Coverage I.1. Computer Fraud
Loss resulting directly from Computer Fraud.
Coverage I.2. Fraudulent Instructions
Loss resulting directly from the Insured or an Investment Adviser having, in good faith, caused a transfer of funds as a result of a
Fraudulent Instruction when the Insured or an Investment Adviser, prior to causing the transfer of the funds, used its best efforts to verify the identity of the person transmitting the instruction; provided that if the instruction is
purported to be from a Customer, the Insured, or an Investment Adviser:
performed a Callback Verification with respect to such instruction; or
followed commercially reasonable Security Procedures applicable to the transaction and instruction.
Such Fraudulent Instruction received and, if applicable, Callback Verification performed, must be either
recorded, logged, or documented by the Insured or an Investment Adviser.
I.3. Restoration Expenses
Restoration Expenses incurred by the Insured or an Investment Adviser and
resulting from a Computer Violation by someone other than an Employee.
UNCOLLECTIBLE ITEMS OF DEPOSIT
Loss, including dividends and interest accrued not to exceed 15% of the value of each Item of Deposit that is deposited, resulting
directly from the Insured or Investment Adviser having credited an account of a customer, shareholder or subscriber on the faith of any Items of Deposit that prove to be uncollectible, provided that the crediting of such account
redemptions or withdrawals to be permitted;
shares to be issued; or
It is a condition precedent to coverage under this Insuring Agreement that the Insured or Investment Adviser hold funds represented in
Items of Deposit for the maximum number of days allowable under Regulation CC before permitting any redemptions or withdrawals, or issuing any shares or paying any dividends with respect to such Items of Deposit.
Items of Deposit will not be deemed to be uncollectible until the Insureds or Investment Advisers standard collection
procedures have failed.
This Insuring Agreement applies to Insureds with exchange privileges if all funds in the exchange program are
insured by the Company for Uncollectible Items of Deposit. Regardless of the number of transactions between funds, the maximum number of days allowable under Regulation CC begins from the date a deposit was first credited to any fund in the
If an Insured or Investment Adviser, while this bond is in force, adds additional Employees other than by consolidation or merger
with, or purchase or acquisition of the assets, assets under management or liabilities of, another institution, such Employees will automatically be covered hereunder from the date of such addition without the requirement of notice to the
Company or the payment of additional premium for the remainder of the Policy Period as set forth in ITEM 2 of the Declarations.
IVBB-16001 Ed. 01-16
© 2016 The Travelers
Indemnity Company. All rights reserved.
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