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Insuring
Clauses |
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(continued) |
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Forgery Or
Alteration |
4 |
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Loss resulting directly
from: |
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a. |
Forgery on, or fraudulent material
alteration of, any bills of exchange, |
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checks, drafts, acceptances,
certificates of deposits, promissory notes, due |
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bills, money orders, orders upon
public treasuries, letters of credit, other |
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written promises, orders or
directions to pay sums certain in money, or |
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receipts for the withdrawal
of Property, or |
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b. |
transferring, paying or
delivering any funds or other Property, or
establishing |
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any credit or giving any value
in reliance on any written instructions, advices |
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or applications directed to the
ASSURED authorizing or acknowledging the |
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transfer, payment, delivery or
receipt of funds or other Property, which |
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instructions, advices or
applications fraudulently purport to bear the |
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handwritten signature of any
customer of the ASSURED, or shareholder or |
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subscriber to shares of
an Investment
Company, or of any
financial |
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institution
or Employee but which instructions,
advices or applications either |
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bear
a Forgery or have been fraudulently
materially altered without the |
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knowledge and consent of such
customer, shareholder, subscriber, financial |
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institution
or Employee; |
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excluding, however, under this
INSURING CLAUSE any loss covered under |
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INSURING CLAUSE 5. of this Bond,
whether or not coverage for INSURING |
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CLAUSE 5. is provided for in the
DECLARATIONS of this Bond. |
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For the purpose of this INSURING
CLAUSE, a mechanically reproduced facsimile |
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signature is treated the same as
a handwritten signature. |
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Extended
Forgery |
5 |
. |
Loss resulting directly from the
ASSURED having, in good faith, and in the |
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ordinary course of business, for
its own account or the account of others in any |
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capacity: |
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a. |
acquired, accepted or received,
sold or delivered, or given value, extended |
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credit or assumed liability, in
reliance on any original Securities, |
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documents or other
written instruments which prove to: |
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(1) |
bear
a Forgery or a fraudulently material
alteration, |
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(2) |
have been lost or stolen,
or |
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(3) |
be Counterfeit, or |
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b. |
guaranteed in writing or
witnessed any signatures on any transfer, |
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assignment, bill of sale, power
of attorney, guarantee, endorsement or other |
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obligation upon or in connection
with any Securities, documents or
other |
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written
instruments. |
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Actual physical possession, and
continued actual physical possession if taken as |
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collateral, of
such Securities, documents or
other written instruments by an |
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Employee,
Custodian, or a Federal or State
chartered deposit institution of the |
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ASSURED is a condition precedent
to the ASSURED having relied on such items. |
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Release or return of such
collateral is an acknowledgment by the ASSURED that it |
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no longer relies on such
collateral. |