payment of or default on any loan whether such loan was procured in good | ||||
faith or through trick, artifice, fraud, or false pretenses, except for loss covered under Insuring Clause | |||||
7 | ; | ||||
b. | any Forgery or any alteration, except for loss covered under Insuring Clause 7; or | ||||
c. | any counterfeit, except for loss covered under Insuring Clause 6. | ||||
4 | . | Specific Exclusions - Applicable To Insuring Clause 7 | |||
This Bond does not cover loss resulting directly or indirectly from: | |||||
a. | any transfer, payment, or delivery of Money or Securities: | ||||
(1 | ) | authorized by an Employee; or | |||
(2 | ) | arising out of any misrepresentation received by any Employee, agent, broker, factor, commission | |||
merchant, independent contractor, intermediary, finder, or other representative of the same | |||||
general character of the Assured, | |||||
whether such transfer, payment, or delivery was made in good faith or as a result of trick, artifice, fraud, | |||||
or false pretenses; | |||||
b. | forged, altered or fraudulent Negotiable Instruments, Securities, documents or written | ||||
instruments used as source documentation for input into a Computer System; | |||||
c. | any investment in Securities, or ownership in any corporation, partnership, real property, commodity | ||||
or similar instrument, whether or not such investment is genuine or fraudulent; | |||||
d. | mechanical failure, faulty construction, error in design, latent defect, wear and tear, gradual | ||||
deterioration, electrical disturbance, the Assured's Network failure or breakdown, any malfunction | |||||
or error in programming, or error or omission in processing; | |||||
e. | entries or changes made by a natural person with authorized access to the Assured's Network who | ||||
acts in good faith on instructions, unless such instructions are given to that person by a software | |||||
contractor or its partner, officer, or employee authorized to design, develop, prepare, supply, service, | |||||
write or implement programs for the Assured's Network; or | |||||
f. | entries or changes made at an Electronic Funds Transfer System or a Customer | ||||
Communication System by a: | |||||
(1 | ) | Customer; or | |||
(2 | ) | natural person with authorized access to the Customer's authentication credentials or | |||
mechanism. | |||||
5 | . | Specific Exclusions - Applicable To Insuring Clause 11 | |||
This Bond does not cover loss resulting directly or indirectly from any Voice Initiated Transfer | |||||
Instruction from a: | |||||
(1 | ) | Customer; or | |||
(2 | ) | natural person with authorized access to the Customer's verification credentials or mechanism. |
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V. | CONDITIONS AND LIMITATIONS | |||
1 | . | Anti-Bundling | ||
If any Insuring Clause requires that an enumerated type of document be fraudulently materially altered or | ||||
a Counterfeit Original, or contain a signature which is a Forgery or obtained through trick, artifice, | ||||
fraud, or false pretenses, the material alteration or Counterfeit Original or fraudulent signature must be | ||||
on or of the enumerated document itself not on or of some other document submitted with, accompanying | ||||
or incorporated by reference into the enumerated document. | ||||
2 | . | Change Or Modification | ||
No change in or modification of this Bond shall be effective except when made by written endorsement to | ||||
this Bond signed by an authorized representative of the Company. | ||||
If this Bond is for a sole Assured, no change or modification which would adversely affect the rights of the | ||||
Assured shall be effective prior to sixty (60) days after written notice has been furnished by the acting | ||||
party to the U.S. Securities and Exchange Commission. | ||||
If this Bond is for joint Assureds, no change or modification which would adversely affect the rights of any | ||||
Assured shall be effective prior to sixty (60) days after written notice has been furnished by the Company | ||||
to all Assureds and to the U.S. Securities and Exchange Commission. | ||||
3 | . | Conformity | ||
If any time period limitation within this Bond is prohibited by any law controlling this Bond's construction, | ||||
such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided | ||||
by such law. | ||||
4 | . | Cooperation Of Assured | ||
At the Company's request and at reasonable times and places designated by the Company, the Assured | ||||
shall: | ||||
a. | submit to examination by the Company and subscribe to the same under oath; | |||
b. | produce for the Company's examination all pertinent records; and | |||
c. | cooperate with the Company in all matters pertaining to the loss. | |||
The Assured shall execute all papers and render all assistance to secure to the Company the rights and | ||||
causes of action provided for under this Bond. The Assured shall do nothing after discovery of any loss to | ||||
prejudice such rights or causes of action. | ||||
5 | . | Covered Property | ||
This Bond shall apply to loss of Property: | ||||
a. | owned by the Assured; | |||
b. | held by the Assured in any capacity; or | |||
c. | for which the Assured is legally liable. | |||
This Bond shall be for the sole use and benefit of the Assured. | ||||
6 | . | Deductible Amount | ||
The Company shall be liable under this Bond only for the amount by which any Single Loss is greater than | ||||
the applicable Deductible Amount as stated in Item 2 of the Declarations. | ||||
There shall be no deductible applicable to any loss sustained by any Assured and covered under Insuring | ||||
Clause 1. |
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7 | . | Discovery | |||
This Bond applies only to loss first discovered by a Director during the Bond Period. Discovery occurs at | |||||
the earlier of a Director learning of: | |||||
a. | facts which may subsequently result in a loss of a type covered by this Bond; or | ||||
b. | an actual or potential claim in which it is alleged that the Assured is liable to a third party, | ||||
regardless of when the act or acts causing or contributing to such loss occurred, even though the amount of | |||||
loss does not exceed the applicable Deductible Amount, or the exact amount or details of loss may not then | |||||
be known. | |||||
8 | . | Limit Of Liability | |||
The payment of any loss under this Bond shall not reduce the liability of the Company for other losses | |||||
whenever sustained, provided that: | |||||
a. | the Company's liability for each Single Loss shall not exceed the applicable Single Loss Limit Of | ||||
Liability as stated in Item 2 of the Declarations or as set forth under General Agreement 1, and shall not | |||||
be cumulative in amounts from year to year or from Bond Period to Bond Period; | |||||
b. | if a Single Loss is covered under more than one Insuring Clause, the maximum payable shall not | ||||
exceed the largest applicable Single Loss Limit Of Liability; and | |||||
c. | the Company's liability for loss or losses sustained by more than one Assureds, or all Assureds, shall | ||||
not exceed the total amount for which the Company would be liable under this Bond if such loss or | |||||
losses were sustained by any one Assured. | |||||
9 | . | Notice To Company - Proof - Legal Proceedings Against Company | |||
a. | The Assured shall give the Company notice at the earliest practicable moment, not to exceed sixty (60) | ||||
days after discovery of a loss, in an amount that is in excess of 50% of the applicable Deductible Amount, | |||||
as stated in Item 2 of the Declarations. | |||||
b. | The Assured shall furnish to the Company proof of loss, duly sworn to, with full particulars, within six | ||||
(6) months after such discovery. | |||||
c. | Certificated Securities listed in a proof of loss shall be identified by certificate or bond numbers, if | ||||
issued with them. | |||||
d. | Legal proceedings for the recovery of any loss under this Bond shall not be brought prior to the | ||||
expiration of sixty (60) days after the proof of loss is filed with the Company or after the expiration of | |||||
twenty-four (24) months from the discovery of such loss. | |||||
e. | This Bond affords coverage only in favor of the Assured. No claim, suit, action or legal proceeding | ||||
shall be brought under the Bond by anyone other than the Assured. | |||||
f. | All such notices shall be given in writing to one of the following addresses: | ||||
(1 | ) | [email protected]; or | |||
(2 | ) | Attn: Chubb Claims Department | |||
Chubb | |||||
P.O. Box 5122 | |||||
Scranton, PA 18505 | |||||
g. | All other notices to the Company under this Bond shall be given in writing to the following address: | ||||
(1 | ) | [email protected]; or |
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(2 | ) | Attn: Chubb Underwriting Department | |||
Chubb | |||||
202B Hall's Mill Road | |||||
Whitehouse Station, NJ 08889 | |||||
All notices described above shall be effective on the date of receipt by the Company. | |||||
10 | . | Other Insurance | |||
a. | Coverage under this Bond shall apply only as excess over any other valid and collectible insurance, | ||||
indemnity or suretyship obtained by or on behalf of: | |||||
(1 | ) | the Assured; | |||
(2 | ) | a Transportation Company; or | |||
(3 | ) | another entity on whose premises the loss occurred or which employed the person causing the loss | |||
or engaged the messenger conveying the Property involved. | |||||
b. | Solely with respect to Insuring Clause 7, in the event of a loss covered under this Bond and also covered | ||||
under other valid and collectible insurance issued by the Company, or a parent, subsidiary or affiliate | |||||
of the Company to the Assured, the Single Loss Limit Of Liability under this Bond shall be reduced by | |||||
any payment under any other such valid and collectible insurance and only the remainder, if any, shall | |||||
be applicable to such loss covered hereunder. | |||||
11 | . | Securities Settlement | |||
In the event of a loss of Securities covered under this Bond, the Company may, at its sole discretion, | |||||
purchase replacement Securities, tender the value of the Securities in Money, or issue its indemnity to | |||||
effect replacement Securities. | |||||
The indemnity required from the Assured under the terms of this Section against all loss, cost or expense | |||||
arising from the replacement of Securities by the Company's indemnity shall be: | |||||
a. | for Securities having a value less than or equal to the applicable Deductible Amount - one hundred | ||||
(100%) percent; | |||||
b. | for Securities having a value in excess of the applicable Deductible Amount but within the Single Loss | ||||
Limit Of Liability - the percentage that the Deductible Amount bears to the value of the Securities; | |||||
or | |||||
c. | for Securities having a value greater than the applicable Single Loss Limit Of Liability - the percentage | ||||
that the Deductible Amount and portion in excess of the Single Loss Limit Of Liability bears to the value | |||||
of the Securities. | |||||
The value referred to in Sections 11.a., b., and c. is the value in accordance with Section 14., Valuation, | |||||
regardless of the value of such Securities at the time the loss under the Company's indemnity is sustained. | |||||
The Company is not required to issue its indemnity for any portion of a loss of Securities which is not | |||||
covered by this Bond, however, the Company may do so as a courtesy to the Assured in its sole discretion. | |||||
The Assured shall pay the proportion of the Company's premium charge for the Company's indemnity as | |||||
set forth in Sections 11.a., b., and c. No portion of the Single Loss Limit Of Liability shall be used as payment | |||||
of premium for any indemnity purchased by the Assured to obtain replacement Securities. | |||||
12 | . | Subrogation - Assignment - Recovery | |||
In the event of a payment under this Bond, the Company shall be subrogated to all of the Assured's rights | |||||
of recovery against any person or entity to the extent of such payment. On request, the Assured shall | |||||
deliver to the Company an assignment of the Assured's rights, title and interest and causes of action | |||||
against any person or entity to the extent of such payment. |
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Financial Institution Bond | ||||
For Investment Companies | ||||
Recoveries, whether effected by the Company or by the Assured, shall be applied net of the expense of | ||||
such recovery, in the following order: | ||||
a. | first, to the satisfaction of the Assured's covered loss which would otherwise have been paid but for | |||
the fact that it is in excess of the Single Loss Limit Of Liability; | ||||
b. | second, to the Company in satisfaction of amounts paid in settlement of the Assured's claim; | |||
c. | third, to the Assured in satisfaction of the applicable Deductible Amount; and | |||
d. | fourth, to the Assured in satisfaction of any loss suffered by the Assured which was not covered under | |||
this Bond. | ||||
Recovery from reinsurance or indemnity of the Company shall not be deemed a recovery under this Section. | ||||
13 | . | Termination | ||
a. | If the Bond is for a sole Assured, it shall not be terminated unless written notice shall have been given | |||
by the acting party to the affected party and to the U.S. Securities and Exchange Commission not less | ||||
than sixty (60) days prior to the effective date of such termination. | ||||
b. | If the Bond is for a joint Assured, it shall not be terminated unless written notice shall have been given | |||
by the acting party to the affected party, and by the Company to all Assureds and to the U.S. Securities | ||||
and Exchange Commission, not less than sixty (60) days prior to the effective date of such termination. | ||||
c. | If any Director, not acting in collusion with an Employee, discovers any dishonest or fraudulent act | |||
committed by such Employee, whether in the employment of the Assured or otherwise, and whether | ||||
against the Assured or any other person or entity, the Assured: | ||||
i. | shall immediately remove such Employee from a position that would enable such Employee to | |||
cause the Assured to suffer a loss covered by this Bond; and | ||||
ii. | within forty-eight (48) hours of discovering an Employee has committed any dishonest or | |||
fraudulent act, shall notify the Company of such action and provide full particulars of such | ||||
dishonest or fraudulent act. | ||||
d. | This Bond terminates as to any Employee sixty (60) days after receipt by each Assured and the U.S. | |||
Securities and Exchange Commission of written notice from the Company of its decision to terminate | ||||
this Bond as to any Employee. | ||||
14 | . | Valuation | ||
a. | Books Of Account Or Other Records | |||
The value of any loss of Property consisting of books of account or other records used by the Assured | ||||
in the conduct of its business shall be the amount paid by the Assured for blank books, blank pages, | ||||
or other materials which replace the lost books of account or other records, plus the cost of labor paid | ||||
by the Assured for the actual transcription or copying of data to reproduce such books of account or | ||||
other records. | ||||
b. | Money | |||
Any loss of Money, or loss payable in Money, shall be paid in the Money of the United States of | ||||
America or the dollar equivalent of it, determined by the free market rate of exchange in effect at the | ||||
time of discovery of such loss. | ||||
c. | Other Property | |||
The value of any loss of Property, except as otherwise provided for in this Section 14., shall be the | ||||
actual cash value or the cost of repairing or replacing such Property with Property of like quality and | ||||
value, whichever is less. |
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Financial Institution Bond | ||
For Investment Companies | ||
d. | Securities | |
The value of any loss of Securities shall be the average market value of such Securities on the | ||
business day immediately preceding discovery of such loss, provided that the value of any Securities | ||
replaced by the Assured, with the consent of the Company and prior to the settlement of any claim for | ||
them, shall be the actual market value at the time of replacement. In the case of a loss of interim | ||
certificates, warrants, rights or other Securities, the production of which is necessary to the exercise | ||
of subscription, conversion, redemption or deposit privileges, the value of them shall be the market | ||
value of such privileges immediately preceding their expiration if the loss is not discovered until after | ||
their expiration. If no market price is quoted for such Securities or for such privileges, the value shall | ||
be fixed by agreement of the parties. | ||
VI. | COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS | |
This Bond does not apply to the extent that trade or economic sanctions law or other similar laws or | ||
regulations prohibit the Company from providing insurance. |
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NEW YORK AMENDATORY ENDORSEMENT | ||||||
Named Assured | Endorsement Number | |||||
AETOS LONG/SHORT STRATEGIES FUND LLC | 1 | |||||
Bond Number | Bond Period | Effective Date of Endorsement | ||||
J06033374 | 08-22-2024 | to | 08-22-2025 | August 22, 2024 | ||
Issued By | ||||||
Federal Insurance Company | ||||||
THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY. | ||||||
This endorsement modifies insurance provided under the following: | ||||||
FINANCIAL INSTITUTION BOND FOR INVESTMENT COMPANIES | ||||||
In consideration of the premium charged, it is agreed that: | ||||||
1 | . | Section V. CONDITIONS AND LIMITATIONS of this Bond is amended as follows: | ||||
A. | Paragraph a of Subsection 9. Notice To Company - Proof- Legal Proceedings Against Company is | |||||
deleted and replaced with the following: | ||||||
a. The Assured shall give the Company notice at the earliest practicable moment, not to exceed | ||||||
sixty (60) days after discovery of a loss, as long as such notification does not impede the | ||||||
Company's investigation of any claim, in an amount that is in excess of 50% of the applicable | ||||||
Deductible Amount, as stated in Item 3 of the Declarations. | ||||||
B. | Subsection 13. Termination is amended by adding the following: | |||||
The Company shall refund the unearned premium computed at customary short rates if this Bond is | ||||||
terminated by the Assured. Under any other circumstances, the refund shall be computed pro rata. | ||||||
Payment or tender of any unearned premium by the Company shall not be a condition precedent to | ||||||
the effectiveness of such termination, but such payment shall be made as soon as practicable. | ||||||
The Company shall mail or deliver a copy of any notice of termination of this Bond to the agent or | ||||||
broker of record, if any, at its last address known to the Company. Any notice of termination by the | ||||||
Company shall state the specific reason(s) for, and the effective date of such termination. | ||||||
2 | . | The following section is added to this Bond: | ||||
NONRENEWAL AND CONDITIONAL RENEWAL | ||||||
(A) If the Company (a) nonrenews this Bond, or (b) conditions its renewal upon a change in limits, | ||||||
change in the type of coverage, reduction of coverage, increased deductible or addition of exclusions, | ||||||
or upon increased premiums in excess of ten percent (10%) of the expiring rate (exclusive of | ||||||
premiums attributable to increased exposure subsequent to issuance of this Bond or at the request of | ||||||
the Assured or as a result of experience rating or retrospective rating), the Company shall provide | ||||||
notice to the Assured as follows: | ||||||
(1) The Company will mail or deliver to the Assured between sixty (60) days and one hundred | ||||||
twenty (120) days advance written notice containing the specific reason or reasons for | ||||||
nonrenewal or conditional renewal, the amount of any premium increase, the nature of any other | ||||||
proposed changes and the Assured's rights, if any, to coverage and the duration of such | ||||||
coverage. Such notice will not be provided in the event that the Assured or its agent or broker of | ||||||
record has mailed or delivered written notice that this Bond has been replaced or is no longer | ||||||
desired. Additionally, if the Company provides notice of nonrenewal and subsequently extends | ||||||
the Bond Period for ninety (90) days or less, no additional notice of nonrenewal will be given. | ||||||
(2) If before the expiration date in Item 1 of the Declarations the Company provides an incomplete or | ||||||
late conditional renewal notice, coverage hereunder will remain in effect on the same terms and | ||||||
conditions and at the lower of the current rates or the rates for the prior Bond Period until sixty | ||||||
(60) days after proper notice is mailed, unless the Assured elects to cancel sooner, If however, |
PF-56008 (08/21)
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the Assured elects to accept the terms, conditions and rates of the conditional renewal notice |
and renews this Bond on that basis, then such terms, conditions and rates will govern upon (a) |
the expirations of such sixty (60) day period, if notice of conditional renewal was provided to the |
Assured less than thirty (3) days before this Bond expiration date; or (b) this Bond's expiration |
date, if notice of conditional renewal was provided to the Assured at least thirty (30) days before |
this Bond's expiration date. |
(3) If the Bond Period is extended due to late notice of nonrenewal or conditional renewal, then the |
Limits of Liability will be increased in proportion to the period for which the Bond Period is |
extended, provided that if the Assured accepts the terms, conditions and rates of a conditional |
renewal notice, such increase will be inapplicable and, instead, new Limits of Liability applicable |
to the renewal period shall become effective as of the inception date of the renewal Bond. |
(4) If the Company does not provide notice of nonrenewal or conditional renewal before the Bond |
expiration date set forth in Item 1 of the Declarations, then the Assured may purchase coverage |
on the same terms and conditions as the Bond for another Bond Period or for the immediately |
preceding Bond Period. |
(B) The Company shall mail or deliver a copy of any notice of nonrenewal of this Bond by the Company to |
the agent or broker of record, if any, at its last address known to the Company. Any notice of |
nonrenewal by the Company shall state the specific reason(s) for, and the effective date of, such |
nonrenewal. |
This Bond will be deemed to have been amended to the extent necessary to effect the purposes and intent of this |
Amendatory Endorsement. |
The regulatory requirements set forth in this Amendatory Endorsement shall supersede and take precedence over |
any provisions of this Bond or any endorsement to this Bond, whenever added, that are inconsistent with or |
contrary to the provisions of this Amendatory Endorsement, unless such Bond or endorsement provisions comply |
with the applicable insurance laws of the State of New York. |
The title and any headings in this endorsement/rider are solely for convenience and form not part of the terms |
and conditions of coverage. |
All other terms, conditions and limitations of this Bond shall remain unchanged. |
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RENEWAL BOND ENDORSEMENT | |||||
Named Assured | Endorsement Number | ||||
AETOS LONG/SHORT STRATEGIES FUND LLC | 2 | ||||
Bond Number | Bond Period | Effective Date of Endorsement | |||
J06033374 | 08-22-2024 | to | 08-22-2025 | August 22, 2024 | |
Issued By | |||||
Federal Insurance Company | |||||
THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY. | |||||
In consideration of the premium charged, it is agreed that: | |||||
(1) This Bond together with all endorsements attached herein (the "Renewal Bond"), has been issued as a renewal | |||||
of 82047591. issued to Aetos Long/Short Strategies Fund LLC by | , 82047591 (the "Expiring Bond"). The terms | ||||
and conditions of either the Renewal Bond or the Expiring Bond, whichever in its entirety is more favorable to | |||||
the Assured, shall govern with respect to any loss, provided that in all events, any applicable Deductible and | |||||
Single Loss Limit Of Liability of the Renewal Bond shall apply to any such loss. | |||||
(2) In the event of any subsequent renewal of this Bond, this endorsement shall not be included in such | |||||
subsequent renewal and all obligations of the Company under this endorsement shall terminate as of 08-22- | |||||
2025 and be of no further force and effect. | |||||
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and | |||||
conditions of coverage. | |||||
All other terms, conditions and limitations of this Bond shall remain unchanged |
PF-51469 (02/19)
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FRAUDULENT TRANSFER INSTRUCTION ENDORSEMENT | |||||||
Named Assured | Endorsement Number | ||||||
AETOS LONG/SHORT STRATEGIES FUND LLC | 3 | ||||||
Bond Number | Bond Period | Effective Date of Endorsement | |||||
J06033374 | 08-22-2024 | to 08-22-2025 | August 22, 2024 | ||||
Issued By | |||||||
Federal Insurance Company | |||||||
THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY. | |||||||
This endorsement modifies insurance provided under the following: | |||||||
FINANCIAL INSTITUTION BOND FOR INVESTMENT COMPANIES | |||||||
In consideration of the premium charged, it is agreed that solely with respect to coverage afforded under this | |||||||
Endorsement, this Bond is amended as follows: | |||||||
(1) Item 2., Single Loss Limits Of Liability - Deductible Amounts, of the Declarations is amended to include the | |||||||
following: | |||||||
Insuring Clause | Single Loss Limit of Liability | Deductible Amount | |||||
Fraudulent Transfer Instruction | $ | 1,000,000 | $ | 25,000 | |||
(2) The following Insuring Clause is added: | |||||||
14. Fraudulent Transfer Instruction | |||||||
Loss resulting directly from the Assured having, in good faith, transferred, paid, or delivered Money or | |||||||
Securities in reliance upon a Transfer Instruction that purports, and reasonably appears, to have | |||||||
originated from: | |||||||
a. | the Customer; | ||||||
b. | an Employee acting on instructions of such Customer; or | ||||||
c. | a financial institution acting on behalf of such Customer with authority to make such instructions, | ||||||
but which Transfer Instruction was, in fact, fraudulently issued without the knowledge of the Assured, | |||||||
Employee, or Customer. | |||||||
As a condition precedent to coverage under this Insuring Clause 14, the: | |||||||
i. | sender of the Transfer Instruction must have authenticated such Transfer Instruction with the | ||||||
Customer's authentication credentials or mechanism; | |||||||
ii. | Employee acting on the Transfer Instruction must obtain Verification prior to any single | ||||||
transfer, payment, or delivery of funds in excess of the Deductible Amount set forth in Paragraph (1) | |||||||
of this Endorsement; and | |||||||
iii. | Assured shall assert any available claims, offsets, or defenses against such Customer, any financial | ||||||
institution, or any other party to the transaction. | |||||||
(3) The Definition of Customer is deleted and replaced with the following: | |||||||
Customer means any shareholder of an Assured which has a written agreement with the Assured to | |||||||
transfer such shareholder's Money or Securities through a Voice Initiated Funds Transfer | |||||||
Instruction or a Transfer Instruction. |
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(4) The following Definitions are added: | ||
Telefacsimile means a system of transmitting a facsimile of a tangible document by electronic signals over | ||
telephone lines to a piece of equipment maintained for the specific purpose of receiving such signals and | ||
printing such facsimile on a tangible medium. | ||
Transfer Instruction means those instructions, other than any Voice Initiated Funds Transfer | ||
Instruction, which authorize the transfer of Money in a Customer's account, or of a Customer's | ||
Securities, and which are: | ||
a. | transmitted to the Assured via: | |
i. | any electronic instruction, including an e-mail, that is delivered through an Electronic | |
Communication System and that is capable of retention by the recipient at the time of receipt; | ||
ii. | telex, or Telefacsimile instruction; or | |
iii. | automated telephone system; and | |
b. | received by an Employee specifically authorized by the Assured to receive and act upon such | |
instructions. | ||
Verification means an Employee: | ||
a. | attempted to verify the authenticity of such Transfer Instruction by communicating with the | |
Customer, or natural person purporting to be the Customer via any communication method, other | ||
than e-mail, prior to any single transfer, payment, or delivery of funds, and contemporaneously | ||
documented the communication method utilized and the result of such attempt in writing; and | ||
b. | contemporaneously documented the use of the Customer's authentication credentials or mechanism. | |
(5) Exclusion 2.a. is deleted and replaced with the following: | ||
a. | the acts of an Employee, except for loss covered under: | |
i. | Insuring Clause 2 or 3 which results directly from misplacement, mysterious unexplainable | |
disappearance, or damage or destruction of Property; or | ||
ii. | Insuring Clause 11 or 14; | |
(6) The following Exclusion is added: | ||
This Bond does not cover loss resulting directly or indirectly from any Transfer Instruction from a: | ||
a. | Customer; or | |
b. | natural person with authorized access to the Customer's authentication credentials or mechanism. | |
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and | ||
conditions of coverage. | ||
All other terms, conditions and limitations of this Bond shall remain unchanged. |
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UNAUTHORIZED SIGNATURE ENDORSEMENT | ||||||
Named Assured | Endorsement Number | |||||
AETOS LONG/SHORT STRATEGIES FUND LLC | 4 | |||||
Bond Number | Bond Period | Effective Date of Endorsement | ||||
J06033374 | 08-22-2024 | to | 08-22-2025 | 08-22-2024 | ||
Issued By | ||||||
Federal Insurance Company | ||||||
THIS ENDORSEMENT CHANGES THE BOND. PLEASE READ IT CAREFULLY. | ||||||
This endorsement modifies insurance provided under the following: | ||||||
FINANCIAL INSTITUTION BOND FOR INVESTMENT COMPANIES | ||||||
In consideration of the premium charged, it is agreed that solely with respect to coverage afforded under this | ||||||
Endorsement this Bond is amended as follows: | ||||||
(1) Item 2., Single Loss Limits of Liability - Deductible Amounts, of the Declarations is amended to include the | ||||||
following: | ||||||
Insuring Clause | Single Loss Limit of Liability | Deductible Amount | ||||
Unauthorized Signature | $ | 1,000,000 | $ | 25,000 | ||
(2) The following Insuring Clause is added: | ||||||
Unauthorized Signature | ||||||
Loss resulting directly from the Assured having accepted, paid, or cashed any check or Withdrawal Order | ||||||
made or drawn on or against the account of a Customer, which bears the signature or endorsement of one | ||||||
other than a person whose name and signature is on file with the Assured as signatory on such account. | ||||||
As a condition precedent to coverage under this Insuring Clause, the Assured shall have on file signatures of | ||||||
all persons who are signatories on such account. | ||||||
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms and | ||||||
conditions of coverage. | ||||||
All other terms, conditions and limitations of this Bond shall remain unchanged. |
PF-52918 (08/21)
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