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3600 Glenwood Avenue, #104
Raleigh, NC 27612 |
May 16, 2008
Via EDGAR
U.S. Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549-0506
Re: Triangle Capital Corporation File No. 814-00733
Rule 17g-1(g) Fidelity Bond Filing
Ladies and Gentlemen:
On behalf of Triangle Capital Corporation (the Company), enclosed herewith for filing,
pursuant to Rule 17g-1(g) under the Investment Company Act of 1940, are the following:
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a copy of the fidelity bond covering the Company; |
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a Certificate of the Corporate Secretary of the Company containing the
resolutions of the Board of Directors approving the amount, type, form
and coverage of the Fidelity Bond and a statement as to the period for
which premiums have been paid; and |
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3. |
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the Agreement Regarding Fidelity Bonding dated February 21, 2008 by
and among the Company and Triangle Mezzanine Fund LLLP. |
If you have any questions regarding this submission, please do not hesitate to call me at
(919) 719-4789.
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Very truly yours,
TRIANGLE CAPITAL CORPORATION
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/s/ Steven C. Lilly
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Steven C. Lilly |
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Chief Financial Officer |
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JNSURANCE PROVIDED BY THE FOLLOWING MEMBER GF AMERICAN INTERNATIONAL GROUP, INC. |
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.* |
FINANCIAL INSTITUTION BOND |
STANDARD FORM NO. 14, HEVISED TO OCLOTFLR, 1987 |
ITEM 1. IMARNA OL INSURED [HEREIN CALLED INSURED]: |
TRIANGLE CAPITAL CORPORATION
TRIANGLE MEZZANINE FUND, LLLP |
PRINCIPAL ADDRESS: 3600 GLETMXX) AVENUE |
SUITE 104 RALEIGH,
NC 27612 |
P»NOD: FROM LATFI A.M. ON FEBRUARY 21. 2008 TO 12:01 A.M. ON FEBRUARY 21, 2009 |
TIME. I MONTH, DAY, YEAR) (MONTH. DAV. |
ITEM 3. THE AGGREGATE LIABILITY OF THE UNDERWRITE DURING IHE BOND PERIOD STIALL BE
$5,000,000 |
ITEM 4-. SUBJECT IC SECTIONS 4 AND 11 HAREOL. |
TH* EINGLB LOSS LIMIT OF LIABILIIY IS
$5.000,000 AND THE SINGLE LOSS
DEDUCT*!* IS $25,000 |
PROVIDED, HOWEVE-. IHAI IF ANY AMOUNTS ARE INSERTED BELOW OPPOSITE SOACIFIED INSURING
AGREE>NEI%TS OR COVERAGE, THOSE SMONNIS SHALL BS CANTROLMNG. ANY AMOUNT SET FONH
TS*H>W SHAIR H* PERT OF AND NOI IN ADDICION TO AMOUNTS SET FORTH ABOVE II AN INSURING
AFLF&ENNSNT OR COVERAGE IS TO BE (TFILETE-RF. INSERT NO! COVERED.) |
INSURING AGREEMENT |D»- FORCEPV OR ALTFFTATLOH |
INAUFIRG AOREJ?MCNT IE)- S.ECURITIE& |
OPTFONAL INSURING AGREEMENTS -AND COVERAGES: COMPUTER |
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SINGLE LOSS LIMIT O1 LIABILITY M. I. , LOTA DAAUCTIULE
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$5.000,000 $5.000.000 $25.000$25.000$25,000
F 5, 000 ,000 |
IF *HOT COVERED IS INSTTTD ABOVE OPPOSITE ANY SPECIFIED1
INSUFING A^RSRMENT OR COVERAGE, SUCH INSURING *NI OR COVERAGE AND ANY
OTHER REFERENCE THERETO M IHIS BOND SHALL BE- DEEMED RO BE DTLTLED THEREFROM. |
HTRTI 6- THE LIABILITY OF THE UNDERWRITER IS SUBJAGI TO ME TERMS OF TLI« FOLLOWING RIDERS
ATTACHED HERETO: |
ITEM 6. THE INSURED BY THE ACCEPTANCE OF THIS BOND GIVE* NONCE RO
RHE UNDERWRITER -HRMINATING OR CANCELING PRT OR PNLICYTIESL NC ISL 966-84*24 |
SUCH TERMINATION OR CANCELS LION TO NF. |
SS OL LH+ TIME THIT BOND R>»&OMGS |
AUTHORIZED REPRESENTATIVE |
HUB ROGAL & H08BS OF ATLANTA
INC. 7000 CENTRAL PARKHAY # 700
ATLANTA. GA 30328 |
THE UNDERWRITER, IN CONSIDERATION OF AN AGREED PREMIUM, AND IN RELIANCE UPON ALL STATEMENTS MADE
AND INFORMATION FURNISHED TO THE UNDERWRITER BY THE INSURED IN APPLYING FOR THIS BOND, AND
SUBJECT |
(C] LOSS OF PROPERTY RESULTING DIRECTLY FROM ROBBERY, COMMON-LAW OR STATUTORY LARCENY, THEFT,
MISPLACEMENT, MYSTERIOUS UNEXPLAINABLE DISAPPEARANCE, BEING LOST OR MADE AWAY WITH, AND
DAMAGE THERETO OR DESTRUCTION THEREOF, WHILE THE PROPERTY IS IN TRANSIT ANYWHERE IN THE
CUSTODY OF |
(A) A NATURAL PERSON ACTING AS A MESSENGER OF THE INSURED (OR ANOTHER NATURAL
PERSON ACTING AS MESSENGER OR CUSTODIAN DURING AN EMERGENCY ARISING FROM THE
JNCAPACITY O*F THE ORIGINAL MESSENGER), OR |
|B> A TRANSPORTATION COMPANY AND BEING TRANSPORTED IN AN ARMORED MOTOR VEHICLE, OR |
(C| 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: |
(IL RECORDS, WHETHER RECORDED IN WRITING OR ELECTRONICALLY, AND |
(II) CERTIFICATED SECURITIES ISSUED IN REGISTERED FORRN GND
NOT ENDORSED, OR WITH RESTRICTIVE ENDORSEMENTS, AND |
(III) NEGOTIABLE INSTRUMENTS NOT PAYABLE TO BEARER, OR
NOT ENDORSED, OR WITH RESTRICTIVE ENDORSEMENTS, |
COVERAGE UNDER IHTS INSURING AGREEMENT BEGINS IMMEDIATELY UPON THE RECEIPT OF SUCH PROPERTY BY THE
NATURAL PERSON OR TRANSPORTATION COMPANY AND ENDS IMMEDIATELY UPON DELIVERY TO THE DESIGNATED
RECIPIENT OR ITS AGENT. |
FORGERY OR ALTERATION (D| LOSS RESULTING DIRECTLY
FROM |
(1| FORGERY OR ALTERATION OF. ON OR IN ANY NEGOTIABLE INSTRUMENT (EXCEPT AN
EVIDENCE OF DEBT}. ACCEPTANCE. WITHDRAWAL QFDER, RECEIPT FOR THE WITHDRAWAL OF
PROPERTY, CERTIFICATE OF DEPOSIT OR LETTER OF CREDIT- |
(2) TRANSFERRING, PAYING OR DELIVERING ANY FUNDS OR PROPERTY OR ESTABLISHING ANY
CREDIT |
OR GIVING ANY VALUE ON THE FAITH OF ANY WRITTEN INSTRUCTIONS OR ADVICES DIRECTED
TO THE INSURED AND AUTHORIZING OR ACKNOWLEDGING THE TRANSFER, PAYMENT, DELIVERY OR
RECEIPT OF FUNDS OR PROPERTY, WHICH INSTRUCTIONS OR ADVICES PURPORT TO HAVE BEEN
SIGNED OR ENDORSED BY ANY CUSTOMER OF THE INSURED OR BV ANY FINANCIAL INSTITUTION
BUT WHICH INSTRUCTIONS OR ADVICES EITHER BEAR A SIGNATURE WHICH IS A FORGERY NR
HAVE BEEN ALTERED WITHOUT THE KNOWLEDGE AND CONSENT OF SUCH CUSTOMER OR FINANCIAL
INSTITUTION. |
A MECHANICALLY REPRODUCED FACSIMILE SIGNATURE IS TREATED THE SAME AS A
HANDWRITTEN |
|E} LOSS RESULTING DIRECTLY FROM THE INSURED HAVING, IN GOOD FAITH, FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF OTHERS. |
(1} ACQUIR&D, SOLD OR DELIVERED, OR GIVEN VALUE, EXTENDED CREDIT OR
ASSUMED LIABILITY, ON THE FAITH OF, ANY ORIGINAL |
LA} CERTIFICATED SECURITY, |
(B) DEED, MORTGAGE OR OTHER INSTRUMENT CONVEYING TITLE TO, OR
CREATING OR |
DISCHARGING A LIEN UPON, REAL PROPERTY, |
{C) EVIDENCE OF DEBT,
(d) INSTRUCTION TO A FEDERAL RESERVE BANK OF THE UNITED STATES, OR |
(e) STATEMENT OF UNCERTIFICATED SECURITY OF ANY FEDERA!
RESERVE BANK OF THE |
(I) BEARS A SIGNATURE OF ANY MAKER,
DRAWER, ISSUER, ENDORSER, ASSIGNOR, , TRANSFER AGENT, REGISTRAR,
ACCEPTOR SURETY, GUARANTOR, OR OF PERSON SIGNING IN ANY OTHER
CAPACITY WHICH IS 3 FORGERY, OF |
(II) IS ALTERED,
OR [MI] IS LOST OR
STOLEN; |
(2) GUARANTEED IN WRITING OR WITNESSED ANY SIGNATURE UPON ANY TRANSFER,
ASSIGNMENT, |
BILL OF SALE, POWER OF ATTORNEY. GUARANTEE, OR ANY ITEMS LISTED IN LA)
THROUGH |C)
ABOVE; |
(3) ACQUIRED, SOLD OR DELIVERED, OR GIVEN VALUE, EXTENDED CREDIT OR ASSUMED
LIABILITY, ON |
THE FAITH OF ANY ITEM LISTED IN (A) AND (B) ABOVE WHICH IS A COUNTERFEIT. |
A MECHANICALLY REPRODUCED FACSIMILE SIGNATURE IS TREATED THE SAME AS A
HANDWRITTEN SIGNATURE. |
(F) LOSS RESULTING DIRECTLY FROM THE RECEIPT BY THE INSURED, IN GOOD FAITH, OF ANY
COUNTERFEIT MONEY OF TH* UNITED STATES OF AMERICA, CANADA OR OF ANY OTHER COUNTRY IN
WHICH THE INSURED MAINTAINS A BFANCH OFFICE. |
A, LOSS SUSTAINED BY ANY NOMINEE ORGANIZED BY THE INSURED FOR THE PURPOSE OF HANDLING
CERTAIN OF ITS BUSINESS TRANSACTIONS END COMPRJ&ED EXCLUSIVELY OF ITS EMPLOYEES SHALL,
FOR |
ALL THE PURPOSES OF THIS BOND AND WHETHER OR NOT ANY PARTNER O-F
SUCH NOMINEE IS IMPLICATED IN SUCH LOSS, BE DEEMED TO BE LOSS SUSTAINED BY TRIE
INSURED. |
ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION. MERGER OF PURCHASE OF ASSETS- NOTICE |
B. IF THE INSURED SHALL, WHILE THIS BOND IS IN FORCE, ESTABLISH ANY ADDITIONAL OFFICES, OTHER
THAN |
BY CONSOLIDATION OR MERGER WITH, OR PURCHASE OR ACQUISITION OF ASSETS OR LIABILITIES
OF,
ANOTHER INSTITUTION, SUCH OFFICES SHALL BE AUTOMATICALLY COVERED HEREUNDER FROM THE DATE
OF SUCH ESTABLISHMENT WITHOUT THE REQUIREMENT OF NOTICE TO THE
UNDERWRITER OR THE
PAYMENT OF ADDITIONAL PREMIUM FOR THE REMAINDER OF THE PREMIUM PERIOD, |
IF THE INSURED SHALL, WHILE THIS BOND IS IN FORCE, CONSOLIDATE OR MERGE WITH OR PURCHASE
OR ACQUIRE ASSETS OR LIABILITIES OFR ANOTHER INSTITUTION, THE INSURED SHALL NOT HAVE SUCH
COVERAGE AS IS AFFORDED UNDER THIS BOND FOR LOSS WHICH |
(A) HAS OCCURRED OR WILL OCCUR IN OFFICES O; PREMISES, OR |
(B| HAS BEEN CAUSED OR WILL BE CAUSED TOY AN EMPLOYEE OR
EMPLOYEES OF SUCH |
XI HUE ARISEN OR WILL ARISE OUT OF THE ASSETS OR LIABILITIES ACQUIRED BY
THE INSURED AS. A RESULT OF SUCH CONSOLIDATION, MERGER OR PURCHASE OR
ACQUISITION OF ASSETS OR |
LIABILITIES UNLESS THE INSURED SHALL |
TIL GIVE THE UNDERWRITER WRITTEN NOTICE OF THE PROPOSED CONSOLIDATION,
MERGER |
OR PURCHASE OR ACQUISITION OF ASSETS OR LIABILITIES PRIOR TO THE
PROPOSED
EFFECTIVE DATE OF SUCH ACTION AND |
IN1 OBTAIN THE WRITTEN CONSENT OF THE UNDERWRITER TO EXTEND THE
COVERAGE PROVIDED BY THIS BOND TO SUCH ADDITIONAL OFFICES OR PREMISES.
EMPLOYEES AND OTHER EXPOSURES, AND |
III!) UPON OBTAINING SUCH CONSENT, PAY TO THE UNDERWRITER AN ADDITIONAL
PREMIUM, |
CHANGE OF CONTROL- NOTICE |
C. WHEN THE INSURED LEARNS OF A CHANGE IN CONTROL, IT SHALL GIVE WRITTEN
NOTICE TO THE |
AS USED IN THIS GENERAL AGREEMENT, CONTROL MEANS THE POWER TO DETERMINE THE MANAGEMENT OR POLICY OF
A CONTROLLING HOLDING COMPANY OR THE INSURED BY VIRTUE OF VOTING STOCK OWNERSHIP. A CHANGE IN
OWNERSHIP OF VOTING STOCK WHICH RESULTS IN DIRECT OR INDIRECT OWNERSHIP BV A STOCKHOLDER OR AN
AFFILIATED GROUP OF STOCKHOLDERS OF TEN PERCENT (10%) OR MORE OF SUCH STOCK SHALL BE PRESUMED TO
RESULT IN A CHANGE OF CONTROL FOR THE PURPOSE OF THE REQUIRED NOTICE. |
FAILURE TO GIVE THE REQUIRED NOTICE SHELL RESULT IN TERMINATION OF COVERAGE FOR ANY LOSS INVOLVING
A TRANSFEREE, TO BE EFFECTIVE UPON THE DATE OF THE STOCK TRANSFER. REPRESENTATION OF INSURED D. THE TNSURED REPRESENTS THAT THE INFORMATION FURNISHED IN THE APPLICATION FOT THIS BOND IS COMPLETE, TRUE AND CORRECT. SUCH APPLICATION CONSTITUTES PART OF THIS BOND,
(8/881 4- |
ANY MISREPRESENTATION OMISSION, CONCEALMENT OR INCORRECT STATEMENT OF A MATERIAL FACT, IN
THE APPLICATION OR OTHERWISE, SHALL BE GROUNDS FOR THE RESCISSION OF THIS BOND. |
E. IF TWO OF MORE INAUREDS ARE COVERED UNDER THIS BOND, THE FIRST NAMED INSURED
SHALL SET |
TOR ALL INSUREDS- PAYMENT BY THE UNDERWRITER TO THE FIRST NAMED INSURED OF LOSS SUSTAINED
BY ANY INSURED SHALL FULLY RELEASE THE UNDERWRITER ON ACCOUNT OF SUCH LOSS. IF THE
FIRST
NAMED INSURED CEASES TO BE COVERED UNDER THIS BOND, THE INSURED NEXT
NAMED SHALL
THEREAFTER BE CONSIDERED AS THE FIRST NAMED INSURED, KNOWLEDGE POSSESSED OR
DISCOVERY
MADE BY ANY INSURED SHALL CONSTITUTE KNOWLEDGE 01 DISCOVERY BY ALL
INSUREDS FOR ALL
PURPOSES OF THIS BOND. THE LIABILITY OF THE UNDERWRITER FOR LOSS OR LOSSES SUSTAINED BY ALL
INSUREDS SHALL NOT EXCEED THE AMOUNT FOR WHICH THE UNDERWRITER WOULD HAVE BEEN LIABLE
HAD ELL SUCH LOSS OR LOSSES BEEN SUSTAINED BY ONE INSURED. |
NOTICE OF LEGAL PROCEEDINGS |
AGAINST INSURED-ELECTION TO DEFEND |
F. THE INSURED SHALL NOTIFY THE UNDERWRITER AT THE EARLIEST PRACTICABLE
MOMENT, NOT TO |
EXCEED 30 DAYS AFTER NOTICE THEREOF, OF ANY LEGAL PROCEEDING BROUGHT TO DETERMINE
THE
INSUREDS LIABILITY FOR ANY LOSS, CLAIM OR DAMAGE, WHICH, IF ESTABLISHED, WOULD
CONSTITUTE A
COLLECTRBJE LOSS UNDER THIS BOND. CONCURRENTLY, THE INSURED SHALL FURNISH
COPIES OF ELL
PLEADINGS AND PERTINENT PAPERS TO THE UNDERWRITER. |
THE UNDERWRITER, AT ITS SOLE OPTION, MAY ELECT TO CONDUCT -THE DEFENSE OF SUCH LEGAL
PROCEEDING, IN WHOFE OR IN PAN. THE DEFENSE BY THE UNDERWRITER SHALL BE IN THE INSUREDS
NAME THROUGH ATTORNEYS SELECTED BY THE UNDERWRITER. THE INSURED SHALL PROVIDE ALL
REASONABLE INFORMATION AND ASSISTANCE REQUIRED BY THE UNDERWRITER FOR SUCH DEFENSE. |
IT THE UNDERWRITER EJECTS TO DEFEND THE INSURED, IN WHOLE OR IN PART, ANY JUDGMENT ^GAINST
THE INSURED ON THOSE COUNTS OR CAUSES OF ACTION WHICH THE UNDERWRITER DEFENDED ON BEHALF OF
THE INSURED OR ANY SATTLEMENT IN WHICH THE UNDERWRITER PARTICIPATES AND ALL AITOMEYS FEES,
COSTS AND EXPENSES INCURRED BY THE UNDERWRITER IN THE DEFENSE OF THE LITIGATION SHALL BE A
LOSS COVERED BY THIS BOND, |
IF THE INSURED DOES NOT GIVE THE NOTICES REQUIRED IN SUBSECTION FA) OF SECTION S OF THIS
BOND AND IN THE FIRST PARAGRAPH OF THIS GENERAL AGREEMENT, OR IF THE UNDERWRITER ELECTS NOT
TO DEFEND ANY CLAUSES OF ACTION, NEITHER A JUDGMENT AGAINST THE INSURED, NOR A SETTLEMENT
OF ANY LEGAL PROCEEDING BY THE INSURED, SHALL DETERMINE THE EXISTENCE, EXTENT OR AMOUNT OF
COVERAGE UNDER THIS BOND FOR LOSS SUSTAINED BY THE INSURED, AND THE UNDERWRITER SHALL NOT
BE LIABLE FOR ANY ATTORNEYS FEES, COSTS AND EXPENSES INCURRED BY THE INSURED. |
WHN RESPECT TO THIS GENERAL AGREEMENT, SUBSECTIONS [B) AND ID) OF |
SECTION 5 OF THIS BOND APPLY UPON THE ENTRY OF SUCH JUDGMENI OR THE OCCURRENCE OF SUCH
SETTLEMENT INSTEAD OF
UPON DISCOVERY OF LOSS. IN ADDITION, THE INSURED MUST NOTIFY THE UNDERWRITER WITHIN 30 DAYS
AFTER SUCH JUDGMENT IS ENTERED AGAINST IT OR AFTER THE INSURED SETTLES SUCH LEGAL
PROCEEDING, AND SUBJECT TO SUBSECTION (E) OF SECTION 5, THE INSURED MAY NOT BRING LEGAL
PROCEEDINGS FOR THE RECOVERY OF SUCH LOSS AFTER THE EXPIRATION OF 24 MONTHS FROM THE DATE
OF SUCH FINAL JUDGMENT OR SETTLEMENT. |
CONDITIONS AND LIMITATIONS |
DEFINITIONS SECTION 1. AS USED IN THIS BOND: |
(A) ACCEPTANCE MEANS A DRAFT WHICH THE DRAWEE HAS, BY SIGNATURE WRITTEN THEREON, ENGAGED |
|B] CERTIFICATE OF DEPOSIT MEANS AN ACKNOWLEDGMENT IN WRITING BY A
FINANCIAL INSTITUTION OF RECEIPT OF MONEY WITH AN ENGAGEMENT TO REPAY IT, |
(C| CERTIFICATED SECURITY MEANS A SHARE, PARTICIPATION OR OTHER INTEREST IN
PROPERTY OF <K EN |
ENTERPRISE OF THE ISSUER OR EN OBLIGATION OF THE ISSUER, WHICH IS:
11} REPRESENTED BY AN INSTRUMENT ISSUED IN BEARER OR REGISTERED FORM;
(2| OF A TYPE COMMONLY DTALT IN ON SECURITIES EXCHANGES OR MARKETS
OR COMMONLY |
RECOGNISED IN ANY AREA IN WHICH IT IS ISSUED OR DEALT IN AS A MEDIUM FOR INVESTMENT;
AND |
(3) ERTHER ONE OF A CLASS OR SERIES OF BY ITS TERMS DIVISIBLE INTO
A CLASS OF SERIES OF SHARES, PARTICIPATIONS, INTERESTS OR OBLIGATIONS, |
[D I COUNTERFEIT MEANS AN IMITATION OF AN ACTUAL VALID ORIGINAL WHICH IS
INTENDED TO DECEIVE |
AND TO BE TAKEN AS THE ORIGINAL. |
(1) A NATURAL PERSON IN THE SERVICE OF THE INSURED AT ANY OF THE INSUREDS OFFICES
OR |
PREMISES COVERED HEREUNDER WHOM THE INSURED COMPENSATES DIRECTLY BY SAIARV OR
COMMISSIONS AND WHOM THE INSURED HAS THE RIGHT TO DIRECT AND CONTROL WHILE
PERFORMING SERVICES FOR THE INSURED; |
(21 AN ATTORNEY RETAINED BY THE INSURED AND AN EMPLOYEE OF SUCH ATTORNEY
WHILE EITHER IS PERFORMING LEGAL SERVICES FOR THE INSURED; |
(3) A PERSON PROVIDED BY AN EMPLOYMENT CONTRACTOR TO PERFORM EMPLOYEE DUTIES
FOR |
THE INSURED UNDER THE INSURED* SUPERVISION AT ANY OF THE INSUREDS
OFFICES OR
PROMISES COVERED HEREUNDER; AND A GUEST STUDENT PURSUING STUDIES OR
DUTIES IN |
ANY OF SAID OFFICES OR PREMISES; |
(4) AN EMPLOYEE OF AN INSTILUTION MERGED OR CONSOLIDATED WITH -THE
INSURED PRIOR TO |
THE EFFECTIVE DATE TO THIS BOND; |
(5) EACH NATURAL PERSON, PARTNERSHIP OR CORPORATION AUTHORIZED BY
THE INSURED TO |
PERFORM SERVICES AS DATA PROCESSOR OF CHECKS OR OTHER ACCOUNTING RECORDS OF THA
INSURED (NOT INCLUDING PREPARATION OR MODIFICATION OF COMPUTER
SOFTWARE OR
PROGRAMS), HEREIN CALLED PROCESSOR. (EACH SUCH PROCESSOR, ANT) THE PARTNERS, |
OFFICERS AND EMPLOYEES OF SUCH PROCESSOR SHALL, COLLECTIVELY, BE DEEMED TO BE ONE
EMPLOYEE FAR ALL THE PURPOSES OF THIS BOND, EXCEPTING, HOWEVER, THE SECOND PARAGRAPH
OF SECTION 12. A FEDERAL RESERVE BANK OR CLEARING HOUSE SHALL NOT BE CONSTRUED TO BE
A PROCESSOR) AND |
16) A PARTNER OF THE INSURED, UNLESS NOT COVERED AS STATED IN ITEM 4 OF THE
DECLARATIONS. |
(F] EVIDENCE OF DEBT MEANS AN INSTRUMENT, INCLUDING E NEGOTIABLE INSTRUMENT, EXECUTED BY A
CUSTOMER OF THE INSURED AND HELD BY THE INSURED WHICH IN THE REGULAR COURSE OF BUSINESS IS
TREATED AS EVIDENCING THE CUSTOMERS DEBT TO THE INSURED, |
|G) FINANCIAL INTEREST IN THE INSURED OF THE INSUREDS GENERAL PARTNER(S), OR LIMITED PARTNERS},
COMMITTING DISHONEST OR FRAUDULENT ACTS COVERED BY THIS BOND OR CONCERNED OR IMPLICATED
THEREIN MEANS: |
11) AS RESPECTS GENERAL PARTNERS THE VALUE OF ALL RIGHT, TITLE AND INTEREST OF
SUCH GENERAL PARTNERS), DETERMINED AS OF THE CLOSE OF BUSINESS OF THE DATE OF
DISCOVERY OF LOSS COWERED BY THIS BOND, IN THE AGGREGATE OF: |
{S| THE NET WORTH OF THE INSURED, WHICH FOR THE PURPOSES OF THIS
BOND, SHALL BE DEEMED TO BE THE EXCESS OF ITS TOTAL ASSETS OVER ITS TOTAL
LIABILITIES, WITHOUT ADJUSTMENT TO GIVE EFFECT TO LOSS COVERED BY THIS BOND,
(EXCEPT THAT CREDIT BALANCES AND EQUITIES IN PROPRIETARY ACCOUNTS OF THE
INSURED, WHICH SHALL INCLUDE CAPITAL ACCOUNTS OF PARTNERS, INVESTMENT AND
TRADING ACCOUNTS OF THE INSURED, PARTICIPANTS OF THE INSURED IN JOINT ACCOUNTS,
AND ACCOUNTS OF PARTNERS WHICH ARE COVERED BY AGREEMENTS PROVIDING FOR THE
INCLUSION OF EQUITIES THEREIN AS PARTNERSHIP PROPERTY, SHALL NOT BE CONSIDERED
AS LIABILITIES! WITH SECURITIES, SPOT COMMODITIES, COMMODITY FUTURE CONTRACTS
IN SUCH PROPRIETARY ACCOUNTS AND ALL OTHER ASSETS MARKED TO MARKET OR FAIR
VALUE AND WITH ADJUSTMENT FOR PROFITS AND LOSSES AT THE MARKET OF CONTRACTUAL
COMMITMENTS FOR SUCH PROPRIETARY ACCOUNTS OF THE INSURED; AND |
(B) THE VALUE OF ALL OTHER MONEY, SECURITIES AND PROPERTY BELONGING
TO SUCH GENERAL PARTNERS}, OR IN WHICH SUCH GENERAL PARTNERS) HAVE A PECUNIARY
INTEREST, HELD BY OR IN THE CUSTODY OF AND LEGALLY AVAILABLE TO THE INSURED AS
SET-OFF AGAINST LOSS COVERED BY THIS BOND; |
PROVIDED, HOWEVER, THAT IF SUCH NET WORTH ADJUSTED TO GIVE EFFECT TO LOSS COVERED
BY THIS BOND AND SUCH VALUE OF ALL OTHER MONEY, SECURITIES AND PROPERTY AS SET FORTH
IN IG)(1HB) PRECEDING, PLUS THE AMOUNT OF COVERAGE AFFORDED BY THIS BOND ON ACCOUNT
OF SUCH LOSS, IS NOT SUFFICIENT TO ENABLE THE INSURED TO MEET ITS OBLIGATIONS,
INCLUDING ITS OBLIGATIONS TO ITS PARTNERS OTHER THAN TO SUCH GENERAL PARTNERS}, THEN
THE FINANCIAL INTEREST IN THE INSURED, AS ABOVE DEFINED, OF SUCH GENERAL PARTNERS)
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 PARTNERS] FROM SUCH PAYMENT; AND |
12} AS RESPECTS LIMITED PARTNERS THE VALUE OF SUCH LIMITED PARTNERS!1)
INVESTMENT IN THE INSURED. |
(HT FORGERY MEANS THE SIGNING OF THE NAME OF ANOTHER PERSON OR ORGANIZATION WITH INTENT TO
DECEIVE; IT DOES NET MEAN E SIGNATURE WHICH CONSISTS IN WHOLE OR IN PART OF ONES 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. |
IJ} INSTRUCTION MEANS A WRITTEN ORDER TO THE ISSUER OF AN UNCERTIFICATED SECURITY REQUESTING
THAT THE TRANSFER, PLEDGE, OR RELEASE FROM PLEDGE, OF THE UNCERTIFICATEQF SECURITY SPECIFIED
BE RE |
(K) LETTER OF CREDIT MEANS ART ENGAGEMENT IN WRITING BY A BANK OR OTHER PERSON MADE AL THE
REQUEST OF A CUSTOMER THAT THE BENK OR OTHER PERSON WILL HONOR DRAFTS OR OTHER DEMANDS FOR
PAYMENT UPON COMPLIANCE WITH THE CONDITIONS SPECIFIED IN THE LETTER OF CREDIT- |
(I) MONEY MEANS A MEDIUM OF EXCHANGE IN CURRENT USE AUIHORI^ED CR ADOPTED BY A DOMESTIC |
OR FOREIGN GOVERNMENT AS A PART OF ITS CURRENCY, |
{ML 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
ANRJ |
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 S NATURAL PERSON
WHO |
(1) IS A GENERAL PARTNER OF THE INSURED, OR |
(2| IS A LIMITED PARTNER AND AN EMPLOYEE {AS DEFINED IN SECTION 1FE)O) OF THE BOND}
OF |
(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 CF TITLE,
DEEDS AND |
MORTGPGES ON REAL ESTATE, REVENUE AND OTHER STAMPS, TOKENS, UNSOLD SIATE LOTTERY TICKETS,
BOOKS OF ACCOUNT AND OTHER RECORDS WHETHER RECORDED IN WRITING OR ELECTRONICALLY, GEMS,
JEWELRY, PRECIOUS METALS OF ALL KRNDS AND IN ANY FORM, AND TANGIBLE ITEMS OF PERSONAL
PROPERTY WHICH ARE NOT HEREINBAFORE ENUMERATED. |
(P) STATEMENT OF UNCERTIFICATED SECURITY MEANS A WRITTEN SLATE-MENT 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 TA THE REGISTERED PLEDGES; |
(c) RELEASED FROM PLEDGE BY THE LEGISTEREA PLEDGEE; |
ID) 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; |
14} A NOTATION OF ANY NERIS AND RESTRICTIONS OF THE ISSUER AND ANY ADVERSE CLAIMS
TO WHICH THE UNCERTIFICATED SECURITY IS OR MAY BE SUBJECT OR A STATEMENT THAI THERE
ARE NONE OF THOSE LIENS, RESTRICTIONS OR ADVERSS CLAIMS; AND |
(A) THE TRANSFER OF THE SHARES OR UNITS TO THE NEW
REGISTERED OWNER OF THE SHARES OR UNITS WAS REGISTERED; |
[B| ME PLEDGE OF THE REGISTERED PLEDGEE WAS REGISTERED, OR
ID OF THE STATEMENT, IL IT IS A PERIODIC OR ANNUAL
STATEMENT. |
FQ) 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: |
ML NOT REPRESENTED BY AN INSTRUMENT AND THE TRANSFER OF WHICH IS REGISTERED UPON
BOOKS MAINTAINED TOR THAT PURPOSE BY OR ON BEHALF OF THE ISSUER; |
(2) OF A TYPE COMMONLY DEALT IN ON SECURITIES EXCHANGES OR MARKETS; END |
(3) EITHER ONE OF E CLASS OR SERIES OR BY HS TERMS DIVISIBLE INTO A CLASS OR
SERIE$ OF |
SHARES, PARTICIPATORS, INTERESTS 01 OBLIGATIONS. |
[S| WITHDRAWAL ORDER MEANS A NAN-NEGOTIABLE INSTRUMENT, OTHER THAN AN INSTRUCTION, SIGNED
BY A CUSTOMER OF THE INSURED AUTHORIZING THE INSURED TO DEBIT THE CUSTOMERS ACCOUNT IN THE
AMOUNT OF FUNDS STATED THEREIN, |
EXCLUSIONS SECTION 2, THIS BOND DOES NOT COVER: |
FA) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM FORGERY OR ALTERATION, EXCEPT WHEN COVERED UNDER
INSURING AGREEMENTS (A), (D) OR <E); |
V 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 MOT, CTVII 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; |
ID] 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
13 ALSO AN EMPLOYEE OR AN ELECTED OFFICIAL OF THE INSURED IN SOME OTHER CAPACITY, NORR 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 DUECTLY OR INDIRECTLY FROM THE COMPLETE OR PARTIAL NONPAYMENT OF, OR DEFAULT
UPON, ANY LOAN OR TRANSACTION INVOLVING TTTE 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); |
{FT LOSS RESULTING FROM ANY VIOLATION BY THE INSURED OR BY ANY EMPLOYEE |
{11 OF LAW REGULATING (T) 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 1HE 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 TAWS, RULES OR REGULATIONS; |
(G) LOSS RESULTING DIRECTLV OR INDIRECTLY FROM THE FAILURE OF A FINANCIAL OR DEPOSITORY
INSTITUTION, OR ITS RECEIVER OR- LIQUIDATOR1, TO PAY OR DELIVER, ON DEMAND OF THE INSURED,
FUNDS OR PROPERTY OF THE INSURED HELD BY II 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 (61 OR (C) END RESULTING DIRECTLY FROM MISPLACEMENT MYSTERIOUS
UNEXPLAINABLE DISAPPEARANCE OR DESTRUCTION OF OR DAMAGE TO PROPERLY: |
(I) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM TRANSACTIONS IN A CUSTOMERS ACCOUNT, WHETHER
AUTHORIZED OR UNAUTHORIZED, EXCEPT THE UNLAWFUL WITHDRAWAL AND CONVERSION OF MONEY, SECURITIES
GR PRECIOUS METALS, DIRECTLY FROM A CUSTOMERS ACCOUNT BY AN EMPLOYEE PROVIDED SUCH UNLAWFUL
WITHDRAWAL AND CONVERSION IS COVERED UNDER INSURING AGREEMENT (A); |
IF} DAMAGES RESULTING FROM ANY CIVIL, CRIMINAL OR OTHER LEGAL PROCEEDING IN WHICH THE INSURED |
IS ALTEGED 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
(AL. FOR THE PURPOSES OF THIS EXCLUSION, RACKETEERING ACTIVITY IS DELINED IN 18 UNITED
STATES CODE 1961 EI SEQ.. ES AMENDED; |
|H) 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 |
(21 IN GAINING ACCESS TO AUTOMATED MECHANICAL DEVICES WHICH, ON BEHALF OF TH«
INSURED, DISBURSE MONEY, ACCEPT DEPOSITS, CASH CHECKS, DRAFTS OR SIMILAR WRITTEN
INSTRUMENTS OR MAKE CREDIT CARD LOANS, OR |
(3} IN GAINING ACCESS TO POINT OL 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); |
(II LASS 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); |
|M] LOSS THROUGH THE SURRENDER OF PROPERTY AWAY FROM EN OFFICE OF THE INSURED AS A RESULT OF A
THREAT |
(11 TO DO BODILY HARM TO ANY PERSON, EXCEPT LOSS OF PROPERTY IN TRANSIT IN THE
CUSTODY OF ANY PERSON ACTING AS MESSENGER PROVIDED THAT WHEN SUCH TRANSIT WAS
INITIATED THERE WAS NO KNOWLEDGE BY THE INSURED OF ANY SUCH THREAT, OR |
{2\ TO DO DAMAGE TO THE PREMISES OF PROPERTY OF THE INSURED, EXCEPT WHEN
COVERED |
UNDER INSURING AGREEMENT (A); |
{N | LOSS RESULTING DIRECTLY OR INDIRECTLY FROM PAYMENTS MADE OR WITHDRAWALS FROIRI A
DEPOSITORS OR CUSTOMERS ACCOUNT INVOLVING ERRONEOUS CREDITS TO SUCH ACCOUNT, UNLESS SUCH
PAYMENTS OF WITHDRAWALS ARE PHYSICALLY RECEIVED BY SUCH DEPOSITOR OR CUSTOMER OR
REPRESENTATIVE OF SUCH DEPOSITOR OR CUSTOMER WHO IS WITHIN THE OFFICE OF THE INSURED AT THE
TIME OF SUCH PAYMENT OR WITHDRAWAL, OR EXCEPT WHEN COWERED UNDER INSURING AGREEMENT {AL; |
|O) LOSS INVOLVING ITEMS OF DEPOSIT WHICH ARE NOT FINALLY PAID FOR ANY REASON, INCLUDING BUT NOT
LIMITED TO FORGERY OR ANY OTHER FRAUD, EXCEPT WHEN COVERED UNDER INSURING AGREEMENT (A); |
(P> LOSS RESULTING DIRECTLY OR INDIRECTLY HORN COUNTERFEITING, EXCEPT
WHEN COVERED UNDER |
INSURING AGREEMENTS (A), (E) OR IF); |
{Q| LOSS OF ANY TANGIBLE ITAM OF PERSONAL PROPERTY VUHICH IS RIOT SPECIFICALLY ENUMERATED IN THE
PARAGRAPH DEFINING PROPERTY IF SUCH PROPERTY IS SPECIFICALLY INSURED BY OTHER INSURENCE OF ANY
KIND AND IN ANY AMOUNT OBTAINED BY THE INSURED, AND IN ANY EVENT, LOSS OF SUTH PROPERTY
OCCURRING MORE THAN 60 DAYS AFTER THE INSURED TAKES POSSESSION OF SUCH PROPERTY, EXCEPT WHEN
COVERED UNDER INSURING AGREEMENTS (A) OR (B)[2); |
(R) LOSS OF PROPERTY
WHILE {1) IN THE
MAIL, OR |
(2\ IN THE CUSTODY OF ANY TRANSPORTATION COMPANY, UNLESS
COVERED UNDER INSURING AGREEMENT 1C], |
EXCEPT WHEN COVERED UNDER INSURING AGREEMENT (AL; |
(S) POTENTIAL INCOME, INCLUDING BUT NOT LIMITED TO INTEREST AND DIVIDENDS, NOT REALIZED BY THE
INSURED OR BY ENY CUSTOMER OF THE INSURED; |
(T| DAMAGES OF ANY TYPE FOR WHICH THE INSURED IS LEGALLY LIABLE, EXCEPT COMPENSATORY DAMAGES,
BUT NOT MULTIPLES THEREOF, ARISING DIRECTLY FROM A LOSS COVERED UNDER THIS BOND; |
:UI ALL FEES, COSTS AND EXPENSES INCURRED BY THE INSURED |
H) IN ESTABLISHING THE EXISTENCE OF OR AMOUNT OF LOSS COVERED UNDER THIS BOND, OR |
{2} AS A PARTY TO ANY LEGAL PROCEEDING WHETHER OR NOT SUCH LEGAL PROCEEDING EXPOSES |
THE INSURED TO LOSS COVERED BY THIS BOND; |
(V) INDIRECT OR CONSEQUENTIAL LOSS OF ANY NATURE; |
(WJ LOSS INVOLVING ANY JNCERTIFICATED SECURITY EXCEPT AN
UNCERTIFIED SECURITY OF ANY FEDERAL RESERVE BANK OF THE
UNITED |
STATES OR WHEN COVERED UNDER INSURING AGREEMENT (A);
[8/88} 12- |
(X) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM ANY DISHONEST OR FRAUDULENT ACT OR ACTS
COMMITTED BY ANY NON- EMPLOYEE WHO IS A SECURITIES, COMMODITIES, MONEY, MORTGAGE, REAL
ESLATC. LOAN, INSURANCE, PROPERTY MANAGEMENT, INVESTMENT BANKING BROKER, AGENT OR OTHER1
REPRESENTATIVE OF THE SAME GENERAL CHARACTER: |
(Y) IDAS CAUSED DIRECTLY OR INDIRECTLY BY A PARTNER OF THE INSURED UNLESS THE AMOUNT OF SUCH
LOSS EXCEEDS THE FINANCIAL INTEREST IN THE INSURED OF SUCH PARTNER AND IHE DEDUCTIBLE |
AMOUNT APPLICABLE TO THIS BOND, AND THEN FGR THE EXCESS ONLY; |
(Z) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM ANY ACTUAL OR ALLEGED REPRESENTATION, ADVICE,
WARRANTY OR GUARANTEE AS TO THE PERFORMANCE OF ANY INVESTMENTS; |
(AA) LOSS DUE TO LIABILITY IMPOSED UPON THE INSURED AS A RESULT GF THE UNLAWFUL DISCLOSURE OF
NON- PUBLIC MATERIAL INFORMATION BY THE INSURED OR ANY EMPLOYEE, OR AS A RESULT OF ANY
EMPLOYEE ACTING UPON SUCH INFORMATION, WHETHER AUTHORIZED OR UNAUTHORIZED, |
SECTION 3. THIS BOND APPLIES TO LOSS DISCOVERED BY THE INSURED DURING THE BOND PERIOD- DISCOVERY
OCCURS WHEN THE INSURED FIRST BECOMES AWARE OF FACTS WHICH WOULD CAUSE A REASONABLE PERSON TO
ASSUME THAT A LOSS OF A TYPE COVERED BY THIS BOND HAS BEEN OR WILL BE INCURRED, REGARDLESS OF WHEN
THE ACT OR ACTS CAUSING OR CONTRIBUTING TO SUCH LOSS OCCURRED, EVEN THOUGH THE EXACT AMOUNT OR
DETAILS OF LOSS MAY NOT THEN BE KNOWN. |
DISCOVERY ALSO OCCURS WHEN THE INSURED RECEIVES NOTICE OF AN ACTUAL OR POTENTIAL CLAIM IN WHICH IT |
IS ALLEGED THAT THE INSURED IS LIABLE TO A THIRD PARTY UNDER CIRCUMSTANCES WHICH, IF TRUE, WOULD
CONSTITUTE A LOSS UNDER THIS BOND. |
LIMIT OF LIABILITY SECTION 4. |
AGGREGATE LIMIT OF LIABILITY |
THE UNDERWRITERS TOTAL LIABILITY FOR ALL LOSSES DISCOVERED DURING THE BOND PERIOD SHOWN IN ITEM 2
OF THE DECLARATIONS SHALL NOT EXCGED THE AGGREGATE LIMIT OF LIABILITY SHOWN IN ITEM 3 OF THE
DECLARATIONS. THE AGGREGATE LIMIT OF LIABILITY SHALL BE REDUCED BY THE AMOUNT OF ANY PAYMENT UNDER
THE TERMS OF THIS BOND- |
UPON EXHAUSTION OF THE AGGREGATE LIMIT OF LIABILITY BY SUCH PAYMENTS: |
(A) THE UNDERWRITER SHALL HAVE NO FURTHER LIABILITY FOR LOSS OR LOSSES
REGARDLESS OF WHEN DISCOVERED AND WHETHER OR NOT PIEVIOUSLY REPORTED TO THE UNDERWRITER,
AND |
|B) THE UNDERWRITER SHALL HAVE NO OBLIGATION UNDER GENERAL AGREEMENT F TO
CONTINUE THE |
DEFENSE OF THE INSURED, AND UPON NOTICE BY THE UNDERWRITER TO THE INSURED THAT
THE
AGGREGATE LIMIT OF LIABILITY HAS BEAN EXHAUSTED, THE
INSURED
SHALL ASSUME ALL
RESPONSIBILITY FOR ITS DEFENSE AT ITS OWN COST. |
THE AGGREGATE LIMIT OF LIABILITY SHALL NOT BE INCREASED OR REINSTATED BV ANY RECOVERY MADE
AND APPLIED IN ACCORDANCE WITH SUBSECTIONS (A), (B) AND (C) OF SECTION 7. IN THE EVENT THAT
A LOSS OF
PROPERTY IS SETTLED BY THE UNDERWRITER THROUGH THE USE OF A LOST INSTRUMENT BOND, SUGH
LOSS SHALL NOT REDUCE THE AGGREGATE LIMIT OF LIABILITY. |
SINGLE LOSS LIMIT OF LIABILITY |
SUBJECT TO THE AGGREGATE LIMIT OL LIABILITY, THE UNDERWRITERS LIABILITY FOR EACH SINGLE LOSS
SHALL NOT EXCEED THE APPLICABLE SINGLE LOSS LIMIT OF LIABILITY SHOWN IN ITEM 4 OF THE DECLARATIONS.
!F A SINGLE LOSS IS COVERED UNDER MORE THAN ONE INSURINO AGREEMENT OR COVERAGE, THE MAXIMUM PAYABLE
SHALL NOT EXCEED THE LARGEST APPLICABLE SINGLE LOSS LIMIT OF LIABILITY-SINGLE LOSS DEFINED |
SINGLE LOSS MEANS ALL COVERED LOSSR INCLUDING COURT COSTS AND ATTORNEYS FEES
INCURRED BY THE UNDERWRITER UNDER GENERAL AGREEMENT F, RESULTING FROM |
(A) ANY ONE ACT OR SERIES OR RELATED ACTS OF BURGLARY, ROBBERY OR ATTEMPT THEREAT, IN WHICH
NO |
EMPLOYEE IS IMPLICATED, OR |
!B) ANY ONE ACT OR SERIES OF RELATED UNINTENTIONAL OR NEGLIGENT ACTS OR OMISSIONS ON THE PART
OF ANY PERSON (WHETHER AN EMPLOYEE OR NOT) RESULTING IN DAMAGE TO OR DESTRUCTION OR
MISPLACEMENT PF PROPERTY, OR |
JC) ALL ACTS OR OMISSIONS OTHER THAN THOSE SPECIFIED IN LE) GND (B) PRECEDING, CAUSED BY ANY
PERSON (WHETHER GN EMPLOYES OR NOT) OR IN WHICH SUCH PERSON IS IMPLICATED. OR |
(D) ANY ONE CASUALTY OR EVENT NOT SPECIFIED IN (A), (B} OR (C) PRECEDING, |
NOTICE/PROOF-LEGAL PROCEEDINGS AGAINST UNDERWRITER |
(A) AT THE EARLIEST PRACTICABLE MOMENT, NOT TO EXCEED 30 DAYS, AFTER DISCOVERY OF LOSS, THE
INSURED SHALL GIVE THE UNDERWRITER NOTICE THEREOF. |
(1)1 WITHIN 6 MONTHS AFTER SUCH DISCOVERY, THE INSURED SHALL FURNISH TO THE UNDERWRITER PROOF
OF LOSS, DULV SWORN TO, WITH FULL PARTICULARS. |
(c) LOSS CERTIFIED SECURITIES LISTED IN A PROOF OF LOSS SHALL BE IDENTIFIED BY
CERTIFICATE OR |
BOND NUMBERS IF SUCH SECURITIES WERE ISSUED THEREWITH. |
(d) LAGAF PROCEEDINGS FOR THE RECOVERY OF ANY LOSS HEREUNDER SHALL NOT BE BROUGHT PRIOR TO |
THE EXPIRATION OF SO DAYS AFTER THE ORIGINAL PROOF OF LOSS IS LILED WITH THE UNDERWRITER OR
AFTER THE EXPIRATION OF 24 MONTHS FROM THE DISCOVERY OF SUCH LOSS. |
(E] IF ANY LIMITATION EMBODIED IN THIS BOND IS PROHIBITED BY ANY LAW CONTROLLINY THE
CONSTRUCTION HEREOF, SUCH LIMITATION SHALL BE DEEMED TO BE AMENDED SO AS TO EQUAL THE
MINIRNURN PERIOD OF LIMITATION PROVIDED BY SUCH LAW. |
(F| THIS BOND AFFORDS COVERAGE ONLY IN FAVOR OF THE INSURED, NO SUIT, ACTION OR LEGAL
PROCEEDINGS SHALL BE BROUGHT RIEREUNDER BY ANY ONE OTHER THAN THE NAMED INSURED. |
SECTION 6. ANY LOSS OF MONEY, OR LOSS PAYABLE IN MONEY* SHALL BE PAID, AT THE OPTION OF THE
INSURED, IN THE MONEY OF THE COUNTRY IN WHICH THE LOSS WAS SUSTAINED OR M THE UNITED STATES OF
AMERICA DOLLAR EQUIVALENT THEREOF DETERMINED AT THE RETE OF EXCHANGE AT THE LIME OF PAYMENT OF SUCH
LOSS. |
THE UNDERWRITER SHALL SETTLE IN KIND ITS LIABILITY UNDER THIS BOND ON ACCOUNT OT A LOSS OF ANY
SECURITIES OR. AT THE OPTION OF THE INSURED, SHALL PAY TO THE INSURED THE COST OF REPLACING SUCH
SECURITIES, DETERMINED BY THE MARKET VALUE THEREOF AT THE TINE OF SUCH SETTLEMENT. HOWEVER, I-F
PRIOR TO SUCH SETTLEMENT THE INSURED SHALL BE COMPELLED BY THE DEMANDS OF A THIRD PARTY OF BY
MARKET RULES TO PURCHASE EQUIVALENT SECURITIES, AND GIVES WRITTEN NOTIFICATION OF THIS TO THE
UNDERWRITER, THE COST INCURRED BY THE INSURED SHALL BE TAKEN AS THE VALUE OF THOSE SECURITIES, IN
CASE OL A LOSS OF SUBSCRIPTION, CONVERSION OR REDEMPTION PRIVILEGES THROUGH THE MISPLACEMENT OR
LOSS OF SECURITIES, THE AMOUNT OF SUCH LOSS SHELL BE THE VALUE OF SUCH PRIVILEGES IMMEDIATELY
PRECEDING THE EXPIRATION THEREOF. IF SUCH SECURITIES CANNOT BE REPLACED OR HAVE NO QUOTED MARKET
VALUE, OR IF SUCH PRIVILEGES HAVE NO QUOTED MARKET VALUE, THEIR VALUE SHALL BE DETERMINED BY
AGREEMENT OR ARBITRATION. |
IF THE APPLICABLE COVERAGE OL THIS BOND IS SUBJECT TO A DEDUCTIBLE AMOUNT AND/OR IS NOT SUFFICIENT
IN AMOUNT TO INDEMNIFY THE INSURED IN FULL LOR THE LOSS OF SECURITIES FOR WHICH CLAIM IS MADE
HEREUNDER, THE LIABILITY OF TLIE UNDERWRITER UNDER THIS BOND IS LIMITED TO THE PAYMENT FOR, OR THE
DUPLICATION OF, SO MUCH OF SUCH SECURITIES AS HAS A VALUE EQUAL TO THE AMOUNT OF SUCH APPLICABLE
COVERAGE-BOOKS OF ACCOUNT AND OTHER RECORDS |
IN CASE OF LOSS OF, OR DAMAGE TO, ANY BOOKS OF ACCOUNT OR OTHER RECORDS USED BY THE INSURED IN ITS
BUSINESS, THE UNDERWRITER SHALL BE LIABLE UNDER THIS BOND ONLY IF SUCH BOOKS OR RECORDS ARE
ACTUALLY REPRODUCED AND THEN FOR NOT MORE THAN THE COST OF THE BLANK BOOKS, WANK PAGES OR OTHER
MATERIALS PLUS THE COST OF LABOR FOR THE ACTUAL TRANSCRIPTION OR COPYING OF DATA WHICH SHALL HAVE
BEEN FURNISHED BY THE INSURED1 IN ORDER TO REPRODUCE SUCH BOOKS AND OTHER RECORDS. |
PROPERTY OTHER THAN MONEY, SECURITIES OR RECORDS |
IN CASE OF LOSS OF, OR DARNAGE TO, ANY PROPERTY OTHER THAN MONEY, SECURITIES, BOOKS OF ACCOUNT OR
OTHER RECORDS, OR DAMAGE COVERED UNDER INSURING AGREEMENT (BJI2J, THE UNDERWRITER SHALL NOT BE
LIABLE FOR MORE THAN THE ACTUAL CASH VALUE OF SUCH PROPERTY, OR OF ITEMS COVERED UNDER INSURING
AGREEMENT <BI(2). THE UNDERWRITER MAY., AT ITS ELECTION, PAY THE ACTUAL CASH VALUE OF, REPLACE
OR REPAIR SUCH PROPERTY. DISAGREEMENT BETWEEN THE UNDERWRITER AND THE INSURED AS TO THE DASH VALUE
OR AS TO THE ADEQUACY OF REPAIR OR REPLACEMENT SHALL BE RESOLVED BY ARBITRATION. |
ANY LOSS COVERED UNDER THIS BOND SHALL BE REDUCED BY A SET-OFF CONSISTING OF ANY AMOUNT OWED TO THE
EMPLOYEE CAUSING THE LOSS IF SUTH LOSS IS COVERED UNDER INSURING AGREEMENT (A), |
ASSIGNMENT- SUBROGATION- RECOVERY- COOPERATION SECTION 7. |
(A) IN THE EVENT OF PAYMENT UNDER THIS BOND, THE INSURED SHALL DELIVER, IF SO REQUESTED BY THE
UNDERWRITER, AN ASSIGNMENT OF SUCH OF THE INSUREDS RIGHTS, TITLE AND INTEREST AND CAUSES
OF ACTION AS IT HAS AGAINST ANY PERSON OR ENTITY TO THE EXTENT OF THE LOSS PAYMENT. |
FB] IN THE EVENT OF PAYMERN UNDER THIS BOND, THE UNDERWRITER SHEFL BE SURROGATED TO ALL OF THE
INSUREDS RIGHTS OF RECOVERY THEREFOR AGAINST ANY PERSON OR ENTITY TO THE EXTENT OF SUCH
PAYMENT, |
(C) RECOVERIES, WHETHER EFFECTED BY IHE UNDERWRITER OR BY THE INSURED, SHALL BE
APPLIED NET |
OF THE EXPENSE OF SUCH RECOVERY FFRST TO THE SATISFACTION OF THE INSUREDS LOSS WHICH
WOULD OTHERWISE HAVE BEEN PAID BUT FOR THE FACT THAT IT IS IN EXCESS OF EITHER THE SINGLE
OR AGGREGATE LIMIT OF LIABILITY, SECONDLY, TO THE UNDERWRITER AS REIMBURSEMENT OF AMOUNTS
PAID IN SETTLEMENT OF THE INSUREDS CLAIM, AND THIRDLY, TO THE INSURED IN SATISFACTION OF
ANY DEDUCTIBLE AMOUNT. RECOVERY ON ACCOUNT OF LOSS OF SECURITIES AS SET FORTH IN THE
SECOND PARAGRAPH OF SECTION 6 OF RECOVERY FROM REINSURANCE AND/OR INDEMNITY OF THE
UNDERWRITER SHALL NOT BE DEEMED A RECOVERY ES USED HEREIN. |
ID) UPON THE UNDERWRITERS REAUEST AND AT REASONABLE TIMES AND PLACES DESIGNATED BY THE
UNDERWRITER THE INSURED SHALL |
HI SUBMIT TO EXAMINATION BY THE UNDERWRITER AND SUBSCRIBE TO THE SARNE
UNDER OATH; AND |
(2) PRODUCE FOR THE UNDERWRITERS EXAMINATION ALL PERTINENT RECORDS; AND |
(3) COOPERATE WITH THE UNDERWRITER IN ALL MATTERS PERTAINING TO THE LOSS. |
[E] THE INSURED SHAD EXECUTE ALL PAPERS AND RENDER ASSISTANCE TO SECURE TO THE UNDERWRITER THE
RIGHTS AND CAUSES OF ACTION PROVIDED FOR HEREIN. THE INSURED SHALL DO NOTHING AFTER
DISCOVERY OF LOSS TO PREJUDICE SUCH RIGHTS OR CAUSES OF ACTION, |
LIMIT OF LIABILITY UNDER THIS BOND AND PRIOR INSURANCE |
SECTION 6. WITH RESPECT TO ANY LOSS SET FORTH IN SUB-SECTION (CJ OF SECTION 4 OF THIS BOND WHICH
IS RECOVERABLE OR RECOVERED IN WHOLE OR IN PART UNDER ANY OTHER BONDS OR POLICIES ISSUED BY THE
UNDERWRITER TO THE INSURED OR TO ANY PREDECESSOR IN INTEREST OF THE INSURED AND TERMINATED OR
CANCELED OR ALLOWED TO EXPIRE AND IN WHICH THE PERIOD FOR DISCOVERY HAS NOT EXPIRED AT THE TINE
ANY SUCH LOSS THEREUNDER IS DISCOVERED, THE TOTAL DEBILITY OF IHE UNDERWRITER UNDER THIS BOND AND
UNDER SUCH OTHER BONDS OR POLICIES SHALL NOT EXCEED, IN THE AGGREGATE, THE AMOUNT CARRIED
HEREUNDER ON SUCH LOSS OR THE AMOUNT AVAILABLE TO THE INSURED UNDER SUCH OTHER BONDS OR POLICIES,
AS LIMITED BY THE TERMS AND CONDITIONS THEREOF, FOR ANY SUCH LOSS TF THE LSTL*R AMOUNT BE THE
TERGER. |
IF THE COVERAGE OF THIS BOND SUPERSEDES IN WHOLE OR IN PART THE COVERAGE OF ANY OTHER BOND OR
POLICY OF INSURANCE ISSUED BY AN INSURER OTHER THAN THE UNDERWRITER AND TERMINATED, CANCELED OR
ALLOWED TO EXPIRE, THE UNDERWRITER, WITH RESPECT TO ANY LOSS SUSTAINED PRIOR TO SUCH TERMINATION,
CANCELETION OR EXPIRATION AND DISCOVERED WITHIN THE PERIOD PERMITTED UNDER SUGH OTHER BOND OR
POLICY FOR THE DISCOVERY OF LOSS THEREUNDER, SHALL BE LIABLE UNDER THIS BOND ONLY FOR THAT PART OF
SUCH LOSS COVERED BY THIS BEND AS IS IN EXCESS OF THE AMOUNT RECOVERABLE OR RECOVERED ON ACCOUNT OF
SUCH LOSS UNDER SUCH OTHER BOND OF POLICY, ANYTHING TO THE CONTRARY IN SUCH OTHER BOND OR POLICY
NOTWITHSTANDING. |
OTHER INSURANCE OR INDEMNITY |
SECTION 9. COVERAGE AFFORDED HEREUNDER SHALL APPLY ONLY AS EXCESS OVER ANY VALID AND COLLECTIBLE
INSURANCE OR INDEMNITY OBTAINED BY THE INSURED, OR BY ONE OTHER LHAN THE INSURED ON PROPERTY
SUBJECT TO EXRLUSION (Q) OR BY A TRANSPORTATION COMPANY, OR BY ANOTHER ENTITY ON WHOSE PREMISES
THE LOSS OCCURRED OR WHICJI EMPLOYED THE PERSON CAUSING THE LOSS OR THE MESSENGER CONVEYING THE
PROPERLY INVOLVED. |
SECTION 10. THIS BOND SHALL APPLY TO LOSS OF PROPERTY (1} OWNED BY THE INSURED, (2J HELD BY THE
INSURED IN ANY CAPACITY, OR (3} FOR WHICH THE INSURED IS LEGALLY LIABLE, THIS BOND SHELL BE FOR
THE SOLE USE AND BENEFIT OF THE INSURED NAMED IN THE DECLARATIONS. |
SECTION 11. THE UNDERWRITER SHALL BE LIABLE HEREUNDER ONLY FOR THE AMOUNT BY WHICH ANY SINGLE
LOSS, AS DEFINED IN SECTION 4, EXCEEDS 1HE SINGLE LOSS DEDUCTIBLE AMOUNT FOR THE INSURING
AGREEMENT OR COVERAGE APPLICABLE TO SUCN LOSS, SUBJECT TO THE AGGREGATE LIMIT OF LIABILITY AND THE
APPLICABLE SINGLE LOSS LIMIT OF LIABILITY. |
THE INSURED SHALL, IN THE TIME AND IN THE MANNER PRESCRIBED IN THIS BOND, GIVE THE UNDERWRITER
NOTICE OF ANY LOSS OF THE KIND COVERED BY THE TERMS OF THIS BOND, WHETHER OR NOT THE UNDERWRITER
IS LIABLE THEREFOR, AND UPON THE REQUEST OF THE UNDERWRITER SHALL FILE WITH IT A BRIEF STATEMENT
GIVING THE PARTICULARS CONCERNING SUCH LOSS. |
TERMINATION OR CANCELATION |
SECTION 12. THIS BOND TERMINATES AS AN ENTIRETY UPON OCCURRENCE OF ANY OF THE FOLLOWING; -LA) BO
DAYS AFIER THE RECEIPT BY THE INSURED OF A WRITTEN NOTICE FROM THE UNDERWRITER OF ITS DASIRE TO
CANCEL THIS BOND. OR [B> IMMEDIATELY UPON THE RECEIPT BY THS UNDERWRITER OF A WRITTEN NOTICE
FROM THE INSURED OF ITS DESIRE TO CANCEL THIE BOND, OR FC) IMMEDIATELY UPON THE TAKING OVER OF THE
INSURED BY A RECEIVER OR OTHER LIQUIDATOR O? BY STATE OR FEDERAL OFFICIALS, OR (D) IMMEDIATELY
UPON THE LAKING OVER OF THE INSURED BY ANOTHER INSTITUTION, OR (E) IMMEDIATELY UPON EXHAUSTION OF
THE AGGREGATE LIMIT OF LIABILITY, OR IF) IMMEDIATELY UPON EXPIRATION OF THE BOND PERIOD AS SET
FORTH IN ITEM 2 OF THE DECLARATIONS. |
THIS BOND TERMINATES AS TO ANV EMPLOYEE OR ANY PARTNER, OFFICER1 OR EMPLOYEE OF ANY PROCESSOR -(A)
AS AOON AS ANY INSURED, OR ANY DIRECTOR OR OFFICER NET IN COLLUSION WITH SUCH PERSON, LEARNS OF ANY
DISHONEST OR FRAUDULENT ACT COMMITTED BY SUCH PERSON AT ANY TIME, WHETHER IN THE
EMPLOYMENT OF THE INSURED OR OTHERWISE, WHETHER OR NOT OF THE TYPE COVERED UNDER INSURING AGREEMENT
(A), AGAINST HE INSURED OR ANY OTHER PERSON OR ENTITY, WITHOUT PREJUDICE TO THE LOSS OF ANY
PROPERTY THEN IN TRANSIT IN THE CUSTODY OF SUCH PERSON, OR (TO ^5 DAYS AFTER THE RECEIPT BY THE
INSURED OI & WRITTEN NOTICE FROM THE UNDERWRITER OF ITS DESIRE TO CANCEL THIS BOND AI TO SUCH
PERSON. |
TERMINATION OF THE BOND ES TO ANY INSURED TERMINATES LIABILITY FOR ANY LOSS SUSTAINED FTY SUCH
INSURED WHICH IS DISCOVERED AFTER THE EFFECTIVE DATE OF SUCH TERMINATION. |
IN WIMESS WHTREOT. THE UND*RWRII»R HAS CAUSED THIS BCUID TO BE EXECUTED ON IHE
DECLARATIONS PANE. |
THIS RIDER, EFFECTIVE 12:01 AM FEBRUARY 21, 2008 FORMS G PART OF
BOND NUMBER 013-69-96 ISSUED TO
TRIANGLE CAPITAL CORPORATION TRIANGLE MEZZANINE
FUND, LLLP |
BY NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH. PA. |
NORTH CAROLINA REQUIREMENTS |
IT IS AGREED THAT SUBSECTION ID) OF SECTION 6 OL THE BOND OR SUBSECTION (91 OF THE POLICY
IS DELETED GND REPLACED BY THE FOLLOWING: |
LEGAL PROCEEDINGS FOR THE RECOVERY OF ANY LOSS HEREUNDER SHALL ROT BE BROUGHT PRIOR TO
THE EXPIRATION OF GO DAYS AFTER THE ORIGINAL PROOF OF LOSS IS FILED WITH THE
UNDE<WRITEI7COMPANY OR AFTER THE EXPIRATION OF 36 MONTHS FROM THE DISCOVERY OF SUCH
LOSS. |
FOR USE WITH FINANCIAL INSTITUTION BONDS, AUTHORISED REPRESENTATIVE
STANDARD FQRMS NQ£. 14. 15, 24, AND JS AMD
EXCESS BANK EMPLOYEE DISHQNESTV BONOS. |
STANDARD FORM NO. 28. AND COMPUTER CRIME
POLICY FOR FINANCIAL INSTITUTIONS TO COMPLY
WITH STATUTORY REQUIREMENTS. |
RIDER* 2
THIS RIDER, EFFECTIVE 12:01 AM FEBRUARY 21, 2008 FOIMS A PART OF |
ISSUED TO TRLAFIGLE CAPITAL CORPORATION
TRIANGLE MEZZANINE FUND, LLLP |
BY NATIONAL UNION FIRE INSURANCE C&TIPANY OF PITTSBURGH. PA. |
IN CONSIDERATION OF THE PREMIUM CHARGED, IT IS HEREBY UNDERSTOOD AND AGREED THAT: |
1. SECTION 12 TERMINATION OR CANCELATIGN OF THE ATTACHED BOND IS HEREBY AMENDED BY |
DELETING FROM THE FIRST SENTENCE THE WORDS THIS BOND TERMINATES AS AN
ENTIRETY UPON
OCCURRENCE OF ANY OF THE FOLLOWING: (A) 60 DAYS AFTER THE RECEIPT BY THE INSURED OF E
WRITTEN
NOTE* FROM THE UNDERWRITER OF ITS DESIF* TO CANCEL THIS BOND, OR ... AND REPLACING THEM
WITH
THE WORDS THIS BOND TERMINATES AS AN ENTIRETY UPON OCCURRENCE OF ANY OF THE FOLLOWING: -
|A) 90 DAYS AFTER THE RECEIPT BY THE INSURED OF A WRITTEN NOTICE IRORRI THE UNDERWRITER OF
ITS
DESIRE 10 CANCEL THIS BOND |
2. NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR
EXTEND ANY OF THE TERMS, |
LIMITATIONS, CONDITIONS OR AGREEMENTS OF THE ATTACHED BOND OTHER THAN AS ABOVE STATED. |
~R AUTHORIZED
REPRESENTATIVE |
THIS RIDER, EFFECTIVE 12:01 W FEBRUARY 21, 2008 FORMS A PART OF
BEND NUMBER 013-69-96 ISSUED TO
TRIANGLE CAPITAL CORPORATION TRIANGLE MEZZANINE
FUND. LLLP |
BY NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. |
1. EMPLOYEE AS USED IN THE ATTACHED BOND SHALL INCLUDE ANY NATURE! PERSON
WHO IS A |
DIRECTOR OR TRUSTEE OF THE INSURED WHILE SUCH DIRECTOR OR TRUSTEE IS ENGAGED IN HANDLING
FUNDS OR OTHER PROPERTY OF ANY EMPLOYEE WELFARE OR PENSION BENEFIT
PLAN OWNED,
CONTROLLED OR OPERATED BY THE INSURED OR ANY NATURAL PARSON WHO IS A
TRUSTEE, MANAGER1,
OFFICER OR EMPLOYEE OF ANY SUCH PLAN. |
2. IF THE BOND, IN ACCORDANCE WITH THE AGREEMENTS, LIMITATIONS AND
CONDITIONS THEREOF, |
COVERS LOSS SUSTAINED BY TWO OR MORE EMPLOYEE WELFARE OR PENSION BENEFIT
PLANS OR
SUSTAINED BY ANY SUCH PLAN IN ADDITION TO LOSS SUSTAINED BY AN INSURED OTHER THAN SUCH
PLAN, IT IS THE OBLIGATION OF THE INSURED OR THE PIER ADMINISTRATORS! OF EUCH PLANS UNDER |
REGULATIONS PUBLISHED HY THE SECRETARY OF LABOR IMPLEMENTING SECTION 13 OF THE WEI-FARE AND
PENSION PLANS DISCLOSURE ACT OF 1958 TO OBTAIN UNDER ONE OR MORE BONDS ISSUED BY ONE OR
MORE INSURERS AN AMOUNT OF COVERAGE FOR EACH SUCH PLAN AT LEAST EQUAL TO THAT WHICH WOULD
BE REQUIRED IF SUCH PLANS WERE BONDED SEPARATELY. |
3. IN COMPLIANCE WITH THE FOREGOING, PAYMENT BY THE COMPANY IN ACCORDANCE
WITH THE |
AGREEMENTS, LIMITATIONS AND CONDITIONS OF THE BOND SHALF BE HELD BY THE INSURED, OR, IF
MORE THAN ONE, BY THE INSURED FIRST NAMED, FOR THE USE AND BENEFIT OF ANY EMPLOYEE WELFARE
OR PENSION BENEFIT PLAN SUSTAINING LOSS SO COVERED AND TO THE EXTENT THAI SUCH PAYMENT IS
IN EXCESS OF THE AMOUNT OF COVERAGE REQUIRED BY SUCH REGULATIONS TO BE EARNED BY SAID PLAN
SUSTAINING SUCH LOSS, SUCH EXCESS SHALL BE HELD FOR THE USE AND BENEFIT OF ANY OTHER SUCH
PLAN ALSO COVERED IN THE EVENT THAT SUCH OTHER PLAN DISCOVERS THET IT HAS SUSTAINED LOSS
COVERED THEREUNDER. |
4. IF MONEY OR OTHER PROPERTY OF TWO OR MORE EMPLOYEE WELFARE OR PENSION BENEFIT PLANS |
COVERED UNDER THE BOND IS CORN MINGLED, RECOVERY FOR LOSS OF SUCH MONEY
OR OTHER
PROPERTY THROUGH FRAUDULENT OR DISHONEST ACTS OF EMPLOYEES SHALL BE SHARED
BY SUCH
PLANS ON A PRO RATA BASIS IN ACCORDANCE WITH THE AMOUNT FOR WHICH EACH
SUCH PLAN -S
REQUIRED TO CARRY BONDING COVERAGE IN ACCORDANCE WITH THE APPLICABLE PROVISIONS OF SAID
REGULATIONS. |
5. THE DEDUCTIBLE AMOUNT OF IHIS BOND APPLICABLE TO LOSS SUSTAINED BY A PLAN THROUGH ACTS |
COMMITTED BY AN EMPLOYEE OF THE PLAN SHALL BE WAIVED, BUT ONLY UP TO AN AMOUNT EQUAL |
TO THE AMOUNT OF COVERAGE REQUIRED TO BE CARRIED BY THE PLAN BECAUSE OF
COMPLIANCE |
WITH THE PROVISIONS OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. |
6. NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EICTEND ANY OF THE
TERMS, |
CONDITIONS, PROVISIONS, AGREEMENTS OR LIMITATIONS OF THE BOND, OTHER THAN AS STATED HEREIN. |
TO COMPLY WTTH BONDING REGULATIONS MADE APPLICABLE TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF IS 74. |
THIS FHDER SHOULD NOT K USED FOR |
ANY INSURED EXEMPTED FROM THE BONDING PROVISIONS OF THE ACT. |
AUTHORIZED REPRESENTATIVE |
RIDER* 4
THIS RIDER, EFFECTIVE 22:01 AIS FEBRUARY 21. 2008 FORMS A PART OI |
BOND NUMBER 013-69-96 ISSUED TO
TRIANGLE CAPITAL CORPORATION TRIANGLE MEZZANINE
FUND. LHP |
BY NATIONS! UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. |
COMPUTER SYSTEMS FRAUD INSURING AGREEMENT |
1. THE ATTACHED BOND IS AMENDED BY ADDING AN INSURING AGREEMENT AS FOLLOWS: |
LOSS RESULTING FROM A FRAUDULENT |
1) ENTRY OF ELECTRONIC DATA OR COMPUTER PROGRAM INTO, OR |
2) CHARGE OF ELECTRONIC DATA OR COMPUTER PROGRAM WITHIN |
SNY COMPUTER SYSTEM OPERATED BY THE INSURED, WHETHER OWNED OR LEASED; OR ANY COMPUTER
SYSTEM IDENTIFIED IN THE APPLICATION FOR THIS BOND; OR G COMPUTER SYSTEM FIRST USED BY
THE INSURED DURING THE BAND PERIOD, AS PROVIDED GENERAL AGREEMENT B OF THIS BOND; |
PROVIDED THAT THE ENTRY OR CHANGE CAUSES |
I; PROPERTY TO BE TRANSFERRED, PAID OR DELIVERED, |
II] AN ACCOUNT OF THE INSURED, OR OF ITS
CUSTOMER, TO BE ADDED, DELETED, DEBITED OR CREDITED, OR |
III) AN UNAUTHORISED ACCOUNT OR A FICTITIOUS ACCOUNT TO BE DEBITED OR CREDITED. |
IN THIS INSURING AGREEMENT, FRAUDULENT ENTRY OR CHANGE SHALL INCLUDE SUCH ENTRY OR
CHANGE MADE BY AN EMPLOYEE OF THE INSURED ACTING IN GOOD FAITH ON AN INSTRUCTION FROM
3 SOFTWARE CONTRACTOR WHO HAS A WRITTEN AGREEMENT WITH THE INSURED TO DESIGN,
IMPLEMENT OR SERVICE PROGRAMS FOR A COMPUTER SYSTEM COVERED BY THIS INSURING
AGREEMENT. |
2. IN ADDITION TO THE CONDITIONS AND LIMITATIONS IN THIS BOND, THE FOLLOWING,
APPLICABLE |
TO THE COMPUTER SYSTEMS FRAUD INSURING AGREEMENT, ARE ADDED: |
(A) COMPUTER PROGRAM MEANS A SET OI RELATED ELECTRONIC INSTRUCTIONS
WHICH DIRECT THE OPERATIONS SND FUNCTIONS OF A COMPUTER OR DEVICES CONNECTED TO
IT WHICH ENABLE THE COMPUTER OR DEVICES TO RECEIVE, PROCESS, STORE OR SEND
ELECTRONIC DATA; |
|B) COMPUTER SYSTEM MEANS |
(1} COMPUTERS WITH RELATED PERIPHERAL
COMPONENTS, INCLUDING STORAGE COMPARTMENTS WHEREVER LOCATED, |
(2) SYSTEMS A.IC APPLICATIONS SOFTWARE,
13) TERMINAL DEVICES, AND |
(4) RELATED COMMUNICATION NETWORKS |
BY WHICH ELECTRONIC DATA ARE ELECTRONICALLY COLLECTED, TRANSMITTED, PROCESSED, STORED
END RETRIEVED; |
(C) ELECTRONIC DATA RNEANS LACTS OR INFORMATION CONVERTED TO G FORM
USABLE IN A COMPUTER SYSTEM BY COMPUTER PROGRAMS, AND WHICH IS STORED ON
MAGNETIC TAPES OR DISKS, OR OPTICAL STORAGE DISKS OR OTHER BUTK MEDIA. |
(AL LOSS RESULTING DIRECTLY OR INDIRECTLY FROM THE ASSUMPTION OF
LIABILITY BY THE INSURED BY CONTRACT UNLESS THE OTHER LIABILITY ARI&ES FROM A
LOSS COVERED BY THE COMPUTER SYSTEMS FRAUD INSURING AGREEMENT AND WOULD BE
IMPOSED ON THE INSURED REGARDLESS OF THE EXISTENCE OF THE CONTRACT; |
IB) LOSS RESULTING DIIECTLY OR INDIRECTLY FROM NEGOTIABLE INSTRUMENTS,
SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS WHICH BEAR A FORGED
SIGNATURE, OR ARE COUNTERFEIT, ALTERED OR OTHERWISE FRAUDULENT AND WHICH ARE
USED AS SOURCE DOCUMENTATION IN THE PREPARATION OF ELECTRONIC DATA OR MANUALLY
KEYED INTO A (FATS TERMINAL; |
(C) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM |
(1) MECHANICAL FAILURE, FAULTY CONSTRUCTION, ERROR IN
DESIGN, LATENT DEFECT, FIRE, |
WEAR OR TEAR, GRADUAL DETERIORATION, OR ELECTRICAL DISTURBANCE OR
ELECTRICAL
SURGE WHICH AFFECTS A COMPUTER SYSTEM, OR |
(2) FAILURE OR BREAKDOWN OF ELECTRONIC DATA PROCESSING MEDIA, OR
|3) ERROR OR OMISSION IN PROGRAMMING OR PROCESSING; |
(D) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM THE INPUT OF
ELECTRONIC DATA INTO A |
COMPUTER SYSTEM TERMINAL DEVICE EITHER ON THE PREMISES OF A CUSTOMER OF THE
INSURED OR UNDER THE CONTROL OF SUCH A CUSTOMER BY A
PERSON WHO HAD
AUTHORIZED ACCESS TO THE CUSTOMERS AUTHENTICATION MECHANISM; |
(E) LOSS RESULTING DIRECTLY OR INDIRECTLY FROM THE THEFT OF CONFIDENTIAL INFORMATION. |
AM LOSS OR SERIES OF LOSSES INVOLVING THE FRAUDULENT ACTS OF ONE INDIVIDUAL, OR INVOLVING
FRAUDULENT ACTS IN WNICH ONE INDIVIDUAL IS IMPMCATED, WHETHER OR NOT THAT INDIVIDUAL IS
SPECIFICALLY IDENTIFIED, SHALL BE TREATED AS A SINGLE LOSS AND SUBJECT TO THE SINGLE LOSS
LIMITS OF LIABILITY. A SERIES OF LOSSES INVOLVING UNIDENTIFIED INDIVIDUALS BUT ARISING FROM
THE SAME METHGD GF OPERATION SHALL BE DEEMED TO INVOLVE THE SAME INDIVIDUAL AND IN THAT
EVENT SHALL BE TREATED AS A SINGLE LOSS AND SUBJECT TO THE SINGLE LOSS LIMIT OF LIABILITY. |
3, THE EXCLUSION BELOW, AS FOUND IN FINANCIAL BONDS FORMS 14 AND 25, DOES |
THE COMPUTER SYSTEMS FRAUD INSURING AGREEMENT. |
LOSS INVOLVING ANY UNCERTIHEATED SECURITY EXCEPT AN UNCERTIFICATED SECURITY OF ANY
FEDERAL RESERVE BANK OF THE UNITED STATES OR WHEN COVERED UNDER INSURING AGREEMENT
(A); |
FOR USE WITH FINANCIAL INSTITUTION BONDS, AUTHORIZED REPRESENTATIVE
STANTAFLC FOAMS NQS. 14. 1= AND 26. |
THIS ENDORSEMENT, EFFECTIVE 22:01 SIS FEBRUARY 21, 2008 FORMS A PART OF |
POLICY NUMBER 013-69-96 ISSUED TO TRIANGLE
CAPITAL CORPORATION TRIANGLE MEZZANINE FUND. LLLP |
BY NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH. PA. |
AMEND COUNTERFEIT CURRENCY (CURRENCY OF ANY COUNTRY} |
1. INSURING AGREEMENT F -COUNTERFEIT CURRENCY IS DELETED AND REPLACED WIIH THE |
2. THE UNDERWRITER SHAJI BE LIABLE UNDER THE ATTACHED BOND FOR: |
LOSS RESULTING DIRECTLY FROM THE RECEIPT TV THT INSURED, IN GOOD FAITH, OF ANY COUNTERFEIT
MONEY, COIN OR CURRENCY OF THE UNITED STATES OF AMERICA, CANADA OR ANY OTHER COUNTRY. |
3. NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE, OR EXTEND ANY
OF THE |
TERMS, LIMITATIONS. CONDINON$, OR PROVISIONS OF THE ATTACHED BOND OTHER THAN ABOVE
STATED. |
ALL OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED |
AUTHORIZED REPRESENTATIVF. |
RLDERFF 6
THIS RIDER, EFFECTIVE 12:01 AM FEBRUARY 21, 2008 FORMS A PART OF |
BOND NUMBER 013 69-96 ISSUED TO TRIANGLE CAPITAL
CORPORATION |
TRIANGLE MZMLHTTM. LLLP BY NATIONAL UNION FIRE INSURANCE COTNPANY OF
PITTSBURGH, PA. |
AMENDED RICO EXCLUSION LL IS AGREED THAT: |
1, EXCLUSION (J) IS HE?EBY AMENDED BY DELETING THE WORD ALLEGED AND REPLACING IT WITH |
2. NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ENY OF THE |
TERMS, LIMITATIONS, CONDITIONS OR AGREEMENTS OF THE ATTACHED BOND OTHER THAN AS
ABOVE STATED. |
AUTHORIZED REPRESENTATIVE |
RIDER# 7
THIS RIDER, EFFECTIVE 12:01 AM FEBRUARY 21. 2Q06 FORMS A PART OF |
BY NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH. PA, |
REPRESENTATION OF THE INSURED |
1. GENERAL AGREEMENT (D) REPRESENTATION OF INSURED IS HEREBY DELETED AND |
REPLACED BY THE FOLLOWING: |
REPRESENTATION OF INSURED |
{D) THE INSURED REPRESENTS THAT THE INFORMATION FURNISHED IN THE APPLICATION FOR |
THIS BOND IS COMPLETE, TRUE AND CORRECT. SUCH APPLICATION CONSTITUTES 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 THE
RESCISSION OF THIS BOND. |
2. NOTHING HEREIN CONTAINED SHALL BE HELD TO VARY, ALTER, WAIVE OR EXTEND ANY OF THE |
TERMS, LIMITATIONS, CONDITIONS OR AGREEMENTS OF THE ATTACHED BOND OTHER THAN AS
ABOVE STATED. |
AUTHORIZED REPRESENTATIVE RIDER 7 |
RIDER* 8
THIS RIDER, EFFECTIVE 12:01 SS!S FEBRUARY 21. 2008 FORMS A PART OF |
BOND NUMBER 013-69-96
ISSUED 10 TRIANGLE CAPITAL CORPORATION |
TRIANGLE MEZZANINE FUND, LLLP |
BY NATIONAL UNION FIFE INSURANCE COFKPSFTY OF PITTSBURGH, PA. |
1. THE UNDERWRITER WILL MARK ITS RECORDS TO INDICATE THAT THE SECURITIES AND |
EXCHANGE COMMISSION IS TO BE NOTIFIED PROMPTLY CONCERNING SUBSTANTIAL
MODIFICATION OF THE ATTACHED BOND, OR THE CANCELLATION OF THE ATTACHED BOND AS
AN ENTIRETY AS PROVIDED UNDER PARTS {A) AND (BJ OF SECTION 12, OR AS TO ANY
EMPLOYEE OR PARTNER COVERED THEREUNDER, WHETHER SUCH MODIFICATION OR
CANCELLATION BE EFFECTED BY NOTICE FROM THE INSURED OR THE UNDERWRITER. THE
UNDERWRITER WILL USE ITS BEST EFFORTS TO SO NOTIFY SAID DEPARTMENT BUT FAILURE TO
SO NOTIFY SAID DEPARTMENT SHALL NOT IMPAIR OR DELAY THE EFFECTIVENESS OF ANY SUCH
MODIFICATION OR CANCELLATION, |
2, NOTHING HEREIN CONTAINED SHELL BE HELD TO VERY, ALTER, WAIVE OR EXTEND ANY OF THE |
TERMS, LIMITATIONS, CONDITIONS OR AGREEMENTS OF THE ATTACHED BOND OTHER THAN AS
ABOVE STATED. |
RIDERJ 5
THIS ENDORSEMENT, EFFECTIVE 12:01 310 FEBRUARY 21, 200$ FORMS A PERT OF |
POLICY NUMBER 013-69 96 ISSUED TO
TRIANGLE CAPITAL CORPORATION TRIANGLE
MEZZANINE FUND. LLLP |
BY TOTIORTD? UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. |
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY
COVERAGE TERRITORY ENDORSEMENT |
AUTHORIZED REPRESENTATIVE |
PAYMENT OF LOSS UNDER THIS POLICY SHALL ONLY BE MADE IN FULL COMPLIANCE WITH ALL UNITED
SLATES OF AMERICA ECONOMIC OR TRADE SANCTION FAWS OR REGULATIONS, INCLUDING, BUT NOT
LIRNILED TO, SANCTIONS, LAWS AND REGULATIONS ADMINISTERED AND ENFORCED BV THIS U.S.
TREASURY DEPARTMENTS OFFICE C-F FOREIGN ASSETS CONTROL (OFAC). |
END 009
39644 17/051 PAGE 1 OF 1 |
THIS ENDORSEMENT, EFFECTIVE 12:01 DLFL |
POLICY NUMBER 013-69-S6 ISSUED 10 TRIABLE CAPITAL CORPORATION TRIANGLE MEZZANINE FUND, LLLP |
BY NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA. |
FORMS INDEX ENDORSEMENT THE CONTENTS OF THE POLICY IS
COMPRISED GF THE FOLLOWING FORMS: |
| |
EDITION
FORM NUMBER DATE HUK\L TITLE
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467Z6 12J87 FINANCIAL INSTITUTION BOND FORM # 14 DEC |
08^88 FINANCIAL FIDELITY FORM 14 GUTS |
SR 6L69B 10/87 NORTH CAROLINA RIDER |
57632 06^93 CANCELATIOM NOTFCE |
SR6196 COMPUTER SYSTEMS FRAUD INSURING AGREEMENT |
AMEND COUNTERFEIT CURRENCY { CURRENCY OF ANY COUNTRY) |
MNSCPR AMENDED RICO EXCLUSION |
HNSCPR REPRESENTATION OF THE INSURED |
NNSCPR NOTICE OF CHANGES RIDER |
B9644 07/05 COVERAGE TERRITORY ENDORSEMENT (OFAC) |
78859 IO;OI FORMS INDEX ENDORSEMENT |
ALL OTHER TERMS, CQMDITIQNS AND EXCLUSIONS REMAIM UNCHANGED. |
AUTHORIZED REPRESENTATIVE |
THANK YOU FOR PURCHASING INSURANCE FROM A MEMBER COMPANY OF AMERICAN INTERNATIONAL GROUP, INC.
(AIG}. THE AIG MEMBER COMPANIES GENERALLY PAY COMPENSATION TO BROKERS AND INDEPENDENT AGENTS, AND
MAY HAVE PAID COMPENSATION IN CONNECTION WITH YOUR POLICY- YOU CAN REVIEW AND OBTAIN INFORMATION
ABOUT IHE NATURE AND RANGE OF COMPENSATION PAID BY AIG MEMBER COMPANIES TO BROKERS AND INDEPENDENT
AGENTS IN THE UNITED STATES BY VISITING OUR WEBSITE AT WWW,AIGPRODUCERCOMPENSETION,COM OR BY
CALLING AIG AT 1-800-706-3102, |
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3600 Glenwood Avenue, #104 |
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Raleigh, NC 27612 |
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Steven C. Lilly |
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Chief Financial Officer |
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And Secretary |
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Direct: 919.719-4789 |
Secretarys Certificate
The undersigned hereby certifies that the attached resolution of Triangle Capital Corporations
Board of Directors dated February 6, 2008 and titled Fidelity Bonding is authentic.
IN WITNESS WHEREOF, I have hereunto set my hand as of the 13th day of May, 2008.
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/s/ Steven C. Lilly
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Steven C. Lilly, Secretary
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Triangle Capital Corporation |
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Resolution for Meeting
of the Board of Directors of
Triangle Capital Corporation (the Company)
Held February 6, 2008
Fidelity Bonding
WHEREAS, the Board has reviewed the renewal of the Companys Investment Company Bond,
issued by National Union Fire Insurance Company of Pittsburgh, PA (the Fidelity Bond), which
includes as joint insured the Companys wholly owned subsidiary, Triangle Mezzanine Fund LLLP (the
Fund); and
WHEREAS, the Board has considered, among other things: (i) the required amount of
fidelity bond coverage for a joint insured bond under the 1940 Act; (ii) the form and amount of
fidelity bond coverage in light of the value of the aggregate assets of the Company and the Fund;
(iii) the number of the insured parties; (iv) the amount of premium for the Fidelity Bond allocable
to the Company and the Fund, in the amounts set forth hereto as Exhibit B such premium
allocable to the Company having been paid for the period of February 21, 2008, to February 20,
2009; and (v) the comparative amount that the Company would have had to pay if it had provided and
maintained a single insured bond such amount being $10,553.25.
NOW, THEREFORE, BE IT RESOLVED, that the members of the Board, each of whom is not an
interested person under the 1940 Act, hereby acknowledge and agree that the Fidelity Bond is
reasonable in form and amount;
FURTHER RESOLVED, that the appropriate officers of the Company be, and they hereby are,
authorized to enter into the Fidelity Bond for the Company;
FURTHER RESOLVED, that any and all previous actions taken by the Companys officers,
principals or agents in connection with the Fidelity Bond be, and hereby are, approved and ratified
as duly authorized actions of the Company; and
FURTHER RESOLVED, that the appropriate officers of the Company be, and each of them hereby is,
authorized and directed, for and on behalf of the Company, to file the Fidelity Bond with the
Securities and Exchange Commission.
Exhibit B
Amounts of Premiums for Fidelity Bond
The
total premium for the Fidelity Bond is $14,071.00, such premium
being allocated to the Company and the Fund in the amounts of
$10,553.25 and $3,517.75, respectively.
Agreement Regarding Fidelity Bonding
This Agreement Regarding Fidelity Bonding is dated effective as of the 21st day of February,
2008, by and among Triangle Capital Corporation and Triangle Mezzanine Fund LLLP (the parties are
collectively referred to herein as the Insureds).
Whereas, the Insureds are parties to that certain Financial Institution Bond No.
013-69-96, a joint insured fidelity bond issued by National Union Fire Insurance Company of
Pittsburgh, PA in the amount of $5,000,000 (the Bond); and
Whereas, pursuant to Rule 17g-1(f) under the Investment Company Act of 1940 (the
Act), the Insureds desire to document their agreement regarding any future recovery due to either
or both of the Insureds under the Bond;
Now, Therefore, for and in consideration of the mutual promises hereinafter set forth
the Insureds hereby agree as follows:
Each of the Insureds acknowledges and agrees that in the event recovery of any amounts is
received under the Bond as a result of a loss sustained by both of the Insureds, the
Insureds shall receive an equitable and proportionate share of the recovery, but at least
equal to the amount which either Insured would have received had it provided and maintained
a single insured bond with the minimum coverage required by Rule 17g-1(d)(1) under the Act.
[Signature Page Follows]
In Witness Whereof, the Insureds have caused this Agreement to be executed by their respective
officers, thereunto duly authorized, as of the day and year first above written.
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TRIANGLE CAPITAL CORPORATION |
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By
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/s/ Garland S. Tucker, III
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Name: Garland S. Tucker, III |
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Title: President, Chief Executive Officer and Chairman of the |
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Board of Directors |
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TRIANGLE MEZZANINE FUND, LLLP |
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By:
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New Triangle GP, LLC, its general partner |
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By:
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Triangle Capital Corporation, its manager |
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By
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/s/ Garland S. Tucker, III
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Name: Garland S. Tucker, III |
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Title: President, Chief Executive Officer and Chairman |
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of the Board of Directors |
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