| to meet its obligations, including its obligations to its partners
other than to such general partner(s), then the Financial Interest
in the Insured, as above defined, of such general partner(s) shall
be reduced in an amount necessary, or eliminated if need be, in
order to enable the Insured upon payment of loss under this
bond to meet such obligations, to the extent that such payment
will enable the Insured to meet such obligations, without any
benefit accruing to such general partner(s) from such payment;
and
(2) as respects limited partners the value of such limited partner’s(’)
investment in the Insured.
(h) Forgery means the signing of the name of another person or
organization with intent to deceive; it does not mean 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.
(i) Guarantee means a written undertaking obligating the signer to pay
the debt of another to the Insured or its assignee or to a financial institution from
which the Insured has purchased participation in the debt, if the debt is not paid
in accordance with its terms.
(j) Instruction means a written order to the issuer of an Uncertificated
Security requesting that the transfer, pledge, or release from pledge of the
Uncertificated Security specified be registered.
(k) 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 upon compliance with the conditions
specified in the Letter of Credit.
(l) Money means a medium of exchange in current use authorized or
adopted by a domestic or foreign government as a part of its currency.
(m) Negotiable Instrument means any writing
(1) signed by the maker or drawer; and
(2) containing any 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; and
(3) is payable on demand or at a definite time; and
(4) is payable to order or bearer.
(n) Partner means a natural person who
(1) is a general partner of the Insured, or
(2) is a limited partner and an Employee (as defined in Section
1(e)(1) of the bond) of the Insured.
(o) Property means Money, Certificated Securities, Uncertificated
Securities of any Federal Reserve Bank of the United States, Negotiable
Instruments, Certificates of Deposit, documents of title, Acceptances,
Evidences of Debt, security agreements, Withdrawal Orders, certificates of
origin or title, Letters of Credit, insurance policies, abstracts of title, deeds and
mortgages on real estate, revenue and other stamps, tokens, unsold state
lottery tickets, books of account and other records whether recorded in writing
or electronically, gems, jewelry, precious metals of all kinds and in any form,
and tangible items of personal property which are not herein before
enumerated.
(p) Statement of Uncertificated Security means a written statement of the
issuer of an Uncertificated Security containing:
(1) a description of the Issue of which the Uncertificated Security is a
part;
(2) the number of shares or units:
(a) transferred to the registered owner;
(b) pledged by the registered owner to the registered
pledgee;
(c) released from pledge by the registered pledgee;
(d) registered in the name of the registered owner on the date
of the statement; or
(e) subject to pledge on the date of the statement;
(3) the name and address of the registered owner and registered
pledgee;
(4) a notation of any liens and restrictions of the issuer and any
adverse claims to which the Uncertificated Security is or may be
subject or a statement that there are none of those liens,
restrictions or adverse claims; and
(5) the date:
(a) the transfer of the shares or units to the new registered
owner of the shares or units was registered;
(b) the pledge of the registered pledgee was registered, or
(c) of the statement, if it is a periodic or annual statement.
(q) Transportation Company means any organization which provides its
own or leased vehicles for transportation or which provides freight forwarding
or air express services.
(r) Uncertificated Security means a share, participation or other interest in
property of or an enterprise of the issuer or an obligation of the issuer, which is:
(1) not represented by an instrument and the transfer of which is
registered upon 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.
(s) Withdrawal Order means a non-negotiable instrument, other than an
Instruction, signed by a customer of the Insured authorizing the Insured to debit
the customer’s account in the amount of funds stated therein.
EXCLUSIONS
Section 2. This bond does not cover:
(a) loss resulting directly or indirectly from forgery or alteration, except
when covered under Insuring Agreements (A), (D), or (E);
(b) 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 transit in the circumstances recited in Insuring
Agreement (C), 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;
(c) loss resulting directly or indirectly 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;
(d) loss resulting from any 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 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;
(e) loss resulting directly or indirectly from the complete or partial
nonpayment of, or default upon, any loan or transaction involving the Insured
as a lender or borrower, or extension of credit, including the purchase,
discounting or other acquisition of false or genuine accounts, invoices, notes,
agreements or Evidences of Debt, whether such loan, transaction or extension
was procured in good faith or through trick, artifice, fraud or false pretenses,
except when covered under Insuring Agreements (A), (D) or (E);
(f) loss resulting from any violation by the Insured or by any Employee
(1) of law regulating (i) the issuance, purchase or sale of securities,
(ii) securities transactions upon security exchanges or over the
counter market, (iii) investment companies, or (iv) investment
advisers, or
(2) of any rule or regulation made pursuant to any such law, unless
it is established by the Insured that the act or acts which caused the said loss
involved fraudulent or dishonest conduct which would have caused a loss to
the Insured in a similar amount in the absence of such laws, rules or
regulations;
(g) loss resulting directly or indirectly from the failure of a financial or
depository institution, or its receiver or liquidator, to pay or deliver, on demand
of the Insured, funds or Property of the Insured held by it in any capacity, except
when covered under Insuring Agreements (A) or (B)(1)(a);
(h) loss caused by an Employee, except when covered under Insuring
Agreement (A) or when covered under Insuring Agreement (B) or (C) and
resulting directly from misplacement, mysterious unexplainable disappearance
or destruction of or damage to Property;
(i) loss resulting directly or indirectly from transactions in a customer’s
account, whether authorized or unauthorized, except the unlawful withdrawal
and conversion of Money, securities or precious metals, directly from a
customer’s account by an Employee provided such unlawful withdrawal and
conversion is covered under Insuring Agreement (A);
(j) damages resulting from any civil, criminal or other legal proceeding
in which the Insured is alleged to have engaged in racketeering activity except
when the Insured establishes that the act or acts giving rise to such damages
were committed by an Employee under circumstances which result directly in
a loss to the Insured covered by Insuring Agreement (A). For the purposes of
this exclusion, “racketeering activity” is defined in 18 United States Code 1961
et seq., as amended;
(k) loss resulting directly or indirectly from the use or purported use of
credit, debit, charge, access, convenience, identification, cash management or
other cards
(1) in obtaining credit or funds, or
(2) in gaining access to automated mechanical devices which, on
behalf of the Insured, disburse Money, accept deposits, cash
checks, drafts or similar written instruments or make credit card
loans, or
(3) in gaining access to point of sale terminals, customer-bank
communication terminals, or similar electronic terminals of
electronic funds transfer systems,
whether such cards were issued, or purport to have been issued, by the Insured
or by anyone other than the Insured, except when covered under Insuring
Agreement (A);
(l) loss involving automated mechanical devices which, on behalf of the
Insured, disburse Money, accept deposits, cash checks, drafts or similar written
instruments or make credit card loans, except when covered under Insuring
Agreement (A);
Class Code: 2-14057
TSB 5062b 1087 Copyright, The Surety Association of America, 1987 Page 5 of 7 |
