e40v17g
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549
Re: |
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Rule 17g-1 Fidelity Bond Filing for the following business development companies (each, a fund):
Fidus Investment Corporation (the Company)
Fidus Mezzanine Capital, L.P.
(File Nos. 333-172550; 333-175051) |
Ladies and Gentlemen:
Enclosed for filing, pursuant to Rule 17g-1 under the Investment Company Act of 1940, as amended
(the 1940 Act), please find the following information with respect to the above-captioned funds.
Please note the following for the Commissions records:
1. A copy of a joint Investment Company Bond issued by Axis Insurance Company (the
Bond),
Bond No. MNN761007/01/2011, which lists the funds as insureds, is enclosed under Exhibit 99-1.
2. A certificate of the Companys Corporate Secretary in which she attests to the
authenticity and accuracy of resolutions adopted by the members of the Companys Board of Directors
(including those members who are not interested persons, as defined in the 1940 Act, of the
Company) which authorize the purchase of a joint bond in a form and in an amount which is
consistent with Rule 17g-1 under the 1940 Act, is enclosed under Exhibit 99-2.
3. The Bond premium has been paid for the coverage period from June 21, 2011 to June 21,
2012, and the Bond is written for a $5,000,000 limit of liability. Had each fund not been named as
an insured under the Bond, each of the funds would have provided and maintained a separate bond in
the amount at least equal to $2,500,000.
4. A copy of the agreement among the funds entered into pursuant to paragraph (f) of Rule
17g-1 is enclosed under Exhibit 99-3.
Very truly yours,
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/s/ Cary L. Schaefer
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Cary L. Schaefer, Chief Compliance Officer |
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exv99w1
Exhibit 99.1
FINANCIAL INSTITUTION BOND
Standard Form No. 14, Revised to October, 1987
Bond No. MNN761007/01/2011
Axis Insurance Company
(Herein called Underwriter)
DECLARATIONS
Item 1. Name of Insured (herein called Insured):
Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
Principal Address:
1603 Orrington Avenue
Evanston, IL 60201
Item 2.
Bond Period: from 12:01 a.m. on June 21, 2011 to 12:01 a.m. on |
June 21, 2012 |
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(MONTH, DAY, YEAR)
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(MONTH, DAY, YEAR) |
standard time. |
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Item 3. |
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The Aggregate Liability of the Underwriter during the Bond Period shall be $5,000,000 |
Item 4. |
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Subject to Sections 4 and 11 hereof, the Single Loss Limit of Liability is $5,000,000 and the Single Loss Deductible is $25,000 |
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Provided, however, that if any amounts are inserted below opposite specified Insuring
Agreements or Coverage, those amounts shall be controlling. Any amount set forth below shall
be part of and not in addition to amounts set forth above. (If an Insuring Agreement or
Coverage is to be deleted, insert Not Covered.) |
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Single Loss |
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Single Loss |
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Amount applicable to: |
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Limit of Liability |
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Deductible |
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Insuring Agreement (A) FIDELITY |
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$ |
5,000,000 |
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$ |
0 |
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Insuring Agreement (B) ON PREMISES |
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$ |
5,000,000 |
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$ |
25,000 |
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Insuring Agreement (C) IN TRANSIT |
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$ |
5,000,000 |
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$ |
25,000 |
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Insuring Agreement (D) FORGERY OR ALTERATION |
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$ |
5,000,000 |
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$ |
25,000 |
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Insuring Agreement (E) SECURITIES |
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$ |
5,000,000 |
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$ |
25,000 |
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Insuring Agreement (F) COUNTERFEIT CURRENCY |
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$ |
5,000,000 |
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$ |
25,000 |
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Optional Insuring Agreements and Coverages: |
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Computer Systems |
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$ |
5,000,000 |
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$ |
50,000 |
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Uncollectible Items of Deposit |
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$ |
5,000,000 |
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$ |
50,000 |
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Unauthorized Signature |
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$ |
50,000 |
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$ |
50,000 |
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Audit Expense |
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$ |
50,000 |
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$ |
0 |
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If Not Covered is inserted above opposite any specified Insuring Agreement or Coverage,
such Insuring Agreement or Coverage and any other reference thereto in this bond shall be deemed to be deleted therefrom. |
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Item 5. The liability of the Underwriter is subject to the terms of the following riders attached hereto: |
Page 1 of 19
Riders:
ERISA Compliance Rider SR6145b;
Amend Insuring Agreement F to money issued by any country (manuscript);
Notification of Cancellation to the SEC SR5834c;
Computer Systems Fraud SR6196;
Uncollectible Items of Deposit (manuscript);
Unauthorized Signatures (manuscript);
Audit Expense (manuscript)
Item 6. The Insured by the acceptance of this bond gives notice to the Underwriter terminating or
canceling prior bond(s) or policy(ies) No.(s) N/A
such termination or cancelation to be effective as of the time this bond becomes effective.
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06/21/2011 |
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Authorized Representative
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Date |
IN WITNESS WHEREOF, the Company has caused the facsimile signatures of its President and secretary
to be affixed hereto, and has caused this policy to be signed on the Declarations Page by an
authorized representative of the Company.
AXIS Insurance Company
Gregory W. Springer
Andrew Weissert
President
Secretary
Page 2 of 19
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
to the Declarations, Insuring Agreements, General Agreements, Conditions and Limitations and other
terms hereof, agrees to indemnify the Insured for:
INSURING AGREEMENTS
FIDELITY
(A) Loss resulting directly from dishonest or fraudulent acts committed by an Employee acting
alone or in collusion with others.
Such dishonest or fraudulent acts must be committed by the Employee with the manifest intent:
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(a) |
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to cause the Insured to sustain such loss; and |
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(b) |
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to obtain financial benefit for the Employee and which, in fact, result in obtaining
such benefit. |
As used in this Insuring Agreement, financial benefit does not include any employee benefits
earned in the normal course of employment, including salaries, commissions, fees, bonuses,
promotions, awards, profit sharing or pensions.
ON PREMISES
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(B) |
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(1) Loss of Property resulting directly from |
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robbery, burglary, misplacement, mysterious unexplainable disappearance
and damage thereto or destruction thereof, or |
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(b) |
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theft, false pretenses, common-law or statutory larceny, committed by a
person present in an office or on the premises of the Insured, |
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while the Property is lodged or deposited within offices or premises located anywhere. |
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(a) |
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furnishings, fixtures, supplies or equipment within an office of the
Insured covered under this bond resulting directly from larceny or theft in, or by
burglary or robbery of, such office, or attempt thereat, or by vandalism or
malicious mischief, or |
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(b) |
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such office resulting from larceny or theft in, or by burglary or
robbery of such office or attempt thereat, or to the interior of such office by
vandalism or malicious mischief. |
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provided that |
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(i) |
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the Insured is the owner of such furnishings, fixtures,
supplies, equipment, or office or is liable for such loss or damage, and |
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(ii) |
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the loss is not caused by fire. |
IN TRANSIT
(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
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(a) |
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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 incapacity of the original
messenger), or |
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(b) |
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a Transportation Company and being transported in an armored motor vehicle, or |
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(c) |
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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: |
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(i) |
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records, whether recorded in writing or electronically, and |
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(ii) |
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Certified Securities issued in registered form and not endorsed, or with
restrictive endorsements, and |
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(iii) |
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Negotiable Instruments not payable to bearer, or not endorsed, or with
restrictive endorsements. |
Coverage under this 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 Order, 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
by any financial institution but which instructions or advices either bear a signature which is a
Forgery or 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 signature.
SECURITIES
(E) Loss resulting directly from the insured having, in good faith, for its own account or for
the account of others
(1) acquired, sold or delivered, or given value, extended credit or assumed liability, on the
faith of, any original
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(a) |
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Certificated Security, |
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(b) |
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deed, mortgage or other instrument conveying title to, or creating or
discharging a lien upon, real property, |
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(c) |
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Evidence of Debt, |
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(d) |
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Instruction to a Federal Reserve Bank of the United States, or |
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(e) |
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Statement of Uncertificated Security of any Federal Reserve Bank of the
United States |
which
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bears a signature of any maker, drawer, issuer, endorser,
assignor, lessee, transfer agent, registrar, acceptor, surety, guarantor, or of
any person signing in any other capacity which is a Forgery, or |
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(ii) |
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is altered, or |
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(iii) |
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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 (a) 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.
Page 3 of 19
COUNTERFEIT CURRENCY
(F) Loss resulting directly from the receipt by the Insured, in good faith, of any Counterfeit
Money of the United States of America, Canada or of any other country in which the Insured
maintains a branch office.
GENERAL AGREEMENTS
NOMINEES
A. Loss sustained by any nominee organized by the Insured for the purpose of handling certain
of its business transactions and composed exclusively of its Employees shall, for all the purposes
of this bond and whether or not any partner of such nominee is implicated in such loss, be deemed
to be loss sustained by the Insured.
ADDITIONAL OFFICES OR EMPLOYEESCONSOLIDATION, MERGER OR PURCHASE OF ASSETSNOTICE
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 of, another institution, the Insured shall not have such coverage as
is afforded under this bond for loss which
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has occurred or will occur in offices or premises, or |
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(b) |
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has been caused or will be caused by an employee or employees of such institution, or |
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(c) |
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has 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
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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 |
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(ii) |
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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 |
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(iii) |
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upon obtaining such consent, pay to the Underwriter an additional premium. |
CHANGE OF CONTROLNOTICE
C. When the Insured learns of a change in control, it shall give written notice to the
Underwriter.
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 by 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 shall 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 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 misrepresentation, omission, concealment or incorrect statement of a material fact, in the
application or otherwise, shall be grounds for the rescission of this bond.
JOINT INSURED
E. If two or more Insureds are covered under this bond, the first named Insured shall act for
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 or 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 all such loss or losses been sustained by one Insured.
NOTICE OF LEGAL PROCEEDINGS AGAINST INSUREDELECTION 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 collectible loss under
this bond. Concurrently, the Insured shall furnish copies of all pleadings and pertinent papers to
the Underwriter.
The Underwriter, at its sole option, may elect to conduct the defense of such legal
proceeding, in whole or in part. 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.
If the Underwriter elects to defend the Insured, in whole or in part, any judgment against the
Insured on those counts or causes of action which the Underwriter defended on behalf of the Insured
or any settlement in which the Underwriter participates and all attorneys 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 (a) of Section 5 of this bond
and in the first paragraph of this General Agreement, or if the Underwriter elects not to defend
any causes 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.
With respect to this General Agreement, subsections (b) and (d) of Section 5 of this bond
apply upon the entry of such judgment 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.
Page 4 of 19
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 to
honor as presented.
(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 or an
enterprise of the issuer or an obligation of the issuer, which is:
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represented by an instrument issued in bearer or registered form; |
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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 |
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either one of a class or series or by its terms divisible into a class or
series of shares, participations, interests or obligations. |
(d) Counterfeit means an imitation of an actual valid original which is intended to deceive
and to be taken as the original.
(e) Employee means
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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 salary or
commissions and whom the Insured has the right to direct and control while performing
services for the Insured; |
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an attorney retained by the Insured and an employee of such attorney while
either is performing legal services for the Insured; |
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a person provided by an employment contractor to perform employee duties for
the Insured under the Insureds supervision at any of the Insureds offices or premises
covered hereunder, and a guest student pursuing studies or duties in any of said
offices or premises; |
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(4) |
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an employee of an institution merged or consolidated with the Insured prior to
the effective date of this bond; |
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(5) |
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each natural person, partnership or corporation authorized by the Insured to
perform services as data processor of checks or other accounting records of the Insured
(not including preparation or modification of computer software or programs), herein
called Processor. (Each such Processor, and the partners, officers and employees of
such Processor shall, collectively, be deemed to be one Employee for 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 |
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(6) |
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a Partner of the Insured, unless not covered as stated in Item 4 of the
Declarations. |
(f) Evidence of Debt means an instrument, including a 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
partner(s), committing dishonest or fraudulent acts covered by this bond or concerned or implicated
therein means:
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as respects general partner(s) the value of all right, title and interest of
such general partner(s), determined as of the close of business on the date of
discovery of loss covered by this bond, in the aggregate of: |
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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,
participations 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;
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the value of all other Money, securities and property belonging to such
general partner(s), or in which such general partner(s) 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; |
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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
(g)(1)(b) 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 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 |
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as respects limited partners the value of such limited
partners () 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 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.
(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
Page 5 of 19
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
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signed by the maker or drawer; and |
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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 |
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is payable on demand or at a definite time; and |
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is payable to order or bearer. |
(n) Partner means a natural person who
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is a general partner of the Insured, or |
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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:
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a description of the Issue of which the Uncertificated Security is a part; |
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the number of shares or units: |
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transferred to the registered owner; |
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(b) |
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pledged by the registered owner to the registered pledgee; |
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(c) |
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released from pledge by the registered pledgee; |
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(d) |
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registered in the name of the registered owner on the date of the
statement; or |
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(e) |
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subject to pledge on the date of the statement; |
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the name and address of the registered owner and registered pledgee; |
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(4) |
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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 |
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(5) |
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the date: |
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the transfer of the shares or units to the new registered owner of the
shares or units was registered; |
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(b) |
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the pledge of the registered pledgee was registered, or |
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(c) |
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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:
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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; |
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(2) |
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of a type commonly dealt in on securities exchanges or markets; and |
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(3) |
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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 customers 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
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(1) |
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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 |
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(2) |
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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 customers account, whether
authorized or unauthorized, except the unlawful withdrawal and conversion of Money, securities or
precious metals, directly from a customers 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
Page 6 of 19
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
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in obtaining credit or funds, or |
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(2) |
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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 |
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(3) |
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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);
(m) loss through the surrender of Property away from an office of the Insured as a result of a
threat
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to do bodily harm to any person, except loss of Property in transit in the
custody of any person acting as messenger provided that when such transit was initiated
there was no knowledge by the Insured of any such threat, or |
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to do damage to the premises or property of the Insured, |
except when covered under Insuring Agreement (A);
(n) loss resulting directly or indirectly from payments made or withdrawals from a depositors
or customers account involving erroneous credits to such account, unless such payments or
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 covered under Insuring Agreement (A);
(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 from counterfeiting, except when covered under
Insuring Agreements (A), (E) or (F);
(q) loss of any tangible item of personal property which is not specifically enumerated in the
paragraph defining Property if such property is specifically insured by other insurance of any kind
and in any amount obtained by the Insured, and in any event, loss of such 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
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in the mail, or |
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(2) |
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in the custody of any Transportation Company, unless covered under Insuring
Agreement (C), |
except when covered under Insuring Agreement (A);
(s) potential income, including but not limited to interest and dividends, not realized by the
Insured or by any 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;
(u) all fees, costs and expenses incurred by the Insured
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in establishing the existence of or amount of loss covered under this bond, or |
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(2) |
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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;
(w) loss involving any Uncertificated Security except an Uncertificated Security of any
Federal Reserve Bank of the United States or when covered under Insuring Agreement (A);
(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 estate, loan,
insurance, property management, investment banking broker, agent or other representative of the
same general character;
(y) loss 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 the Deductible Amount applicable
to this bond, and then for 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 of 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.
DISCOVERY
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 exceed 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 made
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 previously reported to the Underwriter, and
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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 been 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 by 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, such loss shall
not reduce the Aggregate Limit of Liability.
Single Loss Limit of Liability
Subject to the Aggregate Limit of 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.
If a Single Loss is covered under more than one Insuring Agreement or
Page 7 of 19
Coverage, the maximum payable shall not exceed the largest applicable Single Loss Limit of
Liability.
Single Loss Defined
Single Loss means all covered loss, including court costs and attorneys fees incurred by the
Underwriter under General Agreement F, resulting from
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any one act or series of related acts of burglary, robbery or attempt thereat, in which
no Employee is implicated, or |
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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 of Property, or |
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all acts or omissions other than those specified in (a) and (b) preceding, caused by
any person (whether an Employee or not) or in which such person is implicated, or |
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any one casualty or event not specified in (a), (b) or (c) preceding. |
NOTICE/PROOFLEGAL PROCEEDINGS
AGAINST UNDERWRITER
Section 5.
(a) At the earliest practicable moment, not to exceed 30 days, after discovery of loss, the
Insured shall give the Underwriter notice thereof.
(b) Within 6 months after such discovery, the Insured shall furnish to the Underwriter proof
of loss, duly sworn to, with full particulars.
(c) Lost Certificated Securities listed in a proof of loss shall be identified by certificate
or bond numbers if such securities were issued therewith.
(d) Legal proceedings for the recovery of any loss hereunder shall not be brought prior to the
expiration of 60 days after the original proof of loss is filed 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 controlling the
construction hereof, such limitation shall be deemed to be amended so as to equal the minimum
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 hereunder by any one other than the named Insured.
VALUATION
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 in the United States of
America dollar equivalent thereof determined at the rate of exchange at the time of payment of such
loss.
Securities
The Underwriter shall settle in kind its liability under this bond on account of 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 time of such settlement. However, if
prior to such settlement the Insured shall be compelled by the demands of a third party or 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 of a loss of subscription, conversion or redemption privileges through the misplacement or
loss of securities, the amount of such loss shall 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 of this bond is subject to a Deductible Amount and/or is not
sufficient in amount to indemnify the Insured in full for the loss of securities for which claim is
made hereunder, the liability of the 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, blank pages or other
materials plus the cost of labor for the actual transcription or copying of data which shall have
been furnished by the Insured in order to reproduce such books and other records.
Property other than Money, Securities or Records
In case of loss of, or damage to, any Property other than Money, securities, books of account
or other records, or damage covered under Insuring Agreement (B)(2), the Underwriter shall not be
liable for more than the actual cash value of such Property, or of items covered under Insuring
Agreement (B)(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 cash value or
as to the adequacy of repair or replacement shall be resolved by arbitration.
Set-Off
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 such 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.
(b) In the event of payment under this bond, the Underwriter shall be subrogated 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 the Underwriter or by the Insured, shall be applied net of
the expense of such recovery first 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 or recovery from
reinsurance and/or indemnity of the Underwriter shall not be deemed a recovery as used herein.
(d) Upon the Underwriters request and at reasonable times and places designated by the
Underwriter the Insured shall
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(1) |
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submit to examination by the Underwriter and subscribe to the same under oath;
and |
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(2) |
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produce for the Underwriters examination all pertinent records; and |
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(3) |
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cooperate with the Underwriter in all matters pertaining to the loss. |
(e) The Insured shall 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 8. With respect to any loss set forth in sub-section (c) 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
Page 8 of 19
expired at the time any such loss thereunder is discovered, the total liability of the 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 if the latter amount
be the larger.
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,
cancelation or expiration and discovered within the period permitted under such 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 bond as is in excess of the amount recoverable or recovered on account of
such loss under such other bond or 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 than the Insured on
Property subject to exclusion (q) or by a Transportation Company, or by another entity on whose
premises the loss occurred or which employed the person causing the loss or the messenger conveying
the Property involved.
OWNERSHIP
Section 10. This bond shall apply to loss of Property (1) owned by the Insured, (2) held by
the Insured in any capacity, or (3) for which the Insured is legally liable. This bond shall be for
the sole use and benefit of the Insured named in the Declarations.
DEDUCTIBLE AMOUNT
Section 11. The Underwriter shall be liable hereunder only for the amount by which any single
loss, as defined in Section 4, exceeds the Single Loss Deductible amount for the Insuring Agreement
or Coverage applicable to such 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:(a)
60 days after the receipt by the Insured of a written notice from the Underwriter of its desire to
cancel this bond, or (b) immediately upon the receipt by the Underwriter of a written notice from
the Insured of its desire to cancel this bond, or (c) immediately upon the taking over of the
Insured by a receiver or other liquidator or by State or Federal officials, or (d) immediately upon
the taking over of the Insured by another institution, or (e) immediately upon exhaustion of the
Aggregate Limit of Liability, or (f) immediately upon expiration of the Bond Period as set forth in
Item 2 of the Declarations.
This bond terminates as to any Employee or any partner, officer or employee of any
Processor(a) as soon as any Insured, or any director or officer not 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 the 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 (b) 15 days after the receipt by the
Insured of a written notice from the Underwriter of its desire to cancel this bond as to such
person.
Termination of the bond as to any Insured terminates liability for any loss sustained by such
Insured which is discovered after the effective date of such termination.
In witness whereof, the Underwriter has caused this bond to be executed on the Declarations page.
Page 9 of 19
RIDER 1
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
It is agreed that:
1. Employee as used in the attached bond shall include any natural 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 person who is a trustee, manager, 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 Plan Administrator(s) of such Plans under Regulations published by the Secretary of
Labor implementing Section 13 of the Welfare 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 shall 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 that such payment is in excess of the amount of
coverage required by such Regulations to be carried 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 that 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 commingled, 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 is required to carry bonding coverage in accordance with the
applicable provisions of said Regulations.
5. The Deductible Amount of this 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 extend any of the terms,
conditions, provisions, agreements or limitations of the bond, other than as stated herein.
7. This rider is effective as of 12:01 a.m. on June 21, 2011.
Accepted:
ERISA RIDER
TO COMPLY WITH BONDING REGULATIONS MADE APPLICABLE TO THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT OF 1974.
NOTE: This rider should not be used for any insured exempted from the bonding
provisions of the Act.
REVISED TO JUNE, 1990.
Page 10 of 19
Rider No. 2
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
MANUSCRIPT RIDER
THIS RIDER CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This rider modifies insurance provided under the following:
FINANCIAL INSTITUTION BOND, Standard Form 14
In consideration of the premium charged, it is agreed that:
1. |
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Insuring Agreement (F), COUNTERFEIT CURRENCY, is deleted and amended to read in its entirety
as follows: |
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(F) |
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Loss resulting directly from the receipt by the Insured, in good faith, of any
Counterfeit Money of the United Stated of America, Canada or any other country. |
2. |
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Nothing herein contained shall be held to vary, alter, waive or extend any of the terms,
limitations conditions or agreements on the attached bond other than as stated above. |
All other provisions remain unchanged.
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Authorized Representative |
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June 21, 2011
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Date
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Page 11 of 19
RIDER 3
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
It is agreed that:
1. The attached bond shall not be canceled, as provided in parts (a) and (b) of Section 12. or
modified by rider except after written notice shall have been given by the acting party to the
affected party, and to the Securities and Exchange Commission, Washington, D.C., not less than
sixty days prior to the effective date of such cancelation or modification.
2. This rider shall become effective when the bond becomes effective.
Accepted:
S.E.C.SOLE INSURED CANCELATION CLAUSE RIDER
FOR USE WITH FINANCIAL INSTITUTION BOND, STANDARD FROM NO. 14, WHEN
ISSUED TO A REGISTERED MANAGEMENT INVESTMENT COMPANY COVERED AS
A SOLE INSURED, TO COMPLY WITH THE RULES OF THE SECURITIES AND
EXCHANGE COMMISSION.
REVISED TO OCTOBER, 1987
Page 12 of 19
RIDER 4
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
It is agreed that:
1. The attached bond is amended by adding an Insuring Agreement as follows:
COMPUTER SYSTEMS FRAUD
Loss resulting directly from a fraudulent
(1) entry of Electronic Data or Computer Program into, or
(2) change of Electronic Data or Computer Program within
any Computer System operated by the Insured, whether owned or leased; or any Computer
System identified in the application for this bond; or a Computer System first used by
the Insured during the Bond Period, as provided by General Agreement 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 unauthorized account or a fictitious account to be debited or
credited.
In this Insuring Agreement, fraudulent entry of change shall include such entry or change
made by an Employee of the Insured acting in good faith on an instruction from a software
contractor who has a written agreement with the Insured to design, implement or service
programs for a Computer System covered by this Insuring Agreement.
2. In addition to the Conditions and Limitations in the bond, the following, applicable to the
Computer Systems Fraud Insuring Agreement, are added:
DEFINITIONS
(A) Computer Program means a set of related electronic instructions which direct
the operations and functions of a computer or devices connected to it which enable the
computer or devices to receive, process, store or send Electronic Data;
(B) Computer System means
(1) computers with related peripheral components, including storage
components wherever located,
(2) systems and applications software,
(3) terminal devices, and
(4) related communications networks
by which Electronic Data are electronically collected, transmitted, processed, stored and
retrieved;
(C) Electronic Data means facts or information converted to a form usable in a
Computer System by Computer Programs, and which is stored on magnetic tapes or disks,
or optical storage disks or other bulk media.
Accepted:
COMPUTER SYSTEMS FRAUD INSURING AGREEMENT
FOR USE WITH FINANCIAL INSTITUTION BONDS, STANDARD FORMS NOS. 14, 15 AND 25
ADOPTED DECEMBER, 1993
SR 6196
Page 13 of 19
EXCLUSIONS
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(A) |
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loss resulting directly or indirectly from the assumption of liability by the
Insured by contract unless the liability arises from a loss covered by the Computer
Systems Fraud Insuring Agreement and would be imposed on the Insured regardless of the
existence of the contract: |
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(B) |
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loss resulting directly or indirectly from negotiable instruments, securities,
documents or other written instruments which bear a forged signature, or are
counterfeit, altered or otherwise fraudulent and which are used as source documentation
in the preparation of Electronic Data or manually keyed into a data terminal; |
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(C) |
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loss resulting directly or indirectly from |
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mechanical failure, faulty construction, error in design, latent
defect, fire, wear or tear, gradual deterioration, electrical disturbance or
electrical surge which affects a Computer System, or |
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(2) |
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failure or breakdown of electronic data processing media, or |
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(3) |
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error omission in programming or processing; |
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(D) |
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loss resulting directly or indirectly from the input of Electronic Data into a
Computer System terminal device either on the premises of a customer of the Insured or
under the control of such a customer by a person who had authorized access to the
customers authentication mechanism; |
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(E) |
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loss resulting directly or indirectly from the theft of confidential
information. |
SERIES OF LOSSES
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All loss or series of losses involving the fraudulent acts of one individual, or involving
fraudulent acts in which one individual is implicated, whether or not that individual is
specifially identified, shall be treated as a Single Loss and subject to the Single Loss
Limit of Liability. A series of losses involving unidentified individuals but arising from
the same method of operation shall be deemed to involve the same individual and in that
event shall be treated as a Single Loss and subject to the Single Loss Liability. |
3. The exclusion below, found in financial institution bonds forms 14, and 25, does not apply
to the Computer Systems Fraud Insuring Agreement.
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loss involving any Uncertificated Security except an Uncertificated Security of any Federal
Reserve Bank of the United States or when covered under Insuring Agreement (A); |
4. This rider shall become effective as of 12:01 a.m. on June 21, 2011.
Page 14 of 19
Rider No. 5
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
THIS RIDER CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This rider modifies insurance provided under the following:
FINANCIAL INSTITUTION BOND, Standard Form 14
It is agreed that:
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An additional Insuring Agreement is added as follows: |
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(J) |
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Loss resulting directly from the Insured 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: |
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a. |
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redemptions or withdrawals to be permitted, |
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b. |
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shares to be issued, or |
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c. |
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dividends to be paid, |
from an account of an Investment Company .
In order for coverage to apply under this Insuring Agreement, the Insured 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 Insureds
standard collection procedures have failed.
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The following paragraph is substituted for Section 2 (o): |
(o) loss resulting directly or indirectly from payments made or withdrawals from a depositors
account 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) or (J);
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The Underwriters total liability under this rider shall be limited to
$5,000,000 and is subject to a deductible of $50,000. |
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4. |
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Nothing herein contained shall be held to vary, alter, waive or extend any of the
terms, limitations, conditions or agreements or the attached policy other than as above
stated. |
All other provisions remain unchanged.
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Authorized Representative |
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Date June 21, 2011
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Page 15 of 19
Rider No. 6
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
UNAUTHORIZED SIGNATURES COVERAGE MANUSCRIPT RIDER
THIS RIDER CHANGES THE BOND. PLEASE READ IT CAREFULLY.
This rider modifies insurance provided under the following:
FINANCIAL INSTITUTION BOND, Standard Form 14
It is agreed that:
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The attached bond is amended to include the following insuring agreement: |
Unauthorized Signatures
Loss resulting directly from the Insured having accepted, paid or cashed any check or withdrawal
order made or drawn on a customers account which bears the signature or endorsement of one
other than a person whose name and signature is on file with the Insured as a signatory on such
account. It shall be a condition precedent to the Insureds right of recovery under this Coverage
that the Insured shall have on file signature of all persons who are signatories on such account.
2. The Limit of Liability on this Agreement is $50,000 subject to a deductible of $50,000.
3. Nothing herein contained shall be held to vary, alter, waive or extend any of the terms,
limitations,
conditions or agreements of the attached policy other than as above stated.
All other provisions remain unchanged.
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Authorized Representative |
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Date June 21, 2011
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Page 16 of 19
Rider No. 7
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Bond Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation;
Fidus Mezzanine Capital, LP;
By: Axis Insurance Company
THIS RIDER CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This rider modifies insurance provided under the following:
FINANCIAL INSTITUTION BOND, Standard Form 14
It is agreed that:
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3. |
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An additional paragraph, as follows, is inserted as the fifth paragraph of the Fidelity
Insuring Agreement. |
Audit
Expense Coverage: $50,000
(for coverage, an amount must be inserted)
This Insuring Agreement shall be subject to a Deductible of $0
Expense incurred by the Insured for that part of the cost of audits or examinations
required by State or Federal supervisory authorities to be conducted either by such
authorities or by independent accountants by reason of the discovery of loss sustained
by the Insured through dishonest or fraudulent acts of the Employees. The total
liability of the Underwriter for such expense by reason of such acts of any. Employee or
in which such Employee is concerned or implicated or with respect to any one audit or
examination is limited to the amount stated opposite Audit Expense Coverage; it being
understood, however, that such expense shall be deemed to be loss sustained by the
Insured through dishonest or fraudulent act of one or more of the Employees and the
liability of the Underwriter under this paragraph of Insuring Agreement (A) shall be
part of and not in addition to the Single Loss Limit of Liability stated in Item 4 of
the Declarations.
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The following paragraph is substituted for Section 2 (d): |
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(d) |
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loss resulting directly or indirectly from any acts of any director or
trustee of the Insured other than one employed as a salaried, pensioned or elected
official or an Employee of the Insured, expect when performing acts coming within
the scope of the usual duties of an Employee, or while acting as a member of any
committee duly elected or appointed by resolution of the board of directors or
trustees of the Insured to perform specific, as distinguished from general,
directorial acts on behalf of the Insured; |
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The following paragraph is substituted for Section 2 (u); |
(u) all fees, costs and expenses incurred by the Insured
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(1) |
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in establishing the existence of or amount of loss
covered under this bond, except to the extent covered under the portion
of Insuring Agreement (A) entitled Audit Expense, or |
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(2) |
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as a party to any legal proceeding whether or not
such legal proceeding exposes the Insured to loss covered by this bond; |
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The following is added as the final paragraph of Section 5; |
If the Insured is an institution under the supervision of the Office of Thrift
Supervision, it is understood and agreed that in case of any loss hereunder discovered
either by the Insured or by the Federal Home Loan Bank of which the Insured is a member,
the said Federal Home Loan Bank is empowered to give notice of the loss to the
Underwriter within the period limited therefore.
Page 17 of 19
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Nothing herein contained shall be held to vary, alter, waive or extend any of the terms,
limitations, conditions or agreements or the attached policy other than as above stated. |
All other provisions remain unchanged.
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Authorized Representative |
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Date June 21, 2011
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Page 18 of 19
Rider No. 8
Effective date of this rider: 12:01 a.m. on June 21, 2011
To be attached to and form part of Policy Number: MNN761007/01/2011
Issued to: Fidus Investment Corporation
Fidus Mezzanine Capital, LP
By: Axis Insurance Company
MANUSCRIPT RIDER
THIS RIDER CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This rider modifies insurance provided under the following:
FINANCIAL INSTITUTION BOND, Standard Form 14
It is agreed that Definition (e) Employee is amended by the addition of the following:
(7) any officer, partner or employee of an investment advisor, an underwriter (distributor), a
transfer agent or shareholder accounting record-keeper, or an administrator authorized by written
agreement to keep financial and/or other required records, for an investment company named as
Insured while performing acts coming within the scope of the usual duties of an officer or employee
of any investment company named as Insured herein, or while acting as a member of any committee
duly elected or appointed to examine or audit or have custody of or access to the Property of any
such investment company, provided that only employees or partners of a transfer agent, shareholder
accounting record-keeper or administrator which is an affiliated person as defined in the
Investment Company Act of 1940, of an investment company named as Insured or is an affiliated
person of the adviser, underwriter or administrator of such investment company, and which is not a
bank, shall be included within the definition of Employee.
All other provisions of the bond remain unchanged.
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Authorized Representative |
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Date June 21, 2011
Page 19 of 19
exv99w2
Exhibit 99.2
Secretarys Certificate
The undersigned hereby certifies that the below resolutions of Fidus Investment Corporations Board
of Directors, dated June 14, 2011, is authentic.
IN WITNESS WHEREOF, I have hereunto set my hand as of the 1st day of July, 2011.
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/s/ Cary L. Schaefer
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Cary L. Schaefer |
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Corporate Secretary |
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RESOLUTIONS OF THE BOARD OF DIRECTORS OF
FIDUS INVESTMENT CORPORATION
Held June 14, 2011
The Board of Directors (the Board) of Fidus Investment Corporation, a Maryland corporation
(the Corporation), hereby (1) takes the following actions and adopts the following resolutions at
a meeting of the Board held on June 14, 2011; and (2) directs the Secretary of the Corporation to
file these resolutions with the minutes of the proceedings of the Corporation:
WHEREAS, the Board has reviewed the Corporations Financial Institution Bond No.
MNN761007/01/2011 on the terms set forth therein, issued by Axis Insurance Company (the Fidelity
Bond), which includes as a joint insured, Fidus Mezzanine Capital, L.P. (the Fund), which will
be the Corporations wholly-owned subsidiary upon the consummation of the Corporations
contemplated initial public offering; and
WHEREAS, the Board has considered, among other things: (i) the required amount of fidelity
bond coverage for a joint insured bond under the Investment Company Act of 1940, as amended (the
1940 Act); (ii) the form and amount of fidelity bond coverage in light of the value of the
aggregate assets of the Corporation and the other insured parties; (iii) the number of the insured
parties; (iv) the amount of premium for the Fidelity Bond allocable to the Corporation and the
Fund, which is $7,514 and $7,514, respectively; and (v) the amount of the single insured bond which
the Company and the Fund would have provided and maintained had they not been named as the insured
under a joint insured bond, as set forth on Schedule A hereto;
THEREFORE BE IT RESOLVED, that the members of the Board, a majority of whom are not interested
persons under the 1940 Act, hereby acknowledge and agree that the Fidelity Bond is reasonable in
form and amount;
RESOLVED, FURTHER, that the appropriate officers of the Corporation be, and they hereby are,
authorized to enter into the Fidelity Bond for the Corporation;
RESOLVED, FURTHER, that any and all previous actions taken by the Corporations officers,
principals or agents in connection with the Fidelity Bond be, and hereby are, approved and ratified
as duly authorized actions of the Corporation.
RESOLVED, FURTHER, that the appropriate officers of the Corporation be, and each of them
hereby is, authorized and directed, for and on behalf of the Corporation, to file the Fidelity Bond
with the Securities and Exchange Commission and to give the notices with respect to such bond
required by the 1940 Act.
Schedule A
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Fund |
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Single Insured Bond Coverage |
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Fidus Investment Corporation |
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$ |
2,500,000 |
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Fidus Mezzanine Capital, L.P. |
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$ |
2,500,000 |
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exv99w3
Exhibit 99.3
AGREEMENT REGARDING FIDELITY BONDING
This Agreement Regarding Fidelity Bonding is dated effective as of the 1st day of
July, 2011, by and among Fidus Investment Corporation and Fidus Mezzanine Capital, L.P. (the
parties are collectively referred to herein as the Insureds).
WHEREAS, the Insureds are parties to that certain Financial Institution Bond No.
MNN761007/01/2011, a joint insured fidelity bond issued by Axis Insurance Company 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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FIDUS INVESTMENT CORPORATION
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By: |
/s/ Edward H. Ross
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Name: |
Edward H. Ross |
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Title: |
Chairman, President, and Chief Executive Officer |
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FIDUS MEZZANINE CAPITAL, L.P.
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By: |
Fidus Investment GP, LLC, its general partner
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By: |
Fidus Investment Advisors, LLC, its manager
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By: |
/s/ Edward H. Ross
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Name: |
Edward H. Ross |
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Title: |
Chief Executive Officer |
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