EXHIBIT 3
FIDELITY BOND ALLOCATION AGREEMENT
This Fidelity Bond Allocation Agreement (the "Agreement") is entered into as
of October 31, 2007, by and among, individually and not jointly, each of the
registered investment companies listed on Schedule A, each on behalf of each of
its series, (each such registered investment company being referred to herein
individually as a "Company" and collectively as the "Companies" and each series
of a Company being referred to herein individually as a "Fund" and collectively
as the "Funds"), Columbia Management Advisors, LLC ("CMA"), UST Advisers, Inc.
("USTA"), United States Trust Company, National Association ("USTCNA"),
Columbia Management Distributors, Inc. (the "Distributor") and Columbia
Management Services, Inc. (the "Transfer Agent" and collectively with CMA,
USTA, USTCNA and the Distributor, the "Other Insureds").
The Companies and the Other Insureds (collectively, the "Insureds") are
joint Insureds under an investment company blanket bond (the "Bond") and wish
to comply with the provisions of Rule 17g-1 under the Investment Company Act of
1940, as amended (the "Act").
In consideration of the mutual covenants and agreements contained in this
Agreement, the parties agree as follows:
1. Primary Coverage. Each Company shall have "primary" (i.e., minimum
assured) coverage under the Bond with respect to each loss covered under the
Bond, in the amount shown for such Company on Schedule B hereto, that is at
least equal to the amount that each such Company would have received had it
provided and maintained a single insured bond with the minimum coverage
required by paragraph (d)(1) of Rule 17g-1 under the Act. The Other Insureds
collectively shall have "primary" (i.e., minimum assured) aggregate coverage
under the Bond with respect to each loss covered under the Bond in the amount
shown for the Other Insureds on Schedule B hereto, as such schedule may be
amended from time to time.
2. Allocation of Premiums. The premium on the Bond for any policy period
shall be allocated among the Companies and the Other Insureds on the basis of
relative risk, as determined by the insurer, in the proportions set forth on
Schedule B, subject to approval by each Company's Board of Directors or
Trustees, as applicable. Each Company shall further allocate its portion of the
premium among the Funds of such Company in the same proportion as the
percentage amount each Fund's net assets bears to the Company's net assets as
of the same date.
3. Recovery of Sufficient Coverage. Recovery by any Insured for a loss
covered under the Bond that does not exceed the limit of coverage provided by
the Bond shall be paid in full to the respective Insured in the amount of its
respective covered loss.
4. Allocation of Insufficient Coverage. Recovery of a loss covered under the
Bond sustained by more than one Insured that in the aggregate exceeds the
amount of coverage provided by the Bond shall be equitably and proportionately
shared among all such Insureds in amounts consistent with the portion of the
Bond premium allocated to each such Insured, provided that, in any event, each
such Company shall receive not less than the amount that each such Company
would have received had it provided and maintained a single insured bond with
the minimum
coverage required by paragraph (d)(1) of Rule 17g-1 under the Act. Recovery by
a Company under the Bond shall likewise be allocated among the Funds of the
Company based upon the relative premiums for such policy period borne by the
Funds incurring such loss. Any allocation in excess of a loss actually
sustained by any Insured shall be reallocated consistent with this paragraph.
5. Deductibles. No deductible under the Bond shall be required for any
Company with respect to a loss sustained by a Company resulting from larceny
and embezzlement.
6. Prior Agreements. This Agreement shall become effective as of October 31,
2007 and shall supersede any previous agreement between or among any parties
hereto relating to the allocation of premiums and coverage under any
joint-insured fidelity bond, and any such agreement is hereby terminated. If
and to the extent there is any recovery of a covered loss under the Bond
resulting from a claim arising during any period when a party hereto was
covered under the Bond but was not yet a party to this Agreement, the terms of
this Agreement shall nonetheless control as if it was in full force and effect
with respect to that party on that date.
7. Additional Parties. The parties hereby agree that any registered
investment company advised by CMA or its affiliates may become an insured under
the Bond and a party to this Agreement by executing this Agreement and by
paying its share of additional premiums, if any, resulting from adding it to
the Bond.
8. Miscellaneous. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original and all of which, taken together,
shall constitute one and the same instrument, which may be sufficiently
evidenced by one counterpart. For all purposes, signatures delivered and
exchanged by facsimile transmission shall be binding and effective to the same
extent as original signatures.
On behalf of each Company that is organized as a Massachusetts business
trust or a series thereof, notice is hereby given that a copy of the Agreement
and Declaration of Trust of such Company is on file with the Secretary of State
of The Commonwealth of Massachusetts, and that this Agreement is executed by an
officer of such Company, as an officer and not individually, on behalf of the
trustees of such Company, as trustees and not individually, and that the
obligations of this Agreement with respect to a series of such Company shall be
binding upon the assets and properties of such series only and shall not be
binding upon any of the trustees, officers, employees, agents or shareholders
of such Company or such Company individually or on the assets and properties of
any other series of such Company.
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IN WITNESS WHEREOF, each of the undersigned has executed this Agreement by
its respective officer as of the date first set forth above.
COLUMBIA FUNDS SERIES TRUST
COLUMBIA FUNDS VARIABLE INSURANCE TRUST I
COLUMBIA FUNDS MASTER INVESTMENT TRUST, LLC
BANC OF AMERICA FUNDS TRUST
COLUMBIA FUNDS SERIES TRUST I
COLUMBIA FUNDS VARIABLE INSURANCE TRUST
COLUMBIA FUNDS INSTITUTIONAL TRUST
EXCELSIOR FUNDS TRUST
EXCELSIOR FUNDS, INC.
EXCELSIOR TAX-EXEMPT FUNDS, INC.,
each on behalf of each of its series,
For each of the above,
By: /s/ J. Xxxxx Xxxxxxxxxxx
-----------------------------
Name: J. Xxxxx Xxxxxxxxxxx
Title: Senior Vice President, Chief Financial Officer and Treasurer
COLUMBIA MANAGEMENT
ADVISORS,LLC
By: /s/ Xxxxxxxxxxx X. Xxxxxx
--------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: Managing Director
UST ADVISERS, INC.
By: /s/ Xxxxxxxxxxx X. Xxxxxx
-----------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: Director and Senior Vice President
UNITED STATES TRUST COMPANY, NATIONAL ASSOCIATION
By: /s/ Xxxxx X. Xxxxx
-----------------------------
Name: Xxxxx X. Xxxxx
Title: President, Global Wealth and Investment Management
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COLUMBIA MANAGEMENT DISTRIBUTORS, INC.
By: /s/ Xxxxxxx X. Xxxxx
--------------------------
Name: Xxxxxxx X. Xxxxx
Title: President
COLUMBIA MANAGEMENT SERVICES, INC.
By: /s/ Xxxxxxx X. Xxxxx
--------------------------
Name: Xxxxxxx X. Xxxxx
Title: President
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Schedule A
Registered Investment Companies
Banc of America Funds Trust
Columbia Funds Institutional Trust
Columbia Funds Master Investment Trust, LLC
Columbia Funds Series Trust
Columbia Funds Series Trust I
Columbia Funds Variable Insurance Trust
Columbia Funds Variable Insurance Trust I
Excelsior Funds, Inc.
Excelsior Funds Trust
Excelsior Tax-Exempt Funds, Inc.
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Schedule B
Bond Period: October 31, 2007 - October 31, 2008
Bond: Bond No. 87152017B issued by ICI Mutual Insurance Company
Limit of Liability: $75,000,000
Primary Coverage Allocable to Each Insured
Amount($) Deductible($)
---------- -------------
Companies
Banc of America Funds Trust.......................... 75,000,000 0
Columbia Funds Institutional Trust................... 75,000,000 0
Columbia Funds Master Investment Trust, LLC.......... 75,000,000 0
Columbia Funds Series Trust.......................... 75,000,000 0
Columbia Funds Series Trust I........................ 75,000,000 0
Columbia Funds Variable Insurance Trust.............. 75,000,000 0
Columbia Funds Variable Insurance Trust I............ 75,000,000 0
Excelsior Funds, Inc................................. 75,000,000 0
Excelsior Funds Trust................................ 75,000,000 0
Excelsior Tax-Exempt Funds, Inc...................... 75,000,000 0
Other Insureds
Columbia Management Advisors, LLC.................... 75,000,000 250,000
Columbia Management Distributors, Inc................ 75,000,000 250,000
Columbia Management Services, Inc.................... 75,000,000 250,000
United States Trust Company, National Association.... 75,000,000 250,000
UST Advisers, Inc.................................... 75,000,000 250,000
Total
Insured Percentage Allocation of Premium(%)
------- -----------------------------------
Companies................................. 60
Other Insureds............................ 40
Total..................................... 100
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Dated: As of October 31, 2007
COLUMBIA FUNDS SERIES TRUST
COLUMBIA FUNDS VARIABLE INSURANCE TRUST I
COLUMBIA FUNDS MASTER INVESTMENT TRUST, LLC
BANC OF AMERICA FUNDS TRUST
COLUMBIA FUNDS SERIES TRUST I
COLUMBIA FUNDS VARIABLE INSURANCE TRUST
COLUMBIA FUNDS INSTITUTIONAL TRUST
EXCELSIOR FUNDS TRUST
EXCELSIOR FUNDS, INC.
EXCELSIOR TAX-EXEMPT FUNDS, INC.,
each on behalf of each of its series,
For each of the above,
By: /s/ J. Xxxxx Xxxxxxxxxxx
-----------------------------
Name: J. Xxxxx Xxxxxxxxxxx
Title: Senior Vice President, Chief Financial Officer and Treasurer
COLUMBIA MANAGEMENT ADVISORS, LLC
By: /s/ Xxxxxxxxxxx X. Xxxxxx
--------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: Managing Director
UST ADVISERS, INC.
By: /s/ Xxxxxxxxxxx X. Xxxxxx
-----------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: Director and Senior Vice
President
UNITED STATES TRUST COMPANY, NATIONAL ASSOCIATION
By: /s/ Xxxxx X. Xxxxx
-----------------------------
Name: Xxxxx X. Xxxxx
Title: President, Global Wealth and Investment Management
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COLUMBIA MANAGEMENT DISTRIBUTORS, INC.
By: /s/ Xxxxxxx X. Xxxxx
--------------------------
Name: Xxxxxxx X. Xxxxx
Title: President
COLUMBIA MANAGEMENT SERVICES, INC.
By: /s/ Xxxxxxx X. Xxxxx
--------------------------
Name: Xxxxxxx X. Xxxxx
Title: President
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