Opinion ID: 11670
Heading Depth: 2
Heading Rank: 2

Heading: The Bond and Rider

Text: 6 Prior to May 1, 1984, USAT purchased a $15 million Standard Form Number 22 Savings and Loan Blanket Bond (the Bond) from Firemen's for coverage from May 1, 1984, until at least January 15, 1987. The general purpose of such a bond is to protect a financial institution from employee dishonesty or other human failings. USAT also purchased a fraudulent mortgages rider to the Bond, Standard Rider Number 5609e (the Rider). The general purpose of the Rider is to indemnify a financial institution for losses due to the receipt of real property mortgages or other like instruments that are defective by reason of fraud with respect to the signature thereon. Specifically, the Rider provided coverage up to limits of the Bond ($15 million) for: 7 Loss through the Insured's having, in good faith and in the course of business in connection with any loan, accepted or received or acted upon the faith of any real property mortgages, real property deeds of trust or like instrument pertaining to realty or assignments of such mortgages, deeds of trust or instruments which prove to have been defective by reason of the signature thereon of any person having been obtained through trick, artifice, fraud or false pretenses....