JOINT INSURANCE AGREEMENT
THIS JOINT INSURANCE AGREEMENT, dated as of October 31, 2006, is by and
among the funds comprising the Delaware Investments Family of Funds (listed on
Schedule A hereto) (the "Funds").
BACKGROUND
THIS AGREEMENT is entered into with the following background:
A. Section 17(g) of the Investment Company Act of 1940 (the "Act")
authorizes the Securities and Exchange Commission ("SEC") to require that the
officers and employees of registered management investment companies be bonded
against larceny and embezzlement, and the SEC has promulgated Rule 17g-1
requiring such coverage in specified minimum amounts.
B. The Funds have obtained and maintain the bonds and policies of insurance
providing coverage against larceny embezzlement by their officers and employees
set forth in Attachment I hereto (the "Joint Bonds").
C. The Board of Trustees/Directors of each Fund, by vote of a majority of
its members including a majority of those members of the Board of each Fund who
are not "interested persons" as defined by Section 2 (a) (19) of the Act, has
given due consideration to all factors relevant to the amount, type, form,
coverage and apportionment of recoveries and premiums on the Joint Bonds and has
approved the form, term and amount of the Joint Bonds, the portion of the
premiums payable by each Fund, and the manner in which recovery on the Joint
Bonds ("Joint Bond Proceeds"), if any, shall be shared by and among the parties
hereto as hereinafter set forth.
NOW, THEREFORE, IT IS HEREBY AGREED by and among the parties hereto as
follows:
1. ALLOCATION OF PROCEEDS
a. In the event a single party suffers a loss or losses covered under the
Joint Bonds, the party suffering such loss or losses shall be entitled to be
indemnified up to the full amount of the Joint Bond Proceeds.
b. If more than one party is damaged in a single loss for which Joint Bond
Proceeds are received, each such party shall receive that portion of the Joint
Bond Proceeds which represents the loss sustained by that party, unless the
recovery is inadequate to indemnify fully each such party. If the recovery is
inadequate to indemnify fully each such party sustaining a loss, the Joint Bond
Proceeds shall be allocated among such parties as follows:
(1) Each party sustaining a loss shall be allocated an amount equal to the
lesser of its actual loss or the minimum amount of bond coverage then
allocated to such party. Any party not fully indemnified for its insurable
losses as a result of this allocation is hereafter referred to as an
"Unindemnified Party".
(2) The remaining portion of the Joint Bond Proceeds, if any, shall be
allocated to each Unindemnified Party in the same proportion as such
party's allocation of minimum bond coverage bears to the aggregate of the
minimum bond coverage amounts for all Unindemnified Parties, provided that
no party shall receive Joint Bond Proceeds in excess of its actual
insurable losses.
2. ALLOCATION OF PREMIUMS
a. The premiums payable with respect to the Joint Bonds shall be allocated
to each of the parties hereto on an annual basis (and, in the event any
increased or additional premium is required to be paid during the year, as of
the date such increased or additional premium is due) in the same proportion as
each party's minimum amount of bond coverage as then reflected on Attachment II
shall bear to the total of such minimum coverage.
3. BOND COVERAGE REQUIREMENTS AND CHANGES
a. Each party hereto has determined that the minimum amount of fidelity
bond coverage deemed appropriate to be maintained by it is as set forth opposite
its name in Attachment II hereto. Each of the Funds represents and warrants to
each of the other parties hereto that the minimum amount of coverage required of
it under Rule 17g-1(d)(1) as of the date hereof is not more than the amount
reflected opposite its name in Attachment II hereto. Each of the Funds further
agrees that it will promptly take such steps as may be necessary, from time to
time, to increase its minimum coverage as set forth in Attachment II hereto
(and, if necessary, the face amount of the Joint Bonds) so that its minimum
coverage as therein set forth shall at no time be less than the minimum coverage
required of it under Rule 17g-1(d)(1).
b. The parties hereto may, from time to time hereafter, agree to modify
Attachment II hereto to reflect changes in allocation of premium and coverage.
All references in this Agreement to "Attachment II" shall be to such Attachment
as amended as of the relevant date on which premiums are to be allocated or
losses are sustained.
4. ADDITION OF NEW FUNDS AND OTHER ENTITIES
The parties to this Agreement contemplate that additional funds or other
related entities permitted by Rule 17g-1 ("Additional Entities") may be added to
Delaware Investments from time to time after the date of this Agreement. In the
event an Additional Entity is organized, such Entity may be included as an
additional party to this Agreement if the Board of Trustees/Directors of each of
the Funds (including an Additional Fund if it is being added) approve such
addition and establish a revised minimum allocation of bond coverage. The
inclusion of an Additional Entity as a party to this Agreement shall be
evidenced by such Entity's execution of the Addendum to this Agreement and all
references herein to the "Funds" shall include any such Additional Entities.
5. TERM OF AGREEMENT
This Agreement shall apply to the present fidelity bond coverage and any
renewals or replacements thereof and shall continue until terminated by any
party hereto upon the giving of not less than sixty days written notice to the
other parties.
6. DISPUTES
Any dispute arising under this Agreement shall be submitted to arbitration
in the City of Philadelphia, Pennsylvania under the Rules of the American
Arbitration Association, and the decision rendered therein shall be final and
binding upon the parties hereto.
7. GOVERNING LAW
This Agreement shall be governed by, and construed in accordance with the
laws of the Commonwealth of Pennsylvania, to the extent not inconsistent with
applicable provisions of the Act and the rules and regulations promulgated
thereunder by the SEC.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have caused this Agreement to be executed by a duly authorized officer
or representative as of the date first written above.
DELAWARE INVESTMENTS FAMILY OF FUNDS
on behalf of those Funds listed on Schedule A
By: /s/Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
President
[DELAWARE INVESTMENTS LOGO}
SCHEDULE A TO
JOINT INSURANCE AGREEMENT
DATED AS OF OCTOBER 31, 2006
DELAWARE INVESTMENTS FAMILY OF FUNDS
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FUND
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Delaware Group Adviser Funds
Delaware Diversified Income Fund
Delaware U.S. Growth Fund
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Delaware Group Cash Reserve
Delaware Cash Reserve Fund
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Delaware Group Equity Funds I
Delaware Balanced Fund
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Delaware Group Equity Funds II
Delaware Value Fund
Delaware Large Cap Value Fund
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Delaware Group Equity Funds III
Delaware American Services Fund
Delaware Small Cap Growth Fund
Delaware Trend Fund
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Delaware Group Equity Funds IV
Delaware Large Cap Growth Fund
Delaware Growth Opportunities Fund
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Delaware Group Equity Funds V
Delaware Dividend Income Fund
Delaware Small Cap Core Fund
Delaware Small Cap Value Fund
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Delaware Group Foundation Funds
Delaware Aggressive Allocation Portfolio
Delaware Moderate Allocation Portfolio
Delaware Conservative Allocation Portfolio
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Delaware Group Global & International Funds
Delaware Emerging Markets Fund
Delaware Global Value Fund
Delaware International Value Equity Fund
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Delaware Group Government Fund
Delaware American Government Bond Fund
Delaware Inflation Protected Bond Fund
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FUND
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Delaware Group Income Funds
Delaware Corporate Bond Fund
Delaware Delchester Fund
Delaware Extended Duration Bond Fund
Delaware High-Yield Opportunities Fund
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Delaware Group Limited-Term Government Funds
Delaware Limited-Term Government Fund
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Delaware Group State Tax-Free Income Trust
Delaware Tax-Free Pennsylvania Fund
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Delaware Group Tax Free Fund
Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund
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Delaware Group Tax Free Money Fund
Delaware Tax-Free Money Fund
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Delaware Pooled Trust
The All-Cap Growth Equity Portfolio
The Core Focus Fixed Income Portfolio
The Core Plus Fixed Income Portfolio
The Emerging Markets Portfolio
The Global Fixed Income Portfolio
The High-Yield Bond Portfolio
The Intermediate Fixed Income Portfolio
The International Equity Portfolio
The International Fixed Income Portfolio
The Labor Select International Equity Portfolio
The Large-Cap Growth Equity Portfolio
The Large-Cap Value Equity Portfolio
The Mid-Cap Growth Equity Portfolio
The Real Estate Investment Trust Portfolio
The Real Estate Investment Trust Portfolio II
The Small-Cap Growth Equity Portfolio
The Xxxx-Cap Growth Equity Portfolio
The Focus Xxxx-Cap Growth Equity Portfolio
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FUND
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Delaware VIP Trust
Delaware VIP Balanced Series
Delaware VIP Capital Reserves Series
Delaware VIP Cash Reserve Series
Delaware VIP Diversified Income Series
Delaware VIP Emerging Markets Series
Delaware VIP Global Bond Series
Delaware VIP Growth Opportunities Series
Delaware VIP High Yield Series
Delaware VIP International Value Equity Series
Delaware VIP REIT Series
Delaware VIP Select Growth Series
Delaware VIP Small Cap Value Series
Delaware VIP Trend Series
Delaware VIP U.S. Growth Series
Delaware VIP Value Series
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Voyageur Insured Funds
Delaware Tax-Free Arizona Insured Fund
Delaware Tax-Free Minnesota Insured Fund
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Voyageur Intermediate Tax Free Funds
Delaware Tax-Free Minnesota Intermediate Fund
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Delaware Investments Municipal Trust
Delaware Tax-Free Florida Insured Fund
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Voyageur Mutual Funds
Delaware Minnesota High-Yield Municipal Bond Fund
Delaware National High-Yield Municipal Bond Fund
Delaware Tax-Free California Fund
Delaware Tax-Free Idaho Fund
Delaware Tax-Free New York Fund
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Voyageur Mutual Funds II
Delaware Tax-Free Colorado Fund
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Voyageur Mutual Funds III
Delaware Select Growth Fund
Delaware Large Cap Core Fund
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Voyageur Tax Free Funds
Delaware Tax-Free Minnesota Fund
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FUND
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Delaware Investments Dividend and Income Fund, Inc.
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Delaware Investments Global Dividend and Income Fund, Inc.
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Delaware Investments Arizona Municipal Income Fund, Inc.
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Delaware Investments Colorado Insured Municipal Income Fund, Inc.
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Delaware Investments Florida Insured Municipal Income Fund
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Delaware Investments Minnesota Municipal Income Fund II, Inc.
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ATTACHMENT II TO
JOINT INSURANCE AGREEMENT
DATED AS OF OCTOBER 31, 2006
DELAWARE INVESTMENTS FAMILY OF FUNDS
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FUND MINIMUM AMOUNT OF
FIDELITY BOND COVERAGE
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Delaware Group Adviser Funds
Delaware Diversified Income Fund
Delaware U.S. Growth Fund $1,700,000
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Delaware Group Cash Reserve
Delaware Cash Reserve Fund $750,000
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Delaware Group Equity Funds I
Delaware Balanced Fund $750,000
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Delaware Group Equity Funds II
Delaware Value Fund
Delaware Large Cap Value Fund $1,500,000
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Delaware Group Equity Funds III
Delaware American Services Fund
Delaware Small Cap Growth Fund
Delaware Trend Fund $1,500,000
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Delaware Group Equity Funds IV
Delaware Large Cap Growth Fund
Delaware Growth Opportunities Fund $900,000
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Delaware Group Equity Funds V
Delaware Dividend Income Fund
Delaware Small Cap Core Fund
Delaware Small Cap Value Fund $1,250,000
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Delaware Group Foundation Funds
Delaware Aggressive Allocation
Portfolio
Delaware Moderate Allocation Portfolio
Delaware Conservative Allocation $525,000
Portfolio
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Delaware Group Global & International
Funds
Delaware Emerging Markets Fund
Delaware Global Value Fund
Delaware International Value Equity $1,500,000
Fund
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Delaware Group Government Fund
Delaware American Government Bond Fund
Delaware Inflation Protected Bond Fund $600,000
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FUND MINIMUM AMOUNT OF
FIDELITY BOND COVERAGE
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Delaware Group Income Funds
Delaware Corporate Bond Fund
Delaware Delchester Fund
Delaware Extended Duration Bond Fund
Delaware High-Yield Opportunities Fund $1,250,000
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Delaware Group Limited-Term Government Funds
Delaware Limited-Term Government Fund $750,000
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Delaware Group State Tax-Free Income Trust
Delaware Tax-Free Pennsylvania Fund $900,000
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Delaware Group Tax Free Fund
Delaware Tax-Free USA Fund
Delaware Tax-Free USA Intermediate Fund $1,000,000
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Delaware Group Tax Free Money Fund
Delaware Tax-Free Money Fund $250,000
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Delaware Pooled Trust
The All-Cap Growth Equity Portfolio
The Core Focus Fixed Income Portfolio
The Core Plus Fixed Income Portfolio
The Emerging Markets Portfolio
The Global Fixed Income Portfolio
The High-Yield Bond Portfolio
The Intermediate Fixed Income Portfolio
The International Equity Portfolio
The International Fixed Income Portfolio $2,500,000
The Labor Select International Equity Portfolio
The Large-Cap Growth Equity Portfolio
The Large-Cap Value Equity Portfolio
The Mid-Cap Growth Equity Portfolio
The Real Estate Investment Trust Portfolio
The Real Estate Investment Trust Portfolio II
The Small-Cap Growth Equity Portfolio
The Xxxx-Cap Growth Equity Portfolio
The Focus Xxxx-Cap Growth Equity Portfolio
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FUND MINIMUM AMOUNT OF
FIDELITY BOND COVERAGE
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Delaware VIP Trust
Delaware VIP Balanced Series
Delaware VIP Capital Reserves Series
Delaware VIP Cash Reserve Series
Delaware VIP Diversified Income Series
Delaware VIP Emerging Markets Series
Delaware VIP Global Bond Series
Delaware VIP Growth Opportunities Series $2,500,000
Delaware VIP High Yield Series
Delaware VIP International Value Equity Series
Delaware VIP REIT Series
Delaware VIP Select Growth Series
Delaware VIP Small Cap Value Series
Delaware VIP Trend Series
Delaware VIP U.S. Growth Series
Delaware VIP Value Series
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Voyageur Insured Funds
Delaware Tax-Free Arizona Insured Fund
Delaware Tax-Free Minnesota Insured Fund $750,000
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Voyageur Intermediate Tax Free Funds
Delaware Tax-Free Minnesota Intermediate Fund $400,000
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Delaware Investments Municipal Trust
Delaware Tax-Free Florida Insured Fund $525,000
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Voyageur Mutual Funds
Delaware Minnesota High-Yield Municipal Bond
Fund
Delaware National High-Yield Municipal Bond
Fund
Delaware Tax-Free California Fund
Delaware Tax-Free Idaho Fund
Delaware Tax-Free New York Fund $750,000
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Voyageur Mutual Funds II
Delaware Tax-Free Colorado Fund $750,000
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Voyageur Mutual Funds III
Delaware Select Growth Fund $750,000
Delaware Large Cap Core Fund
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Voyageur Tax Free Funds
Delaware Tax-Free Minnesota Fund $750,000
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FUND MINIMUM AMOUNT OF
FIDELITY BOND COVERAGE
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Delaware Investments Dividend and Income Fund, Inc.
$600,000
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Delaware Investments Global Dividend and Income
Fund, Inc. $450,000
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Delaware Investments Arizona Municipal Income Fund,
Inc. $400,000
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Delaware Investments Colorado Insured Municipal
Income Fund, Inc. $525,000
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Delaware Investments Florida Insured Municipal
Income Fund $400,000
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Delaware Investments Minnesota Municipal Income Fund
II, Inc. $750,000
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Total Minimum $27,925,000
Joint Fidelity Bond =
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