POLICY COVER SHEET
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Job Name: XP3312I
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Print Date and Time:
07/29/09 14:33
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File Number: O617O
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Business Center/
Original Business Unit:
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Policy Number:
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483PB0866
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Name of insured:
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CLOUGH GLOBAL
ALLOCATION FUND
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Agency Number:
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3164895
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Department or Expense
Center:
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001
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Underwriter:
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1286261
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Underwriting Team:
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Data Entry Person:
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PEDEN,KATHRYN
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Date and Time:
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07/29/09 16:44 001
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Special Instructions
Policy Commencement Date:
07/27/09
THIS POLICY CONTAINS
FORMS SELECTED THROUGH DOCUMENT SELECT
THE FOLLOWING SELECTED
FORMS ARE NOT APPROVED ON THE FORMS STATUS TABLE
FORM NBR
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EDITION
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CO
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STATE
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TRANS DATE
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*
ND059
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11.06
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1
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CO
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2009-07-27*
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The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
40724 Ed.12-90 Printed in
U.S.A. INSURED COPY
DELIVERY INVOICE
Company: St Paul Fire and
Marine Insurance Company
INSURED
CLOUGH GLOBAL ALLOCATION
FUND
1290 BROADWAY SUITE 1100
DENVER CO 80203
AGENT
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Marsh Affinity Group
Services
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12421 Merideth Drive
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Urbandale, IA 50398
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Policy
Inception/Effective Date:
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07/27/09
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Agency Number:
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3164895
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Marsh Affinity Group
Services
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Transaction Type:
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Renewal of 483PB0866
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Transaction number:
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001
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Processing date:
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07/28/2009
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Policy Number:
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483PB0866
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Policy Description
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Amount Surtax/
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Number
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Surcharge
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07/27/2008 Investment
Company Blanket Bond $8,875
Policy Period: 07/27/2009
- 07/27/2010
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
40724 Ed.12-90 Printed in
U.S.A. INSURED COPY
1
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ND044 Rev. 1-08
2
IMPORTANT NOTICE -
INDEPENDENT AGENT AND BROKER COMPENSATION NO COVERAGE IS PROVIDED BY THIS
NOTICE. THIS NOTICE DOES NOT AMEND ANY PROVISION OF YOUR POLICY. YOU SHOULD
REVIEW YOUR ENTIRE POLICY CAREFULLY FOR COMPLETE INFORMATION ON THE COVERAGES
PROVIDED AND TO DETERMINE YOUR RIGHTS AND DUTIES UNDER YOUR POLICY. PLEASE
CONTACT YOUR AGENT OR BROKER IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE OR ITS
CONTENTS. IF THERE IS ANY CONFLICT BETWEEN YOUR POLICY AND THIS NOTICE, THE
PROVISIONS OF YOUR POLICY PREVAIL.
For information about how
Travelers compensates independent agents and brokers, please visit
www.travelers.com, call our toll-free telephone number, 1-866-904-8348, or you
may request a written copy from Marketing at One Tower Square, 2GSA, Hartford,
CT 06183.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ND059 Ed. 11-06 -1
2006 The St. Paul
Travelers Companies, Inc. All Rights Reserved
1
HOW TO REPORT LOSSES, CLAIMS,
OR POTENTIAL CLAIMS TO TRAVELERS
Reporting new losses,
claims, or potential claims promptly can be critical. It helps to resolve
covered losses or claims as quickly as possible and often reduces the overall
cost.
Prompt reporting:
better protects the
interests of all parties; helps Travelers to try to resolve losses or claims
more quickly; and often reduces the overall cost of a loss or claim - losses or
claims reported more than five days after they happen cost on average 35% more
than those reported earlier. Report losses, claims, or potential claims to
Travelers easily and quickly by fax, U S mail, or email.
FAX
Use this number to report
a loss, claim, or potential claim by fax toll free.
1-888-460-6622
US MAIL
Use this address to
report a loss, claim, or potential claim by U S Mail.
Bond-FPS Claims
Department
Travelers
Mail Code NB08F
385 Washington Street
Saint Paul, Minnesota
55102
EMAIL
Use this address to
report a loss, claim, or potential claim by email.
Pro.E&O.Claim.Reporting@SPT.com
This is a general
description of how to report a loss, claim, or potential claim under this
policy or bond. This description does not replace or add to the terms of this
policy or bond. The policy or bond alone determines the scope of coverage.
Please read it carefully for complete information on coverage. Contact your
agent or broker if you have any questions about coverage.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
40705 Ed.5-84 Form List
St.Paul Fire and Marine
Insurance Co.1995
POLICY FORM LIST
Heres a list of all
forms included in your policy, on the date shown below. These forms are listed
in the same order as they appear in your policy.
Title
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Form Number
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Edition Date
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Policy
Form List
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40705
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05-84
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Investment
Company
Blanket
Bond - Declarations
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ICB001
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07-04
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Investment
Company
Blanket
Bond - Insuring Agreements
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ICB005
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07-04
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Named
Insured Endorsement
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ICB010
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07-04
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Unauthorized
Signatures
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ICB012
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07-04
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Telefacsimile
Transactions
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ICB013
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07-04
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Voice-Initiated
Transactions
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ICB014
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07-04
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Amend
Definition of Employee
(Exclude EDP Coverage for
Computer Software or Programs)
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ICB015
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07-04
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Definition
of Investment
Company
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ICB016
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07-04
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Amend
Section 2. Exclusions
- Loss Reporting After
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ICB017
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07-04
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Termination
of Bond Amend
Section 13. - Termination As
To Any Employee
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ICB018
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07-04
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Add
Exclusions (n) & (o)
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ICB026
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07-04
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Name of Insured Policy
Number
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483PB0866
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Effective Date 07/27/09
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CLOUGH GLOBAL
ALLOCATION FUND
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Processing Date
07/29/09 16:44 001
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The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
St.Paul Fire and Marine
Insurance Co.1995
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB001 Rev. 7/04
2004 The Travelers
Companies, Inc.
2
INVESTMENT COMPANY
BLANKET BOND
St. Paul Fire and Marine
Insurance Company
St. Paul, Minnesota
55102-1396
(A Stock Insurance
Company, herein called Underwriter)
DECLARATIONS BOND NO.
483PB0866
Item 1.
Name of Insured (herein
called Insured):
CLOUGH GLOBAL ALLOCATION
FUND
Principal Address:
1290 Broadway, Suite 1100
Denver, CO 80203
Item 2.
Bond Period from 12:01 a.m.
on 07/27/09 to 12:01 a.m. on 07/27/2010 the effective date of the
termination or cancellation of the bond, standard time at the Principal Address
as to each of said dates.
Item 3. Limit of
Liability
Subject to Sections 9,
10, and 12 hereof:
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Limit of
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Deductible
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Liability
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Amount
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Insuring
Agreement A - FIDELITY
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$
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2,500,000
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$
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25,000
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Insuring
Agreement B - AUDIT EXPENSE
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$
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25,000
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$
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0
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Insuring
Agreement C - PREMISES
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$
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2,500,000
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$
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25,000
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Insuring
Agreement D - TRANSIT
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$
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2,500,000
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$
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25,000
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Insuring
Agreement E - FORGERY OR ALTERATION
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$
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2,500,000
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$
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25,000
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Insuring
Agreement F - SECURITIES
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$
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2,500,000
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$
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25,000
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Insuring
Agreement G - COUNTERFEIT CURRENCY
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$
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2,500,000
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$
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25,000
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Insuring
Agreement H - STOP PAYMENT
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$
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25,000
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$
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2,500
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Insuring
Agreement I - UNCOLLECTIBLE ITEMS OF DEPOSIT
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$
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25,000
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$
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2,500
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OPTIONAL
COVERAGES ADDED BY RIDER:
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J.
Unauthorized Signature
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$
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25,000
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$
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2,500
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L.
Voice Initiated Transfer
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$
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2,500,000
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$
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25,000
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N.
Telefacsimile
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$
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2,500,000
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$
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25,000
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If Not Covered is
inserted above opposite any specified Insuring Agreement or Coverage, such
Insuring Agreement or Coverage and any other reference thereto in this bond
shall be deemed to be deleted therefrom.
Item 4.
Offices or Premises
Covered - Offices acquired or established subsequent to the effective date of
this bond are covered according to the terms of General Agreement A. All the
Insureds offices or premises in existence at the time this bond becomes
effective are covered under this bond except the offices or premises located as
follows:
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB001 Rev. 7/04
2004 The Travelers
Companies, Inc.
1
Item 5.
The liability of the
Underwriter is subject to the terms of the following endorsements or riders
attached hereto: Endorsements or Riders No. 1 through
ICB005-07/04,
ICB010-07/04, ICB012-07/04, ICB013-07/04, ICB014-07/04,
ICB015-07/04,
ICB016-07/04, ICB017-07/04, ICB018-07/04, ICB026-07/04
Item 6.
The Insured by the
acceptance of this bond gives notice to the
Underwriter terminating
or canceling prior bonds or policy(ies) No.(s) such termination or
cancellation to be effective as of the time this bond becomes effective.
IN WITNESS WHEREOF, the
Company has caused this bond to be signed by its President and Secretary and
countersigned by a duly authorized representative of the Company.
Countersigned:
ST. PAUL FIRE AND MARINE
INSURANCE COMPANY
Authorized Representative
Countersigned At
Countersignature Date
/s/Bruce Backberg,
Secretary
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/s/Brian MacLean,
President
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The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB005 Ed. 7-04
2
2004
The Travelers Companies, Inc.
INVESTMENT COMPANY
BLANKET BOND
The Underwriter, in
consideration of an agreed premium, and subject to the Declarations made a part
hereof, the General Agreements, Conditions and Limitations and other terms of
this bond, agrees with the Insured, in accordance with the Insuring Agreements
hereof to which an amount of insurance is applicable as set forth in Item 3 of
the Declarations and with respect to loss sustained by the Insured at any time
but discovered during the Bond Period, to indemnify and hold harmless the
Insured for:
INSURING AGREEMENTS
(A) FIDELITY
Loss resulting from any
dishonest or fraudulent act(s), including Larceny or Embezzlement, committed by
an Employee, committed anywhere and whether committed alone or in collusion
with others, including loss of Property resulting from such acts of an
Employee, which Property is held by the Insured for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the Insured
is liable therefor.
Dishonest or fraudulent
act(s) as used in this Insuring Agreement shall mean only dishonest or
fraudulent act(s) committed by such Employee with the manifest intent:
(a) to cause the
Insured to sustain such loss; and
(b) to obtain
financial benefit for the Employee, or for any other Person or organization
intended by the Employee to receive such benefit, other than salaries,
commissions, fees, bonuses, promotions, awards, profit sharing, pensions or
other employee benefits earned in the normal course of employment.
(B) AUDIT EXPENSE
Expense incurred by the
Insured for that part of the costs of audits or examinations required by any
governmental regulatory authority to be conducted either by such authority or
by an independent accountant by reason of the discovery of loss sustained by
the Insured through any dishonest or fraudulent act(s), including Larceny or
Embezzlement, of any of the Employees. The total liability of the Underwriter
for such expense by reason of such acts of any Employee or in which such
Employee is concerned or implicated or with respect to any one audit or
examination is limited to the amount stated opposite Audit Expense in Item 3 of
the Declarations; it being understood, however, that such expense shall be
deemed to be a loss sustained by the Insured through any dishonest or
fraudulent act(s), including Larceny or Embezzlement, of one or more of the
Employees, and the liability under this paragraph shall be in addition to the
Limit of Liability stated in Insuring Agreement (A) in Item 3 of the
Declarations.
(C) ON PREMISES
Loss of Property
(occurring with or without negligence or violence) through robbery, burglary,
Larceny, theft, holdup, or other fraudulent means, misplacement, mysterious
unexplainable disappearance, damage thereto or destruction thereof, abstraction
or removal from the possession, custody or control of the Insured, and loss of
subscription, conversion, redemption or deposit privileges through the
misplacement or loss of Property, while the Property is (or is supposed or
believed by the Insured to be) lodged or deposited within any offices or
premises located anywhere, except in an office listed in Item 4 of the
Declarations or amendment thereof or in the mail or with a carrier for hire,
other than an armored motor vehicle company, for the purpose of transportation.
Office and Equipment
(1) loss of or
damage to furnishings, fixtures, stationery, supplies or equipment, within any
of the Insureds offices covered under this bond caused by Larceny or theft in,
or by burglary, robbery or hold-up of, such office, or attempt thereat, or by
vandalism or malicious mischief; or
(2) loss through
damage to any such office by Larceny or theft in, or by burglary, robbery or
hold-up of, such office, or attempt thereat, or to the interior of any such
office by vandalism or malicious mischief provided, in any event, that the
Insured is the owner of such offices, furnishings, fixtures, stationery,
supplies or equipment or is legally liable for such loss or damage always excepting,
however, all loss or damage through fire.
(D) IN TRANSIT
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB005 Ed. 7-04
1
Loss of Property
(occurring with or without negligence or violence) through robbery, Larceny,
theft, hold-up, misplacement, mysterious unexplainable disappearance, being
lost or otherwise made away with, damage thereto or destruction thereof, and
loss of subscription, conversion, redemption or deposit privileges through the
misplacement or loss of Property, while the Property is in transit anywhere in
the custody of any person or persons acting as messenger, except while in the
mail or with a carrier for hire, other than an armored motor vehicle company,
for the purpose of transportation, such transit to begin immediately upon
receipt of such Property by the transporting person or persons, and to end
immediately upon delivery thereof at destination.
(E) FORGERY 0R
ALTERATION
Loss through Forgery or
alteration of or on:
(1) any bills of
exchange, checks, drafts, acceptances, certificates of deposit, promissory
notes, or other written promises, orders or directions to pay sums certain in
money, due bills, money orders, warrants, orders upon public treasuries,
letters of credit; or
(2) other written
instructions, advices or applications directed to the Insured, authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or Property,
which instructions, advices or applications purport to have been signed or
endorsed by any:
(a) customer of the
Insured, or
(b) shareholder or
subscriber to shares, whether certificated or uncertificated, of any Investment
Company, or
(c) financial or
banking institution or stockbroker,
but which instructions,
advices or applications either bear the forged signature or endorsement or have
been altered without the knowledge and consent of such customer, shareholder or
subscriber to shares, or financial or banking institution or stockbroker; or
(3) withdrawal
orders or receipts for the withdrawal of funds or Property, or receipts or
certificates of deposit for Property and bearing the name of the Insured as
issuer, or of another Investment Company for which the Insured acts as agent,
excluding, however, any loss covered under Insuring Agreement (F) hereof
whether or not coverage for Insuring Agreement (F) is provided for in the
Declarations of this bond.
Any check or draft (a) made
payable to a fictitious payee and endorsed in the name of such fictitious payee
or (b) procured in a transaction with the maker or drawer thereof or with
one acting as an agent of such maker or drawer or anyone impersonating another
and made or drawn payable to the one so impersonated and endorsed by anyone
other than the one impersonated, shall be deemed to be forged as to such
endorsement.
Mechanically reproduced
facsimile signatures are treated the same as handwritten signatures.
(F) SECURITIES
Loss sustained by the
Insured, including loss sustained by reason of a violation of the constitution
by-laws, rules or regulations of any Self Regulatory Organization of which
the Insured is a member or which would have been imposed upon the Insured by
the constitution, by-laws, rules or regulations of any Self Regulatory Organization
if the Insured had been a member thereof,
(1) through the
Insureds having, in good faith and in the course of business, whether for its
own account or for the account of others, in any representative, fiduciary,
agency or any other capacity, either gratuitously or otherwise, purchased or
otherwise acquired, accepted or received, or sold or delivered, or given any
value, extended any credit or assumed any liability, on the faith of, or
otherwise acted upon, any securities, documents or other written instruments
which prove to have been:
(a) counterfeited,
or
(b) forged as to the
signature of any maker, drawer, issuer, endorser, assignor, lessee, transfer
agent or registrar, acceptor, surety or guarantor or as to the signature of any
person signing in any other capacity, or
(c) raised or
otherwise altered, or lost, or stolen, or
(2) through the
Insureds having, in good faith and in the course of business, guaranteed in
writing or witnessed any signatures whether for valuable consideration or not
and whether or not such guaranteeing or witnessing is ultra vires the Insured,
upon any transfers,
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
2
assignments, bills of
sale, powers of attorney, guarantees, endorsements or other obligations upon or
in connection with any securities, documents or other written instruments and
which pass or purport to pass title to such securities, documents or other
written instruments; excluding losses caused by Forgery or alteration of, on or
in those instruments covered under Insuring Agreement (E) hereof.
Securities, documents or
other written instruments shall be deemed to mean original (including original
counterparts) negotiable or non-negotiable agreements which in and of
themselves represent an equitable interest, ownership, or debt, including an
assignment thereof, which instruments are, in the ordinary course of business,
transferable by delivery of such agreements with any necessary endorsement or
assignment.
The word counterfeited
as used in this Insuring Agreement shall be deemed to mean any security,
document or other written instrument which is intended to deceive and to be
taken for an original. Mechanically reproduced facsimile signatures are treated
the same as handwritten signatures.
(G) COUNTERFEIT
CURRENCY
Loss through the receipt
by the Insured, in good faith, of any counterfeited money orders or altered
paper currencies or coin of the United States of America or Canada issued or
purporting to have been issued by the United States of America or Canada or
issued pursuant to a United States of America or Canada statute for use as
currency.
(H) STOP PAYMENT
Loss against 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:
For having either
complied with or failed to comply with any written notice of any customer,
shareholder or subscriber of the Insured or any Authorized Representative of
such customer, shareholder or subscriber to stop payment of any check or draft
made or drawn by such customer, shareholder or subscriber or any Authorized
Representative of such customer, shareholder or subscriber, or
For having refused to pay
any check or draft made or drawn by any customer, shareholder or subscriber of
the Insured or any Authorized Representative of such customer, shareholder or
subscriber.
(I) UNCOLLECTIBLE
ITEMS OF DEPOSIT
Loss resulting from
payments of dividends or fund shares, or withdrawals permitted from any
customers, shareholders, or subscribers account based upon Uncollectible
Items of Deposit of a customer, shareholder or subscriber credited by the
Insured or the Insureds agent to such customers, shareholders or subscribers
Mutual Fund Account; or loss resulting from an Item of Deposit processed
through an Automated Clearing House which is reversed by the customer,
shareholder or subscriber and deemed uncollectible by the Insured.
Loss includes dividends
and interest accrued not to exceed 15% of the Uncollectible Items which are
deposited. This Insuring Agreement
applies to all Mutual Funds with exchange privileges if all Fund(s) in
the exchange program are insured by the Underwriter for Uncollectible Items of
Deposit. Regardless of the number of transactions between Fund(s), the minimum
number of days of deposit within the Fund(s) before withdrawal as declared
in the Fund(s) prospectus shall begin from the date a deposit was first
credited to any Insured Fund(s).
GENERAL AGREEMENTS
A. ADDITIONAL OFFICES OR
EMPLOYEES CONSOLIDATION OR MERGER - NOTICE
(1) If the Insured
shall, while this bond is in force, establish any additional office or offices,
such offices shall be automatically covered hereunder from the dates of their
establishment, respectively. No notice to the Underwriter of an increase during
any premium period in the number of offices or in the number of Employees at
any of the offices covered hereunder need be given and no additional premium
need be paid for the remainder of such premium period.
(2) If an Investment
Company, named as Insured herein, shall, while this bond is in force, merge or
consolidate with, or purchase the assets of another institution, coverage for
such acquisition shall apply automatically
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
3
from the date of
acquisition. The Insured shall notify the Underwriter of such acquisition
within 60 days of said date, and an additional premium shall be computed only
if such acquisition involves additional offices or employees.
B. WARRANTY
No statement made by or
on behalf of the Insured, whether contained in the application or otherwise,
shall be deemed to be a warranty of anything except that it is true to the best
of the knowledge and belief of the person making the statement.
C. COURT COSTS AND
ATTORNEYS FEES
(Applicable to all
Insuring Agreements or Coverages now or hereafter forming part of this bond)
The Underwriter will
indemnify the Insured against court costs and reasonable attorneys fees
incurred and paid by the Insured in defense, whether or not successful, whether
or not fully litigated on the merits and whether or not settled, of any suit or
legal proceeding brought against the Insured to enforce the Insureds liability
or alleged liability on account of any loss, claim or damage which, if
established against the Insured, would constitute a loss sustained by the
Insured covered under the terms of this bond provided, however, that with
respect to Insuring Agreement (A) this indemnity shall apply only in the
event that:
(1) an Employee
admits to being guilty of any dishonest or fraudulent act(s), including Larceny
or Embezzlement; or
(2) an Employee is
adjudicated to be guilty of any dishonest or fraudulent act(s), including
Larceny or Embezzlement;
(3) in the absence
of (1) or (2) above an arbitration panel agrees, after a review of an
agreed statement of facts, that an Employee would be found guilty of dishonesty
if such Employee were prosecuted.
The Insured shall
promptly give notice to the Underwriter of any such suit or legal proceedings
and at the request of the Underwriter shall furnish it with copies of all
pleadings and other papers therein. At the Underwriters election the Insured
shall permit the Underwriter to conduct the defense of such suit or legal
proceeding, in the Insureds name, through attorneys of the Underwriters
selection. In such event, the Insured shall give all reasonable information and
assistance which the Underwriter shall deem necessary to the proper defense of
such suit or legal proceeding.
If the amount of the
Insureds liability or alleged liability is greater than the amount recoverable
under this bond, or if a Deductible Amount is applicable, or both, the
liability of the Underwriter under this General Agreement is limited to the
proportion of court costs and attorneys fees incurred and paid by the Insured
or by the Underwriter that the amount recoverable under this bond bears to the
total of such amount plus the amount which is not so recoverable. Such
indemnity shall be in addition to the Limit of Liability for the applicable
Insuring Agreement or Coverage.
D. FORMER EMPLOYEE
Acts of an Employee, as
defined in this bond, are covered under Insuring Agreement (A) only while
the Employee is in the Insureds employ. Should loss involving a former
Employee of the Insured be discovered subsequent to the termination of
employment, coverage would still apply under Insuring Agreement (A) if the
direct proximate cause of the loss occurred while the former Employee performed
duties within the scope of his/her employment.
THE FOREGOING INSURING
AGREEMENTS AND GENERAL AGREEMENTS ARE SUBJECT TO THE FOLLOWING CONDITIONS AND
LIMITATIONS:
SECTION 1.
DEFINITIONS
The following terms, as
used in this bond have the respective meanings stated in this Section:
(a) Employee
means:
(1) any of the
Insureds officers, partners, or and employees, and
(2) any of the
officers or employees of any predecessor of the
Insured whose principal
assets are acquired by the Insured by consolidation or merger with, or purchase
of assets or capital stock of, such predecessor, and
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
4
(3) attorneys
retained by the Insured to perform legal services for the Insured and the
employees of such attorneys while such attorneys or employees of such attorneys
are performing such services for the Insured, and
(4) guest students
pursuing their studies or duties in any of the Insureds offices, and
(5) directors or
trustees of the Insured, the investment advisor, underwriter (distributor),
transfer agent, or shareholder accounting
record keeper, or administrator authorized by written agreement to keep
financial and/or other required records, but only while performing acts coming
within the scope of the usual duties of an officer or employee or while acting
as a member of any committee duly elected or appointed to examine or audit or
have custody of or access to the Property of the Insured, and
(6) any individual
or individuals assigned to perform the usual duties of an employee within the
premises of the Insured, by contract, or by any agency furnishing temporary
personnel on a contingent or part-time basis, and
(7) each natural
person, partnership or corporation authorized by written agreement with the
Insured to perform services as electronic data processor of checks or other
accounting records of the Insured, but excluding any such processor who acts as
transfer agent or in any other agency capacity in issuing checks, drafts or
securities for the Insured, unless included under sub-section (9) hereof,
and
(8) those persons so
designated in Section 15, Central Handling of Securities, and
(9) any officer,
partner, or Employee of:
(a) an investment
advisor, (b) an underwriter (distributor), (c) a transfer agent or
shareholder accounting record-keeper, or (d) an administrator authorized
by written agreement to keep financial and/or other required records, for an
Investment Company named as Insured while performing acts coming within the
scope of the usual duties of an officer or Employee of any investment Company
named as Insured herein, or while acting as a member of any committee duly
elected or appointed to examine or audit or have custody of or access to the
Property of any such Investment Company, provided that only Employees or
partners of a transfer agent, shareholder accounting record-keeper or
administrator which is an affiliated person, as defined in the Investment
Company Act of 1940, of an Investment Company named as Insured or is an
affiliated person of the advisor, underwriter or administrator of such
Investment Company, and which is not a bank, shall be included within the
definition of Employee. Each employer of temporary personnel or processors as
set forth in sub-sections (6) and (7) of Section 1(a) and
their partners, officers and employees shall collectively be deemed to be one
person for all the purposes of this bond, excepting, however, the last
paragraph of Section 13. Brokers, or other agents under contract or
representatives of the same general character shall not be considered Employees.
(b) Property means
money (i.e. currency, coin, bank notes, Federal Reserve notes), postage and
revenue stamps, U.S. Savings Stamps, bullion, precious metals of all kinds and
in any form and articles made therefrom, jewelry, watches, necklaces, bracelets,
gems, precious and semi-precious stones, bonds, securities, evidences of debts,
debentures, scrip, certificates, interim receipts, warrants, rights, puts,
calls, straddles, spreads, transfers, coupons, drafts, bills of exchange,
acceptances, notes, checks, withdrawal orders, money orders, warehouse
receipts, bills of lading, conditional sales contracts, abstracts of title,
insurance policies, deeds, mortgages under real estate and/or chattels and upon
interests therein, and assignments of such policies, mortgages and instruments,
and other valuable papers, including books of account and other records used by
the Insured in the conduct of its business, and all other instruments similar
to or in the nature of the foregoing including Electronic Representations of
such instruments enumerated above (but excluding all data processing records)
in which the Insured has an interest or in which the Insured acquired or should
have acquired an interest by reason of a predecessors declared financial
condition at the time of the Insureds consolidation or merger with, or
purchase of the principal assets of, such predecessor or which are held by the
Insured for any purpose or in any capacity and whether so held gratuitously or
not and whether or not the Insured is liable therefor.
(c) Forgery means
the signing of the name of another with intent to deceive; it does not
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
5
include the signing of
ones own name with or without authority, in any capacity, for any purpose.
(d) Larceny and
Embezzlement as it applies to any named Insured means those acts as set forth
in Section 37 of the Investment Company Act of 1940.
(e) Items of
Deposit means any one or more checks and drafts. Items of Deposit shall not be
deemed uncollectible until the Insureds collection procedures have failed.
SECTION 2.
EXCLUSIONS THIS BOND, DOES NOT COVER:
(a) loss effected
directly or indirectly by means of forgery or alteration of, on or in any
instrument, except when covered by Insuring Agreement (A), (E), (F) or
(G).
(b) loss due to riot
or civil commotion outside the United States of America and Canada; or loss due
to military, naval or usurped power, war or insurrection unless such loss
occurs in transit in the circumstances recited in Insuring Agreement (D), and
unless, when such transit was initiated, there was no knowledge of such riot,
civil commotion, military, naval or usurped power, war or insurrection on the
part of any person acting for the Insured in initiating such transit.
(c) loss, in time of
peace or war, directly or indirectly caused by or resulting from the effects of
nuclear fission or fusion or radioactivity; provided, however, that this
paragraph shall not apply to loss resulting from industrial uses of nuclear
energy.
(d) loss resulting
from any wrongful act or acts of any person who is a member of the Board of
Directors of the Insured or a member of any equivalent body by whatsoever name
known unless such person is also an Employee or an elected official, partial
owner or partner of the Insured in some other capacity, nor, in any event, loss
resulting from the act or acts of any person while acting in the capacity of a
member of such Board or equivalent body.
(e) loss resulting
from the complete or partial non-payment of, or default upon, any loan or
transaction in the nature of, or amounting to, a loan made by or obtained from
the Insured or any of its partners, directors or Employees, whether authorized
or unauthorized and whether procured in good faith or through trick, artifice
fraud or false pretenses, unless such loss is covered under Insuring Agreement
(A), (E) or (F).
(f) loss resulting
from any violation by the Insured or by any Employee: (1) of law
regulating (a) the issuance, purchase or sale of securities, (b) securities
transactions upon Security Exchanges or over the counter market, (c) Investment
Companies, or (d) Investment Advisors, or (2) of any rule or
regulation made pursuant to any such law. unless such loss, in the absence of
such laws, rules or regulations, would be covered under Insuring
Agreements (A) or (E). (g) loss of Property or loss of privileges
through the misplacement or loss of Property as set forth in Insuring Agreement
(C) or (D) while the Property is in the custody of any armored motor
vehicle company, unless such loss shall be in excess of the amount recovered or
received by the Insured under (a) the Insureds contract with said armored
motor vehicle company, (b) insurance carried by said armored motor vehicle
company for the benefit of users of its service, and (c) all other
insurance and indemnity in force in whatsoever form carried by or for the
benefit of users of said armored motor vehicle companys service, and then this
bond shall cover only such excess.
(h) potential
income, including but not limited to interest and dividends, not realized by
the Insured because of a loss covered under this bond, except as included under
Insuring Agreement (I).
(i) all damages of
any type for which the Insured is legally liable, except direct compensatory
damages arising from a loss covered under this bond.
(j) loss through the
surrender of Property away from an office of the Insured as a result of a
threat:
(1) to do bodily
harm to any person, except loss of Property in transit in the custody of any
person acting as messenger provided that when such transit was initiated there
was no knowledge by the Insured of any such threat, or
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
6
(2) to do damage to
the premises or Property of the Insured, except when covered under Insuring
Agreement (A).
(k) all costs, fees
and other expenses incurred by the Insured in establishing the existence of or
amount of loss covered under this bond unless such indemnity is provided for
under Insuring Agreement (B).
(l) loss resulting
from payments made or withdrawals from the account of a customer of the
Insured, shareholder or subscriber to shares involving funds erroneously
credited to such account, unless such payments are made to or withdrawn by such
depositors or representative of such person, who is within the premises of the
drawee bank of the Insured or within the office of the Insured at the time of
such payment or withdrawal or unless such payment is covered under Insuring
Agreement (A).
(m) any loss
resulting from Uncollectible Items of Deposit which are drawn from a financial
institution outside the fifty states of the United States of America, District
of Columbia, and territories and possessions of the United States of America,
and Canada.
SECTION 3.
ASSIGNMENT OF RIGHTS
This bond does not afford
coverage in favor of any Employers of temporary personnel or of processors as
set forth in sub-sections (6) and (7) of Section 1(a) of
this bond, as aforesaid, and upon payment to the Insured by the Underwriter on
account of any loss through dishonest or fraudulent act(s) including 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 Insureds 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 Insured to the Underwriter, and the Insured shall
execute all papers necessary to secure to the Underwriter the rights herein
provided for.
SECTION 4. LOSS
-NOTICE -PROOF LEGAL PROCEEDINGS
This bond is for the use
and benefit only of the Insured named in the Declarations and the Underwriter
shall not be liable hereunder for loss sustained by anyone other than the
Insured unless the Insured, in its sole discretion and at its option, shall
include such loss in the Insureds proof of loss. At the earliest practicable
moment after discovery of any loss hereunder the Insured shall give the
Underwriter written notice thereof and shall also within six months after such
discovery furnish to the Underwriter affirmative proof of loss with full
particulars. If claim is made under this bond for loss of securities or shares,
the Underwriter shall not be liable unless each of such securities or shares is
identified in such proof of loss by a certificate or bond number or, where such
securities or shares are uncertificated, by such identification means as agreed
to by the Underwriter. The Underwriter shall have thirty days after notice and
proof of loss within which to investigate the claim, but where the loss is
clear and undisputed, settlement shall be made within forty-eight hours; and
this shall apply notwithstanding the loss is made up wholly or in part of
securities of which duplicates may be obtained. Legal proceedings for recovery
of any loss hereunder shall not be brought prior to the expiration of sixty
days after such proof of loss is filed with the Underwriter nor after the
expiration of twenty-four months from the discovery of such loss, except that
any action or proceedings to recover hereunder on account of any judgment
against the Insured in any suit mentioned in General Agreement C or to recover
attorneys fees paid in any such suit, shall be begun within twenty-four months
from the date upon which the judgment in such suit shall become final. If any
limitation embodied in this bond is prohibited by any law controlling the
construction hereof, such limitation shall be deemed to be amended so as to be
equal to the minimum period of limitation permitted by such law.
Discovery occurs when the
Insured:
(a) becomes aware of
facts, or
(b) receives written
notice of an actual or potential claim by a third party which alleges that the
Insured is liable under circumstances, which would cause a reasonable person to
assume that a loss covered by the bond has been or will be incurred even though
the exact amount or details of loss may not be then known.
SECTION 5. VALUATION
OF PROPERTY
The value of any
Property, except books of accounts or other records used by the Insured in the
conduct of its business, for the loss of which a claim shall be made hereunder,
shall be determined by the average market value of such Property on the
business day next preceding the discovery of such loss; provided, however, that
the value of any Property replaced by the Insured prior to the payment of claim
therefor shall be the actual market value at the time of replacement; and
further provided that in case of a loss or misplacement of interim
certificates, warrants, The hard copy of the bond issued by the Underwriter
will be referenced in the event of a loss
7
rights, or other
securities, the production of which is necessary to the exercise of
subscription, conversion, redemption or deposit privileges, the value thereof
shall be the market value of such privileges immediately preceding the
expiration thereof if said loss or misplacement 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 or by
arbitration.
In case of any loss or
damage to Property consisting of books of accounts or other records used by the
Insured in the conduct of its business, the Underwriter shall be liable under
this bond only if such books or records are actually reproduced and then for
not more than the cost of blank books, blank pages or other materials plus
the cost of labor for the actual transcription or copying of data which shall
have been furnished by the Insured in order to reproduce such books and other
records.
SECTION 6. VALUATION
OF PREMISES AND FURNISHINGS
In case of damage to any
office of the Insured, or loss of or damage to the furnishings, fixtures,
stationery, supplies, equipment, safes or vaults therein, the Underwriter shall
not be liable for more than the actual cash value thereof, or for more than the
actual cost of their replacement or repair. The Underwriter may, at its
election, pay such actual cash value or make such replacement or repair. If the
underwriter and the Insured cannot agree upon such cash value or such cost of
replacement or repair, such shall be determined by arbitration.
SECTION 7. LOST
SECURITIES
If the Insured shall
sustain a loss of securities the total value of which is in excess of the limit
stated in Item 3 of the Declarations of this bond, the liability of the
Underwriter shall be limited to payment for, or duplication of, securities
having value equal to the limit stated in Item 3 of the Declarations of this
bond. If the Underwriter shall make payment to the Insured for any loss of
securities, the Insured shall thereupon assign to the Underwriter all of the
Insureds rights, title and interest in and to said securities. With respect to securities the value of which
do not exceed the Deductible Amount (at the time of the discovery of the loss)
and for which the Underwriter may at its sole discretion and option and at the
request of the Insured issue a Lost Instrument Bond or Bonds to effect
replacement thereof, the Insured will pay the usual premium charged therefor
and will indemnify the Underwriter against all loss or expense that the
Underwriter may sustain because of the issuance of such Lost Instrument Bond or
Bonds. With respect to securities the
value of which exceeds the Deductible Amount (at the time of discovery of the
loss) and for which the Underwriter may issue or arrange for the issuance of a
Lost Instrument Bond or Bonds to effect replacement thereof, the Insured agrees
that it will pay as premium therefor a proportion of the usual premium charged
therefor, said proportion being equal to the percentage that the Deductible
Amount bears to the value of the securities upon discovery of the loss, and
that it will indemnify the issuer of said Lost Instrument Bond or Bonds against
all loss and expense that is not recoverable from the Underwriter under the
terms and conditions of this Investment Company Blanket Bond subject to the
Limit of Liability hereunder.
SECTION 8. SALVAGE
In case of recovery,
whether made by the Insured or by the Underwriter, on account of any loss in
excess of the Limit of Liability hereunder plus the Deductible Amount
applicable to such loss, from any source other than suretyship, insurance,
reinsurance, security or indemnity taken by or for the benefit of the
Underwriter, the net amount of such recovery, less the actual costs and
expenses of making same, shall be applied to reimburse the Insured in full for
the excess portion of such loss, and the remainder, if any, shall be paid first
in reimbursement of the Underwriter and thereafter in reimbursement of the
Insured for that part of such loss within the Deductible Amount. The Insured
shall execute all necessary papers to secure to the Underwriter the rights
provided for herein.
SECTION 9.
NON-REDUCTION AND NONACCUMULATION OF LIABILITY AND TOTAL LIABILITY
At all times prior to
termination hereof, this bond shall continue in force for the limit stated in
the applicable sections of Item 3 of the Declarations of this bond
notwithstanding any previous loss for which the Underwriter may have paid or be
liable to pay hereunder; PROVIDED, however, that regardless of the number of
years this bond shall continue in force and the number or premiums which shall
be payable or paid, the liability of the Underwriter under this bond with
respect to all loss resulting from:
(a) any one act of
burglary, robbery or holdup, or attempt thereat, in which no Partner or
Employee is concerned or implicated shall be deemed to be one loss, or
(b) any one
unintentional or negligent act on the part of any other person resulting in
damage
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
8
to or destruction or
misplacement of Property, shall be deemed to be one loss, or
(c) all wrongful
acts, other than those specified in (a) above, of any one person shall be
deemed to be one loss, or
(d) all wrongful
acts, other than those specified in (a) above, of one or more persons
(which dishonest act(s) or act(s) of Larceny or Embezzlement include,
but are not limited to, the failure of an Employee to report such acts of
others) whose dishonest act or acts intentionally or unintentionally, knowingly
or unknowingly, directly or indirectly, aid or aids in any way, or permits the
continuation of, the dishonest act or acts of any other person or persons shall
be deemed to be one loss with the act or acts of the persons aided, or
(e) any one casualty
or event other than those specified in (a), (b), (c) or (d) preceding,
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 and shall not be cumulative in amounts from
year to year or from period to period.
Sub-section (c) is
not applicable to any situation to which the language of sub-section (d) applies.
SECTION 10. LIMIT OF
LIABILITY
With respect to any loss
set forth in the PROVIDED clause of Section 9 of this bond which is
recoverable or recovered in whole or in part under any other bonds or policies
issued by the Underwriter to the Insured or to any predecessor in interest of
the Insured and terminated or cancelled or allowed to expire and in which the period
of discovery has not expired at the time any such loss thereunder is
discovered, the total liability of the Underwriter under this bond and under
other bonds or policies shall not exceed, in the aggregate, the amount carried
hereunder on such loss or the amount available to the Insured under such other
bonds or policies, as limited by the terms and conditions thereof, for any such
loss if the latter amount be the larger.
SECTION 11. OTHER
INSURANCE
If the Insured shall
hold, as indemnity against any loss covered hereunder, any valid and
enforceable insurance or suretyship, the Underwriter shall be liable hereunder
only for such amount of such loss which is in excess of the amount of such
other insurance or suretyship, not exceeding, however, the Limit of Liability
of this bond applicable to such loss.
SECTION 12.
DEDUCTIBLE
The Underwriter shall not
be liable under any of the Insuring Agreements of this bond on account of loss
as specified, respectively, in sub-sections (a), (b), (c), (d) and (e) of
Section 9, NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL
LIABILITY, 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
from any bond or policy of insurance issued by an insurance company and
covering such loss, or by the Underwriter on account thereof prior to payment
by the Underwriter of such loss, shall exceed the Deductible Amount set forth
in Item 3 of the Declarations hereof (herein called Deductible Amount), and
then for such excess only, but in no event for more than the applicable Limit
of Liability stated in Item 3 of the Declarations. The Insured will bear, in
addition to the Deductible Amount, premiums on Lost Instrument Bonds as set
forth in Section 7. There shall be no deductible applicable to any loss
under Insuring Agreement A sustained by any Investment Company named as Insured
herein.
SECTION 13.
TERMINATION
The Underwriter may
terminate this bond as an entirety by furnishing written notice specifying the
termination date, which cannot be prior to 60 days after the receipt of such
written notice by each Investment Company named as Insured and the Securities
and Exchange Commission, Washington, D.C. The Insured may terminate this bond as
an entirety by furnishing written notice to the Underwriter. When the Insured
cancels, the Insured shall furnish written notice to the Securities and
Exchange Commission, Washington, D.C., prior to 60 days before the effective
date of the termination. The Underwriter shall notify all other Investment
Companies named as Insured of the receipt of such termination notice and the
termination cannot be effective prior to 60 days after receipt of written
notice by all other Investment Companies. Premiums are earned until the
termination date as set forth herein. This Bond will terminate as to any one
Insured immediately upon 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 into another entity, or by disposition of all of its assets.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
9
The Underwriter shall
refund the unearned premium computed at short rates in accordance with the
standard short rate cancellation tables if terminated by the Insured or pro
rata if terminated for any other reason.
This Bond shall
terminate:
(a) as to any
Employee as soon as any partner, officer or supervisory Employee of the Insured,
who is not in collusion with such Employee, shall learn of any dishonest or
fraudulent act(s), including Larceny or Embezzlement on the part of such
Employee without prejudice to the loss of any Property then in transit in the
custody of such Employee (see Section 16(d)), or
(b) as to any
Employee 60 days after receipt by each Insured and by the Securities and
Exchange Commission of a written notice from the Underwriter of its desire to
terminate this bond as to such Employee, or
(c) as to any
person, who is a partner, officer or employee of any Electronic Data Processor
covered under this bond, from and after the time that the Insured or any
partner or officer thereof not in collusion with such person shall have
knowledge or information that such person has committed any dishonest or
fraudulent act(s), including Larceny or Embezzlement in the service of the
Insured or otherwise, whether such act be committed before or after the time
this bond is effective.
SECTION 14. RIGHTS
AFTER TERMINATION OR CANCELLATION
At any time prior to the
termination or cancellation of this bond as an entirety, whether by the Insured
or the Underwriter, the Insured may give the Underwriter notice that it desires
under this bond an additional period of 12 months within which to discover loss
sustained by the Insured prior to the effective date of such termination or
cancellation and shall pay an additional premium therefor. Upon receipt of such
notice from the Insured, the Underwriter shall give its written consent
thereto; provided, however, that such additional period of time shall terminate
immediately:
(a) on the effective
date of any other insurance obtained by the Insured, its successor in business
or any other party, replacing in whole or in part the insurance afforded by
this bond, whether or not such other insurance provides coverage for loss
sustained prior to its effective date, or
(b) upon takeover of
the Insureds business by any State or Federal official or agency, or by any
receiver or liquidator, acting or appointed for this purpose without the
necessity of the Underwriter giving notice of such termination. In the event
that such additional period of time is terminated, as provided above, the
Underwriter shall refund any unearned premium. The right to purchase such
additional period for the discovery of loss may not be exercised by any State
or Federal official or agency, or by a receiver or liquidator, acting or
appointed to take over the Insureds business for the operation or for the
liquidation thereof or for any purpose.
SECTION 15. CENTRAL
HANDLING OF SECURITIES
Securities included in
the system for the central handling of securities established and maintained by
Depository Trust Company, Midwest Depository Trust Company, Pacific Securities
Depository Trust Company, and Philadelphia Depository Trust Company,
hereinafter called Corporations, to the extent of the Insureds interest
therein as effected by the making of appropriate entries on the books and
records of such Corporations shall be deemed to be Property. The words Employee
and Employees shall be deemed to include the officers, partners, clerks and
other employees of the New York Stock Exchange, Boston Stock Exchange, Midwest
Stock Exchange, Pacific Stock Exchange and Philadelphia Stock Exchange, hereinafter
called Exchanges, and of the above named Corporations, and of any nominee in
whose name is registered any security included within the systems for the
central handling of securities established and maintained by such Corporations,
and any employee or any recognized service company, while such officers,
partners, clerks and other employees and employees of service companies perform
services for such Corporations in the operation of such systems. For the
purpose of the above definition a recognized service company shall be any
company providing clerks or other personnel to the said Exchanges or
Corporations on a contract basis. The Underwriter shall not be liable on
account of any loss(es) in connection with the central handling of securities
within the systems established and maintained by such Corporations, unless such
loss(es) shall be in excess of the amount(s) recoverable or recovered
under any bond or policy of insurance indemnifying such Corporations against
such loss(es), and then the Underwriter shall be liable hereunder
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
10
only for the Insureds
share of such excess loss(es), but in no event for more than the Limit of
Liability applicable hereunder. For the purpose of determining the Insureds
share of excess loss(es) it shall be deemed that the Insured has an interest in
any certificate representing any security included within such systems
equivalent to the interest the Insured then has in all certificates
representing the same security included within such systems and that such
Corporations shall use their best judgment in apportioning the amount(s) recoverable
or recovered under any bond or policy of insurance indemnifying such
Corporations against such loss(es) in connection with the central handling of
securities within such systems among all those having an interest as recorded
by appropriate entries in the books and records of such Corporations in
Property involved in such loss(es) on the basis that each such interest shall
share in the amount(s) so recoverable or recovered in the ratio that the
value of each such interest bears to the total value all such interests and
that the Insureds share of such excess loss(es) shall be the amount of the
Insureds interest in such Property in excess of the amount(s) so
apportioned to the Insured by such Corporations. This bond does not afford
coverage in favor of such Corporations or Exchanges or any nominee in whose
name is registered any security included within the systems for the central
handling of securities established and maintained by such Corporations, and
upon payment to the Insured by the Underwriter on account of any loss(es)
within the systems, an assignment of such of the Insureds rights and causes of
action as it may have against such Corporations or Exchanges shall to the
extent of such payment, be given by the Insured to the Underwriter, and the
Insured shall execute all papers necessary to secure the Underwriter the rights
provided for herein.
SECTION 16.
ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one
corporation, co-partnership or person or any combination of them be included as
the Insured herein:
(a) the total
liability of the Underwriter hereunder for loss or losses sustained by any one
or more or all of them shall not exceed the limit for which the Underwriter
would be liable hereunder if all such loss were sustained by any one of them;
(b) the one first
named herein shall be deemed authorized to make, adjust and receive and enforce
payment of all claims hereunder and shall be deemed to be the agent of the
others for such purposes and for the giving or receiving of any notice required
or permitted to be given by the terms hereof, provided that the Underwriter
shall furnish each named Investment Company with a copy of the bond and with
any amendment thereto, together with a copy of each formal filing of the
settlement of each such claim prior to the execution of such settlement;
(c) the Underwriter
shall not be responsible for the proper application of any payment made
hereunder to said first named Insured;
(d) knowledge
possessed or discovery made by any partner, officer of supervisory Employee of
any Insured shall for the purposes of Section 4 and Section 13 of
this bond constitute knowledge or discovery by all the Insured; and
(e) if the first
named Insured ceases for any reason to be covered under this bond, then the
Insured next named shall thereafter be considered as the first, named Insured
for the purposes of this bond.
SECTION 17. NOTICE
AND CHANGE OF CONTROL
Upon the Insured
obtaining knowledge of a transfer of its outstanding voting securities which
results in a change in control (as set forth in Section 2(a) (9) of
the Investment Company Act of 1940) of the Insured, the Insured shall within
thirty (30) days of such knowledge give written notice to the Underwriter
setting forth:
(a) the names of the
transferors and transferees (or the names of the beneficial owners if the
voting securities are requested in another name), and
(b) 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
(c) the total number
of outstanding voting securities.
As used in this section,
control means the power to exercise a controlling influence over the management
or policies of the Insured. Failing to give the required notice shall result in
termination of coverage of this bond, effective upon the date of stock transfer
for any loss in which any transferee is concerned or implicated.
Such notice is not
required to be given in the case of an Insured which is an Investment Company.
SECTION 18. CHANGE
OR MODIFICATION
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
11
This bond or any
instrument amending or effecting same may not be changed or modified orally. No
changes in or modification thereof shall be effective unless made by written
endorsement issued to form a part hereof over the signature of the Underwriters
Authorized Representative. When a bond covers only one Investment Company no
change or modification which would adversely affect the rights of the
Investment Company shall be effective prior to 60 days after written
notification has been furnished to the Securities and Exchange Commission,
Washington, D.C., by the Insured or by the Underwriter. If more than one
Investment Company is named as the Insured herein, the Underwriter shall give
written notice to each Investment Company and to the Securities and Exchange
Commission, Washington, D.C., not less than 60 days prior to the effective date
of any change or modification which would adversely affect the rights of such
Investment Company.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB010 Ed. 7-04
2004 The St. Paul
Travelers Companies, Inc. All Rights Reserved
12
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Named Insured Endorsement
It is agreed that:
1. From and after the
time this rider becomes effective the Insured under the attached bond are:
Clough Global Allocation
Fund
Clough Global Equity Fund
Clough Global
Opportunities Fund
2. The first named
Insured shall act for itself and for each and all of the Insured for all the
purposes of the attached bond.
3. Knowledge possessed or
discovery made by any Insured or by any partner or officer thereof shall for
all the purposes of the attached bond constitute knowledge or discovery by all
the Insured.
4. If, prior to the
termination of the attached bond in its entirety, the attached bond is
terminated as to any Insured, there shall be no liability for any loss
sustained by such Insured unless discovered before the time such termination as
to such Insured becomes effective.
5. The liability of the
Underwriter for loss or losses sustained by any or all of the Insured shall not
exceed the amount for which the Underwriter would be liable had all such loss
or losses been sustained by any one of the Insured. Payment by the Underwriter
to the first named Insured of loss sustained by any Insured shall fully release
the Underwriter on account of such loss.
6. If the first named
Insured ceases for any reason to be covered under the attached bond, then the
Insured next named shall thereafter be considered as the first named Insured
for all the purposes of the attached bond.
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB012 Ed. 7-04
1
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Unauthorized Signatures
It is agreed that:
1. The attached bond is
amended by inserting an additional Insuring Agreement as follows:
INSURING AGREEMENT J
UNAUTHORIZED SIGNATURE
(A) Loss resulting
directly from the Insured having accepted, paid or cashed any check or
withdrawal order, draft, made or drawn on a customers account which bears the
signature or endorsement of one other than a person whose name and signature is
on the application on file with the Insured as a signatory on such account.
(B) It shall be a
condition precedent to the Insureds right of recovery under this Rider that
the Insured shall have on file signatures of all persons who are authorized
signatories on such account.
2. The total liability of
the Underwriter under Insuring Agreement J is limited to the sum of Twenty-Five
Thousand Dollars ($25,000 ), it being understood, however, that such liability
shall be part of and not in addition to the Limit of Liability stated in Item 3
of the Declarations of the attached bond or amendment thereof.
3. With respect to
coverage afforded under this Rider, the Deductible Amount shall be Two Thousand
Five Hundred Dollars ($2,500 ).
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB013 Ed. 7-04
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Telefacsimile
Transactions
It is agreed that:
1. The attached Bond is
amended by adding an additional Insuring Agreement as follows:
INSURING AGREEMENT N
TELEFACSIMILE TRANSACTIONS
Loss caused by a
Telefacsimile Transaction, where the request for such Telefacsimile Transaction
is unauthorized or fraudulent and is made with the manifest intent to deceive;
provided, that the entity which receives such request generally maintains and
follows during the Bond Period all Designated Fax Procedures with respect to
Telefacsimile Transactions. The isolated failure of such entity to maintain and
follow a particular Designated Fax Procedure in a particular instance will not
preclude coverage under this Insuring Agreement, subject to the exclusions
herein and in the Bond.
2. Definitions. The
following terms used in this Insuring Agreement shall have the following
meanings:
a. Telefacsimile System
means a system of transmitting and reproducing fixed graphic material (as, for
example, printing) by means of signals transmitted over telephone lines.
b. Telefacsimile
Transaction means any Fax Redemption, Fax Election, Fax Exchange, or Fax
Purchase.
c. Fax Redemption means
any redemption of shares issued by an Investment Company which is requested
through a Telefacsimile System.
d. Fax Election means
any election concerning dividend options available to Fund shareholders which
is requested through a Telefacsimile System.
e. Fax Exchange means
any exchange of shares in a registered account of one Fund into shares in an
identically registered account of another Fund in the same complex pursuant to
exchange privileges of the two Funds, which exchange is requested through a
Telefacsimile System.
f. Fax Purchase means
any purchase of shares issued by an Investment Company which is requested
through a Telefacsimile System.
g. Designated Fax
Procedures means the following procedures:
(1) Retention: All
Telefacsimile Transaction requests shall be retained for at least six (6) months.
Requests shall be capable of being retrieved and produced in legible form
within a reasonable time after retrieval is requested.
(2) Identity Test:
The identity of the sender in any request for a Telefacsimile Transaction shall
be tested before executing that Telefacsimile Transaction, either by requiring
the sender to include on the face of the request a unique identification number
or to include key specific account information. Requests of Dealers must be on
company letterhead and be signed by an authorized representative. Transactions
by occasional users are to be verified by telephone confirmation.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB013 Ed. 7-04
1
(3) Contents: A
Telefacsimile Transaction shall not be executed unless the request for such
Telefacsimile Transaction is dated and purports to have been signed by (a) any
shareholder or subscriber to shares issued by a Fund, or (b) any financial
or banking institution or stockbroker.
(4) Written
Confirmation: A written confirmation of each Telefacsimile Transaction shall be
sent to the shareholder(s) to whose account such Telefacsimile Transaction
relates, at the record address, by the end of the Insureds next regular
processing cycle, but no later than five (5) business days following such
Telefacsimile Transaction.
i. Designated means or
refers to a written designation signed by a shareholder of record of a Fund,
either in such shareholders initial application for the purchase of Fund
shares, with or without a Signature Guarantee, or in another document with a
Signature Guarantee.
j. Signature Guarantee
means a written guarantee of a signature, which guarantee is made by an
Eligible Guarantor Institution as defined in Rule 17Ad-15(a)(2) under
the Securities Exchange Act of 1934.
3. Exclusions. It is
further understood and agreed that this Insuring Agreement shall not cover:
a. Any loss covered under
Insuring Agreement A, Fidelity, of this Bond; and b. Any loss resulting from:
(1) Any Fax
Redemption, where the proceeds of such redemption were requested to be paid or
made payable to other than (a) the shareholder of record, or (b) a
person Designated in the initial application or in writing at least one (1) day
prior to such redemption to receive redemption proceeds, or (c) a bank
account Designated in the initial application or in writing at least one (1) day
prior to such redemption to receive redemption proceeds; or
(2) Any Fax
Redemption of Fund shares which had been improperly credited to a shareholders
account, where such shareholder (a) did not cause, directly or indirectly,
such shares to be credited to such account, and (b) directly or indirectly
received any proceeds or other benefit from such redemption; or
(3) Any Fax
Redemption from any account, where the proceeds of such redemption were
requested to be sent to any address other than the record address or another
address for such account which was designated (a) over the telephone or by
telefacsimile at least fifteen (15) days prior to such redemption, or (b) in
the initial application or in writing at least one (1) day prior to such
redemption; or
(4) The intentional
failure to adhere to one or more Designated Fax Procedures; or
(5) The failure to
pay for shares attempted to be purchased.
4. The Single Loss Limit
of Liability under Insuring Agreement N is limited to the sum of Two Million
Five Hundred Thousand Dollars ($2,500,000 ) it being understood, however, that
such liability shall be part of and not in addition to the Limit of Liability
stated in Item 3 of the Declarations of the attached Bond or amendments
thereof.
5. With respect to coverage
afforded under this Rider the applicable Single loss Deductible Amount is
Twenty Five Thousand Dollars ($25,000).
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
ICB014 Ed. 7-04
2
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Voice Initiated
Transactions
It is agreed that:
1. The attached bond is
amended by inserting an additional Insuring Agreement as follows:
INSURING AGREEMENT L
-VOICE-INITIATED TRANSACTIONS
Loss caused by a
Voice-initiated Transaction, where the request for such Voice-initiated
Transaction is unauthorized or fraudulent and is made with the manifest intent
to deceive; provided, that the entity which receives such request generally
maintains and follows during the Bond Period all Designated Procedures with
respect to Voice-initiated Redemptions and the Designated Procedures described
in paragraph 2f (1) and (3) of this Rider with respect to all other
Voice-initiated Transactions. The isolated failure of such entity to maintain
and follow a particular Designated Procedure in a particular instance will not
preclude coverage under this Insuring Agreement, subject to the specific
exclusions herein and in the Bond.
2. Definitions. The
following terms used in this Insuring Agreement shall have the following
meanings:
a. Voice-initiated
Transaction means any Voice-initiated Redemption, Voice-initiated Election,
Voice-initiated Exchange, or Voice-initiated Purchase.
b. Voice-initiated
Redemption means any redemption of shares issued by an Investment Company
which is requested by voice over the telephone.
c. Voice-initiated
Election means any election concerning dividend options available to Fund
shareholders which is requested by voice over the telephone.
d. Voice-initiated
Exchange means any exchange of shares in a registered account of one Fund into
shares in an identically registered account of another Fund in the same complex
pursuant to exchange privileges of the two Funds, which exchange is requested
by voice over the telephone.
e. Voice-initiated
Purchase means any purchase of shares issued by an Investment Company which is
requested by voice over the telephone.
f. Designated Procedures
means the following procedures:
(1) Recordings: All
Voice-initiated Transaction requests shall be recorded, and the recordings
shall be retained for at least six (6) months. Information contained on
the recordings shall be capable of being retrieved and produced within a
reasonable time after retrieval of specific information is requested, at a
success rate of no less than 85%.
(2) Identity Test:
The identity of the caller in any request for a Voice-initiated Redemption
shall be tested before executing that Voice-initiated Redemption, either by
requesting the caller to state a unique identification number or to furnish key
specific account information.
(3) Written
Confirmation: A written confirmation of each Voice-initiated Transaction and of
each change of the record address of a Fund shareholder requested by voice over
the telephone shall be mailed to the shareholder(s) to whose account such
Voice-initiated Transaction or change of address relates, at the original
record address (and, in the case of such change of address, at the changed
record address) by the end of the Insureds next regular processing cycle, but
no later than five (5) business days following such Voice-initiated
Transaction or change of address.
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED ICB014 Ed. 7-04
1
g. Investment Company
or Fund means an investment company registered under the Investment Company
Act of 1940.
h. Officially Designated
means or refers to a written designation signed by a shareholder of record of a
Fund, either in such shareholders initial application for the purchase of Fund
shares, with or without a Signature Guarantee, or in another document with a
Signature Guarantee.
i. Signature Guarantee
means a written guarantee of a signature, which guarantee is made by a
financial or banking institution whose deposits are insured by the Federal
Deposit Insurance Corporation or by a broker which is a member of any national
securities exchange registered under the Securities Exchange Act of 1934.
3. Exclusions. It is
further understood and agreed that this Insuring Agreement shall not cover:
a. Any loss covered under
Insuring Agreement A, Fidelity, of this Bond; and
b. Any loss resulting
from:
(1) Any
Voice-initiated Redemption, where the proceeds of such redemption were
requested to be paid or made payable to other than (a) the shareholder of
record, or (b) a person Officially Designated to receive redemption
proceeds, or (c) a bank account Officially Designated to receive
redemption proceeds; or
(2) Any
Voice-initiated Redemption of Fund shares which had been improperly credited to
a shareholders account, where such shareholder (a) did not cause,
directly or indirectly, such shares to be credited to such account, and (b) directly
or indirectly received any proceeds or other benefit from such redemption; or
(3) Any
Voice-initiated Redemption from any account, where the proceeds of such
redemption were requested to be sent (a) to any address other than the
record address for such account, or (b) to a record address for such
account which was either (i) designated over the telephone fewer than
thirty (30) days prior to such redemption, or (ii) designated in writing
less than on (1) day prior to such redemption; or
(4) The intentional
failure to adhere to one or more Designated Procedures; or
(5) The failure to
pay for shares attempted to be purchased; or
(6) Any
Voice-initiated Transaction requested by voice over the telephone and received
by an automated system which receives and converts such request to executable
instructions.
4. The total liability of
the Underwriter under Insuring Agreement L is limited to the sum of Two Million
Five Hundred Thousand Dollars ($2,500,000 ), it being understood, however, that
such liability shall be part of and not in addition to the Limit of Liability
stated in Item 3 of the Declarations of the attached bond or amendment thereof.
5. With respect to
coverage afforded under this Rider the applicable Deductible Amount is Twenty
Five Thousand Dollars ($25,000 ).
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB015 Ed. 7-04
2
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Amend Definition of
Employee (Exclude EDP Coverage for Computer Software or Programs)
It is agreed that:
1. Sub-section 7 of Section 1(a) in
the Definition of Employee, is deleted and replaced by the following:
(7) each natural
person, partnership or corporation authorized by written agreement with the
Insured to perform services as electronic data processor of checks or other
accounting records of the Insured (does not include the creating, preparing,
modifying or maintaining the Insureds computer software or programs), but
excluding any such processor who acts as transfer agent or in any other agency
capacity in issuing checks, drafts or securities for the Insured, unless
included under sub-section (9) hereof, and Nothing herein contained shall
be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB016 Ed. 7-04
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Definition of Investment
Company
It is agreed that:
1. Section 1,
Definitions, under General Agreements is amended to include the following
paragraph:
(f) Investment
Company means an investment company registered under the Investment Company Act
of 1940 and as listed under the names of Insureds on the Declarations.
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB017 Ed. 7-04
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Amend Section 2. -
Exclusions - Loss reporting after termination of Bond
It is agreed that:
1. Section 2.
Exclusions, of the CONDITIONS AND LIMITATIONS is amended to include the
following subsection:
(X) loss not
reported to the Company in writing within Sixty (60) days after the termination
of this bond as an entirety
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB018 Ed. 7-04
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Amend Section 13. -
Termination as to any Employee
It is agreed that:
1. Sub-sections (b) of
Section 13. TERMINATION under CONDITIONS AND LIMITATIONS, is deleted in
its entirety, and the following is substituted in lieu thereof:
Upon the detection by any
Insured that such Employee has committed any dishonest or fraudulent act(s) or
theft, the Insured shall immediately remove such Employee from a position that
may enable such Employee to cause the Insured to suffer a loss by any
subsequent dishonest or fraudulent act(s) or theft. The Insured, within
forty-eight (48) hours of such detection, shall notify the Underwriter with
full and complete particulars of the detected dishonest or fraudulent act(s) or
theft, or For purposes of this section, detection occurs when any partner,
officer, or supervisory Employee of any Insured, who is not in collusion with
such (detected) Employee, becomes aware that the (detected) Employee has
committed any dishonest or fraudulent act(s) or theft.
This Bond shall terminate
as to any Employee by written notice to each Insured and to the Securities and
Exchange Commission from the Underwriter of not less than sixty (60) days prior
to the effective date of termination specified in such notice.
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
INSURED
ICB026 Ed. 7-04
2004 The St. Paul Travelers Companies, Inc.
All Rights Reserved
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES
THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces
preceded by an (*) need not be completed if this endorsement or rider and the
Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF
BOND OR POLICY NO.
483PB0866
DATE ENDORSEMENT OR RIDER
EXECUTED
07/29/09
* EFFECTIVE DATE OF
ENDORSEMENT OR RIDER 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR
POLICY
07/27/09
* ISSUED TO CLOUGH GLOBAL
ALLOCATION FUND
Add Exclusions (n) &
(o)
It is agreed that:
1. Section 2,
Exclusions, under General Agreements, is amended to include the following sub-sections:
(n) loss from the
use of credit, debit, charge, access, convenience, identification, cash
management or other cards, whether such cards were issued or purport to have
been issued by the Insured or by anyone else, unless such loss is otherwise
covered under Insuring Agreement A.
(o) the underwriter
shall not be liable under the attached bond for loss due to liability imposed
upon the Insured as a result of the unlawful disclosure of non-public material
information by the Insured or any Employee, or as a result of any Employee
acting upon such information, whether authorized or unauthorized.
Nothing herein contained
shall be held to vary, alter, waive, or extend any of the terms, conditions,
provisions, agreements or limitations of the above mentioned Bond or Policy,
other than as above stated.
By
Authorized Representative
The hard copy of the bond
issued by the Underwriter will be referenced in the event of a loss
July
8, 2009
Clough
Global Allocation Fund
1290
Broadway, Suite 1100
Denver,
Colorado 80203
Re: Fidelity Bond
Jointly Insured Letter Agreement
To
Whom It May Concern:
The
parties hereto (each a Trust and collectively the Trusts) will be named as
joint insured(s) pursuant to a bond to be issued by St. Paul Fire and Marine
Insurance Company, a St. Paul Travelers Insurance Company (the Bond), with a
limit of liability set at $2,500,000 for all three Funds although for a single
Trust the limit would be $1,000,000 for the Clough Global Allocation or Clough
Global Equity Fund, and $1,500,000 for the Clough Global Opportunities Fund, as
set forth under Rule 17g-1(f) of the Investment Company Act of 1940 (the Act),
which provides that where a registered management investment company such as
one of the Trusts named as insured under a joint insured bond, such investment
company shall enter into an agreement with the other joint insured(s) providing
for an equitable and proportionate share of any recovery under the bond as a
result of any loss sustained.
Accordingly,
it is agreed that in the event recovery is received under the Bond as a result
of a loss sustained by more that on of the Trusts, each such Trust shall
receive an equitable and proportionate share of the recovery, but at least
equal to the amount of the minimum coverage required for such Trust pursuant to
Rule 17g-1(d) under the Act.
|
Very
truly yours,
|
|
|
|
CLOUGH
GLOBAL EQUITY FUND
|
|
|
|
By:
|
/s/ Erin E. Douglas
|
|
Name:
|
Erin
E. Douglas
|
|
Title:
|
Secretary
|
|
|
|
CLOUGH
GLOBAL OPPORTUNITIES FUND
|
|
|
|
By:
|
/s/ Erin E. Douglas
|
|
Name:
|
Erin
E. Douglas
|
|
Title:
|
Secretary
|
AGREED:
|
|
|
|
|
|
CLOUGH
GLOBAL ALLOCATION FUND
|
|
|
|
By:
|
/s/
Edmund J. Burke
|
|
Name:
|
Edmund
J. Burke
|
|
Title:
|
President
|
|
Approval of GLV Insurance Policies
VOTED:
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that
the Board of Trustees (the Board) of the Clough Global Allocation Fund
(GLV) hereby authorizes the officers of GLV to negotiate and effect GLVs
fidelity bond and E&O/D&O insurance policies based on the parameters
outlined to the Board;
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FURTHER
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VOTED:
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that
the form and amount of the joint mutual fund professional and directors and
officers liability policy (Joint D&O/E&O Policy) and joint fidelity
bond, as discussed at this meeting, be, and the same hereby is, approved
after consideration of all factors deemed relevant by the Board;
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FURTHER
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VOTED:
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that
the Joint D&O/E&O Policy, with the coverages and premiums as
described at this meeting be, and hereby are approved in accordance with Rule
17-d under the Investment Company Act of 1940.
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FURTHER
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VOTED:
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that
the officers of GLV are hereby authorized to execute a Letter Agreement by
and among the Clough Global Equity Fund, Clough Global Opportunities Fund,
and GLV (each an Insured Party and collectively Insured Parties)
providing that in the event of a loss sustained by the Insured Parties, each
Insured Party shall receive an equitable and proportionate share of the
recovery, which Letter Agreement shall be substantially the same as attached
hereto;
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FURTHER
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VOTED:
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that
the Secretary of GLV be, and hereby is designated as the
officer responsible for making the necessary filings and giving the notices
with respect to such fidelity bond required by paragraph (g) of Rule 17g-1
under the Investment Company Act of 1940; and
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FINALLY
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VOTED:
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that
the officers of GLV be, and each of them hereby is, authorized and empowered
to take all actions as they, or any of them in his or her discretion, with
the advice of counsel, may deem necessary or appropriate to carry out the
intents and purposes of the foregoing resolutions.
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