California Code of Regulations › Title 10 - Investment › Chapter 3 - Commissioner of Financial Protection and Innovation › Subchapter 2.3 - Capital Access Companies › Article 7 - Bonding › Section 280.400

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each licensed
				  capital access company shall provide and maintain a fidelity bond covering each
				  officer, director, partner, member, trustee, employee, or subject person, as
				  defined in Section
				  28700, who has access to or
				  responsibility for the securities or funds of the capital access company. The
				  fidelity bond may be either a primary commercial blanket bond or a blanket
				  position bond written by an insurer licensed by the California Insurance
				  Commissioner. The bond shall be filed in the Sacramento Office of the
				  Department of Business Oversight.
(b) The bond shall be renewed on at least an
				  annual basis and the amount the bond shall be at least equal to an amount
				  computed in accordance with the following schedule:
Amount of Licensed Capital Access
							 Company's Total Assets at End of Most Recent Fiscal Quarter Prior to Date of
							 Determination
In
							 Dollars
Minimum amount of Bond
5,000,000 to
7,500,000
150,000
7,500,000 to
10,000,000
175,000
10,000,000 to
15,000,000
200,000
15,000,000 to
20,000,000
225,000
20,000,000 to
25,000,000
250,000
25,000,000 to
35,000,000
300,000
35,000,000 to
50,000,000
350,000
50,000,000 to
75,000,000
400,000
75,000,000 to
100,000,000
450,000
100,000,000 to
150,000,000
525,000
150,000,000 to
250,000,000
600,000
250,000,000 to
500,000,000
750,000
500,000,000 to
750,000,000
900,000
750,000,000 to
1,000,000,000
1,000,000
1,000,000,000 to
							 1,500,000,000
1,250,000
1,500,000,000 to
							 2,000,000,000
1,500,000
over 2,000,000,000
200,000 for
							 each 500,000,000 of gross assets up to a maximum bond of 2,500,000.
(c)
				  The sufficiency of the sureties on the bond is at all times subject to the
				  approval of the Commissioner. The aggregate liability of the surety for all
				  claims shall in no event exceed the penal sum of the bond.
(d) The bond shall contain a provision that
				  the bond shall not be cancelled in whole or in part without 30 days written
				  notice to the Commissioner by the bonding or insurance company.
(e) The bond shall also provide that the
				  bonding or insurance company issuing the bond provide written notice to the
				  Commissioner within 10 days of service of any action against the bond and
				  immediately upon payment of any claims.
(f) The Commissioner may at any time require
				  an additional bond to be filed when in the Commissioner's opinion any bond then
				  in force is insufficient for any reason.
1. New
					 article 7 (section
					 280.400) and section filed
					 6-24-99; operative 7-1-99 pursuant to Government Code section
					 11343.4(d)
					 (Register 99, No. 26).
2. Change without regulatory effect amending
					 subsection (a) filed 8-13-2014 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2014, No. 33).
Note: Authority cited: Section
						28951,
						Corporations Code. Reference: Sections
						28152(d)
						and
						28703,
						Corporations Code.