|
INVESTMENT
COMPANY BOND
|
|
|
|
Bond No. FI
0240319
|
|
Hartford Casualty Insurance Company
|
|
|
Hartford, CT 06115
|
|
|
(Herein
called UNDERWRITER)
|
|
DECLARATIONS
Item 1.
|
Name of Insured (herein called INSURED(S)): RMR Preferred Dividend
Fund
|
|
|
|
Principal
Address: 400 Centre Street, Newton, MA 02458
|
|
|
|
Item 2.
|
Bond Period: from 12:01 a.m. on
|
December 18, 2007
|
to 12:01 a.m. on
|
December 18, 2008
|
|
|
Standard Time.
|
(MONTH, DAY, YEAR)
|
|
(MONTH, DAY, YEAR)
|
|
|
|
Item 3.
|
Limit of Liability: $500,000
|
|
|
|
Provided however, that if specific limits, are shown below as
applicable to any specified COVERAGE, such specific limits shall apply to the
coverage provided by such COVERAGES and are in lieu of, and not in addition
to, the above bond Limit of Liability.
If Not Covered is inserted below beside any specified COVERAGE, the
coverage provided by such COVERAGE is deleted from this bond.
|
|
|
|
|
|
|
|
COVERAGES
|
|
Limit of
Liability
|
|
Deductible
|
|
I.
|
|
Employee
|
|
$
|
500,000
|
|
$
|
5,000
|
|
II.
|
|
Premises
|
|
$
|
500,000
|
|
$
|
5,000
|
|
III.
|
|
Transit
|
|
$
|
500,000
|
|
$
|
5,000
|
|
IV.
|
|
Forgery
or Alteration
|
|
$
|
500,000
|
|
$
|
5,000
|
|
V.
|
|
Securities
|
|
$
|
500,000
|
|
$
|
5,000
|
|
VI.
|
|
Counterfeit Currency
|
|
$
|
500,000
|
|
$
|
5,000
|
|
VII.
|
|
Computer
Systems Fraudulent Entry
|
|
$
|
500,000
|
|
$
|
5,000
|
|
VIII.
|
|
Voice Initiated Transaction
|
|
$
|
500,000
|
|
$
|
5,000
|
|
IX.
|
|
Telefacsimile Transfer Fraud
|
|
$
|
500,000
|
|
$
|
5,000
|
|
X.
|
|
Uncollectible Items of Deposit
|
|
$
|
100,000
|
|
$
|
5,000
|
|
XI.
|
|
Audit Expense
|
|
$
|
100,000
|
|
$
|
5,000
|
|
XII.
|
|
Stop Payment
|
|
$
|
100,000
|
|
$
|
5,000
|
|
XIII.
|
|
Unauthorized Signatures
|
|
$
|
100,000
|
|
$
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Optional Coverages:
|
|
|
|
|
|
|
|
|
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
$
|
|
|
$
|
|
|
|
No Deductible shall apply to any loss under COVERAGE I. sustained by
any Investment Company.
|
|
|
|
Item 4.
|
The Coverages provided by this Bond are also subject to the terms of
the following riders issued herewith:
|
|
|
|
F-6016; F-6018; F-6019
|
|
Item 5.
|
The INSURED by the acceptance of this bond gives notice to the
UNDERWRITER terminating or canceling prior bond(s) or policy(ies) No.(s) such
termination or cancellation to be effective as of the time this bond becomes
effective.
|
|
|
This bond will not be valid unless countersigned by our duly
authorized representative.
|
|
|
|
Countersigned by
|
|
|
Signed, this 11
th
day of March 2008.
|
|
|
|
David Castillo, Authorized Representative
|
|
|
|
|
|
|
|
Form F-6000-0
1
The UNDERWRITER, in consideration of the
payment of premium, and in reliance upon all statements made and information
furnished to the UNDERWRITER by the INSURED in applying for this bond, and
subject to the DECLARATIONS, COVERAGES, GENERAL CONDITIONS, DEFINITIONS AND
LIMITATIONS and other terms hereof, agrees to indemnify the INSURED for:
COVERAGES
I.
EMPLOYEE
Loss to the INSURED directly resulting from Larceny
or Embezzlement committed by any Employee, acting alone or in collusion with
others.
II.
PREMISES
A.
PROPERTY
Loss of Property
directly resulting from robbery, burglary, larceny (common-law or statutory),
mysterious disappearance, damage, destruction or removal from the possession,
custody or control of the INSURED, while such Property is in the custody of
or deposited within any office or premise.
B.
OFFICE EQUIPMENT
Loss of, or damage to
furnishings, fixtures, supplies, equipment, safes or vaults within any of the
INSUREDS offices directly resulting from robbery, burglary or larceny (common
law or statutory) of such offices, or attempt thereat. Loss resulting from damage to any office
directly resulting from robbery, burglary or larceny (common law or statutory)
of such office, or attempts thereat is also covered, provided that the INSURED
is the owner of such offices, furnishings, fixtures, supplies, equipment, safes
or vaults or is legally liable for such loss or damage always excepting,
however, loss or damage through fire and
all loss to electronic data processing equipment.
III.
TRANSIT
Loss of Property
directly resulting from robbery or larceny (common law or statutory),
mysterious disappearance, damage to or destruction while the Property is in
transit to any location:
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 INSURED, or
c.
in the custody of a
Transportation Company while being transported in a conveyance which is not
an armored motor vehicle provided, except, that covered Property transported
in this manner is limited to the following:
1.
written records,
2.
securities issued
in registered form or negotiable instruments not payable to bearer, which are
not endorsed or are restrictively endorsed.
Coverage under this Transit Coverage begins
upon the receipt of such Property by the natural person acting as a messenger
or as a representative of an armored motor vehicle company or as a messenger or
as a representative of the Transportation Company and ends upon delivery to
the premises of the addressee or to any representative of the addressee.
IV.
FORGERY OR ALTERATION
Loss to the INSURED
directly resulting from:
a.
Forgery or
fraudulent material alteration of any bills of exchange, checks, drafts,
acceptances, certificates of deposits, promissory notes, money orders, orders
upon public treasuries, letters of credit or receipts for the withdrawal of Property,
or
b.
transferring,
delivering or paying any funds or other Property, or establishing any credit
or giving any value in good faith, and in the ordinary course of business on
written instructions or applications directed to the INSURED authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or other Property,
which instructions or applications purport to bear the handwritten signature
of: (1) any Customer of the
INSURED, or (2) any shareholder or subscriber to shares of an Investment
Company, or (3) any banking institution, stockbroker or Employee but
which instructions or applications either bear a Forgery or a fraudulent
material alteration without the knowledge and consent of such Customer,
shareholder, subscriber to shares, banking institution, stockbroker, or Employee.
There is no coverage
under this Forgery Or Alteration Coverage IV for any loss covered under
Coverage V. OR IX. of this bond, whether or not Coverages V. or IX. are provided
by this bond.
A mechanically
reproduced facsimile signature is deemed to be the same as a handwritten
signature.
Form F-6000-0
2
V.
SECURITIES
Loss directly resulting
from the INSURED, in good faith and in the ordinary course of business, whether
for its own account or for the account of others having:
a.
acquired,
accepted or received, sold, delivered, given value, extended credit, or assumed
liability upon any original Securities, documents or other written instruments
which:
1.
bear a Forgery
or fraudulent material alteration,
2.
have been
lost or stolen, or
3.
are Counterfeit,
or
b.
guaranteed
in writing or witnessed signatures upon transfers, assignments, bills of sale,
powers of attorney, guarantees, endorsements or other obligations in connection
with any Securities, documents or other written instruments which pass or
purport to pass title to them.
Actual and continued
physical possession of such Securities, documents or other written instruments
by an Employee, Custodian, or a Federal or State chartered deposit
institution is a condition precedent to the INSURED having relied on such items
and release or return of such items will be deemed to be an acknowledgement by
the INSURED of not having relied on such items.
A mechanically
reproduced facsimile signature is deemed to be the same as a handwritten
signature.
VI.
COUNTERFEIT
CURRENCY
Loss directly resulting
from the receipt by the INSURED, in good faith and in the ordinary course of
business, of Counterfeit money orders, currencies or coin of any country.
VII.
COMPUTER
SYSTEMS FRAUDULENT ENTRY
Loss to the INSURED
directly resulting from fraudulent entry of data into or the change of data
elements or programs within the INSUREDS proprietary Computer System or a Computer
System operated or used by the INSURED and stated in the application, if the
fraudulent entry or change results in:
a.
Property
being transferred, paid or delivered,
b.
an account
of the INSURED, or of its Customer, being added, deleted, debited, or
credited, or
c.
an
unauthorized account or a fictitious account being debited or credited.
VIII. VOICE INITIATED
TRANSACTION
Loss to the INSURED
directly resulting from a Voice Initiated Transaction directed to the INSURED
and authorizing the transfer of dividends or redemption proceeds of Investment
Company shares from a Customers account, provided such Voice Initiated
Transaction was:
a.
received at
the INSUREDS offices by those Employees of the INSURED authorized to receive
the Voice Initiated Transaction, and
b.
made by a
person purporting to be a Customer, and
c.
made by such
person for the purpose of causing the INSURED or Customer to suffer a loss or
making an improper personal financial gain for such person or any other person,
and
d.
initiated
pursuant to a preexisting written agreement between the Customer and the
INSURED.
In order for coverage to
apply under this Coverage, all Voice Initiated Transactions must be received
and processed in good faith, and in the ordinary course of business in
accordance with the Procedures established in the application.
IX.
TELEFACSIMILE
TRANSFER FRAUD
Loss to the INSURED
directly resulting from the INSURED having, in good faith, and in the ordinary
course of business, transferred or delivered Funds, certificated securities or
uncertificated securities through a Computer System covered under the
Computer Systems Fraudulent Entry Coverage in reliance upon a fraudulent
instruction received through a Telefacsimile Device, and which instruction was
received at the INSUREDs offices by those Employees of the INSURED
authorized to receive the Telefacsimile Device instruction and which:
(1)
purports and
reasonably appears to have originated from
(a)
a Client of
the INSURED,
(b)
another
office of the INSURED, or
(c)
another
financial institution,
but,
was not originated by the Client or entity whose identification it bears and
Form F-6000-0
3
(2)
such
instruction contains a valid test code which proves to have been used by a
person who was not authorized to use it and,
(3)
contains the
name of a person authorized to initiate such transfer; and
if the transfer was in
excess of the Telefacsimile Transfer Fraud Coverage Deductible stated in Item
3. of the Declarations Page, the instruction was verified by a call-back
according to a pre-arranged procedure.
For the purposes of this
Coverage, Client means an entity or individual which has through a written
agreement with the INSURED authorized the INSURED to rely on Telefacsimile
Device instructions to initiate transfers and has provided the INSURED with the
names of persons authorized to make such transfers, and with which the INSURED
has established an instruction verification procedure. Funds means money on deposit in an account.
In addition to the
Conditions and Limitations in the bond, the following provisions are applicable
to the Telefacsimile Transfer Fraud Coverage:
Telefacsimile Device
means a machine capable of sending or receiving an image of a document by
electronic means transmitted through a telephone line and which reproduces the
exact duplicate of the document on paper.
This Coverage
(Telefacsimile Transfer Fraud) does not cover loss resulting directly or
indirectly from the assumption of liability by the INSURED by contract unless
the liability arises from a loss covered by the Telefacsimile Transfer Fraud
Coverage and would be imposed on the INSURED without the existence of the
contract.
Proof of loss for claim
under this Coverage must include a copy of the document reproduced by the
Telefacsimile Device.
X.
UNCOLLECTIBLE
ITEMS OF DEPOSIT
Loss directly resulting
from the INSURED, in good faith and in the ordinary course of business,
crediting an account of a Customer, shareholder or subscriber based on any Items
of Deposit which prove to be uncollectible, if the crediting of said account
causes:
a.
redemptions
or withdrawals of the account to be effected,
b.
shares to be
issued, or
c.
payment of
dividends,
from an account of an Investment
Company.
In order for coverage to
apply under this Coverage, the INSURED must hold Items of Deposit for the
minimum number of days stated in the application before permitting any
redemptions or withdrawals of the account, issuing any shares or paying any
dividends with respect to such Items of Deposit.
Items of Deposit are
deemed uncollectible when the INSUREDS standard collection procedures have
been utilized and have failed to result in collection.
XI.
AUDIT
EXPENSE
Reasonable expense
incurred by the INSURED for an audit or examination required by any
governmental regulatory authority or self-regulatory organization and conducted
by such authority, organization or their appointee because of the discovery of
loss sustained by the INSURED and covered by this bond but only for the part of
the audit or examination caused by said loss.
XII.
STOP PAYMENT
Loss of any and all sums
which the INSURED shall become obligated to pay by reason of the liability
imposed upon the INSURED by law for damages:
(a)
for having
either complied with or failed to comply with any written notice of any Customer
or any authorized representative of such Customer to stop payment of any
check or draft made or drawn by such Customer or any authorized
representative of such Customer or
(b)
for having
refused to pay any check or draft made or drawn by any Customer or any
authorized representative of such Customer.
XIII.UNAUTHORIZED
SIGNATURES COVERAGE
Loss
to the INSURED directly resulting from the INSURED having in good faith and in
the ordinary course of business, accepted, paid or cashed any check, withdrawal
order, draft, made or drawn on a Customers account, which bears the
signature or endorsement of one other than a person whose name and signature is
on file with the INSURED as a signatory on such account. It shall be a condition precedent to the
INSUREDS right of recovery under this Coverage that the INSURED have on file
signatures of all persons who are signatories on such account.
Form F-6000-0
4
GENERAL CONDITIONS
A.
OTHER
COMPANIES INSURED UNDER THIS BOND
If more than one
corporation, or Investment Company, or combination thereof is included herein
as the INSURED:
(1)
The total
liability of the UNDERWRITER under this bond for loss or losses sustained by
one or more or all INSUREDS under the Bond shall not exceed the limit for which
the UNDERWRITER would be liable if all losses were sustained by only one of
them.
(2)
The first
named INSURED shall be deemed to be the sole agent of all of the other INSUREDS
hereunder for all purposes under this bond, including but not limited to giving
or receiving any notice or proof required to be given herein and for the
purpose of effecting or accepting amendments to or termination of this
bond. The UNDERWRITER shall give each Investment
Company a copy of this bond and any amendment hereto, a copy of each formal
filing of claim by any other named INSURED and the terms of the settlement of
each claim prior to the execution of such settlement.
(3)
The
UNDERWRITER bears no responsibility under this Bond for the proper application
of any payment made to the first named INSURED.
(4)
For the
purposes of the bond, knowledge possessed or discovery made by any partner,
director, trustee, officer or supervisory Employee of any INSURED constitutes
knowledge or discovery by all the INSUREDS.
(5)
If the first
named INSURED for any reason, ceases to be covered under this bond, then the
INSURED next named shall henceforth be considered as the first named INSURED
for the purposes mentioned in (2) above.
B.
NOTICE TO
UNDERWRITER OF MERGERS, CONSOLIDATIONS OR OTHER ACQUISITIONS
While this bond is in
force, if the INSURED, other than an Investment Company, merges or
consolidates with, or purchases or acquires assets or liabilities of another
entity, the INSURED shall not have the coverage afforded under this bond for
loss which:
a.
has or will
occur in offices or on premises acquired, or
b.
has or will
be caused by an Employee or Employees acquired, or
c.
has or will
arise out of the assets or liabilities acquired,
unless
the INSURED:
i.
gives the
UNDERWRITER written notice of the proposed consolidation, merger, purchase or
acquisition of assets or liabilities prior to the proposed effective date of
such action, and
ii.
obtains the
written consent of the UNDERWRITER to extend the coverage provided by this bond
in whole or in part to such additional exposure, and
iii.
upon
obtaining such consent pays an additional premium to the UNDERWRITER.
C.
CHANGE OF
CONTROL NOTICE TO UNDERWRITER
When the INSURED becomes
aware of a change in control (other than in an Investment Company), as
defined in Section 2(a) (9) of the Investment Company Act of
1940, the INSURED shall, within thirty (30) days, give written notice to the
UNDERWRITER setting forth:
(1)
the names of
the transferors and transferees (or if the voting securities are registered in
another name the names of the beneficial owners),
(2)
the total
number of voting securities owned by the transferors and the transferees (or
the beneficial owners), both immediately before and after the date of the
transfer, and
(3)
the total
number of outstanding voting securities.
The failure to give the
above required notice shall result in termination of coverage as to any loss
involving a transferee, effective on the date of such change in control.
D.
REPRESENTATIONS
MADE BY INSURED
The INSURED represents
to the UNDERWRITER that all information it has furnished either in the
application for this bond or other documentation is complete, true and
correct. Such application and other
documentation constitute part of this bond.
The INSURED must
promptly notify the UNDERWRITER of any change in any fact or circumstance that
materially affects the risk assumed by the UNDERWRITER under this bond.
Any intentional
misrepresentation, omission, concealment or incorrect statement of a material
fact, in the application or related documentation, shall be grounds for
rescission of this bond.
Form F-6000-0
5
DEFINITIONS AND LIMITATIONS
I.
DEFINITIONS
For the purpose of the
Coverage provided by this bond:
A.
Computer
Systems
means:
(1)
computers,
including related peripheral and storage components,
(2)
systems and
applications software,
(3)
terminal
devices, and
(4)
related
communication networks
by
which data is electronically assembled, transmitted, processed, stored, and
retrieved.
B.
Counterfeit
means an imitation of an actual and valid original which is intended to deceive
and be taken as the original.
C.
Custodian
means the institution designated by an Investment Company to have possession
and control of its assets.
D.
Customer
means an individual, corporation, partnership, trust, or LLC which is a
shareholder or subscriber of the INSURED.
E.
Employee
means:
(1)
a corporate
officer of the INSURED;
(2)
a natural
person while in the regular service of the INSURED at any of the INSUREDS
offices and who is compensated directly by the INSURED through its payroll
system and subject to the United States Internal Revenue Service Form W-2
or equivalent income reporting of other countries, and whom the INSURED 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)
an attorney
retained by the INSURED or an employee of such attorney while either is
performing legal services for the INSURED;
(4)
a person
furnished by an employment contractor to perform clerical, premises maintenance
or security duties for the INSURED under the INSUREDS supervision at any of
the INSUREDS offices or premises;
(5)
an employee
of an institution which has been merged or consolidated with the INSURED prior
to the effective date of this bond;
(6)
a student or
intern pursuing studies or performing duties in any of the INSUREDS offices;
(7)
each natural
person, partnership or corporation authorized by written agreement with the
INSURED to perform services as an 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 INSUREDS computer software or
programs; or
b.
acting as a
transfer agent or in any other agency capacity in issuing checks, drafts or
securities for the INSURED;
(8)
a director
or trustee of the INSURED, but only while performing acts within the scope of
the customary and usual duties of an officer or Employee of the INSURED or
while acting as a member of any duly elected or appointed committee to examine,
audit or have custody of or access to Property of the INSURED; or
(9)
any partner,
officer or employee of an investment adviser, an underwriter (distributor), a
transfer agent or shareholder record keeper, or an administrator, for an Investment
Company while performing acts 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 duly elected or appointed committee 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 record keeper 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).
Form F-6000-0
6
This
coverage provided by the bond does not afford coverage in favor of the
employers of persons as set forth in (4) and (7) above, and in the
event of any payment to the INSURED by the UNDERWRITER directly resulting 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 the INSUREDS rights and causes of action as they may have against such
employers because of such acts shall, to the extent of such payment, be given
by the INSURED to the UNDERWRITER, and the INSURED shall execute all documents
necessary to secure the rights provided for herein.
Each
employer of persons as set forth in (3), (4) and (7) above and the
partners, officers and other employees of such employers shall collectively be
deemed to be one person for the purposes of this bond, excepting, however, the
last paragraph of the Termination-Cancellation Section.
Independent
contractors not specified in (3), (4) and (7) above, intermediaries,
agents, brokers or other representatives of the same type shall not be
considered Employees.
F.
Forgery
means the signing of the name of another person or organization with the intent
to deceive with or without authority, in any capacity, for any purpose but does
not mean a signature which consists in whole or in part of ones own name.
G.
Investment
Company means an investment company registered under the Investment Company
Act of 1940 and as shown under the NAME OF INSURED 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 set forth in Section 37
of the Investment Company Act of 1940.
J.
Property
means:
a.
currency,
coin, bank notes, or Federal Reserve notes (money), postage and revenue stamps,
U.S. Savings Stamps, securities, including notes, stock, treasury stock, bonds,
debentures, certificates of deposit;
b.
certificates
of interests 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,
interests or instruments commonly known as securities 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;
c.
bills of
exchange, acceptances, checks, drafts, withdrawal orders, money orders,
travelers checks, letters of credit, bills of lading, abstracts of title,
insurance policies, deeds, mortgages of real estate and/or of chattels and
interests therein, assignments of such mortgages and instruments, including
books of accounts and written records used by the INSURED in the conduct of its
business; and
d.
electronic
representation of the instruments enumerated above (but excluding all
electronic data processing records) in which the INSURED acquired an interest
at the time of the INSUREDS consolidation or merger with, or purchase of the
principal assets of, a predecessor or which are held by the INSURED for any
purpose or in any capacity whether held gratuitously or whether or not the
INSURED is liable therefor.
K.
Securities,
documents or other written instruments means original (including original
counterparts) negotiable or non-negotiable instruments, or assignments thereof,
which by themselves represent an equitable interest, ownership, or debt and
which are transferable in the ordinary course of business by delivery of such
instruments with any necessary endorsements or assignments.
L.
Transportation
Company means any entity which provides its own or leased vehicles for
transportation or provides freight forwarding or air express services.
M.
Voice
Initiated Election means any election related to dividend options available to
an Investment Company shareholders or subscribers which is executed by voice
over the telephone.
N.
Voice
Initiated Redemption means any redemption of shares issued by an Investment
Company which is initiated by voice over the telephone.
O.
Voice
Initiated Transaction(s) means any Voice Initiated Redemption or Voice
Initiated Election.
Form F-6000-0
7
II.
EXCLUSIONS
A.
EXCLUSIONS APPLICABLE
TO ALL COVERAGES
This
bond does not directly or indirectly cover:
(1)
loss not
reported to the UNDERWRITER in writing within thirty (30) days after
termination of all of the Coverages under this bond;
(2)
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. However, this exclusion shall not apply to
loss which occurs in transit under the circumstances enumerated in Coverage III
TRANSIT, provided that when such transit was undertaken there was no knowledge
on the part of any person acting for the INSURED in undertaking such transit of
such riot, civil commotion, military, naval or usurped power, war or
insurrection;
(3)
loss
resulting from dishonest acts of any member of the Board of Directors or Board
of Trustees of the INSURED who is not an Employee, acting alone or in
collusion with others;
(4)
loss, which
in whole or in part, results solely from any violation by the INSURED or by any
Employee of any law, or rule, or regulation pertaining to any law regulating:
a.
the
issuance, purchase or sale of securities,
b.
transactions
on security or commodity exchanges or over-the-counter markets,
c.
investment
advisors, or
d.
investment companies
unless
such loss, in the absence of such laws, rules or regulations, would be
covered under Coverages I. or IV.;
(5)
loss of
potential income including, but not limited to, interest and dividends not
realized by the INSURED or by any Customer of the INSURED;
(6)
loss
resulting from indirect or consequential loss of any nature;
(7)
any damages
other than compensatory damages (but not multiples thereof) for which the
INSURED is legally liable, arising from a loss covered under this bond;
(8)
loss
resulting from the effects of nuclear fission, fusion, radioactivity, or
chemical or biological contamination;
(9)
loss
resulting from the theft or misuse of confidential information, material or
data except that this exclusion shall not apply to the transfer or payment of
money;
(10)
costs, fees
and expenses incurred by the INSURED in proving the existence or amount of loss
under this bond, provided however, this EXCLUSION shall not apply to Coverage
XI.;
(11)
loss
resulting from voice requests or instructions transmitted over the telephone,
provided however, this EXCLUSION shall not apply to Coverage VIII. and Coverage
IX.;
(12)
loss
sustained by one INSURED to the advantage of any other INSURED, or subsidiary
or entity in which the INSURED, its majority shareholder, partner, or owner has
a majority interest therein, provided that an INSURED, upon discovery of the
loss, can cause the principal sum to be restored to the INSURED who suffered
the loss.
B.
SPECIFIC
EXCLUSIONS APPLICABLE TO ALL COVERAGES EXCEPT COVERAGE I.
This bond does not
directly or indirectly cover:
(1)
loss caused
by an Employee, provided, however, this EXCLUSION shall not apply to loss
covered under Coverages II. or III. which results directly from misplacement,
mysterious disappearance, or damage to or destruction of Property;
(2)
loss through
the surrender of Property away from an office of the INSURED as a result of a
threat:
a.
to do bodily
harm to any person, except loss of Property in transit in the custody of any
person acting as messenger of the INSURED, provided that when such transit was
undertaken there was no knowledge by the INSURED or any person acting as
messenger of the INSURED of any such threat or
b.
to do damage
to the premises or Property of the INSURED;
(3)
loss
involving Items of Deposit which are not finally paid for any reason provided
however, that this EXCLUSION shall not apply to Coverage X.;
(4)
loss
resulting from payments made or withdrawals from any account involving
erroneous credits to such account;
Form F-6000-0
8
(5)
loss of Property
while in the mail;
(6)
loss of Property
while in the custody of a Transportation Company, provided however, that this
EXCLUSION shall not apply to Coverage III.;
(7)
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 INSURED but this EXCLUSION shall not apply to loss of Property
directly resulting from robbery, burglary, misplacement, mysterious
disappearance, damage, destruction or abstraction from the possession, custody
or control of the INSURED.
C.
EXCLUSIONS
-APPLICABLE TO ALL COVERAGES EXCEPT COVERAGES I., IV., V.
This
bond does not directly or indirectly cover:
(1)
loss
resulting from Forgery or any alteration;
(2)
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;
(3)
loss
involving a Counterfeit provided, however, this EXCLUSION shall not apply to
Coverage VI., X., and XIII.
III.
DISCOVERY
This bond applies only
to loss first discovered by any partner, director, trustee, officer or
supervisory Employee of the INSURED during the Bond Period. Discovery of loss is deemed to occur at the
earliest point that such individuals become aware of:
(1)
facts which
may subsequently result in a loss of a type covered by this bond, or
(2)
an actual or
potential claim in which it is alleged that the INSURED is liable to a third
party,
regardless of when the
act or acts causing or contributing to such loss occurred and even if the
amount of actual or potential loss does not exceed the applicable Deductible or
the exact amount or details of the loss are not known.
IV.
NOTICE
PROOF LEGAL PROCEEDINGS AGAINST UNDERWRITER
(1)
At the
earliest practicable time, not to exceed thirty (30) days after discovery of
the loss, the INSURED shall give the UNDERWRITER notice thereof.
(2)
Within six (6) months
after such discovery, the INSURED shall furnish to the UNDERWRITER a proof of
loss, duly sworn to, with full particulars of the loss.
(3)
Securities
issued with a certificate or bond number shall be identified in a proof of loss
by such numbers.
(4)
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 UNDERWRITER or after the expiration of twenty-four (24) months from
the discovery of such loss.
(5)
This bond
affords coverage only to the INSURED. No
claim, suit, action, or legal proceedings shall be brought under this bond by
anyone other than the INSURED.
V.
LIMIT OF
LIABILITY/NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY
Prior to the termination
of this bond, it shall continue in force for the limit stated in the applicable
section of ITEM 3. of the DECLARATIONS, notwithstanding any previous loss for
which the UNDERWRITER may have paid or be liable to pay under this bond
provided, that the liability of the UNDERWRITER under this bond with respect to
all loss resulting from:
(1)
any one act
of burglary, robbery or attempt thereat, in which no Employee is concerned or
implicated, or
(2)
any one
unintentional or negligent act on the part of any one person resulting in
damage to or destruction or misplacement of Property, or
(3)
all acts,
other than those specified in (1) above, of any one person, or
(4)
any one
casualty or event other than those specified in (1), (2), or (3) above,
shall be deemed to be
one loss and shall be limited to the applicable Limit of Liability stated in
ITEM 3. of the DECLARATIONS of this bond irrespective of the total amount of
such loss or losses. The Limit of
Liability shall not be cumulative in amounts from year to year or from period
to period.
Form F-6000-0
9
All acts, as specified
in (3) above, of any one person which directly or indirectly aid in any
way wrongful acts of any other person or persons or 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.
VI.
DEDUCTIBLE
The UNDERWRITER shall
not be liable under any Coverages under this bond because of loss unless the
amount of such loss, after deducting the net amount of all reimbursement and/or
recovery obtained or made by the INSURED, other than any amounts recovered
under any bond or policy of insurance issued by an insurance company and
covering such loss, or recoveries by the UNDERWRITER on account thereof prior
to payment by the UNDERWRITER of such loss, shall exceed the Deductible set
forth in ITEM 3. of the DECLARATIONS, and then for such amounts that are in
excess of the deductible, but in no event for more than the applicable Limit of
Liability stated in ITEM 3. of the DECLARATIONS.
There is no Deductible
applicable to any loss under Coverage I. sustained by any Investment Company.
VII.
ATTORNEYS
FEES AND COURT COSTS
The UNDERWRITER will
indemnify the INSURED for reasonable attorneys fees and court costs incurred
and paid by the INSURED in the defense, whether or not successful, fully
litigated on the merits or settled, of any suit or legal proceeding brought
against the INSURED to enforce the INSUREDS liability or alleged liability
because of any loss, claim or damage which, if established against the INSURED,
would constitute a loss sustained by the INSURED and covered under the terms of
this bond except that with respect to Coverage I. this Section shall only
apply in the event that:
(1)
an Employee
acknowledges being guilty of Larceny or Embezzlement,
(2)
an Employee
is adjudicated guilty of Larceny or Embezzlement, or
(3)
in the
absence of (1) or (2) above, an arbitration panel decides, after a
review of any agreed statement of facts between the UNDERWRITER and the
INSURED, that an Employee would be found guilty of Larceny or Embezzlement
if such Employee were prosecuted.
The INSURED shall at the
earliest practicable time, not to exceed thirty (30) days after the discovery
of any such claim, suit or legal proceeding, and at the request of the
UNDERWRITER, furnish copies of all pleadings and relevant papers to the
UNDERWRITER. The UNDERWRITER may, at its
sole option, elect to control the defense of all or part of such suit or legal
proceeding. The defense by the
UNDERWRITER shall be in the name of the INSURED through attorneys chosen by the
UNDERWRITER. The INSURED shall provide
all reasonable information and assistance required by the UNDERWRITER for such
defense.
If the amount demanded
in a suit or legal proceeding is greater than the Limit of Liability stated in
ITEM 3. of the DECLARATIONS for the applicable Coverage, or if a Deductible is
applicable, or both, the UNDERWRITERS liability for attorneys fees and court
costs incurred in defending all or part of such suit or legal proceeding is
limited to the proportion of such attorneys fees and court costs incurred that
the Limit of Liability stated in ITEM 3. of the DECLARATIONS for the applicable
Coverage bears to the total of the amount demanded in such suit or legal
proceeding.
All amounts indemnified
by the UNDERWRITER for attorneys fees and court costs shall be in addition to
the Limit of Liability stated in ITEM 3. of the DECLARATIONS.
If the UNDERWRITER
declines to defend the INSURED, no settlement or judgment against the INSURED
shall determine the existence, extent or amount of coverage under this bond
without the prior written consent of the UNDERWRITER and the UNDERWRITER shall
not be liable for any costs, fees and expenses incurred by the INSURED.
VIII.
VALUATION OF
PROPERTY
The value of any loss of
Property, other than books of account or other records used by the INSURED in
the conduct of its business, shall be determined by the average market value of
such Property on the business day immediately preceding discovery of such
loss except that the value of any Property replaced by the INSURED with the
consent of the UNDERWRITER prior to the settlement of any claim for such Property,
shall be the actual market value at the time of replacement.
Form F-6000-0
10
In the event of a loss
of interim certificates, warrants, rights or other securities, (as used herein,
options) which need to be presented to exercise the subscription, conversion,
redemption or deposit privileges, their value shall be:
a.
if such
options have not expired, the average market value of such options on the
business day immediately preceding the discovery of such loss, or the actual
market value at the time of agreed replacement as provided in the preceding
paragraph, or
b.
if such
options have expired at the time their loss is discovered, their market value
immediately preceding their expiration, or
c.
if no market
price is quoted for such Property or for such options, the value shall be
determined by agreement between the parties, or arbitration if the parties are
unable to agree to the value.
The value of any loss of
Property consisting of books of account or other records used by the INSURED
in the conduct of its business shall be the amount paid by the INSURED 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 INSURED for the
actual transcription or copying of data to reproduce such books of account or
other records.
IX.
VALUATION OF
PREMISES AND FURNISHINGS
In the event of loss or
damage to any office of the INSURED or to the furnishings, fixtures, supplies,
equipment, safes or vaults, the UNDERWRITER shall not be liable for more than
the actual cash value thereof, or for more than the actual cost of replacement
or repair. The UNDERWRITER may, at its
option, pay actual cash value or make replacement or repair. In the event the UNDERWRITER and the INSURED
cannot agree upon the actual cash value or the cost of replacement or repair,
it shall be determined by arbitration.
X.
SECURITIES
SETTLEMENT
In the event of a loss
of securities covered under this bond, the UNDERWRITER may, at its sole option,
purchase replacement securities, tender the value of the securities in money,
or issue its indemnity in order to allow the issuance of replacement
securities.
Indemnity will be
required from the INSURED under the terms of this Section against all
loss, cost or expense arising from the replacement of securities by the
UNDERWRITERS. The amount of such
indemnity from the INSURED shall be:
(1)
for
securities having a value of less than or equal to the applicable Deductible
one hundred percent (100%);
(2)
for
securities having a value greater than the Deductible but within the applicable
Limit of Liability the percentage that the Deductible bears to the value of
the securities;
(3)
for securities
having a value greater than the applicable Limit of Liability the percentage
that the Deductible and the portion in excess of the applicable Limit of
Liability bears to the value of the securities.
The value referred to in
(1), (2), and (3) above is the value provided for in SECTION VIII.
VALUATION OF PROPERTY, regardless of the value of such securities at the time
the loss under the UNDERWRITERS indemnity is sustained.
The UNDERWRITER is not
required to issue its indemnity for any portion of a loss of securities which
is not covered by this bond; however, the UNDERWRITER may do so at its sole
option.
The INSURED shall pay
the applicable proportion of the UNDERWRITERS premium charge for the
UNDERWRITERS indemnity as set for in (1), (2), and (3) above. No portion of the Limit of Liability shall be
used as payment of premium for any indemnity purchased by the INSURED to obtain
replacement securities.
XI.
SUBROGATION
ASSIGNMENT RECOVERY
In the event of a
payment under this bond by the UNDERWRITER, the UNDERWRITER shall be subrogated
to all of the INSUREDS rights of recovery against any person or entity to the
extent of such payment. On the request
of the UNDERWRITER, the INSURED shall deliver to the UNDERWRITER an assignment
of the INSUREDS rights, title and interest and causes of action against any
person or entity to the extent of such payment.
Recoveries, whether
realized by the UNDERWRITER or by the INSURED, shall be applied after deducting
the expense of such recovery, first to the INSUREDS loss which would otherwise
have been paid except that it exceeds the applicable Limit of Liability,
second, to the UNDERWRITER to amounts paid in settlement of the INSUREDS claim
and third, to the INSURED to the applicable Deductible. Recovery from reinsurance and/or indemnity of
the UNDERWRITER shall not be a recovery under this section.
Form F-6000-0
11
XII.
COOPERATION
OF INSURED
At the UNDERWRITERS
request and at reasonable times and places designated by the UNDERWRITER, the
INSURED shall submit to examination by the UNDERWRITER and subscribe to the
same under oath, produce for the UNDERWRITERS examination and copying, at its
own expense all relevant records, and cooperate with the UNDERWRITER in all
matters pertaining to the loss.
The INSURED shall
execute all papers and provide assistance to secure for the UNDERWRITER the
rights and causes of action provided for under this bond. The INSURED shall do nothing after loss to
prejudice such rights or causes of action.
XIII.
OTHER
INSURANCE
Coverage under this bond
shall apply excess over any valid and collectible insurance, indemnity or
suretyship obtained by or on behalf of the INSURED or a Transportation Company
or other entity on whose premises the loss occurred or which employed the
person who caused the loss or engaged the messenger conveying the Property
which was the subject of the loss.
XIV.
TERMINATION-CANCELLATION
If the bond is for a
single INSURED, it shall not be terminated or canceled unless written notice is
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 or cancellation.
If the bond is for a
joint INSURED, it shall not be terminated or canceled unless written notice is
given by the acting party to the affected party, and by the UNDERWRITER to all
INSURED 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 or cancellation.
This bond will terminate
as to any one INSURED, other than an Investment Company, immediately upon the
taking over of such INSURED by a receiver or other liquidator or by State or
Federal officials, or immediately upon the filing of a petition under any State
or Federal statute relative to bankruptcy or reorganization of the INSURED, or
assignment for the benefit of creditors of the INSURED, or immediately upon
such INSURED ceasing to exist, whether through merger with another entity,
disposition of all of its assets or otherwise.
The UNDERWRITER shall
refund the unearned premium in accordance with the standard short rate
cancellation tables if terminated by the INSURED or pro rata if terminated for
any other reason.
Coverage will terminate
as to any Employee:
(1)
at the time
that any partner, director, trustee, or officer or supervisory Employee not
acting in collusion with such Employee, learns of any dishonest act committed
by such Employee at any time, whether in the employment of the INSURED or
otherwise, whether or not such act is of the type covered under this bond, and
whether against the INSURED or any other person or entity or
(2)
sixty (60)
days after the receipt by each INSURED and by the Securities and Exchange
Commission, Washington, D.C., of a written notice from the UNDERWRITER of its
desire to terminate this bond as to such Employee.
XV.
CHANGE OR
MODIFICATION
No change in or
modification of this bond shall be effective except by written rider to this
bond issued by an Authorized Representative of the UNDERWRITER.
If this bond is for a
single INSURED, no change or modification which adversely affects the rights of
the INSURED shall be effective prior to sixty (60) days after written notice of
such change or modification has been furnished to the Securities and Exchange
Commission, Washington, D.C., by the acting party.
If this bond is for a
joint INSURED, no change or modification which adversely affects the rights of
the INSURED shall be effective prior to sixty (60) days after written notice of
such change or modification has been furnished to all insured Investment
Companies and to the Securities and Exchange Commission, Washington, D.C., by
the UNDERWRITER.
Form F-6000-0
12
RIDER
|
|
|
To be attached to and form part of Investment
Company Bond, No. FI 0240319 in favor of RMR Preferred Dividend Fund
This bond has been signed by our President and Secretary, but it shall
not be binding unless countersigned on the Declarations page by our duly
authorized representative.
|
|
|
Brian
S. Becker, Secretary
|
|
David
Zwiener, President
|
MANDATORY
ADOPTED MAY 2003
Form F-6016-0
1
RIDER
|
|
To be attached to and form part of Investment Company Bond, No. FI
0240319 in favor of RMR Preferred Dividend Fund
It is agreed that:
1.
GENERAL CONDITIONS
, B. NOTICE TO UNDERWRITER OF MERGERS,
CONSOLIDATIONS OR OTHER ACQUISITIONS is amended to include the following
paragraph:
If
the INSURED shall, while this bond is in force, establish any new Investment
Companies other than by consolidation or merger with, or purchase or
acquisition of assets or liabilities of, another institution, such Investment
Companies shall automatically be covered hereunder from the date of such
establishment without the payment of additional premium for the remainder of
such Bond Period.
2.
If the
INSURED shall, while this bond is in force, require an increase in limits to
comply with SEC Reg. 17g-1, due to an increase in asset size of current Investment
Companies covered under this bond or the addition of new Investment
Companies, such increase in limits shall automatically be covered hereunder
from the date of such increase without the payment of additional premium for
the remainder of the Bond Period.
3. Nothing herein is intended to alter the
terms, conditions and limitations of the bond other than as stated above.
4.
This rider shall become effective as of
12:01 a.m. on December 18, 2007 standard time.
AMEND
GENERAL CONDITIONS B.
NOTICE TO
UNDERWRITER OF MERGERS,
CONSOLIDATIONS OR OTHER ACQUISITIONS RIDER
ADOPTED MAY 2003
Form F-6018-0
1
RIDER
|
|
|
To be attached to and form part of Investment
Company Bond, No. FI 0240319 in favor of RMR Preferred Dividend Fund
It is agreed that:
1.
The
number of days notice is amended as follows:
Number of Days
Notice:
|
90
|
The number of days notice
to be given, by the UNDERWRITER, prior to termination or cancellation as
provided in
DEFINITIONS AND LIMITATIONS
, XIV.
TERMINATION-CANCELLATION is increased to the number of days shown above but in
no event less than 90 days.
2.
This
rider shall become effective as of 12:01 a.m. on December 18, 2007
standard time.
INCREASE NUMBER OF DAYS NOTICE
TERMINATION-CANCELLATION
ADOPTED MAY 2003
Form F-6019-0
1
Assistant Secretarys Certificate
I,
Karen Jacoppo-Wood, Assistant Secretary of RMR Preferred Dividend
Fund (the Trust)
, hereby certify that the
following resolutions were adopted by the Board of Trustees of the Trust (all
voting) and separately by a majority of the Trustees who are not interested
persons of the Trust, as such term is defined in the Investment Company Act of
1940, as amended, (the 1940 Act), at a meeting duly called and held on February 27,
2008, at which a quorum was present and acting throughout:
RESOLVED
, that a fidelity bond written by Hartford Casualty Insurance Company (Hartford)
having an aggregate coverage of $500,000 be, and it hereby is, approved, it
having been determined to be reasonable in form and amount, after giving due
consideration to all factors deemed relevant by this Board, including, among
other things, the value of the aggregate assets of the Trust to which any
covered person may have access, the arrangements for custody and safekeeping of
such assets, and the nature of the securities in its portfolio; and further
RESOLVED
, that the officers (and each individually) of the Trust be, and hereby
are, authorized to file or cause to be filed a copy of the fidelity bond and
the appropriate notices with the Securities and Exchange Commission in
accordance with paragraph (g) of Rule 17g-1 under the 1940 Act; and
further
RESOLVED
, that the Board of Trustees hereby determines that the annual premium of
$1,757 for the fidelity bond, issued by Hartford, is fair and reasonable and
that the annual premium for the fidelity bond be, and hereby is, ratified and
approved.
IN WITNESS WHEREOF, I have hereunto set my hand this
20th day of March 2008.
/s/
Karen Jacoppo-Wood
|
|
Karen
Jacoppo-Wood
|
Assistant
Secretary
|
Rmr Dividend (AMEX:RDR)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Rmr Dividend (AMEX:RDR)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024