·
|
A
copy of the Joint Fidelity Bond of the
Funds;
|
·
|
A
copy of the Joint Insured Bond Agreement among the
Funds;
|
·
|
A
copy of the resolutions of the Board of Directors/Trustees (the "Board")
of each Fund (except for BlackRock Fixed Income Value Opportunities)
approving the Joint Fidelity Bond, adopted by a majority of the members of
the Board who are not "interested persons" as defined by section 2(a)(19)
of the 1940 Act on September 11,
2008;
|
·
|
A
copy of the resolutions of the Board of BlackRock Fixed Income Value
Opportunities approving the Joint Fidelity Bond, adopted by a majority of
the members of the Board who are not "interested persons" as defined by
section 2(a)(19) of the 1940 Act on December 5, 2008;
and
|
·
|
A
statement showing the amount of the single insured bond which each Fund
would have provided and maintained had it not been named as an insured
under the Joint Fidelity Bond.
|
1
|
BlackRock
Dividend Achievers Trust
|
2
|
BlackRock
EcoSolutions Investment Trust
|
3
|
BlackRock
Enhanced Capital and Income Fund, Inc.
|
4
|
BlackRock
Enhanced Dividend Achievers Trust
|
5
|
BlackRock
Energy and Resources Trust
|
6
|
BlackRock
Global Opportunities Equity Trust
|
7
|
BlackRock
Health Sciences Trust
|
8
|
BlackRock
International Growth and Income Trust
|
9
|
BlackRock
Credit Allocation Income Trust I, Inc. (f/k/a
BlackRock Preferred and Corporate Income Strategies Fund,
Inc.)
|
10
|
BlackRock
Credit Allocation Income Trust IV (f/k/a
BlackRock Preferred and Equity Advantage Trust)
|
11
|
BlackRock
Credit Allocation Income Trust II, Inc. (f/k/a
BlackRock Preferred Income Strategies Fund,
Inc.)
|
12
|
BlackRock
Credit Allocation Income Trust III (f/k/a
BlackRock Preferred Opportunity Trust)
|
13
|
BlackRock
Real Asset Equity Trust
|
14
|
BlackRock
S&P Quality Rankings Global Equity Managed Trust
|
15
|
BlackRock
Strategic Dividend Achievers Trust
|
16
|
BlackRock
Apex Municipal Fund, Inc.
|
17
|
BlackRock
California Insured Municipal Income Trust
|
18
|
BlackRock
California Investment Quality Municipal Trust, Inc.
|
19
|
BlackRock
California Municipal 2018 Term Trust
|
20
|
BlackRock
California Municipal Bond Trust
|
21
|
BlackRock
California Municipal Income Trust
|
22
|
BlackRock
California Municipal Income Trust II
|
23
|
BlackRock
Insured Municipal Income Investment Trust
|
24
|
BlackRock
Investment Quality Municipal Income Trust
|
25
|
BlackRock
Florida Municipal 2020 Term Trust
|
26
|
BlackRock
Municipal Bond Investment Trust
|
27
|
BlackRock
Municipal Income Investment Trust
|
28
|
BlackRock
Insured Municipal Income Trust
|
29
|
BlackRock
Insured Municipal Term Trust, Inc.
|
30
|
BlackRock
Investment Quality Municipal Trust, Inc.
|
31
|
BlackRock
Long-Term Municipal Advantage Trust
|
32
|
BlackRock
Maryland Municipal Bond Trust
|
33
|
Massachusetts
Health & Education Tax Exempt Trust
|
34
|
BlackRock
Muni Intermediate Duration Fund, Inc.
|
35
|
BlackRock
Muni New York Intermediate Duration Fund, Inc.
|
36
|
BlackRock
MuniAssets Fund, Inc.
|
37
|
BlackRock
Municipal 2018 Term Trust
|
38
|
BlackRock
Municipal 2020 Term Trust
|
39
|
BlackRock
Municipal Bond Trust
|
40
|
BlackRock
Municipal Income Trust
|
41
|
BlackRock
Municipal Income Trust II
|
42
|
BlackRock
MuniEnhanced Fund, Inc.
|
43
|
BlackRock
MuniHoldings California Insured Fund, Inc.
|
44
|
BlackRock
MuniHoldings Insured Investment Fund
|
45
|
BlackRock
MuniHoldings Fund II, Inc.
|
46
|
BlackRock
MuniHoldings Fund, Inc.
|
47
|
BlackRock
MuniHoldings Insured Fund II, Inc.
|
48
|
BlackRock
MuniHoldings Insured Fund, Inc.
|
49
|
BlackRock
MuniHoldings New Jersey Insured Fund, Inc.
|
50
|
BlackRock
MuniHoldings New York Insured Fund, Inc.
|
51
|
BlackRock
MuniVest Fund II, Inc.
|
52
|
BlackRock
MuniVest Fund, Inc.
|
53
|
BlackRock
MuniYield Arizona Fund, Inc.
|
54
|
BlackRock
MuniYield California Fund, Inc.
|
55
|
BlackRock
MuniYield California Insured Fund, Inc.
|
56
|
BlackRock
MuniYield Investment Fund
|
57
|
BlackRock
MuniYield Insured Investment Fund
|
58
|
BlackRock
MuniYield Fund, Inc.
|
59
|
BlackRock
MuniYield Insured Fund, Inc.
|
60
|
BlackRock
MuniYield Michigan Insured Fund II, Inc.
|
61
|
BlackRock
MuniYield Michigan Insured Fund, Inc.
|
62
|
BlackRock
MuniYield New Jersey Fund, Inc.
|
63
|
BlackRock
MuniYield New Jersey Insured Fund, Inc.
|
64
|
BlackRock
MuniYield New York Insured Fund, Inc.
|
65
|
BlackRock
MuniYield Pennsylvania Insured Fund
|
66
|
BlackRock
MuniYield Quality Fund II, Inc.
|
67
|
BlackRock
MuniYield Quality Fund, Inc.
|
68
|
BlackRock
New Jersey Investment Quality Municipal Trust, Inc.
|
69
|
BlackRock
New Jersey Municipal Bond Trust
|
70
|
BlackRock
New Jersey Municipal Income Trust
|
71
|
BlackRock
New York Insured Municipal Income Trust
|
72
|
BlackRock
New York Investment Quality Municipal Trust, Inc.
|
73
|
BlackRock
New York Municipal 2018 Term Trust
|
74
|
BlackRock
New York Municipal Bond Trust
|
75
|
BlackRock
New York Municipal Income Trust
|
76
|
BlackRock
New York Municipal Income Trust II
|
77
|
BlackRock
Pennsylvania Strategic Municipal Trust
|
78
|
BlackRock
Strategic Municipal Trust
|
79
|
BlackRock
Virginia Municipal Bond Trust
|
80
|
BlackRock
Debt Strategies Fund, Inc.
|
81
|
BlackRock
Diversified Income Strategies Fund, Inc.
|
82
|
BlackRock
Floating Rate Income Strategies Fund, Inc.
|
83
|
BlackRock
Floating Rate Income Strategies Fund II, Inc.
|
84
|
Master
Senior Floating Rate LLC
|
85
|
BlackRock
Senior Floating Rate Fund, Inc.
|
86
|
BlackRock
Senior Floating Rate Fund II, Inc.
|
87
|
BlackRock
Senior High Income Fund, Inc.
|
88
|
BlackRock
Core Bond Trust
|
89
|
BlackRock
Floating Rate Income Trust
|
90
|
BlackRock
High Income Shares
|
91
|
BlackRock
High Yield Trust
|
92
|
BlackRock
Income Opportunity Trust, Inc.
|
93
|
BlackRock
Income Trust, Inc.
|
94
|
BlackRock
Limited Duration Income Trust
|
95
|
BlackRock
Strategic Bond Trust
|
96
|
BlackRock
Corporate High Yield Fund, Inc.
|
97
|
BlackRock
Corporate High Yield Fund III, Inc.
|
98
|
BlackRock
Corporate High Yield Fund V, Inc.
|
99
|
BlackRock
Corporate High Yield Fund VI, Inc.
|
100
|
BlackRock
Enhanced Government Fund, Inc.
|
101
|
BlackRock
Defined Opportunity Credit Trust
|
102
|
BlackRock
Fixed Income Value
Opportunities
|
Chubb Group of
Insurance Companies
|
DECLARATIONS
|
|||||||||||||||||
FINANCIAL INSTITUTION
INVESTMENT
|
||||||||||||||||||
15 Mountain View Road, Warren, New
Jersey 07059
|
COMPANY ASSET PROTECTION
BOND
|
|||||||||||||||||
NAME OF ASSURED (including its
Subsidiaries):
|
Bond Number:
82126651
|
|||||||||||||||||
BLACKROCK INCOME
TRUST
|
||||||||||||||||||
VIGILANT
INSURANCE COMPANY
|
||||||||||||||||||
40 E 52ND
STREET
|
Incorporated under the laws of New
York
|
|||||||||||||||||
a stock insurance company herein
called the COMPANY
|
||||||||||||||||||
NEW YORK, NY
10022
|
||||||||||||||||||
55 Water Street, New York NY
10041-2899
|
||||||||||||||||||
ITEM
1.
|
BOND
PERIOD:
|
from
|
12:01 a.m.
on
|
November 1,
2008
|
||||||||||||||
to
|
12:01 a.m.
on
|
November 1,
2009
|
||||||||||||||||
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
|
$
85,000,000
|
$ 0
|
|||||||||||||||
2.
|
On
Premises
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
3.
|
In Transit
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
4.
|
Forgery or
Alteration
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
5.
|
Extended
Forgery
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
6.
|
Counterfeit
Money
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
7.
|
Threats to
Person
|
$ Not
Covered
|
$ N/A
|
|||||||||||||||
8.
|
Computer
System
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
9.
|
Voice Initiated Funds Transfer
Instruction
|
$
85,000,000
|
$
25,000
|
|||||||||||||||
10.
|
Uncollectible Items of
Deposit
|
$ 50,000
|
$ 5,000
|
|||||||||||||||
11.
|
Audit
Expense
|
$ 50,000
|
$ 5,000
|
|||||||||||||||
12.
|
Telefacsimile Transfer
Fund
|
$
85,000,000
|
$ 25,000 | |||||||||||||||
ITEM
3.
|
THE LIABILITY OF THE COMPANY IS
ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
|
|||||||||||||||||
ENDORSEMENTS EXECUTED
SIMULTANEOUSLY HEREWITH:
|
||||||||||||||||||
Endorsements 1 -
7
|
||||||||||||||||||
IN
WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed
by its authorized officers, but it shall not
|
||||||||||||||||||
be valid unless also signed by an
authorized representative of the Company.
|
ICAP Bond (5-98) -
Vigilant
|
|
Form 17-02-1422 (Ed.
5-98)
|
Page 1 of
1
|
The COMPANY, in consideration of
payment of the required premium, and in reliance
|
||||||||
on the APPLICATION and all other
statements made and information furnished to the
|
||||||||
COMPANY by the ASSURED, and
subject to the DECLARATIONS made a part of this
|
||||||||
Bond and to all other terms and
conditions of this Bond, agrees to pay the
ASSURED
|
||||||||
for:
|
||||||||
Insuring
Clauses
|
||||||||
Employee
|
1.
|
Loss resulting directly from
Larceny
or Embezzlement
committed by
any
|
||||||
Employee, alone or in collusion with
others.
|
||||||||
On
Premises
|
2.
|
Loss of Property
resulting directly
from robbery, burglary, false pretenses,
|
||||||
common law or statutory larceny,
misplacement, mysterious unexplainable
|
||||||||
disappearance, damage,
destruction or removal, from the possession, custody
or
|
||||||||
control of the ASSURED, while
such Property
is lodged or
deposited at premises
|
||||||||
located
anywhere.
|
||||||||
In
Transit
|
3.
|
Loss of Property
resulting directly
from common law or statutory larceny,
|
||||||
misplacement, mysterious
unexplainable disappearance, damage or
destruction,
|
||||||||
while the Property
is in transit
anywhere:
|
||||||||
a.
|
in an armored motor vehicle,
including loading and unloading thereof,
|
|||||||
b.
|
in the custody of a natural
person acting as a messenger of the ASSURED,
|
|||||||
or
|
||||||||
c.
|
in the custody of a Transportation
Company and being
transported in a
|
|||||||
conveyance other than an armored
motor vehicle provided, however, that
|
||||||||
covered Property
transported in such
manner is limited to the following:
|
||||||||
(1)
|
written
records,
|
|||||||
(2)
|
securities issued in registered
form, which are not endorsed or are
|
|||||||
restrictively endorsed,
or
|
||||||||
(3)
|
negotiable instruments not
payable to bearer, which are not endorsed
|
|||||||
or are restrictively
endorsed.
|
||||||||
Coverage under this INSURING
CLAUSE begins immediately on the receipt of
|
||||||||
such Property
by the natural
person or Transportation
Company and
ends
|
||||||||
immediately on delivery to the
premises of the addressee or to any
representative
|
||||||||
of the addressee located
anywhere.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 1 of
19
|
Insuring
Clauses
|
||||||||
(continued)
|
||||||||
Forgery Or
Alteration
|
4.
|
Loss resulting directly
from:
|
||||||
a.
|
Forgery
on, or fraudulent
material alteration of, any bills of exchange,
|
|||||||
checks, drafts, acceptances,
certificates of deposits, promissory notes, due
|
||||||||
bills, money orders, orders upon
public treasuries, letters of credit, other
|
||||||||
written promises, orders or
directions to pay sums certain in money, or
|
||||||||
receipts for the withdrawal of
Property, or
|
||||||||
b.
|
transferring, paying or
delivering any funds or other Property, or
establishing
|
|||||||
any credit or giving any value in
reliance on any written instructions, advices
|
||||||||
or applications directed to the
ASSURED authorizing or acknowledging the
|
||||||||
transfer, payment, delivery or
receipt of funds or other Property, which
|
||||||||
instructions, advices or
applications fraudulently purport to bear the
|
||||||||
handwritten signature of any
customer of the ASSURED, or shareholder or
|
||||||||
subscriber to shares of an
Investment
Company, or of any
financial
|
||||||||
institution or Employee
but which
instructions, advices or applications either
|
||||||||
bear a Forgery
or have been
fraudulently materially altered without the
|
||||||||
knowledge and consent of such
customer, shareholder, subscriber, financial
|
||||||||
institution or Employee;
|
||||||||
excluding, however, under this
INSURING CLAUSE any loss covered under
|
||||||||
INSURING CLAUSE 5. of this Bond,
whether or not coverage for INSURING
|
||||||||
CLAUSE 5. is provided for in the
DECLARATIONS of this Bond.
|
||||||||
For the purpose of this INSURING
CLAUSE, a mechanically reproduced facsimile
|
||||||||
signature is treated the same as
a handwritten signature.
|
||||||||
Extended
Forgery
|
5.
|
Loss resulting directly from the
ASSURED having, in good faith, and in the
|
||||||
ordinary course of business, for
its own account or the account of others in any
|
||||||||
capacity:
|
||||||||
a.
|
acquired, accepted or received,
accepted or received, sold or delivered, or
|
|||||||
given value, extended credit or
assumed liability, in reliance on any original
|
||||||||
Securities,
documents or other written instruments which
prove to:
|
||||||||
(1)
|
bear a Forgery
or a fraudulently
material alteration,
|
|||||||
(2)
|
have been lost or stolen,
or
|
|||||||
(3)
|
be
Counterfeit,
or
|
|||||||
b.
|
guaranteed in writing or
witnessed any signatures on any transfer,
|
|||||||
assignment, bill of sale, power
of attorney, guarantee, endorsement or other
|
||||||||
obligation upon or in connection
with any Securities,
documents or other
|
||||||||
written
instruments.
|
||||||||
Actual physical possession, and
continued actual physical possession if taken as
|
||||||||
collateral,
of such Securities,
documents or other written instruments by
an
|
||||||||
Employee,
Custodian, or a
Federal or State chartered deposit institution of
the
|
||||||||
ASSURED is a condition precedent
to the ASSURED having relied on such items.
|
||||||||
Release or return of such
collateral is an acknowledgment by the ASSURED that
it
|
||||||||
no longer relies on such
collateral.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 2 of
19
|
Insuring
Clauses
|
||||||||
Extended
Forgery
|
For the purpose of this INSURING
CLAUSE, a mechanically reproduced facsimile
|
|||||||
(continued)
|
signature is treated the same as
a handwritten signature.
|
|||||||
Counterfeit
Money
|
6.
|
Loss resulting directly from the
receipt by the ASSURED in good faith of any
|
||||||
Counterfeit
money.
|
||||||||
Threats To
Person
|
7.
|
Loss resulting directly from
surrender of Property
away from an office
of the
|
||||||
ASSURED as a result of a threat
communicated to the ASSURED to do bodily
|
||||||||
harm to an Employee
as defined in
Section 1.e. (1), (2) and (5), a Relative
or
|
||||||||
invitee of such Employee, or a resident of the household
of such Employee, who
|
||||||||
is, or allegedly is, being held
captive provided, however, that prior to the
surrender
|
||||||||
of such Property:
|
||||||||
a.
|
the Employee
who receives the
threat has made a reasonable effort to
|
|||||||
notify an officer of the ASSURED
who is not involved in such threat, and
|
||||||||
b.
|
the ASSURED has made a reasonable
effort to notify the Federal Bureau of
|
|||||||
Investigation and local law
enforcement authorities concerning such threat.
|
||||||||
It is agreed that for purposes of
this INSURING CLAUSE, any Employee
of
the
|
||||||||
ASSURED, as set forth in the
preceding paragraph, shall be deemed to be an
|
||||||||
ASSURED hereunder, but only with
respect to the surrender of money, securities
|
||||||||
and other tangible personal
property in which such Employee
has a legal
or
|
||||||||
equitable
interest.
|
||||||||
Computer
System
|
8.
|
Loss resulting directly from
fraudulent:
|
||||||
a.
|
entries of data into,
or
|
|||||||
b.
|
changes of data elements or
programs within,
|
|||||||
a Computer
System, provided the
fraudulent entry or change causes:
|
||||||||
(1)
|
funds or other property to be
transferred, paid or delivered,
|
|||||||
(2)
|
an account of the ASSURED or of
its customer to be added, deleted,
|
|||||||
debited or credited,
or
|
||||||||
(3)
|
an unauthorized account or a
fictitious account to be debited or
|
|||||||
credited.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 3 of
19
|
Insuring
Clauses
|
||||||
(continued)
|
||||||
Voice
Initiated Funds
|
9.
|
Loss
resulting directly from Voice
Initiated Funds Transfer Instruction directed
|
||||
Transfer
Instruction
|
to the ASSURED authorizing the
transfer of dividends or redemption proceeds of
|
|||||
Investment
Company shares from
a Customer's
account, provided
such Voice
|
||||||
Initiated
Funds Transfer Instruction was:
|
||||||
a.
|
received at the ASSURED'S offices
by those Employees
of the
ASSURED
|
|||||
specifically authorized to
receive the Voice
Initiated Funds Transfer
|
||||||
Instruction,
|
||||||
b.
|
made by a person purporting to be
a Customer, and
|
|||||
c.
|
made by said person for the
purpose of causing the ASSURED or Customer
|
|||||
to sustain a loss or making an
improper personal financial gain for such
|
||||||
person or any other
person.
|
||||||
In order for coverage to apply
under this INSURING CLAUSE, all Voice
Initiated
|
||||||
Funds
Transfer Instructions must be received and processed in
accordance with
|
||||||
the Designated Procedures
outlined in the APPLICATION furnished to the
|
||||||
COMPANY.
|
||||||
Uncollectible
Items of
|
10.
|
Loss resulting directly from the
ASSURED having credited an account of a
|
||||
Deposit
|
customer, shareholder or
subscriber on the faith of any Items
of Deposit which
|
|||||
prove to be uncollectible,
provided that the crediting of such account
causes:
|
||||||
a.
|
redemptions or withdrawals to be
permitted,
|
|||||
b.
|
shares to be issued,
or
|
|||||
c.
|
dividends to be
paid,
|
|||||
from an account of an
Investment
Company.
|
||||||
In order for coverage to apply
under this INSURING CLAUSE, the ASSURED
|
||||||
must hold Items
of Deposit for the
minimum number of days stated in the
|
||||||
APPLICATION before permitting any
redemptions or withdrawals, issuing any
|
||||||
shares or paying any dividends
with respect to such Items
of Deposit.
|
||||||
Items
of Deposit shall not
be deemed uncollectible until the ASSURED'S
|
||||||
standard collection procedures
have failed.
|
||||||
Audit
Expense
|
11.
|
Expense incurred by the ASSURED
for that part of the cost of audits or
|
||||
examinations required by any
governmental regulatory authority or
self-regulatory
|
||||||
organization to be conducted by
such authority, organization or their appointee
by
|
||||||
reason of the discovery of loss
sustained by the ASSURED and covered by this
|
||||||
Bond.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 4 of
19
|
General
Agreements
|
||||||
Additional
Companies
|
A.
|
If more than one corporation, or
Investment
Company, or any
combination of
|
||||
Included As
Assured
|
them is included as the ASSURED
herein:
|
|||||
(1)
|
The total liability of the
COMPANY under this Bond for loss or losses
|
|||||
sustained by any one or more or
all of them shall not exceed the limit for
|
||||||
which the COMPANY would be liable
under this Bond if all such loss were
|
||||||
sustained by any one of
them.
|
||||||
(2)
|
Only the first named ASSURED
shall be deemed to be the sole agent of the
|
|||||
others for all purposes under
this Bond, including but not limited to the
giving
|
||||||
or receiving of any notice or
proof required to be given and for the purpose
of
|
||||||
effecting or accepting any
amendments to or termination of this Bond. The
|
||||||
COMPANY shall furnish each
Investment
Company with a copy
of the
|
||||||
Bond and with any amendment
thereto, together with a copy of each formal
|
||||||
filing of claim by any other
named ASSURED and notification of the terms of
|
||||||
the settlement of each such claim
prior to the execution of such settlement.
|
||||||
(3)
|
The COMPANY shall not be
responsible for the proper application of any
|
|||||
payment made hereunder to the
first named ASSURED.
|
||||||
(4)
|
Knowledge possessed or discovery
made by any partner, director, trustee,
|
|||||
officer or supervisory employee
of any ASSURED shall constitute knowledge
|
||||||
or discovery by all the ASSUREDS
for the purposes of this Bond.
|
||||||
(5)
|
If the first named ASSURED ceases
for any reason to be covered under this
|
|||||
Bond, then the ASSURED next named
on the APPLICATION shall thereafter
|
||||||
be considered as the first named
ASSURED for the purposes of this Bond.
|
||||||
Representation
Made By
|
B.
|
The ASSURED represents that all
information it has furnished in the
|
||||
Assured
|
APPLICATION for this Bond or
otherwise is complete, true and correct. Such
|
|||||
APPLICATION and other information
constitute part of this Bond.
|
||||||
The ASSURED must promptly notify
the COMPANY of any change in any fact or
|
||||||
circumstance which materially
affects the risk assumed by the COMPANY under
|
||||||
this
Bond.
|
||||||
Any intentional
misrepresentation, omission, concealment or incorrect statement
of
|
||||||
a material fact, in the
APPLICATION or otherwise, shall be grounds for recision
of
|
||||||
this
Bond.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 5 of
19
|
General
Agreements
|
||||||
(continued)
|
||||||
Additional
Offices Or
|
C.
|
If the ASSURED, other than an
Investment
Company, while this
Bond is in force,
|
||||
Employees -
Consolidation,
|
merges or consolidates with, or
purchases or acquires assets or liabilities of
|
|||||
Merger Or
Purchase Or
|
another institution, the ASSURED
shall not have the coverage afforded under this
|
|||||
Acquisition
Of Assets Or
|
Bond for loss which
has:
|
|||||
Liabilities -
Notice To
|
(1)
|
occurred or will occur on
premises, or
|
||||
Company
|
||||||
(2)
|
been caused or will be caused by
an employee, or
|
|||||
(3)
|
arisen or will arise out of the
assets or liabilities,
|
|||||
of such institution, unless the
ASSURED:
|
||||||
a.
|
gives the COMPANY written notice
of the proposed consolidation, merger or
|
|||||
purchase or acquisition of assets
or liabilities prior to the proposed effective
|
||||||
date of such action,
and
|
||||||
b.
|
obtains the written consent of
the COMPANY to extend some or all of the
|
|||||
coverage provided by this Bond to
such additional exposure, and
|
||||||
c.
|
on obtaining such consent, pays
to the COMPANY an additional premium.
|
|||||
Change Of
Control -
|
D.
|
When the ASSURED learns of a
change in control (other than in an Investment
|
||||
Notice To
Company
|
Company), as set forth in Section 2(a)
(9) of the Investment Company Act of
|
|||||
1940,
|
the ASSURED shall within sixty
(60) days give written notice to the
|
|||||
COMPANY setting
forth:
|
||||||
(1)
|
the names of the transferors and
transferees (or the names of the beneficial
|
|||||
owners if the voting securities
are registered in another name),
|
||||||
(2)
|
the total number of voting
securities owned by the transferors and the
|
|||||
transferees (or the beneficial
owners), both immediately before and after the
|
||||||
transfer,
and
|
||||||
(3)
|
the total number of outstanding
voting securities.
|
|||||
Failure to give the required
notice shall result in termination of coverage for
any
|
||||||
loss involving a transferee, to
be effective on the date of such change in
control.
|
||||||
Court Costs
And
|
E.
|
The COMPANY will indemnify the
ASSURED for court costs and reasonable
|
||||
Attorneys’
Fees
|
attorneys' fees incurred and paid
by the ASSURED in defense, whether or not
|
|||||
successful, whether or not fully
litigated on the merits and whether or not
settled,
|
||||||
of any claim, suit or legal
proceeding with respect to which the ASSURED
would
|
||||||
be entitled to recovery under
this Bond. However, with respect to INSURING
|
||||||
CLAUSE 1., this Section shall
only apply in the event that:
|
||||||
(1)
|
an
Employee
admits
to being guilty of Larceny or
Embezzlement,
|
|||||
(2)
|
an Employee
is adjudicated to be
guilty of Larceny
or Embezzlement,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 6 of
19
|
General
Agreements
|
||||
Court Costs
And
|
(3)
|
in the absence of 1 or 2 above,
an arbitration panel agrees, after a review of
|
||
Attorneys’
Fees
|
an agreed statement of facts
between the COMPANY and the ASSURED,
|
|||
(continued)
|
that an Employee
would be found
guilty of Larceny
or Embezzlement if
|
|||
such Employee
were
prosecuted.
|
||||
The ASSURED shall promptly give
notice to the COMPANY of any such suit or
|
||||
legal proceeding and at the
request of the COMPANY shall furnish copies of
all
|
||||
pleadings and pertinent papers to
the COMPANY. The COMPANY may, at its
|
||||
sole option, elect to conduct the
defense of all or part of such legal proceeding.
|
||||
The defense by the COMPANY shall
be in the name of the ASSURED through
|
||||
attorneys selected by the
COMPANY. The ASSURED shall provide all
reasonable
|
||||
information and assistance as
required by the COMPANY for such defense.
|
||||
If the COMPANY declines to defend
the ASSURED, no settlement without the
|
||||
prior written consent of the
COMPANY nor judgment against the ASSURED shall
|
||||
determine the existence, extent
or amount of coverage under this Bond.
|
||||
If the amount demanded in any
such suit or legal proceeding is within the
|
||||
DEDUCTIBLE AMOUNT, if any, the
COMPANY shall have no liability for court
|
||||
costs and attorney's fees
incurred in defending all or part of such suit or
legal
|
||||
proceeding.
|
||||
If the amount demanded in any
such suit or legal proceeding is in excess of
the
|
||||
LIMIT OF LIABILITY stated in ITEM
2. of the DECLARATIONS for the applicable
|
||||
INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees
|
||||
incurred in defending all or part
of such suit or legal proceedings is limited to
the
|
||||
proportion of such court costs
and attorney's fees incurred that the LIMIT OF
|
||||
LIABILITY stated in ITEM 2. of
the DECLARATIONS for the applicable INSURING
|
||||
CLAUSE bears to the total of the
amount demanded in such suit or legal
|
||||
proceeding.
|
||||
If the amount demanded is any
such suit or legal proceeding is in excess of
the
|
||||
DEDUCTIBLE AMOUNT, if any, but
within the LIMIT OF LIABILITY stated in ITEM
|
||||
2.
|
of the DECLARATIONS for the
applicable INSURING CLAUSE, the
|
|||
COMPANY'S liability for court
costs and attorney's fees incurred in defending all
or
|
||||
part of such suit or legal
proceedings shall be limited to the proportion of
such
|
||||
court costs or attorney's fees
that the amount demanded that would be payable
|
||||
under this Bond after application
of the DEDUCTIBLE AMOUNT, bears to the total
|
||||
amount
demanded.
|
||||
Amounts paid by the COMPANY for
court costs and attorneys' fees shall be in
|
||||
addition to the LIMIT OF
LIABILITY stated in ITEM 2. of the
DECLARATIONS.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 7 of
19
|
Conditions
And
|
||||||||
Limitations
|
||||||||
Definitions
|
1.
|
As used in this
Bond:
|
||||||
a.
|
Computer
System means a
computer and all input, output, processing,
|
|||||||
storage, off-line media
libraries, and communication facilities which
are
|
||||||||
connected to the computer and
which are under the control and supervision
|
||||||||
of the operating system(s) or
application(s) software used by the ASSURED.
|
||||||||
b.
|
Counterfeit
means an imitation
of an actual valid original which is intended
|
|||||||
to deceive and be taken as the
original.
|
||||||||
c.
|
Custodian
means the
institution designated by an Investment
Company to
|
|||||||
maintain possession and control
of its assets.
|
||||||||
d.
|
Customer
means an individual,
corporate, partnership, trust customer,
|
|||||||
shareholder or subscriber of an
Investment
Company which has a
written
|
||||||||
agreement with the ASSURED for
Voice
Initiated Funds Transfer
|
||||||||
Instruction.
|
||||||||
e.
|
Employee
means:
|
|||||||
(1)
|
an officer of the
ASSURED,
|
|||||||
(2)
|
a natural person while in the
regular service of the ASSURED at any of
|
|||||||
the ASSURED'S premises and
compensated directly by the ASSURED
|
||||||||
through its payroll system and
subject to the United States Internal
|
||||||||
Revenue Service Form W-2 or
equivalent income reporting plans of
|
||||||||
other countries, and whom the
ASSURED has the right to control and
|
||||||||
direct both as to the result to
be accomplished and details and means
|
||||||||
by which such result is
accomplished in the performance of such
|
||||||||
service,
|
||||||||
(3)
|
a guest student pursuing studies
or performing duties in any of the
|
|||||||
ASSURED'S
premises,
|
||||||||
(4)
|
an attorney retained by the
ASSURED and an employee of such
|
|||||||
attorney while either is
performing legal services for the ASSURED,
|
||||||||
(5)
|
a natural person provided by an
employment contractor to perform
|
|||||||
employee duties for the ASSURED
under the ASSURED'S supervision
|
||||||||
at any of the ASSURED'S
premises,
|
||||||||
(6)
|
an employee of an institution
merged or consolidated with the
|
|||||||
ASSURED prior to the effective
date of this Bond,
|
||||||||
(7)
|
a director or trustee of the
ASSURED, but only while performing acts
|
|||||||
within the scope of the customary
and usual duties of any officer or
|
||||||||
other employee of the ASSURED or
while acting as a member of any
|
||||||||
committee duly elected or
appointed to examine or audit or have
|
||||||||
custody of or access to
Property
of the ASSURED,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 8 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
Definitions
|
(8)
|
each natural person, partnership
or corporation authorized by written
|
||||
(continued)
|
agreement with the ASSURED to
perform services as electronic data
|
|||||
processor of checks or other
accounting records related to such checks but
|
||||||
only while such person,
partnership or corporation is actually
performing
|
||||||
such services and
not:
|
||||||
a.
|
creating, preparing, modifying or
maintaining the ASSURED'S
|
|||||
computer software or programs,
or
|
||||||
b.
|
acting as transfer agent or in
any other agency capacity in issuing
|
|||||
checks, drafts or securities for
the ASSURED,
|
||||||
(9)
|
any partner, officer or employee
of an investment advisor, an underwriter
|
|||||
(distributor), a transfer agent
or shareholder accounting recordkeeper, or an
|
||||||
administrator, for an
Investment
Company while
performing acts coming
|
||||||
within the scope of the customary
and usual duties of an officer or employee
|
||||||
of an Investment
Company or acting as
a member of any committee duly
|
||||||
elected or appointed to examine,
audit or have custody of or access to
|
||||||
Property
of
an Investment
Company.
|
||||||
The term Employee
shall not include
any partner, officer or employee of a
|
||||||
transfer agent, shareholder
accounting recordkeeper or administrator:
|
||||||
a.
|
which is not an "affiliated
person" (as defined in Section 2(a) of the
|
|||||
Investment Company Act of 1940)
of an Investment
Company or
of
|
||||||
the investment advisor or
underwriter (distributor) of such Investment
|
||||||
Company,
or
|
||||||
b.
|
which is a "bank" (as defined in
Section 2(a) of the Investment
|
|||||
Company Act of
1940).
|
||||||
This Bond does not afford
coverage in favor of the employers of
|
||||||
persons as set forth in e. (4),
(5) and (8) above, and upon payment to
|
||||||
the ASSURED by the COMPANY
resulting directly from Larceny
or
|
||||||
Embezzlement
committed by any of
the partners, officers or
|
||||||
employees of such employers,
whether acting alone or in collusion with
|
||||||
others, an assignment of such of
the ASSURED'S rights and causes of
|
||||||
action as it may have against
such employers by reason of such acts
|
||||||
so committed shall, to the extent
of such payment, be given by the
|
||||||
ASSURED to the COMPANY, and the
ASSURED shall execute all
|
||||||
papers necessary to secure to the
COMPANY the rights provided for
|
||||||
herein.
|
||||||
Each employer of persons as set
forth in e.(4), (5) and (8) above and the
|
||||||
partners, officers and other
employees of such employers shall collectively
|
||||||
be deemed to be one person for
all the purposes of this Bond; excepting,
|
||||||
however, the fifth paragraph of
Section 13.
|
||||||
Independent contractors not
specified in e.(4), (5) or (8) above,
|
||||||
intermediaries, agents, brokers
or other representatives of the same general
|
||||||
character shall not be considered
Employees.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 9 of
19
|
Conditions
And
|
||||
Limitations
|
||||
Definitions
|
f.
|
Forgery
means the signing of
the name of another natural person with the
|
||
(continued)
|
intent to deceive but does not
mean a signature which consists in whole or in
|
|||
part of one's own name, with or
without authority, in any capacity for any
|
||||
purpose.
|
||||
g.
|
Investment
Company means any
investment company registered under the
|
|||
Investment Company Act of 1940
and listed under the NAME OF ASSURED
|
||||
on the
DECLARATIONS.
|
||||
h.
|
Items
of Deposit means one
or more checks or drafts drawn upon a
|
|||
financial institution in the
United States of America.
|
||||
i.
|
Larceny
or Embezzlement means larceny or embezzlement as
defined in
|
|||
Section 37 of the Investment
Company Act of 1940.
|
||||
j.
|
Property
means money, revenue
and other stamps; securities; including any
|
|||
note, stock, treasury stock,
bond, debenture, evidence of indebtedness,
|
||||
certificate of deposit,
certificate of interest or participation in any
profit-
|
||||
sharing agreement, collateral
trust certificate, preorganization certificate
or
|
||||
subscription, transferable share,
investment contract, voting trust certificate,
|
||||
certificate of deposit for a
security, fractional undivided interest in oil, gas,
or
|
||||
other mineral rights, any
interest or instruments commonly known as a
|
||||
security under the Investment
Company Act of 1940, any other certificate of
|
||||
interest or participation in,
temporary or interim certificate for, receipt
for,
|
||||
guarantee of, or warrant or right
to subscribe to or purchase any of the
|
||||
foregoing; bills of exchange;
acceptances; checks; withdrawal orders; money
|
||||
orders; travelers' letters of
credit; bills of lading; abstracts of title;
insurance
|
||||
policies, deeds, mortgages on
real estate and/or upon chattels and interests
|
||||
therein; assignments of such
policies, deeds or mortgages; other valuable
|
||||
papers, including books of
accounts and other records used by the
|
||||
ASSURED in the conduct of its
business (but excluding all electronic data
|
||||
processing records); and, all
other instruments similar to or in the nature of
|
||||
the foregoing in which the
ASSURED acquired an interest at the time of the
|
||||
ASSURED'S consolidation or merger
with, or purchase of the principal
|
||||
assets of, a predecessor or which
are held by the ASSURED for any
|
||||
purpose or in any capacity and
whether so held gratuitously or not and
|
||||
whether or not the ASSURED is
liable therefor.
|
||||
k.
|
Relative
means the spouse of
an Employee
or partner of the
ASSURED
|
|||
and any unmarried child supported
wholly by, or living in the home of, such
|
||||
Employee
or partner and being
related to them by blood, marriage or legal
|
||||
guardianship.
|
||||
l.
|
Securities,
documents or other written instruments means
original
|
|||
(including original counterparts)
negotiable or non-negotiable instruments, or
|
||||
assignments thereof, which in and
of themselves represent an equitable
|
||||
interest, ownership, or debt and
which are in the ordinary course of business
|
||||
transferable by delivery of such
instruments with any necessary
|
||||
endorsements or
assignments.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 10 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
Definitions
|
m.
|
Subsidiary
means any
organization that, at the inception date of this
Bond,
|
||||
(continued)
|
is named in the APPLICATION or is
created during the BOND PERIOD and
|
|||||
of which more than fifty percent
(50%) of the outstanding securities or voting
|
||||||
rights representing the present
right to vote for election of directors is owned
|
||||||
or controlled by the ASSURED
either directly or through one or more of its
|
||||||
subsidiaries.
|
||||||
n.
|
Transportation
Company means any
organization which provides its own
|
|||||
or its leased vehicles for
transportation or which provides freight
forwarding
|
||||||
or air express
services.
|
||||||
o.
|
Voice
Initiated Election means any election concerning
dividend options
|
|||||
available to Investment
Company shareholders
or subscribers which is
|
||||||
requested by voice over the
telephone.
|
||||||
p.
|
Voice
Initiated Redemption means any redemption of shares
issued by an
|
|||||
Investment
Company which is
requested by voice over the telephone.
|
||||||
q.
|
Voice
Initiated Funds Transfer Instruction means
any Voice
Initiated
|
|||||
Redemption
or
Voice
Initiated Election.
|
||||||
For the purposes of these
definitions, the singular includes the plural and
the
|
||||||
plural includes the singular,
unless otherwise indicated.
|
||||||
General
Exclusions -
|
2.
|
This bond does
not directly or indirectly cover:
|
||||
Applicable to
All Insuring
|
a.
|
loss not reported to the COMPANY
in writing within sixty (60) days after
|
||||
Clauses
|
termination of this Bond as an
entirety;
|
|||||
b.
|
loss due to riot or civil
commotion outside the United States of America
and
|
|||||
Canada, or any loss due to
military, naval or usurped power, war or
|
||||||
insurrection. This Section 2.b.,
however, shall not apply to loss which occurs
|
||||||
in transit in the circumstances
recited in INSURING CLAUSE 3., provided
|
||||||
that when such transit was
initiated there was no knowledge on the part of
|
||||||
any person acting for the ASSURED
of such riot, civil commotion, military,
|
||||||
naval or usurped power, war or
insurrection;
|
||||||
c.
|
loss resulting from the effects
of nuclear fission or fusion or radioactivity;
|
|||||
d.
|
loss of potential income
including, but not limited to, interest and
dividends
|
|||||
not realized by the ASSURED or by
any customer of the ASSURED;
|
||||||
e.
|
damages of any type for which the
ASSURED is legally liable, except
|
|||||
compensatory damages, but not
multiples thereof, arising from a loss
|
||||||
covered under this
Bond;
|
||||||
f.
|
costs, fees and expenses incurred
by the ASSURED in establishing the
|
|||||
existence of or amount of loss
under this Bond, except to the extent covered
|
||||||
under INSURING CLAUSE
11.;
|
||||||
g.
|
loss resulting from indirect or
consequential loss of any
nature;
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 11 of
19
|
Conditions
And
|
||||||||||
Limitations
|
||||||||||
General
Exclusions -
|
h.
|
loss resulting from dishonest
acts by any member of the Board of Directors
|
||||||||
Applicable to
All Insuring
|
or Board of Trustees of the
ASSURED who is not an Employee,
acting
|
|||||||||
Clauses
|
alone or in collusion with
others;
|
|||||||||
(continued)
|
i.
|
loss, or that part of any loss,
resulting solely from any violation by the
|
||||||||
ASSURED or by any Employee:
|
||||||||||
(1)
|
of any law
regulating:
|
|||||||||
a.
|
the issuance, purchase or sale of
securities,
|
|||||||||
b.
|
securities transactions on
security or commodity exchanges or
|
|||||||||
the over the counter
market,
|
||||||||||
c.
|
investment
companies,
|
|||||||||
d.
|
investment advisors,
or
|
|||||||||
(2)
|
of any rule or regulation made
pursuant to any such law; or
|
|||||||||
j.
|
loss of confidential information,
material or data;
|
|||||||||
k.
|
loss resulting from voice
requests or instructions received over the
|
|||||||||
telephone, provided however, this
Section 2.k. shall not apply to INSURING
|
||||||||||
CLAUSE 7. or
9.
|
||||||||||
Specific
Exclusions -
|
3.
|
This Bond does
not directly or indirectly cover:
|
||||||||
Applicable To
All Insuring
|
a.
|
loss caused by an Employee, provided, however, this Section
3.a. shall not
|
||||||||
Clauses
Except Insuring
|
apply to loss covered under
INSURING CLAUSE 2. or 3. which results
|
|||||||||
Clause
1.
|
directly from misplacement,
mysterious unexplainable disappearance, or
|
|||||||||
damage or destruction of
Property;
|
||||||||||
b.
|
loss through the surrender of
property away from premises of the ASSURED
|
|||||||||
as a result of a
threat:
|
||||||||||
(1)
|
to do bodily harm to any natural
person, except loss of Property
in
|
|||||||||
transit in the custody of any
person acting as messenger of the
|
||||||||||
ASSURED, provided that when such
transit was initiated there was no
|
||||||||||
knowledge by the ASSURED of any
such threat, and provided further
|
||||||||||
that this Section 3.b. shall not
apply to INSURING CLAUSE 7., or
|
||||||||||
(2)
|
to do damage to the premises or
Property
of the
ASSURED;
|
|||||||||
c.
|
loss resulting from payments made
or withdrawals from any account
|
|||||||||
involving erroneous credits to
such account;
|
||||||||||
d.
|
loss involving Items
of Deposit which are
not finally paid for any reason
|
|||||||||
provided however, that this
Section 3.d. shall not apply to INSURING
|
||||||||||
CLAUSE
10.;
|
||||||||||
e.
|
loss of property while in the
mail;
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 12 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
Specific
Exclusions -
|
f.
|
loss resulting from the failure
for any reason of a financial or depository
|
||||
Applicable To
All Insuring
|
institution, its receiver or
other liquidator to pay or deliver funds or
other
|
|||||
Clauses
Except Insuring
|
Property
to the ASSURED
provided further that this Section 3.f. shall
not
|
|||||
Clause
1.
|
apply to loss of Property
resulting directly
from robbery, burglary,
|
|||||
(continued)
|
misplacement, mysterious
unexplainable disappearance, damage,
|
|||||
destruction or removal from the
possession, custody or control of the
|
||||||
ASSURED.
|
||||||
g.
|
loss of Property
while in the custody
of a Transportation
Company,
|
|||||
provided however, that this
Section 3.g. shall not apply to INSURING
|
||||||
CLAUSE
3.;
|
||||||
h.
|
loss resulting from entries or
changes made by a natural person with
|
|||||
authorized access to a
Computer
System who acts in
good faith on
|
||||||
instructions, unless such
instructions are given to that person by a
software
|
||||||
contractor or its partner,
officer, or employee authorized by the ASSURED
to
|
||||||
design, develop, prepare, supply,
service, write or implement programs for
|
||||||
the ASSURED's Computer
System;
or
|
||||||
i.
|
loss resulting directly or
indirectly from the input of data into a Computer
|
|||||
System
terminal, either on
the premises of the customer of the ASSURED
|
||||||
or under the control of such a
customer, by a customer or other person who
|
||||||
had authorized access to the
customer's authentication mechanism.
|
||||||
Specific
Exclusions -
|
4.
|
This bond does
not directly or indirectly cover:
|
||||
Applicable To
All Insuring
|
a.
|
loss resulting from the complete
or partial non-payment of or default on any
|
||||
Clauses
Except Insuring
|
loan whether such loan was
procured in good faith or through trick,
artifice,
|
|||||
Clauses 1.,
4., And 5.
|
fraud or false pretenses;
provided, however, this Section 4.a. shall not
apply
|
|||||
to INSURING CLAUSE
8.;
|
||||||
b.
|
loss resulting from forgery or
any alteration;
|
|||||
c.
|
loss involving a counterfeit
provided, however, this Section 4.c. shall not
|
|||||
apply to INSURING CLAUSE 5. or
6.
|
||||||
Limit Of
Liability/Non-
|
5.
|
At all times prior to termination
of this Bond, this Bond shall continue in force
for
|
||||
Reduction And
Non-
|
the limit stated in the
applicable sections of ITEM 2. of the
DECLARATIONS,
|
|||||
Accumulation
Of Liability
|
notwithstanding any previous loss
for which the COMPANY may have paid or be
|
|||||
liable to pay under this Bond
provided, however, that the liability of the
COMPANY
|
||||||
under this Bond with respect to
all loss resulting from:
|
||||||
a.
|
any one act of burglary, robbery
or hold-up, or attempt thereat, in which no
|
|||||
Employee
is concerned or
implicated, or
|
||||||
b.
|
any one unintentional or
negligent act on the part of any one person
|
|||||
resulting in damage to or
destruction or misplacement of Property, or
|
||||||
c.
|
all acts, other than those
specified in a. above, of any one person,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 13 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
Limit Of
Liability/Non-
|
d.
|
any one casualty or event other
than those specified in a., b., or c. above,
|
||||
Reduction And
Non-
|
shall be deemed to be one loss
and shall be limited to the applicable LIMIT OF
|
|||||
Accumulation
Of Liability
|
LIABILITY stated in ITEM 2. of
the DECLARATIONS of this Bond irrespective of
|
|||||
(continued)
|
the total amount of such loss or
losses and shall not be cumulative in amounts
|
|||||
from year to year or from period
to period.
|
||||||
All acts, as specified in c.
above, of any one person which
|
||||||
i.
|
directly or indirectly aid in any
way wrongful acts of any other person or
|
|||||
persons,
or
|
||||||
ii.
|
permit the continuation of
wrongful acts of any other person or persons
|
|||||
whether such acts are committed
with or without the knowledge of the wrongful
|
||||||
acts of the person so aided, and
whether such acts are committed with or without
|
||||||
the intent to aid such other
person, shall be deemed to be one loss with the
|
||||||
wrongful acts of all persons so
aided.
|
||||||
Discovery
|
6.
|
This Bond applies only to loss
first discovered by an officer of the ASSURED
|
||||
during the BOND PERIOD. Discovery
occurs at the earlier of an officer of the
|
||||||
ASSURED being aware
of:
|
||||||
a.
|
facts which may subsequently
result in a loss of a type covered by this Bond,
|
|||||
or
|
||||||
b.
|
an actual or potential claim in
which it is alleged that the ASSURED is liable
|
|||||
to a third
party,
|
||||||
regardless of when the act or
acts causing or contributing to such loss
occurred,
|
||||||
even though the amount of loss
does not exceed the applicable DEDUCTIBLE
|
||||||
AMOUNT, or the exact amount or
details of loss may not then be known.
|
||||||
Notice To
Company -
|
7.
|
a.
|
The ASSURED shall give the
COMPANY notice thereof at the earliest
|
|||
Proof - Legal
Proceedings
|
practicable moment, not to exceed
sixty (60) days after discovery of loss, in
|
|||||
Against
Company
|
an amount that is in excess of
50% of the applicable DEDUCTIBLE
|
|||||
AMOUNT, as stated in ITEM 2. of
the DECLARATIONS.
|
||||||
b.
|
The ASSURED shall furnish to the
COMPANY proof of loss, duly sworn to,
|
|||||
with full particulars within six
(6) months after such discovery.
|
||||||
c.
|
Securities listed in a proof of
loss shall be identified by certificate or bond
|
|||||
numbers, if issued with
them.
|
||||||
d.
|
Legal proceedings for the
recovery of any loss under this Bond shall not
be
|
|||||
brought prior to the expiration
of sixty (60) days after the proof of loss is
filed
|
||||||
with the COMPANY or after the
expiration of twenty-four (24) months from
|
||||||
the discovery of such
loss.
|
||||||
e.
|
This Bond affords coverage only
in favor of the ASSURED. No claim, suit,
|
|||||
action or legal proceedings shall
be brought under this Bond by anyone
|
||||||
other than the
ASSURED.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 14 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
Notice To
Company -
|
f.
|
Proof
of loss involving Voice
Initiated Funds Transfer Instruction shall
|
||||
Proof - Legal
Proceedings
|
include electronic recordings of
such instructions.
|
|||||
Against
Company
|
||||||
(continued)
|
||||||
Deductible
Amount
|
8.
|
The COMPANY shall not be liable
under any INSURING CLAUSES of this Bond
|
||||
on account of loss unless the
amount of such loss, after deducting the net
amount
|
||||||
of all reimbursement and/or
recovery obtained or made by the ASSURED, other
|
||||||
than from any Bond or policy of
insurance issued by an insurance company and
|
||||||
covering such loss, or by the
COMPANY on account thereof prior to payment by
|
||||||
the COMPANY of such loss, shall
exceed the DEDUCTIBLE AMOUNT set forth in
|
||||||
ITEM 3. of the DECLARATIONS, and
then for such excess only, but in no event
|
||||||
for more than the applicable
LIMITS OF LIABILITY stated in ITEM 2. of the
|
||||||
DECLARATIONS.
|
||||||
There shall be no deductible
applicable to any loss under INSURING CLAUSE 1.
|
||||||
sustained by any Investment
Company.
|
||||||
Valuation
|
9.
|
BOOKS OF
ACCOUNT OR OTHER RECORDS
|
||||
The value of any loss of
Property
consisting of books
of account or other records
|
||||||
used by the ASSURED in the
conduct of its business shall be the amount paid
by
|
||||||
the ASSURED for blank books,
blank pages, or other materials which replace
the
|
||||||
lost books of account or other
records, plus the cost of labor paid by the
|
||||||
ASSURED for the actual
transcription or copying of data to reproduce such
books
|
||||||
of account or other
records.
|
||||||
The value of any loss of
Property
other than books of
account or other records
|
||||||
used by the ASSURED in the
conduct of its business, for which a claim is
made
|
||||||
shall be determined by the
average market value of such Property
on
the
|
||||||
business day immediately
preceding discovery of such loss provided,
however,
|
||||||
that the value of any
Property
replaced by the
ASSURED with the consent of the
|
||||||
COMPANY and prior to the
settlement of any claim for such Property
shall be
the
|
||||||
actual market value at the time
of replacement.
|
||||||
In the case of a loss of interim
certificates, warrants, rights or other securities,
the
|
||||||
production of which is necessary
to the exercise of subscription, conversion,
|
||||||
redemption or deposit privileges,
the value of them shall be the market value of
|
||||||
such privileges immediately
preceding their expiration if said loss is not
discovered
|
||||||
until after their expiration. If
no market price is quoted for such Property
or
for
|
||||||
such privileges, the value shall
be fixed by agreement between the parties.
|
||||||
OTHER
PROPERTY
|
||||||
The value of any loss of
Property, other than as stated above,
shall be the actual
|
||||||
cash value or the cost of
repairing or replacing such Property
with Property
of
|
||||||
like quality and value, whichever
is less.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed.
5-98)
|
Page 15 of
19
|
Conditions
And
|
||||||
Limitations
|
||||||
(continued)
|
||||||
Securities
Settlement
|
10.
|
In the event of a loss of
securities covered under this Bond, the COMPANY
may,
|
||||
at its sole discretion, purchase
replacement securities, tender the value of the
|
||||||
securities in money, or issue its
indemnity to effect replacement securities.
|
||||||
The indemnity required from the
ASSURED under the terms of this Section
|
||||||
against all loss, cost or expense
arising from the replacement of securities by
the
|
||||||
COMPANY'S indemnity shall
be:
|
||||||
a.
|
for securities having a value
less than or equal to the applicable
|
|||||
DEDUCTIBLE AMOUNT - one hundred
(100%) percent;
|
||||||
b.
|
for securities having a value in
excess of the DEDUCTIBLE AMOUNT but
|
|||||
within the applicable LIMIT OF
LIABILITY - the percentage that the
|
||||||
DEDUCTIBLE AMOUNT bears to the
value of the securities;
|
||||||