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Chubb Group of Insurance Companies
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DECLARATIONS
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FINANCIAL INSTITUTION INVESTMENT
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15 Mountain View Road, Warren, New Jersey 07059
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COMPANY ASSET PROTECTION BOND
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NAME OF ASSURED (including its Subsidiaries):
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Bond Number: 81952296
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TORTOISE CAPITAL RESOURCES CORPORATION
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FEDERAL INSURANCE COMPANY
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11550 ASH STREET, SUITE 300
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Incorporated under the laws of Indiana
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LEAWOOD, KS 66211
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a stock insurance company herein called the COMPANY
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Capital Center, 251 North Illinois, Suite 1100
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Indianapolis, IN 46204-1927
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ITEM 1.
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BOND PERIOD:
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from
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12:01 a.m. on
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February 25, 2011
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to
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12:01 a.m. on
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February 25, 2012
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ITEM 2.
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LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
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If “Not Covered” is inserted below opposite any specified INSURING CLAUSE, such INSURING CLAUSE
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and any other reference shall be deemed to be deleted. There shall be no deductible applicable to any
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loss under INSURING CLAUSE 1. sustained by any Investment Company.
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DEDUCTIBLE
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INSURING CLAUSE
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LIMIT OF LIABILITY
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AMOUNT
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1.
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Employee
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$ 525,000
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$ 10,000
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2.
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On Premises
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$ 525,000
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$ 10,000
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3.
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In Transit
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$ 525,000
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$ 10,000
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4.
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Forgery or Alteration
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$ 525,000
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$ 10,000
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5.
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Extended Forgery
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$ 525,000
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$ 10,000
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6.
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Counterfeit Money
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$ 525,000
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$ 10,000
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7.
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Threats to Person
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$ Not Covered
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$ N/A
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8.
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Computer System
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$ 525,000
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$ 10,000
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9.
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Voice Initiated Funds Transfer Instruction
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$ 525,000
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$ 10,000
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10.
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Uncollectible Items of Deposit
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$ 525,000
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$ 10,000
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11.
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Audit Expense
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$ 25,000
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$ 10,000
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ITEM 3.
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THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
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ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
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1-4
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IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not be
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valid unless also signed by an authorized representative of the Company.
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ICAP Bond (5-98) - Federal
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Form 17-02-1421 (Ed. 5-98)
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Page 1 of 1
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The COMPANY, in consideration of payment of the required premium, and in reliance
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on the APPLICATION and all other statements made and information furnished to the
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COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this
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Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED
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for:
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Insuring Clauses
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Employee
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1.
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Loss resulting directly from Larceny or Embezzlement committed by any
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Employee, alone or in collusion with others.
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On Premises
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2.
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Loss of Property resulting directly from robbery, burglary, false pretenses,
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common law or statutory larceny, misplacement, mysterious unexplainable
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disappearance, damage, destruction or removal, from the possession, custody or
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control of the ASSURED, while such Property is lodged or deposited at premises
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located anywhere.
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In Transit
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3.
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Loss of Property resulting directly from common law or statutory larceny,
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misplacement, mysterious unexplainable disappearance, damage or destruction,
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while the Property is in transit anywhere:
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a.
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in an armored motor vehicle, including loading and unloading thereof,
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b.
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in the custody of a natural person acting as a messenger of the ASSURED,
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or
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c.
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in the custody of a Transportation Company and being transported in a
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conveyance other than an armored motor vehicle provided, however, that
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covered Property transported in such manner is limited to the following:
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(1)
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written records,
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(2)
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securities issued in registered form, which are not endorsed or are
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restrictively endorsed, or
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(3)
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negotiable instruments not payable to bearer, which are not endorsed
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or are restrictively endorsed.
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Coverage under this INSURING CLAUSE begins immediately on the receipt of
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such Property by the natural person or Transportation Company and ends
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immediately on delivery to the premises of the addressee or to any representative
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of the addressee located anywhere.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 1 of 19
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Insuring Clauses
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(continued)
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Forgery Or Alteration
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4.
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Loss resulting directly from:
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a.
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Forgery on, or fraudulent material alteration of, any bills of exchange,
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checks, drafts, acceptances, certificates of deposits, promissory notes, due
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bills, money orders, orders upon public treasuries, letters of credit, other
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written promises, orders or directions to pay sums certain in money, or
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receipts for the withdrawal of Property, or
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b.
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transferring, paying or delivering any funds or other Property, or establishing
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any credit or giving any value in reliance on any written instructions, advices
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or applications directed to the ASSURED authorizing or acknowledging the
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transfer, payment, delivery or receipt of funds or other Property, which
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instructions, advices or applications fraudulently purport to bear the
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handwritten signature of any customer of the ASSURED, or shareholder or
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subscriber to shares of an Investment Company, or of any financial
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institution or Employee but which instructions, advices or applications either
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bear a Forgery or have been fraudulently materially altered without the
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knowledge and consent of such customer, shareholder, subscriber, financial
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institution or Employee;
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excluding, however, under this INSURING CLAUSE any loss covered under
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INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING
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CLAUSE 5. is provided for in the DECLARATIONS of this Bond.
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For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile
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signature is treated the same as a handwritten signature.
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Extended Forgery
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5.
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Loss resulting directly from the ASSURED having, in good faith, and in the
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ordinary course of business, for its own account or the account of others in any
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capacity:
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a.
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acquired, accepted or received, accepted or received, sold or delivered, or
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given value, extended credit or assumed liability, in reliance on any original
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Securities, documents or other written instruments which prove to:
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(1)
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bear a Forgery or a fraudulently material alteration,
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(2)
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have been lost or stolen, or
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(3)
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be Counterfeit, or
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b.
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guaranteed in writing or witnessed any signatures on any transfer,
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assignment, bill of sale, power of attorney, guarantee, endorsement or other
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obligation upon or in connection with any Securities, documents or other
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written instruments.
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Actual physical possession, and continued actual physical possession if taken as
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collateral, of such Securities, documents or other written instruments by an
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Employee, Custodian, or a Federal or State chartered deposit institution of the
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ASSURED is a condition precedent to the ASSURED having relied on such items.
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Release or return of such collateral is an acknowledgment by the ASSURED that it
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no longer relies on such collateral.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 2 of 19
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Insuring Clauses
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Extended Forgery
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For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile
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(continued)
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signature is treated the same as a handwritten signature.
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Counterfeit Money
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6.
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Loss resulting directly from the receipt by the ASSURED in good faith of any
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Counterfeit money.
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Threats To Person
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7.
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Loss resulting directly from surrender of Property away from an office of the
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ASSURED as a result of a threat communicated to the ASSURED to do bodily
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harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or
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invitee of such Employee, or a resident of the household of such Employee, who
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is, or allegedly is, being held captive provided, however, that prior to the surrender
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of such Property:
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a.
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the Employee who receives the threat has made a reasonable effort to
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notify an officer of the ASSURED who is not involved in such threat, and
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b.
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the ASSURED has made a reasonable effort to notify the Federal Bureau of
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Investigation and local law enforcement authorities concerning such threat.
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It is agreed that for purposes of this INSURING CLAUSE, any Employee of the
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ASSURED, as set forth in the preceding paragraph, shall be deemed to be an
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ASSURED hereunder, but only with respect to the surrender of money, securities
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and other tangible personal property in which such Employee has a legal or
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equitable interest.
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Computer System
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8.
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Loss resulting directly from fraudulent:
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a.
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entries of data into, or
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b.
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changes of data elements or programs within,
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a Computer System, provided the fraudulent entry or change causes:
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(1)
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funds or other property to be transferred, paid or delivered,
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(2)
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an account of the ASSURED or of its customer to be added, deleted,
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debited or credited, or
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(3)
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an unauthorized account or a fictitious account to be debited or
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credited.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 3 of 19
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Insuring Clauses
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(continued)
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Voice Initiated Funds
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9.
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Loss resulting directly from Voice Initiated Funds Transfer Instruction directed
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Transfer Instruction
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to the ASSURED authorizing the transfer of dividends or redemption proceeds of
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Investment Company shares from a Customer's account, provided such Voice
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Initiated Funds Transfer Instruction was:
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a.
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received at the ASSURED'S offices by those Employees of the ASSURED
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specifically authorized to receive the Voice Initiated Funds Transfer
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Instruction,
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b.
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made by a person purporting to be a Customer, and
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c.
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made by said person for the purpose of causing the ASSURED or Customer
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to sustain a loss or making an improper personal financial gain for such
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person or any other person.
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In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated
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Funds Transfer Instructions must be received and processed in accordance with
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the Designated Procedures outlined in the APPLICATION furnished to the
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COMPANY.
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Uncollectible Items of
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10.
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Loss resulting directly from the ASSURED having credited an account of a
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Deposit
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customer, shareholder or subscriber on the faith of any Items of Deposit which
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prove to be uncollectible, provided that the crediting of such account causes:
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a.
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redemptions or withdrawals to be permitted,
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b.
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shares to be issued, or
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c.
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dividends to be paid,
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from an account of an Investment Company.
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In order for coverage to apply under this INSURING CLAUSE, the ASSURED
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must hold Items of Deposit for the minimum number of days stated in the
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APPLICATION before permitting any redemptions or withdrawals, issuing any
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shares or paying any dividends with respect to such Items of Deposit.
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Items of Deposit shall not be deemed uncollectible until the ASSURED'S
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standard collection procedures have failed.
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Audit Expense
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11.
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Expense incurred by the ASSURED for that part of the cost of audits or
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examinations required by any governmental regulatory authority or self-regulatory
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organization to be conducted by such authority, organization or their appointee by
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reason of the discovery of loss sustained by the ASSURED and covered by this
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Bond.
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ICAP Bond (5-98)
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Form 17-02-1421 (Ed. 5-98)
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Page 4 of 19
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General Agreements
|
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Additional Companies
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A.
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If more than one corporation, or Investment Company, or any combination of
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Included As Assured
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them is included as the ASSURED herein:
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(1)
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The total liability of the COMPANY under this Bond for loss or losses
|
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sustained by any one or more or all of them shall not exceed the limit for
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which the COMPANY would be liable under this Bond if all such loss were
|
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sustained by any one of them.
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(2)
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Only the first named ASSURED shall be deemed to be the sole agent of the
|
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others for all purposes under this Bond, including but not limited to the giving
|
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or receiving of any notice or proof required to be given and for the purpose of
|
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effecting or accepting any amendments to or termination of this Bond. The
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COMPANY shall furnish each Investment Company with a copy of the
|
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Bond and with any amendment thereto, together with a copy of each formal
|
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filing of claim by any other named ASSURED and notification of the terms of
|
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the settlement of each such claim prior to the execution of such settlement.
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(3)
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The COMPANY shall not be responsible for the proper application of any
|
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payment made hereunder to the first named ASSURED.
|
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(4)
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Knowledge possessed or discovery made by any partner, director, trustee,
|
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officer or supervisory employee of any ASSURED shall constitute knowledge
|
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or discovery by all the ASSUREDS for the purposes of this Bond.
|
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(5)
|
If the first named ASSURED ceases for any reason to be covered under this
|
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Bond, then the ASSURED next named on the APPLICATION shall thereafter
|
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be considered as the first named ASSURED for the purposes of this Bond.
|
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Representation Made By
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B.
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The ASSURED represents that all information it has furnished in the
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Assured
|
APPLICATION for this Bond or otherwise is complete, true and correct. Such
|
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APPLICATION and other information constitute part of this Bond.
|
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The ASSURED must promptly notify the COMPANY of any change in any fact or
|
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circumstance which materially affects the risk assumed by the COMPANY under
|
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this Bond.
|
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Any intentional misrepresentation, omission, concealment or incorrect statement of
|
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a material fact, in the APPLICATION or otherwise, shall be grounds for recision of
|
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this Bond.
|
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|
ICAP Bond (5-98)
|
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Form 17-02-1421 (Ed. 5-98)
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Page 5 of 19
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General Agreements
|
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(continued)
|
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Additional Offices Or
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C.
|
If the ASSURED, other than an Investment Company, while this Bond is in force,
|
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Employees - Consolidation,
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merges or consolidates with, or purchases or acquires assets or liabilities of
|
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Merger Or Purchase Or
|
another institution, the ASSURED shall not have the coverage afforded under this
|
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Acquisition Of Assets Or
|
Bond for loss which has:
|
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Liabilities - Notice To
|
(1)
|
occurred or will occur on premises, or
|
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|
Company
|
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|
(2)
|
been caused or will be caused by an employee, or
|
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(3)
|
arisen or will arise out of the assets or liabilities,
|
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of such institution, unless the ASSURED:
|
|||
|
a.
|
gives the COMPANY written notice of the proposed consolidation, merger or
|
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|
purchase or acquisition of assets or liabilities prior to the proposed effective
|
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|
date of such action, and
|
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|
b.
|
obtains the written consent of the COMPANY to extend some or all of the
|
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|
coverage provided by this Bond to such additional exposure, and
|
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|
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 than in an Investment
|
|
|
Notice To Company
|
Company), as set forth in Section 2(a) (9) of the Investment Company Act of
|
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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
|
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|
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 and reasonable
|
|
|
Attorneys’ Fees
|
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
|
||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 6 of 19
|
|
General Agreements
|
||
|
Court Costs And
|
(3)
|
in the absence of 1 or 2 above, an arbitration panel agrees, after a review of
|
|
Attorneys’ Fees
|
an agreed statement of facts between the COMPANY and the ASSURED,
|
|
|
(continued)
|
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.
|
||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 7 of 19
|
|
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
|
||||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 8 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Definitions
|
(8)
|
each natural person, partnership or corporation authorized by written
|
|
|
(continued)
|
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.
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 9 of 19
|
|
Conditions And
|
||
|
Limitations
|
||
|
Definitions
|
f.
|
Forgery means the signing of the name of another natural person with the
|
|
(continued)
|
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.
|
||
|
l.
|
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.
|
||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 10 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Definitions
|
m.
|
Subsidiary means any organization that, at the inception date of this Bond,
|
|
|
(continued)
|
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 Exclusions -
|
2.
|
This bond does not directly or indirectly cover:
|
|
|
Applicable to All Insuring
|
a.
|
loss not reported to the COMPANY in writing within sixty (60) days after
|
|
|
Clauses
|
termination of this Bond as 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;
|
||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 11 of 19
|
|
Conditions And
|
|||||
|
Limitations
|
|||||
|
General Exclusions -
|
h.
|
loss resulting from dishonest acts by any member of the Board of Directors
|
|||
|
Applicable to All Insuring
|
or Board of Trustees of the ASSURED who is not an Employee, acting
|
||||
|
Clauses
|
alone or in collusion with others;
|
||||
|
(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.
|
|||||
|
Specific Exclusions -
|
3.
|
This Bond does not directly or indirectly cover:
|
|||
|
Applicable To All Insuring
|
a.
|
loss caused by an Employee, provided, however, this Section 3.a. shall not
|
|||
|
Clauses Except Insuring
|
apply to loss covered under INSURING CLAUSE 2. or 3. which results
|
||||
|
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;
|
||||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 12 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Specific Exclusions -
|
f.
|
loss resulting from the failure for any reason of a financial or depository
|
|
|
Applicable To All Insuring
|
institution, its receiver or other liquidator to pay or deliver funds or other
|
||
|
Clauses Except Insuring
|
Property to the ASSURED provided further that this Section 3.f. shall not
|
||
|
Clause 1.
|
apply to loss of Property resulting directly from robbery, burglary,
|
||
|
(continued)
|
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.
|
|||
|
Specific Exclusions -
|
4.
|
This bond does not directly or indirectly cover:
|
|
|
Applicable To All Insuring
|
a.
|
loss resulting from the complete or partial non-payment of or default on any
|
|
|
Clauses Except Insuring
|
loan whether such loan was procured in good faith or through trick, artifice,
|
||
|
Clauses 1., 4., And 5.
|
fraud or false pretenses; provided, 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 Liability/Non-
|
5.
|
At all times prior to termination of this Bond, this Bond shall continue in force for
|
|
|
Reduction And Non-
|
the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS,
|
||
|
Accumulation Of Liability
|
notwithstanding any previous loss for which the COMPANY 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
|
||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 13 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Limit Of Liability/Non-
|
d.
|
any one casualty or event other than those specified in a., b., or c. above,
|
|
|
Reduction And Non-
|
shall be deemed to be one loss and shall be limited to the applicable LIMIT OF
|
||
|
Accumulation Of Liability
|
LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of
|
||
|
(continued)
|
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.
|
|||
|
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.
|
|||
|
Notice To Company -
|
7.
|
a.
|
The ASSURED shall give the COMPANY notice thereof at the earliest
|
|
Proof - Legal Proceedings
|
practicable moment, not to exceed sixty (60) days after discovery of loss, in
|
||
|
Against Company
|
an amount that is in excess of 50% of the applicable 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.
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 14 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Notice To Company -
|
f.
|
Proof of loss involving Voice Initiated Funds Transfer Instruction shall
|
|
|
Proof - Legal Proceedings
|
include electronic recordings of such instructions.
|
||
|
Against Company
|
|||
|
(continued)
|
|||
|
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.
|
|||
|
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.
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 15 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
(continued)
|
|||
|
Securities Settlement
|
10.
|
In the event of a loss of securities covered under this 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.
|
|||
|
Subrogation - Assignment - 11.
|
In the event of a payment under this Bond, the COMPANY shall be subrogated to
|
||
|
Recovery
|
all of the ASSURED'S rights of 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
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 16 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Subrogation - Assignment -
|
d.
|
fourth, to the ASSURED in satisfaction of any loss suffered by the
|
|
|
Recovery
|
ASSURED which was not covered under this Bond.
|
||
|
(continued)
|
Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a
|
||
|
recovery under this section.
|
|||
|
Cooperation Of Assured
|
12.
|
At the COMPANY'S request and at reasonable times and 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.
|
|||
|
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.
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 17 of 19
|
|
Conditions And
|
|||
|
Limitations
|
|||
|
Termination
|
If any partner, director, trustee, or officer or supervisory employee of an
|
||
|
(continued)
|
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.
|
|||
|
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.
|
|||
|
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.
|
|||
|
Change or Modification
|
16.
|
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 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.
|
|||
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 18 of 19
|
|
Conditions And
|
|
|
Limitations
|
|
|
Change or Modification
|
If this Bond is for a joint ASSURED, no charge or modification which would
|
|
(continued)
|
adversely affect the rights of 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.
|
|
|
ICAP Bond (5-98)
|
|
|
Form 17-02-1421 (Ed. 5-98)
|
Page 19 of 19
|
|
TORTOISE CAPITAL RESOURCES CORPORATION
|
||
|
11550 ASH STREET, SUITE 300
|
||
|
LEAWOOD, KS
|
66211
|
|
|
Re: Financial Strength
|
||
|
Insuring Company: FEDERAL INSURANCE COMPANY
|
||
|
Dear
|
TORTOISE CAPITAL RESOURCES CORPORATION
|
|
|
Chubb continues to deliver strong financial performance. Our financial strength, as reflected in our published reports
|
||
|
and our ratings, should give you peace of mind that Chubb will be there for you when you need us most.
|
||
|
ƒ
|
Chubb’s financial results during 2010 stand out in the industry.
|
|
|
ƒ
|
Chubb’s balance sheet is backed with investments that we believe emphasize quality, safety, and liquidity,
|
|
|
with total invested assets of $43 billion as of September 30, 2010.
|
||
|
ƒ
|
With 128 years in the business, Chubb is here for the long term, which is why we vigorously guard our
|
|
|
financial strength and take what we believe is a prudent approach to assuming risk—on both the asset and
|
||
|
liability sides of our balance sheet.
|
||
|
ƒ
|
Chubb is one of the most highly rated property and casualty companies in the industry, which is a reflection
|
|
|
of our overall quality, strong financial condition, and strong capital position.
|
||
|
o
|
Chubb’s financial strength rating is “A++” from A.M. Best Company, “AA” from Fitch, “Aa2” from
|
|
|
Moody’s, and “AA” from Standard & Poor’s – the leading independent evaluators of the insurance
|
||
|
industry.
|
||
|
o
|
A.M. Best, Fitch, and Moody’s recently affirmed all of Chubb’s ratings with a “stable” outlook. (For
|
|
|
reference, A.M. Best reaffirmed us on 3/17/10, Fitch on 2/13/09, and Moody’s on 2/4/09.)
|
||
|
o
|
Forbes named Chubb one of the “100 Most Trustworthy Companies” in 2010, based on Chubb’s
|
|
|
“transparent and conservative accounting practices and prudent management.”
|
||
|
o
|
For more than 50 years, Chubb has remained part of an elite group of insurers that have
|
|
|
maintained A.M. Best’s highest ratings.
|
||
|
ƒ
|
Fitch ranked Chubb #1 for five- and 10-year financial performance in a 6/10/10 report.
|
|
|
ƒ
|
On the 2010 Fortune 500 list, Chubb ranks #176 in revenue, #85 in assets, #80 in 1999-2009 annual growth
|
|
|
rate, #64 in profits, and #39 in profit as a percentage of revenue.
|
||
|
ƒ
|
Chubb was named to Standard & Poor’s list of S&P 500 Dividend Aristocrats, one of 52 companies in the
|
|
|
S&P 500 index that have increased dividends every year for at least 25 consecutive years.
|
||
|
ƒ
|
Chubb’s investment portfolio has held up extremely well. Chubb takes what we believe is a conservative
|
|
|
approach to selecting and managing our assets. Furthermore, Chubb does not have any direct exposure to
|
||
|
the subprime mortgage-backed securities market, and we stopped doing new credit derivative business in
|
||
|
2003 and put existing business in runoff.
|
||
|
Rarely has Chubb’s business philosophy—to underwrite conservatively and invest judiciously—been more important
|
||
|
than it is today.
|
By adhering to this philosophy, we have the capacity and flexibility to respond to opportunities,
|
|
|
especially when you engage us in fully understanding your business risks.
|
||
|
We want you to know that Chubb is well-positioned to continue serving your needs with our underwriting expertise;
|
||
|
broad underwriting appetite across all property, casualty, and specialty lines; and claim services. If you have any
|
||
|
questions, feel free to call your agent or broker or your local Chubb underwriter. As always, we appreciate the trust
|
||
|
you place in us as your insurance partner.
|
||
|
POLICYHOLDER
|
|
DISCLOSURE NOTICE OF
|
|
TERRORISM INSURANCE COVERAGE
|
|
(for policies with no terrorism exclusion or sublimit)
|
|
You are hereby notified that, under the Terrorism Risk Insurance Act (the “Act”), effective
|
|
December 26, 2007, this policy makes available to you insurance for losses arising out of
|
|
certain acts of terrorism. Terrorism is defined as any act certified by the Secretary of the
|
|
Treasury, in concurrence with the Secretary of State and the Attorney General of the
|
|
United States, to be an act of terrorism; to be a violent act or an act that is dangerous to
|
|
human life, property or infrastructure; to have resulted in damage within the United
|
|
States, or outside the United States in the case of an air carrier or vessel or the premises
|
|
of a United States Mission; and to have been committed by an individual or individuals as
|
|
part of an effort to coerce the civilian population of the United States or to influence the
|
|
policy or affect the conduct of the United States Government by coercion.
|
|
You should know that the insurance provided by your policy for losses caused by acts of
|
|
terrorism is partially reimbursed by the United States under the formula set forth in the
|
|
Act. Under this formula, the United States pays 85% of covered terrorism losses that
|
|
exceed the statutorily established deductible to be paid by the insurance company
|
|
providing the coverage.
|
|
However, if aggregate insured losses attributable to terrorist acts certified under the Act
|
|
exceed $100 billion in a Program Year (January 1 through December 31), the Treasury
|
|
shall not make any payment for any portion of the amount of such losses that exceeds
|
|
$100 billion.
|
|
If aggregate insured losses attributable to terrorist acts certified under the Act exceed
|
|
$100 billion in a Program Year (January 1 through December 31) and we have met our
|
|
insurer deductible under the Act, we shall not be liable for the payment of any portion of
|
|
the amount of such losses that exceeds $100 billion, and in such case insured losses up
|
|
to that amount are subject to pro rata allocation in accordance with procedures
|
|
established by the Secretary of the Treasury.
|
|
The portion of your policy’s annual premium that is attributable to insurance for such acts
|
|
of terrorism is: $ -0-.
|
|
If you have any questions about this notice, please contact your agent or broker.
|
|
IMPORTANT NOTICE TO POLICYHOLDERS
|
|
All of the members of the Chubb Group of Insurance companies doing business in the United
|
|
States (hereinafter “Chubb”) distribute their products through licensed insurance brokers and agents
|
|
(“producers”). Detailed information regarding the types of compensation paid by Chubb to producers on
|
|
US insurance transactions is available under the Producer Compensation link located at the bottom of the
|
|
page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available from
|
|
your producer.
|
|
Thank you for choosing Chubb.
|
|
Important Notice:
|
|
The SEC Requires Proof of Your Fidelity Insurance Policy
|
|
Your company is now required to file an electronic copy of your fidelity insurance coverage
|
|
(Chubb’s ICAP Bond policy) to the Securities and Exchange Commission (SEC), according to
|
|
rules adopted by the SEC on June 12, 2006.
|
|
Chubb is in the process of providing your agent/broker with an electronic copy of your insurance
|
|
policy as well as instructions on how to submit this proof of fidelity insurance coverage to the
|
|
SEC. You can expect to receive this information from your agent/broker shortly.
|
|
The electronic copy of your policy is provided by Chubb solely as a convenience and does not
|
|
affect the terms and conditions of coverage as set forth in the paper policy you receive by mail.
|
|
The terms and conditions of the policy mailed to you, which are the same as those set forth in
|
|
the electronic copy, constitute the entire agreement between your company and Chubb.
|
|
If you have any questions, please contact your agent or broker.
|
|
ENDORSEMENT/RIDER
|
||
|
Effective date of
|
||
|
this endorsement/rider: February 25, 2011
|
FEDERAL INSURANCE COMPANY
|
|
|
Endorsement/Rider No.
|
1
|
|
|
To be attached to and
|
||
|
form a part of Bond No.
|
81952296
|
|
|
Issued to: TORTOISE CAPITAL RESOURCES CORPORATION
|
||
|
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS
|
||
|
It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other
|
||
|
similar laws or regulations prohibit the coverage provided by this insurance.
|
||
|
The title and any headings in this endorsement/rider are solely for convenience and form no part of the
|
||
|
terms and conditions of coverage.
|
||
|
All other terms, conditions and limitations of this Bond shall remain unchanged.
|
||
|
14-02-9228 (02/2010)
|
|
Page 1
|
|
FEDERAL INSURANCE COMPANY
|
|||
|
Endorsement No:
|
2
|
||
|
Bond Number:
|
81952296
|
||
|
NAME OF ASSURED: TORTOISE CAPITAL RESOURCES CORPORATION
|
|||
|
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;
|
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9.
|
Determination by the Commissioner that the COMPANY no longer has adequate reinsurance to
|
||
|
meet the ASSUREDS needs;
|
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|
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)
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Page 1
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|
Bonds In Effect Sixty (60) Days Or Less
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|
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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
|
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|
the effective date of termination.
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Notice Of Termination
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Notice of termination under this Section shall be mailed or delivered, by certified mail, return receipt
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|
|
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.
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|
|
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.
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All notice of cancellation shall state the reason(s) for cancellation.
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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
|
|
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 February 25, 2011.
|
|
|
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
|
|
ICAP Bond
|
|
|
Form 17-02-1360 (Rev. 10-99)
|
Page 3
|
|
FEDERAL INSURANCE COMPANY
|
|
|
Endorsement No.: 3
|
|
|
Bond Number:
|
81952296
|
|
NAME OF ASSURED: TORTOISE CAPITAL RESOURCES CORPORATION
|
|
|
KANSAS AMENDATORY ENDORSEMENT
|
|
|
It is agreed that this Bond is amended by deleting paragraph d in its entirety from Section 7., Notice-Proof-
|
|
|
Legal Proceedings Against Company, and substituting the following:
|
|
|
"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
|
|
|
five (5) years from the discovery of such loss."
|
|
|
This Endorsement applies to loss discovered after 12:01 a.m. on February 25, 2011.
|
|
|
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
|
|
|
ENDORSEMENT/RIDER
|
|||
|
Effective date of
|
|||
|
this endorsement/rider: February 25, 2011
|
FEDERAL INSURANCE COMPANY
|
||
|
Endorsement/Rider No.
|
4
|
||
|
To be attached to and
|
|||
|
form a part of Bond No.
|
81952296
|
||
|
Issued to: TORTOISE CAPITAL RESOURCES CORPORATION
|
|||
|
DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION
|
|||
|
ENDORSEMENT
|
|||
|
In consideration of the premium charged, it is agreed that this Bond is amended as follows:
|
|||
|
1.
|
The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety.
|
||
|
2.
|
The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced
|
||
|
with the following:
|
|||
|
If this Bond is for a joint 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 all insured Investment Companies and the Securities and Exchange Commission,
|
|||
|
Washington, D.C., by the COMPANY.
|
|||
|
The title and any headings in this endorsement/rider are solely for convenience and form no part of the
|
|||
|
terms and conditions of coverage.
|
|||
|
All other terms, conditions and limitations of this Bond shall remain unchanged.
|
|||
|
Page 1
|