Common use of Increased Coverage Clause in Contracts

Increased Coverage. The primary coverage amount of PMF and the primary coverage amount of PMCRP shall promptly be increased whenever required to comply with applicable federal statutes and regulations, including but not limited to Rule 17g-1 under the Investment Company Act of 1940. Each such increase shall automatically increase the amount stated in paragraph 1 above as the required primary coverage amount for that Insured, and this Agreement need not be amended to reflect the increased amount. PMC shall promptly take action to increase the total coverage amount (aggregate limit of liability) of the fidelity bond when and to the extent that (a) PMF’s Board of Trustees decides to increase the total coverage amount or (b) an increase in the total coverage amount is necessary because a required increase in the primary coverage amount of PMF or PMCRP would otherwise cause the total of the required primary coverage amounts of the three Insureds to exceed the total coverage amount of the fidelity bond.