October 4, 2012
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street N.W.
Washington, D.C. 20549
Re:
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Fidelity Bond Filing pursuant to Rule 17g-1(g)(1)
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Selected American Shares, Inc. (33 File No. 2-10699, 40 File No. 811-51)
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Selected International Fund, Inc. (33 File No. 2-27514, 40 File No. 811-1550)
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Selected Capital Preservation Trust (33 File No. 33-15807, 40 File No. 811-5240)
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Dear Sir or Madam:
In accordance with Rule
17g-1(g)(1) of the Investment Company Act of 1940, enclosed for filing on behalf of the registrants listed above (Registrants) is a copy of each of the following documents:
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1.
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The insurance binder for joint insured fidelity bond issued by ICI Mutual Insurance Company;
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2.
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The resolutions adopted by a majority of the Directors who are not interested persons of the Registrants approving the bond and the portion of the premiums
to be paid by the Registrants; and
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3.
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A copy of the executed Fidelity Bond Agreement among the Registrants.
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The Fidelity Bond offers $10 million in coverage. If each of the registrants covered by the Bond had not been named an insured under a joint insured bond, it would have provided and maintained a single
insured bond in the amount of:
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Fund
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Amount
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Davis New York Venture Fund, Inc.
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$
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2,500,000
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Davis Series, Inc.
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$
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1,500,000
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Davis Variable Account Fund, Inc.
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$
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750,000
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Selected American Shares, Inc.
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$
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2,500,000
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Selected International Fund, Inc.
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$
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400,000
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Selected Capital Preservation Trust
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$
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300,000
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Total for all covered registrants
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$
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7,950,000
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The premiums with respect to the joint insured bond have been paid through the period ending July 31, 2013.
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Sincerely,
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/s/ Thomas Tays
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Thomas Tays
Vice President
and Secretary
Selected Funds
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CERTIFICATION
I, Thomas Tays, hereby certify that I am the duly elected and acting Secretary of Selected American Shares, Inc. (a Maryland Corporation), Selected International Fund, Inc. (a Maryland Corporation) and
Selected Capital Preservation Trust (an Ohio Business Trust), referred to as a group herein as the Registrants, and that the following is a true, correct and complete copy of the resolutions adopted by a unanimous vote of the directors
of each of the Registrants (including those directors who are not interested persons of the Registrants, as that term is defined in the Investment Company Act of 1940) at a board meeting held on July 27, 2012:
WHEREAS,
Rule 17g-1 of the Investment Company Act of 1940 (the Act), requires that a fidelity bond, provided and
maintained by a management investment company under Section 17(g) of the Act, be in such reasonable form and amount as a majority of the Board of Directors of that fund who are not interested persons of such fund, as defined in
Section 2(a) (19), shall approve; and
WHEREAS,
Rule 17g-1 further requires that any premium for any joint insured
fidelity bond to be paid by a registered management company for its portion, thereof be approved by a majority of the Board of Directors who are not interested persons, taking into consideration all relevant factors; and
WHEREAS,
this meeting has considered the approval or disapproval of Joint Fidelity Bonds on behalf of Selected American Shares,
Inc., Selected International Fund, Inc., Selected Capital Preservation Trust (the preceding are referred to jointly as the Selected Funds); and Davis New York Venture Fund, Inc., Davis Series, Inc., Davis Variable Account Fund, Inc. (the
preceding are referred to jointly as the Davis Funds); and
WHEREAS,
a majority of the Directors of the
Selected Funds who are not interested persons of the Selected Funds or interested persons of any party to the transaction are present at the meeting; and
WHEREAS,
such Directors have received and evaluated such information as they reasonably believe necessary to evaluate all relevant terms and conditions of the proposed Joint Fidelity Bonds,
including its form, minimum amount, type, and coverage and premium allocations;
NOW, THEREFORE, BE IT RESOLVED,
that
the Joint Fidelity Bonds in substantially the form and amount discussed in this meeting (form and amount must meet the requirements of Rule 17g-1), are hereby approved for a period of one year from August 1, 2012; and
BE IT FURTHER RESOLVED,
that the Directors have determined that the benefits of obtaining a portion of the Joint Fidelity Bonds
from ICI Mutual, including the opportunity to obtain stable, low-cost insurance coverage from ICI Mutual, justify paying the Reserve Premium; and making the commitments for additional payments to ICI Mutual, including the acceptance of restrictions
upon the withdrawal of the Reserve Premium; and
BE IT FURTHER RESOLVED,
that the portion of the premium to be paid by
the Selected Funds for such Joint Fidelity Bonds is hereby approved, the allocation among the Funds to be consistent with past allocations and meet standards established by the SEC; and
BE IT FURTHER RESOLVED,
that each of the officers of the Selected Funds, be and hereby is designated pursuant to the requirement
of paragraph (h) of Rule 17g-1, to make the filings and give the notice required by paragraph (g) of that Rule.
IN
WITNESS WHEREOF, I have executed this certification effective 1st day of October 2012.
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/s/ Thomas Tays
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Thomas Tays, Secretary
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AGREEMENT REGARDING JOINT INSURED BOND
THIS AGREEMENT
is made the 1st day of August, 2000, among Davis New York Venture Fund, Inc., Davis Series, Inc., Davis
International Series, Inc., Davis Variable Account Fund, Inc., Selected American Shares, Inc., Selected Special Shares, Inc., and Selected Capital Preservation Trust (herein referred to collectively as the Funds) and Davis Selected
Advisers, L.P. (the Adviser). The Funds are investment companies registered under the Investment Company Act of 1940 (the Act). The Funds and the Adviser are sometimes referred to herein individually as an Insured
and collectively as the Insureds.
WITNESSETH:
WHEREAS
, the Funds and the Adviser are insured under an Investment Company Blanket Bond, No. 87006198B, issued by ICI Mutual
Insurance Company (the Bond) in order to comply with Rule 17g-1 under the Act with respect to the bonding of officers and employees of registered investment companies; and
WHEREAS
, the Boards of Directors and Trustees of each of the Funds have adopted resolutions authorizing joint fidelity bond
coverage among the Funds and the Adviser under the Bond and the Funds and the Adviser now desire to establish their respective rights under the Bond.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. In the event that any
recovery is received under the Bond as a result of a loss sustained by more than one Insured under the Bond, each Insured sustaining such loss shall receive an equitable and proportionate share of the recovery, but each Insureds recovery shall
at least equal the amount that such Insured would have received had it provided and maintained a single insured bond with the minimum coverage required by paragraph (d)(1) of Rule 17g-1. Any Insured which, under the terms of the Bond, is authorized
to make, adjust, receive and enforce payment of claims thereunder for any other Insured (a) agrees that it shall promptly make, adjust, receive and enforce payment of the other Insureds claims under the Bond upon notification by the other
Insured that such other Insured has a claim under the Bond, and (b) agrees that it shall remit any such payments in a manner that assures that each Insured shall receive its proper share of any joint payment under the Bond as set forth in this
Agreement.
2. This Agreement shall be binding upon and shall inure to the benefit of any successor of an Insured or any
entity into which any of the Insureds may be merged or with which any of the Insureds may be consolidated.
3. Each Insured
shall pay that proportion of each premium for the Bond that is approved by the directors or trustees of such Insured. In the event that any additional person or entity is named as an Insured under the Bond and becomes an Insured under this
Agreement, the portion of premiums paid by each Insured shall be reapportioned to take into account such new Insured.
4. If
the Bond limits are increased or any other modifications are made in the Bond at the direction of the Board of Directors or Board of Trustees of the Insureds which require the payment of an additional premium at any time other than as of the regular
premium date of the Bond, such increase shall be shared proportionately by the Insureds in the manner described above.
5. Any
investment company registered under the Act for which Davis Selected Advisers, L.P., or any company controlling, controlled by or with which Davis Selected Advisers, L.P., is under common control, shall act as manager, investment adviser or
principal underwriter, may hereafter join in this Agreement and be a party hereto upon:
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(i)
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being listed as a named Insured under the Bond, and
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(ii)
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executing and delivering a letter to the other named Insureds under the Bond agreeing to be a party to this Agreement.
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6. This Agreement shall take effect on August 1, 2000, and shall supersede and replace
the Agreement dated December 13, 1993, Regarding Joint Insured Bond among the Funds and all prior agreements regarding such bond.
7. This Agreement may be executed in one or more counterparts each of which shall be deemed to be an original and which collectively shall be deemed to be one document.
IN WITNESS WHEREOF
, the parties have caused this Agreement to be executed by their respective officers effective as of the date
first above written.
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DAVIS SELECTED ADVISERS, L.P.
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DAVIS NEW YORK VENTURE FUND, INC.
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By:
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By:
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Gary Tyc, Vice President
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Sharra Reed, Vice President
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Attest:
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Attest:
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By:
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By:
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Thomas Tays, Secretary
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Thomas Tays, Secretary
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DAVIS INTERNATIONAL SERIES, INC.
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DAVIS SERIES, INC.
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By:
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By:
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Sharra Reed, Vice President
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Sharra Reed, Vice President
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Attest:
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Attest:
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By:
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By:
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Thomas Tays, Secretary
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Thomas Tays, Secretary
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DAVIS VARIABLE ACCOUNT FUND, INC.
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SELECTED AMERICAN SHARES, INC.
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By:
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By:
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Sharra Reed, Vice President
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Sharra Reed, Vice President
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Attest:
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Attest:
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By:
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By:
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Thomas Tays, Secretary
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Thomas Tays, Secretary
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SELECTED SPECIAL SHARES, INC.
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SELECTED CAPITAL PRESERVATION TRUST
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By:
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By:
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Sharra Reed, Vice President
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Sharra Reed, Vice President
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Attest:
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By:
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By:
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Thomas Tays, Secretary
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Thomas Tays, Secretary
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AMENDMENT
OF
AGREEMENT REGARDING JOINT INSURED BOND
THIS AMENDMENT TO AGREEMENT REGARDING JOINT INSURED BOND
dated
1
st
of August 2000, is made the 1st day of August, 2007,
among Davis New York Venture Fund, Inc., Davis Series, Inc., Davis Variable Account Fund, Inc., Selected American Shares, Inc., Selected Special Shares, Inc., and Selected Capital Preservation Trust (herein referred to collectively as the
Funds).
WHEREAS
, the parties to the original Agreement have changed and the remaining parties want the original Agreement to
continue without change other than to remove Davis International Series, Inc. and Davis Selected Advisers, L.P.;
THEREFORE
the parties
to the original Agreement hereby agree to the continuation of the original Agreement without Davis International Series, Inc. or Davis Selected Advisers, L.P. being parties to the Agreement.
DAVIS NEW YORK VENTURE FUND, INC.
DAVIS SERIES, INC.
DAVIS VARIABLE ACCOUNT FUND, INC.
SELECTED AMERICAN SHARES, INC.
SELECTED SPECIAL SHARES, INC.
SELECTED CAPITAL PRESERVATION TRUST
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By:
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Thomas Tays, Vice President
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ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
1401 H St. NW
Washington, DC 20005
INVESTMENT COMPANY BLANKET BOND
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
1401 H St. NW
Washington, DC 20005
DECLARATIONS
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations
of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
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Item 1.
Name of Insured (the Insured)
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Bond Number:
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Davis New York Venture Fund, Inc.
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87006112B
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Principal Office:
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Mailing Address:
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2949 E. Elvira Road, Suite 101
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32 Old Slip
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Tucson, AZ 85756
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New York, NY 10005
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Item 2.
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Bond Period: from 12:01 a.m. on August 1, 2012, to 12:01 a.m. on August 1, 2013, or the earlier effective date of the termination of this Bond,
standard time at the Principal Office as to each of said dates.
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Item 3.
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Limit of Liability
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Subject to Sections 9, 10 and 12 hereof:
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LIMIT OF
LIABILITY
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DEDUCTIBLE
AMOUNT
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Insuring Agreement A FIDELITY
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$
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10,000,000
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N/A
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Insuring Agreement B AUDIT EXPENSE
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$
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50,000
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$
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10,000
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Insuring Agreement C ON PREMISES
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$
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10,000,000
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$
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100,000
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Insuring Agreement D IN TRANSIT
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$
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10,000,000
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$
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100,000
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Insuring Agreement E FORGERY OR ALTERATION
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$
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10,000,000
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$
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100,000
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Insuring Agreement F SECURITIES
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$
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10,000,000
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$
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100,000
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Insuring Agreement G COUNTERFEIT CURRENCY
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$
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10,000,000
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$
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100,000
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Insuring Agreement H UNCOLLECTIBLE ITEMS OF DEPOSIT
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$
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25,000
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$
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5,000
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Insuring Agreement I PHONE/ELECTRONIC TRANSACTIONS
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$
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10,000,000
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$
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100,000
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If Not Covered is inserted opposite any Insuring Agreement above, such Insuring Agreement and any reference thereto shall be deemed to be deleted from this
Bond.
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OPTIONAL INSURING AGREEMENTS ADDED BY RIDER:
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Insuring Agreement J COMPUTER SECURITY
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$
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10,000,000
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$
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100,000
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Item 4.
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Offices or Premises CoveredAll the Insureds offices or other premises in existence at the time this Bond becomes effective are covered under this
Bond, except the offices or other premises excluded by Rider. Offices or other premises acquired or established after the effective date of this Bond are covered subject to the terms of General Agreement A.
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Item 5.
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The liability of ICI Mutual Insurance Company, a Risk Retention Group (the Underwriter) is subject to the terms of the following Riders attached hereto:
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Riders: 1-2-3-4-5-6-7-8-9-10
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and of all Riders applicable to this Bond issued during the Bond Period.
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By:
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_/S/ Matthew Link
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Authorized Representative
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Bond (03/12)
2
INVESTMENT COMPANY BLANKET BOND
NOTICE
This policy is issued
by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
ICI Mutual Insurance Company, a Risk Retention Group (the Underwriter), in consideration of an agreed premium, and in reliance upon the
Application and all other information furnished to the Underwriter by the Insured, and subject to and in accordance with the Declarations, General Agreements, Provisions, Conditions and Limitations and other terms of this bond (including all riders
hereto) (Bond), to the extent of the Limit of Liability and subject to the Deductible Amount, agrees to indemnify the Insured for the loss, as described in the Insuring Agreements, sustained by the Insured at any time but discovered
during the Bond Period.
INSURING AGREEMENTS
Loss caused by
any Dishonest or Fraudulent Act or Theft committed by an Employee anywhere, alone or in collusion with other persons (whether or not Employees), during the time such Employee has the status of an Employee as defined herein, and even if such loss is
not discovered until after he or she ceases to be an Employee, EXCLUDING loss covered under Insuring Agreement B.
Expense
incurred by the Insured for that part of audits or examinations required by any governmental regulatory authority or Self Regulatory Organization to be conducted by such authority or Organization or by an independent accountant or other person, by
reason of the discovery of loss sustained by the Insured and covered by this Bond.
Loss
resulting from Property that is (1) located or reasonably believed by the Insured to be located within the Insureds offices or premises, and (2) the object of Theft, Dishonest or Fraudulent Act, or Mysterious Disappearance, EXCLUDING
loss covered under Insuring Agreement A.
Loss
resulting from Property that is (1) in transit in the custody of any person authorized by an Insured to act as a messenger, except while in the mail or with a carrier for hire (other than a Security Company), and (2) the object of Theft,
Dishonest or Fraudulent Act, or Mysterious Disappearance, EXCLUDING loss covered under Insuring Agreement A. Property is in transit beginning immediately upon receipt of such Property by the transporting person and ending immediately
upon delivery at the specified destination.
3
Loss caused by the Forgery or Alteration of or on (1) any bills of exchange, checks, drafts, or other written orders or directions to
pay certain sums in money, acceptances, certificates of deposit, due bills, money orders, or letters of credit; or (2) other written instructions, requests or applications to the Insured, authorizing or acknowledging the transfer, payment,
redemption, delivery or receipt of Property, or giving notice of any bank account, which instructions or requests or applications purport to have been signed or endorsed by (a) any customer of the Insured, or (b) any shareholder of or
subscriber to shares issued by any Investment Company, or (c) any financial or banking institution or stockbroker; or (3) withdrawal orders or receipts for the withdrawal of Property, or receipts or certificates of deposit for Property and
bearing the name of the Insured as issuer or of another Investment Company for which the Insured acts as agent. This Insuring Agreement E does not cover loss caused by Forgery or Alteration of Securities or loss covered under Insuring Agreement A.
Loss
resulting from the Insured, in good faith, in the ordinary course of business, and in any capacity whatsoever, whether for its own account or for the account of others, having acquired, accepted or received, or sold or delivered, or given any value,
extended any credit or assumed any liability on the faith of any Securities, where such loss results from the fact that such Securities (1) were Counterfeit, or (2) were lost or stolen, or (3) contain a Forgery or Alteration, and
notwithstanding whether or not the act of the Insured causing such loss violated the constitution, by-laws, rules or regulations of any Self Regulatory Organization, whether or not the Insured was a member thereof, EXCLUDING loss covered under
Insuring Agreement A.
Loss caused by the Insured in good faith having received or accepted (1) any money orders which prove to be Counterfeit or to contain
an Alteration or (2) paper currencies or coin of the United States of America or Canada which prove to be Counterfeit. This Insuring Agreement G does not cover loss covered under Insuring Agreement A.
H.
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UNCOLLECTIBLE ITEMS OF DEPOSIT
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Loss resulting from the payment of dividends, issuance of Fund shares or redemptions or exchanges permitted from an account with the Fund as a consequence of
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(1)
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uncollectible Items of Deposit of a Funds customer, shareholder or subscriber credited by the Insured or its agent to such persons Fund account, or
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(2)
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any Item of Deposit processed through an automated clearing house which is reversed by a Funds customer, shareholder or subscriber and is deemed uncollectible by
the Insured;
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PROVIDED, that (a) Items of Deposit shall not be deemed uncollectible until the
Insureds collection procedures have failed, (b) exchanges of shares between Funds with exchange privileges shall be covered hereunder only if all such Funds are insured by the Underwriter for uncollectible Items of Deposit, and
(c) the Insured Fund shall have implemented and maintained a policy to hold Items of Deposit for the minimum number of days stated in its Application (as amended from time to time) before paying any dividend or permitting any withdrawal with
respect to such Items of Deposit (other than exchanges between Funds). Regardless of the number of transactions between Funds in an exchange program, the minimum number of days an Item of Deposit must be held shall begin from the date the Item of
Deposit was first credited to any Insured Fund.
This Insuring Agreement H does not cover loss covered under Insuring
Agreement A.
4
I.
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PHONE/ELECTRONIC TRANSACTIONS
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Loss caused by a Phone/Electronic Transaction, where the request for such Phone/Electronic Transaction:
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(1)
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is transmitted to the Insured or its agents by voice over the telephone or by Electronic Transmission; and
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(2)
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is made by an individual purporting to be a Fund shareholder or subscriber or an authorized agent of a Fund shareholder or subscriber; and
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(3)
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is unauthorized or fraudulent and is made with the manifest intent to deceive;
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PROVIDED, that the entity receiving such request generally maintains and follows during the Bond Period all Phone/Electronic Transaction Security Procedures with respect to all Phone/Electronic
Transactions; and
EXCLUDING loss resulting from:
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(1)
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the failure to pay for shares attempted to be purchased; or
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(2)
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any redemption of Investment Company shares which had been improperly credited to a shareholders account where such shareholder (a) did not cause, directly
or indirectly, such shares to be credited to such account, and (b) directly or indirectly received any proceeds or other benefit from such redemption; or
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(3)
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any redemption of shares issued by an Investment Company where the proceeds of such redemption were requested to be paid or made payable to other than (a) the
Shareholder of Record, or (b) any other person or bank account designated to receive redemption proceeds (i) in the initial account application, or (ii) in writing (not to include Electronic Transmission) accompanied by a signature
guarantee; or
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(4)
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any redemption of shares issued by an Investment Company where the proceeds of such redemption were requested to be sent to other than any address for such account
which was designated (a) in the initial account application, or (b) in writing (not to include Electronic Transmission), where such writing is received at least one (1) day prior to such redemption request, or (c) by voice over
the telephone or by Electronic Transmission at least fifteen (15) days prior to such redemption; or
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(5)
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the intentional failure to adhere to one or more Phone/Electronic Transaction Security Procedures; or
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(6)
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a Phone/Electronic Transaction request transmitted by electronic mail or transmitted by any method not subject to the Phone/Electronic Transaction Security Procedures;
or
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(7)
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the failure or circumvention of any physical or electronic protection device, including any firewall, that imposes restrictions on the flow of electronic traffic in or
out of any Computer System.
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This Insuring Agreement I does not cover loss covered under Insuring Agreement A,
Fidelity or Insuring Agreement J, Computer Security.
5
GENERAL AGREEMENTS
A.
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ADDITIONAL OFFICES OR EMPLOYEESCONSOLIDATION OR MERGERNOTICE
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1.
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Except as provided in paragraph 2 below, this Bond shall apply to any additional office(s) established by the Insured during the Bond Period and to all Employees during
the Bond Period, without the need to give notice thereof or pay additional premiums to the Underwriter for the Bond Period.
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2.
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If during the Bond Period an Insured Investment Company shall merge or consolidate with an institution in which such Insured is the surviving entity, or purchase
substantially all the assets or capital stock of another institution, or acquire or create a separate investment portfolio, and shall within sixty (60) days notify the Underwriter thereof, then this Bond shall automatically apply to the
Property and Employees resulting from such merger, consolidation, acquisition or creation from the date thereof; provided, that the Underwriter may make such coverage contingent upon the payment of an additional premium.
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No statement
made by or on behalf of the Insured, whether contained in the Application or otherwise, shall be deemed to be an absolute warranty, but only a warranty that such statement is true to the best of the knowledge of the person responsible for such
statement.
C.
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COURT COSTS AND ATTORNEYS FEES
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The Underwriter will indemnify the Insured against court costs and reasonable attorneys fees incurred and paid by the Insured in defense of any legal proceeding brought against the Insured seeking
recovery for any loss which, if established against the Insured, would constitute a loss covered under the terms of this Bond; provided, however, that with respect to Insuring Agreement A this indemnity shall apply only in the event that
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1.
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an Employee admits to having committed or is adjudicated to have committed a Dishonest or Fraudulent Act or Theft which caused the loss; or
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2.
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in the absence of such an admission or adjudication, an arbitrator or arbitrators acceptable to the Insured and the Underwriter concludes, after a review of an agreed
statement of facts, that an Employee has committed a Dishonest or Fraudulent Act or Theft which caused the loss.
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The Insured shall promptly give notice to the Underwriter of any such legal proceeding and upon request shall furnish the Underwriter
with copies of all pleadings and other papers therein. At the Underwriters election the Insured shall permit the Underwriter to conduct the defense of such legal proceeding in the Insureds name, through attorneys of the
Underwriters selection. In such event, the Insured shall give all reasonable information and assistance which the Underwriter shall deem necessary to the proper defense of such legal proceeding.
If the amount of the Insureds liability or alleged liability in any such legal proceeding is greater than the amount which the
Insured would be entitled to recover under this Bond (other than pursuant to this General Agreement C), or if a Deductible Amount is applicable, or both, the indemnity liability of the
6
Underwriter under this General Agreement C is limited to the proportion of court costs and
attorneys fees incurred and paid by the Insured or by the Underwriter that the amount which the Insured would be entitled to recover under this Bond (other than pursuant to this General Agreement C) bears to the sum of such amount plus the
amount which the Insured is not entitled to recover. Such indemnity shall be in addition to the Limit of Liability for the applicable Insuring Agreement.
This Bond
shall be interpreted with due regard to the purpose of fidelity bonding under Rule 17g-1 of the Investment Company Act of 1940 (i.e., to protect innocent third parties from harm) and to the structure of the investment management industry (in which a
loss of Property resulting from a cause described in any Insuring Agreement ordinarily gives rise to a potential legal liability on the part of the Insured), such that the term loss as used herein shall include an Insureds legal
liability for direct compensatory damages resulting directly from a misappropriation, or measurable diminution in value, of Property.
THIS BOND, INCLUDING THE FOREGOING INSURING AGREEMENTS
AND GENERAL
AGREEMENTS, IS SUBJECT TO THE FOLLOWING
PROVISIONS, CONDITIONS AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following
terms used in this Bond shall have the meanings stated in this Section:
A.
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Alteration
means the marking, changing or altering in a material way of the terms, meaning or legal effect of a document with the intent to deceive.
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B.
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Application
means the Insureds application (and any attachments and materials submitted in connection therewith) furnished to the Underwriter
for this Bond.
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C.
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Computer System
means (1) computers with related peripheral components, including storage components, (2) systems and applications
software, (3) terminal devices, (4) related communications networks or customer communication systems, and (5) related electronic funds transfer systems; by which data or monies are electronically collected, transmitted, processed,
stored or retrieved.
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D.
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Counterfeit
means, with respect to any item, one which is false but is intended to deceive and to be taken for the original authentic item.
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E.
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Deductible Amount
means, with respect to any Insuring Agreement, the amount set forth under the heading Deductible Amount in Item 3
of the Declarations or in any Rider for such Insuring Agreement, applicable to each Single Loss covered by such Insuring Agreement.
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F.
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Depository
means any securities depository (other than any foreign securities depository) in which an Investment Company may deposit its
Securities in accordance with Rule 17f-4 under the Investment Company Act of 1940.
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G.
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Dishonest or Fraudulent Act
means any dishonest or fraudulent act, including larceny and embezzlement as defined in Section 37 of
the Investment Company Act of 1940, committed with the conscious manifest intent (1) to cause the Insured to sustain a loss and (2) to obtain financial benefit for the perpetrator or any other person (other than salaries, commissions,
fees, bonuses, awards, profit sharing, pensions or other employee benefits). A Dishonest or Fraudulent Act does not mean or include a reckless act, a negligent act, or a grossly negligent act.
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7
H.
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Electronic Transmission
means any transmission effected by electronic means, including but not limited to a transmission effected by telephone tones,
Telefacsimile, wireless device, or over the Internet.
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(1)
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each officer, director, trustee, partner or employee of the Insured, and
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(2)
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each officer, director, trustee, partner or employee of any predecessor of the Insured whose principal assets are acquired by the Insured by consolidation or merger
with, or purchase of assets or capital stock of, such predecessor, and
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(3)
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each attorney performing legal services for the Insured and each employee of such attorney or of the law firm of such attorney while performing services for the
Insured, and
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(4)
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each student who is an authorized intern of the Insured, while in any of the Insureds offices, and
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(5)
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each officer, director, trustee, partner or employee of
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(a)
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an investment adviser,
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(b)
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an underwriter (distributor),
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(c)
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a transfer agent or shareholder accounting recordkeeper, or
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(d)
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an administrator authorized by written agreement to keep financial and/or other required records, for an Investment Company named as an Insured, BUT ONLY while
(i) such officer, partner or employee is performing acts coming within the scope of the usual duties of an officer or employee of an Insured, or (ii) such officer, director, trustee, partner or employee is acting as a member of any
committee duly elected or appointed to examine or audit or have custody of or access to the Property of the Insured, or (iii) such director or trustee (or anyone acting in a similar capacity) is acting outside the scope of the usual duties of a
director or trustee;PROVIDED, that the term Employee shall not include any officer, director, trustee, partner or employee of a transfer agent, shareholder accounting recordkeeper or administrator (x) which is not an
affiliated person (as defined in Section 2(a) of the Investment Company Act of 1940) of an Investment Company named as Insured or of the adviser or underwriter of such Investment Company, or (y) which is a Bank (as
defined in Section 2(a) of the Investment Company Act of 1940), and
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(6)
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each individual assigned, by contract or by any agency furnishing temporary personnel, in either case on a contingent or part-time basis, to perform the usual duties of
an employee in any office of the Insured, and
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(7)
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each individual assigned to perform the usual duties of an employee or officer of any entity authorized by written agreement with the Insured to perform services as
electronic data processor of checks or other accounting records of the Insured, but excluding a processor which acts as transfer agent or in any other agency capacity for the Insured in issuing checks, drafts or securities, unless included under
subsection (5) hereof, and
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(8)
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each officer, partner or employee of
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(a)
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any Depository or Exchange,
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(b)
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any nominee in whose name is registered any Security included in the systems for the central handling of securities established and maintained by any Depository, and
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(c)
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any recognized service company which provides clerks or other personnel to any Depository or Exchange on a contract basis, while such officer, partner or employee is
performing services for any Depository in the operation of systems for the central handling of securities, and
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(9)
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in the case of an Insured which is an employee benefit plan (as defined in Section 3 of the Employee Retirement Income Security Act of 1974
(ERISA)) for officers, directors or employees of another Insured (In-House Plan), any fiduciary or other plan official (within the meaning of Section 412 of ERISA) of such In-House Plan, provided
that such fiduciary or other plan official is a director, partner, officer, trustee or employee of an Insured (other than an In-House Plan).
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Each employer of temporary personnel and each entity referred to in subsections (6) and (7) and their respective partners, officers and employees shall collectively be deemed to be one person
for all the purposes of this Bond.
8
Brokers, agents, independent contractors, or representatives of the same general
character shall not be considered Employees, except as provided in subsections (3), (6), and (7).
J.
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Exchange
means any national securities exchange registered under the Securities Exchange Act of 1934.
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K.
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Forgery
means the physical signing on a document of the name of another person (whether real or fictitious) with the intent to deceive. A Forgery may
be by means of mechanically reproduced facsimile signatures as well as handwritten signatures. Forgery does not include the signing of an individuals own name, regardless of such individuals authority, capacity or purpose.
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L.
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Items of Deposit
means one or more checks or drafts.
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M.
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Investment Company
or
Fund
means an investment company registered under the Investment Company Act of 1940.
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N.
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Limit of Liability
means, with respect to any Insuring Agreement, the limit of liability of the Underwriter for any Single Loss covered by such
Insuring Agreement as set forth under the heading Limit of Liability in Item 3 of the Declarations or in any Rider for such Insuring Agreement.
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O.
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Mysterious Disappearance
means any disappearance of Property which, after a reasonable investigation has been conducted, cannot be explained.
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P.
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Non-Fund
means any corporation, business trust, partnership, trust or other entity which is not an Investment Company.
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Q.
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Phone/Electronic Transaction Security Procedures
means security procedures for Phone/ Electronic Transactions as provided in writing to the
Underwriter.
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R.
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Phone/Electronic Transaction
means any (1) redemption of shares issued by an Investment Company, (2) election concerning dividend options
available to Fund shareholders, (3) exchange of shares in a registered account of one Fund into shares in an identically registered account of another Fund in the same complex pursuant to exchange privileges of the two Funds, or
(4) purchase of shares issued by an Investment Company, which redemption, election, exchange or purchase is requested by voice over the telephone or through an Electronic Transmission.
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S.
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Property
means the following tangible items: money, postage and revenue stamps, precious metals, Securities, bills of exchange, acceptances, checks,
drafts, or other written orders or directions to pay sums certain in money, certificates of deposit, due bills, money orders, letters of credit, financial futures contracts, conditional sales contracts, abstracts of title, insurance policies, deeds,
mortgages, and assignments of any of the foregoing, and other valuable papers, including books of account and other records used by the Insured in the conduct of its business, and all other instruments similar to or in the nature of the foregoing
(but excluding all data processing records), (1) in which the Insured has a legally cognizable interest, (2) in which the Insured acquired or should have acquired such an interest by reason of a predecessors declared financial
condition at the time of the Insureds consolidation or merger with, or purchase of the principal assets of, such predecessor or (3) which are held by the Insured for any purpose or in any capacity.
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T.
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Securities
means original negotiable or non-negotiable agreements or instruments which represent an equitable or legal interest, ownership or debt
(including stock certificates, bonds, promissory notes, and assignments thereof), which are in the ordinary course of business and transferable by physical delivery with appropriate endorsement or assignment. Securities does not include
bills of exchange, acceptances, certificates of deposit, checks, drafts, or other written orders or directions to pay sums certain in money, due bills, money orders, or letters of credit.
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9
U.
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Security Company
means an entity which provides or purports to provide the transport of Property by secure means, including, without limitation, by
use of armored vehicles or guards.
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V.
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Self Regulatory Organization
means any association of investment advisers or securities dealers registered under the federal securities laws, or any
Exchange.
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W.
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Shareholder of Record
means the record owner of shares issued by an Investment Company or, in the case of joint ownership of such shares, all record
owners, as designated (1) in the initial account application, or (2) in writing accompanied by a signature guarantee, or (3) pursuant to procedures as set forth in the Application.
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(1)
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all loss resulting from any one actual or attempted Theft committed by one person, or
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(2)
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all loss caused by any one act (other than a Theft or a Dishonest or Fraudulent Act) committed by one person, or
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(3)
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all loss caused by Dishonest or Fraudulent Acts committed by one person, or
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(4)
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all expenses incurred with respect to any one audit or examination, or
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(5)
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all loss caused by any one occurrence or event other than those specified in subsections (1) through (4) above.
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All acts or omissions of one or more persons which directly or indirectly aid or, by failure to report or otherwise, permit the
continuation of an act referred to in subsections (1) through (3) above of any other person shall be deemed to be the acts of such other person for purposes of this subsection.
All acts or occurrences or events which have as a common nexus any fact, circumstance, situation, transaction or series of facts,
circumstances, situations, or transactions shall be deemed to be one act, one occurrence, or one event.
Y.
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Telefacsimile
means a system of transmitting and reproducing fixed graphic material (as, for example, printing) by means of signals transmitted over
telephone lines or over the Internet.
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Z.
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Theft
means robbery, burglary or hold-up, occurring with or without violence or the threat of violence.
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SECTION 2. EXCLUSIONS
THIS BOND DOES
NOT COVER:
A.
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Loss resulting from (1) riot or civil commotion outside the United States of America and Canada, or (2) war, revolution, insurrection, action by armed forces,
or usurped power, wherever occurring; except if such loss occurs while the Property is in transit, is otherwise covered under Insuring Agreement D, and when such transit was initiated, the Insured or any person initiating such transit on the
Insureds behalf had no knowledge of such riot, civil commotion, war, revolution, insurrection, action by armed forces, or usurped power.
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B.
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Loss in time of peace or war resulting from nuclear fission or fusion or radioactivity, or biological or chemical agents or hazards, or fire, smoke, or explosion, or
the effects of any of the foregoing.
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C.
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Loss resulting from any Dishonest or Fraudulent Act committed by any person while acting in the capacity of a member of the Board of Directors or any equivalent body of
the Insured or of any other entity.
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D.
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Loss resulting from any nonpayment or other default of any loan or similar transaction made by the Insured or any of its partners, directors, officers or employees,
whether or not authorized and whether procured in good faith or through a Dishonest or Fraudulent Act, unless such loss is otherwise covered under Insuring Agreement A, E or F.
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10
E.
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Loss resulting from any violation by the Insured or by any Employee of any law, or any rule or regulation pursuant thereto or adopted by a Self Regulatory Organization,
regulating the issuance, purchase or sale of securities, securities transactions upon security exchanges or over the counter markets, Investment Companies, or investment advisers, unless such loss, in the absence of such law, rule or regulation,
would be covered under Insuring Agreement A, E or F.
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F.
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Loss resulting from Property that is the object of Theft, Dishonest or Fraudulent Act, or Mysterious Disappearance while in the custody of any Security Company, unless
such loss is covered under this Bond and is in excess of the amount recovered or received by the Insured under (1) the Insureds contract with such Security Company, and (2) insurance or indemnity of any kind carried by such Security
Company for the benefit of, or otherwise available to, users of its service, in which case this Bond shall cover only such excess, subject to the applicable Limit of Liability and Deductible Amount.
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G.
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Potential income, including but not limited to interest and dividends, not realized by the Insured because of a loss covered under this Bond, except when covered under
Insuring Agreement H.
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H.
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Loss in the form of (1) damages of any type for which the Insured is legally liable, except direct compensatory damages, or (2) taxes, fines, or penalties,
including without limitation two-thirds of treble damage awards pursuant to judgments under any statute or regulation.
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I.
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Loss resulting from the surrender of Property away from an office of the Insured as a result of a threat
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(1)
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to do bodily harm to any person, except where the Property is in transit in the custody of any person acting as messenger as a result of a threat to do bodily harm to
such person, if the Insured had no knowledge of such threat at the time such transit was initiated, or
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(2)
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to do damage to the premises or Property of the Insured, unless such loss is otherwise covered under Insuring Agreement A.
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J.
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All costs, fees and other expenses incurred by the Insured in establishing the existence of or amount of loss covered under this Bond, except to the extent certain
audit expenses are covered under Insuring Agreement B.
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K.
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Loss resulting from payments made to or withdrawals from any account, involving funds erroneously credited to such account, unless such loss is otherwise covered under
Insuring Agreement A.
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L.
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Loss resulting from uncollectible Items of Deposit which are drawn upon a financial institution outside the United States of America, its territories and possessions,
or Canada.
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M.
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Loss resulting from the Dishonest or Fraudulent Acts, Theft, or other acts or omissions of an Employee primarily engaged in the sale of shares issued by an Investment
Company to persons other than (1) a person registered as a broker under the Securities Exchange Act of 1934 or (2) an accredited investor as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, which is not
an individual.
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N.
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Loss resulting from the use of credit, debit, charge, access, convenience, identification, cash management or other cards, whether such cards were issued or purport to
have been issued by the Insured or by anyone else, unless such loss is otherwise covered under Insuring Agreement A.
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11
O.
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Loss resulting from any purchase, redemption or exchange of securities issued by an Investment Company or other Insured, or any other instruction, request,
acknowledgement, notice or transaction involving securities issued by an Investment Company or other Insured or the dividends in respect thereof, when any of the foregoing is requested, authorized or directed or purported to be requested, authorized
or directed by voice over the telephone or by Electronic Transmission, unless such loss is otherwise covered under Insuring Agreement A or Insuring Agreement I.
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P.
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Loss resulting from any Dishonest or Fraudulent Act or Theft committed by an Employee as defined in Section 1.I(2), unless such loss (1) could not have been
reasonably discovered by the due diligence of the Insured at or prior to the time of acquisition by the Insured of the assets acquired from a predecessor, and (2) arose out of a lawsuit or valid claim brought against the Insured by a person
unaffiliated with the Insured or with any person affiliated with the Insured.
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Q.
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Loss resulting from the unauthorized entry of data into, or the deletion or destruction of data in, or the change of data elements or programs within, any Computer
System, unless such loss is otherwise covered under Insuring Agreement A.
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SECTION 3. ASSIGNMENT OF RIGHTS
Upon payment to the Insured hereunder for any loss, the Underwriter shall be subrogated to the extent of such payment to all of the
Insureds rights and claims in connection with such loss; provided, however, that the Underwriter shall not be subrogated to any such rights or claims one named Insured under this Bond may have against another named Insured under this Bond. At
the request of the Underwriter, the Insured shall execute all assignments or other documents and take such action as the Underwriter may deem necessary or desirable to secure and perfect such rights and claims, including the execution of documents
necessary to enable the Underwriter to bring suit in the name of the Insured.
Assignment of any rights or claims under this
Bond shall not bind the Underwriter without the Underwriters written consent.
SECTION 4.
LOSS
NOTICE
PROOF
LEGAL PROCEEDINGS
This Bond is for the use and benefit only of the
Insured and the Underwriter shall not be liable hereunder to anyone other than the Insured. As soon as practicable and not more than sixty (60) days after discovery, the Insured shall give the Underwriter written notice thereof and, as soon as
practicable and within one year after such discovery, shall also furnish to the Underwriter affirmative proof of loss with full particulars. The Underwriter may extend the sixty day notice period or the one year proof of loss period if the Insured
requests an extension and shows good cause therefor.
See also General Agreement C (Court Costs and Attorneys Fees).
The Underwriter shall not be liable hereunder for loss of Securities unless each of the Securities is identified in such
proof of loss by a certificate or bond number or by such identification means as the Underwriter may require. The Underwriter shall have a reasonable period after receipt of a proper affirmative proof of loss within which to investigate the claim,
but where the Property is Securities and the loss is clear and undisputed, settlement shall be made within forty-eight (48) hours even if the loss involves Securities of which duplicates may be obtained.
The Insured shall not bring legal proceedings against the Underwriter to recover any loss hereunder prior to sixty (60) days after
filing such proof of loss or subsequent to twenty-four (24) months after the discovery of such loss or, in the case of a legal proceeding to recover hereunder on account of any judgment against the Insured in or settlement of any suit mentioned
in General Agreement C or to recover court costs or attorneys fees paid in any such suit, twenty-four (24) months after the date of the final judgment in or settlement of such suit. If any limitation in this Bond is prohibited by any
applicable law, such limitation shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law.
12
Notice hereunder shall be given to Manager, Professional Liability Claims, ICI Mutual
Insurance Company, 1401 H St. NW, Washington, DC 20005.
SECTION 5. DISCOVERY
For all purposes under this Bond, a loss is discovered, and discovery of a loss occurs, when the Insured
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(1)
|
becomes aware of facts, or
|
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(2)
|
receives notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances,
|
which would cause a reasonable person to assume that loss covered by this Bond has been or is likely to be incurred even though the exact
amount or details of loss may not be known.
SECTION 6. VALUATION OF PROPERTY
For the purpose of determining the amount of any loss hereunder, the value of any Property shall be the market value of such Property at
the close of business on the first business day before the discovery of such loss; except that
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(1)
|
the value of any Property replaced by the Insured prior to the payment of a claim therefor shall be the actual market value of such Property at the time of replacement,
but not in excess of the market value of such Property on the first business day before the discovery of the loss of such Property;
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(2)
|
the value of Securities which must be produced to exercise subscription, conversion, redemption or deposit privileges shall be the market value of such privileges
immediately preceding the expiration thereof if the loss of such Securities is not discovered until after such expiration, but if there is no quoted or other ascertainable market price for such Property or privileges referred to in clauses
(1) and (2), their value shall be fixed by agreement between the parties or by arbitration before an arbitrator or arbitrators acceptable to the parties; and
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|
(3)
|
the value of books of accounts or other records used by the Insured in the conduct of its business shall be limited to the actual cost of blank books, blank pages or
other materials if the books or records are reproduced plus the cost of labor for the transcription or copying of data furnished by the Insured for reproduction.
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SECTION 7. LOST SECURITIES
The maximum liability of the Underwriter
hereunder for lost Securities shall be the payment for, or replacement of, such Securities having an aggregate value not to exceed the applicable Limit of Liability. If the Underwriter shall make payment to the Insured for any loss of Securities,
the Insured shall assign to the Underwriter all of the Insureds right, title and interest in and to such Securities. In lieu of such payment, the Underwriter may, at its option, replace such lost Securities, and in such case the Insured shall
cooperate to effect such replacement. To effect the replacement of lost Securities, the Underwriter may issue or arrange for the issuance of a lost instrument bond. If the value of such Securities does not exceed the applicable Deductible Amount (at
the time of the discovery of the loss), the Insured will pay the usual premium charged for the lost instrument bond and will indemnify the issuer of such bond against all loss and expense that it may sustain because of the issuance of such bond.
If the value of such Securities exceeds the applicable Deductible Amount (at the time of discovery of the loss), the Insured
will pay a proportion of the usual premium charged for the lost instrument bond, equal to the percentage that the applicable Deductible Amount bears to the value of such Securities upon discovery of the loss, and will indemnify the issuer of such
bond against all loss and expense that is not recovered from the Underwriter under the terms and conditions of this Bond, subject to the applicable Limit of Liability.
13
SECTION 8. SALVAGE
If any recovery is made, whether by the Insured or the Underwriter, on account of any loss within the applicable Limit of Liability hereunder, the Underwriter shall be entitled to the full amount of such
recovery to reimburse the Underwriter for all amounts paid hereunder with respect to such loss. If any recovery is made, whether by the Insured or the Underwriter, on account of any loss in excess of the applicable Limit of Liability hereunder plus
the Deductible Amount applicable to such loss from any source other than suretyship, insurance, reinsurance, security or indemnity taken by or for the benefit of the Underwriter, the amount of such recovery, net of the actual costs and expenses of
recovery, shall be applied to reimburse the Insured in full for the portion of such loss in excess of such Limit of Liability, and the remainder, if any, shall be paid first to reimburse the Underwriter for all amounts paid hereunder with respect to
such loss and then to the Insured to the extent of the portion of such loss within the Deductible Amount. The Insured shall execute all documents which the Underwriter deems necessary or desirable to secure to the Underwriter the rights provided for
herein.
SECTION 9. NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
Prior to its termination, this Bond shall continue in force up to the Limit of Liability for each Insuring Agreement for each Single Loss,
notwithstanding any previous loss (other than such Single Loss) for which the Underwriter may have paid or be liable to pay hereunder; PROVIDED, however, that regardless of the number of years this Bond shall continue in force and the number of
premiums which shall be payable or paid, the liability of the Underwriter under this Bond with respect to any Single Loss shall be limited to the applicable Limit of Liability irrespective of the total amount of such Single Loss and shall not be
cumulative in amounts from year to year or from period to period.
SECTION 10. MAXIMUM LIABILITY OF UNDERWRITER; OTHER BONDS OR POLICIES
The maximum liability of the Underwriter for any Single Loss covered by any Insuring Agreement under this Bond shall be
the Limit of Liability applicable to such Insuring Agreement, subject to the applicable Deductible Amount and the other provisions of this Bond. Recovery for any Single Loss may not be made under more than one Insuring Agreement. If any Single Loss
covered under this Bond is recoverable or recovered in whole or in part because of an unexpired discovery period under any other bonds or policies issued by the Underwriter to the Insured or to any predecessor in interest of the Insured, the maximum
liability of the Underwriter shall be the greater of either (1) the applicable Limit of Liability under this Bond, or (2) the maximum liability of the Underwriter under such other bonds or policies.
SECTION 11. OTHER INSURANCE
Notwithstanding anything to the contrary herein, if any loss covered by this Bond shall also be covered by other insurance or suretyship for the benefit of the Insured, the Underwriter shall be liable
hereunder only for the portion of such loss in excess of the amount recoverable under such other insurance or suretyship, but not exceeding the applicable Limit of Liability of this Bond.
SECTION 12. DEDUCTIBLE AMOUNT
The Underwriter shall not be liable under
any Insuring Agreement unless the amount of the loss covered thereunder, after deducting the net amount of all reimbursement and/or recovery received by the Insured with respect to such loss (other than from any other bond, suretyship or insurance
policy or as an advance by the Underwriter hereunder) shall exceed the applicable Deductible Amount; in such case the Underwriter shall be liable only for such excess, subject to the applicable Limit of Liability and the other terms of this Bond.
No Deductible Amount shall apply to any loss covered under Insuring Agreement A sustained by any Investment Company named as
an Insured.
14
SECTION 13. TERMINATION
The Underwriter may terminate this Bond as to any Insured or all Insureds only by written notice to such Insured or Insureds and, if this Bond is terminated as to any Investment Company, to each such
Investment Company terminated thereby and to the Securities and Exchange Commission, Washington, D.C., in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
The Insured may terminate this Bond only by written notice to the Underwriter not less than sixty (60) days prior to the effective
date of the termination specified in such notice. Notwithstanding the foregoing, when the Insured terminates this Bond as to any Investment Company, the effective date of termination shall be not less than sixty (60) days from the date the
Underwriter provides written notice of the termination to each such Investment Company terminated thereby and to the Securities and Exchange Commission, Washington, D.C.
This Bond will terminate as to any Insured that is a Non-Fund immediately and without notice upon (1) the takeover of such Insureds business by any State or Federal official or agency, or by
any receiver or liquidator, or (2) the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured.
Premiums are earned until the effective date of termination. The Underwriter shall refund the unearned premium computed at short rates in
accordance with the Underwriters standard short rate cancellation tables if this Bond is terminated by the Insured or pro rata if this Bond is terminated by the Underwriter.
Upon the detection by any Insured that an Employee has committed any Dishonest or Fraudulent Act(s) or Theft, the Insured shall
immediately remove such Employee from a position that may enable such Employee to cause the Insured to suffer a loss by any subsequent Dishonest or Fraudulent Act(s) or Theft. The Insured, within two (2) business days of such detection, shall
notify the Underwriter with full and complete particulars of the detected Dishonest or Fraudulent Act(s) or Theft.
For
purposes of this section, detection occurs when any partner, officer, or supervisory employee of any Insured, who is not in collusion with such Employee, becomes aware that the Employee has committed any Dishonest or Fraudulent Act(s) or Theft.
This Bond shall terminate as to any Employee by written notice from the Underwriter to each Insured and, if such Employee is
an Employee of an Insured Investment Company, to the Securities and Exchange Commission, in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
SECTION 14. RIGHTS AFTER TERMINATION
At any time prior to the effective date of termination of this Bond as to any Insured, such Insured may, by written notice to the Underwriter, elect to purchase the right under this Bond to an additional
period of twelve (12) months within which to discover loss sustained by such Insured prior to the effective date of such termination and shall pay an additional premium therefor as the Underwriter may require.
Such additional discovery period shall terminate immediately and without notice upon the takeover of such Insureds business by any
State or Federal official or agency, or by any receiver or liquidator. Promptly after such termination the Underwriter shall refund to the Insured any unearned premium.
The right to purchase such additional discovery period may not be exercised by any State or Federal official or agency, or by any receiver or liquidator, acting or appointed to take over the
Insureds business.
15
SECTION 15. CENTRAL HANDLING OF SECURITIES
The Underwriter shall not be liable for loss in connection with the central handling of securities within the systems established and
maintained by any Depository (Systems), unless the amount of such loss exceeds the amount recoverable or recovered under any bond or policy or participants fund insuring the Depository against such loss (the Depositorys
Recovery); in such case the Underwriter shall be liable hereunder only for the Insureds share of such excess loss, subject to the applicable Limit of Liability, the Deductible Amount and the other terms of this Bond.
For determining the Insureds share of such excess loss, (1) the Insured shall be deemed to have an interest in any certificate
representing any security included within the Systems equivalent to the interest the Insured then has in all certificates representing the same security included within the Systems; (2) the Depository shall have reasonably and fairly
apportioned the Depositorys Recovery among all those having an interest as recorded by appropriate entries in the books and records of the Depository in Property involved in such loss, so that each such interest shall share in the
Depositorys Recovery in the ratio that the value of each such interest bears to the total value of all such interests; and (3) the Insureds share of such excess loss shall be the amount of the Insureds interest in such
Property in excess of the amount(s) so apportioned to the Insured by the Depository.
This Bond does not afford coverage in
favor of any Depository or Exchange or any nominee in whose name is registered any security included within the Systems.
SECTION 16.
ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one entity is named as the Insured:
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A.
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the total liability of the Underwriter hereunder for each Single Loss shall not exceed the Limit of Liability which would be applicable if there were only one named
Insured, regardless of the number of Insured entities which sustain loss as a result of such Single Loss,
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B.
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the Insured first named in Item 1 of the Declarations shall be deemed authorized to make, adjust, and settle, and receive and enforce payment of, all claims
hereunder as the agent of each other Insured for such purposes and for the giving or receiving of any notice required or permitted to be given hereunder; provided, that the Underwriter shall promptly furnish each named Insured Investment Company
with (1) a copy of this Bond and any amendments thereto, (2) a copy of each formal filing of a claim hereunder by any other Insured, and (3) notification of the terms of the settlement of each such claim prior to the execution of such
settlement,
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C.
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the Underwriter shall not be responsible or have any liability for the proper application by the Insured first named in Item 1 of the Declarations of any payment
made hereunder to the first named Insured,
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D.
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for the purposes of Sections 4 and 13, knowledge possessed or discovery made by any partner, officer or supervisory Employee of any Insured shall constitute knowledge
or discovery by every named Insured,
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E.
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if the first named Insured ceases for any reason to be covered under this Bond, then the Insured next named shall thereafter be considered as the first named Insured
for the purposes of this Bond, and
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F.
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each named Insured shall constitute the Insured for all purposes of this Bond.
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SECTION 17. NOTICE AND CHANGE OF CONTROL
Within thirty (30) days
after learning that there has been a change in control of an Insured by transfer of its outstanding voting securities the Insured shall give written notice to the Underwriter of:
16
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A.
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the names of the transferors and transferees (or the names of the beneficial owners if the voting securities are registered in another name), and
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B.
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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
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C.
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the total number of outstanding voting securities.
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As used in this Section, control means the power to exercise a controlling influence over the management or policies of the Insured.
SECTION 18. CHANGE OR MODIFICATION
This Bond may only be modified by
written Rider forming a part hereof over the signature of the Underwriters authorized representative. Any Rider which modifies the coverage provided by Insuring Agreement A, Fidelity, in a manner which adversely affects the rights of an
Insured Investment Company shall not become effective until at least sixty (60) days after the Underwriter has given written notice thereof to the Securities and Exchange Commission, Washington, D.C., and to each Insured Investment Company
affected thereby.
SECTION 19. COMPLIANCE WITH APPLICABLE TRADE AND ECONOMIC SANCTIONS
This Bond shall not be deemed to provide any coverage, and the Underwriter shall not be required to pay any loss or provide any benefit
hereunder, to the extent that the provision of such coverage, payment of such loss or provision of such benefit would cause the Underwriter to be in violation of any applicable trade or economic sanctions, laws or regulations, including, but not
limited to, any sanctions, laws or regulations administered and enforced by the U.S. Department of Treasury Office of Foreign Assets Control (OFAC).
IN WITNESS WHEREOF, the Underwriter has caused this Bond to be executed on the Declarations Page.
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 1
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Davis New York Venture Fund, Inc.
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87006112B
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EFFECTIVE DATE
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BOND PERIOD
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AUTHORIZED REPRESENTATIVE
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August 1, 2012
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August 1, 2012 to August 1, 2013
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/S/ Matthew Link
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17
In consideration of the premium charged for this Bond, it is hereby understood and agreed that Item 1
of the Declarations, Name of Insured, shall include the following:
Davis New York Venture Fund, Inc., a series fund consisting
of:
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Davis New York Venture Fund
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Davis International Fund
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Davis Series, Inc., a series fund consisting of:
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Davis Appreciation & Income Fund
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Davis Government Bond Fund
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Davis Government Money Market Fund
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Davis Variable Account Fund, Inc., a series fund consisting of:
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Davis Financial Portfolio
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Davis Real Estate Portfolio
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Selected American Shares, Inc.
Selected International Fund (f/k/a Selected
Special Shares, Inc.)
Selected Capital Preservation Trust, a series fund consisting of:
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Selected Daily Government Fund
|
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN1.0-00 (1/02)
2
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 2
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Davis New York Venture Fund, Inc.
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87006112B
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EFFECTIVE DATE
|
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BOND PERIOD
|
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AUTHORIZED REPRESENTATIVE
|
|
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August 1, 2012
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August 1, 2012 to August 1, 2013
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|
/S/ Matthew Link
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In consideration of the premium charged for this Bond, it is hereby understood and agreed that notwithstanding
Section 2.Q of this Bond, this Bond is amended by adding an additional Insuring Agreement J as follows:
Loss (including loss of
Property) resulting directly from Computer Fraud;
provided
, that the Insured has adopted in writing and generally maintains and follows during the Bond Period all Computer Security Procedures. The isolated failure of the Insured to maintain
and follow a particular Computer Security Procedure in a particular instance will not preclude coverage under this Insuring Agreement, subject to the specific exclusions herein and in the Bond.
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1.
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Definitions
. The following terms used in this Insuring Agreement shall have the following meanings:
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a.
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Authorized User means any person or entity designated by the Insured (through contract, assignment of User Identification, or otherwise) as authorized to
use a Covered Computer System, or any part thereof. An individual who invests in an Insured Fund shall not be considered to be an Authorized User solely by virtue of being an investor.
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b.
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Computer Fraud means the unauthorized entry of data into, or the deletion or destruction of data in, or change of data elements or programs within, a
Covered Computer System which:
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(1)
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is committed by any Unauthorized Third Party anywhere, alone or in collusion with other Unauthorized Third Parties;
and
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(2)
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is committed with the conscious manifest intent (a) to cause the Insured to sustain a loss,
and
(b) to obtain financial benefit for the perpetrator or
any other person;
and
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(3)
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causes (x) Property to be transferred, paid or delivered;
or
(y) an account of the Insured, or of its customer, to be added, deleted, debited or
credited;
or
(z) an unauthorized or fictitious account to be debited or credited.
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c.
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Computer Security Procedures means procedures for prevention of unauthorized computer access and use and administration of computer access and use as
provided in writing to the Underwriter.
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3
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d.
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Covered Computer System means any Computer System as to which the Insured has possession, custody and control.
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e.
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Unauthorized Third Party means any person or entity that, at the time of the Computer Fraud, is not an Authorized User.
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f.
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User Identification means any unique user name (
i.e.
, a series of characters) that is assigned to a person or entity by the Insured.
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2.
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Exclusions
. It is further understood and agreed that this Insuring Agreement J shall not cover:
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a.
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Any loss covered under Insuring Agreement A, Fidelity, of this Bond;
and
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b.
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Any loss resulting directly or indirectly from Theft or misappropriation of confidential or proprietary information, material or data (including but not limited to
trade secrets, computer programs or customer information);
and
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c.
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Any loss resulting from the intentional failure to adhere to one or more Computer Security Procedures;
and
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d.
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Any loss resulting from a Computer Fraud committed by or in collusion with:
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(1)
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any Authorized User (whether a natural person or an entity);
or
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(2)
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in the case of any Authorized User which is an entity, (a) any director, officer, partner, employee or agent of such Authorized User, or (b) any entity which
controls, is controlled by, or is under common control with such Authorized User (Related Entity), or (c) any director, officer, partner, employee or agent of such Related Entity;
or
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(3)
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in the case of any Authorized User who is a natural person, (a) any entity for which such Authorized User is a director, officer, partner, employee or agent
(Employer Entity), or (b) any director, officer, partner, employee or agent of such Employer Entity, or (c) any entity which controls, is controlled by, or is under common control with such Employer Entity
(Employer-Related Entity), or (d) any director, officer, partner, employee or agent of such Employer-Related Entity;
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and
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e.
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Any loss resulting from physical damage to or destruction of any Covered Computer System, or any part thereof, or any data, data elements or media associated therewith;
and
|
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f.
|
Any loss resulting from Computer Fraud committed by means of wireless access to any Covered Computer System, or any part thereof, or any data, data elements or media
associated therewith;
and
|
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g.
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Any loss not directly and proximately caused by Computer Fraud (including, without limitation, disruption of business and extra expense);
and
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h.
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Payments made to any person(s) who has threatened to deny or has denied authorized access to a Covered Computer System or otherwise has threatened to disrupt the
business of the Insured.
|
For purposes of this Insuring Agreement, Single Loss, as defined in Section 1.X of
this Bond, shall also include all loss caused by Computer Fraud(s) committed by one person, or in which one person is implicated, whether or not that person is specifically identified. A series of losses involving unidentified individuals, but
arising from the same method of operation, may be deemed by the Underwriter to involve the same individual and in that event shall be treated as a Single Loss.
4
It is further understood and agreed that nothing in this Rider shall affect the exclusion set forth in
Section 2.O of this Bond.
Coverage under this Insuring Agreement shall terminate upon termination of this Bond. Coverage under this
Insuring Agreement may also be terminated without terminating this Bond as an entirety:
|
(a)
|
by written notice from the Underwriter not less than sixty (60) days prior to the effective date of termination specified in such notice; or
|
|
(b)
|
immediately by written notice from the Insured to the Underwriter.
|
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN19.0-04 (12/03)
5
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 3
|
|
|
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|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that:
|
1.
|
In the event that a loss is covered under more than one bond issued to Davis New York Venture Fund, Inc. or any affiliates thereof issued by ICI Mutual Insurance
Company, the total liability of ICI Mutual Insurance Company under all implicated bonds in combination shall not exceed the applicable Limit of Liability of the largest of the implicated bonds. In no event shall the applicable Limits of Liability of
each of the implicated bonds be added together or otherwise combined to determine the total liability of ICI Mutual Insurance Company.
|
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN23.0-01 (11/03)
6
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 4
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that the Deductible Amount for
Insuring Agreement E, Forgery or Alteration, and Insuring Agreement F, Securities, shall not apply with respect to loss through Forgery of a signature on the following documents:
|
(1)
|
letter requesting redemption of $50,000 or less payable by check to the shareholder of record and addressed to the address of record; or
|
|
(2)
|
letter requesting redemption of $50,000 or less by wire transfer to the record shareholders bank account of record; or
|
|
(3)
|
written request to a trustee or custodian for a Designated Retirement Account (DRA) which holds shares of an Insured Fund, where such request
(a) purports to be from or at the instruction of the Owner of such DRA, and (b) directs such trustee or custodian to transfer $50,000 or less from such DRA to a trustee or custodian for another DRA established for the benefit of such
Owner;
|
provided
, that the Limit of Liability for a Single Loss as described above shall be $50,000 and that the Insured
shall bear 20% of each such loss. This Rider shall not apply in the case of any such Single Loss which exceeds $50,000; in such case the Deductible Amounts and Limits of Liability set forth in Item 3 of the Declarations shall control.
For purposes of this Rider:
|
(A)
|
Designated Retirement Account means any retirement plan or account described or qualified under the Internal Revenue Code of 1986, as amended, or a
subaccount thereof.
|
|
(B)
|
Owner means the individual for whose benefit the DRA, or a subaccount thereof, is established.
|
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN27.0-02 (10/08)
7
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 5
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that this Bond does not cover
any loss resulting from or in connection with the acceptance of any Third Party Check, unless
|
(1)
|
such Third Party Check is used to open or increase an account which is registered in the name of one or more of the payees on such Third Party Check, and
|
|
(2)
|
reasonable efforts are made by the Insured, or by the entity receiving Third Party Checks on behalf of the Insured, to verify all endorsements on all Third Party Checks
made payable in amounts greater than $100,000 (provided, however, that the isolated failure to make such efforts in a particular instance will not preclude coverage, subject to the exclusions herein and in the Bond),
|
and then only to the extent such loss is otherwise covered under this Bond.
For purposes of this Rider, Third Party Check means a check made payable to one or more parties and offered as payment to one or more other parties.
It is further understood and agreed that notwithstanding anything to the contrary above or elsewhere in the Bond, this Bond does not cover any loss
resulting from or in connection with the acceptance of a Third Party Check where:
|
(1)
|
any payee on such Third Party Check reasonably appears to be a corporation or other entity; or
|
|
(2)
|
such Third Party Check is made payable in an amount greater than $100,000 and does not include the purported endorsements of all payees on such Third Party Check.
|
It is further understood and agreed that this Rider shall not apply with respect to any coverage that may be available under
Insuring Agreement A, Fidelity.
8
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this
Bond.
RN30.0-01 (1/02)
9
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 6
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that, notwithstanding anything
to the contrary in General Agreement A of this Bond, Item 1 of the Declarations shall include any Newly Created Investment Company or portfolio provided that the Insured shall submit to the Underwriter within fifteen (15) days after the
end of each calendar quarter, a list of all Newly Created Investment Companies or portfolios, the estimated annual assets of each Newly Created Investment Company or portfolio, and copies of any prospectuses and statements of additional information
relating to such Newly Created Investment Companies or portfolios, unless said prospectuses and statements of additional information have been previously submitted. Following the end of a calendar quarter, any Newly Created Investment Company or
portfolio created within the preceding calendar quarter will continue to be an Insured
only
if the Underwriter is notified as set forth in this paragraph, the information required herein is provided to the Underwriter, and the Underwriter
acknowledges the addition of such Newly Created Investment Company or portfolio to the Bond by a Rider to this Bond.
For purposes of this
Rider, Newly Created Investment Company or portfolio shall mean any Investment Company or portfolio for which registration with the SEC has been declared effective for a time period of less than one calendar quarter.
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN33.0-00 (10/08)
10
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 7
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
In consideration for the premium charged for this Bond, it is hereby understood and agreed that, with respect to Insuring
Agreement I only, the Deductible Amount set forth in Item 3 of the Declarations (Phone/Electronic Deductible) shall not apply with respect to a Single Loss, otherwise covered by Insuring Agreement I, caused by:
|
(1)
|
a Phone/Electronic Redemption requested to be paid or made payable by check to the Shareholder of Record at the address of record; or
|
|
(2)
|
a Phone/Electronic Redemption requested to be paid or made payable by wire transfer to the Shareholder of Records bank account of record,
|
provided
, that the Limit of Liability for a Single Loss as described in (1) or (2) above shall be the lesser
of 80% of such loss or $40,000 and that the Insured shall bear the remainder of each such Loss. This Rider shall not apply if the application of the Phone/Electronic Deductible to the Single Loss would result in coverage of greater than $40,000 or
more; in such case the Phone-initiated Deductible and Limit of Liability set forth in Item 3 of the Declarations shall control.
For
purposes of this Rider, Phone/Electronic Redemption means any redemption of shares issued by an Investment Company, which redemption is requested (a) by telefacsimile, or (b) through an automated telephone tone or voice
response system.
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN39.0-02 (8/02)
11
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 8
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that notwithstanding anything
to the contrary in this Bond (including Insuring Agreement I), this Bond does not cover loss caused by a Phone/Electronic Transaction requested:
|
|
|
by transmissions over the Internet (including any connected or associated intranet or extranet) or utilizing modem or similar connections;
or
|
|
|
|
by wireless device transmissions over the Internet (including any connected or associated intranet or extranet);
or
|
|
|
|
by voice over the telephone, except insofar as such loss is covered under Insuring Agreement A Fidelity of this Bond.
|
Except as above stated, nothing herein shall be held to alter, waive or extend any of the terms of this Bond.
RN48.0-03 (12/03)
12
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 9
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
|
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
Most property and casualty insurers, including ICI Mutual Insurance Company, a Risk Retention Group (ICI
Mutual), are subject to the requirements of the Terrorism Risk Insurance Act of 2002, as amended (the Act). The Act establishes a Federal insurance backstop under which ICI Mutual and these other insurers will be partially
reimbursed for future
insured losses
resulting from certified
acts of terrorism.
(Each of these
bolded terms
is defined by the Act.) The Act also places certain disclosure and other obligations on ICI
Mutual and these other insurers.
Pursuant to the Act, any future losses to ICI Mutual caused by certified
acts of
terrorism
will be partially reimbursed by the United States government under a formula established by the Act. Under this formula, the United States government will reimburse ICI Mutual for 85% of ICI Mutuals
insured
losses
in excess of a statutorily established deductible until total insured losses of all participating insurers reach $100 billion. If total insured losses of all property and casualty insurers reach $100 billion during any
applicable period, the Act provides that the insurers will not be liable under their policies for their portions of such losses that exceed such amount. Amounts otherwise payable under this bond may be reduced as a result.
This bond has no express exclusion for
acts of terrorism.
However, coverage under this bond remains subject to all applicable terms,
conditions and limitations of the bond (including exclusions) that are permissible under the Act. The portion of the premium that is attributable to any coverage potentially available under the bond for
acts of terrorism
is one
percent (1%).
RN53.0-01 (7/06)
13
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
RIDER NO. 10
|
|
|
|
|
Davis New York Venture Fund, Inc.
|
|
|
|
87006112B
|
EFFECTIVE DATE
|
|
BOND PERIOD
|
|
AUTHORIZED REPRESENTATIVE
|
|
|
|
|
|
August 1, 2012
|
|
August 1, 2012 to August 1, 2013
|
|
/S/ Matthew Link
|
In consideration of the premium charged for this Bond, it is hereby understood and agreed that this Bond is amended by
adding an additional Insuring Agreement K., as follows:
Loss against any and all sums
which the Insured shall become obligated to pay by reason of the liability imposed upon the Insured by law for damages:
|
(1)
|
For having either complied with or failed to comply with any written notice of any customer, shareholder or subscriber of the Insured or any authorized representative
of such customer, shareholder or subscriber, to stop payment of any check or draft made or drawn by such customer, shareholder or subscriber, or
|
|
(2)
|
For having refused to pay any check or draft by any customer, shareholder or subscriber of the Insured or any authorized representative of such customer, shareholder or
subscriber.
|
It is further understood and agreed that the Limit of Liability with respect to this Insuring Agreement is $100,000
(One Hundred Thousand Dollars), the Deductible is $5,000 (Five Thousand Dollars) and, notwithstanding any other provision of this Bond, the aggregate limit of liability with respect to all losses under this Insuring Agreement shall be $100,000 (One
Hundred Thousand Dollars) for the Bond Period, irrespective of the total amount of all such losses.
Except as above stated, nothing herein
shall be held to alter, waive or extend any of the terms of this Bond.
RN45.0-00 (10/08)
14
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