(1) A person satisfies the requirement to hold adequate security if the person provides a General Bond which contains provision whereby a surety undertakes to be jointly and severally liable for losses in relation to the insolvent caused by:
(A) the fraud or dishonesty of the Insolvency Practitioner whether acting alone or in collusion with one or more persons; or
(B) the fraud or dishonesty of any person committed with the actual or constructive knowledge of the Insolvency Practitioner; and
(C) otherwise conforms to the requirements of this Rule.
(2) The terms of the General Bond shall provide for the payment, in respect of each case where the Insolvency Practitioner acts, of claims in respect of liabilities for losses of the kind mentioned in sub-paragraph (1) above up to a sum of USD250,000 ("the General Penalty Sum"), in the event that the amounts payable under a relevant Specific Bond are insufficient to meet all claims arising out of any case.
3) The terms of the General Bond may provide:
(A) that total claims in respect of the acts of the Insolvency Practitioner under all bonds relating to the Insolvency Practitioner are to be limited to a maximum aggregate sum (which shall not be less than USD25,000,000); and
(B) for a time limit within which claims must be made.
|Amended (as from 6th June 2017).|