40-17G/A
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~HA; INVESTMENT COMPANY FIDELITY Declarations
BOND
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CUSTOMER NUMBER DATE ISSUED
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314722 04/03/2008
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POLICY NUMBER COVERAGE IS PROVIDED BY PRODUCER NO.
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287018953-08 Columbia Casualty Company 712637
(herein called `Underwriter')
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NAMED INSURED AND ADDRESS PRODUCER
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Item 1. MACC Private Equities Inc. AON Financial Services Group
(herein called `Insured') 4100 E. Mississippi Avenue Suite 1300
101 Second Street SE, Suite 800 Denver, CO 80246
Cedar Rapids, IA 52401
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Item 2. Policy Period: From 12:01 a.m. on 02/15/2008 to 12:01 a.m. on 02/15/2009 standard time.
Item 3. Limit of Liability: $ 400,000 per Loss.
Provided, however that if specific limits, either greater or lesser,
are inserted opposite any specified INSURING CLAUSE, such specific
limits shall be applicable to such INSURING CLAUSES in lieu of, and
not in addition to, such bond limit. If "NOT COVERED" is inserted
below opposite any specified INSURING CLAUSE, such INSURING CLAUSE and
any other reference to such INSURING CLAUSE shall be deemed to be
deleted from this bond.
LIMIT OF
INSURING CLAUSE LIABILITY DEDUCTIBLE
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1. Employee $400,000 $10,000**
2. Premises $400,000 $10,000
3. Transit $400,000 $10,000
4. Forgery or Alteration $400,000 $10,000
5. Extended Forgery $400,000 $10,000
6. Counterfeit Currency $400,000 $10,000
7. Threats to Persons Not Covered Not Covered
8. Computer Systems $400,000 $10,000
9. Voice Initiated Transaction $400,000 $10,000
10. Uncollectible Items of Deposit $100,000 $10,000
11. Audit Expense $50,000 $5,000
** There shall be no deductible applicable to any loss under INSURING CLAUSE 1.
sustained by any Investment Company
Item 4. The liability of the Underwriter is also subject to the terms of the
following endorsements executed simultaneously herewith: SR5109a,
PRO-4144-A, GSL7207XX
Item 5. Notice of claim should be sent to the Underwriter at: CNA Pro
Fidelity-Bonding
40 Wall Street
New York, New York 10005
IN WITNESS WHEREOF, the Underwriter has caused this bond to be signed by its
Chairman and Secretary, at Chicago, Illinois, but the same shall not be binding
upon the Underwriter unless countersigned by a duly authorized representative or
attorney-in-fact of the Underwriter
Chairman of the Board Secretary
Authorized Representative_______________________________________
CNA
The UNDERWRITER, in consideration of the required premium, and in reliance on
the APPLICATION and all other statements made and information furnished to the
UNDERWRITER by the INSURED, and subject to the DECLARATIONS made a part of this
bond and to all other terms and conditions of this bond, agrees to pay the
INSURED for:
INSURING CLAUSES
1. EMPLOYEE COVERAGE
Loss resulting directly from Larceny or Embezzlement committed by any
Employee, alone or in collusion with others.
2. PREMISES COVERAGE
A. PROPERTY
Loss of Property resulting directly from robbery, burglary, common-law or
statutory larceny, hold-up, misplacement, mysterious unexplainable
disappearance, damage, destruction or abstraction or removal from the
possession, custody or control of the INSURED, while such Property is
lodged or deposited within any offices or premises located anywhere.
B. OFFICES AND EQUIPMENT
Loss of, or damage to furnishings, fixtures, stationery, supplies,
equipment, safes or vaults (but excluding all electronic data processing
equipment) within any of the INSURED'S offices resulting directly from
robbery, burglary, common law or statutory larceny or hold-up of such
offices, or attempt thereat, or by vandalism or malicious mischief, or loss
through damage to any office resulting directly from robbery, burglary,
common law or statutory larceny or hold-up of such office, or attempts
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, equipment, safes or
vaults or is legally liable for such loss or damage always excepting,
however, a loss or damage through fire.
3. TRANSIT COVERAGE
Loss of Property resulting directly from robbery, common law or statutory
larceny, misplacement, mysterious unexplainable disappearance, damage to or
destruction of, while the Property is in transit anywhere:
a. in an armored motor vehicle, including loading and unloading thereof,
b. in the custody of a natural person acting as a messenger of the
INSURED, or
c. in the custody of a Transportation Company and being transported in a
conveyance other than an armored motor vehicle provided, however, that
covered Property transported in such manner is limited to the
following:
I. written records,
II. securities issued in registered form which are not endorsed or
are restrictively endorsed, or
III. negotiable instruments not payable to bearer, which are not
endorsed or are restrictively endorsed.
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Coverage under this INSURING CLAUSE begins immediately on the receipt of
such Property by the natural person acting as a messenger or Transportation
Company and ends immediately on delivery to the premises of the addressee
or to any representative of the addressee located anywhere.
4. FORGERY OR ALTERATION COVERAGE
Loss resulting directly from:
a. Forgery or fraudulent material alteration of, on or in any bills of
exchange, checks, drafts, acceptances, certificates of deposits,
promissory notes, due bills, money orders, orders upon public
treasuries, letters of credit, other written promises, orders or
directions to pay sums certain in money, or receipts for the
withdrawal of Property, or
b. transferring, paying or delivering any funds or other Property, or
establishing any credit or giving any value in reliance on any written
instructions, advices, or applications directed to the INSURED
authorizing or acknowledging the transfer, payment, delivery or
receipt of funds or other Property, which instructions, advices or
applications purport to bear the handwritten signature of any customer
of the INSURED, or shareholder or subscriber to shares of an
Investment Company, or of any banking institution, stockbroker or
Employee but which instructions or applications either bear a Forgery
or a fraudulent material alteration without the knowledge and consent
of such customer, shareholder, subscriber to shares, banking
institution, stockbroker, or Employee;
excluding, however, under this INSURING CLAUSE any loss covered under
INSURING CLAUSE 5. of this bond, whether or not coverage for INSURING
CLAUSE 5. is provided for in the DECLARATIONS of this bond.
A mechanically reproduced facsimile signature is treated the same as a
handwritten signature.
5. EXTENDED FORGERY COVERAGE
Loss resulting directly from the INSURED having in good faith, and in the
ordinary course of business, whether for its own account or for the account
of others, in any capacity:
a. acquired, accepted or received, sold or delivered, given value,
extended credit, or assumed liability in reliance upon any original
Securities, documents or other written instruments which prove: I. to
bear a Forgery or fraudulent material alteration, II. to have been
lost or stolen, or III. to be Counterfeit, or
b. guaranteed in writing or witnessed any signatures upon any transfers,
assignments, bills of sale, powers of attorney, guarantees,
endorsements or other obligations upon or in connection with any
Securities, documents or other written instruments which pass or
purport to pass title to them.
Actual physical possession, and continued actual physical possession,
of such Securities, documents or other written instruments by an
Employee, Custodian, or a Federal or State chartered deposit
institution is a condition precedent to the INSURED having relied on
such items. Release or return of such items is an acknowledgment by
the INSURED that it no longer relies on such items.
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A mechanically reproduced facsimile signature is treated the same as a
handwritten signature.
6. COUNTERFEIT CURRENCY COVERAGE
Loss resulting directly from the receipt by the INSURED, in good faith, of
any Counterfeit money orders, currencies or coin of any country.
7. THREATS TO PERSONS COVERAGE
Loss resulting directly from surrender of Property away from an office of
the INSURED as a result of a threat communicated to the INSURED to do
bodily harm to an Employee as defined in paragraphs (1), (2) and (5) of the
definition, a Relative or invitee of such Employee, or a resident of the
household of such Employee, who is, or allegedly is, being held captive
provided, however, that prior to the surrender of such Property:
a. the Employee who receives the threat has made a reasonable effort to
notify an officer of the INSURED who is not involved in such threat,
and
b. the INSURED has made a reasonable effort to notify the Federal Bureau
of Investigation and local law enforcement authorities concerning such
threat.
It is agreed that for purposes of the INSURING CLAUSE, any Employee of the
INSURED, as set forth in the preceding paragraph, shall be deemed to be an
INSURED hereunder, but only with respect to the surrender of money,
securities and other tangible personal property in which such Employee has
a legal or equitable interest.
8. COMPUTER SYSTEMS COVERAGE
Loss resulting directly from fraudulent entry of data into or change of
data elements or programs within the INSURED'S proprietary Computer System
or a Computer System operated or used by the INSURED and declared in the
APPLICATION, provided that the 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.
9. VOICE INITIATED TRANSACTION COVERAGE
Loss resulting directly from a Voice Initiated Transaction directed to the
INSURED authorizing the transfer of dividends or redemption proceeds of
Investment Company shares from a Customer's account, provided such Voice
Initiated Transaction was:
a. received at the INSURED'S offices by those Employees of the INSURED
specifically authorized to receive the Voice Initiated Transaction,
b. made by a person purporting to be a Customer, and
c. made by said person for the purpose of causing the INSURED or Customer
to sustain a loss or making an improper personal financial gain for
such person or any other person.
In order for coverage to apply under this INSURING CLAUSE, all Voice
Initiated Transactions must be received and processed in accordance with
the Designated Procedures outlined in the APPLICATION furnished to the
UNDERWRITER.
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10. UNCOLLECTIBLE ITEMS OF DEPOSIT COVERAGE
Loss resulting directly from the INSURED having credited an account of a
customer, shareholder or subscriber on the faith of any Items of Deposit
which prove to be uncollectible, provided that the crediting of said
account causes:
a. redemption's or withdrawals to be permitted,
b. shares to be issued, or
c. dividends to be paid, from an account of an Investment Company.
In order for coverage to apply under this INSURING CLAUSE, the INSURED must
hold Items of Deposit for the minimum number of days stated in the
APPLICATION before permitting any redemption's or withdrawals, issuing any
shares or paying any dividends with respect to such Items of Deposit.
Items of Deposit shall not be deemed uncollectible until the INSURED'S
standard collection procedures have failed.
11. AUDIT EXPENSE COVERAGE
Reasonable expense incurred by the INSURED for that part of an audit or
examination required by any governmental regulatory authority or
self-regulatory organization and actually conducted by such authority,
organization or their appointee by reason of the discovery of loss
sustained by the INSURED and covered by this bond.
CONDITIONS AND LIMITATIONS
1. EXCLUSIONS
A. GENERAL EXCLUSIONS APPLICABLE TO ALL INSURING CLAUSES This bond does not
directly or indirectly cover:
(1) loss not reported to the UNDERWRITER in writing within thirty (30)
days after termination of this bond as an entirety;
(2) loss due to riot or civil commotion outside the United States of
America and Canada, or any loss due to military, naval or usurped
power, war or insurrection. However, this exclusion shall not apply to
loss which occurs in transit in the circumstances recited in INSURING
CLAUSE3., provided that when such transit was initiated there was no
knowledge on the part of any person acting for the INSURED of such
riot, civil commotion, military, naval or usurped power, war or
insurrection;
(3) loss resulting from dishonest acts by any member of the Board of
Directors or Board of Trustees of the INSURED who is not an Employee,
acting alone or in collusion with others;
(4) loss, or that part of any loss, resulting solely from any violation by
the INSURED or by any Employee of any law, or rule, or regulation
pursuant to any law regulating:
a. the issuance, purchase or sale of securities,
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b. transactions on security or commodity exchanges or the
over-the-counter markets,
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c. investment companies, or
d. investment advisors;
(5) loss of potential income including, but not limited to, interest and
dividends not realized by the INSURED or by any customer of the
INSURED;
(6) loss resulting from indirect or consequential loss of any nature;
(7) damages of any type for which the INSURED is legally liable, except
compensatory damages (but not multiples thereof) arising from a loss
covered under this bond;
(8) loss resulting from the effects of nuclear fission or fusion or
radioactivity;
(9) loss resulting from the theft of confidential information, material or
data;
(10)costs, fees and expenses incurred by the INSURED in establishing the
existence or amount of loss under this bond, provided however, this
EXCLUSION shall not apply to INSURING CLAUSE 11.;
(11)loss resulting from voice requests or instructions received over the
telephone, provided however, this EXCLUSION shall not apply to
INSURING CLAUSE 7. or 9.
B. SPECIFIC EXCLUSIONS APPLICABLE TO ALL INSURING CLAUSES EXCEPT INSURING
CLAUSE 1.
This bond does not directly or indirectly cover:
(1) loss caused by an Employee, provided, however, this EXCLUSION shall not
apply to loss covered under INSURING CLAUSE 2. or 3. which results
directly from misplacement, mysterious unexplainable disappearance, or
damage to or destruction of Property;
(2) loss through the surrender of Property away from an office of the
INSURED as a result of a threat:
a. to do bodily harm to any person, except loss of Property in
transit in the custody of any person acting as messenger of the
INSURED, provided that when such transit was initiated there was
no knowledge by the INSURED of any such threat, and provided
further that this EXCLUSION shall not apply to INSURING CLAUSE
7., or
b. to do damage to the premises or property of the INSURED;
(3) loss involving Items of Deposit which are not finally paid for any
reason provided however, that this EXCLUSION shall not apply to
INSURING CLAUSE 10.;
(4) loss resulting from payments made or withdrawals from any account
involving erroneous credits to such account;
(5) loss of Property while in the mail:
(6) loss of Property while in the custody of a Transportation Company,
provided however, that this EXCLUSION shall not apply to INSURING
CLAUSE 3.;
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(7) loss resulting from the failure for any reason of a financial or
depository institution, its receiver or other liquidator to pay or
deliver funds or other Property to the INSURED provided further that
this EXCLUSION shall not apply to loss of Property resulting directly
from robbery, burglary, hold-up,
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misplacement, mysterious unexplainable disappearance, damage,
destruction or abstraction from the possession, custody or control of
the INSURED.
C. EXCLUSIONS APPLICABLE TO ALL INSURING CLAUSES EXCEPT INSURING CLAUSES
1., 4., 5. This bond does not directly or indirectly cover:
(1) loss resulting from forgery or any alteration;
(2) loss resulting from the complete or partial non-payment of or default
on any loan whether such loan was procured in good faith or through
trick, artifice, fraud or false pretenses;
(3) loss involving a counterfeit provided, however, this EXCLUSION shall
not apply to INSURING CLAUSE 5. or 6.
2. DISCOVERY
This bond applies only to loss first discovered by any partner, director,
trustee, officer or supervisory employee of the INSURED during the BOND
PERIOD. Discovery occurs at the earlier of such individuals being aware of;
a. facts which may subsequently result in a loss of a type covered by
this bond, or
b. an actual or potential claim in which it is alleged that the INSURED
is liable to a third party, regardless of when the act or acts causing
or contributing to such loss occurred, even though the amount of loss
does not exceed the applicable DEDUCTIBLE AMOUNT or the exact amount
or details of loss may not then be known.
3. NOTICE TO UNDERWRITER - PROOF - LEGAL PROCEEDINGS AGAINST UNDERWRITER
a. At the earliest practicable moment, not to exceed thirty (30) days
after discovery of loss, the INSURED shall give the UNDERWRITER notice
thereof.
b. Within six (6) months after such discovery, the INSURED shall furnish
to the UNDERWRITER proof of loss, duly sworn to, with full
particulars.
c. Securities listed in a proof of loss shall be identified by
certificate or bond numbers, if issued with them.
d. Legal proceedings for the recovery of any loss under this bond shall
not be brought prior to the expiration of sixty (60) days after the
proof of loss is filed with the UNDERWRITER or after the expiration of
twenty-four (24) months from the discovery of such loss.
e. This bond affords coverage only in favor of the INSURED. No claim,
suit, action or legal proceedings shall be brought under this bond by
anyone other than the INSURED.
4. LIMIT OF LIABILITY/NON - REDUCTION AND NON-ACCUMULATION OF LIABILITY
At all times prior to termination of this bond, this bond shall continue in
force for the limit stated in the applicable sections of ITEM 3. of the
DECLARATIONS, notwithstanding any previous loss for which the UNDERWRITER
may have paid or be liable to pay under this bond provided, however, that
the liability of
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the UNDERWRITER under this bond with respect to all loss resulting from:
a. any one act of burglary, robbery or hold-up, or attempt thereat, in
which no Employee is concerned or implicated, or
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b. any one unintentional or negligent act on the part of any one person
resulting in damage to or destruction or misplacement of Property, or
c. all acts, other than those specified in a. above, of any one person,
or
d. any one casualty or event other than those specified in a., b., or c.
above,
shall be deemed to be one loss and shall be limited to the applicable LIMIT
OF LIABILITY stated in ITEM 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.
All acts, as specified in c. above, of any one person which
I. directly or indirectly aid in any way wrongful acts of any other
person or persons, or
II. permit the continuation of wrongful acts of any other person or
persons
whether such acts are committed with or without the knowledge of the
wrongful acts of the person so aided, and whether such acts are committed
with or without the intent to aid such other person, shall be deemed to be
one loss with the wrongful acts of all persons so aided.
5. DEDUCTIBLE
The UNDERWRITER shall not be liable under any INSURING CLAUSES of this bond
on account of loss unless the amount of such loss, after deducting the net
amount of all reimbursement and/or recovery obtained or made by the
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 4. of the DECLARATIONS, 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.
There shall be no deductible applicable to any loss under INSURING CLAUSE
1. sustained by any Investment Company.
6. COURT COSTS AND ATTORNEYS' FEES
The UNDERWRITER will indemnify the INSURED for 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 claim, suit or legal proceeding with respect to which the
INSURED would be entitled to recovery under this bond. However, with
respect to INSURING CLAUSE 1. this Section shall only apply in the event
that:
a. an Employee admits to being guilty of Larceny or Embezzlement,
b. an Employee is adjudicated to be guilty of Larceny or Embezzlement, or
c. in the absence of a. or b. above, an arbitration panel agrees, after a
review of an agreed statement of facts between the UNDERWRITER and the
INSURED, that an Employee would be found guilty of Larceny or
Embezzlement if such Employee were prosecuted.
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The INSURED shall promptly give notice to the UNDERWRITER of any such suit
or legal proceeding and at the request of the UNDERWRITER shall furnish
copies of all pleadings and pertinent papers to the UNDERWRITER. The
UNDERWRITER may, at its sole option, elect to conduct the defense of all or
part of such legal proceeding. The defense by the UNDERWRITER shall be in
the name of the INSURED through attorneys selected by the UNDERWRITER. The
INSURED shall provide all reasonable information and assistance as required
by the UNDERWRITER for such defense.
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If the amount demanded in any such suit or legal proceeding is greater than
the LIMIT OF LIABILITY stated in ITEM 3. of the DECLARATIONS for the
applicable INSURING CLAUSE, or if a DEDUCTIBLE AMOUNT is applicable, or
both, the UNDERWRITER'S liability for court costs and attorneys' fees
incurred in defending all or part of such legal proceeding is limited to
the proportion of such court costs and attorneys' fees incurred that the
LIMIT OF LIABILITY stated in ITEM 3. of the DECLARATIONS for the applicable
INSURING CLAUSE bears to the total of the amount demanded in such suit or
legal proceeding.
Amounts paid by the UNDERWRITER for court costs and attorneys' fees shall
be in addition to the LIMIT OF LIABILITY stated in ITEM 3. of the
DECLARATIONS.
If the UNDERWRITER declines to defend the INSURED, no settlement without
the prior written consent of the UNDERWRITER nor judgment against the
INSURED shall determine the existence, extent or amount of coverage under
this bond, and the UNDERWRITER shall not be liable for any costs, fees and
expenses incurred by the INSURED.
7. VALUATION OF PROPERTY
The value of any loss of Property other than books of account or other
records used by the INSURED in the conduct of its business, for which a
claim is made shall be determined by the average market value of such
Property on the business day immediately preceding discovery of such loss
provided, however, that the value of any Property replaced by the INSURED
with the consent of the UNDERWRITER and prior to the settlement of any
claim for such Property shall be actual market value at the time of
replacement.
In the case of a loss of interim certificates, warrants, rights or other
securities, the production of which is necessary to the exercise of
subscription, conversion, redemption or deposit privileges, the value of
them shall be the market value of such privileges immediately preceding
their expiration if said loss is not discovered until after their
expiration. If no market price is quoted for such Property or for such
privileges, the value shall be fixed by agreement between the parties.
The value of any loss of Property consisting of books of account or other
records used by the INSURED in the conduct of its business shall be the
amount paid by the INSURED for blank books, blank pages, or other materials
which replace the lost books of account or other records, plus the cost of
labor paid by the INSURED for the actual transcription or copying of data
to reproduce such books of account or other records.
8. VALUATION OF PREMISES AND FURNISHINGS
In the case of loss or damage to any office of the INSURED or to the
furnishings, fixtures, stationery, supplies, equipment, safes or vaults,
the UNDERWRITER shall not be liable for more than the actual cash value
thereof, or for more than the actual
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cost of 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 the actual cash value or the
cost of replacement or repair, it shall be determined by arbitration.
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9. SECURITIES SETTLEMENT
In the event of a loss of securities covered under this bond, the
UNDERWRITER may, at its sole discretion, purchase replacement securities,
tender the value of the securities in money, or issue its indemnity to
effect replacement securities.
The indemnity required from the INSURED under the terms of this Section
against all loss, cost or expense arising from the replacement of
securities by the UNDERWRITER'S indemnity shall be:
a. for securities having a value less than or equal to the applicable
DEDUCTIBLE AMOUNT one hundred (100% percent);
b. for securities having a value in excess of the DEDUCTIBLE AMOUNT but
within the applicable LIMIT OF LIABILITY- the percentage that the
DEDUCTIBLE AMOUNT bears to the value of the securities;
c. for securities having a value greater than the applicable LIMIT OF
LIABILITY the percentage that the DEDUCTIBLE AMOUNT and portion in
excess of the applicable LIMIT OF LIABILITY bears to the value of the
securities.
The value referred to in a., b., and c. above is the value in accordance
with SECTION 8, VALUATION OF PROPERTY, regardless of the value of such
securities at the time the loss under the UNDERWRITER'S indemnity is
sustained.
The UNDERWRITER is not required to issue its indemnity for any portion of a
loss of securities which is not covered by this bond; however, the
UNDERWRITER may do so as a courtesy to the INSURED and at its sole
discretion.
The INSURED shall pay the proportion of the UNDERWRITER'S premium charge
for the UNDERWRITER'S indemnity as set forth in a., b., and c. above. No
portion of the LIMIT OF LIABILITY shall be used as payment of premium for
any indemnity purchased by the INSURED to obtain replacement securities.
10. SUBROGATION - ASSIGNMENT-RECOVERY
In the event of a payment under this bond, the UNDERWRITER shall be
subrogated to all of the INSURED'S rights of recovery against any person or
entity to the extent of such payment. On request, the INSURED shall deliver
to the UNDERWRITER an assignment of the INSURED'S rights, title and
interest and causes of action against any person or entity to the extent of
such payment.
Recoveries, whether effected by the UNDERWRITER or by the INSURED, shall be
applied net of the expense of such recovery, first to the satisfaction of
the INSURED'S loss which would otherwise have been paid but for the fact
that it is in excess of the applicable LIMIT OF LIABILITY, second, to the
UNDERWRITER in satisfaction of amounts paid in settlement of the INSURED'S
claim and third, to the INSURED in satisfaction of the applicable
DEDUCTIBLE AMOUNT. Recovery from reinsurance and/or indemnity of the
UNDERWRITER shall not be deemed a recovery under this section.
11. COOPERATION OF INSURED
At the UNDERWRITER'S request and at reasonable times and places designated
by the UNDERWRITER the INSURED shall submit to examination by the
UNDERWRITER and subscribe to the same under oath, produce for the
UNDERWRITER'S examination all pertinent records, and cooperate
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with the UNDERWRITER in all matters pertaining to the loss.
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The INSURED shall execute all papers and render assistance to secure to the
UNDERWRITER the rights and causes of action provided for under this bond.
The INSURED shall do nothing after loss to prejudice such rights or causes
of action.
12. OTHER INSURANCE
Coverage under this bond shall apply only as excess over any valid and
collectible insurance, indemnity or suretyship obtained by or on behalf of
the INSURED, a Transportation Company, or another entity on whose premises
the loss occurred or which employed the person causing the loss or engaged
the messenger conveying the Property involved.
13. ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one corporation, or Investment Company, or any combination of
them is included as the INSURED herein:
a. The total liability of the UNDERWRITER under this bond for loss or
losses sustained by any one or more or all of them shall not exceed
the limit for which the UNDERWRITER would be liable under this bond if
all such losses were sustained by any one of them.
b. Only the first named INSURED shall be deemed to be the sole agent of
the others for all purposes under this bond, including but not limited
to the giving or receiving of any notice or proof required to be given
and for the purpose of effecting or accepting any amendments to or
termination of this bond. The UNDERWRITER shall furnish each
Investment Company with a copy of the bond and with any amendment
thereto, together with a copy of each formal filing of claim by any
other named INSURED and notification of the terms 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 the first named INSURED. d. Knowledge
possessed or discovery made by any partner, director, trustee, officer
or supervisory employee of any INSURED shall constitute knowledge or
discovery by all the INSUREDS for the purposes of this bond.
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 purpose of this bond.
14. ADDITIONAL OFFICES OR EMPLOYEES - CONSOLIDATION, MERGER OR PURCHASE OR
ACQUISITION OF ASSETS OR LIABILITIES - NOTICE TO UNDERWRITER
If the INSURED, other than an Investment Company, while this bond is in
force, merges or consolidates with, or purchases or acquires assets or
liabilities of another institution, the INSURED shall not have the coverage
afforded under this bond for loss which:
a. has occurred or will occur in offices or on premises, or
b. has been caused or will be caused by an employee or employees, or
c. has arisen or will arise out of the assets or liabilities acquired
unless the INSURED
Page 10 of 15
i. gives the UNDERWRITER written notice of the proposed
consolidation, merger or purchase or acquisition of assets or
liabilities prior to the proposed effective date of such action,
and
CNA
ii. obtains the written consent of the UNDERWRITER to extend some or
all of the coverage provided by this bond to such additional
exposure, and
iii. on obtaining such consent pays to the UNDERWRITER an additional
premium.
15. CHANGE OF CONTROL - NOTICE TO UNDERWRITER
When the INSURED learns of a change in control (other than in an Investment
Company), as set forth in Section 2(a) (9) of the Investment Company Act of
1940, the INSURED shall within thirty (30) days 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 registered in another
name),
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.
Failure to give the required notice shall result in termination of coverage
for any loss involving a transferee, to be effective on the date of such
change in control.
16. REPRESENTATIONS MADE BY INSURED
The INSURED represents that all information it has furnished in the
APPLICATION for this bond or otherwise is complete, true and correct. Such
APPLICATION and other information constitute part of this bond.
The INSURED must promptly notify the UNDERWRITER of any change in any fact
or circumstance which materially affects the risk assumed by the
UNDERWRITER under this bond.
Any misrepresentation, omission, concealment or incorrect statement of a
material fact, in the APPLICATION or otherwise, shall be grounds for
rescission of this bond.
17. TERMINATION - CANCELLATION
If the bond is for a sole INSURED, it shall not be terminated or canceled
unless written notice shall have been given by the acting party to the
affected party and to the Securities and Exchange Commission, Washington,
D.C., not less than sixty (60) days prior to the effective date of such
termination or cancellation.
If the bond is for a joint INSURED, it shall not be terminated or canceled
unless written notice shall have been given by the acting party to the
affected party, and by the UNDERWRITER to all INSURED Investment Companies
and to the Securities and Exchange Commission, Washington, D.C., not less
than sixty (60) days prior to the effective date of such termination or
cancellation.
This bond will terminate as to any one INSURED, other than an Investment
Company, immediately on the taking over of such INSURED by a receiver or
other liquidator or by State or Federal officials, or immediately on the
filing of a petition under any State or Federal statute relative to
bankruptcy or
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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, disposition of all of its assets or
otherwise.
CNA
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.
Coverage will terminate as to any Employee:
a. immediately on any partner, director, trustee, or officer or
supervisory employee not acting in collusion with such Employee,
learning of any dishonest act committed by such Employee at any time,
whether in the employment of the INSURED or otherwise, whether or not
such act is of the type covered under this bond, and whether against
the INSURED or any other person or entity, or
b. sixty (60) days after the receipt by each INSURED and by the
Securities and Exchange Commission, Washington, D.C., of a written
notice from the UNDERWRITER of its desire to terminate this bond as to
such Employee.
18. CHANGE OR MODIFICATION
This bond or any instrument amending or affecting this bond may not be
changed or modified orally. No change in or modification of this bond shall
be effective except when made by written endorsement to this bond signed by
an authorized representative of the UNDERWRITER.
If this bond is for a sole INSURED, no change or modification which would
adversely affect the rights of the INSURED shall be effective prior to
sixty (60) days after written notice has been furnished to the Securities
and Exchange Commission, Washington, D.C., by the acting party.
If this bond is for a joint INSURED, no change or modification which would
adversely affect the rights of the INSURED shall be effective prior to
sixty (60) days after written notice has been furnished to all insured
Investment Companies and to the Securities and Exchange Commission,
Washington, D.C., by the UNDERWRITER.
DEFINITIONS
As used in this bond:
Computer System means:
1. computers, with related peripheral and storage components, wherever
located,
2. systems and applications software,
3. terminal devices, and
4. related communication networks by which data are electronically
collected, transmitted, processed, stored, and retrieved.
Counterfeit means an imitation of an actual valid original which is intended to
deceive and be taken as the original.
Custodian means the institution designed by an Investment Company to maintain
possession and control of its assets.
Customer means an individual, corporate, partnership or trust customer
shareholder or subscriber of an Investment Company which has a written agreement
with the INSURED for Voice Initiated Transactions.
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CNA
Employee means:
1. an officer of the INSURED,
2. a natural person while in the regular service of the INSURED at any of
the INSURED'S offices and compensated directly by the INSURED through
its payroll system and subject to the United States Internal Revenue
Service Form W-2 or equivalent income reporting plans of other
countries, and whom the INSURED has the right to control and direct
both as to the result to be accomplished and details and means by
which such result is accomplished in the performance of such service,
3. an attorney retained by the INSURED and an employee of such attorney
while either is performing legal services for the INSURED,
4. a person provided by an employment contractor to perform clerical,
premises maintenance or security duties for the INSURED under the
INSURED'S supervision at any of the INSURED'S offices or premises,
5. an employee of an institution merged or consolidated with the INSURED
prior to the effective date of this bond,
6. a guest student pursuing studies or performing duties in any of the
INSURED'S offices,
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 related to such checks
but only while such person, partnership or corporation is actually
performing such services and not:
a. creating, preparing, modifying or maintaining the INSURED'S
computer software or programs, or
b. acting as transfer agent or in any other agency capacity in
issuing checks, drafts or securities for the INSURED,
8. a director or trustee of the INSURED, but only while performing acts
within the scope of the customary and usual duties of any officer or
employee of the INSURED or while acting as a member of any committee
duly elected or appointed to examine or audit or have custody of or
access to Property of the INSURED, or
9. any partner, officer or employee of an investment adviser, an
underwriter (distributor), a transfer agent or shareholder accounting
recordkeeper, or an administrator, for an Investment Company while
performing acts coming within the scope of the customary and usual
duties of an officer or employee of an Investment Company or acting as
a member of any committee duly elected or appointed to examine, audit
or have custody of or access to Property of an Investment Company.
The term Employee shall not include any partner, officer or employee of a
transfer agent, shareholder accounting recordkeeper or administrator:
a. which is not an "affiliated person" (as defined in Section 2(a)
of the Investment Company Act of 1940) of an Investment Company
or of the investment adviser or underwriter (distributor) of such
Investment Company, or
b. which is a "bank" (as defined in Section 2(a) of the Investment
Company Act of 1940).
This bond does not afford coverage in favor of the employers of persons as
set forth in 4. and 7. above, and upon payment to the INSURED by the
UNDERWRITER resulting directly from Larceny or Embezzlement committed by
any of the partners, officers or employees of such employers, whether
acting alone or in collusion with others, an assignment of such of the
INSURED'S rights and causes of action as it may have against such employers
by reason of such acts so committed shall, to the extent of such payment,
be given by the INSURED to the UNDERWRITER, and the INSURED shall execute
all papers necessary to secure to the UNDERWRITER the rights provided for
herein.
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CNA
Each employer of persons as set forth in 3., 4. and 7. above and the
partners, officers and other employees of such employers shall collectively
be deemed to be one person for all the purposes of this bond, excepting,
however, the last paragraph of Section 18.
Independent contractors not specified in 3., 4.,7. above, intermediaries,
agents, brokers or other representatives of the same general character
shall not be considered Employees.
Forgery means the signing of the name of another person or organization
with the intent to deceive but does not mean a signature which consists in
whole or in part of one's own name, with or without authority, in any
capacity, for any purpose.
Investment Company means an investment company registered under the
Investment Company Act of 1940 and as listed under the NAME OF INSURED on
the DECLARATIONS.
Items of Deposit means one or more checks or drafts drawn upon a financial
institution in the United States of America.
Larceny or Embezzlement means larceny or embezzlement as set forth in
Section 37 of the Investment Company Act of 1940.
Property means money (i.e., currency, coin, bank notes, or Federal Reserve
notes); postage and revenue stamps; U.S. Savings Stamps; securities,
including any note, stock, treasury stock, bond, debenture, evidence of
indebtedness, certificate of deposit, certificate of interest or
participation in any profit-sharing agreement, collateral trust
certificate, preorganization certificate or subscription, transferable
share, investment contract, voting trust certificate, certificate of
deposit for a security, fractional undivided interest in oil, gas, or other
mineral rights, any interest or instruments commonly known as security
under the Investment Company Act of 1940, any other certificate of interest
or participation in, temporary or interim certificate for, receipt for,
guarantee of, or warrant or right to subscribe to or purchase any of the
foregoing; bills of exchange; acceptances; checks; withdrawal orders; money
orders; travelers' letters of credit; bills of lading; abstracts of title;
insurance policies; deeds; mortgages on real estate and/or upon chattels
and interests therein; assignments of such policies, mortgages and
instruments; other valuable papers, including books of accounts and other
records used by the INSURED in the conduct of its business (but excluding
all electronic data processing records); and, all other instruments similar
to or in the nature of the foregoing in which the INSURED acquired an
interest at the time of the INSURED'S consolidation or merger with, or
purchase of the principal assets of, a predecessor or which are held by the
INSURED for any purpose or in any capacity and whether so held gratuitously
or not and whether or not the INSURED is liable therefor.
Relative means the spouse of an Employee or partner of the INSURED and any
unmarried child supported wholly by, or living in the home of, such
Employee or partner and being related to them by blood, marriage or legal
guardianship.
Securities, documents or other written instruments means original
(including original counterparts) negotiable or non-negotiable instruments,
or assignments thereof, which in and of themselves represent an equitable
interest, ownership, or debt and which are in the ordinary course of
business transferable by delivery of such instruments with any necessary
endorsements or assignments.
Transportation Company means any organization which provides its own or
leased vehicles for transportation or which provides freight forwarding or
air express services.
Page 14 of 15
CNA
Voice Initiated Election means any election concerning dividend options
available to Investment Company shareholders or subscribers which is
requested by voice over the telephone.
Voice Initiated Redemption means any redemption of shares issued by an
Investment Company which is requested by voice over the telephone.
Voice Initiated Transaction(s) means any Voice Initiated Redemption or
Voice Initiated Election.
Chairman of the Board Secretary
Page 15 of 15
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ADDING OR DEDUCTING INSUREDS RIDER
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:
MorAmerica Capital Corporation
InvestAmerica Investment Advisors, Inc.
Accepted:
ADDING OR DEDUCTING INSUREDS RIDER
FOR USE WITH ALL FORMS OF BONDS CONTAINING A JOINT INSURED CLAUSE
OR RIDER. TO ADD OR DEDUCT JOINT INSUREDS.
REVISED TO MAY, 1957.
This rider/endorsement, which forms part of and is for attachment to the
following described bond/policy issued by the designated Underwriter/Company
takes effect on the effective date of said bond/policy, unless another effective
date is shown below, at the hour stated in said bond/policy and expires
concurrently with said bond/policy.
Complete only when this rider/endorsement is not prepared
with the bond/policy or is not to be effective with the
bond/ policy. Effective date of this rider/endorsement
Issued to:
--------------------------------------------------
Must Be Completed
--------------------------------------------------
Rider/Endorsement No. Policy No.
1 287018953-08
--------------------------------------------------
Countersigned by Authorized Representative
CNA
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INVESTMENT COMPANY BOND
GROWTH IN SIZE PROVISIONS
In consideration of the premium paid, it is understood and agreed that
CONDITIONS AND LIMITATIONS, Section 14. ADDITIONAL OFFICES OR EMPLOYEES -
CONSOLIDATION, MERGER OR PURCHASE OR ACQUISITION OF ASSETS OR LIABILITIES -
NOTICE TO UNDERWRITER is amended by the addition of the following:
14. INCREASE IN SIZE
If an INSURED, other than an Investment Company as defined in the Policy, merges
or consolidates with or purchases or acquires assets or liabilities of another
entity, there is no coverage under this bond for loss which involves any assets
or employees acquired as a result of that transaction unless the INSURED gives
the UNDERWRITER written notice of the proposed transaction prior to its proposed
effective date and obtains the written consent of the UNDERWRITER to include
those assets or employees under this bond and pays the UNDERWRITER any
additional premium charged.
If an INSURED creates, other than by acquisition, a new investment company
required by the SEC Reg 17g-1 to have coverage of the type afforded by this
bond, that investment company will be automatically insured hereunder, provided
that the total combined limit of liability for all INSURED covered hereunder, as
required by SEC Reg 17g-1, including the newly created investment company does
not exceed $450,000. If the coverage required for the newly created investment
company will exceed that limit, no coverage will be provided hereunder for the
investment company without the written consent of the UNDERWRITER.
If an Investment Company requires an increase in limits to comply with SEC Reg.
17g-1 due to an increase in asset size, whether by growth of current funds
insured under the bond or by the addition of new funds, that increase in limits
shall take place automatically and will be covered until the next Annual Period
without payment of additional premium, provided that the total combined limit of
liability for all INSUREDS under this bond does not exceed $450,000 after
including the increase in limits needed due to the increase in asset size. If
the increase in limits needed as a result of the increase in assets will exceed
$450,000, then the increase will not occur unless written consent of the
UNDERWRITER is obtained.
Within 15 days of the end of each Annual Period, each Investment Company insured
hereunder shall advise the UNDERWRITER, in writing, of its current asset size as
of the conclusion of that Annual Period and shall pay to the UNDERWRITER any
additional premium required by it for any newly created investment companies or
any increase in limits that will carry into the current Annual Period.
DEFINITIONS
Annual Period means each consecutive twelve month period commencing on the
effective date of this bond.
This endorsement, which forms a part of and is for attachment to the following
described Policy issued by the designated Insurers takes effect on the effective
date of said Policy, unless another effective date is shown below, at the hour
stated in said Policy and expires concurrently with said Policy.
Complete only when this rider/endorsement is not prepared
with the bond/policy or is not to be effective with the
bond/ policy.
Effective date of this rider/endorsement
Issued to:
--------------------------------------------------
Must Be Completed
--------------------------------------------------
Rider/Endorsement No. Policy No.
1 287018953-08
--------------------------------------------------
CNA
Countersigned by Authorized Representative
Page 1 of 1
CNA
TRADE AND ECONOMIC SANCTIONS ENDORSEMENT In
consideration of the premium paid, a new condition is added to the policy as
follows:
This policy does not provide coverage for Insureds, transactions or that
part of loss that is uninsurable under the laws or regulations of the United
States concerning trade or economic sanctions.
All other terms and conditions of the Policy remain unchanged.
--------------------------------------------------------------------------------
This endorsement, which forms a part of and is for attachment to the Policy
issued by the designated Insurers, takes effect on the effective date of said
Policy at the hour stated in said Policy and expires concurrently with said
Policy unless another effective date is shown below.
By Authorized
Representative_________________________________________________________________
(No signature is required if issued with the Policy or if it is effective on
the Policy Effective Date)
--------------------------------------------------------------------------------
GSL7207XX (5-05) Policy No:
Page 2 Endorsement No: 3
Columbia Casualty Company Effective Date:
ADDING OR DEDUCTING INSUREDS RIDER 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: e
Eudaimonia Asset Management, LLC
Accepted:
ADDING OR DEDUCTING INSUREDS RIDER
FOR USE WITH ALL FORMS OF BONDS CONTAINING A JOINT INSURED CLAUSE OR
RIDER. TO ADD OR DEDUCT JOINT INSUREDS.
REVISED TO MAY, 1957.
This rider/endorsement, which forms part of and is for attachment to the
following described bond/policy issued by the designated Underwriter/Company
takes effect on the effective date of said bond/policy, unless another effective
date is shown below, at the hour stated in said bond/policy and expires
concurrently with said bond/policy.
-----------------------------------------------------------
Must Be Completed
-----------------------------------------------------------
Rider/Endorsement No. Policy No.
4
287018953-08
-----------------------------------------------------------
Complete only when this rider/endorsement is not prepared
with the bond/policy or is not to be effective with the
bond/ policy. Effective date of this endorsement 04/30/2008
Issued to: MACC Private Equities Inc.
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