FINANCIAL INSTITUTION BOND
STANDARD FORM NO. 24 (Revised to May, 2011)
a. National Commercial Banks, State Commercial Banks and Trust Companies.
b. American Agencies of Foreign Banks, Cooperative Credit Associations of Nebraska, Industrial Banks and Morris Plan Banks.
c. Title Insurance Companies:
1. which act as trust companies; or
2. which accept deposits for savings or checking accounts.
d. Federal Institutions, such as the Federal Reserve Banks, Federal Deposit Insurance Corporation, Joint Stock Land Banks, Federal Home Loan Banks and Federal Land Banks.
e. By rider, Savings Banks.
f. By rider, Savings and Loan Associations and Building and Loan Associations, Cooperative Banks in Massachusetts and Homestead Associations in Louisiana.
II. COVERAGE CONTAINED IN FORM 24
a. The basic bond coverage provided under Form 24 consists of Insuring Agreements A, B, C and F:
Insuring Agreement A - Fidelity
Covers loss resulting directly from dishonest or fraudulent acts committed by an employee acting alone or in collusion with others, with the manifest intent to cause the insured to sustain such loss and to obtain an improper financial benefit.
Insuring Agreement B - On Premises
Covers loss of property resulting directly from
1) robbery, burglary, misplacement, mysterious unexplainable disappearance and damage thereto or destruction thereof, or
2) theft, false pretenses, common-law or statutory larceny, committed by a person physically present in an office or on the premises of the insured at the time the property is surrendered, while the property is lodged or deposited within offices or premises located anywhere, except offices-premises specifically excludes.
Also covers loss or damage to the insured's furnishings, fixtures, supplies or equipment through specified perils, except loss or damage through fire.
Insuring Agreement C - In Transit
Covers loss of property resulting directly from robbery, common-law or statutory larceny, theft, misplacement, mysterious unexplainable disappearance, and damage thereto or destruction thereof, while the property is in transit anywhere in the custody of a messenger, or in the custody of a Transportation Company.
Insuring Agreement F - Counterfeit Money
Covers loss resulting directly from the receipt by the insured, in good faith, of any counterfeit money of the United States, Canada or any other country in which the insured maintains a branch office.
b. The following coverages contained in Form 24 are optional:
Insuring Agreement D - Forgery or Alteration
Forgery or Alteration Coverage is optional. Coverage is provided for loss resulting directly from forgery or alteration of, on or in any instrument specified in the Insuring Agreement.
Insuring Agreement E - Securities
Securities Coverage is optional. Coverage is provided for loss resulting directly from the insured having, in good faith, for its own account or for the account of others, acquired, sold or delivered, or given value, extended credit or assumed liability, on the faith of any original instrument specified in the Insuring Agreement which proves to bear a forged signature or which has been altered, lost or stolen.
Insuring Agreement G - Fraudulent Mortgages
Coverage is optional. Coverage is provided for loss resulting directly from having accepted or acted upon the faith of any real property mortgage which proves defective by reason of a fraudulent signature.
c. The following optional coverages may be added to Form 24 by rider:
Computer Systems Fraud Insuring Agreement
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.
Extortion - Threats to Persons Insuring Agreement
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 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 Agreement
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.
Issuers of Register Checks or Personal Money Orders Coverage -
Commercial Banks only
The rider covers as employees, issuers duly authorized by the insured to issue register checks or personal money orders drawn on the bank.
Servicing Contractors Insuring Agreement
The rider covers loss through any dishonest or fraudulent act committed by any servicing contractor as defined in the rider.
Transit Cash Letter Insuring Agreement
The rider covers loss resulting directly from the physical destruction or other loss of an item enclosed in a transit cash letter provided such item is still missing 21 days after the insured learns that the item has not arrived at the destination.
Unattended Automated Teller Machine Coverage
The rider covers loss or damage to an ATM machine through burglary and other perils.
Fraudulent Transfer Instructions Insuring Agreement
The rider covers loss directly from the transfer of money on deposit in a customer's account or of a customer's certificated or uncertificated securities upon a fraudulent instruction transmitted to the insured via telephone, telefacsimile or electronic mail.