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. 38, September 20, 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.
