INVESTMENT COMPANY BLANKET BOND
Exhibit
II
INVESTMENT
COMPANY BLANKET BOND
The
Underwriter, in consideration of an agreed premium, and subject to the
Declarations made a part hereof, the General Agreements, Conditions and
Limitations and other terms of this bond, agrees with the Insured, in accordance
with the Insuring Agreements hereof to which an amount of insurance is
applicable as set forth in Item 3 of the Declarations and with respect to loss
sustained by the Insured at any time but discovered during the Bond Period,
to
indemnify and hold harmless the Insured for:
(A) FIDELITY
Loss
resulting from any dishonest or fraudulent act(s), including Larceny or
Embezzlement committed by an Employee, committed anywhere and whether committed
alone or in collusion with others, including loss of Property resulting from
such acts of an Employee, which Property is held by the Insured for any purpose
or in any capacity and whether so held gratuitously or not and whether or not
the Insured is liable therefor.
Dishonest
or fraudulent acts) as used in this Insuring Agreement shall mean only dishonest
or fraudulent act(s) committed by such Employee with the manifest
intent:
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(a)
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to
cause the Insured to sustain such loss;
and
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(b)
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to
obtain financial benefit for the Employee, or for any other person
or
organization intended by the Employee to receive such benefit, other
than
salaries, commissions, fees, bonuses, promotions, awards, profit
sharing,
pensions or other employee benefits earned in the normal course of
employment.
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(B) AUDIT
EXPENSE
Expense
incurred by the Insured for that part of the costs of audits or examinations
required by any governmental regulatory authority to be conducted either by
such
authority or by an independent accountant by reason of the discovery of loss
sustained by the Insured through any dishonest or fraudulent act(s), including
Larceny or Embezzlement of any of the Employees. The total liability of the
Underwriter for such expense by reason of such acts of any Employee or in which
such Employee is concerned or implicated or with respect to any one audit or
examination is limited to the amount stated opposite Audit Expense in Item
3 of
the Declarations; it being understood, however, that such expense shall be
deemed to be a loss sustained by the Insured through any dishonest or fraudulent
act(s), including Larceny or Embezzlement of one or more of the Employees and
the liability under this paragraph shall be in addition to the Limit of
liability stated in Insuring Agreement (A) in Item 3 of the
Declarations.
(C) ON
PREMISES
Loss
of
Property (occurring with or without negligence or violence) through robbery,
burglary, Larceny, theft, holdup, or other fraudulent means, misplacement,
mysterious unexplainable disappearance, damage thereto or destruction thereof,
abstraction or removal from the possession, custody or control of the Insured,
and loss of subscription, conversion, redemption or deposit privileges through
the misplacement or loss of Property, while the Property is (or is supposed
or
believed by the Insured to be) lodged or deposited within any offices or
premises located anywhere, except in an office listed in Item 4 of the
Declarations or amendment thereof or in the mail or with a carrier for hire
other than an armored motor vehicle company, for the purpose of
transportation.
Offices
and Equipment
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(1)
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Loss
of or damage to, furnishings, fixtures, stationery, supplies or equipment,
within any of the Insured’s offices covered under this bond caused by
Larceny or theft in, or by burglary, robbery or holdup of such office,
or
attempt thereat, or by vandalism or malicious mischief,
or
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(2)
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loss
through damage to any such office by Larceny or theft in, or by burglary,
robbery or holdup of such office or attempt thereat, or to the interior
of
any such office by vandalism or malicious mischief provided, in any
event,
that the Insured is the owner of such offices, furnishings, fixtures,
stationery, supplies or equipment or is legally liable for
such
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1
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loss
or damage, always excepting, however, all loss or damage through
fire.
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(D) IN
TRANSIT
Loss
of
Property (occurring with or without negligence or violence) through robbery,
Larceny, theft, holdup, misplacement, mysterious unexplainable disappearance,
being lost or otherwise made away with, damage thereto or destruction thereof,
and loss of subscription, conversion, redemption or deposit privileges through
the misplacement or loss of Property, while the Property is in transit anywhere
in the custody of any person or persons acting as messenger, except while in
the
mail or with a carrier for hire, other than an armored motor vehicle company,
for the purpose of transportation, such transit to begin immediately upon
receipt of such Property by the transporting person or persons, and to end
immediately upon delivery thereof at destination.
(E) FORGERY
OR ALTERATION
Loss
through FORGERY or ALTERATION of, on or in any bills of exchange, checks,
drafts, acceptances, certificates of deposit, promissory notes, or other written
promises, orders or directions to pay sums certain in money, due bills, money
orders, warrants, orders upon public treasuries, letters of credit, written
instructions, advices or applications directed to the Insured, authorizing
or
acknowledging the transfer, payment, delivery or receipt of funds or Property,
which instructions or advices or applications purport to have been signed or
endorsed by any customer of the Insured, shareholder or subscriber to shares,
whether certificated or uncertificated, of any Investment Company or by any
financial or banking institution or stockbroker but which instructions, advices
or applications either bear the forged signature or endorsement or have been
altered without the knowledge and consent of such customer, shareholder or
subscriber to shares, whether certificated or uncertificated, of an Investment
Company, financial or banking institution or stockbroker, withdrawal orders
or
receipts for the withdrawal of funds or Property, or receipts of certificates
of
deposit for Property and bearing the name of the Insured as issuer, or of
another Investment Company for which the Insured acts as agent, excluding,
however, any loss covered under Insuring Agreement (F) hereof whether or not
coverage for Insuring Agreement (F) is provided for in the Declarations of
this
bond.
Any
check
or draft (a) made payable to a fictitious payee and endorsed in the name of
such
fictitious payee or (b) procured in a transaction with the maker or drawer
thereof or with one acting as an agent of such maker or drawer or anyone
impersonating another and made or drawn payable to the one so impersonated
and
endorsed by anyone other than the one impersonated, shall be deemed to be forged
as to such endorsement.
Mechanically
reproduced facsimile signatures are treated the same as handwritten
signatures.
(F) SECURITIES
Loss
sustained by the Insured, including loss sustained by reason of a violation
of
the constitution, by-laws, rules or regulations of any Self Regulatory
Organization of which the Insured is a member or which would have been imposed
upon the Insured by the constitution, by-laws, rules or regulations of any
Self
Regulatory Organization if the Insured had been a member thereof,
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(1)
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through
the Insured’s having, in good faith and in the course of business, whether
for its own account or for the account of others, in any representative,
fiduciary, agency or any other capacity, either gratuitously or otherwise,
purchased or otherwise acquired, accepted or received, or sold or
delivered, or given any value, extended any credit or assumed any
liability, on the faith of, or otherwise acted upon, any securities,
documents or other written instruments which prove to
been
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(a)
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counterfeited,
or
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(b) |
forged
as to the signature of any maker, drawer, issuer, endorser, assignor,
xxxxxx, transfer agent or registrar, acceptor, surety or guarantor
or as
to the signature of any person signing in any other capacity,
or
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(c)
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raised
or otherwise altered, or lost, or stolen,
or
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(2)
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through
the Insured’s having, in good faith and in the course of business,
guaranteed in writing or witnessed any signatures whether for valuable
consideration or not and whether or
not
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such
guaranteeing or witnessing is ultra xxxxx the Insured, upon any transfers,
assignments, bills of sale, powers of attorney, guarantees, endorsements
or other obligations upon or in connection with any securities, documents
or other written instruments and which pass or purport to pass title
to
such securities, documents or other written instruments; EXCLUDING,
losses
caused by FORGERY or ALTERATION of, on or in those instruments covered
under Insuring Agreement (E)
hereof.
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Securities,
documents or other written instruments shall be deemed to mean
original
(including original counterparts) negotiable or non-negotiable
agreements
which in and of themselves represent an equitable interest, ownership,
or
debt, including an assignment thereof which instruments are in
the
ordinary course of business, transferable by delivery of such
agreements
with any necessary endorsement or
assignment.
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The
word “counterfeited” as used in this Insuring Agreement shall be deemed to
mean any security, document or other written instrument which
is intended
to deceive and to be taken for an
original.
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Mechanically
produced facsimile signatures are treated the same as handwritten
signatures.
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(G) COUNTERFEIT
CURRENCY
Loss
through the receipt by the Insured, in good faith, of any counterfeited money
orders or altered paper currencies or coin of the United States of America
or
Canada issued or purporting to have been issued by the United States of America
or Canada or issued pursuant to a United States of America or Canadian statute
for use as currency.
(H) STOP
PAYMENT
Loss
against any and all sums which the Insured shall become obligated to pay by
reason of the Liability imposed upon the Insured by law for
damages:
For
having
either complied with or failed to comply with any written notice of any
customer, shareholder or subscriber of the Insured or any Authorized
Representative of such customer, shareholder or subscriber to stop payment
of
any check or draft made or drawn by such customer, shareholder or subscriber
or
any Authorized Representative of such customer, shareholder or subscriber,
or
For
having
refused to pay any check or draft made or drawn by any customer, shareholder
or
subscriber of the Insured or any Authorized Representative of such customer,
shareholder or subscriber.
(I) UNCOLLECTIBLE
ITEMS OF DEPOSIT
Loss
resulting from payments of dividends or fund shares, or withdrawals permitted
from any customer’s, shareholder’s or subscriber’s account based upon
Uncollectible Items of Deposit of a customer, shareholder or subscriber credited
by the Insured or the Insured’s agent to such customer’s, shareholder’s or
subscriber’s Mutual Fund Account; or
loss
resulting from any Item of Deposit processed through an Automated Clearing
House
which is reversed by the customer, shareholder or subscriber and deemed
uncollectible by the Insured.
Loss
includes dividends and interest accrued not to exceed 15% of the Uncollectible
Items which are deposited.
This
Insuring Agreement applies to all Mutual Funds with “exchange privileges” if all
Fund(s) in the exchange program are insured by a National Union Fire Insurance
Company of Pittsburgh, PA for Uncollectible Items of Deposit. Regardless of
the
number of transactions between Fund(s), the minimum number of days of deposit
within the Fund(s) before withdrawal as declared in the Fund(s) prospectus
shall
begin from the date a deposit was first credited to any Insured
Fund(s).
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GENERAL
AGREEMENTS
A.
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ADDITIONAL
OFFICES OR EMPLOYEES-CONSOLIDATION OR
MERGER-NOTICE
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1.
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If
the Insured shall, while this bond is in force, establish any additional
office or offices, such office or offices shall be automatically
covered
hereunder from the dates of their establishment, respectively. No
notice
to the Underwriter of an increase during any premium period in the
number
of offices or in the number of Employees at any of the offices covered
hereunder need be given and no additional premium need be paid for
the
remainder of such premium period.
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2.
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If
an Investment Company, named as Insured herein, shall, while this
bond is
in force, merge or consolidate with, or purchase the assets of another
institution, coverage for such acquisition shall apply automatically
from
the date of acquisition. The Insured shall notify the Underwriter
of such
acquisition within 60 days of said date, and an additional premium
shall
be computed only if such acquisition involves additional offices
or
employees.
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B. WARRANTY
No
statement made by or on behalf of the Insured, whether contained in the
application or otherwise, shall be deemed to be a warranty of anything except
that it is true to the best of the knowledge and belief of the person making
the
statement.
C.
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COURT
COSTS AND ATTORNEYS’ FEES (Applicable to all Insuring Agreements or
Coverages now or hereafter forming part of this
bond)
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The
Underwriter will indemnify the Insured against court costs and reasonable
attorneys’ fees incurred and paid by the Insured in defense, whether or not
successful, whether or not fully litigated on the merits and whether or not
settled of any suit or legal proceeding brought against the Insured to enforce
the Insured’s liability or alleged liability on account of any loss, claim or
damage which, if established against the Insured, would constitute a loss
sustained by the Insured covered under the terms of this bond provided, however,
that with respect to Insuring Agreement (A) this indemnity shall apply only
in
the event that
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(1)
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an
Employee admits to being guilty of any dishonest or fraudulent act(s),
including Larceny or Embezzlement;
or
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(2)
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an
Employee is adjudicated to be guilty of any dishonest or fraudulent
act(s), including Larceny or
Embezzlement;
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(3)
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in
the absence of (1) or (2) above an arbitration panel agrees, after
a
review of an agreed statement of facts, that an Employee would be
found
guilty of dishonesty if such Employee were
prosecuted.
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The
Insured shall promptly give notice to the Underwriter of any such suit or legal
proceeding and at the request of the Underwriter shall furnish it with copies
of
all pleadings and other papers therein. At the Underwriter’s election the
Insured shall permit the Underwriter to conduct the defense of such suit or
legal proceeding, in the Insured’s name, through attorneys of the Underwriter’s
selection. In such event, the Insured shall give all reasonable information
and
assistance which the Underwriter shall deem necessary to the proper defense
of
such suit or legal proceeding.
If
the
amount of the Insured’s liability or alleged liability is greater than the
amount recoverable under this bond, or if a Deductible Amount is applicable,
or
both, the liability of the Underwriter under this General Agreement is limited
to the proportion of court costs and attorneys’ fees incurred and paid by the
Insured or by the Underwriter that the amount recoverable under this bond bears
to the total of such amount plus the amount which is not so recoverable. Such
indemnity shall be in addition to the Limit of Liability for the applicable
Insuring Agreement or Coverage.
D. FORMER
EMPLOYEE
Acts
of an
Employee, as defined in this bond, are covered under Insuring Agreement (A)
only
while the Employee is in the Insured’s employ. Should loss involving a former
Employee of the Insured be discovered subsequent to the termination
of
4
employment,
coverage would still apply under Insuring Agreement (A) if the direct proximate
cause of the loss occurred while the former Employee performed duties within
the
scope of his/her employment.
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THE
FOREGOING INSURING AGREEMENTS AND
GENERAL
AGREEMENTS ARE SUBJECT TO
THE
FOLLOWING CONDITIONS
AND
LIMITATIONS:
SECTION
1.
DEFINITIONS
The
following terms, as used in this bond, shall have the respective meanings stated
in this Section:
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(a)
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“Employee”
means:
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(1)
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any
of the Insured’s officers, partners, or employees,
and
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(2)
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any
of the officers or employees of any predecessor of the Insured whose
principal assets are acquired by the Insured by consolidation or
merger
with, or purchase of assets or capital stock of such predecessor,
and
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(3)
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attorneys
retained by the Insured to perform legal services for the Insured
and the
employees of such attorneys while such attorneys or the employees
of such
attorneys are performing such services for the Insured,
and
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(4)
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guest
students pursuing their studies or duties in any of the Insured’s offices,
and
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(5)
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directors
or trustees of the Insured, the investment advisor, underwriter
(distributor), transfer agent, or shareholder accounting record keeper,
or
administrator authorized by written agreement to keep financial and/or
other required records, but only while performing acts coming within
the
scope of the usual duties of an officer or employee or while acting
as a
member of any committee duly elected or appointed to examine or audit
or
have custody of or access to the Property of the Insured,
and
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(6)
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any
individual or individuals assigned to perform the usual duties of
an
employee within the premises of the Insured, by contract, or by any
agency
furnishing temporary personnel on a contingent or part-time basis,
and
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(7)
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each
natural person, partnership or corporation authorized by written
agreement
with the Insured to perform services as electronic data processor
of
checks or other accounting records of the Insured, but excluding
any such
processor who acts as transfer agent or in any other agency capacity
in
issuing checks, drafts or securities for the Insured, unless included
under Subsection (9) hereof, and
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(8)
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those
persons so designated in Section 15, Central Handling of Securities,
and
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(9)
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any
officer, partner or Employee of
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a)
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an
investment advisor,
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b)
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an
underwriter (distributor),
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c)
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a
transfer agent or shareholder accounting record-keeper,
or
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d)
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an
administrator authorized by written agreement to keep financial and/or
other required records,
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for
an
Investment Company named as Insured while performing acts coming within the
scope of the usual duties of an officer or Employee of any Investment Company
named as Insured herein, or while acting as a member of any committee duly
elected or appointed to examine or audit or have custody of or access to the
Property of any such Investment Company, provided that only Employees or
partners of a transfer agent, shareholder accounting record-keeper or
administrator which is an affiliated person as defined in the Investment Company
Act of 1940, of an Investment Company named
6
as
Insured
or is an affiliated person of the adviser, underwriter or administrator of
such
Investment Company, and which is not a bank, shall be included within the
definition of Employee.
Each
employer of temporary personnel or processors as set forth in Sub-Sections
(6)
and of Section 1(a) and their partners, officers and employees shall
collectively be deemed to be one person for all the purposes of this bond,
excepting, however, the last paragraph of Section 13.
Brokers,
or other agents under contract or representatives of the same general
character shall not be considered
Employees.
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(b)
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“Property”
means money (i.e., currency, coin, bank notes, Federal Reserve notes),
postage and revenue stamps, U.S. Savings Stamps, bullion, precious
metals
of all kinds and in any form and articles made therefrom, jewelry,
watches, necklaces, bracelets, gems, precious and semi-precious stones,
bonds, securities, evidences of debts, debentures, scrip, certificates,
interim receipts, warrants, rights, puts, calls, straddles, spreads,
transfers, coupons, drafts, bills of exchange, acceptances, notes,
checks,
withdrawal orders, money orders, warehouse receipts, bills of lading,
conditional sales contracts, abstracts of title, insurance policies,
deeds, mortgages under real estate and/or chattels and upon interests
therein, and assignments of such policies, mortgages and instruments,
and
other valuable papers, including books of account and other records
used
by the Insured in the conduct of its business, and all other instruments
similar to or in the nature of the foregoing including Electronic
Representations of such instruments enumerated above (but excluding
all
data processing records) in which the Insured has an interest or
in which
the Insured acquired or should have acquired an interest by reason
of a
predecessor’s declared financial condition at the time of the Insured’s
consolidation or merger with, or purchase of the principal assets
of, such
predecessor or which are held by the Insured for any purpose or in
any
capacity and whether so held by the Insured for any purpose or in
any
capacity and whether so held gratuitously or not and whether or not
the
Insured is liable therefor.
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(c)
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“Forgery”
means the signing of the name of another with intent to deceive;
it does
not include the signing of one’s own name with or without authority, in
any capacity, for any
purpose.
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(d)
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“Larceny
and Embezzlement” as it applies to any named Insured means those acts as
set forth in Section 37 of the Investment Company Act of
1940.
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(e)
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“Items
of Deposit” means any one or more checks and drafts. Items of Deposit
shall not be deemed uncollectible until the Insured’s collection
procedures have failed.
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SECTION
2.
EXCLUSIONS
THIS
BOND
DOES NOT COVER:
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(a)
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loss
effected directly or indirectly by means of forgery or alteration
of, on
or in any instrument, except when covered by Insuring Agreement (A),
(E),
(F) or (G).
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(b)
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loss
due to riot or civil commotion outside the United States of America
and
Canada; or loss due to military, naval or usurped power, war
or
insurrection unless such loss occurs in transit in the circumstances
recited in Insuring Agreement (D), and unless, when such transit
was
initiated, there was no knowledge of such riot, civil commotion,
military,
naval or usurped power, war or insurrection on the part of any
person
acting for the Insured in initiating such
transit.
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(c)
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loss,
in time of peace or war, directly or indirectly caused by or resulting
from the effects of nuclear fission or fusion or radioactivity; provided,
however, that
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7
this
paragraph shall not apply to loss resulting from industrial uses
of
nuclear energy.
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(d)
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loss
resulting from any wrongful act or acts of any person who is a member
of
the Board of Directors of the Insured or a member of any equivalent
body
by whatsoever name known unless such person is also an Employee or
an
elected official, partial owner or partner of the Insured in some
other
capacity, nor, in any event, loss resulting from the act or acts
of any
person while acting in the capacity of a member of such Board or
equivalent body.
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(e)
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loss
resulting from the complete or partial non-payment of, or default
upon,
any loan or transaction in the nature of, or amounting to, a loan
made by
or obtained from the Insured or any of its partners, directors or
Employees, whether authorized or unauthorized and whether procured
in good
faith or through trick, artifice, fraud or false pretenses, unless
such
loss is covered under Insuring Agreement (A), (E) or
(F).
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(f)
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loss
resulting from any violation by the Insured or by any
Employee
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(1)
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of
law regulating (a) the issuance, purchase or sale of securities,
(b)
securities transactions upon Security Exchanges or over the counter
market, (c) Investment Companies, or (d) Investment Advisors,
or
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(2)
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of
any rule or regulation made pursuant to any such law, unless such
loss, in
the absence of such laws, rules or regulations, would be covered
under
Insuring Agreements (A) or (E).
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(g)
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loss
of Property or loss of privileges through the misplacement or loss
of
Property as set forth in Insuring Agreement (C) or (D) while the
Property
is in the custody of any armored motor vehicle company, unless such
loss
shall be in excess of the amount recovered or received by the Insured
under (a) the Insured’s contract with said armored motor vehicle company,
(b) insurance carried by said armored motor vehicle company for the
benefit of users of its service, and (c) all other insurance and
indemnity
in force in whatsoever form carried by or for the benefit of users
of said
armored motor vehicle company’s service, and then this bond shall cover
only such excess.
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(h)
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potential
income, including but not limited to interest and dividends, not
realized
by the Insured because of a loss covered under this bond, except
as
included under Insuring Agreement
(I).
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(i)
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all
damages of any type for which the Insured is legally liable, except
direct
compensatory damages arising from a loss covered under this
bond.
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(j)
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loss
through the surrender of Property away from an office of the Insured
as a
result of a threat
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(1)
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to
do bodily harm to any person, except loss of Property in transit
in the
custody of any person acting as messenger provided that when such
transit
was initiated there was no knowledge by the Insured of any such threat,
or
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(2)
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to
do damage to the premises or Property of the Insured, except when
covered
under Insuring Agreement (A).
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(k)
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all
costs, fees and other expenses incurred by the Insured in establishing
the
existence of or amount of loss covered under this bond unless such
indemnity is provided for under Insuring Agreement
(B).
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(l)
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loss
resulting from payments made or withdrawals from the account of a
customer
of the Insured, shareholder or subscriber to shares involving funds
erroneously credited to such account, unless such payments are made
to or
withdrawn by such depositor or representative of such person, who
is
within the premises of the drawee bank of the Insured or within the
office
of the Insured at the time of such payment or withdrawal or unless
such
payment is covered under Insuring Agreement
(A).
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(m)
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any
loss resulting from Uncollectible Items of Deposit which are drawn
from a
financial
institution outside the fifty states of the United States of America,
District of Columbia, and territories and possessions of the United
States
of America, and Canada.
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SECTION
3.
ASSIGNMENT OF RIGHTS
This
bond
does not afford coverage in favor of any Employers of temporary personnel or
of
processors as set forth in sub-sections (6) and (7) of Section 1(a) of this
bond, as aforesaid, and upon payment to the Insured by the Underwriter on
account of any loss through dishonest or fraudulent act(s) including 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 Insured’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 Insured to the Underwriter, and the Insured shall
execute all papers necessary to secure to the Underwriter the rights herein
provided for.
SECTION
4.
LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS
This
bond
is for the use and benefit only of the Insured named in the Declarations and
the
Underwriter shall not be liable hereunder for loss sustained by anyone other
than the Insured unless the Insured, in its sole discretion and at its option,
shall include such loss in the Insured’s proof of loss. At the earliest
practicable moment after discovery of any loss hereunder the Insured shall
give
the Underwriter written notice thereof and shall also within six months after
such discovery furnish to the Underwriter affirmative proof of loss with full
particulars. If claim is made under this bond for loss of securities or shares,
the Underwriter shall not be liable unless each of such securities or shares
is
identified in such proof of loss by a certificate or bond number or, where
such
securities or shares are uncertificated, by such identification means as agreed
to by the Underwriter. The Underwriter shall have thirty days after notice
and
proof of loss within which to investigate the claim, but where the loss is
clear
and undisputed, settlement shall be made within forty-eight hours; and this
shall apply notwithstanding the loss is made up wholly or in part of securities
of which duplicates may be obtained. Legal proceedings for recovery of any
loss
hereunder shall not be brought prior to the expiration of sixty days after
such
proof of loss is filed with the Underwriter nor after the expiration of
twenty-four months from the discovery of such loss, except that any action
or
proceeding to recover hereunder on account of any judgment against the Insured
in any suit mentioned in General Agreement C or to recover attorneys’ fees paid
in any such suit, shall be begun within twenty-four months from the date upon
which the judgment in such suit shall become final. If any limitation embodied
in this bond is prohibited by any law controlling the construction hereof,
such
limitation shall be deemed to be amended so as to be equal to the minimum period
of limitation permitted by such law.
Discovery
occurs when the Insured
|
(a)
|
becomes
aware of facts, or
|
(b)
|
receives
written notice of an actual or potential claim by a third party which
alleges that the Insured is liable under
circumstance
|
which
would cause a reasonable person to assume that a loss covered by the bond has
been or will be incurred even though the exact amount or details of loss may
not
be then known.
SECTION
5.
VALUATION OF PROPERTY
The
value
of any Property, except books of accounts or other records used by the Insured
in the conduct of its business, for the loss of which a claim shall be made
hereunder, shall be determined by the average market value of such Property
on
the business day next preceding the discovery of such loss; provided, however,
that the value of any Property replaced by the Insured prior to the payment
of
claim therefor shall be the actual market value at the time of replacement;
and
further provided that in case of a loss or misplacement of interim certificates,
warrants, rights, or other securities, the production which is necessary to
the
exercise of subscription, conversion, redemption or deposit privileges, the
value thereof shall be the market value of such privileges immediately preceding
the expiration thereof if said loss or misplacement 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
or by
arbitration.
9
In
case of
any loss or damage to Property consisting of books of accounts or other records
used by
the
Insured in the conduct of its business, the Underwriter shall be liable under
this bond only if such books or records are actually reproduced and then for
not
more than the cost of blank books, blank pages or other materials plus the
cost
of labor for the actual transcription or copying of data which shall have been
furnished by the Insured in order to reproduce such books and other
records.
SECTION
6.
VALUATION OF PREMISES AND FURNISHINGS
In
case of
damage to any office of the Insured, or loss of or damage to the furnishings,
fixtures, stationery, supplies, equipment, safes or vaults therein, the
Underwriter shall not be liable for more than the actual cash value thereof,
or
for more than the actual cost of their replacement or repair. The Underwriter
may, at its election, pay such actual cash value or make such replacement or
repair. If the Underwriter and the Insured cannot agree upon such cash value
or
such cost of replacement or repair, such shall be determined by
arbitration.
SECTION
7.
LOST SECURITIES
If
the
Insured shall sustain a loss of securities the total value of which is in excess
of the limit stated in Item 3 of the Declarations of this bond, the liability
of
the Underwriter shall be limited to payment for, or duplication of, securities
having value equal to the limit stated in Item 3 of the Declarations of this
bond.
If
the
Underwriter shall make payment to the Insured for any loss of securities, the
Insured shall thereupon assign to the Underwriter all of the Insured’s rights,
title and interests in and to said securities.
With
respect to securities the value of which do not exceed the Deductible Amount
(at
the time of the discovery of the loss) and for which the Underwriter may at
its
sole discretion and option and at the request of the Insured issue a Lost
Instrument Bond or Bonds to effect replacement thereof, the Insured will pay
the
usual premium charged therefor and will indemnify the Underwriter against all
loss or expense that the Underwriter may sustain because of the issuance of
such
Lost Instrument Bond or Bonds.
With
respect to securities the value of which exceeds the Deductible Amount (at
the
time of discovery of the loss) and for which the Underwriter may issue or
arrange for the issuance of a Lost Instrument Bond or Bonds to effect
replacement thereof, the Insured agrees that it will pay as premium therefor
a
proportion of the usual premium charged therefor, said proportion being equal
to
the percentage that the Deductible Amount bears to the value of the securities
upon discovery of the loss, and that it will indemnify the issuer of said Lost
Instrument Bond or Bonds against all loss and expense that is not recoverable
from the Underwriter under the terms and conditions of this INVESTMENT COMPANY
BLANKET BOND subject to the Limit of Liability hereunder.
SECTION
8.
SALVAGE
In
case of
recovery, whether made by the Insured or by the Underwriter, on account of
any
loss in excess of the Limit of Liability hereunder plus the Deductible Amount
applicable to such loss from any source other than suretyship, insurance,
reinsurance, security or indemnity taken by or for the benefit of the
Underwriter, the net amount of such recovery, less the actual costs and expenses
of making same, shall be applied to reimburse the Insured in full for the excess
portion of such loss, and the remainder, if any, shall be paid first in
reimbursement of the Underwriter and thereafter in reimbursement of the Insured
for that part of such loss within the Deductible Amount. The Insured shall
execute all necessary papers to secure to the Underwriter the rights provided
for herein.
SECTION
9.
NON-REDUCTION
AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
At
all
times prior to termination hereof this bond shall continue in force for the
limit stated in the applicable sections of Item 3 of the Declarations of this
bond notwithstanding any previous loss for which the Underwriter may have paid
or be liable to pay hereunder; PROVIDED, however, that 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 Underwriter under this bond
with
respect to all loss resulting from
|
(a)
|
any
one act of burglary, robbery or holdup, or attempt thereat, in which
no
Partner or Employee is concerned or implicated shall be deemed to
be one
loss, or
|
10
(b)
|
any
one unintentional or negligent act on the part of any one person
resulting
in damage to or destruction or misplacement
of Property, shall be deemed to be one loss,
or
|
|
(c)
|
all
wrongful acts, other than those specified in (a) above, of any one
person
shall be deemed to be one loss, or
|
(d)
|
all
wrongful acts, other than those specified in (a) above, of one or
more
persons (which dishonest act(s) or act(s) of Larceny or Embezzlement
include, but are not limited to, the failure of an Employee to report
such
acts of others) whose dishonest act or acts intentionally or
unintentionally, knowingly or unknowingly, directly or indirectly,
aid or
aids in any way, or permits the continuation of, the dishonest act
or acts
of any other person or persons shall be deemed to be one loss with
the act
or acts of the persons aided, or
|
|
(e)
|
any
one casualty or event other than those specified in (a), (b), (c)
or (d)
preceding, shall be deemed to be one loss,
and
|
shall
be
limited to the applicable Limit of Liability stated in Item 3 of the
Declarations of this bond irrespective of the total amount of such loss or
losses and shall not be cumulative in amounts from year to year or from period
to period.
Sub-section
(c) is not applicable to any situation to which the language of sub-section
(d)
applies.
SECTION
10. LIMIT OF LIABILITY
With
respect to any loss set forth in the PROVIDED clause of Section 9 of this bond
which is recoverable or recovered in whole or in part under any other bonds
or
policies issued by the Underwriter to the Insured or to any predecessor in
interest of the Insured and terminated or cancelled or allowed to expire and
in
which the period for discovery has not expired at the time any such loss
thereunder is discovered, the total liability of the Underwriter under this
bond
and under other bonds or policies shall not exceed, in the aggregate, the amount
carried hereunder on such loss 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 if the latter amount be the larger.
SECTION
11. OTHER INSURANCE
If
the
Insured shall hold, as indemnity against any loss covered hereunder, any valid
and enforceable insurance or suretyship, the Underwriter shall be liable
hereunder only for such amount of such loss which is in excess of the amount
of
such other insurance or suretyship, not exceeding, however, the Limit of
Liability of this bond applicable to such loss.
SECTION
12. DEDUCTIBLE
The
Underwriter shall not be liable under any of the Insuring Agreements of this
bond on account of loss as specified, respectively, in sub-sections (a), (b),
(c), (d) and (e) of Section 9, NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY
AND TOTAL LIABILITY, unless the amount of such loss, after deducting the net
amount of all reimbursement and/or recovery obtained or made by the Insured,
other than from any bond or policy of insurance issued by an insurance company
and covering such loss, or by the Underwriter on account thereof prior to
payment by the Underwriter of such loss, shall exceed the Deductible Amount
set
forth in Item 3 of the Declarations hereof (herein called Deductible Amount)
and
then for such excess only, but in no event for more than the applicable Limit
of
Liability stated in Item 3 of the Declarations.
The
Insured will bear, in addition to the Deductible Amount, premiums on Lost
Instrument Bonds as set forth in Section 7.
There
shall be no deductible applicable to any loss under Insuring Agreement A
sustained by any Investment Company named as Insured herein.
SECTION
13. TERMINATION
The
Underwriter may terminate this bond as an entirety by furnishing written notice
specifying the termination date which cannot be prior to 60 days after the
receipt of such written notice by each Investment Company named as Insured
and
the Securities and Exchange Commission, Washington, D.C. The Insured may
terminate this bond as an entirety by furnishing written notice to the
Underwriter. When the Insured cancels, the Insured shall furnish written notice
to the Securities and Exchange Commission, Washington, D.C. prior to 60 days
before the effective date of the termination. The Underwriter shall notify
all
other Investment Companies named as Insured of the receipt of such
11
termination
notice and the termination cannot be effective
prior to 60 days after receipt of written notice by all other Investment
Companies. Premiums are earned until the termination date as set forth
herein.
This
Bond
will terminate as to any one Insured immediately upon taking over of such
Insured by a receiver or other liquidator or by State or Federal officials,
or
immediately upon the filing of a petition under any State or Federal statute
relative to bankruptcy or reorganization of the Insured, or assignment for
the
benefit of creditors of the Insured, or immediately upon such Insured ceasing
to
exist, whether through merger into another entity, or by disposition of all
of
its assets.
The
Underwriter shall refund the unearned premium computed at short rates in
accordance with the standard short rate cancellation tables if terminated by
the
Insured or pro rata if terminated for any other reason.
This
Bond
shall terminate
|
(a)
|
as
to any Employee as soon as any partner, officer or supervisory Employee
of
the Insured, who is not in collusion with such Employee, shall learn
of
any dishonest or fraudulent act(s), including Larceny or Embezzlement
on
the part of such Employee without prejudice to the loss of any Property
then in transit in the custody of such Employee (See Section 16[d]),
or
|
(b)
|
as
to any Employee 60 days after receipt by each Insured and by the
Securities and Exchange Commission of a written notice from the
Underwriter of its desire to terminate this bond as to such Employee,
or
|
|
(c)
|
as
to any person, who is a partner, officer or employee of any Electronic
Data Processor covered under this bond, from and after the time that
the
Insured or any partner or officer thereof not in collusion with such
person shall have knowledge or information that such person has committed
any dishonest or fraudulent act(s), including Larceny or Embezzlement
in
the service of the Insured or otherwise, whether such act be committed
before or after the time this bond is
effective.
|
SECTION
14. RIGHTS
AFTER TERMINATION OR CANCELLATION
At
any
time prior to the termination or cancellation of this bond as an entirety,
whether by the Insured or the Underwriter, the Insured may give to the
Underwriter notice that it desires under this bond an additional period of
12
months within which to discover loss sustained by the Insured prior to the
effective date of such termination or cancellation and shall pay an additional
premium therefor.
Upon
receipt of such notice from the Insured, the Underwriter shall give its written
consent thereto; provided, however, that such additional period of time shall
terminate immediately;
|
(a)
|
on
the effective date of any other insurance obtained by the Insured,
its
successor in business or any other party, replacing in whole or in
part
the insurance afforded by this bond, whether or not such other insurance
provides coverage for loss sustained prior to its effective date,
or
|
(b)
|
upon
takeover of the Insured’s business by any State or Federal official or
agency, or by any receiver or liquidator, acting or appointed for
this
purpose
|
without
the necessity of the Underwriter giving notice of such termination. In the
event
that such additional period of time is terminated, as provided above, the
Underwriter shall refund any unearned premium.
The
right
to purchase such additional period for the discovery of loss may not be
exercised by any State or Federal official or agency, or by any receiver or
liquidator, acting or appointed to take over the Insured’s business for the
operation or for the liquidation thereof or for any other purpose.
SECTION
15. CENTRAL
HANDLING OF SECURITIES
Securities
included in the systems for the central handling of securities established
and
maintained by Depository Trust Company, Midwest Depository Trust Company,
Pacific Securities Depository Trust Company, and Philadelphia Depository Trust
Company, hereinafter called Corporations, to the extent of the Insured’s
interest therein as effective by the making of appropriate
12
entries
on
the books and records of such Corporations shall be deemed to be
Property.
The
words
“Employee” and “Employees” shall be deemed to include the officers, partners,
clerks and other employees of the New York Stock Exchange, Boston Stock
Exchange, Midwest Stock Exchange, Pacific Stock Exchange and Philadelphia Stock
Exchange, hereinafter called Exchanges, and of the above named Corporations,
and
of any nominee in whose name is registered any security included within the
systems for the central handling of securities established and maintained by
such Corporations, and any employee of any recognized service company, while
such officers, partners, clerks and other employees and employees of service
companies perform services for such Corporations in the operation of such
systems. For the purpose of the above definition a recognized service company
shall be any company providing clerks or other personnel to said Exchanges
or
Corporation on a contract basis.
The
Underwriter shall not be liable on account of any loss(es) in connection with
the central handling of securities within the systems established and maintained
by such Corporations, unless such loss(es) shall be in excess of the amount(s)
recoverable or recovered under any bond or policy of insurance indemnifying
such
Corporations, against such loss(es), and then the Underwriter shall be liable
hereunder only for the Insured’s share of such excess loss(es), but in no event
for more than the Limit of Liability applicable hereunder.
For
the
purpose of determining the Insured’s share of excess loss(es) it shall be deemed
that the Insured has an interest in any certificate representing any security
included within such systems equivalent to the interest the Insured then has
in
all certificates representing the same security included within such systems
and
that such Corporations shall use their best judgement in apportioning the
amount(s) recoverable or recovered under any bond or policy of insurance
indemnifying such Corporations against such loss(es) in connection with the
central handling of securities within such systems among all those having an
interest as recorded by appropriate entries in the books and records of such
Corporations in Property involved in such loss(es) on the basis that each such
interest shall share in the amount(s) so recoverable or recovered in the ratio
that the value of each such interest bears to the total value of all such
interests and that the Insured’s share of such excess loss(es) shall be the
amount of the Insured’s interest in such Property in excess of the amount(s) so
apportioned to the Insured by such Corporations.
This
bond
does not afford coverage in favor of such Corporations or Exchanges or any
nominee in whose name is registered any security included within the systems
for
the central handling of securities established and maintained by such
Corporations, and upon payment to the Insured by the Underwriter on account
of
any loss(es) within the systems, an assignment of such of the Insured’s rights
and causes of action as it may have against such Corporations or Exchanges
shall
to the extent of such payment, be given by the Insured to the Underwriter,
and
the Insured shall execute all papers necessary to secure to the Underwriter
the
rights provided for herein.
SECTION
16. ADDITIONAL
COMPANIES INCLUDED AS INSURED
If
more
than one corporation, co-partnership or person or any combination of them be
included as the Insured herein:
|
(a)
|
the
total liability of the Underwriter hereunder for loss or losses sustained
by any one or more or all of them shall not exceed the limit for
which the
Underwriter would be liable hereunder if all such loss were sustained
by
any one of them,
|
(b)
|
the
one first named herein shall be deemed authorized to make, adjust
and
receive and enforce payment of all claims hereunder and shall be
deemed to
be the agent of the others for such purposes and for the giving or
receiving of any notice required or permitted to be given by the
terms
hereof, provided that the Underwriter shall furnish each named Investment
Company with a copy of the bond and with any amendment thereto, together
with a copy of each formal filing of the settlement of each such
claim
prior to the execution of such
settlement,
|
|
(c)
|
the
Underwriter shall not be responsible for the proper application of
any
payment made hereunder to said first named
Insured,
|
(d)
|
knowledge
possessed or discovery made by any partner, officer or supervisory
Employee of any Insured shall for
the
|
13
|
purposes
of Section 4 and Section 13 of this bond constitute knowledge or
discovery
by all the Insured, and
|
|
(e)
|
if
the first named Insured ceases for any reason to be covered under
this
bond, then the Insured next named shall thereafter be considered
as the
first named Insured for the purposes of this
bond.
|
SECTION
17. NOTICE
AND
CHANGE OF CONTROL
Upon
the
Insured’s obtaining knowledge of a transfer of its outstanding voting securities
which results in a change in control (as set forth in Section 2(a) (9) of the
Investment Company Act of 1940) of the Insured, the Insured shall within thirty
(30) days of such knowledge give written notice to the Underwriter setting
forth:
|
(a)
|
the
names of the transferors and transferees (or the names of the beneficial
owners if the voting securities are requested in another name),
and
|
(b)
|
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
|
|
(c)
|
the
total number of outstanding voting
securities.
|
As
used in
this section, control means the power to exercise a controlling influence over
the management or policies of the Insured.
Failure
to
give the required notice shall result in termination of coverage of this bond,
effective upon the date of stock transfer for any loss in which any transferee
is concerned or implicated.
Such
notice is not required to be given in the case of an Insured which is an
Investment Company.
SECTION
18. CHANGE OR MODIFICATION
This
bond
or any instrument amending or effecting same may not be changed or modified
orally. No changes in or modification thereof shall be effective unless made
by
written endorsement issued to form a part hereof over the signature of the
Underwriter’s Authorized Representative. When a bond covers only one Investment
Company no change or modification which would adversely affect the rights of
the
Investment Company shall be effective prior to 60 days after written
notification has been furnished to the Securities and Exchange Commission,
Washington, D.C. by the Insured or by the Underwriter. If more than one
Investment Company is named as the Insured herein, the Underwriter shall give
written notice to each Investment Company and to the Securities and Exchange
Commission, Washington, D.C. not less than 60 days prior to the effective date
of any change or modification which would adversely affect the rights of such
Investment Company.
IN
WITNESS
WHEREOF, the Underwriter has caused this bond to be executed on the Declarations
Page.
14
NATIONAL
UNION FIRE INSURANCE COMPANY
OF
PITTSBURGH, PA
Rider
No.
AMENDMENT
TO TERMINATION
To
be
attached to and form part of Investment Company Blanket Bond
No.
in
favor
of
It
is
agreed that:
1.
|
The
attached bond is hereby amended by deleting Section 13., TERMINATION,
in
its entirety and substituting the
following:
|
The
Underwriter may terminate this bond as an entirety by furnishing written notice
specifying the termination date which cannot be prior to 90 days after the
receipt of such written notice by each Investment Company named as Insured
and
the Securities and Exchange Commission, Washington, D.C. The Insured may
terminate this bond as an entirety by furnishing written notice to the
Underwriter. When the Insured cancels, the Insured shall furnish written notice
to the Securities and Exchange Commission, Washington, D.C. prior to 90 days
before the effective date of the termination. The Underwriter shall notify
all
other Investment Companies named as Insured of the receipt of such termination
notice and the termination cannot be effective prior to 90 days after receipt
of
written notice by all other Investment Companies. Premiums are earned until
the
termination date as set forth herein.
This
Bond
will terminate as to any one Insured, (other than a registered management
investment company), immediately upon taking over of such Insured by a receiver
or other liquidator or by State or Federal officials, or immediately upon the
filing of a petition under any State or Federal statute relative to bankruptcy
or reorganization of the Insured, or assignment for he benefit of creditors
of
the Insured, or immediately upon such Insured ceasing to exist, whether through
merger into another entity, or by disposition of all of its assets.
This
Bond
will terminate as to any registered management investment company upon the
expiration of 90 days after written notice has been given to the Securities
and
Exchange Commission, Washington, D.C.
The
Underwriter shall refund the unearned premium computed at short rates in
accordance with the standard short rate cancellation tables if terminated by
the
Insured or pro rata terminated for any other reason.
This
bond
shall terminate
|
a.
|
as
to any Employee as soon as any partner, officer or supervisory Employee
of
the Insured, who is not in collusion with such Employee, shall learn
of
any dishonest or fraudulent act(s), including Larceny or Embezzlement
on
the part of such Employee without prejudice to the loss of any Property
then in transit in the custody of such Employee and upon the expiration
of
ninety (90) days after written notice has been given to the Securities
and
Exchange Commission, Washington, D.C. (See Section 16(d)) and to
the
Insured Investment Company, or
|
|
b.
|
as
to any Employee 90 days after receipt by each Insured and by the
Securities and Exchange Commission of a written notice from the
Underwriter of its desire to terminate this bond as to such Employee,
or
|
|
c.
|
as
to any person, who is a partner, officer or employee of any Electronic
Data Processor covered under this bond, from and after the time that
the
Insured or any partner or officer thereof not in collusion with such
person shall have knowledge or information that such person has committed
any dishonest or fraudulent act(s), including Larceny or Embezzlement
in
the service of the
|
|
Insured
or otherwise, whether such act be committed before or after the time
this
bond is effective and upon the expiration of ninety (90) days after
written notice has been given by the Underwriter to the Securities
and
Exchange Commission, Washington DC and to the insured Investment
Company.
|
2.
|
Nothing
herein contained shall be held to vary, alter, waive, or extend any
of the
terms, limitations, conditions, or provisions of the attached bond
other
than as above stated.
|
3.
|
This
rider is effective as of 12:01 a.m.
on
|
By:
|
/s/
Xxxxx X.
Xxxxxx
|
|
Authorized
Representative
|
||
NATIONAL
UNION FIRE INSURANCE COMPANY
OF
PITTSBURGH, PA
RIDER
NO.
INSURING
AGREEMENT
To
be
attached to and form part of Bond No.
in
favor
of
It
is
agreed that:
1. The
attached bond is amended by adding an additional insuring agreement as
follows:
COMPUTER
SYSTEMS
Loss
resulting directly from a fraudulent
(1) entry
of data into, or
(2) change
of data or programs within
a
Computer
System; provided the fraudulent entry or change causes
(a) Property
to be transferred, paid or delivered,
(b) an
account of the Insured, or of its customer, to be added, deleted, debited or
credited:
(c) an
unauthorized account of a fictitious account to be debited or
credited;
(3) voice
instructions or advices having been transmitted to the Insured or its agent(s)
by telephone;
and
provided further, the fraudulent entry or change is made or caused by an
individual acting with the intent to:
(i) | cause the Insured or its agent(s) to sustain a loss, and |
(ii)
|
obtain
financial benefit for that individual or for other persons intended
by
that individual to receive financial
benefit,
|
(iii)
|
and
further provided such voice instruction or
advices:
|
(a)
|
were
made by a person who purported to represent an individual authorized
to
make such voice instruction or advices;
and
|
(b)
|
were
electronically recorded by the Insured or its
agent(s).
|
(4) It
shall be a condition to recovery under the Computer Systems Rider that the
Insured or its agent(s) shall to the best of their ability electronically record
all voice instructions or advices received over telephone. The Insured or its
agent(s) warrant that they shall make their best efforts to maintain the
electronic recording system on a continuous basis. Nothing, however, in this
Rider shall bar the Insured from recovery where no recording is available
because of mechanical failure of the device used in making such recording,
or
because of failure of the media used to record conversation from any cause,
or
error or omission of any Employee(s) or agent(s) of the Insured.
SCHEDULE
OF SYSTEMS
All
computer systems utilized by the Insured
2.
|
As
used in this Rider, Computer System
means:
|
(a)
|
computers
with related peripheral components, including storage components,
wherever
located,
|
(b) systems
and application software,
(c) terminal
devices,
(d) related
communication networks or customer communication systems, and
(e) related
Electronic Funds Transfer Systems,
by
which
data are electronically collected, transmitted, processed, stored, and
retrieved.
3.
|
In
addition to the exclusions in the attached bond, the following exclusions
are applicable to this Insuring
Agreement:
|
(a)
|
loss
resulting directly or indirectly from the theft of confidential
information, material or data; and
|
(b) |
loss
resulting directly or indirectly from entries or changes made by
an
individual authorized to have access to a Computer System who acts
in good
faith on instructions, unless such instructions are given to that
individual by a software contractor (or by a partner, officer or
employee
thereof) authorized by the Insured to design, develop, prepare,
supply
service, write or implement programs for the Insured’s Computer
System.
|
4.
|
The
following portions of the attached bond are not applicable to this
Rider:
|
(a)
|
the
initial paragraph of the bond preceding the Insuring Agreements which
reads “...at any time but discovered during the Bond
Period.”
|
(b)
|
Section
9-NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL
LIABILITY
|
(c)
|
Section
10-LIMIT OF LIABILITY
|
5.
|
The
Coverage afforded by this rider applies only to loss discovered by
the
Insured during the period this Rider is in
force.
|
6.
|
All
loss or series of losses involving the fraudulent activity of one
individual, or involving fraudulent activity in which one individual
is
implicated, whether or not that individual is specifically identified,
shall be treated as one loss. A Series of losses involving unidentified
individuals but arising from the same method of operation may be
deemed by
the Underwriter to involve the same individual and in that event
shall be
treated as one loss.
|
7.
|
The
Limit of Liability for the coverage provided by this Rider shall
be
|
( ),
it being understood however, that such liability shall be part of
and not
in addition to the Limit of Liability stated in Item 3 of the Declarations
of the attached bond.
|
8.
|
The
Underwriter shall be liable hereunder for the amount by which one
loss
shall be in excess of
|
|
( ),
(herein called the Deductible amount) but not in excess of the Limit
of
Liability stated above.
|
9.
|
If
any loss is covered under this Insuring Agreement and any other Insuring
Agreement or Coverage, the maximum amount payable for such loss shall
not
exceed the largest amount available under any one Insuring Agreement
or
Coverage.
|
10.
|
Coverage
under this Rider shall terminate upon termination or cancellation
of the
bond to which this Rider is attached. Coverage under this rider may
also
be terminated or cancelled without canceling the bond as an
entirety:
|
(a)
|
60
days after receipt by the Insured of written notice from the Underwriter
of its desire to terminate or cancel coverage under this Rider,
or
|
(b)
|
immediately
upon receipt by the Underwriter of a written request from the Insured
to
terminate or cancel coverage under this
Rider.
|
The
Underwriter shall refund to the Insured the unearned premium for this coverage
under this Rider. The refund shall be computed at short rates if this Rider
is
terminated or cancelled or reduced by notice from, or at the instance of, the
Insured.
11.
|
Section
4-LOSS-NOTICE-PROOF-LEGAL PROCEEDING of the Conditions and Limitations
of
this bond is amended by adding the following
sentence:
|
“Proof
of
Loss resulting from Voice Instructions or advices covered under this bond shall
include Electronic Recording of such Voice Instructions or
advices.”
12.
|
Not
withstanding the foregoing, however, coverage afforded by this Rider
is
not designed to provide protection against loss covered under a separate
Electronic and Computer Crime Policy by whatever title assigned or
by
whatever Underwriter written. Any loss which is covered under such
separate Policy is excluded from coverage under this bond; and the
Insured
agrees to make claim for such loss under its separate
Policy.
|
13.
|
This
rider shall become effective at 12:01 a.m. Standard time
on
|
By:
|
/s/
Xxxxx X.
Xxxxxx
|
|
Authorized
Representative
|
||
NATIONAL
UNION FIRE INSURANCE COMPANY
OF
PITTSBURGH, PA
RIDER
NO.
INSURING
AGREEMENT
To
be
attached to and form a part of Investment Company Blanket Bond
No.
in
favor
of
It
is
agreed that:
(1)
|
The
attached bond is amended by adding an additional Insuring Agreement
as
follows:
|
UNAUTHORIZED
SIGNATURES
(2)
|
Loss
resulting directly from the insured having accepted, paid or cashed
any
check or withdrawal order, draft, made or drawn on a customer’s account
which bears the signature or endorsement of one other than a person
whose
name and signature is on the application on file with the Insured
as a
signatory on such account.
|
(3)
|
It
shall be a condition precedent to the Insured’s right of recovery under
this rider that the Insured shall have on file signatures all persons
who
are authorized signatories on such
account.
|
(4)
|
The
Limit of Liability for the coverage provided by this rider shall
be
|
( )
it being understood, however, that such liability shall be part of
and not
in addition to the Limit of Liability stated in item 3. of the
Declarations of the attached bond.
|
(5)
|
The
Underwriter shall not be liable under the Unauthorized Signatures
Rider
for any loss on account of any instrument unless the amount of such
instrument shall be excess of
Nil
|
( )
(herein called Deductible Amount) and unless such loss on account
of such
instrument, after deducting all recoveries on account of such instrument
made prior to the payment of such loss by the Underwriter, shall
be in
excess of such Deductible Amount and then for such excess only, but
in no
event more than the amount of the attached bond, or the amount of
coverage
under the Unauthorized Signatures Rider, if the amount of such coverage
is
less than the amount of the attached
bond.
|
(6)
|
Nothing
herein contained shall be held to vary, alter, waive, or extend any
of the
terms, limitations, conditions, or provisions of the attached bond
other
than as above stated.
|
(7)
|
The
rider is effective as of 12:01 a.m. standard time
on as
specified in the bond.
|
By:
|
/s/
Xxxxx X.
Xxxxxx
|
|
Authorized
Representative
|
||