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DISHONESTY BOND
(FOR ANY TYPE OF BUSINESS)
Bond No. 66865465

In consideration of the agreed premium, Western Surety Company, a South Dakota corporation (the "Surety"), hereby

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agrees to indemnify Sierra Valley Ground Water District

P O box 88, Chilcoot, CA 96105

(the "Insured"), against any loss of money or other property which the Insured shall sustain or for which the Insured
shall incur liability to any Customer or Subscriber of the Insured through any fraudulent or dishonest act or acts
committed by any Employee or Employees of the Insured acting alone or in Collusion with others, the amount of
indemnity on each of such Employees being Five Thousand and 00/100

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DOLLARS ( $5,000.00 ).
THE FOREGOING AGREEMENT IS SUBJECT TO THE FOLLOWING CONDITIONS AND LIMITATIONS:
TERM OF BOND:
SECTION 1. The term of this bond begins with the 16th day of November , 2023 ,
standard time, at the address of the Insured above given, and ends at 12:00 o'clock night, standard time, on the effective
date of the cancellation of this bond in its entirety.

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EXCLUSION:
SECTION 2. This bond does not apply to loss, or to that part of any loss, as the case may be, the proof of which, either as
to its factual existence or as to its amount, is dependent upon an inventory computation or a profit and loss computation.
In addition, the policy does not apply to the defense of any legal proceedings brought against the Insured, or to fees, costs
or expenses incurred or paid by the Insured in prosecuting or defending any legal proceedings whether or not such
proceedings results or would result in a loss to the Insured covered by this policy. In addition, the Company shall not be
liable for any costs, fees and other expenses incurred by the Insured in establishing the existence or the amount of loss

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covered under this policy.
DISCOVERY PERIOD:
SECTION 3. Loss is covered under this bond only (a) if sustained through any act or acts committed by any Employee of
Insured while this bond is in force as to such Employee, and (b) if discovered prior to the expiration or sooner cancellation
of this bond in its entirety as provided in Section 10, or from its cancellation or termination in its entirety in any other
manner, whichever shall first happen.
DEFINITION OF EMPLOYEE:

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SECTION 4. The word Employee or Employees, as used in this bond, shall be deemed to mean, respectively, one or more
of the natural persons (except directors or trustees of the Insured, if a corporation, who are not also officers or employees
thereof in some other capacity) while in the regular service of the Insured in the ordinary course of the Insured's business
during the term of this bond, and whom the Insured compensates by salary or wages and has the right to govern and direct
in the performance of such service, and who are engaged in such service within any of the States of the United States of
America, or within the District of Columbia, Puerto Rico, the Virgin Islands, or elsewhere for a limited period, but not to
mean brokers, factors, commission merchants, consignees, contractors, or other agents or representatives of the same

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general character.
FRAUDULENT OR DISHONEST ACT:
SECTION 5. A FRAUDULENT OR DISHONEST ACT OF AN EMPLOYEE OF THE INSURED SHALL MEAN AN ACT
WHICH IS PUNISHABLE UNDER THE CRIMINAL CODE IN THE JURISDICTION WITHIN WHICH ACT
OCCURRED, FOR WHICH SAID EMPLOYEE IS TRIED AND CONVICTED BY A COURT OF PROPER
JURISDICTION.
MERGER OR CONSOLIDATION:

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SECTION 6. If any natural persons shall be taken into the regular service of the Insured through merger or consolidation
with some other concern, the Insured shall give the Surety written notice thereof and shall pay an additional premium on
any increase in the number of Employees covered under this bond as a result of such merger or consolidation computed
pro rata from the date of such merger or consolidation to the end of the current premium period.
NON-ACCUMULATION OF LIABILITY:
SECTION 7. Regardless of the number of years this bond shall continue in force and the number of premiums which shall
be payable or paid, the liability of the Surety under this bond shall not be cumulative in amounts from year to year or from
period to period.
Form 1432-7-2023
LIMIT OF LIABILITY UNDER THIS BOND AND PRIOR INSURANCE:
SECTION 8. With respect to loss or losses caused by an Employee or which are chargeable to such Employee as provided
in Section 5 and which occur partly under this bond and partly under other bonds or policies issued by the Surety to the
Insured or to any predecessor in interest of the Insured and terminated or cancelled or allowed to expire and in which the

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period for discovery has not expired at the time any such loss or losses thereunder are discovered, the total liability of the
Surety under this bond and under such other bonds or policies shall not exceed, in the aggregate, the amount carried
under this bond on such loss or losses or the amount available to the Insured under such other bonds or policies, as limited
by the terms and conditions thereof, for any such loss or losses, if the latter amount be the larger.
SALVAGE:
SECTION 9. If the Insured shall sustain any loss or losses covered by this bond which exceed the amount of coverage
provided by this bond, the Insured shall be entitled to all recoveries, except from suretyship, insurance, reinsurance,

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security or indemnity taken by or for the benefit of the Surety, by whomsoever made, on account of such loss or losses
under this bond until fully reimbursed, less the actual cost of effecting the same; and less the amount of the deductible
carried on the Employee causing such loss or losses; and any remainder shall be applied to the reimbursement of the
Surety.
CANCELLATION AS TO ANY EMPLOYEE:
SECTION 10. This bond shall be deemed cancelled as to any Employee: (a) immediately upon discovery by the Insured, or
by any partner or officer thereof not in collusion with such Employee, of any fraudulent or dishonest act on the part of

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such Employee; or (b) at 12:00 o'clock night, standard time, upon the effective date specified in a written notice served
upon the Insured or sent by mail. Such date, if the notice be served, shall be not less than ten days after such service, or, if
sent by mail, not less than fifteen days after the date of mailing. The mailing by Surety of notice, as aforesaid, to the
Insured at its principal office shall be sufficient proof of notice.
CANCELLATION AS TO BOND IN ITS ENTIRETY:
SECTION 11. This bond shall be deemed cancelled in its entirety at 12:00 o'clock night, standard time, upon the effective
date specified in a written notice served by the Insured upon the Surety or by the Surety upon the Insured, or sent by mail.

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Such date, if served by the Surety, shall be not less than ten days after such service, or if sent by the Surety by mail, not
less than fifteen days after the date of mailing. The mailing by the Surety of notice, as aforesaid, to the Insured at its
principal office shall be sufficient proof of notice. The Surety shall refund to the Insured the unearned premium computed
pro rata if this bond be cancelled at the instance of the Surety, or at short rates if cancelled or reduced at the instance of
the Insured.
PRIOR FRAUD, DISHONESTY OR CANCELLATION:
SECTION 12. No Employee, to the best of the knowledge of the Insured, or of any partner or officer thereof not in

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collusion with such Employee, has committed any fraudulent or dishonest act in the service of the Insured or otherwise. If
prior to the issuance of this bond, any fidelity insurance in favor of the Insured or any predecessor in interest of the
Insured and covering one or more of the Insured's Employees shall have been cancelled as to any of such Employees by
reason of (a) the discovery of any fraudulent or dishonest act on the part of such Employees, or (b) the giving of written
notice of cancellation by the insurer issuing said fidelity insurance, whether the Surety or not, and if such Employees shall
not have been reinstated under the coverage of said fidelity insurance or superseding fidelity insurance, the Surety shall
not be liable under this bond on account of such Employees unless the Surety shall agree in writing to include such

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Employees within the coverage of this bond.
LOSS—NOTICE—PROOF—LEGAL PROCEEDINGS:
SECTION 13. At the earliest practical moment, and at all events not later than fifteen days after discovery of any
fraudulent or dishonest act on the part of any Employee by the Insured, or by any partner or officer thereof not in
collusion with such Employee, the Insured shall give the Surety written notice thereof and within four months after such
discovery shall file with the Surety affirmative proof of loss, itemized and duly sworn to, and shall upon request of the
Surety render every assistance, not pecuniary, to facilitate the investigation and adjustment of any loss. No suit to recover

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on account of loss under this bond shall be brought before the expiration of two months from the filing of proof as
aforesaid on account of such loss, nor after the expiration of fifteen months from the discovery as aforesaid of the
fraudulent or dishonest act causing such loss. If any limitation in this bond for giving notice, filing claim or bringing suit
is prohibited or made void by any law controlling the construction of this bond, such limitation shall be deemed to be
amended so as to be equal to the minimum period of limitation permitted by such law.
PART-TIME OR TEMPORARY EMPLOYEES:
SECTION 14. The named Insured shall not at any time while this bond is in force direct any temporary or part-time

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Employee(s) to any subscriber's premises unless such Employee(s) is accompanied by a foreman who is in the regular
employ of the Insured.

SIGNED, SEALED AND DATED November 16th , 2023 .

WESTERN SURETY COMPANY

By VOID LARRY KASTEN, VICE PRESIDENT

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1-800-331-6053
Fax 1-605-335-0357
PO Box 5077 Sioux Falls SD 57117-5077 www.cnasurety.com

TO THE INSURED:
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Enclosed is the FIDELITY or DISHONESTY BOND you requested. You have
now taken the first step toward protecting yourself from potential losses due to

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embezzlement by employees.

To more completely protect yourself, you should make sure your business has
the following four internal controls:

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1. An ANNUAL AUDIT, preferably by someone outside the
business.

2. Someone other than the bookkeeper RECONCILE THE BANK

STATEMENT every month.

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3. Require TWO SIGNATURES ON EVERY CHECK.

4. Require every employee to TAKE A VACATION every year.

With these controls and a bond, the likelihood of an embezzlement loss to your
business is substantially reduced.

Sincerely,

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VOID
Larry Kasten
Vice President

Enclosure
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NOTICE TO INSUREDS ON DISHONESTY BONDS (FOR ANY TYPE OF
BUSINESS).

To protect you and your employees against unjustified allegations of

dishonesty, the employee must be convicted before coverage will apply.
 SRIDER

Western Surety Company

that instead of as originally written:
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It is hereby mutually agreed and understood by and between the Insured and

to read as follows:
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The definition of Employee found in Section 4

Owners/Officers are hereby excluded from the coverage of the bond.

of the bond be amended

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No further changes other than above.

conditions of the bond

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Nothing herein contained shall be held to vary, alter, waive or extend any of the terms, limits or

, except as hereinabove set forth.

VOID
This Rider becomes effective on the 16th
twelve and one minute o'clock a.m., standard time.
M day of November , 2023 , at

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Attached to and forming part of bond No. 66865465

issued by Western Surety Company

to Sierra Valley Ground Water District

Signed this 16th day of

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November , 2023 .

By VOID Larry Kasten, Vice President

Form F5769-10-2002