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
(continued) For the purpose of this INSURING CLAUSE, a
mechanically reproduced facsimile 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
Transfer Instruction 9. Loss resulting directly from VOICE INITIATED FUNDS
TRANSFER INSTRUCTION directed 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 Deposit 10. Loss resulting directly from the ASSURED having
credited an account of a 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 Xxxx.
________________________________________________________________________________
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 4 of 19
________________________________________________________________________________
GENERAL AGREEMENTS
Additional Companies
Included As Assured A. If more than one corporation, or INVESTMENT COMPANY,
or any combination of 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 Assured B. The ASSURED represents that all information it has
furnished in the 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
Employees - Consolidation,
Merger Or Purchase Or
Acquisition Of Assets Or
Liabilities - Notice
To Company C. If the ASSURED, other than an INVESTMENT COMPANY,
while this Bond is in force, merges or consolidates
with, or purchases or acquires assets or liabilities
of another institution, the ASSURED shall not have
the coverage afforded under this Bond for loss which
has:
(1) occurred or will occur on premises, or
(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 -
Notice To Company D. When the ASSURED learns of a change in control (other
than in an INVESTMENT 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
Attorneys' Fees E. The COMPANY will indemnify the ASSURED for court
costs and reasonable 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 XXXXXXX 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
Attorneys' Fees
(continued) (3) in the absence of 1 or 2 above, an arbitration
panel agrees, after a review of an agreed
statement of facts between the COMPANY and the
ASSURED, 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
(continued) (8) each natural person, partnership or
corporation authorized by written 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 Xxxx 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
(continued) f. FORGERY means the signing of the name of another
natural person with the 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 profitsharing 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
(continued) m. SUBSIDIARY means any organization that, at the
inception date of this Bond, 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 -
Applicable to All
Insuring Clauses 2. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
a. loss not reported to the COMPANY in writing
within sixty (60) days after 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 -
Applicable to All
Insuring Clauses
(continued) h. loss resulting from dishonest acts by any member
of the Board of Directors or Board of Trustees of
the ASSURED who is not an EMPLOYEE, acting alone
or in collusion with others;
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 -
Applicable To All Insuring
Clauses Except
Insuring Clause 1. 3. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
a. loss caused by an EMPLOYEE, provided, however,
this Section 3.a. shall not apply to loss covered
under INSURING CLAUSE 2. or 3. which results
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 -
Applicable To All Insuring
Clauses Except Insuring
Clause 1.
(continued) f. loss resulting from the failure for any reason of
a financial or depository institution, its
receiver or other liquidator to pay or deliver
funds or other PROPERTY to the ASSURED provided
further that this Section 3.f. shall not apply to
loss of PROPERTY resulting directly from robbery,
burglary, 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 -
Applicable To All
Insuring Clauses
Except Insuring
Clauses 1., 4.,
And 5. 4. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
a. loss resulting from the complete or partial
non-payment of or default on any loan whether
such loan was procured in good faith or through
trick, artifice, 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-Reduction And
Non-Accumulation
Of Liability 5. At all times prior to termination of this Bond, this
Bond shall continue in force for the limit stated in
the applicable sections of ITEM 2. of the
DECLARATIONS, 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-Reduction And
Non-Accumulation
Of Liability
(continued) d. any one casualty or event other than those
specified in a., b., or c. above,
shall be deemed to be one loss and shall be limited
to the applicable LIMIT OF LIABILITY stated in ITEM
2. 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.
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 -
Proof - Legal
Proceedings
Against Company 7. a. The ASSURED shall give the COMPANY notice thereof
at the earliest practicable moment, not to exceed
sixty (60) days after discovery of loss, in 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 -
Proof - Legal
Proceedings
Against Company
(continued) f. Proof of loss involving VOICE INITIATED FUNDS
TRANSFER INSTRUCTION shall include electronic
recordings of such instructions.
________________________________________________________________________________
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 -
Recovery 11. In the event of a payment under this Bond, the
COMPANY shall be subrogated to 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 -
Recovery
(continued) d. fourth, to the ASSURED in satisfaction of any
loss suffered by the ASSURED which was not
covered under this Bond.
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
x. xxxxxxxxx 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
(continued) If any partner, director, trustee, or officer or
supervisory employee of an 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
(continued) If this Bond is for a joint ASSURED, no charge 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
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
Chubb Group of Insurance Companies DECLARATIONS
FINANCIAL INSTITUTION INVESTMENT
00 Xxxxxxxx Xxxx Xxxx XXXXXXX XXXXX XXXXXXXXXX XXXX
Xxxxxx, Xxx Xxxxxx 00000
NAME OF ASSURED (including its Subsidiaries): Bond Number: 81906399
FIRST TRUST ADVISORS, LP
FEDERAL INSURANCE COMPANY
0000 XXXXXXXXXXX XXXX, XXXXX 000 Incorporated under the laws of Indiana
LISLE, ILL 60532 a stock insurance company herein called the COMPANY
Capital Center, 000 Xxxxx Xxxxxxxx, Xxxxx 0000
Xxxxxxxxxxxx, XX 00000-1927
________________________________________________________________________________
ITEM 1. BOND PERIOD: from 12:01 a.m. on October 9, 2004
to 12:01 a.m. on October 9, 2005
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 $ 7,375,000 $ 50,000
2. On Premises $ 7,375,000 $ 50,000
3. In Transit $ 7,375,000 $ 50,000
4. Forgery or Alteration $ 7,375,000 $ 50,000
5. Extended Forgery $ 7,375,000 $ 50,000
6. Counterfeit Money $ 7,375,000 $ 50,000
7. Threats to Person $ 7,375,000 $ 50,000
8. Computer System $ 7,375,000 $ 50,000
9. Voice Initiated Funds Transfer Instruction $ 7,375,000 $ 50,000
10. Uncollectible Items of Deposit $ 7,375,000 $ 50,000
11. Audit Expense $ 50,000 $ N/A
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE
FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
1) Name of Assured Endt 2) Deleting Valuation-Other Property Endt.
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.
/s/ Xxxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxxx
Secretary President
Countersigned by ___________________ /s/ Xxxxxx Xxxxxxxxx
____________________________
Authorized Representative
________________________________________________________________________________
ICAP Bond (5-98) - Federal
Form 17-02-1421 (Ed. 5-98) Page 1 of 1
FEDERAL INSURANCE COMPANY
Endorsement No: 1 Revised
Bond Number: 81906399
NAME OF ASSURED FIRST TRUST ADVISORS, LP ETAL
________________________________________________________________________________
NAME OF ASSURED ENDORSEMENT
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as
follows:
FIRST DEFINED PORTFOLIO FUND, LLC
First Trust Energy Portfolio
First Trust Financial Services Portfolio
First Trust Pharmaceutical Portfolio
First Trust Technology Portfolio
The Dow(sm) DART 10 Portfolio
Global Dividend Target 15 Portfolio
S&P Target 24 Portfolio
NASDAQ Target 15 Portfolio
Value Line Target 25 Portfolio
First Trust 10 Uncommon Values Portfolio
The Dow(sm) Target Dividend Portfolio
Target Managed VIP Portfolio
FIRST TRUST/FIDUCIARY ASSET MANAGEMENT COVERED CALL FUND
FIRST TRUST VALUE LINE 100 FUND
FIRST TRUST VALUE LINE DIVIDEND FUND
FIRST TRUST/VALUE LINE & IBBOTSON EQUITY ALLOCATION FUND
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND II
ENERGY INCOME AND GROWTH FUND
MACQUARIE/FIRST TRUST GLOBAL INFRASTRUCTURE/UTILITIES DIVIDEND & INCOME FUND
FIRST TRUST/ABERDEEN GLOBAL OPPORTUNITY INCOME FUND
FIRST TRUST/FIDAC MORTGAGE INCOME FUND
FIRST TRUST STRATEGIC HIGH INCOME FUND
FIRST TRUST EXCHANGE-TRADED FUND
First Trust Xxx Xxxxx Select MicroCap Index Fund
This Endorsement applies to loss discovered after 12:01 a.m. on
September 29, 2005.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: October 12, 2005 By /s/ Xxxxxx Xxxxxxxxx
____________________________
Authorized Representative
ICAP Bond
Form 17-02-0949 (Rev. 1-97) Page 1
FEDERAL INSURANCE COMPANY
Endorsement No: 2
Bond Number: 81906399
NAME OF ASSURED FIRST TRUST ADVISORS, LP
________________________________________________________________________________
DELETING VALUATION-OTHER PROPERTY ENDORSEMENT
It is agreed that this Bond is amended by deleting in its entirety the paragraph
titled Other Property in Section 9., Valuation.
This Endorsement applies to loss discovered after 12:01 a.m. on October 9, 2004.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: December 3, 2004 By /s/ Xxxxxx Xxxxxxxxx
____________________________
Authorized Representative
ICAP Bond
Form 17-02-2437 (Ed. 1-01) Page 1
FEDERAL INSURANCE COMPANY
Endorsement No: 3 Revised
Bond Number: 81906399
NAME OF ASSURED: FIRST TRUST ADVISORS, LP ETAL
________________________________________________________________________________
REVISE ITEM 2. ENDORSEMENT
It is agreed that this Bond is amended by deleting ITEM 2. in its entirety on
the DECLARATIONS and substituting the following:
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 to such INSURING
CLAUSE in this Bond 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 $ 9,025,000 $ 50,000
2. On Premises $ 9,025,000 $ 50,000
3. In Transit $ 9,025,000 $ 50,000
4. Forgery or Alteration $ 9,025,000 $ 50,000
5. Extended Forgery $ 9,025,000 $ 50,000
6. Counterfeit Money $ 9,025,000 $ 50,000
7. Threats to Person $ 9,025,000 $ 50,000
8. Computer System $ 9,025,000 $ 50,000
9. Voice Initiated Funds Transfer Instruction $ 9,025,000 $ 50,000
10. Uncollectible Items of Deposit $ 9,025,000 $ 50,000
11. Audit Expense $ 50,000 $ N/A
This Endorsement applies to loss discovered after 12:01 a.m. on
September 29, 2005.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: October 4, 2005 By /s/ Xxxxxx Xxxxxxxxx
____________________________
Authorized Representative
ICAP Bond
Form 17-02-1582 (Ed. 5-98) Page 1
Chubb & Son, div. of Federal Insurance Company
as manager of the member insurers of the
Chubb Group of Insurance Companies
POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(for policies with no terrorism exclusion or sublimit)
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002
(the "Act") effective November 26, 2002, this policy makes available to you
insurance for losses arising out of certain acts of international terrorism.
Terrorism is defined as any act certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United
States, to be an act of terrorism; to be a violent act or an act that is
dangerous to human life, property or infrastructure; to have resulted in damage
within the United States, or outside the United States in the case of an air
carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals acting on behalf of any foreign person
or foreign interest, as part of an effort to coerce the civilian population of
the United States or to influence the policy or affect the conduct of the United
States Government by coercion.
You should know that the insurance provided by your policy for losses caused by
acts of terrorism is partially reimbursed by the United States under the formula
set forth in the Act. Under this formula, the United States pays 90% of covered
terrorism losses that exceed the statutorily established deductible to be paid
by the insurance company providing the coverage. The portion of your policy's
annual premium that is attributable to insurance for such acts of terrorism is:
$ -0-.
If you have any questions about this notice, please contact your agent or
broker.
Form 10-02-1281 (Ed. 1/2003)
