INVESTMENT COMPANY
BOND
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Countersigned
by
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/s/
David
Castillo
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Signed, this 31
st
day of July,
2009.
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David
Castillo, Authorized Representative
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Form F-6000-0
INVESTMENT COMPANY
BOND
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
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Loss to the INSURED directly
resulting from “Larceny or Embezzlement” committed by any “Employee”,
acting alone or in collusion with
others.
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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.
Loss of, or damage to furnishings,
fixtures, supplies, equipment, safes or vaults within any of the INSURED’S
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.
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:
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a.
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in an armored motor vehicle,
including loading and unloading
thereof,
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b.
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in the custody of a natural person
acting as a messenger of the INSURED,
or
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c.
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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:
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2.
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securities issued in registered
form or negotiable instruments not payable to bearer, which are not
endorsed or are restrictively
endorsed.
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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.
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FORGERY OR
ALTERATION
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Loss to the INSURED directly resulting
from:
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a.
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“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
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b.
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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.”
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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.
INVESTMENT COMPANY
BOND
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:
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a.
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acquired, accepted or received,
sold, delivered, given value, extended credit, or assumed liability upon
any original “Securities, documents or other written instruments”
which:
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1.
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bear a “Forgery” or fraudulent
material alteration,
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2.
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have been lost or stolen,
or
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b.
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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.
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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.
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.
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COMPUTER SYSTEMS FRAUDULENT
ENTRY
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Loss to the INSURED directly resulting
from fraudulent entry of data into or the change of data elements or programs
within the INSURED’S 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:
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a.
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“Property” being transferred, paid
or delivered,
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b.
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an account of the INSURED, or of
its “Customer”, being added, deleted, debited, or credited,
or
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c.
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an unauthorized account or a
fictitious account being debited or
credited.
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VIII.
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VOICE INITIATED
TRANSACTION
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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 “Customer’s" account, provided such “Voice Initiated Transaction”
was:
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a.
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received at the INSURED’S offices
by those “Employees” of the INSURED authorized to receive the “Voice
Initiated Transaction”, and
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b.
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made by a person purporting to be
a “Customer”, and
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c.
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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
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d.
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initiated pursuant to a
preexisting written agreement between the “Customer” and the
INSURED.
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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.
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TELEFACSIMILE TRANSFER
FRAUD
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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
INSURED’s offices by those “Employees” of the INSURED authorized to receive the
Telefacsimile Device instruction and which:
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(1)
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purports and reasonably appears to
have originated from
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(a)
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a Client of the
INSURED,
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(b)
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another office of the INSURED,
or
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(c)
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another financial
institution,
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but, was not originated by the
Client or entity whose identification it bears and
Form F-6000-0
INVESTMENT COMPANY
BOND
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(2)
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such instruction contains a valid
test code which proves to have been used by a person who was not
authorized to use it and,
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(3)
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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.
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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.
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UNCOLLECTIBLE ITEMS OF
DEPOSIT
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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:
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a.
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redemptions or withdrawals of the
account to be effected,
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b.
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shares to be issued,
or
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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 INSURED’S standard collection procedures have been
utilized and have failed to result in collection.
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.
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:
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(a)
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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
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(b)
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for having refused to pay any
check or draft made or drawn by any “Customer” or any authorized
representative of such
“Customer”.
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XIII.
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UNAUTHORIZED SIGNATURES
COVERAGE
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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
“Customer's” 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 INSURED'S
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
INVESTMENT COMPANY
BOND
GENERAL CONDITIONS
A.
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OTHER COMPANIES INSURED UNDER THIS
BOND
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If more than one corporation, or
“Investment Company”, or combination thereof is included herein as the
INSURED:
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(1)
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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.
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(2)
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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.
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(3)
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The UNDERWRITER bears no
responsibility under this Bond for the proper application of any payment
made to the first named
INSURED.
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(4)
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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.
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(5)
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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.
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B.
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NOTICE
TO UNDERWRITER OF MERGERS,
CONSOLIDATIONS OR OTHER
ACQUISITIONS
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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:
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a.
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has or will occur in offices or on
premises acquired, or
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b.
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has or will be caused by an
“Employee” or “Employees” acquired,
or
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c.
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has or will arise out of the
assets or liabilities acquired, unless the
INSURED:
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i.
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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
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ii.
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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
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iii.
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upon obtaining such consent pays
an additional premium to the
UNDERWRITER.
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C.
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CHANGE OF CONTROL – NOTICE TO
UNDERWRITER
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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:
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(1)
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the names of the transferors and
transferees (or if the voting securities are registered in another name
the names of the beneficial
owners),
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(2)
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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
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(3)
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the total number of outstanding
voting securities.
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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.
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REPRESENTATIONS
MADE BY
INSURED
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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.
INVESTMENT COMPANY
BOND
DEFINITIONS AND
LIMITATIONS
For the purpose of the Coverage provided
by this bond:
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A.
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“Computer Systems”
means:
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(1)
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computers, including related
peripheral and storage
components,
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(2)
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systems and applications
software,
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(3)
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terminal devices,
and
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(4)
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related
communication networks
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by which data is electronically
assembled, transmitted, processed, stored, and retrieved.
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B.
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“
Counterfeit
” means an imitation of an actual
and valid original which is intended to deceive and be taken as the
original.
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C.
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“
Custodian
” means the institution designated
by an “Investment Company” to have possession and control of its
assets.
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D.
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“
Customer
” means an individual,
corporation, partnership, trust, or LLC which is a shareholder or
subscriber of the INSURED.
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(1)
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a corporate officer of the
INSURED;
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(2)
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a natural person while in the
regular service of the INSURED at any of the INSURED’S 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;
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(3)
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an attorney retained by the
INSURED or an employee of such attorney while either is performing legal
services for the
INSURED;
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(4)
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a person furnished by an
employment contractor to perform clerical, premises maintenance or
security duties for the INSURED under the INSURED’S supervision at any of
the INSURED’S offices or
premises;
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(5)
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an employee of an institution
which has been merged or consolidated with the INSURED prior to the
effective date of this
bond;
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(6)
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a student or intern pursuing
studies or performing duties in any of the INSURED’S
offices;
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(7)
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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:
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a.
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creating, preparing, modifying or
maintaining the INSURED’S computer software or programs;
or
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b.
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acting as a transfer agent or in
any other agency capacity in issuing checks, drafts or securities for the
INSURED;
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(8)
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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
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(9)
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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”.
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The term “Employee”, shall not include
any partner, officer or employee of a transfer agent, shareholder record keeper
or administrator:
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a.
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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
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b.
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which is a “bank” (as defined in
Section 2(a) of the Investment Company Act of
1940).
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Form
F-6000-0
INVESTMENT COMPANY
BOND
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 INSURED’S 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”.
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F.
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“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 one’s own
name.
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G.
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“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.
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H.
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“
Items
of Deposit” means one or more
checks or drafts drawn upon a financial institution in the United States
of America.
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I.
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“
Larceny
or Embezzlement” means “Larceny
or Embezzlement” as set forth in Section 37 of the Investment Company Act
of 1940.
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a.
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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;
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b.
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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;
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c.
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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
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d.
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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
INSURED’S 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.
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K.
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“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.
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L.
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“Transportation Company” means any
entity which provides its own or leased vehicles for
transportation
or provides freight forwarding or
air express services.
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M.
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“
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.
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N.
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“
Voice
Initiated Redemption” means any
redemption of shares issued by an “Investment Company” which is initiated
by voice over the telephone.
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O.
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“Voice Initiated Transaction(s)”
means any “Voice Initiated Redemption” or “Voice Initiated
Election
”.
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Form F-6000-0
INVESTMENT COMPANY
BOND
|
A.
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EXCLUSIONS APPLICABLE TO ALL
COVERAGES
|
This bond does not directly or
indirectly cover:
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(1)
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loss not reported to the
UNDERWRITER in writing within thirty (30) days after termination of all of
the Coverages under this
bond;
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(2)
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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;
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(3)
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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;
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(4)
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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:
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a.
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the issuance, purchase or sale of
securities,
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b.
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transactions on security or
commodity exchanges or over-the-counter
markets,
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c.
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investment advisors,
or
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unless such loss, in the absence of such
laws, rules or regulations, would be covered under Coverages I. or
IV.;
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(5)
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loss of potential income
including, but not limited to, interest and dividends not realized by the
INSURED or by any “Customer” of the
INSURED;
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(6)
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loss resulting from indirect or
consequential loss of any
nature;
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(7)
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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;
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(8)
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loss resulting from the effects of
nuclear fission, fusion, radioactivity, or chemical or biological
contamination;
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(9)
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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;
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(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;
|
INVESTMENT COMPANY
BOND
|
(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.
|
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.
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.
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 INSURED’S 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 UNDERWRITER’S 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
INVESTMENT COMPANY
BOND
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.
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
UNDERWRITER’S 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 UNDERWRITER’S premium charge for the UNDERWRITER’S 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
INSURED’S 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 INSURED’S 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 INSURED’S 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 INSURED'S 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.
INVESTMENT COMPANY
BOND
XII.
|
COOPERATION OF
INSURED
|
At the UNDERWRITER’S 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 UNDERWRITER’S 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.
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.
IN WITNESS WHEREOF, the Company has
caused this policy to be executed and attested, and if required by state law,
this policy shall not be valid unless countersigned by a duly authorized
representative of the Company.
HARTFORD FIRE INSURANCE
COMPANY
HOME OFFICE – HARTFORD,
CONNECTICUT
ADMINISTRATIVE OFFICES - HARTFORD,
CONNECTICUT
(A STOCK INSURANCE COMPANY MEMBER OF THE
HARTFORD)
/s/
Brian S. Becker
|
/s/
David Zwiener
|
Brian S. Becker,
Secretary
|
David Zwiener,
President
|
RN 00 U001 00 0593
To be attached to and form part of
Investment Company Bond, No. 00 FI 0258089-09 in favor of EM Telecommunications
Fund; Chile Fund; First
Israel Fund, Inc.; Indonesian Fund and
Latin America Equity Fund, Inc.
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
7/01/09 standard time.
|
AMEND GENERAL
CONDITIONS B.
NOTICE TO UNDERWRITER
OF MERGERS,
CONSOLIDATIONS OR
OTHER ACQUISITIONS RIDER
ADOPTED MAY
2003
Form F-6018-0
RIDER
|
|
To be attached to and form part of
Investment Company Bond, No. 00 FI 0258089-09 in favor of EM Telecommunications
Fund; Chile Fund; First Israel Fund, Inc.; Indonesian Fund and Latin America
Equity Fund, Inc.
It is agreed that:
|
1.
|
The Name of
Insured
(INSURED) shown in the
Declarations, Item 1. is amended to include the following
language:
|
and any interest which at inception or
renewal of this bond is 50% or more owned by any one or more of those named as
INSUREDS.
|
2.
|
Nothing herein is intended to
alter the terms, conditions and limitations of the bond other than as
stated above.
|
|
3.
|
This rider shall become effective
as of 12:01 a.m. on 7/01/09 standard
time.
|
SUBSIDIARY RIDER
ADOPTED MAY 2003
Form F-6002-0
THIS ENDORSEMENT CHANGES THE POLICY.
PLEASE READ IT CAREFULLY.
This endorsement, effective
on
|
|
7/01/09
|
At 12:01 A.M. standard
time
|
|
|
|
|
|
Forms a part of Policy
No.:
|
|
00 FI
0258089-09
|
Issued to:
|
|
EM Telecommunications Fund; Chile
Fund; First Israel
Fund, Inc.; Indonesian Fund and
Latin America Equity
Fund,
Inc.
|
|
|
|
By:
|
|
Hartford Fire Insurance
Company
|
MAILING ADDRESS FOR NOTICE
ENDORSEMENT
I.
|
Notice
of Claim or Wrongful Act
|
|
A.
|
It is hereby understood and agreed
that a notice of any claim or wrongful act shall be given in writing to
the following:
|
THE HARTFORD
CLAIMS DEPARTMENT
HARTFORD FINANCIAL
PRODUCTS
2 PARK AVENUE
NEW YORK, NEW YORK
10016
FACSIMILE: (212)
277-0915
|
B.
|
It is hereby understood and agreed
that where it is stated in the policy or declarations page that a notice
of any claim or wrongful act shall be given in writing to The Hartford,
One Hartford Plaza, Hartford CT 06155 shall be deleted in its entirety and
replaced with the following:
|
Notice of any claim or wrongful act
shall be given in writing to the following:
THE HARTFORD
CLAIMS DEPARTMENT
HARTFORD FINANCIAL
PRODUCTS
2 PARK AVENUE
NEW YORK, NEW YORK
10016
FACSIMILE: (212)
277-0915
HG 00 H009 00 0302
© 2002, The Hartford
|
A.
|
All notices for a claim or
wrongful act must be mailed to the address as specified above in Item (I)
of this endorsement.
|
|
B.
|
It is hereby understood and agreed
that all notices, except for a notice of claim or wrongful act, shall be
given in writing to the
following:
|
THE HARTFORD
COMPLIANCE
DEPARTMENT
HARTFORD FINANCIAL
PRODUCTS
2 PARK AVENUE
NEW YORK, NEW YORK
10016
|
C.
|
With the exception of notice of a
claim or wrongful act, it is hereby understood and agreed that where it is
stated in the policy or declarations page that a notice shall be given in
writing to The Hartford, One Hartford Plaza, Hartford CT 06155 shall be
deleted in its entirety and replaced with the
following:
|
All notices, except for a notice of
claim or wrongful act, shall be given in writing to the
following:
THE HARTFORD
COMPLIANCE
DEPARTMENT
HARTFORD FINANCIAL
PRODUCTS
2 PARK AVENUE
NEW YORK, NEW YORK
10016
All other terms and conditions of the
policy remain unchanged.
HG 00 H009 00 0302
© 2002, The Hartford
Producer Compensation
Notice
You can review and obtain information on
The Hartford’s
producer compensation practices at
www.thehartford.
com
or at 1-800-592-5717.
F-5267-0
HR 00 H093 00 0207
© 2007, The
Hartford