2.3.2 Terms of the Specific Bond
1) The Specific Bond must contain provisions 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 Specific Bond must provide:
(A) 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) up to an aggregate maximum sum in respect of that case ("the Specific Penalty Sum") calculated in accordance with the provisions of Rule 2.3.3;
(B) for a schedule containing the name of the insolvent and the value of the insolvent's assets to be submitted to the surety or cautioner within such period as may be specified in the bond;
(C) that if at any time before the Insolvency Practitioner obtains the release or discharge in respect of acting in relation to an insolvent, the Insolvency Practitioner forms the opinion that the value of that insolvent's assets is greater than the current specific penalty sum, a revised Specific Penalty Sum shall be applicable on the submission within such time as may be specified in the bond of a cover schedule containing a revised value of the insolvent's assets; and
(D) for the payment of losses of the kind mentioned in sub-paragraph (1), whether they arise during the period in which the Insolvency Practitioner holds office in the capacity in which he was initially appointed or a subsequent period where he holds office in a subsequent capacity.
3) The terms of the Specific 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).|