a. The basic bond coverage provided under Form 23 consists of Insuring Clauses A, B, C and Redemption of United States Savings Bonds:
Insuring Clause A - Fidelity
Covers loss of property through any dishonest act of any of the employees, committed anywhere and whether committed alone or in collusion with others.
Insuring Clause B - On Premises
Covers loss of property through robbery, burglary, common-law or statutory larceny, theft, hold-up, damage or destruction:
- while the property is actually within any of the offices of the insured, or
- within the offices of any attorney retained by the insured, or
- within any recognized places of safe deposit in the United States.
- within the premises of any of the insured’s depository banks in the United States;
- or within the premises of any transfer or registration agent in the United States for purposes of issuance, registration or transfer.
Also covers loss of or damage to the insured’s offices, furnishings, fixtures or equipment through specified perils, except loss or damage through fire.
Insuring Clause C - In Transit
Covers loss of property through robbery, burglary, common-law or statutory larceny, theft or hold-up, while the property is in transit anywhere in the custody of any of the employees or any other person acting as messenger for the insured, or of any armored motor vehicle company.
Redemption of United States Savings Bonds Insuring Clause
Covers loss through paying or redeeming or guaranteeing or witnessing any signature upon any United States Savings Bonds, Series A to E inclusive, or Armed Forces Leave Bonds, which shall have been forged, counterfeited, altered, lost or stolen.
b. The following optional coverages may be added to Form 23 by rider:
Computer Systems Fraud Insuring Clause
The rider covers loss resulting directly from a fraudulent entry of electronic data or computer program into, or change of electronic data or computer program within a computer system covered under the terms of the rider.
Coverage for Data Processing Organizations
The rider covers as employees, data processing organizations while acting on behalf of the insured in the data processing of checks and other accounting records of the insured.
Extortion - Threats to Persons Insuring Clause
The rider covers loss of property surrendered away from an office to the insured as a result of a threat communicated to the insured to do bodily harm to a director, trustee, employee or partner of the insured or a relative of theirs who was, or allegedly was, kidnapped anywhere.
Extortion - Threats to Property Insuring Clause
The rider covers loss of property surrendered away from an office of the insured as a result of a threat communicated to the insured to do damage to the premises or property of the insured located anywhere.
Faithful Performance of Duty Coverage
Faithful Performance of Duty Coverage is available for those employees required by statute or regulation to have such coverage. The rider covers loss caused by the failure of such employees to faithfully perform their duties.
Insuring Clause D - Forgery or Alteration
The rider covers loss through the forgery or alteration of, on or in any instrument.
Misplacement Coverage
The rider covers loss of property through misplacement, mysterious unexplainable disappearance while the property is or is supposed to be lodged within any offices or premises of the insured.
Telefacsimile Transfer Fraud Insuring Clause
Telefacsimile Transfer Fraud Coverage is available for those institutions that also have purchased Computer Systems Fraud Coverage. The rider covers loss resulting directly from the insured having, in good faith, transferred or delivered funds, certificated securities or uncertificated securities through a computer system covered under the terms of the Computer Systems Fraud Rider, in reliance upon a fraudulent instruction received through a telefacsimile device.
Trading Loss Coverage
The rider covers loss resulting directly or indirectly from trading, whether in the name of the insured or otherwise, in a genuine or fictitious account.
Unattended Automated Teller Machine Coverage
The rider covers loss or damage to an ATM machine through burglary and other perils.
Voice Initiated Transfer Fraud Insuring Clause
Voice Initiated Transfer Fraud Coverage is available for those institutions that also have purchased Computer Systems Fraud Coverage. The rider covers loss resulting directly from the insured having, in good faith, transferred funds from a customer’s account through a computer system covered under the terms of the Computer Systems Fraud Rider, in reliance upon a fraudulent voice instruction transmitted by telephone.
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