Fidelity Bond Filed Pursuant to Rule 17g-1(g)(1) of the Investment Company Act of 1940 (40-17g)

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000


INVESTMENT COMPANY BOND

GREAT AMERICAN INSURANCE COMPANY

(A Stock Insurance Company, Herein Called the Underwriter)

DECLARATIONS		Bond No. 547-97-26-09
Item 1.	Name of Insured (herein called Insured):	Homestead Funds, Inc.
	Principal Address:	4301 Wilson Blvd.
		Arlington, VA 22203-1860

Item 2.	Bond Period from 12:01 a.m. 12/15/2012 to 12:01 a.m. 12/15/2013 the effective date of the termination or cancellation of this bond, standard time at the Principal Address as to each of the said dates.

Item 3.	Limit of Liability – Subject to Sections 9, 10 and 12 hereof,
			Limit of
	Amount applicable to		Liability		Deductible

	Insuring Agreement (A)-FIDELITY		$	2,500,000	$	25,000
	Insuring Agreement (B)-ON PREMISES		$	2,500,000	$	25,000
	Insuring Agreement (C)-IN TRANSIT		$	2,500,000	$	25,000
	Insuring Agreement (D)-FORGERY OR ALTERATION		$	2,500,000	$	25,000
	Insuring Agreement (E)-SECURITIES		$	2,500,000	$	25,000
	Insuring Agreement (F)-COUNTERFEIT CURRENCY		$	2,500,000	$	25,000
	Insuring Agreement (G)-STOP PAYMENT		$	100,000	$	5,000
	Insuring Agreement (H)-UNCOLLECTIBLE ITEMS OF DEPOSIT		$	100,000	$	5,000
	Insuring Agreement (I)-AUDIT EXPENSE		$	100,000	$	5,000
	Insuring Agreement (J)-TELEFACSIMILE TRANSMISSIONS		$	2,500,000	$	25,000
	Insuring Agreement (K)-UNAUTHORIZED SIGNATURES		$	100,000	$	5,000

	Optional Insuring Agreements and Coverages

	Insuring Agreement (L)-COMPUTER SYSTEMS		$	2,500,000	$	25,000
	Insuring Agreement (M)-AUTOMATED PHONE SYSTEMS		$	2,500,000	$	25,000

	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 Insured’s 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: N/A

Item 5.	The liability of the Underwriter is subject to the terms of the following riders attached hereto: Riders
	No. 1, 2, 3, & 4

Item 6.	The Insured by the acceptance of this bond gives to the Underwriter terminating or canceling prior bond(s)
	or policy(ies) No.(s) 547-97-26-08 such termination or cancellation to be effective as of the time this
	bond becomes effective.


	By:	/s/ Frank J. Scheckton, Jr.
		Authorized Representative

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000


INVESTMENT COMPANY BOND

The Underwriter, in consideration of an agreed premium, and subject to the Declarations made a part hereto, the General
Agreements, Conditions and Limitations and other terms of this bond, agrees with the Insured, in accordance with 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		(C) IN TRANSIT

Loss resulting from any dishonest or fraudulent act(s),		Loss of Property (occurring with or without negligence or
including Larceny and Embezzlement committed by an		violence) through robbery, Larceny, theft, hold-up,
Employee, committed anywhere and whether committed alone		misplacement, mysterious unexplainable disappearance,
or in collusion with others, including loss of Property resulting		being lost or otherwise made away with, damage thereto
from such acts of an Employee, which Property is held by the		or destruction thereof, and loss of subscription, conversion,
Insured for any purpose or in any capacity and whether so held		redemption or deposit privileges through the misplacement
gratuitously or not and whether or not the Insured is liable		or loss of Property, while the Property is in transit anywhere
therefor.		in the custody of any person or persons acting as
		messenger, except while in the mail or with a carrier for hire
Dishonest or fraudulent act(s) as used in this Insuring		other than an armored motor vehicle company, for the
Agreement shall mean only dishonest or fraudulent act(s)		purpose of transportation, such transit to begin immediately
committed by such Employee with the manifest intent:		upon receipt of such Property by the transporting person or
(a)	to cause the Insured to sustain such loss; and	persons, and to end immediately upon delivery thereof at
(b)	to obtain financial benefit for the Employee, or	destination.
	for any other person or organization intended
	by the Employee to receive such benefit, other
	than salaries, commissions, fees, bonuses,	(D) FORGERY OR ALTERATION
	promotions, awards, profit sharing, pensions or
	other employee benefits earned in the normal	Loss through FORGERY or ALTERATION of, on or in
	course of employment.	any bills of exchange, checks, drafts, acceptance certificates
(B) ON PREMISES		of deposits, promissory notes, or other written promises,
		orders or direction to pay sums certain in money due bills,
Loss of Property (occurring with or without negligence or		money orders, warrants, orders upon public treasuries, letters
violence) through robbery, burglary Larceny, theft, holdup, or		of credit, written instructions, advices or applications directed
other fraudulent means, misplacement, mysterious		to the Insured, authorizing or acknowledging the transfer,
unexplainable disappearance, damage thereto or destruction		payment, delivery or receipt of funds or Property, which
thereof, abstraction or removal from the possession, custody or		instructions or advices or applications purport to have been
control of the Insured, and loss of subscription, conversion,		signed or endorsed by any customer of the Insured,
redemption or deposit privileges through the misplacement or		shareholder or subscriber to shares, whether certificated or
loss of Property, while the Property is (or is supposed or		uncertificated, of any Investment Company or by any financial
believed by the Insured to be) lodged or deposited within any		or banking institution or stockbroker but which instructions,
offices or premises located anywhere, except in an office listed		advices or applications either bear the forged signature or
in Item 4 of the Declarations or amendment thereof or in the		endorsement or have been altered without the knowledge and
mail or with a carrier for hire other than an armored motor		consent of such customer, shareholder or subscriber to
vehicle company, for the purpose of transportation.		shares, whether certificated or uncertificated, of an Investment
		Company, financial or banking institution or stockbroker,
Offices and Equipment		withdrawal orders or receipts for the withdrawal of funds or
		Property, or receipts or certificates of deposits for Property
(1) Loss of or damage to furnishings, fixtures, stationary supplies		and bearing the name of the Insured as issuer, or of another
or equipment, within any of the Insured’s offices covered under		Investment Company for which the Insured acts as an agent,
this bond caused by Larceny or theft in, or by burglary, robbery		excluding, however, any loss covered under Insuring
or hold-up of such office, or attempt thereat, or by vandalism or		Agreement (F) hereof whether or not coverage for Insuring
malicious mischief; or		Agreement (F) is provided for in the Declarations of this bond.
(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		Any check or draft (a) made payable to a fictitious payee
thereat.		and endorsed in the name of such fictitious payee or (b)
		procured in a transaction with the maker or drawer thereof or

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GREAT AMERICAN

Administrative Offices

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Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

with one acting as an agent of such maker or drawer or anyone

The word “counterfeited” as used in this Insuring Agreement shall be

impersonating another and made or drawn payable to the one so

deemed to mean any security, document or other written instrument

impersonated and endorsed by anyone other than the one

which is intended to deceive and to be taken for an original.

impersonated, shall be deemed to be forged as to such

endorsement.

Mechanically reproduced facsimile signatures are treated the same as

handwritten signatures.

Mechanically reproduced facsimile signatures are treated the

same as handwritten signatures.

(F) COUNTERFEIT CURRENCY

(E) SECURITIES

Loss through the receipt by the Insured, in good faith, of any

counterfeited money orders or altered paper currencies or coin of the

Loss sustained by the Insured, including loss sustained by reason

United States of America or Canada issued or purported to have been

of a violation of the constitution, by-laws, rules or regulations of

issued by the United States of America or Canada or issued pursuant to

any Self Regulatory Organization of which the Insured is a

a United States of America or Canadian statute for use as currency.

member or which would have been imposed upon the Insured by

the constitution, by-laws, rules or regulations of any Self

(G) STOP PAYMENT

Regulatory Organization if the Insured had been a member thereof,

Loss against any and all sums which the Insured shall become

(1) through the Insured’s having, in good faith and in the course of

obligated to pay by reason of the Liability imposed upon the Insured by

business, whether for its own account or for the account of others,

law for damages:

in any representative, fiduciary, agency or any other capacity,

either gratuitously or otherwise, purchased or otherwise acquired,

For having either complied with or failed to comply with any written notice of

accepted or received, or sold or delivered, or given any value,

any customer, shareholder or subscriber of the Insured or any

extended any credit or assumed any liability, on the faith of, or

Authorized Representative of such customer, shareholder or

otherwise acted upon, any securities, documents or other written

subscriber to stop payment of any check or draft made or drawn by

instruments which prove to have been

such customer, shareholder or subscriber or any Authorized

(a) counterfeited, or

Representative of such customer, shareholder or subscriber, or

(b) forged as to the signature of any maker, drawer, issuer, endorser,

customer, shareholder or subscriber, or

assignor, lessee, transfer agent or registrar, acceptor, surety or

guarantor or as to the signature of any person signing in any

For having refused to pay any check or draft made or drawn by any

other capacity, or

customer, shareholder or subscriber of the Insured, or any Authorized

Representative of such customer, shareholder or subscriber.

(2) through the Insured’s having, in good faith and in the course of

(H) UNCOLLECTIBLE ITEMS OF DEPOSIT

business, guaranteed in writing or witnessed any signatures

Loss resulting from payments of dividends or fund shares, or

whether for valuable consideration or not and whether or not such

withdrawals permitted from any customer’s, shareholder’s, or

guaranteeing or witnessing is ultra vires the Insured, upon any

subscriber’s account based upon Uncollectible items of Deposit of a

transfers, assignments, bills of sale, powers of attorney,

customer, shareholder or subscriber credited by the Insured or the

guarantees, endorsements or other obligations upon or in

Insured’s agent to such customer’s, shareholder’s or subscriber’s

connection with any securities, documents or other written

Mutual Fund Account: or

instruments, and which pass or purport to pass title to such securities,

loss resulting from any item of Deposit processed through an

documents or other written instruments; EXCLUDING, losses

Automated Clearing House which is reversed by the customer,

caused by FORGERY or ALTERATION of, on or in those

shareholder or subscriber and deemed uncollectible by the Insured.

instruments covered under Insuring Agreement (D) hereof.

Loss includes dividends and interest accrued not to exceed 15% of the

Uncollectible items which are deposited.

Securities, documents or other written instruments shall be

This Insuring Agreement applies to all Mutual Funds with “exchange

deemed to mean original (including original counterparts)

privileges” if all Fund(s) in the exchange program are insured by a

negotiable or non-negotiable agreements which in and of

Great American Insurance Company of Cincinnati, OH for Uncollectible

themselves represent an equitable interest, ownership, or debt,

Items of Deposit. Regardless of the number of transactions between

including an assignment thereof which instruments are in the

Fund(s) the minimum number of days of deposit within the Fund(s)

ordinary course of business, transferable by delivery of such

before withdrawal as declared in the Fund(s) prospectus shall begin

agreements with any necessary endorsement or assignment.

from the date a deposit was first credited to any Insured Fund(s).

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GREAT AMERICAN

Administrative Offices

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Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

(I) AUDIT EXPENSE

instructions in the ordinary course of business, but which test key has

been wrongfully obtained by a person who was not authorized to

Expense incurred by the Insured for that part of the cost of audits

initiate, make validate or authenticate a test key arrangement; and

or examinations required by any governmental regulatory authority

(ii)

fraudulently purport to have been sent by such customer or financial

to be conducted either by such authority or by an independent

institution, but which telefacsimile instructions are transmitted without

accountant by reason of the discovery of loss sustained by the

the knowledge or consent of such customer or financial institution by a

Insured through any dishonest or fraudulent act(s), including

person other than such a customer or financial institution and which

Larceny or Embezzlement of any of the Employees. The total

bear a forged signature.

liability of the Underwriter for such expense by reason of such acts

“Telefacsimile” means a system of transmitting written documents by

of any Employee or in which such Employee is concerned or

electronic signals over telephone lines to equipment maintained by the

implicated or with respect to any one audit or examination is

Insured within its communication room for the purposes of reproducing

limited to the amount stated opposite Audit Expense in Item 3 of

a copy of said document. It does not mean electronic communication

the Declaration; it being understood, however, that such expense

sent by Telex, TWC, or electronic mail, or Automated Clearing House.

shall be deemed to be a loss sustained by the Insured through any

dishonest or fraudulent act(s), including Larceny and

(K) UNAUTHORIZED SIGNATURES

Embezzlement of one or more of the Employees and the liability

under the paragraph shall be in addition to the Limit of Liability

Loss resulting directly from the Insured having accepted, paid or cashed

stated in Insuring Agreement (A) in Item 3 of the Declarations.

any check or withdrawal order, draft, made or drawn on a customer’s

account which bears the signature or endorsement of one other than a

(J) TELEFACSIMILE TRANSMISSIONS

person whose name and signature is on the application on file with the Insured

as a signatory on such account.

Loss resulting by reason of the Insured having transferred, paid or

delivered any funds or Property, established any credit, debited

It shall be a condition precedent to the Insured’s right to

any account or given any value relying on any fraudulent

recovery under the Insuring Agreement that the Insured

instructions sent by a customer or financial institution by

shall have on file signatures of all persons who are

Telefacsimile Transmission directed to the Insured, authorizing or

authorized signatories on such account.

acknowledging the transfer, payment, or delivery of funds or

property, the establishment of a credit, debiting of any account, or

the giving of value by the Insured, but only if such telefacsimile

instructions:

(i) bear a valid test key exchanged between the Insured and a

customer or another financial institution with authority to use such

test key for Telefacsimile

GENERAL AGREEMENTS

(A) ADDITIONAL OFFICES OR EMPLOYEES-CONSOLIDATION

acquisition within 60 days of said date, and an additional premium shall

OR MERGER-NOTICE

be computed only if such acquisition involves additional offices or

employees.

(1) If the Insured shall, while this bond is in force, establish any

additional offices or offices, such office or offices shall be

(B) WARRANTY

automatically covered hereunder from the dates of their

establishment, respectively. No notice to the Underwriter of an

No statement made by or on behalf of the Insured, whether contained in

increase during any premium period in the number of offices or in

the application or otherwise, shall be deemed to be a warranty of

the number of Employees at any of the offices covered hereunder

anything except that it is true to the best of the knowledge and belief of

need be given and no additional premium need be paid for the

the person making the statement.

remainder of such premium period.

(2) If an Investment Company, named as Insured herein, shall,

Agreements or Coverages now or hereafter forming part of this bond)

while this bond is in force, merge or consolidate with, or purchase

the assets of another institution, coverage for such acquisition

The Underwriter will Indemnify the Insured against court costs and

shall apply automatically from the date of acquisition. The Insured

reasonable attorneys’ fees incurred and paid by the Insured in defense,

shall notify the Underwriter of such

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 Insured’s liability or alleged liability on account of any loss,

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GREAT AMERICAN

Administrative Offices

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Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000


claim or damage which, if established against the Insured, would			give all reasonable information and assistance which the Underwriter
constitute a loss sustained by the Insured covered under the terms of this bond			shall deem necessary to the proper defense of such suit or legal
provided, however, that with respect to Insuring Agreement (A) this			proceeding.
indemnity shall apply only in the event that			If the Insured’s liability or alleged liability is greater than the amount
			recoverable under this bond, or if a Deductible Amount is applicable, the liability
(1) an Employee admits to being guilty of any dishonest or fraudulent			of the Underwriter under this General Agreement is limited to that
act(s), including Larceny or Embezzlement; or			percentage of litigation expense determined by pro ration of the bond
			limit of liability to the amount claimed, after the application of any
(2) an Employee is adjudicated to be guilty of any dishonest or			deductible. This litigation expense will be in addition to the Limit of
fraudulent act(s), including Larceny or Embezzlement;			Liability for the applicable Insuring Agreement.

(3) in the absence of (1) or (2) above an arbitration panel agrees,			(D) FORMER EMPLOYEE
after a review of an agreed statement of facts, that an Employee
would be found guilty of dishonesty if such Employee were			Acts of Employee, as defined in this bond, are covered under Insuring
prosecuted.			Agreement (A) only while the Employee is in the Insured’s employ.
			Should loss involving a former Employee of the Insured be discovered
The Insured shall promptly give notice to the Underwriter of any			subsequent to the termination of employment, coverage would still
such suit or legal proceeding and at the request of the Underwriter			apply under Insuring Agreement (A) if the direct proximate cause of the
shall furnish it with copies of all pleadings and other papers			loss occurred while the former Employee performed duties within the
therein. At the Underwriter’s election the Insured shall permit the			scope of his/her employment.
Underwriter to conduct the defense of such suit or legal
proceeding, in the Insured’s name, through attorneys of the
Underwriter’s selection. In such an event, the Insured shall

		THE FOREGOING INSURING AGREEMENTS AND
		GENERAL AGREEMENTS ARE SUBJECT TO
		THE FOLLOWING CONDITIONS AND
		LIMITATIONS:

SECTION 1. DEFINTIONS				coming within the scope of the usual duties of an
The following terms, as used in this bond, shall have the respective meanings stated in this Section:				officer or employer or while acting as a member of
(a) “Employee” means				any committee duly elected or appointed to examine
(1)	any of the Insured’s officers, partners, or			or audit or have custody of or access to the Property
	employees, and			of the Insured, and
(2)	any of the officers or employees of any		(6)	any individual or individuals assigned to perform
	predecessor of the Insured whose principal			the usual duties of an employee within the premises
	assets are acquired by the Insured by			of the Insured by contract, or by any agency
	consolidation or merger with, or purchase of			furnishing temporary personnel on a contingent or
	assets of capital stock of such predecessor,			part-time basis, and
	and		(7)	each natural person, partnership or corporation
(3)	attorneys retained by the Insured to perform			authorized by written agreement with the Insured to
	legal services for the Insured and the			perform services as electronic data processor of
	employees of such attorneys while such			checks or other accounting records of the Insured, but
	attorneys or the employees of such attorneys			excluding any such processor who acts as transfer
	are performing such services for the Insured,			agent or in any other agency capacity in issuing
	and			checks, drafts or securities for the Insured, unless
(4)	guest students pursuing their studies or			included under Subsection (9) hereof, and
	duties in any of the Insured’s offices, and		(8)	those persons so designated in section 15,
(5)	directors and trustees of the Insured, the			Central Handling of Securities, and
	investment advisor, underwriter (distributor),		(9)	any officer, partner or Employee of
	transfer agent, or shareholder accounting			a)	an investment advisor,
	record keeper, or administrator authorized by			b)	an underwriter (distributor),
	written agreement to keep financial and/or
	other required records, but only while
	performing acts

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GREAT AMERICAN

Administrative Offices

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547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

a transfer agent or shareholder accounting

an interest or in which the Insured acquired or should have acquired an

record-keeper or

interest by reason of a predecessor’s declared financial condition at the

an administrator authorized by written

time of the Insured’s consolidation or merge with, or purchase of the

agreement to keep financial and/or other

principal assets of, such predecessor or which are held by the Insured

required records,

for any purpose or in any capacity and whether so held by the Insured

for an Investment Company, named as Insured while performing

for any purpose or in any capacity and whether so held gratuitously or

acts coming within the scope of the usual duties of an officer or

not and whether or not the Insured is liable thereof.

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

to deceive; it does not include the signing of one’s own name with or

Employees or partners of a transfer agent, shareholder

without authority, in any capacity or for any purpose.

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

(d) “Larceny and Embezzlement” as it applies to any named Insured

of the adviser, underwriter or administrator of such Investment

means those acts as set forth in Section 37 of the Investment Company

Company, and which is not a bank shall be included within the

Act of 1940.

definition of Employee.

Each employer of temporary personnel or processors as set forth

(e) “Items of Deposit” means any one or more checks and drafts.

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

SECTION 2. EXCLUSIONS

last paragraph of Section 13.

THIS BOND DOES NOT COVER:

Brokers, or other agents under contract or representatives of the

same general character shall not be considered Employees.

(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), (D), (E) or (F).

(b) “Property” means money (i.e. currency, coin, bank notes,

Federal Reserve notes), postage and revenue stamps, U.S.

(b) loss due to riot or civil commotion outside the United States of

Savings Stamps, bullion, precious metals of all kinds and in any

America and Canada; or loss due to military, naval or usurped power,

form and articles made therefrom, jewelry, watches, necklaces,

war or insurrection unless such loss occurs in transit in the

bracelets, gems, precious and semi-precious stones, bonds

circumstances recited in Insuring Agreement (D), and unless when

securities, evidence of debts, debentures, scrip, certificates,

such transit was initiated, there was no knowledge of such riot, civil

interim receipts, warrants, rights, puts, calls, straddles, spreads,

commotion, military, naval or usurped power, war or insurrection on

transfers, coupons, drafts, bills of exchange, acceptances, notes,

the part of any person acting for the Insured in initiating such transit.

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

resulting from the effects of nuclear fission or fusion or radioactivity;

chattels and upon interests therein, and assignments of such

provided, however, that this paragraph shall not apply to loss resulting

policies, mortgages, and instruments and other valuable papers,

from industrial uses of nuclear energy.

including books of account and other records used by the Insured

in the conduct of its business, and all other instruments similar to

(d) loss resulting from any wrongful act or acts of any person who is a

or in the nature of the foregoing including Electronic

member of the Board of Directors of the Insured or a member of any

Representation of such Instruments enumerated above (but

equivalent body by whatsoever name known unless such person is

excluding all data processing records) in which the Insured has

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 nonpayment 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

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GREAT AMERICAN

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Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

or unauthorized and whether procured in good faith or through

depositor or representative of such person, who is within the premises

trick, artifice, fraud or false pretenses, unless such loss is covered

of the drawee bank of the Insured or within the office of the Insured at

under Insuring Agreement (A), (E) or (F).

the time of such payment or withdrawal or unless such payment is

covered under Insuring Agreement (A).

(f) loss resulting from any violation by the Insured or by any

Employee

(m) any loss resulting from Uncollectible Items of Deposit which are

(1)

of law regulating (a) the issuance, purchase

drawn from a financial institution outside of the fifty states of the United

or sale of securities, (b) securities transaction

States of America, District of Columbia, and territories and possessions

upon Security Exchanges or over the counter

of the United States of America, and Canada.

market, (c) Investment Companies, or (d)

Investment Advisors, or

SECTION 3. ASSIGNMENT OF RIGHTS

(2)

of any rule or regulation made pursuant to

any such law.

This bond does not afford coverage in favor of any Employers of

unless such loss, in the absence of such laws, rules or regulations,

temporary personnel or of processors as set forth in sub-sections (6)

would be covered under Insuring Agreements (A) or (E).

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

(g) loss of Property or loss of privileges through the misplacement

or fraudulent act(s) including Larceny and Embezzlement committed

or loss of Property as set forth in Insuring Agreement (C) or (D)

by any of the partners, officers or employees of such Employers,

while the Property is in the custody of any armored motor vehicle

whether acting alone or in collusion with others, an assignment of

company, unless such loss shall be in excess of the amount

such of the Insured’s rights and causes of action as it may have against

recovered or received by the Insured under (a) the Insured’s

such Employers by reason of such acts so committed shall, to the

contract with said armored motor vehicle company, (b) insurance

extent of such payment, be given by the Insured to the Underwriter, and

carried by said armored motor vehicle company for the benefit of

the Insured shall execute all papers necessary to secure to the

users of its service, and (c) all other insurance and indemnity in

Underwriter the rights herein provided for.

force in whatsoever form carried by or for the benefit of users of

said armored motor vehicle company’s service, and then this bond

SECTION 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS

shall cover only such excess.

This bond is for the use and benefit only of the Insured named in the

(h) potential income, including but not limited to interest and

Declaration and the Underwriter shall not be liable hereunder for loss

dividends, not realized by the insured because of a loss covered

sustained by anyone other than the Insured unless the Insured, in its

under this bond, except as included under Insuring Agreement (I).

sole discretion and at its option, shall include such loss in the Insured’s

proof of loss. At the earliest practicable moment after discovery of any

(i) all damages of any type for which the Insured is legally liable,

loss hereunder the Insured shall give the Underwriter written notice

except direct compensatory damages arising from a loss covered

thereof and shall also within six months after such discovery furnish to

under this bond.

the Underwriter affirmative proof of loss with full particulars. If claim is

made under this bond for loss of securities or shares, the Underwriter

(j) loss through the surrender of Property away from an office of

shall not be liable unless each of such securities or shares is identified

the Insured as a result of a threat

in such proof of loss by a certificate or bond number or, where such

(1)

to do bodily harm to any person, except

securities or shares are uncertificated, by such identification means as

loss of Property in transit in the custody of any

agreed to by the Underwriter. The Underwriter shall have thirty days

person acting as messenger provided that

after notice and proof of loss within which to investigate the claim, and

when such transit was initiated there was no

this shall apply notwithstanding the loss is made up wholly or in part of

knowledge by the Insured of any such threat, or

securities of which duplicates may be obtained. Legal proceedings for

(2)

to do damage to the premises or Property of

recovery of any loss hereunder shall not be brought prior to the

the Insured, except when covered under Insuring

expiration of sixty day after such proof of loss is filed with the

Agreement (A).

Underwriter nor after the expiration of twenty-four months from the

discovery of such loss, except that any action or proceeding to recover

(k) all costs, fees and other expenses incurred by the Insured in

hereunder

establishing the existence of or the amount of loss covered under

this bond unless such indemnity is provided for under Insuring

Agreement (I).

(l) loss resulting from payments made or withdrawals from the

account of the 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

Page 6 of 10

GREAT AMERICAN

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Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

on account of any judgment against the Insured in any suit

make such replacement or repair. If the Underwriter and the Insured

mentioned in General Agreement C or to recover attorney’s fees

cannot agree upon such cash value or such cost or replacement or

paid in any such suit, shall be begun within twenty-four months

repair, such shall be determined by arbitration.

from the date upon which the judgment in such suit shall become

final. If any limitation embodied in in this bond is prohibited by any

SECTION 7. LOST SECURITIES

law controlling the construction hereof, such limitation shall be

deemed to be amended so as to be equal to the minimum period

If the Insured shall sustain a loss of securities the total value of which is

of limitation permitted by such law.

in excess of the limit stated in Item 3 of the Declaration of this bond, the

Discovery occurs when the Insured

liability of the Underwriter shall be limited to payment for, or duplication

(a) becomes aware of facts, or

of, securities having value equal to the limit stated in Item 3 of the

(b) receives written notice of an actual or

Declarations of this bond.

potential claim by a third party which alleges that

the Insured is liable under circumstance

If the Underwriter shall make payment to the Insured for any loss of

which would cause a reasonable person to assume that a loss

securities, the Insured shall thereupon assign to the Underwriter all of

covered by the bond has been or will be incurred even though the

the Insured’s rights, title and interest in and to said securities.

exact amount or details of loss may not be then known.

With respect to securities the value of which do not exceed the

SECTION 5. VALUATION OF PROPERTY

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

The value of any Property, except books of accounts or other

request of the Insured issue a Lost Instrument Bond or Bonds to effect

records used by the Insured in the conduct of its business, for the

replacement thereof, the Insured will pay the usual premium charged

loss of which a claim shall be made hereunder, shall be determined

therefor and will indemnify the Underwriter against all loss or expense

by the average market value of such Property on the business day

that the Underwriter may sustain because of the issuance of such Lost

next preceding the discovery of such loss; provided, however, that

Instrument Bond or Bonds.

the value of any Property replaced by the Insured prior to the

payment of claim therefore shall be the actual market value at the

With respect to securities the value of which exceeds the Deductible

time of replacement; and further provided that in case of a loss or

Amount (at the time of discovery of the loss) and for which the

misplacement of interim certificates, warrants, rights, or other

Underwriter may issue or arrange for the issuance of a Lost Instrument

securities, the production which is necessary to the exercise of

Bond or Bonds to effect replacement thereof, the Insured agrees that

subscription, conversion, redemption or deposit privileges, the value

it will pay as premium therefor a proportion of the usual premium

thereof shall be the market value of such privileges immediately

charged therefor, said proportion being equal to the percentage that

preceding the expiration thereof if said loss or misplacement is not

the Deductible Amount bears to the value of the securities upon

discovered until after their expiration. If no market price is quoted for

discovery of the loss, and that it will indemnify the issuer of said Lost

such Property or for such privileges, the value shall be fixed by

Instrument Bond or Bonds against all loss and expense that is not

agreement between the parties or by arbitration.

recoverable from the Underwriter under the terms and conditions of

this INVESTMENT COMPANY BOND subject to the Limit of Liability

In case of any loss or damage to Property consisting of books of

hereunder.

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

SECTION 8. SALVAGE

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

In case of recovery, whether made by the Insured or by the Underwriter,

of labor for the actual transcription or copying of data which shall

on account of any loss in excess of the Limit of Liability hereunder plus

have been furnished by the Insured in order to reproduce such

the Deductible Amount applicable to such loss from any source other

books and other records.

than suretyship, insurance, reinsurance, security or indemnity taken by

or for the benefit of the Underwriter, the net amount of such recovery,

SECTION 6. VALUATION OF PREMISES AND FURNISHINGS

less the actual cost and expenses of making same, shall be applied to

reimburse the Insured in full for the excess portion of such loss, and the

In case of damage to any office of the Insured, or loss of or damage

remainder, if any, shall be paid first in reimbursement of the Underwriter

to the furnishings, fixtures, stationary, supplies, equipment, safes or

and thereafter in reimbursement of the Insured for that part of such loss

vaults therein, the Underwriter shall not be liable for more than the

within the Deductible Amount. The Insured shall execute all necessary

actual cash value thereof, or for more than the actual cost of their

papers to secure to the Underwriter the rights provided herein.

replacement or repair. The Underwriter may, at its election, pay such

actual cash value or

Page 7 of 10

GREAT AMERICAN

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Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

SECTION 9. NON-REDUCTION AND NONACCUMULATION OF

on such loss or the amount available to the Insured under such other

LIABILITY AND TOTAL LIABILITY

bonds, or policies, as limited by the terms and conditions thereof, for

any such loss if the latter amount be the larger.

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

SECTION 11. OTHER INSURANCE

Declarations of this bond notwithstanding any previous loss for

which the Underwriter may have paid or be liable to pay hereunder;

If the Insured shall hold, as indemnity against any loss covered

PROVIDED, however, that regardless of the number of years this

hereunder, any valid and enforceable insurance or suretyship, the

bond shall continue in force and the number of premiums which

Underwriter shall be liable only for such amount of such loss which is

shall be payable or paid, the liability of Underwriter under this bond

in excess of the amount of such other insurance or suretyship, not

with respect to all loss resulting from

exceeding, however, the Limit of Liability of this bond applicable to such

(a)

any one act of burglary, robbery or hold-up,

loss.

or attempt thereat, in which no Partner or

Employee is concerned or implicated shall be

SECTION 12. DEDUCTIBLE

deemed to be one loss, or

(b)

any one unintentional or negligent act on the

The Underwriter shall not be liable under any of the Insuring

part of any one person resulting in damage to or

Agreements of this bond on account of loss as specified, respectively,

destruction or misplacement of Property, shall be

in sub-sections (a), (b), (c), (d) and (e) of Section 9, NON-REDUCTION

deemed to be one loss, or

AND NONACCUMULATION OF LIABILITY AND TOTAL LIABILITY,

(c)

all wrongful acts, other than those specified

unless the amount of such loss, after deducting the net amount of all

in (a) above, of any one person shall be deemed

reimbursement and/or recovery obtained or made by the insured, other

to be one loss, or

than from any bond or policy of insurance issued by an insurance

(d)

all wrongful acts, other than those specified

company and covering such loss, or by the Underwriter on account

in (a) above, of one or more persons (which

thereof prior to the payment by the Underwriter of such loss, shall

dishonest act(s) or act(s) of Larceny or

exceed the Deductible Amount set forth in item 3 of the Declarations

Embezzlement include, but are not limited to, the

hereof (herein called Deductible Amount) and then for such excess

failure of an Employee to report such acts of

only, but in no event for more than the applicable Limit of Liability stated

others) whose dishonest act or acts intentionally

in Item 3 of the Declarations.

or unintentionally, knowingly or unknowingly,

directly or indirectly, aid or aids in any way, or

The Insured will bear, in addition to the Deductible Amount, premiums

permits the continuation of, the dishonest act or

on Lost instrument Bonds as set forth in Section 7.

acts of any other person or persons shall be

deemed to be one loss with the act or acts of the

There shall be no deductible applicable to any loss under Insuring

persons aided, or

Agreement A sustained by any Investment Company named as Insured

(e)

any one casualty or event other than those

herein.

specified in (a), (b), (c) or (d) preceding, shall be

deemed to be one loss, and

SECTION 13 TERMINATION

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

The Underwriter may terminate this bond as an entirety by furnishing

loss or losses and shall not be cumulative in amounts from year to

written notice specifying the termination date which cannot be prior to

year or from period to period.

90 days after the receipt of such written notice by each Investment

Company named as an Insured and the Securities and Exchange

Sub-section (c) is not applicable to any situation to which the

Commission, Washington, D.C. The Insured may terminate this bond

language of sub-section (d) applies.

as an entirety by furnishing written notice to the Underwriter. When the

Insured cancels, the Insured shall furnish written notice to the Securities

SECTION 10. LIMIT OF LIABILITY

and Exchange Commission, Washington, D.C. prior to 90 days before

the effective date of the termination. The Underwriter shall notify all

With respect to any loss set forth in the PROVIDED clause of

other Investment Companies named as Insured of the receipt of such

Section 9 of this bond which is recoverable or recovered in whole or

termination notice and the termination cannot be effective prior to 90

in part under any other bonds or policies issued by the Underwriter

days after receipt of written notice by all other Investment Companies.

to the Insured or to any predecessor in interest of the Insured and

Premiums are earned until termination date as set forth herein.

terminated or cancelled or allowed to expire and in which the period

for 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

Page 8 of 10

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

The Bond will terminate as to any one Insured, (other than a

additional period of 12 months within which to discover loss sustained

registered management investment company), immediately upon

by the Insured prior to the effective date of such termination or

taking over of such Insured by a receiver or other liquidator or by

cancellation and shall pay an additional premium therefor.

State or Federal officials, or immediately upon the filing of a petition

under any State or Federal statute relative to bankruptcy or

Upon receipt of such notice from the Insured, the Underwriter shall give

reorganization of the Insured, or assignment for the benefit of

its written consent thereto: provided, however, that such additional period

creditors of the Insured, or immediately upon such Insured ceasing

of time shall terminate immediately;

to exist, whether through merger into another entity, or by

(a)

on the effective date of any other insurance

disposition of all of its assets.

obtained by the Insured, its successor in business or

any other party, replacing in whole or in part the

This Bond will terminate as to any registered management

the insurance afforded by this bond, whether or not

investment company upon the expiration of 90 days after written

such other insurance provides coverage for loss

notice has been given to the Securities and Exchange Commission,

sustained prior to its effective date, or

Washington, D.C.

(b)

upon takeover of the Insured’s business by any

State or Federal official or agency, or by any receiver

The Underwriter shall refund the unearned premium computed as

or liquidator, acting or appointed for this purpose

short rates in accordance with the standard short rate cancellation

without the necessity of the Underwriter giving notice

tables if terminated by the Insured or pro rata if terminated for any

of such termination. In the event that such additional

other reason.

period of time is terminated, as provided above, the

Underwriter shall refund any unearned premium.

This Bond shall terminate

(a)

as to any Employee as soon as any partner,

The right to purchase such additional period for the discovery of loss

officer, or supervisory Employee of the Insured,

may not be exercised by any State or Federal official or agency, or by

who is not in collusion with such Employee, shall

any receiver or liquidator, acting or appointed to take over the Insured’s

learn of any dishonest or fraudulent act(s),

business for the operation or the liquidation thereof or for any other

including Larceny or Embezzlement on part of

purpose.

such Employee without prejudice to the loss of

any Property then in transit in the custody of

SECTION 15. CENTRAL HANDLING OF SECURITIES

such Employee and upon the expiration of ninety

(90) days after written notice has been given to

Securities included in the system for the central handling of securities

Securities and Exchange Commission,

established and maintained by Depository Trust Company, Midwest

Washington, D.C. (See Section 16[d]) and to the

Depository Trust Company, Pacific Securities Depository Trust

Insured Investment Company, or

Company, and Philadelphia Depository Trust Company, hereinafter

(b)

as to any Employee 90 days after receipt by

called Corporations, to the extent of the Insured’s interest therein as

each Insured and by the Securities and

effective by the making of appropriate entries on the books and records

Exchange Commission of a written notice from

of such Corporations shall be deemed to be Property.

the Underwriter of its desire to terminate this

bond as to such Employee, or

The words Employee” and “Employees” shall be deemed to include the

(c)

as to any person, who is a partner, officer, or

officers, partners, clerks and other employees of the New York Stock

employee of any Electronic Data Processor

Exchange, Boston Stock Exchange, Midwest Stock Exchange, Pacific

covered under this bond, from and after the time

Stock Exchange and Philadelphia Stock Exchange, hereinafter called

that the Insured or any partner or officer thereof

Exchanges, and of the above named Corporations, and of any nominee

not in collusion with such person shall have

in whose name is registered any security included within the systems for

knowledge of information that such person has

the central handling of securities established and maintained by such

committed any dishonest or fraudulent act(s),

Corporations, and any employee of any recognized service company,

including Larceny or Embezzlement in the

while such officers, partners, clerks and other employees and

service of the Insured or otherwise, whether such

employees of service companies perform services for such

act be committed before or after the time this

Corporation in the operation of such systems. For the purpose of the

bond is effective.

above definition a recognized service company shall be any company providing

clerks or other personnel to said Exchanges and Corporations on a

SECTION 14. RIGHTS AFTER TERMINATION OR CANCELLATION

contract basis.

At any time prior to termination or cancellation of this bond as an

The Underwriter shall not be liable on account of any loss(es) in

entirety, whether by the Insured or the Underwriter, the Insured may

connection with the central handling of securities within the systems

give to the Underwriter notice that if desires under this bond an

established and maintained by such Corporations, unless such loss(es)

Page 9 of 10

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shall be in excess of the amount(s) recoverable or recovered under

any bond or policy if insurance indemnifying such Corporations,

of any payment made hereunder to said first named Insured,

against such loss(es), and then the Underwriter shall be liable

hereunder only for the Insured’s share of such excess loss(es), but

(d) knowledge possessed or discovery made by any partner, officer, or

in no event for more than the Limit of Liability applicable hereunder.

supervisory Employee of any Insured shall for the purpose of Section 4

and Section 13 of this bond constitute knowledge or discovery by all

For the purpose of determining the Insured’s share of excess

the Insured, and

loss(es) it shall be deemed that the Insured has an interest in any

certificate representing any security included within such systems

(e) if the first named Insured ceases for any reason to be covered

equivalent to the interest the Insured then has in all certificates

under this bond, then the Insured next named shall thereafter be

representing the same security included within such systems and

considered as the first named Insured for the purposes of this bond.

that such Corporation shall use their best judgment in apportioning

the amount(s) recoverable or recovered under any bond or policy of

SECTION 17. NOTICE AND CHANGE OF CONTROL

insurance indemnifying such Corporations against such loss(es) in

connection with the central handling of securities within such

Upon the Insured’s obtaining knowledge of a transfer of its outstanding

systems among all of those having an interest as recorded by

voting securities which results in a change in control (as set forth in

appropriate entries in the books and records of such Corporations

Section 2(a)(9) of the Investment Company Act of 1940) of the Insured,

in Property involved in such loss(es) on the basis that each such

the Insured shall within thirty (30) days of such knowledge give written

interest shall share in the amount(s) so recoverable or recovered in

notice to the Underwriter setting forth:

the ratio that the value of each such interest bears to the total value

of all such interests and that the Insured’s share of such excess

(a) the names of the transferors and transferees (or the names of the

loss(es) shall be the amount of the Insured’s interest in such

beneficial owners if the voting securities are requested in another

Property in excess of the amount(s) so apportioned to the Insured

name), and

by such Corporations.

(b) the total number of voting securities owned by the transferors and

transferees (or the beneficial owners), both immediately before and

This bond does not afford coverage in favor of such Corporations or

after the transfer, and

Exchanges or any nominee in whose name is registered any

security included within the systems for the central handling of

As used in this section, control means the power to exercise a

securities established and maintained by such Corporations, and

controlling influence over the management or policies of the Insured.

upon payment to the Insured by the Underwriter on account of any

loss(es) within the systems, an assignment of such of the Insured’s

Failure to give the required notice shall result in termination of coverage

rights and causes of action as it may have against such

of this bond, effective upon the date of stock transfer for any loss in

Corporations or Exchanges shall to the extent of such payment, be

which any transferee is concerned or implicated.

given by the Insured to the Underwriter, and the Insured shall

Such notice is not required to be given in the case of an Insured which

execute all papers necessary to secure to the Underwriter the rights

is an Investment Company.

provided for herein.

SECTION 18. CHANGE OR MODIFICATION

SECTION 16. ADDITIONAL COMPANIES INCLUDED AS INSURED

This bond or any instrument amending or effecting same may not be

If more than one corporation, co-partnership or person or any

changed or modified orally. No changes in or modifications thereof

combination of them be included as the Insured herein:

shall be effective unless made by written endorsement issued to form

a part hereof over the signature of the Underwriter’s Authorized

(a) the total liability of the Underwriter hereunder for loss or losses

Representative. When a bond covers only one Investment Company

sustained by any one or more or all of them shall not exceed the

no change or modification which would adversely affect the rights of the

limit for which the Underwriter would be liable hereunder if all such

Investment Company shall be effective prior to 60 days after written

loss were sustained by any one of them.

notification has been furnished to the Securities and Exchange

Commission, Washington, D.C. by the Insured or by the Underwriter.

(b) the one first named herein shall be deemed authorized to make,

If more than one Investment Company is named as the Insured herein,

adjust and receive and enforce payment of all claims hereunder and

the Underwriter shall give written notice to each Investment Company

shall be deemed to be the agent of the others for such purposes and

and to the Securities and Exchange Commission, Washington, D.C. not

for the giving and receiving of any notice required or permitted to be

less than 60 days prior to the effective date of any change or

given by the terms hereof, provided that the Underwriter shall furnish

modification which would adversely affect the rights of such Investment

each named Investment Company with a copy of the bond and with

Company.

any amendment thereto, together with a copy of each formal filing

of the settlement of each such claim prior to the execution of such

IN WITNESS WHEREOF, the Underwriter has caused this bond to be

settlement,

executed on the Declaration Page.

Page 10 of 10

GREAT AMERICAN		Administrative Offices	INSURED COPY
Insurance Group		301 E 4th Street	547-97-26-09
		Cincinnati, Ohio 45202-4201 Tel: 1-513-369-5000
		Cincinnati, Ohio 45202-4201 Tel: 1-513-369-5000




		RIDER NO. 1


		JOINT INSURED LIST

To be attached to and form part of Bond No. 547-97-26-09

In favor of Homestead Funds, Inc.

It is agreed that:



1. At the request of the Insured, the Underwriter adds to the list of Insured under the
attached bond the following:



	Daily Income Fund
	Short-Term Government Securities Fund
	Short-Term Bond Fund
	Stock Index Fund
	Value Fund
	Small-Company Stock Fund
	International Value Fund
	Growth Fund


2. This rider shall become effective as of 12:01 a.m. on 12/15/2012 standard time.

GREAT AMERICAN

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Insurance Group

301 E 4th Street

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RIDER NO. 2

INSURING AGREEMENT L

To be attached to and form part of Investment Company Bond

Bond No. 547-97-26-09

In favor of Homestead Funds, Inc.

It is agreed that:

1. The attached bond is amended by adding an additional Insuring Agreement as follows:

COMPUTER SYSTEMS

Loss resulting directly from a fraudulent

(1) entry of data into, or

(2) change of data elements or programs within

a Computer System; provided that fraudulent entry or change causes

(a)

Property to be transferred, paid or delivered,

(b)

an account of the Insured, or of its customer, to be added, deleted, debited or credited, or

(c)

an unauthorized account or a fictitious account to be debited or credited;

(3) voice instruction or advices having been transmitted to the Insured or its agent(s) by

telephone;

and provided further, the fraudulent entry or change is made or caused by an individual acting

with the manifest intent to:

(i)

cause the Insured or its agents(s) to sustain a loss, and

(ii)

obtain financial benefit for that individual or for other persons intended by

that individual to receive financial benefit,

(iii)

and further provided such voice instructions or advices:

(a)

were made by a person who purported to represent an individual authorized

to make such voice instructions or advices; and

(b)

were electronically recorded by the Insured or its agent(s).

(4) It shall be a condition to recovery under the Computer Systems Rider that the Insured or its

agents(s) shall to the best of their ability electronically record all voice instructions or advices

received over telephone. The Insured or its agent(s) warrant that they shall make their best efforts

to maintain the electronic recording system on a continuous basis. Nothing, however,

in this Rider shall bar the Insured from recovery where no recording is available

because of mechanical failure of the device used in making such recording, or because of failure

of the media used to record a conversation from any cause, or error omission of any Employee(s) or

agent(s) of the Insured.

Page 1 of 3

GREAT AMERICAN

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Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

SCHEDULE OF SYSTEMS

Any System Utilized by the Insured

2. As used in this Rider, Computer System means:

(a)

computers with related peripheral components, including storage components, wherever located,

(b)

systems and applications software,

(c)

terminal devices,

(d)

related communication networks or customer communications system, and

(e)

related Electronic Funds Transfer Systems,

by which data are electronically collected, transmitted, processed, stored, and retrieved.

3. In addition to the exclusion in the attached bond, the following exclusions are applicable to this Insuring Agreement:

(a)

loss resulting directly or indirectly from the theft of confidential information, material or

data: and

(b)

loss resulting directly or indirectly from entries or changes made by an

individual authorized to have access to a Computer System who acts in good faith on

instructions, unless such instructions are given to that individual by a software contractor (or

by a partner, officer or employee thereof) authorized by the Insured to design, develop,

prepare, supply service, write or implement programs for the Insured’s Computer System.

4. The following portions of the attached bond are not applicable to this Rider:

(a)

the initial paragraph of the bond preceding the Insuring Agreements which reads “…at

any time but discovered during the Bond Period.”

(b)

Section 9-NON-REDUCTION AND NON-ACCUMULATON OF LIABILITY AND

TOTAL LIABILITY

(c)

Section 10-LIMIT OF LIABILITY

5. The coverage afforded by this rider applies only to loss discovered by the Insured during the period this Rider is in force.

6. All loss or series of losses involving the fraudulent activity of one individual, or involving

fraudulent activity in which one individual is implicated, whether or not that individual is

specifically identified, shall be treated as one loss. A series of losses involving unidentified

individuals but arising from the same method of operation may be deemed by the Underwriter to

involve the same individual and in that event shall be treated as one loss.

7. The Limit of Liability for the coverage provided by this Rider shall be $2,500,000.

8. The Underwriter shall be liable hereunder for the amount by which one loss shall be in excess

of $25,000 (herein called the Deductible Amount) but not in excess of the Limit of Liability stated above.

Page 2 of 3

GREAT AMERICAN

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9. If any loss is covered under the Insuring Agreement and any other Insuring Agreement or

Coverage, the maximum amount payable for such loss shall not exceed the largest amount

available under any one Insuring Agreement or Coverage.

10. Coverage under this Rider shall terminate upon termination or cancellation of the bond to

which the Rider is attached. Coverage under this rider may also be terminated or cancelled

without canceling the bond as as an entirety:

(a)

90 days after receipt by the Insured of written notice from the Underwriter of its desire to

terminate or cancel coverage under this Rider, or

(b)

immediately upon receipt by the Underwriter of a written request from the Insured to

terminate or cancel coverage under this Rider.

The Underwriter shall refund to the Insured the unearned premium for this coverage under this

Rider. The refund shall be computed at short rates if this Rider is terminated or cancelled or

reduces by notice from, or at the insistence of the Insured.

11. Section 4-LOSS –NOTICE-PROOF-LEGAL PROCEEDING of the Conditions and

Limitations of this bond is amended by adding the following sentence:

“Proof of Loss resulting from Voice Instruction or advices covered under this bond shall include

Electronic Recording of such Voice Instructions of advices.”

12. Notwithstanding the foregoing, however, coverage afforded by this Rider is not designed to

provide protection against loss covered under a separate Electronic and Computer Crime Policy by

whatever title assigned or by whatever Underwriter written. Any loss which is covered under such

separate Policy is excluded from coverage under this bond; and the Insured agrees to make claim

for such loss under its separate Policy.

13. This rider shall become effective as of 12:01 a.m. on 12/15/2012 standard time.

Page 3 of 3

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

RIDER NO. 3

INSURING AGREEMENT M

To be attached to and form part of Bond No. 547-97-26-09

In favor of Homestead Funds, Inc.

It is agreed that:

The attached bond is amended by adding an additional Insuring Agreement as follows:

AUTOMATED PHONE SYSTEMS

1. Loss caused by an Automated Phone System (“APS”) Transaction, where the request for such APS

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

APS Designated Procedures with respect to APS Transaction. The unintentional isolated failure of

such entity to maintain and follow a particular APS Designated Procedure in a particular APS

Designated Procedure in a particular instance shall not preclude coverage under this Insuring

Agreement, subject to the exclusions herein and in the Bond.

1. Definitions. The following terms used in this Insuring Agreement shall have the following meanings:

“APS Transaction” means any APS Redemption, APS Exchange or APS Election.

“APS Redemption” means any redemption of shares issued by an Investment Company

which is requested over the telephone by means of information transmitted by an

individual caller through use of a telephone keypad.

“APS Election” mean any election concerning dividend options available to Fund

shareholders which is made over the telephone by means of information transmitted by

an individual caller through use of a telephone keypad.

“APS 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 over

the telephone by means of information transmitted by an individual

caller through use of a telephone keypad.

“APS Designated Procedures” means all of the following procedures:

(1)

Election in Application: No APS Redemption shall be executed unless the shareholder to

whose account such an APS Redemption relates has previously elected by Official

Designation to permit such APS Redemption.

(2)

Logging: All APS Transaction requests shall be logged or otherwise recorded, so as to

preserve all of the information transmitted by an individual caller through use of telephone

keypad in the course of such a request, and the records shall be retained for at least six

months.

Page 1 of 3

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

(a)

Information contained in the records shall be capable of being retrieved through the

following methods:

audio tape and or transactions stored on computer disks

(b)

Information contained in the records 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 loss than 85 percent.

(3)

Identity Test: The identity of the caller in any request for an APS Transaction shall be

tested before executing the APS Transaction by requiring the entry by the caller of a

confidential personal identification number (“PIN”)

(a)

Limited Attempts to Enter PIN: If the caller fails to enter a correct PIN within three

attempts, the caller must not be allowed additional attempts during the same

(telephone call/twenty-four hour day) to enter the PIN. The caller may either be

instructed to redial a customer service representative or may be immediately

connected to such a representative.

(4)

Written Confirmation: A written confirmation of any APS Transaction shall be mailed to

the shareholder(s) to whose account such an APS Transaction relates, at the original

record address, by the end of the Insured’s next regular processing cycle,

but in no event later than five business days following such APS Transaction.

(5)

Access to APS Equipment: Access to the equipment which permits the entity receiving

the APS Transaction request to process and effect the transaction shall be limited in the

following manner:

(Fill in on complex-by-complex basis)

2. Exclusions: It is further understood and agreed that this exclusion shall not cover:

(a)

Any loss covered under Insuring Agreement (A). “Fidelity”, of this Bond;

(1)

The redemption of shares, where the proceeds of such redemption are made payable to

other-than

(i)

the shareholder of record, or

(ii)

a person officially Designated to receive redemption proceeds, or

(iii)

a bank account officially Designated to receive redemption proceeds or

Page 2 of 3

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

(2)

The redemption of shares, where the proceeds of such redemption are paid by check

mailed to any address, unless such address has either been

(i)

designated by voice over the telephone or in writing without a signature guarantee, in

either case at least thirty (30) days prior to such redemption, or

(ii)

officially Designated, or

(iii)

verified by any other procedures which may be stated below in this Rider, or

(3)

The redemption of shares, where the proceeds of such redemption are paid by wire

transfer to other than the shareholder’s officially Designated bank account, or

(4)

The Intentional failure to adhere to one or more APS Designated Procedures.

2. Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, limitations,

conditions, or provisions of the attached bond other than above stated.

3. This rider shall become effective as of 12:01 a.m. on 12/15/2012 standard time.

Page 3 of 3

GREAT AMERICAN

Administrative Offices

INSURED COPY

Insurance Group

301 E 4th Street

547-97-26-09

Cincinnati, Ohio 45202-4201

Tel: 1-513-369-5000

RIDER NO. 4

To be attached to and form part of Bond No. 547-97-26-09

In favor of Homestead Funds, Inc.

It is agreed that:

1. The definition of “Employee” is amended to include employees of National Rural Electric

Cooperative Association while performing duties for or on behalf of those named as Insureds.

2. This rider shall become effective as of 12:01 a.m. on 12/15/2012 standard time.

CERTIFICATE OF SECRETARY

HOMESTEAD FUNDS, INC.

I, Kelly Bowers Whetstone, do hereby certify that I am the duly elected, qualified and acting Secretary of Homestead Funds, Inc. (the "Corporation"), and I do hereby further certify that the resolutions set forth below were duly unanimously adopted by the Corporation's Board of Directors, including those Directors who are not "interested persons" as defined in the Investment Company Act of 1940, as amended, at a meeting of the Board of Directors of the Corporation held on December 12, 2012, at which a quorum was present and acting throughout, and that said resolutions have not been revoked or amended and are now in full force and effect.

	WHEREAS , Rule 17g-1 under the Investment Company Act of 1940 (the “1940 Act”) requires that the Corporation maintain a bond issued by a reputable fidelity insurance company in such amount as set forth in paragraph (d) of that rule;

	WHEREAS , Rule 17g-1(d) requires that a majority of the directors who are not “interested persons” within the meaning of Section 2(a)(19) of the 1940 Act approve the reasonableness of the form and amount of the bond as often as their fiduciary duties require, but not less frequently than once every twelve months, with due consideration to all relevant factors including, but not limited to, the value of the aggregate assets of the Corporation to which any covered person may have access, the type and terms of the arrangements made for the custody and safekeeping of such assets, and the nature of the securities in the Corporation’s portfolio;

	WHEREAS , pursuant to Rule 17g-1(c), the Corporation’s fidelity bond must provide that it may not be cancelled, terminated or modified except after written notice has been given by the acting party to the affected party and to the Securities and Exchange Commission not less than 60 days prior to the effective date of cancellation, termination, or modification; and

	WHEREAS , the Board of Directors, on behalf of the Corporation and each of its series, has considered the terms and costs of the fidelity bond currently provided to the Corporation by the Great American Insurance Company for the twelve-month period ending December 15, 2013;

	NOW, THEREFORE, BE IT RESOLVED , that the Board of Directors, including each of its disinterested members, hereby determines, based on the considerations set forth above and such other matters as the Board considers relevant, that the fidelity bond issued to the Corporation by the Great American Insurance Company in the amount of $2,500,000 substantially in the form presented at this meeting, is in reasonable form and constitutes a reasonable amount of coverage to protect the Corporation against larceny and embezzlement by any of its officers and employees who may singly, or jointly with others, have access to securities or funds of the Corporation either directly or indirectly or through authority to draw upon such funds or to direct the disposition of such securities; and be it further

	RESOLVED , that the Board of Directors authorizes the Corporation’s officers to make the filings and give notices required by Rule 17g-1(g) under the 1940 Act.

IN WITNESS HEREOF I have duly set my hand this 22 nd day of February, 2013.