Chubb Group of
Insurance Companies
|
DECLARATIONS
|
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FINANCIAL INSTITUTION
INVESTMENT
|
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15 Mountain View Road, Warren,
New Jersey 07059
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COMPANY ASSET PROTECTION
BOND
|
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NAME OF ASSURED (including its
Subsidiaries):
|
Bond Number:
82047607
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THE HYPERION BROOKFIELD TOTAL
RETURN FUND, INC.
|
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FEDERAL
INSURANCE COMPANY
|
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THREE WORLD FINANCIAL
CENTER
|
Incorporated under the laws of
Indiana
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NEW YORK, NY
102811010
|
a stock insurance company herein
called the COMPANY
|
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Capital Center, 251 North
Illinois, Suite 1100
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Indianapolis, IN
46204-1927
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ITEM
1.
|
BOND
PERIOD:
|
from
|
12:01 a.m.
on
|
July 30,
2008
|
||||||||||||||
to
|
12:01 a.m.
on
|
July 30,
2009
|
||||||||||||||||
ITEM
2.
|
LIMITS OF LIABILITY--DEDUCTIBLE
AMOUNTS:
|
|||||||||||||||||
If “Not Covered” is inserted
below opposite any specified INSURING CLAUSE, such INSURING
CLAUSE
|
||||||||||||||||||
and any other reference shall be
deemed to be deleted. There
shall be no deductible applicable to any
|
||||||||||||||||||
loss under
INSURING CLAUSE 1. sustained by any Investment
Company.
|
||||||||||||||||||
DEDUCTIBLE
|
||||||||||||||||||
INSURING
CLAUSE
|
LIMIT OF
LIABILITY
|
AMOUNT
|
||||||||||||||||
1.
|
Employee
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
2.
|
On
Premises
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
3.
|
In Transit
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
4.
|
Forgery or
Alteration
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
5.
|
Extended
Forgery
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
6.
|
Counterfeit
Money
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
7.
|
Threats to
Person
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
8.
|
Computer
System
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
9.
|
Voice Initiated Funds Transfer
Instruction
|
$
2,625,000.
|
$
25,000.
|
|||||||||||||||
10.
|
Uncollectible Items of
Deposit
|
$ 50,000.
|
$
5,000.
|
|||||||||||||||
11.
|
Audit
Expense
|
$ 50,000.
|
$
5,000.
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ITEM
3.
|
THE LIABILITY OF THE COMPANY IS
ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
|
|||||||||||||||||
ENDORSEMENTS EXECUTED
SIMULTANEOUSLY HEREWITH:
|
||||||||||||||||||
1) Stop Payment Order or Refusal
to Pay Check, 2) Unauthorized Signature Endorsement, 3) New
York
|
||||||||||||||||||
Amendatory, 4) Deleting
Valuation-Other Property, 5) Compliance w/ Trade Sanction Laws, 6) Amend
Name
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||||||||||||||||||
of Assured, 7)Revise Item 2
Endorsement
|
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IN
WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed
by its authorized officers, but it shall not be
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valid unless also signed by an
authorized representative of the Company.
|
The COMPANY, in consideration of
payment of the required premium, and in reliance
|
||||||||
on the APPLICATION and all other
statements made and information furnished to the
|
||||||||
COMPANY by the ASSURED, and
subject to the DECLARATIONS made a part of this
|
||||||||
Bond and to all other terms and
conditions of this Bond, agrees to pay the
ASSURED
|
||||||||
for:
|
||||||||
Insuring
Clauses
|
||||||||
Employee
|
1.
|
Loss resulting directly from
Larceny
or Embezzlement
committed by
any
|
||||||
Employee, alone or in collusion with
others.
|
||||||||
On
Premises
|
2.
|
Loss of Property
resulting directly
from robbery, burglary, false pretenses,
|
||||||
common law or statutory larceny,
misplacement, mysterious unexplainable
|
||||||||
disappearance, damage,
destruction or removal, from the possession, custody
or
|
||||||||
control of the ASSURED, while
such Property
is lodged or
deposited at premises
|
||||||||
located
anywhere.
|
||||||||
In
Transit
|
3.
|
Loss of Property
resulting directly
from common law or statutory larceny,
|
||||||
misplacement, mysterious
unexplainable disappearance, damage or
destruction,
|
||||||||
while the Property
is in transit
anywhere:
|
||||||||
a.
|
in an armored motor vehicle,
including loading and unloading thereof,
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b.
|
in the custody of a natural
person acting as a messenger of the ASSURED,
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or
|
||||||||
c.
|
in the custody of a Transportation
Company and being
transported in a
|
|||||||
conveyance other than an armored
motor vehicle provided, however, that
|
||||||||
covered Property
transported in such
manner is limited to the following:
|
||||||||
(1)
|
written
records,
|
|||||||
(2)
|
securities issued in registered
form, which are not endorsed or are
|
|||||||
restrictively endorsed,
or
|
||||||||
(3)
|
negotiable instruments not
payable to bearer, which are not endorsed
|
|||||||
or are restrictively
endorsed.
|
||||||||
Coverage under this INSURING
CLAUSE begins immediately on the receipt of
|
||||||||
such Property
by the natural
person or Transportation
Company and
ends
|
||||||||
immediately on delivery to the
premises of the addressee or to any
representative
|
||||||||
of the addressee located
anywhere.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page
1 of 19
|
|
Insuring
Clauses
|
||||||||
(continued)
|
||||||||
Forgery Or
Alteration
|
4.
|
Loss resulting directly
from:
|
||||||
a.
|
Forgery
on, or fraudulent
material alteration of, any bills of exchange,
|
|||||||
checks, drafts, acceptances,
certificates of deposits, promissory notes, due
|
||||||||
bills, money orders, orders upon
public treasuries, letters of credit, other
|
||||||||
written promises, orders or
directions to pay sums certain in money, or
|
||||||||
receipts for the withdrawal of
Property, or
|
||||||||
b.
|
transferring, paying or
delivering any funds or other Property, or
establishing
|
|||||||
any credit or giving any value in
reliance on any written instructions, advices
|
||||||||
or applications directed to the
ASSURED authorizing or acknowledging the
|
||||||||
transfer, payment, delivery or
receipt of funds or other Property, which
|
||||||||
instructions, advices or
applications fraudulently purport to bear the
|
||||||||
handwritten signature of any
customer of the ASSURED, or shareholder or
|
||||||||
subscriber to shares of an
Investment
Company, or of any
financial
|
||||||||
institution or Employee
but which
instructions, advices or applications either
|
||||||||
bear a Forgery
or have been
fraudulently materially altered without the
|
||||||||
knowledge and consent of such
customer, shareholder, subscriber, financial
|
||||||||
institution or Employee;
|
||||||||
excluding, however, under this
INSURING CLAUSE any loss covered under
|
||||||||
INSURING CLAUSE 5. of this Bond,
whether or not coverage for INSURING
|
||||||||
CLAUSE 5. is provided for in the
DECLARATIONS of this Bond.
|
||||||||
For the purpose of this INSURING
CLAUSE, a mechanically reproduced facsimile
|
||||||||
signature is treated the same as
a handwritten signature.
|
||||||||
Extended
Forgery
|
5.
|
Loss resulting directly from the
ASSURED having, in good faith, and in the
|
||||||
ordinary course of business, for
its own account or the account of others in any
|
||||||||
capacity:
|
||||||||
a.
|
acquired, accepted or received,
accepted or received, sold or delivered, or
|
|||||||
given value, extended credit or
assumed liability, in reliance on any original
|
||||||||
Securities,
documents or other written instruments which
prove to:
|
||||||||
(1)
|
bear a Forgery
or a fraudulently
material alteration,
|
|||||||
(2)
|
have been lost or stolen,
or
|
|||||||
(3)
|
be
Counterfeit,
or
|
|||||||
b.
|
guaranteed in writing or
witnessed any signatures on any transfer,
|
|||||||
assignment, bill of sale, power
of attorney, guarantee, endorsement or other
|
||||||||
obligation upon or in connection
with any Securities,
documents or other
|
||||||||
written
instruments.
|
||||||||
Actual physical possession, and
continued actual physical possession if taken as
|
||||||||
collateral,
of such Securities,
documents or other written instruments by
an
|
||||||||
Employee,
Custodian, or a
Federal or State chartered deposit institution of
the
|
||||||||
ASSURED is a condition precedent
to the ASSURED having relied on such items.
|
||||||||
Release or return of such
collateral is an acknowledgment by the ASSURED that
it
|
||||||||
no longer relies on such
collateral.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 2 of 19 |
Insuring
Clauses
|
||||||||
Extended
Forgery
|
For the purpose of this INSURING
CLAUSE, a mechanically reproduced facsimile
|
|||||||
(continued)
|
signature is treated the same as
a handwritten signature.
|
|||||||
Counterfeit
Money
|
6.
|
Loss resulting directly from the
receipt by the ASSURED in good faith of any
|
||||||
Counterfeit
money.
|
||||||||
Threats To
Person
|
7.
|
Loss resulting directly from
surrender of Property
away from an office
of the
|
||||||
ASSURED as a result of a threat
communicated to the ASSURED to do bodily
|
||||||||
harm to an Employee
as defined in
Section 1.e. (1), (2) and (5), a Relative
or
|
||||||||
invitee of such Employee, or a resident of the household
of such Employee, who
|
||||||||
is, or allegedly is, being held
captive provided, however, that prior to the
surrender
|
||||||||
of such Property:
|
||||||||
a.
|
the Employee
who receives the
threat has made a reasonable effort to
|
|||||||
notify an officer of the ASSURED
who is not involved in such threat, and
|
||||||||
b.
|
the ASSURED has made a reasonable
effort to notify the Federal Bureau of
|
|||||||
Investigation and local law
enforcement authorities concerning such threat.
|
||||||||
It is agreed that for purposes of
this INSURING CLAUSE, any Employee
of
the
|
||||||||
ASSURED, as set forth in the
preceding paragraph, shall be deemed to be an
|
||||||||
ASSURED hereunder, but only with
respect to the surrender of money, securities
|
||||||||
and other tangible personal
property in which such Employee
has a legal
or
|
||||||||
equitable
interest.
|
||||||||
Computer
System
|
8.
|
Loss resulting directly from
fraudulent:
|
||||||
a.
|
entries of data into,
or
|
|||||||
b.
|
changes of data elements or
programs within,
|
|||||||
a Computer
System, provided the
fraudulent entry or change causes:
|
||||||||
(1)
|
funds or other property to be
transferred, paid or delivered,
|
|||||||
(2)
|
an account of the ASSURED or of
its customer to be added, deleted,
|
|||||||
debited or credited,
or
|
||||||||
(3)
|
an unauthorized account or a
fictitious account to be debited or
|
|||||||
credited.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 3 of 19 |
Insuring
Clauses
|
||||||
(continued)
|
||||||
Voice
Initiated Funds
|
9.
|
Loss
resulting directly from Voice
Initiated Funds Transfer Instruction directed
|
||||
Transfer
Instruction
|
to the ASSURED authorizing the
transfer of dividends or redemption proceeds of
|
|||||
Investment
Company shares from
a Customer's
account, provided
such Voice
|
||||||
Initiated
Funds Transfer Instruction was:
|
||||||
a.
|
received at the ASSURED'S offices
by those Employees
of the
ASSURED
|
|||||
specifically authorized to
receive the Voice
Initiated Funds Transfer
|
||||||
Instruction,
|
||||||
b.
|
made by a person purporting to be
a Customer, and
|
|||||
c.
|
made by said person for the
purpose of causing the ASSURED or Customer
|
|||||
to sustain a loss or making an
improper personal financial gain for such
|
||||||
person or any other
person.
|
||||||
In order for coverage to apply
under this INSURING CLAUSE, all Voice
Initiated
|
||||||
Funds
Transfer Instructions must be received and processed in
accordance with
|
||||||
the Designated Procedures
outlined in the APPLICATION furnished to the
|
||||||
COMPANY.
|
||||||
Uncollectible
Items of
|
10.
|
Loss resulting directly from the
ASSURED having credited an account of a
|
||||
Deposit
|
customer, shareholder or
subscriber on the faith of any Items
of Deposit which
|
|||||
prove to be uncollectible,
provided that the crediting of such account
causes:
|
||||||
a.
|
redemptions or withdrawals to be
permitted,
|
|||||
b.
|
shares to be issued,
or
|
|||||
c.
|
dividends to be
paid,
|
|||||
from an account of an
Investment
Company.
|
||||||
In order for coverage to apply
under this INSURING CLAUSE, the ASSURED
|
||||||
must hold Items
of Deposit for the
minimum number of days stated in the
|
||||||
APPLICATION before permitting any
redemptions or withdrawals, issuing any
|
||||||
shares or paying any dividends
with respect to such Items
of Deposit.
|
||||||
Items
of Deposit shall not
be deemed uncollectible until the ASSURED'S
|
||||||
standard collection procedures
have failed.
|
||||||
Audit
Expense
|
11.
|
Expense incurred by the ASSURED
for that part of the cost of audits or
|
||||
examinations required by any
governmental regulatory authority or
self-regulatory
|
||||||
organization to be conducted by
such authority, organization or their appointee
by
|
||||||
reason of the discovery of loss
sustained by the ASSURED and covered by this
|
||||||
Bond.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 4 of 19 |
General
Agreements
|
||||||
Additional
Companies
|
A.
|
If more than one corporation, or
Investment
Company, or any
combination of
|
||||
Included As
Assured
|
them is included as the ASSURED
herein:
|
|||||
(1)
|
The total liability of the
COMPANY under this Bond for loss or losses
|
|||||
sustained by any one or more or
all of them shall not exceed the limit for
|
||||||
which the COMPANY would be liable
under this Bond if all such loss were
|
||||||
sustained by any one of
them.
|
||||||
(2)
|
Only the first named ASSURED
shall be deemed to be the sole agent of the
|
|||||
others for all purposes under
this Bond, including but not limited to the
giving
|
||||||
or receiving of any notice or
proof required to be given and for the purpose
of
|
||||||
effecting or accepting any
amendments to or termination of this Bond. The
|
||||||
COMPANY shall furnish each
Investment
Company with a copy
of the
|
||||||
Bond and with any amendment
thereto, together with a copy of each formal
|
||||||
filing of claim by any other
named ASSURED and notification of the terms of
|
||||||
the settlement of each such claim
prior to the execution of such settlement.
|
||||||
(3)
|
The COMPANY shall not be
responsible for the proper application of any
|
|||||
payment made hereunder to the
first named ASSURED.
|
||||||
(4)
|
Knowledge possessed or discovery
made by any partner, director, trustee,
|
|||||
officer or supervisory employee
of any ASSURED shall constitute knowledge
|
||||||
or discovery by all the ASSUREDS
for the purposes of this Bond.
|
||||||
(5)
|
If the first named ASSURED ceases
for any reason to be covered under this
|
|||||
Bond, then the ASSURED next named
on the APPLICATION shall thereafter
|
||||||
be considered as the first named
ASSURED for the purposes of this Bond.
|
||||||
Representation
Made By
|
B.
|
The ASSURED represents that all
information it has furnished in the
|
||||
Assured
|
APPLICATION for this Bond or
otherwise is complete, true and correct. Such
|
|||||
APPLICATION and other information
constitute part of this Bond.
|
||||||
The ASSURED must promptly notify
the COMPANY of any change in any fact or
|
||||||
circumstance which materially
affects the risk assumed by the COMPANY under
|
||||||
this
Bond.
|
||||||
Any intentional
misrepresentation, omission, concealment or incorrect statement
of
|
||||||
a material fact, in the
APPLICATION or otherwise, shall be grounds for recision
of
|
||||||
this
Bond.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 5 of 19 |
General
Agreements
|
||||||
(continued)
|
||||||
Additional
Offices Or
|
C.
|
If the ASSURED, other than an
Investment
Company, while this
Bond is in force,
|
||||
Employees -
Consolidation,
|
merges or consolidates with, or
purchases or acquires assets or liabilities of
|
|||||
Merger Or
Purchase Or
|
another institution, the ASSURED
shall not have the coverage afforded under this
|
|||||
Acquisition
Of Assets Or
|
Bond for loss which
has:
|
|||||
Liabilities -
Notice To
|
(1)
|
occurred or will occur on
premises, or
|
||||
Company
|
||||||
(2)
|
been caused or will be caused by
an employee, or
|
|||||
(3)
|
arisen or will arise out of the
assets or liabilities,
|
|||||
of such institution, unless the
ASSURED:
|
||||||
a.
|
gives the COMPANY written notice
of the proposed consolidation, merger or
|
|||||
purchase or acquisition of assets
or liabilities prior to the proposed effective
|
||||||
date of such action,
and
|
||||||
b.
|
obtains the written consent of
the COMPANY to extend some or all of the
|
|||||
coverage provided by this Bond to
such additional exposure, and
|
||||||
c.
|
on obtaining such consent, pays
to the COMPANY an additional premium.
|
|||||
Change Of
Control -
|
D.
|
When the ASSURED learns of a
change in control (other than in an Investment
|
||||
Notice To
Company
|
Company), as set forth in Section 2(a)
(9) of the Investment Company Act of
|
|||||
1940,
|
the ASSURED shall within sixty
(60) days give written notice to the
|
|||||
COMPANY setting
forth:
|
||||||
(1)
|
the names of the transferors and
transferees (or the names of the beneficial
|
|||||
owners if the voting securities
are registered in another name),
|
||||||
(2)
|
the total number of voting
securities owned by the transferors and the
|
|||||
transferees (or the beneficial
owners), both immediately before and after the
|
||||||
transfer,
and
|
||||||
(3)
|
the total number of outstanding
voting securities.
|
|||||
Failure to give the required
notice shall result in termination of coverage for
any
|
||||||
loss involving a transferee, to
be effective on the date of such change in
control.
|
||||||
Court Costs
And
|
E.
|
The COMPANY will indemnify the
ASSURED for court costs and reasonable
|
||||
Attorneys’
Fees
|
attorneys' fees incurred and paid
by the ASSURED in defense, whether or not
|
|||||
successful, whether or not fully
litigated on the merits and whether or not
settled,
|
||||||
of any claim, suit or legal
proceeding with respect to which the ASSURED
would
|
||||||
be entitled to recovery under
this Bond. However, with respect to INSURING
|
||||||
CLAUSE 1., this Section shall
only apply in the event that:
|
||||||
(1)
|
an
Employee
admits
to being guilty of Larceny or
Embezzlement,
|
|||||
(2)
|
an Employee
is adjudicated to be
guilty of Larceny
or Embezzlement,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 6 of 19 |
General
Agreements
|
||||
Court Costs
And
|
(3)
|
in the absence of 1 or 2 above,
an arbitration panel agrees, after a review of
|
||
Attorneys’
Fees
|
an agreed statement of facts
between the COMPANY and the ASSURED,
|
|||
(continued)
|
that an Employee
would be found
guilty of Larceny
or Embezzlement if
|
|||
such Employee
were
prosecuted.
|
||||
The ASSURED shall promptly give
notice to the COMPANY of any such suit or
|
||||
legal proceeding and at the
request of the COMPANY shall furnish copies of
all
|
||||
pleadings and pertinent papers to
the COMPANY. The COMPANY may, at its
|
||||
sole option, elect to conduct the
defense of all or part of such legal proceeding.
|
||||
The defense by the COMPANY shall
be in the name of the ASSURED through
|
||||
attorneys selected by the
COMPANY. The ASSURED shall provide all
reasonable
|
||||
information and assistance as
required by the COMPANY for such defense.
|
||||
If the COMPANY declines to defend
the ASSURED, no settlement without the
|
||||
prior written consent of the
COMPANY nor judgment against the ASSURED shall
|
||||
determine the existence, extent
or amount of coverage under this Bond.
|
||||
If the amount demanded in any
such suit or legal proceeding is within the
|
||||
DEDUCTIBLE AMOUNT, if any, the
COMPANY shall have no liability for court
|
||||
costs and attorney's fees
incurred in defending all or part of such suit or
legal
|
||||
proceeding.
|
||||
If the amount demanded in any
such suit or legal proceeding is in excess of
the
|
||||
LIMIT OF LIABILITY stated in ITEM
2. of the DECLARATIONS for the applicable
|
||||
INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees
|
||||
incurred in defending all or part
of such suit or legal proceedings is limited to
the
|
||||
proportion of such court costs
and attorney's fees incurred that the LIMIT OF
|
||||
LIABILITY stated in ITEM 2. of
the DECLARATIONS for the applicable INSURING
|
||||
CLAUSE bears to the total of the
amount demanded in such suit or legal
|
||||
proceeding.
|
||||
If the amount demanded is any
such suit or legal proceeding is in excess of
the
|
||||
DEDUCTIBLE AMOUNT, if any, but
within the LIMIT OF LIABILITY stated in ITEM
|
||||
2.
|
of the DECLARATIONS for the
applicable INSURING CLAUSE, the
|
|||
COMPANY'S liability for court
costs and attorney's fees incurred in defending all
or
|
||||
part of such suit or legal
proceedings shall be limited to the proportion of
such
|
||||
court costs or attorney's fees
that the amount demanded that would be payable
|
||||
under this Bond after application
of the DEDUCTIBLE AMOUNT, bears to the total
|
||||
amount
demanded.
|
||||
Amounts paid by the COMPANY for
court costs and attorneys' fees shall be in
|
||||
addition to the LIMIT OF
LIABILITY stated in ITEM 2. of the
DECLARATIONS.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 7 of 19 |
Conditions
And
|
||||||||
Limitations
|
||||||||
Definitions
|
1.
|
As used in this
Bond:
|
||||||
a.
|
Computer
System means a
computer and all input, output, processing,
|
|||||||
storage, off-line media
libraries, and communication facilities which
are
|
||||||||
connected to the computer and
which are under the control and supervision
|
||||||||
of the operating system(s) or
application(s) software used by the ASSURED.
|
||||||||
b.
|
Counterfeit
means an imitation
of an actual valid original which is intended
|
|||||||
to deceive and be taken as the
original.
|
||||||||
c.
|
Custodian
means the
institution designated by an Investment
Company to
|
|||||||
maintain possession and control
of its assets.
|
||||||||
d.
|
Customer
means an individual,
corporate, partnership, trust customer,
|
|||||||
shareholder or subscriber of an
Investment
Company which has a
written
|
||||||||
agreement with the ASSURED for
Voice
Initiated Funds Transfer
|
||||||||
Instruction.
|
||||||||
e.
|
Employee
means:
|
|||||||
(1)
|
an officer of the
ASSURED,
|
|||||||
(2)
|
a natural person while in the
regular service of the ASSURED at any of
|
|||||||
the ASSURED'S premises and
compensated directly by the ASSURED
|
||||||||
through its payroll system and
subject to the United States Internal
|
||||||||
Revenue Service Form W-2 or
equivalent income reporting plans of
|
||||||||
other countries, and whom the
ASSURED has the right to control and
|
||||||||
direct both as to the result to
be accomplished and details and means
|
||||||||
by which such result is
accomplished in the performance of such
|
||||||||
service,
|
||||||||
(3)
|
a guest student pursuing studies
or performing duties in any of the
|
|||||||
ASSURED'S
premises,
|
||||||||
(4)
|
an attorney retained by the
ASSURED and an employee of such
|
|||||||
attorney while either is
performing legal services for the ASSURED,
|
||||||||
(5)
|
a natural person provided by an
employment contractor to perform
|
|||||||
employee duties for the ASSURED
under the ASSURED'S supervision
|
||||||||
at any of the ASSURED'S
premises,
|
||||||||
(6)
|
an employee of an institution
merged or consolidated with the
|
|||||||
ASSURED prior to the effective
date of this Bond,
|
||||||||
(7)
|
a director or trustee of the
ASSURED, but only while performing acts
|
|||||||
within the scope of the customary
and usual duties of any officer or
|
||||||||
other employee of the ASSURED or
while acting as a member of any
|
||||||||
committee duly elected or
appointed to examine or audit or have
|
||||||||
custody of or access to
Property
of the ASSURED,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 8 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Definitions
|
(8)
|
each natural person, partnership
or corporation authorized by written
|
||||
(continued)
|
agreement with the ASSURED to
perform services as electronic data
|
|||||
processor of checks or other
accounting records related to such checks but
|
||||||
only while such person,
partnership or corporation is actually
performing
|
||||||
such services and
not:
|
||||||
a.
|
creating, preparing, modifying or
maintaining the ASSURED'S
|
|||||
computer software or programs,
or
|
||||||
b.
|
acting as transfer agent or in
any other agency capacity in issuing
|
|||||
checks, drafts or securities for
the ASSURED,
|
||||||
(9)
|
any partner, officer or employee
of an investment advisor, an underwriter
|
|||||
(distributor), a transfer agent
or shareholder accounting recordkeeper, or an
|
||||||
administrator, for an
Investment
Company while
performing acts coming
|
||||||
within the scope of the customary
and usual duties of an officer or employee
|
||||||
of an Investment
Company or acting as
a member of any committee duly
|
||||||
elected or appointed to examine,
audit or have custody of or access to
|
||||||
Property
of
an Investment
Company.
|
||||||
The term Employee
shall not include
any partner, officer or employee of a
|
||||||
transfer agent, shareholder
accounting recordkeeper or administrator:
|
||||||
a.
|
which is not an "affiliated
person" (as defined in Section 2(a) of the
|
|||||
Investment Company Act of 1940)
of an Investment
Company or
of
|
||||||
the investment advisor or
underwriter (distributor) of such Investment
|
||||||
Company,
or
|
||||||
b.
|
which is a "bank" (as defined in
Section 2(a) of the Investment
|
|||||
Company Act of
1940).
|
||||||
This Bond does not afford
coverage in favor of the employers of
|
||||||
persons as set forth in e. (4),
(5) and (8) above, and upon payment to
|
||||||
the ASSURED by the COMPANY
resulting directly from Larceny
or
|
||||||
Embezzlement
committed by any of
the partners, officers or
|
||||||
employees of such employers,
whether acting alone or in collusion with
|
||||||
others, an assignment of such of
the ASSURED'S rights and causes of
|
||||||
action as it may have against
such employers by reason of such acts
|
||||||
so committed shall, to the extent
of such payment, be given by the
|
||||||
ASSURED to the COMPANY, and the
ASSURED shall execute all
|
||||||
papers necessary to secure to the
COMPANY the rights provided for
|
||||||
herein.
|
||||||
Each employer of persons as set
forth in e.(4), (5) and (8) above and the
|
||||||
partners, officers and other
employees of such employers shall collectively
|
||||||
be deemed to be one person for
all the purposes of this Bond; excepting,
|
||||||
however, the fifth paragraph of
Section 13.
|
||||||
Independent contractors not
specified in e.(4), (5) or (8) above,
|
||||||
intermediaries, agents, brokers
or other representatives of the same general
|
||||||
character shall not be considered
Employees.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 9 of 19 |
Conditions
And
|
||||
Limitations
|
||||
Definitions
|
f.
|
Forgery
means the signing of
the name of another natural person with the
|
||
(continued)
|
intent to deceive but does not
mean a signature which consists in whole or in
|
|||
part of one's own name, with or
without authority, in any capacity for any
|
||||
purpose.
|
||||
g.
|
Investment
Company means any
investment company registered under the
|
|||
Investment Company Act of 1940
and listed under the NAME OF ASSURED
|
||||
on the
DECLARATIONS.
|
||||
h.
|
Items
of Deposit means one
or more checks or drafts drawn upon a
|
|||
financial institution in the
United States of America.
|
||||
i.
|
Larceny
or Embezzlement means larceny or embezzlement as
defined in
|
|||
Section 37 of the Investment
Company Act of 1940.
|
||||
j.
|
Property
means money, revenue
and other stamps; securities; including any
|
|||
note, stock, treasury stock,
bond, debenture, evidence of indebtedness,
|
||||
certificate of deposit,
certificate of interest or participation in any
profit-
|
||||
sharing agreement, collateral
trust certificate, preorganization certificate
or
|
||||
subscription, transferable share,
investment contract, voting trust certificate,
|
||||
certificate of deposit for a
security, fractional undivided interest in oil, gas,
or
|
||||
other mineral rights, any
interest or instruments commonly known as a
|
||||
security under the Investment
Company Act of 1940, any other certificate of
|
||||
interest or participation in,
temporary or interim certificate for, receipt
for,
|
||||
guarantee of, or warrant or right
to subscribe to or purchase any of the
|
||||
foregoing; bills of exchange;
acceptances; checks; withdrawal orders; money
|
||||
orders; travelers' letters of
credit; bills of lading; abstracts of title;
insurance
|
||||
policies, deeds, mortgages on
real estate and/or upon chattels and interests
|
||||
therein; assignments of such
policies, deeds or mortgages; other valuable
|
||||
papers, including books of
accounts and other records used by the
|
||||
ASSURED in the conduct of its
business (but excluding all electronic data
|
||||
processing records); and, all
other instruments similar to or in the nature of
|
||||
the foregoing in which the
ASSURED acquired an interest at the time of the
|
||||
ASSURED'S consolidation or merger
with, or purchase of the principal
|
||||
assets of, a predecessor or which
are held by the ASSURED for any
|
||||
purpose or in any capacity and
whether so held gratuitously or not and
|
||||
whether or not the ASSURED is
liable therefor.
|
||||
k.
|
Relative
means the spouse of
an Employee
or partner of the
ASSURED
|
|||
and any unmarried child supported
wholly by, or living in the home of, such
|
||||
Employee
or partner and being
related to them by blood, marriage or legal
|
||||
guardianship.
|
||||
l.
|
Securities,
documents or other written instruments means
original
|
|||
(including original counterparts)
negotiable or non-negotiable instruments, or
|
||||
assignments thereof, which in and
of themselves represent an equitable
|
||||
interest, ownership, or debt and
which are in the ordinary course of business
|
||||
transferable by delivery of such
instruments with any necessary
|
||||
endorsements or
assignments.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 10 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Definitions
|
m.
|
Subsidiary
means any
organization that, at the inception date of this
Bond,
|
||||
(continued)
|
is named in the APPLICATION or is
created during the BOND PERIOD and
|
|||||
of which more than fifty percent
(50%) of the outstanding securities or voting
|
||||||
rights representing the present
right to vote for election of directors is owned
|
||||||
or controlled by the ASSURED
either directly or through one or more of its
|
||||||
subsidiaries.
|
||||||
n.
|
Transportation
Company means any
organization which provides its own
|
|||||
or its leased vehicles for
transportation or which provides freight
forwarding
|
||||||
or air express
services.
|
||||||
o.
|
Voice
Initiated Election means any election concerning
dividend options
|
|||||
available to Investment
Company shareholders
or subscribers which is
|
||||||
requested by voice over the
telephone.
|
||||||
p.
|
Voice
Initiated Redemption means any redemption of shares
issued by an
|
|||||
Investment
Company which is
requested by voice over the telephone.
|
||||||
q.
|
Voice
Initiated Funds Transfer Instruction means
any Voice
Initiated
|
|||||
Redemption
or
Voice
Initiated Election.
|
||||||
For the purposes of these
definitions, the singular includes the plural and
the
|
||||||
plural includes the singular,
unless otherwise indicated.
|
||||||
General
Exclusions -
|
2.
|
This bond does
not directly or indirectly cover:
|
||||
Applicable to
All Insuring
|
a.
|
loss not reported to the COMPANY
in writing within sixty (60) days after
|
||||
Clauses
|
termination of this Bond as an
entirety;
|
|||||
b.
|
loss due to riot or civil
commotion outside the United States of America
and
|
|||||
Canada, or any loss due to
military, naval or usurped power, war or
|
||||||
insurrection. This Section 2.b.,
however, shall not apply to loss which occurs
|
||||||
in transit in the circumstances
recited in INSURING CLAUSE 3., provided
|
||||||
that when such transit was
initiated there was no knowledge on the part of
|
||||||
any person acting for the ASSURED
of such riot, civil commotion, military,
|
||||||
naval or usurped power, war or
insurrection;
|
||||||
c.
|
loss resulting from the effects
of nuclear fission or fusion or radioactivity;
|
|||||
d.
|
loss of potential income
including, but not limited to, interest and
dividends
|
|||||
not realized by the ASSURED or by
any customer of the ASSURED;
|
||||||
e.
|
damages of any type for which the
ASSURED is legally liable, except
|
|||||
compensatory damages, but not
multiples thereof, arising from a loss
|
||||||
covered under this
Bond;
|
||||||
f.
|
costs, fees and expenses incurred
by the ASSURED in establishing the
|
|||||
existence of or amount of loss
under this Bond, except to the extent covered
|
||||||
under INSURING CLAUSE
11.;
|
||||||
g.
|
loss resulting from indirect or
consequential loss of any
nature;
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 11 of 19 |
Conditions
And
|
||||||||||
Limitations
|
||||||||||
General
Exclusions -
|
h.
|
loss resulting from dishonest
acts by any member of the Board of Directors
|
||||||||
Applicable to
All Insuring
|
or Board of Trustees of the
ASSURED who is not an Employee,
acting
|
|||||||||
Clauses
|
alone or in collusion with
others;
|
|||||||||
(continued)
|
i.
|
loss, or that part of any loss,
resulting solely from any violation by the
|
||||||||
ASSURED or by any Employee:
|
||||||||||
(1)
|
of any law
regulating:
|
|||||||||
a.
|
the issuance, purchase or sale of
securities,
|
|||||||||
b.
|
securities transactions on
security or commodity exchanges or
|
|||||||||
the over the counter
market,
|
||||||||||
c.
|
investment
companies,
|
|||||||||
d.
|
investment advisors,
or
|
|||||||||
(2)
|
of any rule or regulation made
pursuant to any such law; or
|
|||||||||
j.
|
loss of confidential information,
material or data;
|
|||||||||
k.
|
loss resulting from voice
requests or instructions received over the
|
|||||||||
telephone, provided however, this
Section 2.k. shall not apply to INSURING
|
||||||||||
CLAUSE 7. or
9.
|
||||||||||
Specific
Exclusions -
|
3.
|
This Bond does
not directly or indirectly cover:
|
||||||||
Applicable To
All Insuring
|
a.
|
loss caused by an Employee, provided, however, this Section
3.a. shall not
|
||||||||
Clauses
Except Insuring
|
apply to loss covered under
INSURING CLAUSE 2. or 3. which results
|
|||||||||
Clause
1.
|
directly from misplacement,
mysterious unexplainable disappearance, or
|
|||||||||
damage or destruction of
Property;
|
||||||||||
b.
|
loss through the surrender of
property away from premises of the ASSURED
|
|||||||||
as a result of a
threat:
|
||||||||||
(1)
|
to do bodily harm to any natural
person, except loss of Property
in
|
|||||||||
transit in the custody of any
person acting as messenger of the
|
||||||||||
ASSURED, provided that when such
transit was initiated there was no
|
||||||||||
knowledge by the ASSURED of any
such threat, and provided further
|
||||||||||
that this Section 3.b. shall not
apply to INSURING CLAUSE 7., or
|
||||||||||
(2)
|
to do damage to the premises or
Property
of the
ASSURED;
|
|||||||||
c.
|
loss resulting from payments made
or withdrawals from any account
|
|||||||||
involving erroneous credits to
such account;
|
||||||||||
d.
|
loss involving Items
of Deposit which are
not finally paid for any reason
|
|||||||||
provided however, that this
Section 3.d. shall not apply to INSURING
|
||||||||||
CLAUSE
10.;
|
||||||||||
e.
|
loss of property while in the
mail;
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 12 of 19 |
Conditions
And
|
||||||||||||||
Limitations
|
||||||||||||||
Specific
Exclusions -
|
f.
|
loss resulting from the failure
for any reason of a financial or depository
|
||||||||||||
Applicable To
All Insuring
|
institution, its receiver or
other liquidator to pay or deliver funds or
other
|
|||||||||||||
Clauses
Except Insuring
|
Property
to the ASSURED
provided further that this Section 3.f. shall
not
|
|||||||||||||
Clause
1.
|
apply to loss of Property
resulting directly
from robbery, burglary,
|
|||||||||||||
(continued)
|
misplacement,
|
mysterious
|
unexplainable
|
disappearance,
|
damage,
|
|||||||||
destruction or removal from the
possession, custody or control of the
|
||||||||||||||
ASSURED.
|
||||||||||||||
g.
|
loss of Property
while in the custody
of a Transportation
Company,
|
|||||||||||||
provided however, that this
Section 3.g. shall not apply to INSURING
|
||||||||||||||
CLAUSE 3.;
|
||||||||||||||
h.
|
loss resulting from entries or
changes made by a natural person with
|
|||||||||||||
authorized access to a
Computer
System who acts in
good faith on
|
||||||||||||||
instructions, unless such
instructions are given to that person by a
software
|
||||||||||||||
contractor or its partner,
officer, or employee authorized by the ASSURED
to
|
||||||||||||||
design, develop, prepare, supply,
service, write or implement programs for
|
||||||||||||||
the ASSURED's Computer
System;
or
|
||||||||||||||
i.
|
loss resulting directly or
indirectly from the input of data into a Computer
|
|||||||||||||
System
terminal, either on
the premises of the customer of the ASSURED
|
||||||||||||||
or under the control of such a
customer, by a customer or other person who
|
||||||||||||||
had authorized access to the
customer's authentication mechanism.
|
||||||||||||||
Specific
Exclusions -
|
4.
|
This bond does
not directly or indirectly cover:
|
||||||||||||
Applicable To
All Insuring
|
a.
|
loss resulting from the complete
or partial non-payment of or default on any
|
||||||||||||
Clauses
Except Insuring
|
loan whether such loan was
procured in good faith or through trick,
artifice,
|
|||||||||||||
Clauses 1.,
4., And 5.
|
fraud or false pretenses;
provided, however, this Section 4.a. shall not
apply
|
|||||||||||||
to INSURING CLAUSE
8.;
|
||||||||||||||
b.
|
loss resulting from forgery or
any alteration;
|
|||||||||||||
c.
|
loss involving a counterfeit
provided, however, this Section 4.c. shall not
|
|||||||||||||
apply to INSURING CLAUSE 5. or
6.
|
||||||||||||||
Limit Of
Liability/Non-
|
5.
|
At all times prior to termination
of this Bond, this Bond shall continue in force
for
|
||||||||||||
Reduction And
Non-
|
the limit stated in the
applicable sections of ITEM 2. of the
DECLARATIONS,
|
|||||||||||||
Accumulation
Of Liability
|
notwithstanding any previous loss
for which the COMPANY may have paid or be
|
|||||||||||||
liable to pay under this Bond
provided, however, that the liability of the
COMPANY
|
||||||||||||||
under this Bond with respect to
all loss resulting from:
|
||||||||||||||
a.
|
any one act of burglary, robbery
or hold-up, or attempt thereat, in which no
|
|||||||||||||
Employee
is concerned or
implicated, or
|
||||||||||||||
b.
|
any one unintentional or
negligent act on the part of any one person
|
|||||||||||||
resulting in damage to or
destruction or misplacement of Property, or
|
||||||||||||||
c.
|
all acts, other than those
specified in a. above, of any one person,
or
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 13 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Limit Of
Liability/Non-
|
d.
|
any one casualty or event other
than those specified in a., b., or c. above,
|
||||
Reduction And
Non-
|
shall be deemed to be one loss
and shall be limited to the applicable LIMIT OF
|
|||||
Accumulation
Of Liability
|
LIABILITY stated in ITEM 2. of
the DECLARATIONS of this Bond irrespective of
|
|||||
(continued)
|
the total amount of such loss or
losses and shall not be cumulative in amounts
|
|||||
from year to year or from period
to period.
|
||||||
All acts, as specified in c.
above, of any one person which
|
||||||
i.
|
directly or indirectly aid in any
way wrongful acts of any other person or
|
|||||
persons,
or
|
||||||
ii.
|
permit the continuation of
wrongful acts of any other person or persons
|
|||||
whether such acts are committed
with or without the knowledge of the wrongful
|
||||||
acts of the person so aided, and
whether such acts are committed with or without
|
||||||
the intent to aid such other
person, shall be deemed to be one loss with the
|
||||||
wrongful acts of all persons so
aided.
|
||||||
Discovery
|
6.
|
This Bond applies only to loss
first discovered by an officer of the ASSURED
|
||||
during the BOND PERIOD. Discovery
occurs at the earlier of an officer of the
|
||||||
ASSURED being aware
of:
|
||||||
a.
|
facts which may subsequently
result in a loss of a type covered by this Bond,
|
|||||
or
|
||||||
b.
|
an actual or potential claim in
which it is alleged that the ASSURED is liable
|
|||||
to a third
party,
|
||||||
regardless of when the act or
acts causing or contributing to such loss
occurred,
|
||||||
even though the amount of loss
does not exceed the applicable DEDUCTIBLE
|
||||||
AMOUNT, or the exact amount or
details of loss may not then be known.
|
||||||
Notice To
Company -
|
7.
|
a.
|
The ASSURED shall give the
COMPANY notice thereof at the earliest
|
|||
Proof - Legal
Proceedings
|
practicable moment, not to exceed
sixty (60) days after discovery of loss, in
|
|||||
Against
Company
|
an amount that is in excess of
50% of the applicable DEDUCTIBLE
|
|||||
AMOUNT, as stated in ITEM 2. of
the DECLARATIONS.
|
||||||
b.
|
The ASSURED shall furnish to the
COMPANY proof of loss, duly sworn to,
|
|||||
with full particulars within six
(6) months after such discovery.
|
||||||
c.
|
Securities listed in a proof of
loss shall be identified by certificate or bond
|
|||||
numbers, if issued with
them.
|
||||||
d.
|
Legal proceedings for the
recovery of any loss under this Bond shall not
be
|
|||||
brought prior to the expiration
of sixty (60) days after the proof of loss is
filed
|
||||||
with the COMPANY or after the
expiration of twenty-four (24) months from
|
||||||
the discovery of such
loss.
|
||||||
e.
|
This Bond affords coverage only
in favor of the ASSURED. No claim, suit,
|
|||||
action or legal proceedings shall
be brought under this Bond by anyone
|
||||||
other than the
ASSURED.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 14 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Notice To
Company -
|
f.
|
Proof
of loss involving Voice
Initiated Funds Transfer Instruction shall
|
||||
Proof - Legal
Proceedings
|
include electronic recordings of
such instructions.
|
|||||
Against
Company
|
||||||
(continued)
|
||||||
Deductible
Amount
|
8.
|
The COMPANY shall not be liable
under any INSURING CLAUSES of this Bond
|
||||
on account of loss unless the
amount of such loss, after deducting the net
amount
|
||||||
of all reimbursement and/or
recovery obtained or made by the ASSURED, other
|
||||||
than from any Bond or policy of
insurance issued by an insurance company and
|
||||||
covering such loss, or by the
COMPANY on account thereof prior to payment by
|
||||||
the COMPANY of such loss, shall
exceed the DEDUCTIBLE AMOUNT set forth in
|
||||||
ITEM 3. of the DECLARATIONS, and
then for such excess only, but in no event
|
||||||
for more than the applicable
LIMITS OF LIABILITY stated in ITEM 2. of the
|
||||||
DECLARATIONS.
|
||||||
There shall be no deductible
applicable to any loss under INSURING CLAUSE 1.
|
||||||
sustained by any Investment
Company.
|
||||||
Valuation
|
9.
|
BOOKS OF
ACCOUNT OR OTHER RECORDS
|
||||
The value of any loss of
Property
consisting of books
of account or other records
|
||||||
used by the ASSURED in the
conduct of its business shall be the amount paid
by
|
||||||
the ASSURED for blank books,
blank pages, or other materials which replace
the
|
||||||
lost books of account or other
records, plus the cost of labor paid by the
|
||||||
ASSURED for the actual
transcription or copying of data to reproduce such
books
|
||||||
of account or other
records.
|
||||||
The value of any loss of
Property
other than books of
account or other records
|
||||||
used by the ASSURED in the
conduct of its business, for which a claim is
made
|
||||||
shall be determined by the
average market value of such Property
on
the
|
||||||
business day immediately
preceding discovery of such loss provided,
however,
|
||||||
that the value of any
Property
replaced by the
ASSURED with the consent of the
|
||||||
COMPANY and prior to the
settlement of any claim for such Property
shall be
the
|
||||||
actual market value at the time
of replacement.
|
||||||
In the case of a loss of interim
certificates, warrants, rights or other securities,
the
|
||||||
production of which is necessary
to the exercise of subscription, conversion,
|
||||||
redemption or deposit privileges,
the value of them shall be the market value of
|
||||||
such privileges immediately
preceding their expiration if said loss is not
discovered
|
||||||
until after their expiration. If
no market price is quoted for such Property
or
for
|
||||||
such privileges, the value shall
be fixed by agreement between the parties.
|
||||||
OTHER
PROPERTY
|
||||||
The value of any loss of
Property, other than as stated above,
shall be the actual
|
||||||
cash value or the cost of
repairing or replacing such Property
with Property
of
|
||||||
like quality and value, whichever
is less.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 15 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
(continued)
|
||||||
Securities
Settlement
|
10.
|
In the event of a loss of
securities covered under this Bond, the COMPANY
may,
|
||||
at its sole discretion, purchase
replacement securities, tender the value of the
|
||||||
securities in money, or issue its
indemnity to effect replacement securities.
|
||||||
The indemnity required from the
ASSURED under the terms of this Section
|
||||||
against all loss, cost or expense
arising from the replacement of securities by
the
|
||||||
COMPANY'S indemnity shall
be:
|
||||||
a.
|
for securities having a value
less than or equal to the applicable
|
|||||
DEDUCTIBLE AMOUNT - one hundred
(100%) percent;
|
||||||
b.
|
for securities having a value in
excess of the DEDUCTIBLE AMOUNT but
|
|||||
within the applicable LIMIT OF
LIABILITY - the percentage that the
|
||||||
DEDUCTIBLE AMOUNT bears to the
value of the securities;
|
||||||
c.
|
for securities having a value
greater than the applicable LIMIT OF LIABILITY
|
|||||
- the percentage that the
DEDUCTIBLE AMOUNT and portion in excess of
|
||||||
the applicable LIMIT OF LIABILITY
bears to the value of the securities.
|
||||||
The value referred to in Section
10.a., b., and c. is the value in accordance
with
|
||||||
Section 9, VALUATION, regardless
of the value of such securities at the time the
|
||||||
loss under the COMPANY'S
indemnity is sustained.
|
||||||
The COMPANY is not required to
issue its indemnity for any portion of a loss of
|
||||||
securities which is not covered
by this Bond; however, the COMPANY may do so
|
||||||
as a courtesy to the ASSURED and
at its sole discretion.
|
||||||
The ASSURED shall pay the
proportion of the Company's premium charge for
the
|
||||||
Company's indemnity as set forth
in Section 10.a., b., and c. No portion of the
|
||||||
LIMIT OF LIABILITY shall be used
as payment of premium for any indemnity
|
||||||
purchased by the ASSURED to
obtain replacement securities.
|
||||||
Subrogation -
Assignment - 11.
|
In the event of a payment under
this Bond, the COMPANY shall be subrogated to
|
|||||
Recovery
|
all of the ASSURED'S rights of
recovery against any person or entity to the
extent
|
|||||
of such payment. On request, the
ASSURED shall deliver to the COMPANY an
|
||||||
assignment of the ASSURED'S
rights, title and interest and causes of action
|
||||||
against any person or entity to
the extent of such payment.
|
||||||
Recoveries, whether effected by
the COMPANY or by the ASSURED, shall be
|
||||||
applied net of the expense of
such recovery in the following order:
|
||||||
a.
|
first, to the satisfaction of the
ASSURED'S loss which would otherwise have
|
|||||
been paid but for the fact that
it is in excess of the applicable LIMIT OF
|
||||||
LIABILITY,
|
||||||
b.
|
second, to the COMPANY in
satisfaction of amounts paid in settlement of
|
|||||
the ASSURED'S
claim,
|
||||||
c.
|
third, to the ASSURED in
satisfaction of the applicable DEDUCTIBLE
|
|||||
AMOUNT,
and
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 16 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Subrogation -
Assignment -
|
d.
|
fourth, to the ASSURED in
satisfaction of any loss suffered by the
|
||||
Recovery
|
ASSURED which was not covered
under this Bond.
|
|||||
(continued)
|
Recovery from reinsurance or
indemnity of the COMPANY shall not be deemed a
|
|||||
recovery under this
section.
|
||||||
Cooperation
Of Assured
|
12.
|
At the COMPANY'S request and at
reasonable times and places designated by
|
||||
the COMPANY, the ASSURED
shall:
|
||||||
a.
|
submit to examination by the
COMPANY and subscribe to the same under
|
|||||
oath,
|
||||||
b.
|
produce for the COMPANY'S
examination all pertinent records, and
|
|||||
c.
|
cooperate with the COMPANY in all
matters pertaining to the loss.
|
|||||
The ASSURED shall execute all
papers and render assistance to secure to the
|
||||||
COMPANY the rights and causes of
action provided for under this Bond. The
|
||||||
ASSURED shall do nothing after
loss to prejudice such rights or causes of
action.
|
||||||
Termination
|
13.
|
If the Bond is for a sole
ASSURED, it shall not be terminated unless written
notice
|
||||
shall have been given by the
acting party to the affected party and to the
|
||||||
Securities and Exchange
Commission, Washington, D.C., not less than sixty
(60)
|
||||||
days prior to the effective date
of such termination.
|
||||||
If the Bond is for a joint
ASSURED, it shall not be terminated unless written
notice
|
||||||
shall have been given by the
acting party to the affected party, and by the
|
||||||
COMPANY to all ASSURED
Investment
Companies and to the
Securities and
|
||||||
Exchange Commission, Washington,
D.C., not less than sixty (60) days prior to
|
||||||
the effective date of such
termination.
|
||||||
This Bond will terminate as to
any one ASSURED, other than an Investment
|
||||||
Company:
|
||||||
a.
|
immediately on the taking over of
such ASSURED by a receiver or other
|
|||||
liquidator or by State or Federal
officials, or
|
||||||
b.
|
immediately on the filing of a
petition under any State or Federal statute
|
|||||
relative to bankruptcy or
reorganization of the ASSURED, or assignment for
|
||||||
the benefit of creditors of the
ASSURED, or
|
||||||
c.
|
immediately upon such ASSURED
ceasing to exist, whether through merger
|
|||||
into another entity, disposition
of all of its assets or otherwise.
|
||||||
The COMPANY shall refund the
unearned premium computed at short rates in
|
||||||
accordance with the standard
short rate cancellation tables if terminated by
the
|
||||||
ASSURED or pro rata if terminated
for any other reason.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 17 of 19 |
Conditions
And
|
||||||
Limitations
|
||||||
Termination
|
If any partner, director,
trustee, or officer or supervisory employee of
an
|
|||||
(continued)
|
ASSURED not acting in collusion
with an Employee
learns of any
dishonest act
|
|||||
committed by such Employee
at any time, whether
in the employment of the
|
||||||
ASSURED or otherwise, whether or
not such act is of the type covered under this
|
||||||
Bond, and whether against the
ASSURED or any other person or entity, the
|
||||||
ASSURED:
|
||||||
a.
|
shall immediately remove such
Employee
from a position that
would enable
|
|||||
such Employee
to cause the ASSURED
to suffer a loss covered by this
|
||||||
Bond;
and
|
||||||
b.
|
within forty-eight (48) hours of
learning that an Employee
has
committed
|
|||||
any dishonest act, shall notify
the COMPANY, of such action and provide full
|
||||||
particulars of such dishonest
act.
|
||||||
The COMPANY may terminate
coverage as respects any Employee
sixty
(60)
|
||||||
days after written notice is
received by each ASSURED Investment
Company
|
||||||
and the Securities and Exchange
Commission, Washington, D.C. of its desire to
|
||||||
terminate this Bond as to such
Employee.
|
||||||
Other
Insurance
|
14.
|
Coverage under this Bond shall
apply only as excess over any valid and
collectible
|
||||
insurance, indemnity or
suretyship obtained by or on behalf of:
|
||||||
a.
|
the
ASSURED,
|
|||||
b.
|
a
Transportation
Company,
or
|
|||||
c.
|
another entity on whose premises
the loss occurred or which employed the
|
|||||
person causing the loss or
engaged the messenger conveying the Property
|
||||||
involved.
|
||||||
Conformity
|
15.
|
If any limitation within this
Bond is prohibited by any law controlling this
Bond's
|
||||
construction, such limitation
shall be deemed to be amended so as to equal the
|
||||||
minimum period of limitation
provided by such law.
|
||||||
Change or
Modification
|
16.
|
This Bond or any instrument
amending or affecting this Bond may not be
changed
|
||||
or modified orally. No change in
or modification of this Bond shall be effective
|
||||||
except when made by written
endorsement to this Bond signed by an authorized
|
||||||
representative of the
COMPANY.
|
||||||
If this Bond is for a sole
ASSURED, no change or modification which would
|
||||||
adversely affect the rights of
the ASSURED shall be effective prior to sixty
(60)
|
||||||
days after written notice has
been furnished to the Securities and Exchange
|
||||||
Commission, Washington, D.C., by
the acting party.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 18 of 19 |
Conditions
And
|
||
Limitations
|
||
Change or
Modification
|
If this Bond is for a joint
ASSURED, no charge or modification which would
|
|
(continued)
|
adversely affect the rights of
the ASSURED shall be effective prior to sixty
(60)
|
|
days after written notice has
been furnished to all insured Investment
Companies
|
||
and to the Securities and
Exchange Commission, Washington, D.C., by the
|
||
COMPANY.
|
ICAP Bond
(5-98)
|
|
Form 17-02-1421 (Ed. 5-98) Page 19 of 19 |
FEDERAL
INSURANCE COMPANY
|
||||||||
Endorsement
No.:
|
1 Bond
|
|||||||
Bond
Number:
|
82047607
|
|||||||
NAME OF ASSURED: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||||||
STOP PAYMENT ORDER OR REFUSAL TO PAY CHECK ENDORSEMENT | ||||||||
It is agreed that this Bond is
amended as follows:
|
||||||||
1.
|
By adding the following INSURING
CLAUSE:
|
|||||||
“12.
|
Stop Payment Order or Refusal to
Pay Check
|
|||||||
Loss resulting directly from the
ASSURED being legally liable to pay compensatory
damages
|
||||||||
for:
|
||||||||
a.
|
complying or failing to comply with notice from any customer of the ASSURED or any | |||||||
authorized representative of such customer, to stop payment on any check or draft made or | ||||||||
drawn upon or against the ASSURED by such customer or by any authorized representative | ||||||||
of such customer, or | ||||||||
b.
|
refusing to pay any check or draft made or drawn upon or against the ASSURED by any | |||||||
customer of the ASSURED or by any authorized representative of such customer.” | ||||||||
2.
|
By adding the following Specific
Exclusion:
|
|||||||
“Section 4.A. Specific Exclusions
– Applicable to INSURING CLAUSE 12
|
||||||||
This Bond does
not directly or indirectly cover:
|
||||||||
a.
|
liability assumed by the ASSURED
by agreement under any contract, unless such liability
would
|
|||||||
have attached to the ASSURED even
in the absence of such agreement,
|
||||||||
b.
|
loss arising out
of:
|
|||||||
(1)
|
libel, slander, wrongful entry, eviction, defamation, false arrest, false imprisonment, | |||||||
malicious prosecution, assault or battery, | ||||||||
(2)
|
sickness, disease, physical bodily harm, mental or emotional distress or anguish, or death of | |||||||
any person, or | ||||||||
(3)
|
discrimination.” | |||||||
This Endorsement applies to loss
discovered after 12:01 a.m. on July 30, 2008.
|
||||||||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
ICAP Bond Form 17-02-2365 (Ed. 10-00) |
FEDERAL
INSURANCE COMPANY
|
||||||||
Endorsement No.: 2
Bond
|
||||||||
Bond
Number:
|
82047607
|
|||||||
NAME OF ASSURED: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||||||
UNAUTHORIZED
SIGNATURE ENDORSEMENT
|
||||||||
It is agreed that this Bond is
amended as follows:
|
||||||||
1.
|
By adding the following INSURING
CLAUSE:
|
|||||||
13.
|
Unauthorized
Signature
|
|||||||
Loss resulting directly from the
ASSURED having accepted, paid or cashed any check
or
|
||||||||
Withdrawal
Order made or drawn
on or against the account of the ASSURED’S customer
which
|
||||||||
bears the signature or
endorsement of one other than a person whose name and signature is
on
|
||||||||
file with the ASSURED as a
signatory on such account.
|
||||||||
It shall be a condition precedent
to the ASSURED'S right of recovery under this
INSURING
|
||||||||
CLAUSE that the ASSURED shall
have on file signatures of all the persons who are signatories
on
|
||||||||
such
account.
|
||||||||
2.
|
By adding to Section 1.,
Definitions, the following:
|
|||||||
r.
|
Instruction
means a written
order to the issuer of an Uncertificated
Security requesting
that the
|
|||||||
transfer, pledge or release from
pledge of the specified Uncertificated
Security be
registered.
|
||||||||
s.
|
Uncertificated
Security means a
share, participation or other interest in property of or
an
|
|||||||
enterprise of the issuer or an
obligation of the issuer, which is:
|
||||||||
(1)
|
not represented by an instrument and the transfer of which is registered on books maintained | |||||||
for that purpose by or on behalf of the issuer, and | ||||||||
(2)
|
of a type commonly dealt in on securities exchanges or markets, and | |||||||
(3)
|
either one of a class or series or by its terms divisible into a class or series of shares, | |||||||
participations, interests or obligations. |
ICAP Bond
|
|
Form 17-02-5602 (Ed. 10-03) Page 1 |
t.
|
Withdrawal
Order means a
non-negotiable instrument, other than an Instruction, signed by
a
|
|
customer of the ASSURED
authorizing the ASSURED to debit the customer’s account in
the
|
||
amount of funds stated
therein.
|
||
This Endorsement applies to loss
discovered after 12:01 a.m. on July 30, 2008.
|
||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-5602 (Ed. 10-03) Page 2 |
FEDERAL
INSURANCE COMPANY
|
||||||
Endorsement No.: 3
Bond
|
||||||
Bond
Number:
|
82047607
|
|||||
NAME OF ASSURED: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||||
NEW YORK
AMENDATORY ENDORSEMENT
|
||||||
It is agreed that this Bond is
amended as follows:
|
||||||
1.
|
By adding to Section 13,
Termination, the following:
|
|||||
Bonds In Effect Sixty (60) Days
Or Less
|
||||||
If this Bond has been in effect
for less than sixty (60) days and if it is not a renewal Bond, the
COMPANY
|
||||||
may terminate it for any reason
by mailing or delivering to the ASSURED and to the authorized agent
or
|
||||||
broker, if any, written notice of
termination at least sixty (60) days before the effective date
of
|
||||||
termination.
|
||||||
Bonds In Effect More Than Sixty
(60) Days
|
||||||
If this Bond has been in effect
for sixty (60) days or more, or if it is a renewal of a Bond issued by
the
|
||||||
COMPANY, it may be terminated by
the COMPANY by mailing or delivering to the ASSURED and
to
|
||||||
the authorized agent or broker,
if any, written notice of termination at least sixty (60) days before
the
|
||||||
effective date of termination.
Furthermore, when the Bond is a renewal or has been in effect for
sixty
|
||||||
(60) days or more, the COMPANY
may terminate only for one or more of the reasons stated in
1-7
|
||||||
below.
|
||||||
1.
|
Nonpayment of premium; | |||||
2.
|
Conviction of a crime arising out of acts increasing the hazard insured against ; | |||||
3.
|
Discovery of fraud or material misrepresentation in the obtaining of this Bond or in the presentation | |||||
of a claim thereunder; | ||||||
4.
|
Violation of any provision of this Bond that substantially and materially increases the hazard | |||||
insured against, and which occurred subsequent to inception of the current BOND PERIOD; | ||||||
5.
|
If applicable, material physical change in the property insured, occurring after issuance or last | |||||
annual renewal anniversary date of this Bond, which results in the property becoming uninsurable | ||||||
in accordance with the COMPANY's objective, uniformly applied underwriting standards in effect at | ||||||
the time this Bond was issued or last renewed; or material change in the nature or extent of this | ||||||
Bond occurring after issuance or last annual renewal anniversary date of this Bond, which causes | ||||||
the risk of loss to be substantially and materially increased beyond that contemplated at the time | ||||||
this Bond was issued or last renewed; |
ICAP Bond - New
York
|
|
Form 17-02-2863 (Rev. 7-03) Page 1 |
6.
|
A determination by the
Superintendent of Insurance that continuation of the present
premium
|
|||||
volume of the COMPANY would
jeopardize the COMPANY's policyholders, creditors or the
public,
|
||||||
or continuing the Bond itself
would place the COMPANY in violation of any provision of the
New
|
||||||
York Insurance Code;
or
|
||||||
7.
|
Where the COMPANY has reason to
believe, in good faith and with sufficient cause, that there is
a
|
|||||
probable risk or danger that the
Property
will be destroyed by
the ASSURED for the purpose of
|
||||||
collecting the insurance
proceeds.
|
||||||
Notice Of
Termination
|
||||||
Notice of termination under this
SECTION shall be mailed to the ASSURED and to the authorized
agent
|
||||||
or broker, if any, at the address
shown on the DECLARATIONS of this Bond. The COMPANY,
however,
|
||||||
may deliver any notice instead of
mailing it.
|
||||||
Return Premium
Calculations
|
||||||
The COMPANY shall refund the
unearned premium computed pro rata if this Bond is terminated by
the
|
||||||
COMPANY."
|
||||||
2.
|
By adding a new Section reading
as follows:
|
|||||
"Section 17. Election To
Conditionally Renew / Nonrenew This Bond
|
||||||
Conditional
Renewal
|
||||||
If the COMPANY conditionally
renews this Bond subject to:
|
||||||
1.
|
Change of limits of liability
;
|
|||||
2.
|
Change in type of
coverage;
|
|||||
3.
|
Reduction of
coverage;
|
|||||
4.
|
Increased
deductible;
|
|||||
5.
|
Addition of exclusion;
or
|
|||||
6.
|
Increased premiums in excess of
10%, exclusive of any premium increase due to
and
|
|||||
commensurate with insured value
added; or as a result of experience rating, retrospective rating
or
|
||||||
audit; the COMPANY shall send
notice as provided in Notices Of Nonrenewal And
Conditional
|
||||||
Renewal immediately
below.
|
||||||
Notices Of Nonrenewal And
Conditional Renewal
|
||||||
1.
|
If the COMPANY elects not to
renew this Bond, or to conditionally renew this Bond as
provided
|
|||||
herein, the COMPANY shall mail or
deliver written notice to the ASSURED at least sixty (60)
but
|
||||||
not more than one hundred twenty
(120) days before:
|
||||||
a.
|
The expiration date;
or
|
|||||
b.
|
The anniversary date if this Bond
has been written for a term of more than one
year.
|
ICAP Bond - New
York
|
|
Form 17-02-2863 (Rev. 7-03) Page 2 |
2.
|
Notice shall be mailed or
delivered to the ASSURED at the address shown on
the
|
|||
DECLARATIONS of this Bond and the
authorized agent or broker, if any. If notice is mailed,
proof
|
||||
of mailing shall be sufficient
proof of notice.
|
||||
3.
|
Paragraphs 1. and 2. immediately
above shall not apply when the ASSURED, authorized agent
or
|
|||
broker, or another insurer has
mailed or delivered written notice to the COMPANY that the
Bond
|
||||
has been replaced or is no longer
desired.
|
||||
3.
|
By adding to General Agreement
B., Representations Made By Assured, the
following:
|
|||
No misrepresentation shall be
deemed material unless knowledge by the COMPANY would have lead
to
|
||||
the COMPANY'S refusal to write
this Bond.
|
||||
This Endorsement applies to loss
discovered after 12:01 a.m. on July 30, 2008.
|
||||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
ICAP Bond - New
York
|
|
Form 17-02-2863 (Rev. 7-03) Page 3 |
ENDORSEMENT/RIDER | ||||||
Effective date
of
|
||||||
this endorsement/rider: July 30,
2008
|
FEDERAL
INSURANCE COMPANY
|
|||||
Endorsement/Rider No. 4 Bond | ||||||
To be attached to
and
|
||||||
form a part of Bond No. 82047607 | ||||||
Issued to: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||||
DELETING VALUATION-OTHER PROPERTY
AND AMENDING CHANGE OR MODIFICATION
|
||||||
ENDORSEMENT
|
||||||
In consideration of the premium
charged, it is agreed that this Bond is amended as
follows:
|
||||||
1.
|
The paragraph titled Other
Property in Section 9, Valuation, is deleted in its
entirety.
|
|||||
2.
|
The third paragraph in Section
16, Change or Modification, is deleted in its entirety and
replaced
|
|||||
with the
following:
|
||||||
If this Bond is for a joint
ASSURED, no change or modification which would adversely affect
the
|
||||||
rights of the ASSURED shall be
effective prior to sixty (60) days after written notice has
been
|
||||||
furnished to all insured
Investment
Companies and the
Securities and Exchange Commission,
|
||||||
Washington, D.C., by the
COMPANY.
|
||||||
The title and any headings in
this endorsement/rider are solely for convenience and form no part of
the
|
||||||
terms and conditions of
coverage.
|
||||||
All other terms, conditions and
limitations of this Bond shall remain unchanged.
|
Page
1
|
Effective date
of
|
||||
this endorsement: July 30,
2008
|
FEDERAL
INSURANCE COMPANY
|
|||
Endorsement No.: 5
Bond
|
||||
To be attached to and form a part
of Bond
|
||||
Number:
|
82047607 | |||
Issued to: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||
COMPLIANCE
WITH APPLICABLE TRADE SANCTION LAWS RIDER
|
||||
It is agreed that this insurance
does not apply to the extent that trade or economic sanctions or
other
|
||||
laws or regulations prohibit the
coverage provided by this insurance.
|
||||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
FEDERAL
INSURANCE COMPANY
|
||
|
Endorsement
No:
|
6 Bond
|
|
Bond
Number:
|
82047607
|
NAME OF ASSURED: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||
AMEND NAME OF
ASSURED ENDORSEMENT
|
||
It is agreed that NAME OF ASSURED
of the DECLARATIONS for this Bond is amended to include
the
|
||
following:
|
||
The Hyperion Brookfield Total
Return Fund, Inc.
|
||
The Hyperion Brookfield Strategic
Mortgage Income Fund Inc.
|
||
Hyperion Brookfield Income Fund,
Inc
|
||
Hyperion Brookfield
Collateralized Security Fund, Inc.
|
||
This Endorsement applies to loss
discovered after 12:01 a.m. on July 30, 2008.
|
||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-6272 (Ed. 8-04) Page 1 |
FEDERAL INSURANCE COMPANY | ||||||||
Endorsement No. 7 Bond | ||||||||
Bond Number: | 82047607 | |||||||
NAME OF ASSURED: THE HYPERION
BROOKFIELD TOTAL RETURN FUND, INC.
|
||||||||
REVISE ITEM 2.
ENDORSEMENT
|
||||||||
It is agreed that this Bond is
amended by deleting ITEM 2. in its entirety on the DECLARATIONS
and
|
||||||||
substituting the
following:
|
||||||||
ITEM
2. LIMITS OF
LIABILITY-DEDUCTIBLE AMOUNTS:
|
||||||||
If "Not Covered" is inserted
below opposite any specified INSURING CLAUSE, such
INSURING
|
||||||||
CLAUSE and any other reference to
such INSURING CLAUSE in this Bond shall be deemed to
be
|
||||||||
deleted.
There shall be
no deductible applicable to any loss under INSURING CLAUSE
1
|
||||||||
sustained by
any Investment Company.
|
||||||||
SINGLE
LOSS
|
DEDUCTIBLE
|
|||||||
INSURING
CLAUSE
|
LIMIT
OF LIABILITY
|
AMOUNT
|
||||||
1.
|
Employee
|
$
2,625,000.
|
$
25,000.
|
|||||
2.
|
On
Premises
|
$
2,625,000.
|
$
25,000.
|
|||||
3.
|
In Transit
|
$
2,625,000.
|
$
25,000.
|
|||||
4.
|
Forgery or
Alteration
|
$
2,625,000.
|
$
25,000.
|
|||||
5.
|
Extended
Forgery
|
$
2,625,000.
|
$
25,000.
|
|||||
6.
|
Counterfeit
Currency
|
$
2,625,000.
|
$
25,000.
|
|||||
7.
|
Threats to
Person
|
$
2,625,000.
|
$
25,000.
|
|||||
8.
|
Computer
System
|
$
2,625,000.
|
$
25,000.
|
|||||
9.
|
Voice Initiated Funds Transfer
Instruction
|
$
2,625,000.
|
$
25,000.
|
|||||
10. Uncollectible Items of
Deposit
|
$ 50,000.
|
$
5,000.
|
||||||
11. Audit
Expense
|
$ 50,000.
|
$
5,000.
|
||||||
12. Stop Payment Order or Refusal
to Pay Check
|
$ 25,000.
|
$
5,000.
|
||||||
13. Unauthorized
Signature
|
$ 25,000.
|
$
5,000.
|
||||||
This Endorsement applies to loss
discovered after 12:01 a.m. on July 30, 2008.
|
||||||||
ALL OTHER TERMS AND CONDITIONS OF
THIS BOND REMAIN UNCHANGED.
|
ICAP Bond
|
|
Form 17-02-1582 (Ed. 5-98) Page 1 |
Thank
you for choosing Chubb.
|
Important
Notice:
|
POLICYHOLDER
|
|
DISCLOSURE
NOTICE OF
|
|
TERRORISM
INSURANCE COVERAGE
|
|
(for policies with no terrorism
exclusion or sublimit)
|
|
You
are hereby notified that, under the Terrorism Risk Insurance Act (the
“Act”), effective
|
|
December
26, 2007, this policy makes available to you insurance for losses arising
out of
|
|
certain
acts of terrorism. Terrorism is defined as any act certified by the
Secretary of the
|
|
Treasury,
in concurrence with the Secretary of State and the Attorney General of
the
|
|
United
States, to be an act of terrorism; to be a violent act or an act that is
dangerous to
|
|
human
life, property or infrastructure; to have resulted in damage within the
United
|
|
States,
or outside the United States in the case of an air carrier or vessel or
the premises
|
|
of
a United States Mission; and to have been committed by an individual or
individuals as
|
|
part
of an effort to coerce the civilian population of the United States or to
influence the
|
|
policy
or affect the conduct of the United States Government by
coercion.
|
|
You
should know that the insurance provided by your policy for losses caused
by acts of
|
|
terrorism
is partially reimbursed by the United States under the formula set forth
in the
|
|
Act.
Under this formula, the United States pays 85% of covered terrorism losses
that
|
|
exceed
the statutorily established deductible to be paid by the insurance
company
|
|
providing
the coverage.
|
|
However,
if aggregate insured losses attributable to terrorist acts certified under
the Act
|
|
exceed
$100 billion in a Program Year (January 1 through December 31), the
Treasury
|
|
shall
not make any payment for any portion of the amount of such losses that
exceeds
|
|
$100
billion.
|
If
aggregate insured losses attributable to terrorist acts certified under
the Act exceed
|
$100
billion in a Program Year (January 1 through December 31) and we have met
our
|
insurer
deductible under the Act, we shall not be liable for the payment of any
portion of
|
the
amount of such losses that exceeds $100 billion, and in such case insured
losses up
|
to
that amount are subject to pro rata allocation in accordance with
procedures
|
established
by the Secretary of the Treasury.
|
The
portion of your policy’s annual premium that is attributable to insurance
for such acts
|
of
terrorism is: $ -0-.
|
If
you have any questions about this notice, please contact your agent or
broker.
|
SCHEDULE
A
|
|||||||||||||||||
HYPERION
BROOKFIELD ASSET MANAGEMENT, INC.
|
|||||||||||||||||
Summary
of Proposed Fidelity Bond Insurance Program for the Hyperion
Funds
|
|||||||||||||||||
For
the Insurance Policy Year Ending July 30, 2009
|
|||||||||||||||||
($2,625,000
Joint Fidelity Bond)
|
|||||||||||||||||
Total
Quoted Premium
|
|||||||||||||||||
for
07/30/2008 through 07/30/2009
|
$ | 6,351 | |||||||||||||||
ALLOCATION
OF PREMIUM TO THE INDIVIDUAL FUNDS FOR $2.625 MILLION JOINT FIDELITY
BOND
|
|||||||||||||||||
FUND
|
Total
Return
Fund (HTR) |
Strategic
Mortgage Fund (HSM) |
Brookfield
Income Fund (HBIF) |
Collateralized
Securities Fund (HCS) |
|||||||||||||
Minimum
required coverage per Rule 17g-1 of the 1940 Act
|
$750,000 | $525,000 | $600,000 | $750,000 | |||||||||||||
Gross
Assets (1)
|
$271,000,000 | $117,000,000 | $196,000,000 | $389,000,000 | |||||||||||||
Allocation
of $2,625,000 Joint Fidelity Bond Premium (2)
|
$1,769 | $764 | $1,279 | $2,539 | |||||||||||||
Stand
Alone Premium (3)
|
$3,000 | $3,000 | $3,000 | $3,000 | |||||||||||||
Notes:
|
|||||||||||||
(1)
|
As
of March 31, 2008 (in millions)
|
||||||||||||
(2)
|
Allocation
based on Fund's gross assets as of March 31, 2008 in accordance to Rule
17g-1 of the 1940 Act
|
||||||||||||
(3)
|
Premium
amounts for each Fund on a stand alone basis at minimum required coverage
for one year
|
-------------------------------------------------------------------------------------------------------------------------------------------------------
Hyperion
Brookfield Asset Management, Inc
|
|
-------------------------------------------------------------------------------------------------------------------------------------------------------
Hyperion
Brookfield Asset Management, Inc
|
|
-------------------------------------------------------------------------------------------------------------------------------------------------------
Hyperion
Brookfield Asset Management, Inc
|
|