Cal. Code Regs. tit. 10, § 280.400

(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.

Note: Authority cited: Section 28951, Corporations Code. Reference: Sections 28152(d) and 28703, Corporations Code.

History

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).