[CHUBB LOGO] CHUBB GROUP OF INSURANCE COMPANIES
DECLARATIONS
FINANCIAL INSTITUTION INVESTMENT
15 Mountain View Road, Warren, New Jersey 07059 COMPANY ASSET PROTECTION BOND
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NAME OF ASSURED (including its SUBSIDIARIES): Bond Number: 80587029
ASA BERMUDA LIMITED
FEDERAL INSURANCE COMPANY
C/O LGN GROUP, LLC Incorporated under the laws of Indiana
FLORHAM PARK, NJ 07932 a stock insurance company herein called
the COMPANY
Capital Center, 251 North Illinois,
Suite 1100
Indianapolis, IN 46204-1927
ITEM 1. BOND PERIOD: from 12:01 a.m. on September 1, 2006
to 12:01 a.m. on September 30, 2007
ITEM 2. LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
If "Not Covered" is inserted below opposite any specified INSURING
CLAUSE, such INSURING CLAUSE and any other reference shall be deemed
to be deleted. THERE SHALL BE NO DEDUCTIBLE APPLICABLE TO ANY LOSS
UNDER INSURING CLAUSE 1. SUSTAINED BY ANY INVESTMENT COMPANY.
DEDUCTIBLE
INSURING CLAUSE LIMIT OF LIABILITY AMOUNT
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1. Employee $ 1,000,000 $ 25,000
2. On Premises $ 1,000,000 $ 25,000
3. In Transit $ 1,000,000 $ 25,000
4. Forgery or Alteration $ 1,000,000 $ 25,000
5. Extended Forgery $ 1,000,000 $ 25,000
6. Counterfeit Money $Not Covered $Not Covered
7. Threats to Person $Not Covered $Not Covered
8. Computer System $ 1,000,000 $ 25,000
9. Voice Initiated Funds Transfer Instruction $ 1,000,000 $ 25,000
10. Uncollectible Items of Deposit $ 25,000 $ 5,000
11. Audit Expense $ 25,000 $ 5,000
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE
FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
1) New York Amendatory
2) Deleting Valuation - Other Property Endorsement
3) Compliance w/Applicable Trade Sanction Laws
4) Termination - NonRenewal
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its
authorized officers, but it shall not be valid unless also signed by an
authorized representative of the Company.
/s/ W. Andrew Macon /s/ Thomas F. Moteimed
Secretary President
/s/ Robert Hamburger
Countersigned by ________________________ ___________________________________
Authorized Representative
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ICAP Bond (5-98) - Federal
Form 17-02-1422 (Ed. 5-98) Page 1 of 1
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The COMPANY, in consideration of payment of the required
premium, and in reliance on the APPLICATION and all other
statements made and information furnished to the COMPANY by
the ASSURED, 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 ASSURED for:
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INSURING CLAUSES
EMPLOYEE 1. Loss resulting directly from LARCENY or EMBEZZLEMENT
committed by any EMPLOYEE, alone or in collusion with
others.
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ON PREMISES 2. Loss of PROPERTY resulting directly from robbery,
burglary, false pretenses, common law or statutory
larceny, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal, from the
possession, custody or control of the ASSURED, while
such PROPERTY is lodged or deposited at premises
located anywhere.
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IN TRANSIT 3. Loss of PROPERTY resulting directly from common law or
statutory larceny, misplacement, mysterious
unexplainable disappearance, damage or destruction,
while the PROPERTY is in transit anywhere:
a. in an armored motor vehicle, including loading and
unloading thereof,
b. in the custody of a natural person acting as a
messenger of the ASSURED, or
c. in the custody of a TRANSPORTATION COMPANY and
being transported in a conveyance other than an
armored motor vehicle provided, however, that
covered PROPERTY transported in such manner is
limited to the following:
(1) written records,
(2) securities issued in registered form, which
are not endorsed or are restrictively
endorsed, or
(3) negotiable instruments not payable to bearer,
which are not endorsed or are restrictively
endorsed.
Coverage under this INSURING CLAUSE begins immediately
on the receipt of such PROPERTY by the natural person
or TRANSPORTATION COMPANY and ends immediately on
delivery to the premises of the addressee or to any
representative of the addressee located anywhere.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 1 of 19
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INSURING CLAUSES
(CONTINUED)
FORGERY OR
ALTERATION 4. Loss resulting directly from:
a. FORGERY on, or fraudulent material alteration of,
any bills of exchange, checks, drafts,
acceptances, certificates of deposits, promissory
notes, due bills, money orders, orders upon public
treasuries, letters of credit, other written
promises, orders or directions to pay sums certain
in money, or receipts for the withdrawal of
PROPERTY, or
b. transferring, paying or delivering any funds or
other PROPERTY, or establishing any credit or
giving any value in reliance on any written
instructions, advices or applications directed to
the ASSURED authorizing or acknowledging the
transfer, payment, delivery or receipt of funds or
other PROPERTY, which instructions, advices or
applications fraudulently purport to bear the
handwritten signature of any customer of the
ASSURED, or shareholder or subscriber to shares of
an INVESTMENT COMPANY, or of any financial
institution or EMPLOYEE but which instructions,
advices or applications either bear a FORGERY or
have been fraudulently materially altered without
the knowledge and consent of such customer,
shareholder, subscriber, financial institution or
EMPLOYEE;
excluding, however, under this INSURING CLAUSE any loss
covered under INSURING CLAUSE 5. of this Bond, whether
or not coverage for INSURING CLAUSE 5. is provided for
in the DECLARATIONS of this Bond.
For the purpose of this INSURING CLAUSE, a mechanically
reproduced facsimile signature is treated the same as a
handwritten signature.
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EXTENDED FORGERY 5. Loss resulting directly from the ASSURED having, in
good faith, and in the ordinary course of business, for
its own account or the account of others in any
capacity:
a. acquired, accepted or received, accepted or
received, sold or delivered, or given value,
extended credit or assumed liability, in reliance
on any original SECURITIES, DOCUMENTS OR OTHER
WRITTEN INSTRUMENTS which prove to:
(1) bear a FORGERY or a fraudulently material
alteration,
(2) have been lost or stolen, or
(3) be COUNTERFEIT, or
b. guaranteed in writing or witnessed any signatures
on any transfer, assignment, bill of sale, power
of attorney, guarantee, endorsement or other
obligation upon or in connection with any
SECURITIES, DOCUMENTS OR OTHER WRITTEN
INSTRUMENTS.
Actual physical possession, and continued actual
physical possession if taken as collateral, of such
SECURITIES, DOCUMENTS OR OTHER WRITTEN INSTRUMENTS by
an EMPLOYEE, CUSTODIAN, or a Federal or State chartered
deposit institution of the ASSURED is a condition
precedent to the ASSURED having relied on such items.
Release or return of such collateral is an
acknowledgment by the ASSURED that it no longer relies
on such collateral.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 2 of 19
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INSURING CLAUSES
EXTENDED FORGERY For the purpose of this INSURING CLAUSE, a mechanically
(CONTINUED) reproduced facsimile signature is treated the same as a
handwritten signature.
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COUNTERFEIT MONEY 6. Loss resulting directly from the receipt by the ASSURED
in good faith of any COUNTERFEIT money.
THREATS TO PERSON 7. Loss resulting directly from surrender of PROPERTY away
from an office of the ASSURED as a result of a threat
communicated to the ASSURED to do bodily harm to an
EMPLOYEE as defined in Section 1.e. (1), (2) and (5), a
RELATIVE or invitee of such EMPLOYEE, or a resident of
the household of such EMPLOYEE, who is, or allegedly
is, being held captive provided, however, that prior to
the surrender of such PROPERTY:
a. the EMPLOYEE who receives the threat has made a
reasonable effort to notify an officer of the
ASSURED who is not involved in such threat, and
b. the ASSURED has made a reasonable effort to notify
the Federal Bureau of Investigation and local law
enforcement authorities concerning such threat.
It is agreed that for purposes of this INSURING CLAUSE,
any EMPLOYEE of the ASSURED, as set forth in the
preceding paragraph, shall be deemed to be an ASSURED
hereunder, but only with respect to the surrender of
money, securities and other tangible personal property
in which such EMPLOYEE has a legal or equitable
interest.
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COMPUTER SYSTEM 8. Loss resulting directly from fraudulent:
a. entries of data into, or
b. changes of data elements or programs within,
a COMPUTER SYSTEM, provided the fraudulent entry or
change causes:
(1) funds or other property to be transferred,
paid or delivered,
(2) an account of the ASSURED or of its customer
to be added, deleted, debited or credited, or
(3) an unauthorized account or a fictitious
account to be debited or credited.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 3 of 19
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INSURING CLAUSES
(CONTINUED)
VOICE INITIATED 9. Loss resulting directly from VOICE INITIATED FUNDS
FUNDS TRANSFER TRANSFER INSTRUCTION directed to the ASSURED
INSTRUCTION authorizing the transfer of dividends or redemption
proceeds of INVESTMENT COMPANY shares from a CUSTOMER'S
account, provided such VOICE INITIATED FUNDS TRANSFER
INSTRUCTION was:
a. received at the ASSURED'S offices by those
EMPLOYEES of the ASSURED specifically authorized
to receive the VOICE INITIATED FUNDS TRANSFER
INSTRUCTION,
b. made by a person purporting to be a CUSTOMER, and
c. made by said person for the purpose of causing the
ASSURED or CUSTOMER to sustain a loss or making an
improper personal financial gain for such person
or any other person.
In order for coverage to apply under this INSURING
CLAUSE, all VOICE INITIATED FUNDS TRANSFER INSTRUCTIONS
must be received and processed in accordance with the
Designated Procedures outlined in the APPLICATION
furnished to the COMPANY.
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UNCOLLECTIBLE 10. Loss resulting directly from the ASSURED having
ITEMS OF DEPOSIT credited an account of a customer, shareholder or
subscriber on the faith of any ITEMS OF DEPOSIT which
prove to be uncollectible, provided that the crediting
of such account causes:
a. redemptions or withdrawals to be permitted,
b. shares to be issued, or
c. dividends to be paid,
from an account of an INVESTMENT COMPANY.
In order for coverage to apply under this INSURING
CLAUSE, the ASSURED must hold ITEMS OF DEPOSIT for the
minimum number of days stated in the APPLICATION before
permitting any redemptions or withdrawals, issuing any
shares or paying any dividends with respect to such
ITEMS OF DEPOSIT.
ITEMS OF DEPOSIT shall not be deemed uncollectible
until the ASSURED'S standard collection procedures have
failed.
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AUDIT EXPENSE 11. Expense incurred by the ASSURED for that part of the
cost of audits or examinations required by any
governmental regulatory authority or self-regulatory
organization to be conducted by such authority,
organization or their appointee by reason of the
discovery of loss sustained by the ASSURED and covered
by this Bond.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 4 of 19
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GENERAL AGREEMENTS
ADDITIONAL A. If more than one corporation, or INVESTMENT COMPANY, or
COMPANIES INCLUDED any combination of them is included as the ASSURED
AS ASSURED herein:
(1) The total liability of the COMPANY under this Bond
for loss or losses sustained by any one or more or
all of them shall not exceed the limit for which
the COMPANY would be liable under this Bond if all
such loss were sustained by any one of them.
(2) Only the first named ASSURED shall be deemed to be
the sole agent of the others for all purposes
under this Bond, including but not limited to the
giving or receiving of any notice or proof
required to be given and for the purpose of
effecting or accepting any amendments to or
termination of this Bond. The COMPANY shall
furnish each INVESTMENT COMPANY with a copy of the
Bond and with any amendment thereto, together with
a copy of each formal filing of claim by any other
named ASSURED and notification of the terms of the
settlement of each such claim prior to the
execution of such settlement.
(3) The COMPANY shall not be responsible for the
proper application of any payment made hereunder
to the first named ASSURED.
(4) Knowledge possessed or discovery made by any
partner, director, trustee, officer or supervisory
employee of any ASSURED shall constitute knowledge
or discovery by all the ASSUREDS for the purposes
of this Bond.
(5) If the first named ASSURED ceases for any reason
to be covered under this Bond, then the ASSURED
next named on the APPLICATION shall thereafter be
considered as the first named ASSURED for the
purposes of this Bond.
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REPRESENTATION B. The ASSURED represents that all information it has
MADE BY ASSURED furnished in the APPLICATION for this Bond or otherwise
is complete, true and correct. Such APPLICATION and
other information constitute part of this Bond.
The ASSURED must promptly notify the COMPANY of any
change in any fact or circumstance which materially
affects the risk assumed by the COMPANY under this
Bond.
Any intentional misrepresentation, omission,
concealment or incorrect statement of a material fact,
in the APPLICATION or otherwise, shall be grounds for
recision of this Bond.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 5 of 19
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GENERAL AGREEMENTS
(CONTINUED)
ADDITIONAL OFFICES C. If the ASSURED, other than an INVESTMENT COMPANY,
OR EMPLOYEES - while this Bond is in force, merges or consolidates
CONSOLIDATION, with, or purchases or acquires assets or liabilities of
MERGER OR PURCHASE another institution, the ASSURED shall not have the
OR ACQUISITION OF coverage afforded under this Bond for loss which has:
ASSETS OR
LIABILITIES - (1) occurred or will occur on premises, or
NOTICE TO COMPANY
(2) been caused or will be caused by an employee, or
(3) arisen or will arise out of the assets or
liabilities,
of such institution, unless the ASSURED:
a. gives the COMPANY written notice of the proposed
consolidation, merger or purchase or acquisition
of assets or liabilities prior to the proposed
effective date of such action, and
b. obtains the written consent of the COMPANY to
extend some or all of the coverage provided by
this Bond to such additional exposure, and
c. on obtaining such consent, pays to the COMPANY an
additional premium.
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CHANGE OF CONTROL - D. When the ASSURED learns of a change in control (other
NOTICE TO COMPANY than in an INVESTMENT COMPANY), as set forth in Section
2(a) (9) of the Investment Company Act of 1940, the
ASSURED shall within sixty (60) days give written
notice to the COMPANY setting forth:
(1) the names of the transferors and transferees (or
the names of the beneficial owners if the voting
securities are registered in another name),
(2) the total number of voting securities owned by the
transferors and the transferees (or the beneficial
owners), both immediately before and after the
transfer, and
(3) the total number of outstanding voting securities.
Failure to give the required notice shall result in
termination of coverage for any loss involving a
transferee, to be effective on the date of such change
in control.
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COURT COSTS AND E. The COMPANY will indemnify the ASSURED for court costs
ATTORNEYS' FEES and reasonable attorneys' fees incurred and paid by the
ASSURED in defense, whether or not successful, whether
or not fully litigated on the merits and whether or
not settled, of any claim, suit or legal proceeding
with respect to which the ASSURED would be entitled to
recovery under this Bond. However, with respect to
INSURING CLAUSE 1., this Section shall only apply in
the event that:
(1) an EMPLOYEE admits to being guilty of LARCENY OR
EMBEZZLEMENT,
(2) an EMPLOYEE is adjudicated to be guilty of LARCENY
OR EMBEZZLEMENT, or
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 6 of 19
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GENERAL AGREEMENTS
COURT COSTS AND (3) in the absence of 1 or 2 above, an arbitration
ATTORNEYS' FEES panel agrees, after a review of an agreed
(CONTINUED) statement of facts between the COMPANY and the
ASSURED, that an EMPLOYEE would be found guilty of
LARCENY OR EMBEZZLEMENT if such EMPLOYEE were
prosecuted.
The ASSURED shall promptly give notice to the COMPANY
of any such suit or legal proceeding and at the request
of the COMPANY shall furnish copies of all pleadings
and pertinent papers to the COMPANY. The COMPANY may,
at its sole option, elect to conduct the defense of all
or part of such legal proceeding. The defense by the
COMPANY shall be in the name of the ASSURED through
attorneys selected by the COMPANY. The ASSURED shall
provide all reasonable information and assistance as
required by the COMPANY for such defense.
If the COMPANY declines to defend the ASSURED, no
settlement without the prior written consent of the
COMPANY nor judgment against the ASSURED shall
determine the existence, extent or amount of coverage
under this Bond.
If the amount demanded in any such suit or legal
proceeding is within the DEDUCTIBLE AMOUNT, if any, the
COMPANY shall have no liability for court costs and
attorney's fees incurred in defending all or part of
such suit or legal proceeding.
If the amount demanded in any such suit or legal
proceeding is in excess of the LIMIT OF LIABILITY
stated in ITEM 2. of the DECLARATIONS for the
applicable INSURING CLAUSE, the COMPANY'S liability for
court costs and attorney's fees incurred in defending
all or part of such suit or legal proceedings is
limited to the proportion of such court costs and
attorney's fees incurred that the LIMIT OF LIABILITY
stated in ITEM 2. of the DECLARATIONS for the
applicable INSURING CLAUSE bears to the total of the
amount demanded in such suit or legal proceeding.
If the amount demanded is any such suit or legal
proceeding is in excess of the DEDUCTIBLE AMOUNT, if
any, but within the LIMIT OF LIABILITY stated in ITEM
2. of the DECLARATIONS for the applicable INSURING
CLAUSE, the COMPANY'S liability for court costs and
attorney's fees incurred in defending all or part of
such suit or legal proceedings shall be limited to the
proportion of such court costs or attorney's fees that
the amount demanded that would be payable under this
Bond after application of the DEDUCTIBLE AMOUNT, bears
to the total amount demanded.
Amounts paid by the COMPANY for court costs and
attorneys' fees shall be in addition to the LIMIT OF
LIABILITY stated in ITEM 2. of the DECLARATIONS.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 7 of 19
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CONDITIONS AND
LIMITATIONS
DEFINITIONS 1. As used in this Bond:
a. COMPUTER SYSTEM means a computer and all input,
output, processing, storage, off-line media
libraries, and communication facilities which are
connected to the computer and which are under the
control and supervision of the operating system(s)
or application(s) software used by the ASSURED.
b. COUNTERFEIT means an imitation of an actual valid
original which is intended to deceive and be taken
as the original.
c. CUSTODIAN means the institution designated by an
INVESTMENT COMPANY to maintain possession and
control of its assets.
d. CUSTOMER means an individual, corporate,
partnership, trust customer, shareholder or
subscriber of an INVESTMENT COMPANY which has a
written agreement with the ASSURED for VOICE
INITIATED FUNDS TRANSFER INSTRUCTION.
e. EMPLOYEE means:
(1) an officer of the ASSURED,
(2) a natural person while in the regular service
of the ASSURED at any of the ASSURED'S
premises and compensated directly by the
ASSURED through its payroll system and
subject to the United States Internal Revenue
Service Form W-2 or equivalent income
reporting plans of other countries, and whom
the ASSURED has the right to control and
direct both as to the result to be
accomplished and details and means by which
such result is accomplished in the
performance of such service,
(3) a guest student pursuing studies or
performing duties in any of the ASSURED'S
premises,
(4) an attorney retained by the ASSURED and an
employee of such attorney while either is
performing legal services for the ASSURED,
(5) a natural person provided by an employment
contractor to perform employee duties for the
ASSURED under the ASSURED'S supervision at
any of the ASSURED'S premises,
(6) an employee of an institution merged or
consolidated with the ASSURED prior to the
effective date of this Bond,
(7) a director or trustee of the ASSURED, but
only while performing acts within the scope
of the customary and usual duties of any
officer or other employee of the ASSURED or
while acting as a member of any committee
duly elected or appointed to examine or audit
or have custody of or access to PROPERTY of
the ASSURED, or
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Form 17-02-1421 (Ed. 5-98) Page 8 of 19
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CONDITIONS AND
LIMITATIONS
DEFINITIONS (8) each natural person, partnership or
(CONTINUED) corporation authorized by written agreement
with the ASSURED to perform services as
electronic data processor of checks or other
accounting records related to such checks but
only while such person, partnership or
corporation is actually performing such
services and not:
a. creating, preparing, modifying or
maintaining the ASSURED'S computer
software or programs, or
b. acting as transfer agent or in any other
agency capacity in issuing checks,
drafts or securities for the ASSURED,
(9) any partner, officer or employee of an
investment advisor, an underwriter
(distributor), a transfer agent or
shareholder accounting recordkeeper, or an
administrator, for an INVESTMENT COMPANY
while performing acts coming within the scope
of the customary and usual duties of an
officer or employee of an INVESTMENT COMPANY
or acting as a member of any committee duly
elected or appointed to examine, audit or
have custody of or access to PROPERTY of an
INVESTMENT COMPANY.
The term EMPLOYEE shall not include any
partner, officer or employee of a transfer
agent, shareholder accounting recordkeeper or
administrator:
a. which is not an "affiliated person" (as
defined in Section 2(a) of the
Investment Company Act of 1940) of an
INVESTMENT COMPANY or of the investment
advisor or underwriter (distributor) of
such INVESTMENT COMPANY, or
b. which is a "bank" (as defined in Section
2(a) of the Investment Company Act of
1940).
This Bond does not afford coverage in
favor of the employers of persons as set
forth in e. (4), (5) and (8) above, and
upon payment to the ASSURED by the
COMPANY resulting directly from LARCENY
OR EMBEZZLEMENT committed by any of the
partners, officers or employees of such
employers, whether acting alone or in
collusion with others, an assignment of
such of the ASSURED'S rights and causes
of action as it may have against such
employers by reason of such acts so
committed shall, to the extent of such
payment, be given by the ASSURED to the
COMPANY, and the ASSURED shall execute
all papers necessary to secure to the
COMPANY the rights provided for herein.
Each employer of persons as set forth in
e.(4), (5) and (8) above and the partners,
officers and other employees of such
employers shall collectively be deemed to be
one person for all the purposes of this Bond;
excepting, however, the fifth paragraph of
Section 13.
Independent contractors not specified in
e.(4), (5) or (8) above, intermediaries,
agents, brokers or other representatives of
the same general character shall not be
considered EMPLOYEES.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 9 of 19
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CONDITIONS AND
LIMITATIONS
DEFINITIONS f. FORGERY means the signing of the name of another
(CONTINUED) natural person with the intent to deceive but does
not mean a signature which consists in whole or in
part of one's own name, with or without authority,
in any capacity for any purpose.
g. INVESTMENT COMPANY means any investment company
registered under the Investment Company Act of
1940 and listed under the NAME OF ASSURED on the
DECLARATIONS.
h. ITEMS OF DEPOSIT means one or more checks or
drafts drawn upon a financial institution in the
United States of America.
i. LARCENY OR EMBEZZLEMENT means larceny or
embezzlement as defined in Section 37 of the
Investment Company Act of 1940.
j. PROPERTY means money, revenue and other stamps;
securities; including any note, stock, treasury
stock, bond, debenture, evidence of indebtedness,
certificate of deposit, certificate of interest or
participation in any profit sharing agreement,
collateral trust certificate, preorganization
certificate or subscription, transferable share,
investment contract, voting trust certificate,
certificate of deposit for a security, fractional
undivided interest in oil, gas, or other mineral
rights, any interest or instruments commonly known
as a security under the Investment Company Act of
1940, any other certificate of interest or
participation in, temporary or interim certificate
for, receipt for, guarantee of, or warrant or
right to subscribe to or purchase any of the
foregoing; bills of exchange; acceptances; checks;
withdrawal orders; money orders; travelers'
letters of credit; bills of lading; abstracts of
title; insurance policies, deeds, mortgages on
real estate and/or upon chattels and interests
therein; assignments of such policies, deeds or
mortgages; other valuable papers, including books
of accounts and other records used by the ASSURED
in the conduct of its business (but excluding all
electronic data processing records); and, all
other instruments similar to or in the nature of
the foregoing in which the ASSURED acquired an
interest at the time of the ASSURED'S
consolidation or merger with, or purchase of the
principal assets of, a predecessor or which are
held by the ASSURED for any purpose or in any
capacity and whether so held gratuitously or not
and whether or not the ASSURED is liable therefor.
k. RELATIVE means the spouse of an EMPLOYEE or
partner of the ASSURED and any unmarried child
supported wholly by, or living in the home of,
such EMPLOYEE or partner and being related to them
by blood, marriage or legal guardianship.
1. 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.
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Form 17-02-1421 (Ed. 5-98) Page 10 of 19
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CONDITIONS AND
LIMITATIONS
DEFINITIONS m. SUBSIDIARY means any organization that, at the
(CONTINUED) inception date of this Bond, is named in the
APPLICATION or is created during the BOND PERIOD
and of which more than fifty percent (50%) of the
outstanding securities or voting rights
representing the present right to vote for
election of directors is owned or controlled by
the ASSURED either directly or through one or more
of its subsidiaries.
n. TRANSPORTATION COMPANY means any organization
which provides its own or its leased vehicles for
transportation or which provides freight
forwarding or air express services.
o. VOICE INITIATED ELECTION means any election
concerning dividend options available to
INVESTMENT COMPANY shareholders or subscribers
which is requested by voice over the telephone.
p. VOICE INITIATED REDEMPTION means any redemption of
shares issued by an INVESTMENT COMPANY which is
requested by voice over the telephone.
q. VOICE INITIATED FUNDS TRANSFER INSTRUCTION means
any VOICE INITIATED REDEMPTION or VOICE INITIATED
ELECTION.
For the purposes of these definitions, the singular
includes the plural and the plural includes the
singular, unless otherwise indicated.
GENERAL 2. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
EXCLUSIONS -
APPLICABLE TO a. loss not reported to the COMPANY in writing within
ALL INSURING sixty (60) days after termination of this Bond as
CLAUSES an entirety;
b. loss due to riot or civil commotion outside the
United States of America and Canada, or any loss
due to military, naval or usurped power, war or
insurrection. This Section 2.b., however, shall
not apply to loss which occurs in transit in the
circumstances recited in INSURING CLAUSE 3.,
provided that when such transit was initiated
there was no knowledge on the part of any person
acting for the ASSURED of such riot, civil
commotion, military, naval or usurped power, war
or insurrection;
c. loss resulting from the effects of nuclear fission
or fusion or radioactivity;
d. loss of potential income including, but not
limited to, interest and dividends not realized by
the ASSURED or by any customer of the ASSURED;
e. damages of any type for which the ASSURED is
legally liable, except compensatory damages, but
not multiples thereof, arising from a loss covered
under this Bond;
f. costs, fees and expenses incurred by the ASSURED
in establishing the existence of or amount of loss
under this Bond, except to the extent covered
under INSURING CLAUSE 11.;
g. loss resulting from indirect or consequential loss
of any nature;
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 11 of 19
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CONDITIONS AND
LIMITATIONS
GENERAL h. loss resulting from dishonest acts by any member
EXCLUSIONS - of the Board of Directors or Board of Trustees of
APPLICABLE TO the ASSURED who is not an EMPLOYEE, acting alone
ALL INSURING or in collusion with others;
CLAUSES
(CONTINUED) i. loss, or that part of any loss, resulting solely
from any violation by the ASSURED or by any
EMPLOYEE:
(1) of any law regulating:
a. the issuance, purchase or sale of
securities,
b. securities transactions on security or
commodity exchanges or the over the
counter market,
c. investment companies,
d. investment advisors, or
(2) of any rule or regulation made pursuant to
any such law; or
j. loss of confidential information, material or
data;
k. loss resulting from voice requests or instructions
received over the telephone, provided however,
this Section 2.k. shall not apply to INSURING
CLAUSE 7. or 9.
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SPECIFIC 3. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
EXCLUSIONS -
APPLICABLE TO a. loss caused by an EMPLOYEE, provided, however,
ALL INSURING this Section 3.a. shall not apply to loss covered
CLAUSES EXCEPT under INSURING CLAUSE 2. or 3. which results
INSURING CLAUSE 1. directly from misplacement, mysterious
unexplainable disappearance, or damage or
destruction of PROPERTY;
b. loss through the surrender of property away from
premises of the ASSURED as a result of a threat:
(1) to do bodily harm to any natural person,
except loss of PROPERTY in transit in the
custody of any person acting as messenger of
the ASSURED, provided that when such transit
was initiated there was no knowledge by the
ASSURED of any such threat, and provided
further that this Section 3.b. shall not
apply to INSURING CLAUSE 7., or
(2) to do damage to the premises or PROPERTY of
the ASSURED;
c. loss resulting from payments made or withdrawals
from any account involving erroneous credits to
such account;
d. loss involving ITEMS OF DEPOSIT which are not
finally paid for any reason provided however, that
this Section 3.d. shall not apply to INSURING
CLAUSE 10.;
e. loss of property while in the mail;
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 12 of 19
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CONDITIONS AND
LIMITATIONS
SPECIFIC f. loss resulting from the failure for any reason of
EXCLUSIONS - a financial or depository institution, its
APPLICABLE TO receiver or other liquidator to pay or deliver
ALL INSURING funds or other PROPERTY to the ASSURED provided
CLAUSES EXCEPT further that this Section 3.f. shall not apply to
INSURING CLAUSE 1. loss of PROPERTY resulting directly from robbery,
(CONTINUED) burglary, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal from
the possession, custody or control of the ASSURED.
g. loss of PROPERTY while in the custody of a
TRANSPORTATION COMPANY, provided however, that
this Section 3.g. shall not apply to INSURING
CLAUSE 3.;
h. loss resulting from entries or changes made by a
natural person with authorized access to a
COMPUTER SYSTEM who acts in good faith on
instructions, unless such instructions are given
to that person by a software contractor or its
partner, officer, or employee authorized by the
ASSURED to design, develop, prepare, supply,
service, write or implement programs for the
ASSURED's COMPUTER SYSTEM; or
i. loss resulting directly or indirectly from the
input of data into a COMPUTER SYSTEM terminal,
either on the premises of the customer of the
ASSURED or under the control of such a customer,
by a customer or other person who had authorized
access to the customer's authentication mechanism.
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SPECIFIC 4. THIS BOND DOES NOT DIRECTLY OR INDIRECTLY COVER:
EXCLUSIONS -
APPLICABLE TO ALL a. loss resulting from the complete or partial
INSURING CLAUSES non-payment of or default on any loan whether such
EXCEPT INSURING loan was procured in good faith or through trick,
CLAUSES 1., 4., artifice, fraud or false pretenses; provided,
AND 5. however, this Section 4.a. shall not apply to
INSURING CLAUSE 8.;
b. loss resulting from forgery or any alteration;
c. loss involving a counterfeit provided, however,
this Section 4.c. shall not apply to INSURING
CLAUSE 5. or 6.
LIMIT OF 5. At all times prior to termination of this Bond, this
LIABILITY/NON- Bond shall continue in force for the limit stated in
REDUCTION AND NON- the applicable sections of ITEM 2. of the DECLARATIONS,
ACCUMULATION OF notwithstanding any previous loss for which the COMPANY
LIABILITY may have paid or be liable to pay under this Bond
provided, however, that the liability of the COMPANY
under this Bond with respect to all loss resulting
from:
a. any one act of burglary, robbery or hold-up, or
attempt thereat, in which no EMPLOYEE is concerned
or implicated, or
b. any one unintentional or negligent act on the part
of any one person resulting in damage to or
destruction or misplacement of PROPERTY, or
c. all acts, other than those specified in a. above,
of any one person, or
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ICAP Yond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 13 of 19
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CONDITIONS AND
LIMITATIONS
LIMIT OF d. any one casualty or event other than those
LIABILITY/NON- specified in a., b., or c. above,
REDUCTION AND NON-
ACCUMULATION OF shall be deemed to be one loss and shall be limited to
LIABILITY the applicable LIMIT OF LIABILITY stated in ITEM 2. of
(CONTINUED) 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.
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DISCOVERY 6. This Bond applies only to loss first discovered by an
officer of the ASSURED during the BOND PERIOD.
Discovery occurs at the earlier of an officer of the
ASSURED being aware of:
a. facts which may subsequently result in a loss of a
type covered by this Bond, or
b. an actual or potential claim in which it is
alleged that the ASSURED is liable to a third
party,
regardless of when the act or acts causing or
contributing to such loss occurred, even though the
amount of loss does not exceed the applicable
DEDUCTIBLE AMOUNT, or the exact amount or details of
loss may not then be known.
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NOTICE TO 7. a. The ASSURED shall give the COMPANY notice thereof
COMPANY - at the earliest practicable moment, not to exceed
PROOF - LEGAL sixty (60) days after discovery of loss, in an
PROCEEDINGS amount that is in excess of 50% of the applicable
AGAINST COMPANY DEDUCTIBLE AMOUNT, as stated in ITEM 2. of the
DECLARATIONS.
b. The ASSURED shall furnish to the COMPANY proof of
loss, duly sworn to, with full particulars within
six (6) months after such discovery.
c. Securities listed in a proof of loss shall be
identified by certificate or bond numbers, if
issued with them.
d. Legal proceedings for the recovery of any loss
under this Bond shall not be brought prior to the
expiration of sixty (60) days after the proof of
loss is filed with the COMPANY or after the
expiration of twenty-four (24) months from the
discovery of such loss.
e. This Bond affords coverage only in favor of the
ASSURED. No claim, suit, action or legal
proceedings shall be brought under this Bond by
anyone other than the ASSURED.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 14 of 19
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CONDITIONS AND
LIMITATIONS
NOTICE TO COMPANY - f. Proof of loss involving VOICE INITIATED FUNDS
PROOF - LEGAL TRANSFER INSTRUCTION shall include electronic
PROCEEDINGS AGAINST recordings of such instructions.
COMPANY (CONTINUED)
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DEDUCTIBLE AMOUNT 8. The COMPANY shall not be liable under any INSURING
CLAUSES of this Bond on account of loss unless the
amount of such loss, after deducting the net amount of
all reimbursement and/or recovery obtained or made by
the ASSURED, other than from any Bond or policy of
insurance issued by an insurance company and covering
such loss, or by the COMPANY on account thereof prior
to payment by the COMPANY of such loss, shall exceed
the DEDUCTIBLE AMOUNT set forth in ITEM 3. of the
DECLARATIONS, and then for such excess only, but in no
event for more than the applicable LIMITS OF LIABILITY
stated in ITEM 2. of the DECLARATIONS.
There shall be no deductible applicable to any loss under
INSURING CLAUSE 1. sustained by any INVESTMENT COMPANY.
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VALUATION 9. BOOKS OF ACCOUNT OR OTHER RECORDS
The value of any loss of PROPERTY consisting of books
of account or other records used by the ASSURED in the
conduct of its business shall be the amount paid by the
ASSURED for blank books, blank pages, or other
materials which replace the lost books of account or
other records, plus the cost of labor paid by the
ASSURED for the actual transcription or copying of data
to reproduce such books of account or other records.
The value of any loss of PROPERTY other than books of
account or other records used by the ASSURED in the
conduct of its business, for which a claim is made
shall be determined by the average market value of such
PROPERTY on the business day immediately preceding
discovery of such loss provided, however, that the
value of any PROPERTY replaced by the ASSURED with the
consent of the COMPANY and prior to the settlement of
any claim for such PROPERTY shall be the actual market
value at the time of replacement.
In the case of a loss of interim certificates,
warrants, rights or other securities, the production of
which is necessary to the exercise of subscription,
conversion, redemption or deposit privileges, the
value of them shall be the market value of such
privileges immediately preceding their expiration if
said loss is not discovered until after their
expiration. If no market price is quoted for such
PROPERTY or for such privileges, the value shall be
fixed by agreement between the parties.
OTHER PROPERTY
The value of any loss of PROPERTY, other than as stated
above, shall be the actual cash value or the cost of
repairing or replacing such PROPERTY with PROPERTY of
like quality and value, whichever is less.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 15 of 19
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CONDITIONS AND
LIMITATIONS
(CONTINUED)
SECURITIES 10. In the event of a loss of securities covered under this
SETTLEMENT Bond, the COMPANY may, at its sole discretion, purchase
replacement securities, tender the value of the
securities in money, or issue its indemnity to effect
replacement securities.
The indemnity required from the ASSURED under the terms
of this Section against all loss, cost or expense
arising from the replacement of securities by the
COMPANY'S indemnity shall be:
a. for securities having a value less than or equal
to the applicable DEDUCTIBLE AMOUNT - one hundred
(100%) percent;
b. for securities having a value in excess of the
DEDUCTIBLE AMOUNT but within the applicable LIMIT
OF LIABILITY - the percentage that the DEDUCTIBLE
AMOUNT bears to the value of the securities;
c. for securities having a value greater than the
applicable LIMIT OF LIABILITY - the percentage
that the DEDUCTIBLE AMOUNT and portion in excess
of the applicable LIMIT OF LIABILITY bears to the
value of the securities.
The value referred to in Section 10.a., b., and c. is
the value in accordance with Section 9, VALUATION,
regardless of the value of such securities at the time
the loss under the COMPANY'S indemnity is sustained.
The COMPANY is not required to issue its indemnity for
any portion of a loss of securities which is not
covered by this Bond; however, the COMPANY may do so as
a courtesy to the ASSURED and at its sole discretion.
The ASSURED shall pay the proportion of the Company's
premium charge for the Company's indemnity as set forth
in Section 10.a., b., and c. No portion of the LIMIT OF
LIABILITY shall be used as payment of premium for any
indemnity purchased by the ASSURED to obtain
replacement securities.
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SUBROGATION - 11. In the event of a payment under this Bond, the COMPANY
ASSIGNMENT - shall be subrogated to all of the ASSURED'S rights of
RECOVERY recovery against any person or entity to the extent of
such payment. On request, the ASSURED shall deliver to
the COMPANY an assignment of the ASSURED'S rights,
title and interest and causes of action against any
person or entity to the extent of such payment.
Recoveries, whether effected by the COMPANY or by the
ASSURED, shall be applied net of the expense of such
recovery in the following order:
a. first, to the satisfaction of the ASSURED'S loss
which would otherwise have been paid but for the
fact that it is in excess of the applicable LIMIT
OF LIABILITY,
b. second, to the COMPANY in satisfaction of amounts
paid in settlement of the ASSURED'S claim,
c. third, to the ASSURED in satisfaction of the
applicable DEDUCTIBLE AMOUNT, and
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 16 of 19
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CONDITIONS AND
LIMITATIONS
SUBROGATION - d. fourth, to the ASSURED in satisfaction of any loss
ASSIGNMENT - suffered by the ASSURED which was not covered
RECOVERY under this Bond.
(CONTINUED)
Recovery from reinsurance or indemnity of the COMPANY
shall not be deemed a recovery under this section.
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COOPERATION OF 12. At the COMPANY'S request and at reasonable times and
ASSURED places designated by the COMPANY, the ASSURED shall:
a. submit to examination by the COMPANY and subscribe
to the same under oath,
b. produce for the COMPANY'S examination all
pertinent records, and
c. cooperate with the COMPANY in all matters
pertaining to the loss.
The ASSURED shall execute all papers and render
assistance to secure to the COMPANY the rights and
causes of action provided for under this Bond. The
ASSURED shall do nothing after loss to prejudice such
rights or causes of action.
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TERMINATION 13. If the Bond is for a sole ASSURED, it shall not be
terminated unless written notice shall have been given
by the acting party to the affected party and to the
Securities and Exchange Commission, Washington, D.C.,
not less than sixty (60) days prior to the effective
date of such termination.
If the Bond is for a joint ASSURED, it shall not be
terminated unless written notice shall have been given
by the acting party to the affected party, and by the
COMPANY to all ASSURED INVESTMENT COMPANIES and to the
Securities and Exchange Commission, Washington, D.C.,
not less than sixty (60) days prior to the effective
date of such termination.
This Bond will terminate as to any one ASSURED, other
than an INVESTMENT COMPANY:
a. immediately on the taking over of such ASSURED by
a receiver or other liquidator or by State or
Federal officials, or
b. immediately on the filing of a petition under any
State or Federal statute relative to bankruptcy or
reorganization of the ASSURED, or assignment for
the benefit of creditors of the ASSURED, or
c. immediately upon such ASSURED ceasing to exist,
whether through merger into another entity,
disposition of all of its assets or otherwise.
The COMPANY shall refund the unearned premium computed
at short rates in accordance with the standard short
rate cancellation tables if terminated by the ASSURED
or pro rata if terminated for any other reason.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 17 of 19
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CONDITIONS AND
LIMITATIONS
TERMINATION If any partner, director, trustee, or officer or
(CONTINUED) supervisory employee of an ASSURED not acting in
collusion with an EMPLOYEE learns of any dishonest act
committed by such EMPLOYEE at any time, whether in the
employment of the ASSURED or otherwise, whether or not
such act is of the type covered under this Bond, and
whether against the ASSURED or any other person or
entity, the ASSURED:
a. shall immediately remove such EMPLOYEE from a
position that would enable such EMPLOYEE to cause
the ASSURED to suffer a loss covered by this
Bond; and
b. within forty-eight (48) hours of learning that an
EMPLOYEE has committed any dishonest act, shall
notify the COMPANY, of such action and provide
full particulars of such dishonest act.
The COMPANY may terminate coverage as respects any
EMPLOYEE sixty (60) days after written notice is
received by each ASSURED INVESTMENT COMPANY and the
Securities and Exchange Commission, Washington, D.C. of
its desire to terminate this Bond as to such EMPLOYEE.
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OTHER INSURANCE 14. Coverage under this Bond shall apply only as excess
over any valid and collectible insurance, indemnity or
suretyship obtained by or on behalf of:
a. the ASSURED,
b. a TRANSPORTATION COMPANY, or
c. another entity on whose premises the loss occurred
or which employed the person causing the loss or
engaged the messenger conveying the PROPERTY
involved.
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CONFORMITY 15. If any limitation within this Bond is prohibited by any
law controlling this Bond's construction, such
limitation shall be deemed to be amended so as to equal
the minimum period of limitation provided by such law.
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CHANGE OR 16. This Bond or any instrument amending or affecting this
MODIFICATION Bond may not be changed or modified orally. No change
in or modification of this Bond shall be effective
except when made by written endorsement to this Bond
signed by an authorized representative of the COMPANY.
If this Bond is for a sole ASSURED, no change or
modification which would adversely affect the rights of
the ASSURED shall be effective prior to sixty (60) days
after written notice has been furnished to the
Securities and Exchange Commission, Washington, D.C.,
by the acting party.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 18 of 19
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CONDITIONS AND
LIMITATIONS
CHANGE OR If this Bond is for a joint ASSURED, no charge or
MODIFICATION modification which would adversely affect the rights of
(CONTINUED) the ASSURED shall be effective prior to sixty (60) days
after written notice has been furnished to all insured
INVESTMENT COMPANIES and to the Securities and Exchange
Commission, Washington, D.C., by the COMPANY.
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ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 19 of 19
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FEDERAL INSURANCE COMPANY
Endorsement No.: 1
Bond Number: 80587029
NAME OF ASSURED: ASA BERMUDA LIMITED
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NEW YORK AMENDATORY ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding to Section 13, Termination, the following:
Bonds In Effect Sixty (60) Days Or Less
If this Bond has been in effect for less than sixty (60) days and if it is
not a renewal Bond, the COMPANY may terminate it for any reason by mailing
or delivering to the ASSURED and to the authorized agent or broker, if any,
written notice of termination at least sixty (60) days before the effective
date of termination.
Bonds In Effect More Than Sixty (60) Days
If this Bond has been in effect for sixty (60) days or more, or if it is a
renewal of a Bond issued by the COMPANY, it may be terminated by the
COMPANY by mailing or delivering to the ASSURED and to the authorized agent
or broker, if any, written notice of termination at least sixty (60) days
before the effective date of termination. Furthermore, when the Bond is a
renewal or has been in effect for sixty (60) days or more, the COMPANY may
terminate only for one or more of the reasons stated in 1-7 below.
1. Nonpayment of premium;
2. Conviction of a crime arising out of acts increasing the hazard
insured against;
3. Discovery of fraud or material misrepresentation in the obtaining of
this Bond or in the presentation of a claim thereunder;
4. Violation of any provision of this Bond that substantially and
materially increases the hazard insured against, and which occurred
subsequent to inception of the current BOND PERIOD;
5. If applicable, material physical change in the property insured,
occurring after issuance or last annual renewal anniversary date of
this Bond, which results in the property becoming uninsurable in
accordance with the COMPANY's objective, uniformly applied
underwriting standards in effect at the time this Bond was issued or
last renewed; or material change in the nature or extent of this Bond
occurring after issuance or last annual renewal anniversary date of
this Bond, which causes the risk of loss to be substantially and
materially increased beyond that contemplated at the time this Bond
was issued or last renewed;
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 1
6. A determination by the Superintendent of Insurance that continuation
of the present premium volume of the COMPANY would jeopardize the
COMPANY's policyholders, creditors or the public, or continuing the
Bond itself would place the COMPANY in violation of any provision of
the New York Insurance Code; or
7. Where the COMPANY has reason to believe, in good faith and with
sufficient cause, that there is a probable risk or danger that the
PROPERTY will be destroyed by the ASSURED for the purpose of
collecting the insurance proceeds.
Notice Of Termination
Notice of termination under this SECTION shall be mailed to the ASSURED and
to the authorized agent or broker, if any, at the address shown on the
DECLARATIONS of this Bond. The COMPANY, however, may deliver any notice
instead of mailing it.
Return Premium Calculations
The COMPANY shall refund the unearned premium computed pro rata if this
Bond is terminated by the COMPANY."
2. By adding a new Section reading as follows:
"Section 13. Election To Conditionally Renew / Nonrenew This Bond
Conditional Renewal
If the COMPANY conditionally renews this Bond subject to:
1. Change of limits of liability;
2. Change in type of coverage;
3. Reduction of coverage;
4. Increased deductible;
5. Addition of exclusion; or
6. Increased premiums in excess of 10%, exclusive of any premium increase
due to and commensurate with insured value added; or as a result of
experience rating, retrospective rating or audit; the COMPANY shall
send notice as provided in Notices Of Nonrenewal And Conditional
Renewal immediately below.
Notices Of Nonrenewal And Conditional Renewal
1. If the COMPANY elects not to renew this Bond, or to conditionally
renew this Bond as provided herein, the COMPANY shall mail or deliver
written notice to the ASSURED at least sixty (60) but not more than
one hundred twenty (120) days before:
a. The expiration date; or
b. The anniversary date if this Bond has been written for a term
of more than one year.
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 2
2. Notice shall be mailed or delivered to the ASSURED at the address
shown on the DECLARATIONS of this Bond and the authorized agent or
broker, if any. If notice is mailed, proof of mailing shall be
sufficient proof of notice.
3. Paragraphs 1. and 2. immediately above shall not apply when the
ASSURED, authorized agent or broker, or another insurer has mailed or
delivered written notice to the COMPANY that the Bond has been
replaced or is no longer desired.
3. By adding to General Agreement B., Representations Made By Assured, the
following:
No misrepresentation shall be deemed material unless knowledge by the
COMPANY would have lead to the COMPANY'S refusal to write this Bond.
This Endorsement applies to loss discovered after 12:01 a.m. on September 1,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
/s/ Robert Hamburger
Date: August 31, 2006 By __________________________________
Authorized Representative
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 3
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FEDERAL INSURANCE COMPANY
Endorsement No.: 2
Bond Number: 80587029
NAME OF ASSURED: ASA BERMUDA LIMITED
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DELETING VALUATION-OTHER PROPERTY ENDORSEMENT
It is agreed that this Bond is amended by deleting in its entirety the paragraph
titled Other Property in Section 9., Valuation.
This Endorsement applies to loss discovered after 12:01 a.m. on September 1,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
/s/ Robert Hamburger
Date: August 31, 2006 By __________________________________
Authorized Representative
ICAP Bond
Form 17-02-2437 (Ed. 1-01)
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Effective date of this
endorsement: September 1, 2006 FEDERAL INSURANCE COMPANY
Endorsement No: 3
Bond Number: 80587029
NAME OF ASSURED: ASA BERMUDA LIMITED
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COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER
It is agreed that this insurance does not apply to the extent that trade or
economic sanctions or other laws or regulations prohibit the coverage provided
by this insurance.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
/s/ Robert Hamburger
Date: August 31, 2006 By __________________________________
Authorized Representative
Form 14-02-9228 (Ed. 4/2004)
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FEDERAL INSURANCE COMPANY
Endorsement No: 4
Bond Number: 80587029
NAME OF ASSURED: ASA BERMUDA LIMITED
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TERMINATION-NONRENEWAL-NOTICE ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding to Section 13., Termination, the following:
"Termination By The Company
Bonds In Effect For More Than Sixty (60) Days
If this Bond has been in effect for more than sixty (60) days, or, if this
Bond is a renewal, the COMPANY may terminate by providing written notice of
cancellation at least sixty (60) days before the effective date of
termination for at least one of the following reasons:
1. Nonpayment of premium;
2. Discovery of fraud or material misrepresentation in obtaining this
Bond or in the presentation of a claim thereunder;
3. Discovery of willful or reckless acts or omissions or violation of any
provision of this Bond on the part of the ASSURED which substantially
and materially increases any hazard insured against, and which
occurred subsequent to the inception of the current BOND PERIOD;
4. Conviction of the ASSURED of a crime arising out of acts increasing
the hazard insured against;
5. Material change in the risk which increases the risk of loss after
insurance coverage has been issued or renewed, except to the extent
that the COMPANY should reasonably have foreseen the change, or
contemplated the risk when the contract was written;
6. Determination by the Commissioner that the continuation of the Bond
would jeopardize a COMPANY'S solvency or would place the COMPANY in
violation of the insurance laws of any state;
7. Determination by the Commissioner that continuation of the present
premium volume of the COMPANY would jeopardize the COMPANY'S
policyholders, creditors or the public;
8. Such other reasons that are approved by the Commissioner;
9. Determination by the Commissioner that the COMPANY no longer has
adequate reinsurance to meet the ASSURED'S needs;
10. Substantial breaches of contractual duties, conditions or warranties;
or
11. Unfavorable underwriting facts, specific to the ASSURED, existing that
were not present at the inception of the Bond.
ICAP Bond
Form 17-02-1360 (Rev. 10-99) Page 1
Bonds In Effect Sixty (60) Days Or Less
If this Bond has been in effect for sixty (60) days or less, and it is not a
renewal Bond, the COMPANY may terminate for any reason by providing written
notice of termination at least sixty (60) days before the effective date of
termination.
Notice Of Termination
Notice of termination under this Section shall be mailed or delivered, by
certified mail, return receipt provided by the United States Postal Service, to
the ASSURED and to the authorized agent or broker, if any, at least sixty (60)
days prior to the effective date of cancellation at the address shown on the
DECLARATIONS of this Bond.
If this Bond is cancelled for nonpayment of premium, the COMPANY will mail or
deliver, by certified mail, return receipt provided by the United States Postal
Service, a written notice at least thirty (30) days before the effective date of
cancellation. The cancellation notice shall contain information regarding the
amount of premium due and the due date, and shall state the effect of nonpayment
by the due date. Cancellation shall not be effective if payment of the amount
due is made prior to the effective date of cancellation.
All notice of cancellation shall state the reason(s) for cancellation.
There is no liability on the part of, and no cause of action of any nature shall
arise against, the COMPANY, its authorized representatives, its employees, or
any firm, person or corporation furnishing to the COMPANY, information relating
to the reasons for cancellation or nonrenewal, for any statement made by them in
complying or enabling the COMPANY to comply with this Section, for the provision
of information pertaining thereto, or for statements made or evidence submitted
at any hearings conducted in connection therewith, if such information was
provided in good faith and without malice.
Notice Of Nonrenewal
If the COMPANY elects not to renew this Bond, the COMPANY shall mail or deliver
written notice, by certified mail, return receipt, provided by the United States
Postal Service, to the ASSURED, at his last known address, at least sixty (60)
days before the expiration date or before the anniversary date, if this Bond has
been written for a term of more than one (1) year. Such notice shall also be
mailed to the ASSURED'S agent or broker, if any.
Such notice shall contain all of the following:
a. Bond Number:
b. Date of Notice;
c. Reason for Cancellation;
d. Expiration Date of the Bond;
e. Effective Date and Hour of Cancellation.
Notice of nonrenewal shall not be required if the COMPANY or a COMPANY within
the same insurance group has offered to issue a renewal Bond, the ASSURED has
obtained replacement coverage or has agreed in writing to obtain replacement
coverage, the ASSURED has requested or agreed to nonrenewal, or the Bond is
expressly designated as nonrenewable.
ICAP Bond
Form 17-02-1360 (Rev. 10-99) Page 2
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Return Premium Calculations
Any unearned premiums which have been paid by the ASSURED shall be refunded
to the ASSURED on a pro rata basis if terminated by the COMPANY or the
ASSURED. The unearned premiums shall be refunded to the ASSURED within
forty-five (45) days of receipt of the request for cancellation or the
effective date of cancellation, whichever is later.
Conditional Renewal
If the COMPANY offers or purports to renew the Bond, but on less favorable
terms or at higher rates, the new terms or higher premiums may take effect
on the renewal date, if the COMPANY mails or delivers by certified mail,
return receipt provided by the United States Postal Service, to the
ASSURED, notice of the new terms or premiums at least sixty (60) days prior
to the renewal date. If the COMPANY notifies the ASSURED within sixty (60)
days prior to the renewal date, the new terms or premiums do not take
effect until sixty (60) days after the notice is mailed or delivered, in
which case, the ASSURED may elect to cancel the renewal Bond within the
sixty (60) day period. If the COMPANY does not notify the ASSURED of the
new terms or premiums, the COMPANY shall continue the Bond at the expiring
terms and premiums until notice is given or until the effective date of
replacement coverage is obtained by the ASSURED, whichever occurs first."
2. It is further understood and agreed that for the purposes of Section 13.,
Termination, any occurrence listed in this Section shall be considered to
be a request by the ASSURED to immediately terminate this Bond.
This Endorsement applies to loss discovered after 12:01 a.m. on September 1,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
/s/ Robert Hamburger
Date: August 31, 2006 By __________________________________
Authorized Representative
ICAP Bond
Form 17-02-1360 (Rev. 10-99) Page 3
SECRETARY'S CERTIFICATE
The undersigned, in his capacity as Secretary of ASA (Bermuda) Limited
(the "Company"), hereby certifies that the following resolutions were duly
adopted at a duly called and constituted meeting of the Board of Directors of
the Company held on May 19, 2006 and that such resolutions are in full force and
effect on the date hereof and have not been altered, amended or repealed.
RESOLVED, that having considered all relevant factors, including, but
not limited to, the value of the assets of the Company to which an
officer or employee may have access, the type and terms of the
arrangement made for the custody and safekeeping of such assets and the
nature of the portfolio securities of the Company, the Directors,
including a majority of the Directors of the Company who are not
interested persons of the Company, have determined that Fidelity Bond
No. 80587029 ("Fidelity Bond") issued by the Chubb Group of Insurance
Companies that is currently in effect with respect to the Company in
the coverage amount of $1,000,000 is reasonable in form and amount; and
be it
FURTHER RESOLVED, that the Secretary be, and hereby is, directed and
authorized to make filings and give notices required by Rule 17g-1(g)
and (h) under the Investment Company Act of 1940.
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of
the 14th day of September 2006.
By: /s/ Paul K. Wustrack, Jr.
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Paul K. Wustrack, Jr.
Secretary