Investment Adviser Surety Bond

INVESTMENT ADVISER SURETY BOND. This form is issued by the Washington State Department of Financial Institutions, Securities Division. It involves three parties: the principal (investment adviser), the surety (a corporation), and the state of Washington. The bond serves as a guarantee of financial responsibility for the investment adviser. The bond is in a specified penal sum, typically determined based on the requirements of the Securities Act of Washington. The principal and surety jointly and severally bind themselves to pay this sum to the state for the benefit of any interested person if the principal fails to fulfill its obligations as an investment adviser under the Securities Act. The conditions of the obligation stipulate that the principal must perform all obligations imposed on them as an investment adviser and properly account for all monies and securities received for the benefit of investors. If the principal fulfills these conditions, the obligation becomes null and void; otherwise, it remains in full force and effect. The bond allows any person with a claim for relief under the Securities Act of Washington to initiate a lawsuit against the principal and/or the surety. However, no suit can be maintained to enforce liability on the bond unless brought within three years after the sale or other act on which it is based. The surety has the right to withdraw from the bond by giving the principal and the Administrator of Securities thirty days' written notice, but the surety remains liable for any obligations incurred or accrued prior to the termination date. The form includes acknowledgments from the principal, surety, and notary public, confirming the execution of the bond and the authenticity of the signatures. www.FormsWorkflow.com