|
NOW, THEREFORE, IT IS RESOLVED, that the officers of the Fund are authorized and directed to cause each of its Series to participate in the joint insured broker's blanket bonds in the aggregate amount of $40,000,000, which also covers the other Delaware Investments Funds, and that the Fund shall pay its share of the premium determined in accordance with the allocation methodology discussed with the Trustees/Directors; and it is further
|
Chubb Group of Insurance Companies
|
DECLARATIONS
|
|||||||||
FINANCIAL INSTITUTION INVESTMENT
|
||||||||||
15 Mountain View Road, Warren, New Jersey 07059
|
COMPANY ASSET PROTECTION BOND
|
|||||||||
NAME OF ASSURED (including its Subsidiaries):
|
Bond Number: 81951478
|
|||||||||
DELAWARE INVESTMENT ADVISERS
|
||||||||||
FEDERAL INSURANCE COMPANY
|
||||||||||
2005 MARKET STREET
|
Incorporated under the laws of Indiana
|
|||||||||
PHILADELPHIA, PA 19103
|
a stock insurance company herein called the COMPANY
|
|||||||||
Capital Center, 251 North Illinois, Suite 1100
|
||||||||||
Indianapolis, IN 46204-1927
|
||||||||||
ITEM 1.
|
BOND PERIOD:
|
from
|
12:01 a.m. on
|
October 31, 2010
|
||||||
to
|
12:01 a.m. on
|
October 31, 2011
|
||||||||
ITEM 2.
|
LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
|
|||||||||
If “Not Covered” is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE
|
||||||||||
and any other reference shall be deemed to be deleted. There shall be no deductible applicable to any
|
||||||||||
loss under INSURING CLAUSE 1. sustained by any Investment Company.
|
||||||||||
DEDUCTIBLE
|
||||||||||
INSURING CLAUSE
|
LIMIT OF LIABILITY
|
AMOUNT
|
||||||||
1
|
.
|
Employee
|
$
|
20,000,000
|
$
|
0
|
||||
2
|
.
|
On Premises
|
$
|
20,000,000
|
$
|
50,000
|
||||
3
|
.
|
In Transit
|
$
|
20,000,000
|
$
|
50,000
|
||||
4
|
.
|
Forgery or Alteration
|
$
|
20,000,000
|
$
|
50,000
|
||||
5
|
.
|
Extended Forgery
|
$
|
20,000,000
|
$
|
50,000
|
||||
6
|
.
|
Counterfeit Money
|
$
|
20,000,000
|
$
|
50,000
|
||||
7
|
.
|
Threats to Person
|
$
|
not covered
|
$
|
n/a
|
||||
8
|
.
|
Computer System
|
$
|
20,000,000
|
$
|
50,000
|
||||
9
|
.
|
Voice Initiated Funds Transfer Instruction
|
$
|
20,000,000
|
$
|
50,000
|
||||
10
|
.
|
Uncollectible Items of Deposit
|
$
|
50,000
|
$
|
10,000
|
||||
11
|
.
|
Audit Expense
|
$
|
100,000
|
$
|
0
|
||||
ITEM 3.
|
THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
|
|||||||||
ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
|
||||||||||
1-16
|
||||||||||
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be
|
||||||||||
valid unless also signed by an authorized representative of the Company.
|
ICAP Bond (5-98) - Federal
|
|
Form 17-02-1421 (Ed. 5-98) Page 1 of 1
|
|
The COMPANY, in consideration of payment of the required premium, and in reliance
|
||||||
on the APPLICATION and all other statements made and information furnished to the
|
||||||
COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this
|
||||||
Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED
|
||||||
for:
|
||||||
Insuring Clauses
|
||||||
Employee
|
1
|
.
|
Loss resulting directly from Larceny or Embezzlement committed by any Employee, alone or in collusion with others.
|
|||
|
||||||
On Premises
|
2
|
.
|
Loss of Property resulting directly from robbery, burglary, false pretenses,
|
|||
common law or statutory larceny, misplacement, mysterious unexplainable
|
||||||
disappearance, damage, destruction or removal, from the possession, custody or
|
||||||
control of the ASSURED, while such Property is lodged or deposited at premises
|
||||||
located anywhere.
|
||||||
In Transit
|
3
|
.
|
Loss of Property resulting directly from common law or statutory larceny,
|
|||
misplacement, mysterious unexplainable disappearance, damage or destruction,
|
||||||
while the Property is in transit anywhere:
|
||||||
a.
|
in an armored motor vehicle, including loading and unloading thereof,
|
|||||
b.
|
in the custody of a natural person acting as a messenger of the ASSURED,
|
|||||
or
|
||||||
c.
|
in the custody of a Transportation Company and being transported in a
|
|||||
conveyance other than an armored motor vehicle provided, however, that
|
||||||
covered Property transported in such manner is limited to the following:
|
||||||
(1)
|
|
written records,
|
||||
(2)
|
|
securities issued in registered form, which are not endorsed or are restrictively endorsed, or
|
||||
(3)
|
|
negotiable instruments not payable to bearer, which are not endorsed
|
||||
or are restrictively endorsed.
|
||||||
Coverage under this INSURING CLAUSE begins immediately on the receipt of
|
||||||
such Property by the natural person or Transportation Company and ends
|
||||||
immediately on delivery to the premises of the addressee or to any representative
|
||||||
of the addressee located anywhere.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 1 of 19
|
|
Insuring Clauses
|
|||||
(continued)
|
|||||
Forgery Or Alteration
|
4
|
.
|
Loss resulting directly from:
|
||
a.
|
Forgery on, or fraudulent material alteration of, any bills of exchange,
|
||||
checks, drafts, acceptances, certificates of deposits, promissory notes, due
|
|||||
bills, money orders, orders upon public treasuries, letters of credit, other
|
|||||
written promises, orders or directions to pay sums certain in money, or
|
|||||
receipts for the withdrawal of Property, or
|
|||||
b.
|
transferring, paying or delivering any funds or other Property, or establishing
|
||||
any credit or giving any value in reliance on any written instructions, advices
|
|||||
or applications directed to the ASSURED authorizing or acknowledging the
|
|||||
transfer, payment, delivery or receipt of funds or other Property, which
|
|||||
instructions, advices or applications fraudulently purport to bear the
|
|||||
handwritten signature of any customer of the ASSURED, or shareholder or
|
|||||
subscriber to shares of an Investment Company, or of any financial
|
|||||
institution or Employee but which instructions, advices or applications either
|
|||||
bear a Forgery or have been fraudulently materially altered without the
|
|||||
knowledge and consent of such customer, shareholder, subscriber, financial
|
|||||
institution or Employee;
|
|||||
excluding, however, under this INSURING CLAUSE any loss covered under
|
|||||
INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING
|
|||||
CLAUSE 5. is provided for in the DECLARATIONS of this Bond.
|
|||||
For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile
|
|||||
signature is treated the same as a handwritten signature.
|
|||||
Extended Forgery
|
5
|
.
|
Loss resulting directly from the ASSURED having, in good faith, and in the
|
||
ordinary course of business, for its own account or the account of others in any
|
|||||
capacity:
|
|||||
a.
|
acquired, accepted or received, accepted or received, sold or delivered, or
|
||||
given value, extended credit or assumed liability, in reliance on any original
|
|||||
Securities, documents or other written instruments which prove to:
|
|||||
(1)
|
bear a Forgery or a fraudulently material alteration,
|
||||
(2)
|
have been lost or stolen, or
|
||||
(3)
|
be Counterfeit, or
|
||||
b.
|
guaranteed in writing or witnessed any signatures on any transfer,
|
||||
assignment, bill of sale, power of attorney, guarantee, endorsement or other
|
|||||
obligation upon or in connection with any Securities, documents or other
|
|||||
written instruments.
|
|||||
Actual physical possession, and continued actual physical possession if taken as
|
|||||
collateral, of such Securities, documents or other written instruments by an
|
|||||
Employee, Custodian, or a Federal or State chartered deposit institution of the
|
|||||
ASSURED is a condition precedent to the ASSURED having relied on such items.
|
|||||
Release or return of such collateral is an acknowledgment by the ASSURED that it
|
|||||
no longer relies on such collateral.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 2 of 19
|
|
Insuring Clauses
|
||||||
Extended Forgery
|
For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile
|
|||||
(continued)
|
signature is treated the same as a handwritten signature.
|
|||||
Counterfeit Money
|
6
|
.
|
Loss resulting directly from the receipt by the ASSURED in good faith of any
|
|||
Counterfeit money.
|
||||||
Threats To Person
|
7
|
.
|
Loss resulting directly from surrender of Property away from an office of the
|
|||
ASSURED as a result of a threat communicated to the ASSURED to do bodily
|
||||||
harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or
|
||||||
invitee of such Employee, or a resident of the household of such Employee, who
|
||||||
is, or allegedly is, being held captive provided, however, that prior to the surrender
|
||||||
of such Property:
|
||||||
a.
|
the Employee who receives the threat has made a reasonable effort to
|
|||||
notify an officer of the ASSURED who is not involved in such threat, and
|
||||||
b.
|
the ASSURED has made a reasonable effort to notify the Federal Bureau of
|
|||||
Investigation and local law enforcement authorities concerning such threat.
|
||||||
It is agreed that for purposes of this INSURING CLAUSE, any Employee of the
|
||||||
ASSURED, as set forth in the preceding paragraph, shall be deemed to be an
|
||||||
ASSURED hereunder, but only with respect to the surrender of money, securities
|
||||||
and other tangible personal property in which such Employee has a legal or
|
||||||
equitable interest.
|
||||||
Computer System
|
8
|
.
|
Loss resulting directly from fraudulent:
|
|||
a.
|
entries of data into, or
|
|||||
b.
|
changes of data elements or programs within,
|
|||||
a Computer System, provided the fraudulent entry or change causes:
|
||||||
(1)
|
|
funds or other property to be transferred, paid or delivered,
|
||||
(2)
|
|
an account of the ASSURED or of its customer to be added, deleted, debited or credited, or
|
||||
|
||||||
(3)
|
|
an unauthorized account or a fictitious account to be debited or
|
||||
credited.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 3 of 19
|
|
Insuring Clauses
|
||||
(continued)
|
||||
Voice Initiated Funds
|
9
|
.
|
Loss resulting directly from Voice Initiated Funds Transfer Instruction directed
|
|
Transfer Instruction
|
to the ASSURED authorizing the transfer of dividends or redemption proceeds of
|
|||
Investment Company shares from a Customer's account, provided such Voice
|
||||
Initiated Funds Transfer Instruction was:
|
||||
a.
|
received at the ASSURED'S offices by those Employees of the ASSURED
|
|||
specifically authorized to receive the Voice Initiated Funds Transfer
|
||||
Instruction,
|
||||
b.
|
made by a person purporting to be a Customer, and
|
|||
c.
|
made by said person for the purpose of causing the ASSURED or Customer
|
|||
to sustain a loss or making an improper personal financial gain for such
|
||||
person or any other person.
|
||||
In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated
|
||||
Funds Transfer Instructions must be received and processed in accordance with
|
||||
the Designated Procedures outlined in the APPLICATION furnished to the
|
||||
COMPANY.
|
||||
Uncollectible Items of
|
10
|
.
|
Loss resulting directly from the ASSURED having credited an account of a
|
|
Deposit
|
customer, shareholder or subscriber on the faith of any Items of Deposit which
|
|||
prove to be uncollectible, provided that the crediting of such account causes:
|
||||
a.
|
redemptions or withdrawals to be permitted,
|
|||
b.
|
shares to be issued, or
|
|||
c.
|
dividends to be paid, from an account of an Investment Company.
|
|||
|
||||
In order for coverage to apply under this INSURING CLAUSE, the ASSURED
|
||||
must hold Items of Deposit for the minimum number of days stated in the
|
||||
APPLICATION before permitting any redemptions or withdrawals, issuing any
|
||||
shares or paying any dividends with respect to such Items of Deposit.
|
||||
Items of Deposit shall not be deemed uncollectible until the ASSURED'S
|
||||
standard collection procedures have failed.
|
||||
Audit Expense
|
11
|
.
|
Expense incurred by the ASSURED for that part of the cost of audits or
|
|
examinations required by any governmental regulatory authority or self-regulatory
|
||||
organization to be conducted by such authority, organization or their appointee by
|
||||
reason of the discovery of loss sustained by the ASSURED and covered by this
|
||||
Bond.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 4 of 19
|
|
General Agreements
|
||||
Additional Companies
|
A.
|
If more than one corporation, or Investment Company, or any combination of
|
||
Included As Assured
|
them is included as the ASSURED herein:
|
|||
(1
|
)
|
The total liability of the COMPANY under this Bond for loss or losses
|
||
sustained by any one or more or all of them shall not exceed the limit for
|
||||
which the COMPANY would be liable under this Bond if all such loss were
|
||||
sustained by any one of them.
|
||||
(2
|
)
|
Only the first named ASSURED shall be deemed to be the sole agent of the
|
||
others for all purposes under this Bond, including but not limited to the giving
|
||||
or receiving of any notice or proof required to be given and for the purpose of
|
||||
effecting or accepting any amendments to or termination of this Bond. The
|
||||
COMPANY shall furnish each Investment Company with a copy of the
|
||||
Bond and with any amendment thereto, together with a copy of each formal
|
||||
filing of claim by any other named ASSURED and notification of the terms of
|
||||
the settlement of each such claim prior to the execution of such settlement.
|
||||
(3
|
)
|
The COMPANY shall not be responsible for the proper application of any
|
||
payment made hereunder to the first named ASSURED.
|
||||
(4
|
)
|
Knowledge possessed or discovery made by any partner, director, trustee,
|
||
officer or supervisory employee of any ASSURED shall constitute knowledge
|
||||
or discovery by all the ASSUREDS for the purposes of this Bond.
|
||||
(5
|
)
|
If the first named ASSURED ceases for any reason to be covered under this
|
||
Bond, then the ASSURED next named on the APPLICATION shall thereafter
|
||||
be considered as the first named ASSURED for the purposes of this Bond.
|
||||
Representation Made By
|
B.
|
The ASSURED represents that all information it has furnished in the
|
||
Assured
|
APPLICATION for this Bond or otherwise is complete, true and correct. Such
|
|||
APPLICATION and other information constitute part of this Bond.
|
||||
The ASSURED must promptly notify the COMPANY of any change in any fact or
|
||||
circumstance which materially affects the risk assumed by the COMPANY under
|
||||
this Bond.
|
||||
Any intentional misrepresentation, omission, concealment or incorrect statement of
|
||||
a material fact, in the APPLICATION or otherwise, shall be grounds for recision of
|
||||
this Bond.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 5 of 19
|
|
General Agreements
|
||||
(continued)
|
||||
Additional Offices Or
|
C.
|
If the ASSURED, other than an Investment Company, while this Bond is in force,
|
||
Employees - Consolidation,
|
merges or consolidates with, or purchases or acquires assets or liabilities of
|
|||
Merger Or Purchase Or
|
another institution, the ASSURED shall not have the coverage afforded under this
|
|||
Acquisition Of Assets Or
|
Bond for loss which has:
|
|||
Liabilities - Notice To
|
(1
|
)
|
occurred or will occur on premises, or
|
|
Company
|
||||
(2
|
)
|
been caused or will be caused by an employee, or
|
||
(3
|
)
|
arisen or will arise out of the assets or liabilities, of such institution, unless the ASSURED:
|
||
|
||||
a.
|
gives the COMPANY written notice of the proposed consolidation, merger or
|
|||
purchase or acquisition of assets or liabilities prior to the proposed effective
|
||||
date of such action, and
|
||||
b.
|
obtains the written consent of the COMPANY to extend some or all of the
|
|||
coverage provided by this Bond to such additional exposure, and
|
||||
c.
|
on obtaining such consent, pays to the COMPANY an additional premium.
|
|||
Change Of Control -
|
D.
|
When the ASSURED learns of a change in control (other than in an Investment
|
||
Notice To Company
|
Company), as set forth in Section 2(a) (9) of the Investment Company Act of
|
|||
1940, the ASSURED shall within sixty (60) days give written notice to the COMPANY setting forth: | ||||
|
||||
(1
|
)
|
the names of the transferors and transferees (or the names of the beneficial
|
||
owners if the voting securities are registered in another name),
|
||||
(2
|
)
|
the total number of voting securities owned by the transferors and the
|
||
transferees (or the beneficial owners), both immediately before and after the
|
||||
transfer, and
|
||||
(3
|
)
|
the total number of outstanding voting securities.
|
||
Failure to give the required notice shall result in termination of coverage for any
|
||||
loss involving a transferee, to be effective on the date of such change in control.
|
||||
Court Costs And
|
E.
|
The COMPANY will indemnify the ASSURED for court costs and reasonable
|
||
Attorneys’ Fees
|
attorneys' fees incurred and paid by the ASSURED in defense, whether or not
|
|||
successful, whether or not fully litigated on the merits and whether or not settled,
|
||||
of any claim, suit or legal proceeding with respect to which the ASSURED would
|
||||
be entitled to recovery under this Bond. However, with respect to INSURING
|
||||
CLAUSE 1., this Section shall only apply in the event that:
|
||||
(1
|
)
|
an Employee admits to being guilty of Larceny or Embezzlement,
|
||
(2
|
)
|
an Employee is adjudicated to be guilty of Larceny or Embezzlement, or
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 6 of 19
|
|
General Agreements
|
||
Court Costs And
|
(3)
|
in the absence of 1 or 2 above, an arbitration panel agrees, after a review of
|
Attorneys’ Fees
|
an agreed statement of facts between the COMPANY and the ASSURED,
|
|
(continued)
|
that an Employee would be found guilty of Larceny or Embezzlement if such Employee were prosecuted.
|
|
|
||
The ASSURED shall promptly give notice to the COMPANY of any such suit or
|
||
legal proceeding and at the request of the COMPANY shall furnish copies of all
|
||
pleadings and pertinent papers to the COMPANY. The COMPANY may, at its
|
||
sole option, elect to conduct the defense of all or part of such legal proceeding.
|
||
The defense by the COMPANY shall be in the name of the ASSURED through
|
||
attorneys selected by the COMPANY. The ASSURED shall provide all reasonable
|
||
information and assistance as required by the COMPANY for such defense.
|
||
If the COMPANY declines to defend the ASSURED, no settlement without the
|
||
prior written consent of the COMPANY nor judgment against the ASSURED shall
|
||
determine the existence, extent or amount of coverage under this Bond.
|
||
If the amount demanded in any such suit or legal proceeding is within the
|
||
DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court
|
||
costs and attorney's fees incurred in defending all or part of such suit or legal
|
||
proceeding.
|
||
If the amount demanded in any such suit or legal proceeding is in excess of the
|
||
LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable
|
||
INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees
|
||
incurred in defending all or part of such suit or legal proceedings is limited to the
|
||
proportion of such court costs and attorney's fees incurred that the LIMIT OF
|
||
LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING
|
||
CLAUSE bears to the total of the amount demanded in such suit or legal
|
||
proceeding.
|
||
If the amount demanded is any such suit or legal proceeding is in excess of the
|
||
DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM
|
||
2. of the DECLARATIONS for the applicable INSURING CLAUSE, the | ||
COMPANY'S liability for court costs and attorney's fees incurred in defending all or
|
||
part of such suit or legal proceedings shall be limited to the proportion of such
|
||
court costs or attorney's fees that the amount demanded that would be payable
|
||
under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total
|
||
amount demanded.
|
||
Amounts paid by the COMPANY for court costs and attorneys' fees shall be in
|
||
addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 7 of 19
|
|
Conditions And
|
||||||
Limitations
|
||||||
Definitions
|
1
|
.
|
As used in this Bond:
|
|||
a.
|
Computer System means a computer and all input, output, processing,
|
|||||
storage, off-line media libraries, and communication facilities which are
|
||||||
connected to the computer and which are under the control and supervision
|
||||||
of the operating system(s) or application(s) software used by the ASSURED.
|
||||||
b.
|
Counterfeit means an imitation of an actual valid original which is intended
|
|||||
to deceive and be taken as the original.
|
||||||
c.
|
Custodian means the institution designated by an Investment Company to
|
|||||
maintain possession and control of its assets.
|
||||||
d.
|
Customer means an individual, corporate, partnership, trust customer,
|
|||||
shareholder or subscriber of an Investment Company which has a written
|
||||||
agreement with the ASSURED for Voice Initiated Funds Transfer
|
||||||
Instruction.
|
||||||
e.
|
Employee means:
|
|||||
(1)
|
|
an officer of the ASSURED,
|
||||
(2)
|
|
a natural person while in the regular service of the ASSURED at any of
|
||||
the ASSURED'S premises and compensated directly by the ASSURED
|
||||||
through its payroll system and subject to the United States Internal
|
||||||
Revenue Service Form W-2 or equivalent income reporting plans of
|
||||||
other countries, and whom the ASSURED has the right to control and
|
||||||
direct both as to the result to be accomplished and details and means
|
||||||
by which such result is accomplished in the performance of such
|
||||||
service,
|
||||||
(3)
|
|
a guest student pursuing studies or performing duties in any of the
|
||||
ASSURED'S premises,
|
||||||
(4)
|
|
an attorney retained by the ASSURED and an employee of such
|
||||
attorney while either is performing legal services for the ASSURED,
|
||||||
(5)
|
|
a natural person provided by an employment contractor to perform
|
||||
employee duties for the ASSURED under the ASSURED'S supervision
|
||||||
at any of the ASSURED'S premises,
|
||||||
(6)
|
|
an employee of an institution merged or consolidated with the
|
||||
ASSURED prior to the effective date of this Bond,
|
||||||
(7)
|
|
a director or trustee of the ASSURED, but only while performing acts
|
||||
within the scope of the customary and usual duties of any officer or
|
||||||
other employee of the ASSURED or while acting as a member of any
|
||||||
committee duly elected or appointed to examine or audit or have
|
||||||
custody of or access to Property of the ASSURED, or
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 8 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Definitions
|
(8
|
)
|
each natural person, partnership or corporation authorized by written
|
|
(continued)
|
agreement with the ASSURED to perform services as electronic data
|
|||
processor of checks or other accounting records related to such checks but
|
||||
only while such person, partnership or corporation is actually performing
|
||||
such services and not:
|
||||
a.
|
creating, preparing, modifying or maintaining the ASSURED'S
|
|||
computer software or programs, or
|
||||
b.
|
acting as transfer agent or in any other agency capacity in issuing
|
|||
checks, drafts or securities for the ASSURED,
|
||||
(9
|
)
|
any partner, officer or employee of an investment advisor, an underwriter
|
||
(distributor), a transfer agent or shareholder accounting recordkeeper, or an
|
||||
administrator, for an Investment Company while performing acts coming
|
||||
within the scope of the customary and usual duties of an officer or employee
|
||||
of an Investment Company or acting as a member of any committee duly
|
||||
elected or appointed to examine, audit or have custody of or access to
|
||||
Property of an Investment Company.
|
||||
The term Employee shall not include any partner, officer or employee of a
|
||||
transfer agent, shareholder accounting recordkeeper or administrator:
|
||||
a.
|
which is not an "affiliated person" (as defined in Section 2(a) of the
|
|||
Investment Company Act of 1940) of an Investment Company or of
|
||||
the investment advisor or underwriter (distributor) of such Investment
|
||||
Company, or
|
||||
b.
|
which is a "bank" (as defined in Section 2(a) of the Investment Company Act of 1940).
|
|||
|
||||
This Bond does not afford coverage in favor of the employers of
|
||||
persons as set forth in e. (4), (5) and (8) above, and upon payment to
|
||||
the ASSURED by the COMPANY resulting directly from Larceny or
|
||||
Embezzlement committed by any of the partners, officers or
|
||||
employees of such employers, whether acting alone or in collusion with
|
||||
others, an assignment of such of the ASSURED'S rights and causes of
|
||||
action as it may have against such employers by reason of such acts
|
||||
so committed shall, to the extent of such payment, be given by the
|
||||
ASSURED to the COMPANY, and the ASSURED shall execute all
|
||||
papers necessary to secure to the COMPANY the rights provided for
|
||||
herein.
|
||||
Each employer of persons as set forth in e.(4), (5) and (8) above and the
|
||||
partners, officers and other employees of such employers shall collectively
|
||||
be deemed to be one person for all the purposes of this Bond; excepting,
|
||||
however, the fifth paragraph of Section 13.
|
||||
Independent contractors not specified in e.(4), (5) or (8) above,
|
||||
intermediaries, agents, brokers or other representatives of the same general
|
||||
character shall not be considered Employees.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 9 of 19
|
|
Conditions And
|
||
Limitations
|
||
Definitions
|
f.
|
Forgery means the signing of the name of another natural person with the
|
(continued)
|
intent to deceive but does not mean a signature which consists in whole or in
|
|
part of one's own name, with or without authority, in any capacity for any
|
||
purpose.
|
||
g.
|
Investment Company means any investment company registered under the
|
|
Investment Company Act of 1940 and listed under the NAME OF ASSURED
|
||
on the DECLARATIONS.
|
||
h.
|
Items of Deposit means one or more checks or drafts drawn upon a
|
|
financial institution in the United States of America.
|
||
i.
|
Larceny or Embezzlement means larceny or embezzlement as defined in
|
|
Section 37 of the Investment Company Act of 1940.
|
||
j.
|
Property means money, revenue and other stamps; securities; including any
|
|
note, stock, treasury stock, bond, debenture, evidence of indebtedness,
|
||
certificate of deposit, certificate of interest or participation in any profit-
|
||
sharing agreement, collateral trust certificate, preorganization certificate or
|
||
subscription, transferable share, investment contract, voting trust certificate,
|
||
certificate of deposit for a security, fractional undivided interest in oil, gas, or
|
||
other mineral rights, any interest or instruments commonly known as a
|
||
security under the Investment Company Act of 1940, any other certificate of
|
||
interest or participation in, temporary or interim certificate for, receipt for,
|
||
guarantee of, or warrant or right to subscribe to or purchase any of the
|
||
foregoing; bills of exchange; acceptances; checks; withdrawal orders; money
|
||
orders; travelers' letters of credit; bills of lading; abstracts of title; insurance
|
||
policies, deeds, mortgages on real estate and/or upon chattels and interests
|
||
therein; assignments of such policies, deeds or mortgages; other valuable
|
||
papers, including books of accounts and other records used by the
|
||
ASSURED in the conduct of its business (but excluding all electronic data
|
||
processing records); and, all other instruments similar to or in the nature of
|
||
the foregoing in which the ASSURED acquired an interest at the time of the
|
||
ASSURED'S consolidation or merger with, or purchase of the principal
|
||
assets of, a predecessor or which are held by the ASSURED for any
|
||
purpose or in any capacity and whether so held gratuitously or not and
|
||
whether or not the ASSURED is liable therefor.
|
||
k.
|
Relative means the spouse of an Employee or partner of the ASSURED
|
|
and any unmarried child supported wholly by, or living in the home of, such
|
||
Employee or partner and being related to them by blood, marriage or legal
|
||
guardianship.
|
||
l.
|
Securities, documents or other written instruments means original
|
|
(including original counterparts) negotiable or non-negotiable instruments, or
|
||
assignments thereof, which in and of themselves represent an equitable
|
||
interest, ownership, or debt and which are in the ordinary course of business
|
||
transferable by delivery of such instruments with any necessary
|
||
endorsements or assignments.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 10 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Definitions
|
m.
|
Subsidiary means any organization that, at the inception date of this Bond,
|
||
(continued)
|
is named in the APPLICATION or is created during the BOND PERIOD and
|
|||
of which more than fifty percent (50%) of the outstanding securities or voting
|
||||
rights representing the present right to vote for election of directors is owned
|
||||
or controlled by the ASSURED either directly or through one or more of its
|
||||
subsidiaries.
|
||||
n.
|
Transportation Company means any organization which provides its own
|
|||
or its leased vehicles for transportation or which provides freight forwarding
|
||||
or air express services.
|
||||
o.
|
Voice Initiated Election means any election concerning dividend options
|
|||
available to Investment Company shareholders or subscribers which is
|
||||
requested by voice over the telephone.
|
||||
p.
|
Voice Initiated Redemption means any redemption of shares issued by an
|
|||
Investment Company which is requested by voice over the telephone.
|
||||
q.
|
Voice Initiated Funds Transfer Instruction means any Voice Initiated
|
|||
Redemption or Voice Initiated Election.
|
||||
For the purposes of these definitions, the singular includes the plural and the
|
||||
plural includes the singular, unless otherwise indicated.
|
||||
General Exclusions -
|
2
|
.
|
This bond does not directly or indirectly cover:
|
|
Applicable to All Insuring
|
a.
|
loss not reported to the COMPANY in writing within sixty (60) days after
|
||
Clauses
|
termination of this Bond as an entirety;
|
|||
b.
|
loss due to riot or civil commotion outside the United States of America and
|
|||
Canada, or any loss due to military, naval or usurped power, war or
|
||||
insurrection. This Section 2.b., however, shall not apply to loss which occurs
|
||||
in transit in the circumstances recited in INSURING CLAUSE 3., provided
|
||||
that when such transit was initiated there was no knowledge on the part of
|
||||
any person acting for the ASSURED of such riot, civil commotion, military,
|
||||
naval or usurped power, war or insurrection;
|
||||
c.
|
loss resulting from the effects of nuclear fission or fusion or radioactivity;
|
|||
d.
|
loss of potential income including, but not limited to, interest and dividends
|
|||
not realized by the ASSURED or by any customer of the ASSURED;
|
||||
e.
|
damages of any type for which the ASSURED is legally liable, except
|
|||
compensatory damages, but not multiples thereof, arising from a loss
|
||||
covered under this Bond;
|
||||
f.
|
costs, fees and expenses incurred by the ASSURED in establishing the
|
|||
existence of or amount of loss under this Bond, except to the extent covered
|
||||
under INSURING CLAUSE 11.;
|
||||
g.
|
loss resulting from indirect or consequential loss of any nature;
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 11 of 19
|
|
Conditions And
|
|||||||
Limitations
|
|||||||
General Exclusions -
|
h.
|
loss resulting from dishonest acts by any member of the Board of Directors
|
|||||
Applicable to All Insuring
|
or Board of Trustees of the ASSURED who is not an Employee, acting
|
||||||
Clauses
|
alone or in collusion with others;
|
||||||
(continued)
|
i.
|
loss, or that part of any loss, resulting solely from any violation by the
ASSURED or by any Employee:
|
|||||
|
|||||||
(1
|
)
|
of any law regulating:
|
|||||
a.
|
the issuance, purchase or sale of securities,
|
||||||
b.
|
securities transactions on security or commodity exchanges or
|
||||||
the over the counter market,
|
|||||||
c.
|
investment companies,
|
||||||
d.
|
investment advisors, or
|
||||||
(2
|
)
|
of any rule or regulation made pursuant to any such law; or
|
|||||
j.
|
loss of confidential information, material or data;
|
||||||
k.
|
loss resulting from voice requests or instructions received over the
|
||||||
telephone, provided however, this Section 2.k. shall not apply to INSURING
|
|||||||
CLAUSE 7. or 9.
|
|||||||
Specific Exclusions -
|
3
|
.
|
This Bond does not directly or indirectly cover:
|
||||
Applicable To All Insuring
|
a.
|
loss caused by an Employee, provided, however, this Section 3.a. shall not
|
|||||
Clauses Except Insuring
|
apply to loss covered under INSURING CLAUSE 2. or 3. which results
|
||||||
Clause 1.
|
directly from misplacement, mysterious unexplainable disappearance, or
|
||||||
damage or destruction of Property;
|
|||||||
b.
|
loss through the surrender of property away from premises of the ASSURED
|
||||||
as a result of a threat:
|
|||||||
(1
|
)
|
to do bodily harm to any natural person, except loss of Property in
|
|||||
transit in the custody of any person acting as messenger of the
|
|||||||
ASSURED, provided that when such transit was initiated there was no
|
|||||||
knowledge by the ASSURED of any such threat, and provided further
|
|||||||
that this Section 3.b. shall not apply to INSURING CLAUSE 7., or
|
|||||||
(2
|
)
|
to do damage to the premises or Property of the ASSURED;
|
|||||
c.
|
loss resulting from payments made or withdrawals from any account
|
||||||
involving erroneous credits to such account;
|
|||||||
d.
|
loss involving Items of Deposit which are not finally paid for any reason
|
||||||
provided however, that this Section 3.d. shall not apply to INSURING
|
|||||||
CLAUSE 10.;
|
|||||||
e.
|
loss of property while in the mail;
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 12 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Specific Exclusions -
|
f.
|
loss resulting from the failure for any reason of a financial or depository
|
||
Applicable To All Insuring
|
institution, its receiver or other liquidator to pay or deliver funds or other
|
|||
Clauses Except Insuring
|
Property to the ASSURED provided further that this Section 3.f. shall not
|
|||
Clause 1.
|
apply to loss of Property resulting directly from robbery, burglary,
|
|||
(continued)
|
misplacement, mysterious unexplainable disappearance, damage,
|
|||
destruction or removal from the possession, custody or control of the
|
||||
ASSURED.
|
||||
g.
|
loss of Property while in the custody of a Transportation Company,
|
|||
provided however, that this Section 3.g. shall not apply to INSURING
|
||||
CLAUSE 3.;
|
||||
h.
|
loss resulting from entries or changes made by a natural person with
|
|||
authorized access to a Computer System who acts in good faith on
|
||||
instructions, unless such instructions are given to that person by a software
|
||||
contractor or its partner, officer, or employee authorized by the ASSURED to
|
||||
design, develop, prepare, supply, service, write or implement programs for
|
||||
the ASSURED's Computer System; or
|
||||
i.
|
loss resulting directly or indirectly from the input of data into a Computer
|
|||
System terminal, either on the premises of the customer of the ASSURED
|
||||
or under the control of such a customer, by a customer or other person who
|
||||
had authorized access to the customer's authentication mechanism.
|
||||
Specific Exclusions -
|
4
|
.
|
This bond does not directly or indirectly cover:
|
|
Applicable To All Insuring
|
a.
|
loss resulting from the complete or partial non-payment of or default on any
|
||
Clauses Except Insuring
|
loan whether such loan was procured in good faith or through trick, artifice,
|
|||
Clauses 1., 4., And 5.
|
fraud or false pretenses; provided, however, this Section 4.a. shall not apply
|
|||
to INSURING CLAUSE 8.;
|
||||
b.
|
loss resulting from forgery or any alteration;
|
|||
c.
|
loss involving a counterfeit provided, however, this Section 4.c. shall not
|
|||
apply to INSURING CLAUSE 5. or 6.
|
||||
Limit Of Liability/Non-
|
5
|
.
|
At all times prior to termination of this Bond, this Bond shall continue in force for
|
|
Reduction And Non-
|
the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS,
|
|||
Accumulation Of Liability
|
notwithstanding any previous loss for which the COMPANY may have paid or be
|
|||
liable to pay under this Bond provided, however, that the liability of the COMPANY
|
||||
under this Bond with respect to all loss resulting from:
|
||||
a.
|
any one act of burglary, robbery or hold-up, or attempt thereat, in which no
|
|||
Employee is concerned or implicated, or
|
||||
b.
|
any one unintentional or negligent act on the part of any one person
|
|||
resulting in damage to or destruction or misplacement of Property, or
|
||||
c.
|
all acts, other than those specified in a. above, of any one person, or
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 13 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Limit Of Liability/Non-
|
d. any one casualty or event other than those specified in a., b., or c. above, | |||
Reduction And Non-
|
shall be deemed to be one loss and shall be limited to the applicable LIMIT OF
|
|||
Accumulation Of Liability
|
LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of
|
|||
(continued)
|
the total amount of such loss or losses and shall not be cumulative in amounts
|
|||
from year to year or from period to period.
|
||||
All acts, as specified in c. above, of any one person which
|
||||
i.
|
directly or indirectly aid in any way wrongful acts of any other person or
|
|||
persons, or
|
||||
ii.
|
permit the continuation of wrongful acts of any other person or persons
|
|||
whether such acts are committed with or without the knowledge of the wrongful
|
||||
acts of the person so aided, and whether such acts are committed with or without
|
||||
the intent to aid such other person, shall be deemed to be one loss with the
|
||||
wrongful acts of all persons so aided.
|
||||
Discovery
|
6
|
.
|
This Bond applies only to loss first discovered by an officer of the ASSURED
|
|
during the BOND PERIOD. Discovery occurs at the earlier of an officer of the
|
||||
ASSURED being aware of:
|
||||
a.
|
facts which may subsequently result in a loss of a type covered by this Bond,
|
|||
or
|
||||
b.
|
an actual or potential claim in which it is alleged that the ASSURED is liable
|
|||
to a third party,
|
||||
regardless of when the act or acts causing or contributing to such loss occurred,
|
||||
even though the amount of loss does not exceed the applicable DEDUCTIBLE
|
||||
AMOUNT, or the exact amount or details of loss may not then be known.
|
||||
Notice To Company -
|
7
|
.
|
a.
|
The ASSURED shall give the COMPANY notice thereof at the earliest
|
Proof - Legal Proceedings
|
practicable moment, not to exceed sixty (60) days after discovery of loss, in
|
|||
Against Company
|
an amount that is in excess of 50% of the applicable DEDUCTIBLE
|
|||
AMOUNT, as stated in ITEM 2. of the DECLARATIONS.
|
||||
b.
|
The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to,
|
|||
with full particulars within six (6) months after such discovery.
|
||||
c.
|
Securities listed in a proof of loss shall be identified by certificate or bond
|
|||
numbers, if issued with them.
|
||||
d.
|
Legal proceedings for the recovery of any loss under this Bond shall not be
|
|||
brought prior to the expiration of sixty (60) days after the proof of loss is filed
|
||||
with the COMPANY or after the expiration of twenty-four (24) months from
|
||||
the discovery of such loss.
|
||||
e.
|
This Bond affords coverage only in favor of the ASSURED. No claim, suit,
|
|||
action or legal proceedings shall be brought under this Bond by anyone
|
||||
other than the ASSURED.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 14 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Notice To Company -
|
f.
|
Proof of loss involving Voice Initiated Funds Transfer Instruction shall
|
||
Proof - Legal Proceedings
|
include electronic recordings of such instructions.
|
|||
Against Company
|
||||
(continued)
|
||||
Deductible Amount
|
8
|
.
|
The COMPANY shall not be liable under any INSURING CLAUSES of this Bond
|
|
on account of loss unless the amount of such loss, after deducting the net amount
|
||||
of all reimbursement and/or recovery obtained or made by the ASSURED, other
|
||||
than from any Bond or policy of insurance issued by an insurance company and
|
||||
covering such loss, or by the COMPANY on account thereof prior to payment by
|
||||
the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in
|
||||
ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event
|
||||
for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the
|
||||
DECLARATIONS.
|
||||
There shall be no deductible applicable to any loss under INSURING CLAUSE 1.
|
||||
sustained by any Investment Company.
|
||||
Valuation
|
9
|
.
|
BOOKS OF ACCOUNT OR OTHER RECORDS
|
|
The value of any loss of Property consisting of books of account or other records
|
||||
used by the ASSURED in the conduct of its business shall be the amount paid by
|
||||
the ASSURED for blank books, blank pages, or other materials which replace the
|
||||
lost books of account or other records, plus the cost of labor paid by the
|
||||
ASSURED for the actual transcription or copying of data to reproduce such books
|
||||
of account or other records.
|
||||
The value of any loss of Property other than books of account or other records
|
||||
used by the ASSURED in the conduct of its business, for which a claim is made
|
||||
shall be determined by the average market value of such Property on the
|
||||
business day immediately preceding discovery of such loss provided, however,
|
||||
that the value of any Property replaced by the ASSURED with the consent of the
|
||||
COMPANY and prior to the settlement of any claim for such Property shall be the
actual market value at the time of replacement.
|
||||
|
||||
In the case of a loss of interim certificates, warrants, rights or other securities, the
|
||||
production of which is necessary to the exercise of subscription, conversion,
|
||||
redemption or deposit privileges, the value of them shall be the market value of
|
||||
such privileges immediately preceding their expiration if said loss is not discovered
|
||||
until after their expiration. If no market price is quoted for such Property or for
|
||||
such privileges, the value shall be fixed by agreement between the parties.
|
||||
OTHER PROPERTY
|
||||
The value of any loss of Property, other than as stated above, shall be the actual
|
||||
cash value or the cost of repairing or replacing such Property with Property of
|
||||
like quality and value, whichever is less.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 15 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
(continued)
|
||||
Securities Settlement
|
10
|
.
|
In the event of a loss of securities covered under this Bond, the COMPANY may,
|
|
at its sole discretion, purchase replacement securities, tender the value of the
|
||||
securities in money, or issue its indemnity to effect replacement securities.
|
||||
The indemnity required from the ASSURED under the terms of this Section
|
||||
against all loss, cost or expense arising from the replacement of securities by the
|
||||
COMPANY'S indemnity shall be:
|
||||
a.
|
for securities having a value less than or equal to the applicable
|
|||
DEDUCTIBLE AMOUNT - one hundred (100%) percent;
|
||||
b.
|
for securities having a value in excess of the DEDUCTIBLE AMOUNT but
|
|||
within the applicable LIMIT OF LIABILITY - the percentage that the
|
||||
DEDUCTIBLE AMOUNT bears to the value of the securities;
|
||||
c.
|
for securities having a value greater than the applicable LIMIT OF LIABILITY
|
|||
- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of
|
||||
the applicable LIMIT OF LIABILITY bears to the value of the securities.
|
||||
The value referred to in Section 10.a., b., and c. is the value in accordance with
|
||||
Section 9, VALUATION, regardless of the value of such securities at the time the
|
||||
loss under the COMPANY'S indemnity is sustained.
|
||||
The COMPANY is not required to issue its indemnity for any portion of a loss of
|
||||
securities which is not covered by this Bond; however, the COMPANY may do so
|
||||
as a courtesy to the ASSURED and at its sole discretion.
|
||||
The ASSURED shall pay the proportion of the Company's premium charge for the
|
||||
Company's indemnity as set forth in Section 10.a., b., and c. No portion of the
|
||||
LIMIT OF LIABILITY shall be used as payment of premium for any indemnity
|
||||
purchased by the ASSURED to obtain replacement securities.
|
||||
Subrogation - Assignment - 11.
|
In the event of a payment under this Bond, the COMPANY shall be subrogated to
|
|||
Recovery
|
all of the ASSURED'S rights of recovery against any person or entity to the extent
|
|||
of such payment. On request, the ASSURED shall deliver to the COMPANY an
|
||||
assignment of the ASSURED'S rights, title and interest and causes of action
|
||||
against any person or entity to the extent of such payment.
|
||||
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be
|
||||
applied net of the expense of such recovery in the following order:
|
||||
a.
|
first, to the satisfaction of the ASSURED'S loss which would otherwise have
|
|||
been paid but for the fact that it is in excess of the applicable LIMIT OF
|
||||
LIABILITY,
|
||||
b.
|
second, to the COMPANY in satisfaction of amounts paid in settlement of
|
|||
the ASSURED'S claim,
|
||||
c.
|
third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE
|
|||
AMOUNT, and
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 16 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Subrogation - Assignment -
|
d.
|
fourth, to the ASSURED in satisfaction of any loss suffered by the
|
||
Recovery
|
ASSURED which was not covered under this Bond.
|
|||
(continued)
|
Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a
|
|||
recovery under this section.
|
||||
Cooperation Of Assured
|
12
|
.
|
At the COMPANY'S request and at reasonable times and places designated by
|
|
the COMPANY, the ASSURED shall:
|
||||
a.
|
submit to examination by the COMPANY and subscribe to the same under
|
|||
oath,
|
||||
b.
|
produce for the COMPANY'S examination all pertinent records, and
|
|||
c.
|
cooperate with the COMPANY in all matters pertaining to the loss.
|
|||
The ASSURED shall execute all papers and render assistance to secure to the
|
||||
COMPANY the rights and causes of action provided for under this Bond. The
|
||||
ASSURED shall do nothing after loss to prejudice such rights or causes of action.
|
||||
Termination
|
13
|
.
|
If the Bond is for a sole ASSURED, it shall not be terminated unless written notice
|
|
shall have been given by the acting party to the affected party and to the
|
||||
Securities and Exchange Commission, Washington, D.C., not less than sixty (60)
|
||||
days prior to the effective date of such termination.
|
||||
If the Bond is for a joint ASSURED, it shall not be terminated unless written notice
|
||||
shall have been given by the acting party to the affected party, and by the
|
||||
COMPANY to all ASSURED Investment Companies and to the Securities and
|
||||
Exchange Commission, Washington, D.C., not less than sixty (60) days prior to
|
||||
the effective date of such termination.
|
||||
This Bond will terminate as to any one ASSURED, other than an Investment
|
||||
Company:
|
||||
a.
|
immediately on the taking over of such ASSURED by a receiver or other
|
|||
liquidator or by State or Federal officials, or
|
||||
b.
|
immediately on the filing of a petition under any State or Federal statute
|
|||
relative to bankruptcy or reorganization of the ASSURED, or assignment for
|
||||
the benefit of creditors of the ASSURED, or
|
||||
c.
|
immediately upon such ASSURED ceasing to exist, whether through merger
|
|||
into another entity, disposition of all of its assets or otherwise.
|
||||
The COMPANY shall refund the unearned premium computed at short rates in
|
||||
accordance with the standard short rate cancellation tables if terminated by the
|
||||
ASSURED or pro rata if terminated for any other reason.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 17 of 19
|
|
Conditions And
|
||||
Limitations
|
||||
Termination
|
If any partner, director, trustee, or officer or supervisory employee of an
|
|||
(continued)
|
ASSURED not acting in collusion with an Employee learns of any dishonest act
|
|||
committed by such Employee at any time, whether in the employment of the
|
||||
ASSURED or otherwise, whether or not such act is of the type covered under this
|
||||
Bond, and whether against the ASSURED or any other person or entity, the
|
||||
ASSURED:
|
||||
a.
|
shall immediately remove such Employee from a position that would enable
|
|||
such Employee to cause the ASSURED to suffer a loss covered by this
|
||||
Bond; and
|
||||
b.
|
within forty-eight (48) hours of learning that an Employee has committed
|
|||
any dishonest act, shall notify the COMPANY, of such action and provide full
|
||||
particulars of such dishonest act.
|
||||
The COMPANY may terminate coverage as respects any Employee sixty (60)
|
||||
days after written notice is received by each ASSURED Investment Company
|
||||
and the Securities and Exchange Commission, Washington, D.C. of its desire to
|
||||
terminate this Bond as to such Employee.
|
||||
Other Insurance
|
14
|
.
|
Coverage under this Bond shall apply only as excess over any valid and collectible
|
|
insurance, indemnity or suretyship obtained by or on behalf of:
|
||||
a.
|
the ASSURED,
|
|||
b.
|
a Transportation Company, or
|
|||
c.
|
another entity on whose premises the loss occurred or which employed the
|
|||
person causing the loss or engaged the messenger conveying the Property
|
||||
involved.
|
||||
Conformity
|
15
|
.
|
If any limitation within this Bond is prohibited by any law controlling this Bond's
|
|
construction, such limitation shall be deemed to be amended so as to equal the
|
||||
minimum period of limitation provided by such law.
|
||||
Change or Modification
|
16
|
.
|
This Bond or any instrument amending or affecting this Bond may not be changed
|
|
or modified orally. No change in or modification of this Bond shall be effective
|
||||
except when made by written endorsement to this Bond signed by an authorized
|
||||
representative of the COMPANY.
|
||||
If this Bond is for a sole ASSURED, no change or modification which would
|
||||
adversely affect the rights of the ASSURED shall be effective prior to sixty (60)
|
||||
days after written notice has been furnished to the Securities and Exchange
|
||||
Commission, Washington, D.C., by the acting party.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 18 of 19
|
|
Conditions And
|
|
Limitations
|
|
Change or Modification
|
If this Bond is for a joint ASSURED, no charge or modification which would
|
(continued)
|
adversely affect the rights of the ASSURED shall be effective prior to sixty (60)
|
days after written notice has been furnished to all insured Investment Companies
|
|
and to the Securities and Exchange Commission, Washington, D.C., by the
|
|
COMPANY.
|
ICAP Bond (5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 19 of 19
|
|
FEDERAL INSURANCE COMPANY
|
||
Endorsement No: 1 Bond | ||
Bond Number: 81951478 | ||
NAME OF ASSURED: DELAWARE INVESTMENT ADVISERS
|
||
NAME OF ASSURED ENDORSEMENT
|
||
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as follows:
|
||
Delaware Group Advisor Funds
|
||
Delaware Group Cash Reserve
|
||
Delaware Group Equity Funds I
|
||
Delaware Group Equity Funds II
|
||
Delaware Group Equity Funds III
|
||
Delaware Group Equity Funds IV
|
||
Delaware Group Equity Funds V
|
||
Delaware Group Foundation Funds
|
||
Delaware Group Limited-Term Government Funds
|
||
Delaware Group Global & International Funds
|
||
Delaware Group Government Funds
|
||
Delaware Group Income Funds
|
||
Delaware VIP Trust
|
||
Delaware Group State Tax-Free Income Trust
|
||
Delaware Group Tax-Free Fund
|
||
Delaware Group Tax-Free Money Fund
|
||
Delaware Pooled Trust
|
||
Voyageur Insured Funds
|
||
Voyageur Intermediate Tax Free Funds
|
||
Voyageur Mutual Funds
|
||
Voyageur Mutual Funds II
|
||
Voyageur Mutual Funds III
|
||
Voyageur Tax-Free Funds
|
||
Dividend & Income
|
||
Global Dividend & Income
|
||
Arizona Municipal Income
|
||
Colorado Municipal Income
|
||
National Municipal Income
|
||
Minnesota Municipal Income II
|
||
Enhanced Global Dividend and Income
|
||
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2010.
|
||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-0949 (Ed. 1-97) Page 2
|
|
FEDERAL INSURANCE COMPANY
|
||||||
Endorsement No.: 2 Bond
|
||||||
Bond Number: 81951478 | ||||||
NAME OF ASSURED:
|
DELAWARE INVESTMENT ADVISERS
|
|||||
TELEFACSIMILE INSTRUCTION FRAUD ENDORSEMENT
|
||||||
It is agreed that this Bond is amended as follows:
|
||||||
1
|
.
|
By adding the following INSURING CLAUSE:
|
||||
12
|
.
|
Telefacsimile Instruction
|
||||
Loss resulting directly from the ASSURED having transferred, paid or delivered any
|
||||||
funds or other Property or established any credit, debited any account or given any
|
||||||
value on the faith of any fraudulent instructions sent by a Customer, financial institution
|
||||||
or another office of the ASSURED by Telefacsimile directly to the ASSURED authorizing
|
||||||
or acknowledging the transfer, payment or delivery of funds or Property or the
|
||||||
establishment of a credit or the debiting of an account or the giving of value by the
|
||||||
ASSURED where such Telefacsimile instructions:
|
||||||
a.
|
bear a valid test key exchanged between the ASSURED and a Customer or
|
|||||
another financial institution with authority to use such test key for Telefacsimile
|
||||||
instructions in the ordinary course of business, but which test key has been
|
||||||
wrongfully obtained by a person who was not authorized to initiate, make,
|
||||||
validate or authenticate a test key arrangement, and
|
||||||
b.
|
fraudulently purport to have been sent by such Customer or financial institution
|
|||||
when such Telefacsimile instructions were transmitted without the knowledge
|
||||||
or consent of such Customer or financial institution by a person other than such
|
||||||
Customer or financial institution and which bear a Forgery of a signature,
|
||||||
provided that the Telefacsimile instruction was verified by a direct call back to
|
||||||
an employee of the financial institution, or a person thought by the ASSURED to
|
||||||
be the Customer, or an employee of another financial institution.
|
||||||
2
|
.
|
By deleting from Section 1., Definitions, the definition of Customer in its entirety, and substituting
|
||||
the following:
|
||||||
d.
|
Customer means an individual, corporate, partnership, trust customer, shareholder or
|
|||||
subscriber of an Investment Company which has a written agreement with the ASSURED
|
||||||
for Voice Initiated Funds Transfer Instruction or Telefacsimile Instruction.
|
ICAP Bond
|
|
Form 17-02-2367 (Rev. 10-03) Page 1
|
|
3
|
.
|
By adding to Section 1., Definitions, the following:
|
|
r.
|
Telefacsimile means a system of transmitting written documents by electronic signals
|
||
over telephone lines to equipment maintained by the ASSURED for the purpose of
|
|||
reproducing a copy of said document. Telefacsimile does not mean electronic
|
|||
communication sent by Telex or similar means of communication, or through an
electronic communication system or through an automated clearing house.
|
|||
|
|||
4
|
.
|
By adding to Section 3., Specific Exclusions Applicable to All Insuring Clauses Except Insuring
|
|
Clause 1. the following:
|
|||
j.
|
loss resulting directly or indirectly from Telefacsimile instructions provided, however, this
|
||
exclusion shall not apply to this INSURING CLAUSE.
|
|||
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2010.
|
|||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-2367 (Rev. 10-03) Page 2
|
|
FEDERAL INSURANCE COMPANY
|
|||||
Endorsement No.: 3 Bond
|
|||||
Bond Number: 81951478 | |||||
NAME OF ASSURED: DELAWARE INVESTMENT ADVISERS
|
|||||
AUTOMATED TELEPHONE TRANSACTION ENDORSEMENT
|
|||||
It is agreed that this Bond is amended as follows:
|
|||||
1
|
.
|
By adding the following INSURING CLAUSE:
|
|||
13. Automated Telephone System Transaction
|
|||||
Loss resulting directly from the ASSURED having transferred funds on the faith of any
|
|||||
Automated Phone System (APS) Transaction, where the request for such APS
|
|||||
Transaction is unauthorized or fraudulent and is made with the intent to deceive. In order for
|
|||||
coverage to apply under this INSURING CLAUSE the ASSURED shall maintain and follow all
|
|||||
APS Designated Procedures. A single failure of the ASSURED to maintain and follow a
|
|||||
particular APS Designated Procedure in a particular APS Transaction will not preclude
|
|||||
coverage under this INSURING CLAUSE.
|
|||||
2
|
.
|
By adding to Section 1., Definitions, the following:
|
|||
s. APS Designated Procedures means all of the following procedures:
|
|||||
(1
|
)
|
No APS Transaction shall be executed unless the shareholder or unitholder to whose
|
|||
account such an APS Transaction relates has previously elected to APS
|
|||||
Transactions. (Election in Application)
|
|||||
(2
|
)
|
All APS Transactions shall be logged or otherwise recorded and the records shall be
|
|||
retained for at least six (6) months. (Logging)
|
|||||
Information contained in the records shall be capable of being retrieved and produced
|
|||||
within a reasonable time after retrieval of specific information is requested, at a success
|
|||||
rate of no less than 85 percent.
|
|||||
(3
|
)
|
The caller in any request for an APS Transaction, before executing that APS
|
|||
Transaction must enter a personal identification number (PIN), social security number
|
|||||
and account number. (Identity Test)
|
|||||
If the caller fails to enter a correct PIN within three (3) attempts, the caller must not be
|
|||||
allowed additional attempts during the same telephone call to enter the PIN. The caller
|
|||||
may either be instructed to redial a customer service representative or may be
|
|||||
immediately connected to such a representative. (Limited attempts to Enter PIN)
|
ICAP Bond
|
|
Form 17-02-2345 (Ed. 10-00) Page 1
|
|
(4
|
)
|
A written confirmation of any APS Transaction or change of address shall be mailed to
|
|||
the shareholder or unitholder to whose account such transaction relates, at the record
|
|||||
address, by the end of the insured's next regular processing cycle, but in no event later
|
|||||
than five (5) business days following such APS Transaction. (Written Confirmation)
|
|||||
(5
|
)
|
Access to the equipment which permits the entity receiving the APS Transaction
|
|||
request to process and effect the transaction shall be limited in the following manner:
|
|||||
(Access to APS Equipment)
|
|||||
t.
|
APS Election means any election concerning various account features available to the
|
||||
shareholder or unitholder which is made through the Automated Phone System by means of
|
|||||
information transmitted by an individual caller through use of a Automated Phone System.
|
|||||
These features include account statements, auto exchange, auto asset builder, automatic
|
|||||
withdrawal, dividend/capital gain options, dividend sweep, telephone balance consent and
|
|||||
change of address.
|
|||||
u.
|
APS Exchange means any exchange of shares or units in a registered account of one fund
|
||||
into shares or units in an account with the same tax identification number and same
|
|||||
ownership-type code of another fund in the same complex pursuant to exchange privileges of
|
|||||
the two funds, which exchange is requested through the Automated Phone System by
|
|||||
means of information transmitted by an individual caller through use of an Automated Phone
|
|||||
System.
|
|||||
v.
|
APS Purchase means any purchase of shares or units issued by an Investment Company
|
||||
which is requested through an Automated Phone System.
|
|||||
w.
|
APS Redemption means any redemption of shares or units issued by an Investment
|
||||
Company which it requested through the telephone by means of information transmitted by
|
|||||
an individual caller through use of a Automated Phone System.
|
|||||
x.
|
APS Transaction means any APS Purchase, APS Redemption, APS Election or APS
|
||||
Exchange.
|
|||||
y.
|
Automated Phone System means an automated system which receives and converts to
|
||||
executable instructions transmissions through the Automated Phone System through use of
|
|||||
a touch-tone keypad or other tone system; and always excluding transmissions from a
|
|||||
computer system or part thereof.
|
|||||
3
|
.
|
By adding the following Section after Section 4., Specific Exclusions-Applicable To All Insuring
|
|||
Clauses Except 1., 4., 5.:
|
|||||
Section 4.A Specific Exclusion-Applicable to Insuring Clause 13
|
|||||
This Bond does not directly or indirectly cover under Insuring Clause 13:
|
|||||
Loss resulting from:
|
|||||
a.
|
the redemption of shares or units, where the proceeds of such redemption are made payable
|
||||
to other than:
|
|||||
(1
|
)
|
the shares or units of record,
|
|||
(2
|
)
|
a person designated to receive redemption proceeds, or
|
|||
(3
|
)
|
a bank account designated to receive redemption proceeds, or
|
|||
b.
|
the redemption of shares or units, where the proceeds of such redemption are paid by check
|
||||
mailed to any address, unless such address has either been designated the shareholder or
|
|||||
unitholder by voice through an Automated Phone System or in writing, at least thirty (30)
|
|||||
days prior to such redemption, or
|
ICAP Bond
|
|
Form 17-02-2345 (Ed. 10-00) Page 2
|
|
c.
|
the redemption of shares or units, where shareholder or unitholder of the ASSURED | |||
designated bank account of record.
|
||||
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2010.
|
||||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-2345 (Ed. 10-00) Page 3
|
|
FEDERAL INSURANCE COMPANY
|
|||||||||
Endorsement No.: 4 Bond | |||||||||
Bond Number: 81951478 | |||||||||
NAME OF ASSURED: DELAWARE INVESTMENT ADVISERS
|
|||||||||
STOP PAYMENT ORDER OR REFUSAL TO PAY CHECK ENDORSEMENT
|
|||||||||
It is agreed that this Bond is amended as follows:
|
|||||||||
1
|
.
|
By adding the following INSURING CLAUSE:
|
|||||||
“
|
14
|
.
|
Stop Payment Order or Refusal to Pay Check
|
||||||
Loss resulting directly from the ASSURED being legally liable to pay compensatory damages
|
|||||||||
for:
|
|||||||||
a.
|
complying or failing to comply with notice from any customer of the ASSURED or any
|
||||||||
authorized representative of such customer, to stop payment on any check or draft made or
|
|||||||||
drawn upon or against the ASSURED by such customer or by any authorized
|
|||||||||
representative of such customer, or
|
|||||||||
b.
|
refusing to pay any check or draft made or drawn upon or against the ASSURED by any
|
||||||||
customer of the ASSURED or by any authorized representative of such customer.”
|
|||||||||
2
|
.
|
By adding the following Specific Exclusion:
|
|||||||
“Section 4.A. Specific Exclusions – Applicable to INSURING CLAUSE 14
|
|||||||||
This Bond does not directly or indirectly cover:
|
|||||||||
a.
|
liability assumed by the ASSURED by agreement under any contract, unless such liability would
|
||||||||
have attached to the ASSURED even in the absence of such agreement,
|
|||||||||
b.
|
loss arising out of:
|
||||||||
(1
|
)
|
libel, slander, wrongful entry, eviction, defamation, false arrest, false imprisonment,
|
|||||||
malicious prosecution, assault or battery,
|
|||||||||
(2
|
)
|
sickness, disease, physical bodily harm, mental or emotional distress or anguish, or death of
|
|||||||
any person, or
|
|||||||||
(3
|
)
|
discrimination.”
|
|||||||
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2010.
|
|||||||||
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
FEDERAL INSURANCE COMPANY
|
|||||||
Endorsement No.: 5 Bond
|
|||||||
Bond Number: 81951478 | |||||||
NAME OF ASSURED: DELAWARE INVESTMENT ADVISERS
|
|||||||
UNAUTHORIZED SIGNATURE ENDORSEMENT
|
|||||||
It is agreed that this Bond is amended as follows:
|
|||||||
1
|
.
|
By adding the following INSURING CLAUSE:
|
|||||
15
|
.
|
Unauthorized Signature
|
|||||
Loss resulting directly from the ASSURED having accepted, paid or cashed any check or
|
|||||||
Withdrawal Order made or drawn on or against the account of the ASSURED’S customer which
|
|||||||
bears the signature or endorsement of one other than a person whose name and signature is on
|
|||||||
file with the ASSURED as a signatory on such account.
|
|||||||
It shall be a condition precedent to the ASSURED'S right of recovery under this INSURING
|
|||||||
CLAUSE that the ASSURED shall have on file signatures of all the persons who are signatories
|
|||||||
on such account.
|
|||||||
2
|
.
|
By adding to Section 1., Definitions, the following:
|
|||||
z.
|
Instruction means a written order to the issuer of an Uncertificated Security requesting that the
|
||||||
transfer, pledge or release from pledge of the specified Uncertificated Security be registered.
|
|||||||
aa.
|
Uncertificated Security means a share, participation or other interest in property of or an
|
||||||
enterprise of the issuer or an obligation of the issuer, which is:
|
|||||||
(1
|
)
|
not represented by an instrument and the transfer of which is registered on books
|
|||||
maintained for that purpose by or on behalf of the issuer, and
|
|||||||
(2
|
)
|
of a type commonly dealt in on securities exchanges or markets, and
|
|||||
(3
|
)
|
either one of a class or series or by its terms divisible into a class or series of shares,
|
|||||
participations, interests or obligations.
|
ICAP Bond
|
|
Form 17-02-5602 (Ed. 10-03) Page 1
|
|
bb.
|
Withdrawal Order means a non-negotiable instrument, other than an Instruction, signed by a
|
customer of the ASSURED authorizing the ASSURED to debit the customer’s account in the
|
|
amount of funds stated therein.
|
|
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2010.
|
|
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-5602 (Ed. 10-03) Page 2
|
|
FEDERAL INSURANCE COMPANY
|
|||||
Endorsement No.: 6 Bond
|
|||||
Bond Number: 81951478 | |||||
NAME OF ASSURED: DELAWARE INVESTMENT ADVISERS
|
|||||
EXTENDED COMPUTER SYSTEMS ENDORSEMENT
|
|||||
It is agreed that this Bond is amended as follows:
|
|||||
1
|
.
|
By adding the following INSURING CLAUSE:
|
|||
16. Extended Computer Systems
|
|||||
A. Electronic Data, Electronic Media, Electronic Instruction
|
|||||
Loss resulting directly from:
|
|||||
(1
|
)
|
the fraudulent modification of Electronic Data, Electronic Media or Electronic
|
|||
Instruction being stored within or being run within any system covered under this
|
|||||
INSURING CLAUSE,
|
|||||
(2
|
)
|
robbery, burglary, larceny or theft of Electronic Data, Electronic Media or
|
|||
Electronic Instructions,
|
|||||
(3
|
)
|
the acts of a hacker causing damage or destruction of Electronic Data,
|
|||
Electronic Media or Electronic Instruction owned by the ASSURED or for which
|
|||||
the ASSURED is legally liable, while stored within a Computer System covered
|
|||||
under this INSURING CLAUSE, or
|
|||||
(4
|
)
|
the damage or destruction of Electronic Data, Electronic Media or Electronic
|
|||
Instruction owned by the ASSURED or for which the ASSURED is legally liable
|
|||||
while stored within a Computer System covered under INSURING CLAUSE 16,
|
|||||
provided such damage or destruction was caused by a computer program or
|
|||||
similar instruction which was written or altered to intentionally incorporate a hidden
|
|||||
instruction designed to damage or destroy Electronic Data, Electronic Media, or
|
|||||
Electronic Instruction in the Computer System in which the computer program
|
|||||
or instruction so written or so altered is used.
|
ICAP2 Bond
|
|
Form 17-02-2976 (Ed. 1-02) Page 1
|
|
B.
|
Electronic Communication
|
|
Loss resulting directly from the ASSURED having transferred, paid or delivered any
|
||
funds or property, established any credit, debited any account or given any value on the
|
||
faith of any electronic communications directed to the ASSURED, which were
|
||
transmitted or appear to have been transmitted through:
|
||
(1)
|
an Electronic Communication System,
|
|
(2)
|
an automated clearing house or custodian, or
|
|
(3)
|
a Telex, TWX, or similar means of communication,
|
|
directly into the ASSURED'S Computer System or Communication Terminal, and
|
||
fraudulently purport to have been sent by a customer, automated clearing house,
|
||
custodian, or financial institution, but which communications were either not sent by said
|
||
customer, automated clearing house, custodian, or financial institution, or were
|
||
fraudulently modified during physical |