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D.C. Municipal Regulations (Last Updated: September 13, 2017) |
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Title 26. INSURANCE, SECURITIES, AND BANKING |
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SubTilte 26-B. SECURITIES |
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Chapter 26-B1. BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS, AND INVESTMENT ADVISER REPRESENTATIVES |
Section 26-B180. SURETY BOND
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180.1An investment adviser whose principal of business is located in the District and subject to the requirements of paragraph 179.2(b) shall file with the Department a Surety Bond in the amount of ten thousand dollars ($ 10,000.00).
180.2The text of the required Surety Bond Form shall be as follows:
Surety Bond
___ of ___ as principal, and ___ a corporation, incorporated under the laws of the state of ___ and authorized to write bonds in the District of Columbia, as Surety, are held and firmly bound to the District of Columbia. Department of Insurance and Securities Regulation of the District of Columbia for the use and benefit of any persons damaged by any breach of this obligation in the sum of $ 10,000.00 for the payment of which sum we bind our selves, our heirs, executors, administrators, successors and assigns, jointly and severally by these presents. The conditions of the bond are as follows:
(1)The above mentioned principal has applied or will apply for a registration as an investment adviser under the provisions of the Act.
(2)The above named principal is required to file a surety bond in accordance with provisions of the Section 203 (g)(1)(a) of the Act (D.C. Register at 47 DCR 7847), and § 179.2(b) thereunder.
(3)This bond is a continuing obligation and shall cover the full period or periods of registration of the principal, including initial and renewal registrations.
(4)The surety shall not be obligated on this bond unless the principal fails to count for all money and securities, or fails to discharge all obligations imposed on it by the Act and rules adopted thereunder.
(5)The liability of the surety for any one or more claims by any one or more persons shall not be cumulative and shall not exceed in the aggregate the sum of this bond.
(6)Any persons who may have a cause of action arising under the Act, or condition (4) of this bond, may bring suit on this bond.
(7)In the event that either the principal or the surety, or both, are served with notice of any suit on this bond, the person served with such notice shall immediately give written notice of the filing of such action to the District of Columbia Department of Insurance and Securities Regulation of the District of Columbia.
(8)No suit may be maintained to enforce any liability on the bond unless brought within two (2) years after the sale or other act upon which said liability is based.
(9)The surety or principal may cancel this bond by delivering sixty (60) days written notice to the District of Columbia Department of Insurance and Securities Regulation of the District of Columbia and to the other party(ies) to the bond. However, such cancellation shall not affect any liability incurred or accrued hereunder prior to the termination of said sixty-day period.