| |
Insuring Clauses
|
|
|
| |
|
|
|
| |
Employee
|
1. Loss resulting directly from Larceny
or Embezzlement committed by an 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.
|
|
| |
|
|
|
| |
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, 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.
|
|
| |
|
|
|
| |
|
For the purpose of this INSURING CLAUSE,
a mechanically reproduced facsimile signature is treated the same as a
handwritten signature.
|
|
| |
|
|
|
| |
Counterfeit Money
|
6. Loss resulting directly from the
receipt by the ASSURED in good faith of any Counterfeit money.
|
|
| |
|
|
|
| |
Threats To Person
|
7. Loss resulting directly from surrender
of Property away from an office of the ASSURED as a result of a threat
communicated to the ASSURED to do bodily harm to an Employee as defined in
SECTION 1.e. (1), (2) and (5), a Relative or invitee of such Employee, or a
resident of the household of such Employee, who is, or allegedly is, being
held captive provided, however, that prior to the surrender of such Property:
|
|
| |
|
a. the Employee who receives the threat
has made a reasonable effort to notify an officer of the ASSURED who is not
involved in such threat, and
|
|
| |
|
b. the ASSURED has made a reasonable
effort to notify the Federal Bureau of Investigation and local law
enforcement authorities concerning such threat.
|
|
| |
|
|
|
| |
|
It is agreed that for purposes of this
INSURING CLAUSE, any Employee of the ASSURED, as set forth in the preceding
paragraph, shall be deemed to be an ASSURED hereunder, but only with respect
to the surrender of money, securities and other tangible personal property in
which such Employee has a legal or equitable interest.
|
|
| |
|
|
|
| |
Computer System
|
8. Loss resulting directly from
fraudulent:
|
|
| |
|
a. entries of data into, or
|
|
| |
|
b. changes of data elements or programs
within,
|
|
| |
|
a Computer System, provided the
fraudulent entry or change causes:
|
|
| |
|
(1) funds or other property to be
transferred, paid or delivered,
|
|
| |
|
(2) an account of the ASSURED or of its
customer to be added, deleted, debited or credited, or
|
|
| |
|
(3) an unauthorized account or a
fictitious account to be debited or credited.
|
|
| |
|
|
|
| |
Voice Initiated Funds Transfer
Instruction
|
9. Loss resulting directly from Voice
Initiated Funds Transfer Instruction directed to the ASSURED authorizing the
transfer of dividends or redemption proceeds of Investment Company shares from
a Customer's account, provided such Voice Initiated Funds Transfer
Instruction was:
|
|
| |
|
a. received at the ASSURED'S offices by
those Employees of the ASSURED specifically authorized to receive the Voice
Initiated Funds Transfer Instruction,
|
|
| |
|
b. made by a person purporting to be a
Customer, and
|
|
| |
|
c. made by said person for the purpose of
causing the ASSURED or Customer to sustain a loss or making an improper
personal financial gain for such person or any other person.
|
|
| |
|
|
|
| |
|
In order for coverage to apply under this
INSURING CLAUSE, all Voice Initiated Funds Transfer Instructions must be
received and processed in accordance with the Designated Procedures outlined
in the APPLICATION furnished to the COMPANY.
|
|
| |
|
|
|
| |
Uncollectible Items of Deposit
|
10. Loss resulting directly from the
ASSURED having credited an account of a customer, shareholder or subscriber
on the faith of any Items of Deposit which prove to be uncollectible,
provided that the crediting of such account causes:
|
|
| |
|
a. redemptions or withdrawals to be
permitted,
|
|
| |
|
b. shares to be issued, or
|
|
| |
|
c. dividends to be paid,
|
|
| |
|
from an account of an Investment Company.
|
|
| |
|
|
|
| |
|
In order for coverage to apply under this
INSURING CLAUSE, the ASSURED must hold Items of Deposit for the minimum
number of days stated in the APPLICATION before permitting any redemptions or
withdrawals, issuing any shares or paying any dividends with respect to such
Items of Deposit.
|
|
| |
|
|
|
| |
|
Items of Deposit shall not be deemed
uncollectible until the ASSURED'S standard collection procedures have failed.
|
|
| |
|
|
|
| |
Audit Expense
|
11. Expense incurred by the ASSURED for
that part of the cost of audits or examinations required by any governmental
regulatory authority or self-regulatory organization to be conducted by such
authority, organization or their appointee by reason of the discovery of loss
sustained by the ASSURED and covered by this Bond.
|
|
| |
|
|
|
| |
General Agreements
|
|
|
| |
|
|
|
| |
Additional Companies Included As Assured
|
A. If more than one corporation, or
Investment Company, or any combination of them is included as the ASSURED
herein:
|
|
| |
|
(1) The total liability of the COMPANY
under this Bond for loss or losses sustained by any one or more or all of
them shall not exceed the limit for which the COMPANY would be liable under
this Bond if all such loss were sustained by any one of them.
|
|
| |
|
(2) Only the first named ASSURED shall be
deemed to be the sole agent of the others for all purposes under this Bond,
including but not limited to the giving or receiving of any notice or proof
required to be given and for the purpose of effecting or accepting any
amendments to or termination of this Bond. The COMPANY shall furnish each
Investment Company with a copy of the Bond and with any amendment thereto, together
with a copy of each formal filing of claim by any other named ASSURED and
notification of the terms of the settlement of each such claim prior to the
execution of such settlement.
|
|
| |
|
(3) The COMPANY shall not be responsible
for the proper application of any payment made hereunder to the first named
ASSURED.
|
|
| |
|
(4) Knowledge possessed or discovery made
by any partner, director, trustee, officer or supervisory employee of any
ASSURED shall constitute knowledge or discovery by all the ASSUREDS for the
purposes of this Bond.
|
|
| |
|
(5) If the first named ASSURED ceases for
any reason to be covered under this Bond, then the ASSURED next named on the
APPLICATION shall thereafter be considered as the first named ASSURED for the
purposes of this Bond.
|
|
| |
|
|
|
| |
Representation Made By Assured
|
B. The ASSURED represents that all
information it has furnished in the APPLICATION for this Bond or otherwise is
complete, true and correct. Such APPLICATION and other information constitute
part of this Bond.
|
|
| |
|
The ASSURED must promptly notify the
COMPANY of any change in any fact or circumstance which materially affects
the risk assumed by the COMPANY under this Bond.
|
|
| |
|
Any intentional misrepresentation,
omission, concealment or incorrect statement of a material fact, in the
APPLICATION or otherwise, shall be grounds for recision of this Bond.
|
|
| |
|
|
|
| |
Additional Offices Or Employees -
Consolidation, Merger Or Purchase Or Acquisition Of Assets Or Liabilities -
Notice To Company
|
C. If the ASSURED, other than an
Investment Company, while this Bond is in force, merges or consolidates with,
or purchases or acquires assets or liabilities of another institution, the
ASSURED shall not have the coverage afforded under this Bond for loss which
has:
|
|
| |
|
(1) occurred or will occur on premises,
or
|
|
| |
|
(2) been caused or will be caused by an
employee, or
|
|
| |
|
(3) arisen or will arise out of the
assets or liabilities,
|
|
| |
|
of such institution, unless the ASSURED:
|
|
| |
|
a. gives the COMPANY written notice of
the proposed consolidation, merger or purchase or acquisition of assets or
liabilities prior to the proposed effective date of such action, and
|
|
| |
|
b. obtains the written consent of the
COMPANY to extend some or all of the coverage provided by this Bond to such
additional exposure, and
|
|
| |
|
c. on obtaining such consent, pays
to the COMPANY an additional premium.
|
|
| |
|
|
|
| |
Change Of Control - Notice To Company
|
D. When the ASSURED learns of a change in
control (other than in an Investment Company), as set forth in Section 2(a)
(9) of the Investment Company Act of 1940, the ASSURED shall within sixty
(60) days give written notice to the COMPANY setting forth:
|
|
| |
|
(1) the names of the transferors and
transferees (or the names of the beneficial owners if the voting securities
are registered in another name),
|
|
| |
|
(2) the total number of voting securities
owned by the transferors and the transferees (or the beneficial owners), both
immediately before and after the transfer, and
|
|
| |
|
(3) the total number of outstanding voting
securities.
|
|
| |
|
Failure to give the required notice shall
result in termination of coverage for any loss involving a transferee, to be
effective on the date of such change in control.
|
|
| |
|
|
|
| |
Court Costs And Attorney's Fees
|
E. The COMPANY will indemnify the ASSURED
for court costs and reasonable attorneys' fees incurred and paid by the
ASSURED in defense, whether or not successful, whether or not fully litigated
on the merits and whether or not settled, of any claim, suit or legal
proceeding with respect to which the ASSURED would be entitled to recovery
under this Bond. However, with respect to INSURING CLAUSE 1., this Section
shall only apply in the event that:
|
|
| |
|
(1) an Employee admits to being
guilty of Larceny or Embezzlement,
|
|
| |
|
(2) an Employee is adjudicated to be
guilty of Larceny or Embezzlement, or
|
|
| |
|
(3) in the absence of 1 or 2 above, an
arbitration panel agrees, after a review of an agreed statement of facts
between the COMPANY and the ASSURED, that an Employee would be found guilty
of Larceny or Embezzlement if such Employee were prosecuted.
|
|
| |
|
|
|
| |
|
The ASSURED shall promptly give notice to
the COMPANY of any such suit or legal proceeding and at the request of the
COMPANY shall furnish copies of all pleadings and pertinent papers to the
COMPANY. The COMPANY may, at its sole option, elect to conduct the defense
of all or part of such legal proceeding. The defense by the COMPANY shall be
in the name of the ASSURED through attorneys selected by the COMPANY. The
ASSURED shall provide all reasonable information and assistance as required
by the COMPANY for such defense.
|
|
| |
|
If the COMPANY declines to defend the
ASSURED, no settlement without the prior written consent of the COMPANY nor
judgment against the ASSURED shall determine the existence, extent or amount
of coverage under this Bond.
|
|
| |
|
If the amount demanded in any such suit
or legal proceeding is within the DEDUCTIBLE AMOUNT, if any, the COMPANY
shall have no liability for court costs and attorney's fees incurred in
defending all or part of such suit or legal proceeding.
|
|
| |
|
If the amount demanded in any such suit
or legal proceeding is in excess of the LIMIT OF LIABILITY stated in ITEM 2.
of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S liability
for court costs and attorney's fees incurred in defending all or part of such
suit or legal proceedings is limited to the proportion of such court costs
and attorney's fees incurred that the LIMIT OF LIABILITY stated in ITEM 2. of
the DECLARATIONS for the applicable INSURING CLAUSE bears to the total of the
amount demanded in such suit or legal proceeding.
|
|
| |
|
If the amount demanded is any such suit
or legal proceeding is in excess of the DEDUCTIBLE AMOUNT, if any, but within
the LIMIT OF LIABILITY stated in ITEM 2. of the
DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S liability for
court costs and attorney's fees incurred in defending all or part of such
suit or legal proceedings shall be limited to the proportion of such court
costs or attorney's fees that the amount demanded that would be payable under
this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total
amount demanded.
|
|
| |
|
|
|
| |
|
Amounts paid by the COMPANY for court
costs and attorneys' fees shall be in addition to the LIMIT OF LIABILITY
stated in ITEM 2. of the DECLARATIONS.
|
|
| |
|
|
|
| |
Conditions & 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
|
|
| |
|
(8) each natural person, partnership or
corporation authorized by written agreement with the ASSURED to perform
services as electronic data processor of checks or other accounting records
related to such checks but only while such person, partnership or corporation
is actually performing such services and not:
|
|
| |
|
a. creating, preparing, modifying or
maintaining the ASSURED'S computer software or programs, or
|
|
| |
|
b. acting as transfer agent or in any
other agency capacity in issuing checks, drafts or securities for the
ASSURED,
|
|
| |
|
(9) any partner, officer or employee of
an investment advisor, an underwriter (distributor), a transfer agent or
shareholder accounting recordkeeper, or an administrator, for an Investment
Company while performing acts coming within the scope of the customary and
usual duties of an officer or employee of an Investment Company or acting as
a member of any committee duly elected or appointed to examine, audit or have
custody of or access to Property of an Investment Company.
|
|
| |
|
The term Employee shall not include any
partner, officer or employee of a transfer agent, shareholder accounting
recordkeeper or administrator:
|
|
| |
|
a. which is not an "affiliated
person" (as defined in Section 2(a) of the Investment Company Act of
1940) of an Investment Company or of the investment advisor or underwriter
(distributor) of such Investment Company, or
|
|
| |
|
b. which is a "bank" (as
defined in Section 2(a) of the Investment Company Act of 1940).
|
|
| |
|
This 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.
|
|
| |
|
|
|
| |
|
f. Forgery means the signing of the name
of another natural person with the intent to deceive but does not mean a
signature which consists in whole or in part of one's own name, with or
without authority, in any capacity for any purpose.
|
|
| |
|
g. Investment Company means any
investment company registered under the Investment Company Act of 1940 and
listed under the NAME OF ASSURED on the DECLARATIONS.
|
|
| |
|
h. Items of Deposit means one or more
checks or drafts drawn upon a financial institution in the United States of
America.
|
|
| |
|
i. Larceny or Embezzlement means larceny
or embezzlement as defined in Section 37 of the Investment Company Act of
1940.
|
|
|
|
|
j. Property means money, revenue and
other stamps; securities; including any note, stock, treasury stock, bond,
debenture, evidence of indebtedness, certificate of deposit, certificate of
interest or participation in any 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.
|
|
| |
|
m. Subsidiary means any organization
that, at the inception date of this Bond, is named in the APPLICATION or is
created during the BOND PERIOD and of which more than fifty percent (50%) of
the outstanding securities or voting rights representing the present right to
vote for election of directors is owned or controlled by the ASSURED either
directly or through one or more of its subsidiaries.
|
|
| |
|
n. Transportation Company means any organization
which provides its own or its leased vehicles for transportation or which
provides freight forwarding or air express services.
|
|
| |
|
o. Voice Initiated Election means any
election concerning dividend options available to Investment Company shareholders
or subscribers which is requested by voice over the telephone.
|
|
| |
|
p. Voice Initiated Redemption means
any redemption of share issued by and Investment Company which is requested
by voice over telephone.
|
|
| |
|
q. Voice Initiated Funds Transfer Instruction
means any Voice Initiated Redemption or Voice Initiated Election.
|
|
| |
|
For the purposes of these definitions,
the singular includes the plural and the plural includes the singular, unless
otherwise indicated.
|
|
| |
|
|
|
| |
General Exclusions - Applicable to All
Insuring Clauses
|
2. This bond does not directly or
indirectly cover:
|
|
| |
|
a. loss not reported to the COMPANY in
writing within sixty (60) days after termination of this Bond as an entirety;
|
|
| |
|
b. loss due to riot or civil commotion outside
the United States of America and Canada, or any loss due to military, naval
or usurped power, war or insurrection. This Section 2.b., however, shall not
apply to loss which occurs in transit in the circumstances recited in
INSURING CLAUSE 3., provided that when such transit was initiated there was
no knowledge on the part of any person acting for the ASSURED of such riot,
civil commotion, military, naval or usurped power, war or insurrection;
|
|
| |
|
c. loss resulting from the effects of
nuclear fission or fusion or radioactivity;
|
|
| |
|
d. loss of potential income including,
but not limited to, interest and dividends not realized by the ASSURED or by
any customer of the ASSURED;
|
|
| |
|
e. damages of any type for which the
ASSURED is legally liable, except compensatory damages, but not multiples
thereof, arising from a loss covered under this Bond;
|
|
| |
|
f. costs, fees and expenses incurred by
the ASSURED in establishing the existence of or amount of loss under this
Bond, except to the extent covered under INSURING CLAUSE 11.;
|
|
| |
|
g. loss resulting from indirect or
consequential loss of any nature;
|
|
| |
|
h. loss resulting from dishonest acts by
any member of the Board of Directors or Board of Trustees of the ASSURED who
is not an Employee, acting alone or in collusion with others;
|
|
| |
|
i. loss, or that part of any loss,
resulting solely from any violation by the ASSURED or by any Employee:
|
|
| |
|
(1) of any law regulating:
|
|
| |
|
a. the issuance, purchase or sale of
securities,
|
|
| |
|
b. securities transactions on security or
commodity exchanges or the over the counter market,
|
|
| |
|
c. investment companies,
|
|
| |
|
d. investment advisors, or
|
|
| |
|
(2) of any rule or regulation made
pursuant to any such law; or
|
|
| |
|
j. loss of confidential information,
material or data;
|
|
| |
|
k. loss resulting from voice requests or
instructions received over the telephone, provided however, this Section 2.k.
shall not apply to INSURING CLAUSE 7. or 9.
|
|
| |
|
|
|
| |
Specific Exclusions - Applicable To All
Insuring Clauses Except Insuring Clause 1.
|
3. This Bond does not directly or
indirectly cover:
|
|
| |
|
a. loss caused by an Employee, provided,
however, this Section 3.a. shall not apply to loss covered under INSURING
CLAUSE 2. or 3. which results directly from misplacement, mysterious
unexplainable disappearance, or damage or destruction of Property;
|
|
| |
|
b. loss through the surrender of property
away from premises of the ASSURED as a result of a threat:
|
|
| |
|
(1) to do bodily harm to any natural
person, except loss of Property in transit in the custody of any person
acting as messenger of the ASSURED, provided that when such transit was
initiated there was no knowledge by the ASSURED of any such threat, and
provided further that this Section 3.b. shall not apply to INSURING CLAUSE
7., or
|
|
| |
|
(2) to do damage to the premises or
Property of the ASSURED;
|
|
| |
|
c. loss resulting from payments made
or withdrawals from any account involving erroneous credits to such account;
|
|
| |
|
d. loss involving Items of Deposit which
are not finally paid for any reason provided however, that this Section 3.d.
shall not apply to INSURING CLAUSE 10.;
|
|
| |
|
e. loss of property while in the mail;
|
|
| |
|
f. loss resulting from the failure for
any reason of a financial or depository institution, its receiver or other
liquidator to pay or deliver funds or other Property to the ASSURED provided
further that this Section 3.f. shall not apply to loss of Property resulting
directly from robbery, burglary, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal from the possession, custody or
control of the ASSURED.
|
|
| |
|
g. loss of Property while in the custody
of a Transportation Company, provided however, that this Section 3.g. shall
not apply to INSURING CLAUSE 3.;
|
|
| |
|
h. loss resulting from entries or changes
made by a natural person with authorized access to a Computer System who acts
in good faith on instructions, unless such instructions are given to that
person by a software contractor or its partner, officer, or employee
authorized by the ASSURED to design, develop, prepare, supply, service, write
or implement programs for the ASSURED's Computer System; or
|
|
| |
|
i. loss resulting directly or indirectly
from the input of data into a Computer System terminal, either on the
premises of the customer of the ASSURED or under the control of such a
customer, by a customer or other person who had authorized access to the
customer's authentication mechanism.
|
|
| |
|
|
|
| |
Specific Exclusions - Applicable To All
Insuring Clauses Except Insuring Clauses 1., 4., And 5.
|
4. This bond does not directly or
indirectly cover:
|
|
| |
|
a. loss resulting from the complete or
partial non-payment of or default on any loan whether such loan was procured
in good faith or through trick, artifice, fraud or false pretenses; provided,
however, this Section 4.a. shall not apply to INSURING CLAUSE 8.;
|
|
| |
|
b. loss resulting from forgery or any
alteration;
|
|
| |
|
c. loss involving a counterfeit provided,
however, this Section 4.c. shall not apply to INSURING CLAUSE 5. or 6.
|
|
| |
|
|
|
| |
Limit Of Liability/Non- Reduction And
Non- Accumulation Of Liability
|
5. At all times prior to termination
of this Bond, this Bond shall continue in force for the limit stated in the
applicable sections of ITEM 2. of the DECLARATIONS, notwithstanding any
previous loss for which the COMPANY may have paid or be liable to pay under
this Bond provided, however, that the liability of the COMPANY under this
Bond with respect to all loss resulting from:
|
|
| |
|
a. any one act of burglary, robbery or
hold-up, or attempt thereat, in which no
|
|
| |
|
Employee is concerned or implicated, or
|
|
| |
|
b. any one unintentional or negligent act
on the part of any one person resulting in damage to or destruction or
misplacement of Property, or
|
|
| |
|
c. all acts, other than those specified
in a. above, of any one person, or
|
|
| |
|
d. any one casualty or event other than
those specified in a., b., or c. above,
|
|
| |
|
shall be deemed to be one loss and shall
be limited to the applicable LIMIT OF LIABILITY stated in ITEM 2. of the
DECLARATIONS of this Bond irrespective of the total amount of such loss or
losses and shall not be cumulative in amounts from year to year or from
period to period.
|
|
| |
|
All acts, as specified in c. above, of
any one person which
|
|
| |
|
i. directly or indirectly aid in any way wrongful
acts of any other person or persons, or
|
|
| |
|
ii. permit the continuation of wrongful
acts of any other person or persons
|
|
| |
|
whether such acts are committed with or
without the knowledge of the wrongful acts of the person so aided, and
whether such acts are committed with or without the intent to aid such other
person, shall be deemed to be one loss with the wrongful acts of all persons
so aided.
|
|
| |
|
|
|
| |
Discovery
|
6. This Bond applies only to loss first
discovered by an officer of the ASSURED during the BOND PERIOD. Discovery
occurs at the earlier of an officer of the ASSURED being aware of:
|
|
| |
|
a. facts which may subsequently result in
a loss of a type covered by this Bond, or
|
|
| |
|
b. an actual or potential claim in which
it is alleged that the ASSURED is liable to a third party,
|
|
| |
|
regardless of when the act or acts
causing or contributing to such loss occurred, even though the amount of loss
does not exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or
details of loss may not then be known.
|
|
| |
|
|
|
| |
Notice To Company - Proof - Legal
Proceedings Against Company
|
7. a. The ASSURED shall give the COMPANY
notice thereof at the earliest practicable moment, not to exceed sixty (60)
days after discovery of loss, in an amount that is in excess of 50% of the
applicable DEDUCTIBLE AMOUNT, as stated in ITEM 2. of the DECLARATIONS.
|
|
| |
|
b. The ASSURED shall furnish to the
COMPANY proof of loss, duly sworn to, with full particulars within six (6)
months after such discovery.
|
|
| |
|
c. Securities listed in a proof of loss
shall be identified by certificate or bond numbers, if issued with them.
|
|
| |
|
d. Legal proceedings for the recovery of
any loss under this Bond shall not be brought prior to the expiration of
sixty (60) days after the proof of loss is filed with the COMPANY or after
the expiration of twenty-four (24) months from the discovery of such loss.
|
|
| |
|
e. This Bond affords coverage only in
favor of the ASSURED. No claim, suit, action or legal proceedings shall be
brought under this Bond by anyone other than the ASSURED
|
|
| |
|
f. Proof of loss involving Voice
Initiated Funds Transfer Instruction shall include electronic recordings of
such instructions.
|
|
| |
|
|
|
| |
Deductible Amount
|
8. The COMPANY shall not be liable under
any INSURING CLAUSES of this Bond on account of loss unless the amount of
such loss, after deducting the net amount of all reimbursement and/or
recovery obtained or made by the ASSURED, other than from any Bond or policy
of insurance issued by an insurance company and covering such loss, or by the
COMPANY on account thereof prior to payment by the COMPANY of such loss,
shall exceed the DEDUCTIBLE AMOUNT set forth in ITEM 3. of the DECLARATIONS,
and then for such excess only, but in no event for more than the applicable
LIMITS OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
|
|
| |
|
There shall be no deductible applicable
to any loss under INSURING CLAUSE 1. sustained by any Investment Company.
|
|
| |
|
|
|
| |
Valuation
|
9. BOOKS OF ACCOUNT OR OTHER RECORDS
|
|
| |
|
The value of any loss of Property consisting
of books of account or other records used by the ASSURED in the conduct of
its business shall be the amount paid by the ASSURED for blank books, blank
pages, or other materials which replace the lost books of account or other
records, plus the cost of labor paid by the ASSURED for the actual
transcription or copying of data to reproduce such books of account or other
records.
|
|
| |
|
|
|
| |
|
The value of any loss of Property other
than books of account or other records used by the ASSURED in the conduct of
its business, for which a claim is made shall be determined by the average
market value of such Property on the business day immediately preceding
discovery of such loss provided, however, that the value of any Property
replaced by the ASSURED with the consent of the COMPANY and prior to the
settlement of any claim for such Property shall be the actual market value at
the time of replacement.
|
|
|
|
|
In the case of a loss of interim
certificates, warrants, rights or other securities, the production of which
is necessary to the exercise of subscription, conversion, redemption or
deposit privileges, the value of them shall be the market value of such
privileges immediately preceding their expiration if said loss is not
discovered until after their expiration. If no market price is quoted for
such Property or for such privileges, the value shall be fixed by agreement
between the parties.
|
|
| |
|
OTHER PROPERTY
|
|
| |
|
The value of any loss of Property, other
than as stated above, shall be the actual cash value or the cost of repairing
or replacing such Property with Property of like quality and value, whichever
is less.
|
|
| |
|
|
|
| |
Securities Settlement
|
10. In the event of a loss of securities
covered under this Bond, the COMPANY may, at its sole discretion, purchase replacement
securities, tender the value of the securities in money, or issue its
indemnity to effect replacement securities.
|
|
| |
|
The indemnity required from the ASSURED
under the terms of this Section against all loss, cost or expense arising
from the replacement of securities by the COMPANY'S indemnity shall be:
|
|
| |
|
a. for securities having a value less
than or equal to the applicable DEDUCTIBLE AMOUNT - one hundred (100%)
percent;
|
|
| |
|
b. for securities having a value in
excess of the DEDUCTIBLE AMOUNT but within the applicable LIMIT OF LIABILITY
- the percentage that the DEDUCTIBLE AMOUNT bears to the value of the
securities;
|
|
| |
|
c. for securities having a value greater
than the applicable LIMIT OF LIABILITY - the percentage that the DEDUCTIBLE
AMOUNT and portion in excess of the applicable LIMIT OF LIABILITY bears to
the value of the securities.
|
|
| |
|
|
|
| |
|
The value referred to in Section 10.a.,
b., and c. is the value in accordance with Section 9, Valuation, regardless
of the value of such securities at the time the loss under the COMPANY'S
indemnity is sustained.
|
|
| |
|
The COMPANY is not required to issue its
indemnity for any portion of a loss of securities which is not covered by
this Bond; however, the COMPANY may do so as a courtesy to the ASSURED and at
its sole discretion.
|
|
| |
|
The ASSURED shall pay the proportion of
the Company's premium charge for the Company's indemnity as set forth in
Section 10.a., b., and c. No portion of the LIMIT OF LIABILITY shall be used
as payment of premium for any indemnity purchased by the ASSURED to obtain
replacement securities.
|
|
| |
|
|
|
| |
Subrogation - Assignment - Recovery
|
11. In the event of a payment under this
Bond, the COMPANY shall be subrogated to all of the ASSURED'S rights of
recovery against any person or entity to the extent of such payment. On
request, the ASSURED shall deliver to the COMPANY an assignment of the
ASSURED'S rights, title and interest and causes of action against any person
or entity to the extent of such payment.
|
|
| |
|
|
|
| |
|
Recoveries, whether effected by the
COMPANY or by the ASSURED, shall be applied net of the expense of such
recovery in the following order:
|
|
| |
|
a. first, to the satisfaction of the
ASSURED'S loss which would otherwise have been paid but for the fact that it
is in excess of the applicable LIMIT OF LIABILITY,
|
|
| |
|
b. second, to the COMPANY in satisfaction
of amounts paid in settlement of the ASSURED'S claim,
|
|
| |
|
c. third, to the ASSURED in satisfaction
of the applicable DEDUCTIBLE AMOUNT, and
|
|
| |
|
d. fourth, to the ASSURED in satisfaction
of any loss suffered by the ASSURED which was not covered under this Bond.
|
|
| |
|
Recovery from reinsurance or indemnity of
the COMPANY shall not be deemed a recovery under this section.
|
|
| |
|
|
|
| |
Cooperation Of Assured
|
12. At the COMPANY'S request and at
reasonable times and places designated by the COMPANY, the ASSURED shall:
|
|
| |
|
a. submit to examination by the COMPANY
and subscribe to the same under oath,
|
|
| |
|
b. produce for the COMPANY'S examination
all pertinent records, and
|
|
| |
|
c. cooperate with the COMPANY in all
matters pertaining to the loss.
|
|
| |
|
The ASSURED shall execute all papers and
render assistance to secure to the COMPANY the rights and causes of action
provided for under this Bond. The ASSURED shall do nothing after loss to
prejudice such rights or causes of action.
|
|
| |
|
|
|
| |
Termination
|
13. If the Bond is for a sole ASSURED, it
shall not be terminated unless written notice shall have been given by the
acting party to the affected party and to the Securities and Exchange
Commission, Washington, D.C., not less than sixty (60) days prior to the
effective date of such termination.
|
|
| |
|
If the Bond is for a joint ASSURED, it
shall not be terminated unless written notice shall have been given by the
acting party to the affected party, and by the COMPANY to all ASSURED
Investment Companies and to the Securities and Exchange Commission,
Washington, D.C., not less than sixty (60) days prior to the effective date
of such termination.
|
|
| |
|
This Bond will terminate as to any one ASSURED,
other than an Investment Company:
|
|
| |
|
a. immediately on the taking over of such
ASSURED by a receiver or other liquidator or by State or Federal officials,
or
|
|
| |
|
b. immediately on the filing of a
petition under any State or Federal statute relative to bankruptcy or
reorganization of the ASSURED, or assignment for the benefit of creditors of
the ASSURED, or
|
|
| |
|
c. immediately upon such ASSURED ceasing
to exist, whether through merger into another entity, disposition of all of
its assets or otherwise.
|
|
| |
|
The COMPANY shall refund the unearned
premium computed at short rates in accordance with the standard short rate
cancellation tables if terminated by the ASSURED or pro rata if terminated
for any other reason.
|
|
| |
|
If any partner, director, trustee, or
officer or supervisory employee of an ASSURED not acting in collusion with an
Employee learns of any dishonest act committed by such Employee at any time,
whether in the employment of the ASSURED or otherwise, whether or not such
act is of the type covered under this Bond, and whether against the ASSURED
or any other person or entity, the ASSURED:
|
|
| |
|
a. shall immediately remove such Employee
from a position that would enable such Employee to cause the ASSURED to
suffer a loss covered by this Bond; and
|
|
| |
|
b. within forty-eight (48) hours of
learning that an Employee has committed any dishonest act, shall notify the
COMPANY, of such action and provide full particulars of such dishonest act.
|
|
| |
|
The COMPANY may terminate coverage as
respects any Employee sixty (60) days after written notice is received by
each ASSURED Investment Company and the Securities and Exchange Commission,
Washington, D.C. of its desire to terminate this Bond as to such Employee.
|
|
| |
|
|
|
| |
Other Insurance
|
14. Coverage under this Bond shall apply
only as excess over any valid and collectible insurance, indemnity or
suretyship obtained by or on behalf of:
|
|
| |
|
a. the ASSURED,
|
|
| |
|
b. a Transportation Company, or
|
|
| |
|
c. another entity on whose premises the
loss occurred or which employed the person causing the loss or engaged the
messenger conveying the Property involved.
|
|
| |
|
|
|
| |
Conformity
|
15. If any limitation within this Bond is
prohibited by any law controlling this Bond's construction, such limitation
shall be deemed to be amended so as to equal the minimum period of limitation
provided by such law.
|
|
| |
|
|
|
| |
Change or Modification
|
16. This Bond or any instrument amending
or affecting this Bond may not be changed or modified orally. No change in or
modification of this Bond shall be effective except when made by written
endorsement to this Bond signed by an authorized representative of the
COMPANY.
|
|
| |
|
If this Bond is for a sole ASSURED, no
change or modification which would adversely affect the rights of the ASSURED
shall be effective prior to sixty (60) days after written notice has been
furnished to the Securities and Exchange Commission, Washington, D.C., by the
acting party.
|
|
| |
|
If this Bond is for a joint ASSURED, no
charge or modification which would adversely affect the rights of the ASSURED
shall be effective prior to sixty (60) days after written notice has been
furnished to all insured Investment Companies and to the Securities and
Exchange Commission, Washington, D.C., by the COMPANY.
|
|
| |
|
|
|
|
|
Chubb Producer Compensation
|
|
|
|
Practices & Policies
|
|
|
|
|
|
|
|
|
Chubb believes that policyholders should have access
to information about Chubb's practices and policies related
to the payment of compensation to brokers and
independent agents. You can obtain that information by accessing our website
at http://www.chubbproducercompensation.com or
by calling the following toll-free 1-866-512-28626
|
|
|
|
|
|
|
|
|
|