INVESTMENT COMPANY BLANKET
BOND
NATIONAL UNION FIRE
INSURANCE COMPANY
OF PITTSBURGH, PA.
(A Stock Insurance Company, Herein Called the
Underwriter)
Bond No.
01-361-33-50
DECLARATIONS
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Item 1.
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Name of Insured (herein called
Insured): BLUE CHIP VALUE FUND, INC
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Principal Address: 1225
17th Street, 26th Fl
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DENVER, CO 80202-3619
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Item 2.
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Bond Period: from
12:01a.m.
11/15/2009 to 12:01a.m.
11/15/2010
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the effective date of the termination or
cancellation of this bond, standard time at the Principal Address as to each of
said dates.
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Item 3.
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Limit of Liability--Subject to Sections 9, 10
and 12 hereof,
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Amount applicable
to
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Limit of Liability
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Deductible
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Insuring Agreement
(A)-FIDELITY
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$600,000
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$0
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Insuring Agreement
(B)-AUDIT EXPENSE
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$25,000
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$5,000
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Insuring Agreement
(C)-ON PREMISES
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$600,000
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$10,000
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Insuring Agreement
(D)-IN TRANSIT
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$600,000
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$10,000
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Insuring Agreement
(E)-FORGERY OR ALTERATION
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$600,000
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$10,000
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Insuring Agreement
(F)-SECURITIES
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$600,000
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$10,000
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Insuring Agreement
(G)-COUNTERFEIT CURRENCY
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$600,000
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$10,000
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Insuring Agreement
(H)-STOP PAYMENT
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$100,000
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$5,000
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Insuring Agreement
(I)-UNCOLLECTIBLE ITEMS OF DEPOSIT
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$100,000
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$5,000
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Optional
Insuring Agreements and Coverages:
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Insuring Agreement
(J)-COMPUTER SYSTEMS
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$600,000
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$10,000
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Insuring Agreement
(K)-TELEFACSIMILE TRANSFER FRAUD
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$600,000
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$10,000
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Insuring Agreement
(L)-VOICE INITIATED FUNDS
TRANSFERS
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$600,000
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$10,000
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Insuring Agreement
(M)-UNAUTHORIZED SIGNATURES
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$100,000
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$5,000
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If
"Not Covered" is inserted above opposite any specified Insuring
Agreement or Coverage, such Insuring Agreement or Coverage and any other
reference thereto in this bond shall be deemed to be deleted therefrom.
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Item 4.
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Offices or Premises
Covered--Offices acquired or established subsequent to the effective date of
this bond are covered according to the terms of General Agreement A. All the
Insured's offices or premises in existence at the time this bond becomes
effective are covered under this bond except the offices or premises located as
follows:
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Item 5.
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The liability of the Underwriter is
subject to the terms of the following riders attached hereto: 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16
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Item
6.
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The Insured by the
acceptance of this bond gives to the Underwriter terminating or cancelling
prior bond(s) or policy(ies) No.(s)
NA
such
termination or cancellation to be effective as of the time this bond becomes
effective.
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BY::
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AUTHORIZED REPRESENTATIVE
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INVESTMENT
COMPANY BLANKET BOND
The Underwriter, in consideration of an agreed
premium, and subject to the Declarations made a part hereof, the General
Agreements, Conditions and Limitations and other terms of this bond, agrees
with the Insured, in accordance with the Insuring Agreements hereof to which an
amount of insurance is applicable as set forth in Item 3 of the Declarations
and with respect to loss sustained by the Insured at any time but discovered
during the Bond Period, to indemnify and hold harmless the Insured for:
INSURING
AGREEMENTS
(A) FIDELITY
Loss resulting from any
dishonest or fraudulent act(s), including Larceny or Embezzlement committed by
an Employee, committed anywhere and whether committed alone or in collusion
with others, including loss of Property resulting from such acts of an
Employee, which Property is held by the Insured for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the Insured
is liable therefor.
Dishonest or fraudulent
act(s) as used in this Insuring Agreement shall mean only dishonest or
fraudulent act(s) committed by such Employee with the manifest intent:
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(a)
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to
cause the Insured to sustain such loss; and
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(b)
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to
obtain financial benefit for the Employee, or for any other person or
organization intended by the Employee to receive such benefit, other than
salaries, commissions, fees, bonuses, promotions, awards, profit sharing,
pensions or other employee benefits earned in the normal course of employment.
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(B) AUDIT EXPENSE
Expense incurred by the
Insured for that part of the costs of audits or examinations required by any
governmental regulatory authority to be conducted either by such authority or
by an independent accountant by reason of the discovery of loss sustained by
the Insured through any dishonest or fraudulent act(s), including Larceny or
Embezzlement of any of the Employees. The total liability of the Underwriter
for such expense by reason of such acts of any Employee or in which such
Employee is concerned or implicated or with respect to any one audit or
examination is limited to the amount stated opposite Audit Expense in Item 3 of
the Declarations; it being understood, however, that such expense shall be
deemed to be a loss sustained by the Insured through any dishonest or
fraudulent act(s), including Larceny or Embezzlement of one or more of the
Employees and the liability under this paragraph shall be in addition to the
Limit of liability stated in Insuring Agreement (A) in Item 3 of the
Declarations.
(C) ON PREMISES
Loss of Property
(occurring with or without negligence or violence) through robbery, burglary,
Larceny, theft, holdup, or other fraudulent means, misplacement, mysterious
unexplainable disappearance, damage thereto or destruction thereof, abstraction
or removal from the possession, custody or control of the Insured, and loss of
subscription, conversion, redemption or deposit privileges through the
misplacement or loss of Property, while the Property is (or is supposed or
believed by the Insured to be) lodged or deposited within any offices or
premises located anywhere, except in an office listed in Item 4 of the
Declarations or amendment thereof or in the mail or with a carrier for hire
other than an armored motor vehicle company, for the purpose of transportation.
Offices and Equipment
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(1)
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Loss
of or damage to, furnishings, fixtures, stationery, supplies or equipment,
within any of the Insured's offices covered under this bond caused by Larceny
or theft in, or by burglary, robbery or holdup of such office, or attempt
thereat, or by vandalism or malicious mischief; or
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(2)
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loss
through damage to any such office by Larceny or theft in, or by burglary,
robbery or holdup of such office or attempt thereat, or to the interior of any
such office by vandalism or malicious mischief provided, in any event, that the
Insured is the owner of such offices, furnishings, fixtures, stationery,
supplies or equipment or is legally liable for such loss or damage, always
excepting, however, all loss or damage through fire.
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1
(D) IN
TRANSIT
Loss of Property
(occurring with or without negligence or violence) through robbery, Larceny,
theft, holdup, misplacement, mysterious unexplainable disappearance, being lost
or otherwise made away with, damage thereto or destruction thereof, and loss of
subscription, conversion, redemption or deposit privileges through the
misplacement or loss of Property, while the Property is in transit anywhere in
the custody of any person or persons acting as messenger, except while in the
mail or with a carrier for hire, other than an armored motor vehicle company,
for the purpose of transportation, such transit to begin immediately upon
receipt of such Property by the transporting person or persons, and to end
immediately upon delivery thereof at destination.
(E) FORGERY OR ALTERATION
Loss through FORGERY or
ALTERATION of, on or in any bills of exchange, checks, drafts, acceptances,
certificates of deposit. promissory notes, or other written promises, orders or
directions to pay sums certain in money, due bills, money orders, warrants,
orders upon public treasuries, letters of credit, written instructions, advices
or applications directed to the Insured, authorizing or acknowledging the
transfer, payment, delivery or receipt of funds or Property, which instructions
or advices or applications purport to have been signed or endorsed by any
customer of the Insured, shareholder or subscriber to shares, whether
certificated or uncertificated, of any Investment Company or by any financial or
banking institution or stockbroker but which instructions, advices or
applications either bear the forged signature or endorsement or have been
altered without the knowledge and consent of such customer, shareholder or
subscriber to shares, whether certificated or uncertificated, of an Investment
Company, financial or banking institution or stockbroker, withdrawal orders or
receipts for the withdrawal of funds or 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, excluding,
however, any loss covered under Insuring Agreement (F) hereof whether or not
coverage for Insuring Agreement (F) is provided for in the Declarations of this
bond.
Any check or draft (a)
made payable to a fictitious payee and endorsed in the name of such fictitious
payee or (b) procured in a transaction with the maker or drawer thereof or with
one acting as an agent of such maker or drawer or anyone impersonating another
and made or drawn payable to the one so impersonated and endorsed by anyone
other than the one impersonated, shall be deemed to be forged as to such
endorsement.
Mechanically reproduced
facsimile signatures are treated the same as handwritten signatures.
(F) SECURITIES
Loss sustained by the
Insured, including loss sustained by reason of a violation of the constitution,
by-laws, rules or regulations of any Self Regulatory Organization of which the
Insured is a member or which would have been imposed upon the Insured by the
constitution, by-laws, rules or regulations of any Self Regulatory Organization
if the Insured had been a member thereof,
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(1)
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through
the Insureds having, in good faith and in the course of business, whether for
its own account or for the account of others, in any representative, fiduciary,
agency or any other capacity, either gratuitously or otherwise, purchased or
otherwise acquired, accepted or received, or sold or delivered, or given any
value, extended any credit or assumed any liability, on the faith of, or
otherwise acted upon, any securities, documents or other written instruments
which prove to have been
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(a)
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counterfeited, or
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(b)
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forged as to the signature
of any maker, drawer, issuer, endorser, assignor, lessee, transfer agent
or registrar, acceptor, surety or guarantor or as to the signature of
any person signing in any other capacity, or
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(c)
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raised or otherwise
altered, or lost, or stolen, or
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(2)
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through the Insured's having, in good faith and in the course of business,
guaranteed in writing or witnessed any signatures whether for valuable
consideration or not and whether or not such guaranteeing or witnessing is ultra vires the
Insured, upon any transfers, assignments, bills of sale, powers of attorney, guarantees,
endorsements or other obligations upon or in connection with any securities,
documents or other written instruments and which pass or purport to pass title
to such securities, documents or other written instruments; EXCLUDING, losses
caused by FORGERY or ALTERATION of, on or in those instruments covered under
Insuring Agreement (E) hereof.
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2
Securities, documents or
other written instruments shall be deemed to mean original (including original
counterparts) negotiable or non-negotiable agreements which in and of
themselves represent an equitable interest, ownership, or debt, including an
assignment thereof which instruments are in the ordinary course of business,
transferable by delivery of such agreements with any necessary endorsement or
assignment.
The word
"counterfeited" as used in this Insuring Agreement shall be deemed to
mean any security, document or other written instrument which is intended to
deceive and to be taken for an original.
Mechanically produced
facsimile signatures are treated the same as handwritten signatures.
(G) COUNTERFEIT
CURRENCY
Loss through the receipt
by the Insured, in good faith, of any counterfeited money orders or altered
paper currencies or coin of the United States of America or Canada issued or
purporting to have been issued by the United States of America or Canada or
issued pursuant to a United States of America or Canadian statute for use as
currency.
(H) STOP PAYMENT
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:
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 any Authorized
Representative of such customer, shareholder or subscriber, or
For having refused to
pay any check or draft made or drawn by any customer, shareholder or subscriber
of the Insured or any Authorized Representative of such customer, shareholder
or subscriber.
(I) UNCOLLECTIBLE
ITEMS OF DEPOSIT
Loss resulting from
payments of dividends or fund shares, or withdrawals permitted from any
customers, shareholders or subscribers account based upon Uncollectible
Items of Deposit of a customer, shareholder or subscriber credited by the
Insured or the Insureds agent to such customers, shareholders or
subscribers Mutual Fund Account; or
loss resulting from any Item of Deposit
processed through an Automated Clearing House which is reversed by the
customer, shareholder or subscriber and deemed uncollectible by the Insured.
Loss includes dividends and interest accrued not
to exceed 15% of the Uncollectible Items which are deposited.
This Insuring Agreement
applies to all Mutual Funds with exchange privileges if all Fund(s) in the
exchange program are insured by a National Union Fire Insurance Company of
Pittsburgh, PA for Uncollectible Items of Deposit. Regardless of the number of
transactions between Fund(s), the minimum number of days of deposit within the
Fund(s) before withdrawal as declared in the Fund(s) prospectus shall begin
from the date a deposit was first credited to any Insured Fund(s).
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GENERAL
AGREEMENTS
A . ADDITIONAL OFFICES OR EMPLOYEES CONSOLIDATION OR MERGER-NOTICE
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If the Insured shall,
while this bond is in force, establish any additional office or offices, such
office or offices shall be automatically covered hereunder from the dates of
their establishment, respectively. No notice to the Underwriter of an increase
during any premium period in the number of offices or in the number of
Employees at any of the offices covered hereunder need be given and no
additional premium need be paid for the remainder of such premium period.
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If an Investment
Company, named as Insured herein, shall, while this bond is in force, merge or
consolidate with, or purchase the assets of another institution, coverage for
such acquisition shall apply automatically from the date of acquisition. The
Insured shall notify the Underwriter of such acquisition within 60 days of said
date, and an additional premium shall be computed only if such acquisition
involves additional offices or employees.
B. WARRANTY
No statement made by or
on behalf of the Insured, whether contained in the application or otherwise,
shall be deemed to be a warranty of anything except that it is true to the best
of the knowledge and belief of the person making the statement.
C. COURT COSTS AND
ATTORNEYS' FEES
(Applicable to all Insuring Agreements or Coverages now or hereafter forming
part of this bond)
The
Underwriter will indemnify the Insured against court costs and reasonable attorneys'
fees incurred and paid by the Insured in defense, whether or not successful,
whether or not fully litigated on the merits and whether or not settled of any
suit or legal proceeding brought against the Insured to enforce the Insured's
liability or alleged liability on account of any loss, claim or damage which,
if established against the Insured, would constitute a loss sustained by the
Insured 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 being guilty of any dishonest or fraudulent act(s),
including Larceny or Embezzlement; or
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(2)
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an
Employee is adjudicated to be guilty of any dishonest or fraudulent act(s),
including Larceny or Embezzlement;
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(3)
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in
the absence of (1) or (2) above an arbitration panel agrees, after a review of
an agreed statement of facts, that an Employee would be found guilty of
dishonesty if such Employee were prosecuted.
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The Insured shall promptly
give notice to the Underwriter of any such suit or legal proceeding and at the
request of the Underwriter shall furnish it with copies of all pleadings and
other papers therein. At the Underwriter's election the Insured shall permit
the Underwriter to conduct the defense of such suit or legal proceeding, in the
Insured's name, through attorneys of the Underwriter's 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 suit or
legal proceeding.
If the amount of the
Insured's liability or alleged liability is greater than the amount recoverable
under this bond, or if a Deductible Amount is applicable, or both, the
liability of the Underwriter under this General Agreement is limited to the
proportion of court costs and attorneys' fees incurred and paid by the Insured
or by the Underwriter that the amount recoverable under this bond bears to the
total of such amount plus the amount which is not so recoverable. Such
indemnity shall be in addition to the Limit of Liability for the applicable
Insuring Agreement or Coverage.
D. FORMER EMPLOYEE
Acts of an Employee, as
defined in this bond, are covered under Insuring Agreement (A) only while the
Employee is in the Insured's employ. Should loss involving a former Employee of
the Insured be discovered subsequent to the termination of employment, coverage
would still apply under Insuring Agreement (A) if the direct proximate cause of
the loss occurred while the former Employee performed duties within the scope
of his/her employment.
4
THE FOREGOING
INSURING AGREEMENTS AND
GENERAL
AGREEMENTS ARE SUBJECT TO
THE FOLLOWING CONDITIONS
AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following terms, as
used in this bond, shall have the respective meanings stated in this Section:
(a) "Employee" means:
(1)
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any
of the Insured's officers, partners, or employees, and
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(2)
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any
of the officers or employees 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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attorneys retained by the Insured
to perform legal services for the Insured and the employees of such attorneys
while such attorneys or the employees of such attorneys are performing such
services for the Insured, and
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(4)
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guest students pursuing
their studies or duties in any of the Insured's offices, and
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(5)
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directors or trustees of
the Insured, the investment advisor, underwriter (distributor), transfer agent,
or shareholder accounting record keeper, or administrator authorized by written
agreement to keep financial and/or other required records, but only while
performing acts coming within the scope of the usual duties of an officer or
employee or while 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, and
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(6)
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any individual or individuals
assigned to perform the usual duties of an employee within the premises of the
Insured, by contract, or by any agency furnishing temporary personnel on a
contingent or part-time basis, and
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(7)
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each
natural person, partnership or corporation authorized by written agreement with
the Insured to perform services as electronic data processor of checks or other
accounting records of the Insured, but excluding any such processor who acts as
transfer agent or in any other agency capacity in issuing checks, drafts or
securities for the Insured, unless included under Sub-section (9) hereof, and
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(8)
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those
persons so designated in Section 15, Central Handling of Securities, and
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(9)
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any
officer, partner or Employee of
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a)
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an investment advisor,
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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 record-keeper,
or
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d)
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an administrator authorized by written agreement to keep
financial and/or other required records,
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5
for an Investment
Company named as Insured while performing acts coming within the scope of the
usual duties of an officer or Employee of any Investment Company named as
Insured herein, or while 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
any such Investment Company, provided that only Employees or partners of a
transfer agent, shareholder accounting record-keeper or administrator which is
an affiliated person as defined in the Investment Company Act of 1940, of an
Investment Company named as Insured or is an affiliated person of the adviser,
underwriter or administrator of such Investment Company, and which is not a
bank, shall be included within the definition of Employee.
Each employer of
temporary personnel or processors as set forth in Sub-Sections (6) and of
Section 1(a) and their partners, officers and employees shall collectively be
deemed to be one person for all the purposes of this bond, excepting, however,
the last paragraph of Section 13.
Brokers, or other agents under contract or
representatives of the same general character shall not be considered
Employees.
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(b)
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"Property"
means money (i.e.. currency, coin, bank notes, Federal Reserve notes), postage
and revenue stamps, U.S. Savings Stamps, bullion, precious metals of all kinds
and in any form and articles made therefrom, jewelry, watches, necklaces,
bracelets, gems, precious and semi-precious stones, bonds, securities,
evidences of debts, debentures, scrip, certificates, interim receipts,
warrants, rights, puts, calls, straddles, spreads, transfers, coupons, drafts,
bills of exchange, acceptances, notes, checks, withdrawal orders, money orders,
warehouse receipts, bills of lading, conditional sales contracts, abstracts of
title, insurance policies, deeds, mortgages under real estate and/or chattels
and upon interests therein, and assignments of such policies, mortgages and
instruments, 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 including Electronic
Representations of such instruments enumerated above (but excluding all data
processing records) in which the Insured has an interest or in which the
Insured acquired or should have acquired an interest by reason of a
predecessor's declared financial condition at the time of the Insured's
consolidation or merger with, or purchase of the principal assets of, such
predecessor or which are held by the Insured for any purpose or in any capacity
and whether so held by the Insured for any purpose or in any capacity and
whether so held gratuitously or not and whether or not the Insured is liable
therefor.
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(c)
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"Forgery"
means the signing of the name of another with intent to deceive; it does not
include the signing of one's own name with or without authority, in any
capacity, for any purpose.
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(d)
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"Larceny
and Embezzlement" as it applies to any named Insured means those acts as
set forth in Section 37 of the Investment Company Act of 1940.
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(e)
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"Items
of Deposit" means any one or more checks and drafts. Items of Deposit
shall not be deemed uncollectible until the Insured's collection procedures
have failed.
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SECTION 2. EXCLUSIONS
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THIS BOND DOES NOT COVER:
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(a)
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loss
effected directly or indirectly by means of forgery or alteration of, on or in any
instrument, except when covered by Insuring Agreement (A), (E), (F) or (G).
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(b)
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loss
due to riot or civil commotion outside the United States of America and Canada;
or loss due to military, naval or usurped power, war or insurrection unless
such loss occurs in transit in the circumstances recited in Insuring Agreement
(D), and unless, when such transit was initiated, there was no knowledge of
such riot, civil commotion, military, naval or usurped power, war or
insurrection on the part of any person acting for the Insured in initiating
such transit.
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(c)
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loss,
in time of peace or war, directly or indirectly caused by or resulting from the
effects of nuclear fission or fusion or radioactivity; provided, however, that
this paragraph shall not apply to loss resulting from industrial uses of
nuclear energy.
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(d)
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loss
resulting from any wrongful act or acts of any person who is a member of the
Board of Directors of the Insured or a member of any equivalent body by
whatsoever name known unless such person is also an Employee or an elected
official, partial owner or partner of the Insured in some other capacity, nor,
in any event, loss resulting from the act or acts of any person while acting in
the capacity of a member of such Board or equivalent body.
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(e)
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loss
resulting from the complete or partial non-payment of, or default upon, any
loan or transaction in the nature of, or amounting to, a loan made by or
obtained from the Insured or any of its partners, directors or Employees,
whether authorized or unauthorized and whether procured in good faith or
through trick, artifice, fraud or false pretenses. unless such loss is covered
under Insuring Agreement (A), (E) or (F).
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(f)
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loss
resulting from any violation by the Insured or by any Employee
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(1)
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of
law regulating (a) the issuance, purchase or sale of securities, (b) securities
transactions upon Security Exchanges or over the counter market, (c) Investment
Companies, or (d) Investment Advisors, or
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(2)
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of
any rule or regulation made pursuant to any such law, unless such loss, in the
absence of such laws, rules or regulations, would be covered under Insuring
Agreements (A) or (E).
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(g)
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loss of Property or loss of
privileges through the misplacement or loss of Property as set forth in
Insuring Agreement (C) or (D) while the Property is in the custody of any
armored motor vehicle company, unless such loss shall be in excess of the
amount recovered or received by the Insured under (a) the Insured's contract
with said armored motor vehicle company, (b) insurance carried by said armored
motor vehicle company for the benefit of users of its service, and (c) all
other insurance and indemnity in force in whatsoever form carried by or for the
benefit of users of said armored motor vehicle company's service, and then this
bond shall cover only such excess.
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(h)
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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 as included under
Insuring Agreement (I).
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(i)
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all
damages of any type for which the Insured is legally liable, except direct
compensatory damages arising from a loss covered under this bond.
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(j)
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loss
through 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 loss of Property in transit in the custody
of any person acting as messenger provided that when such transit was initiated
there was no knowledge by the Insured of any such threat, or
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(2)
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to
do damage to the premises or Property of the Insured, except when covered under
Insuring Agreement (A).
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(k)
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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 unless such indemnity is provided for under Insuring
Agreement (B).
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(l)
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loss
resulting from payments made or withdrawals from the account of a customer of
the Insured, shareholder or subscriber to shares involving funds erroneously
credited to such account, unless such payments are made to or withdrawn by such
depositor or representative of such person, who is within the premises of the drawee bank of the Insured or within the office of the Insured at the time of
such payment or withdrawal or unless such payment is covered under Insuring
Agreement (A).
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7
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(m)
|
any
loss resulting from Uncollectible Items of Deposit which are drawn from a
financial institution outside the fifty states of the United States of America, District of Columbia, and territories and possessions of the United States of America, and Canada.
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SECTION 3. ASSIGNMENT OF RIGHTS
This bond does not
afford coverage in favor of any Employers of temporary personnel or of
processors as set forth in sub-sections (6) and (7) of Section 1(a) of this
bond, as aforesaid, and upon payment to the Insured by the Underwriter on
account of any loss through dishonest or fraudulent act(s) including Larceny or
Embezzlement committed by any of the partners, officers or employees of such
Employers, whether acting alone or in collusion with others, an assignment of
such of the Insured's rights and causes of action as it may have against such
Employers by reason of such acts so committed shall, to the extent of such
payment, be given by the Insured to the Underwriter, and the Insured shall
execute all papers necessary to secure to the Underwriter the rights herein
provided for.
SECTION 4. LOSS -NOTICE -PROOF-LEGAL PROCEEDINGS
This bond is for the use
and benefit only of the Insured named in the Declarations and the Underwriter
shall not be liable hereunder for loss sustained by anyone other than the
Insured unless the Insured, in its sole discretion and at its option, shall
include such loss in the Insured's proof of loss. At the earliest practicable
moment after discovery of any loss hereunder the Insured shall give the
Underwriter written notice thereof and shall also within six months after such
discovery furnish to the Underwriter affirmative proof of loss with full
particulars. If claim is made under this bond for loss of securities or shares,
the Underwriter shall not be liable unless each of such securities or shares is
identified in such proof of loss by a certificate or bond number or, where such
securities or shares are uncertificated, by such identification means as agreed
to by the Underwriter. The Underwriter shall have thirty days after notice and
proof of loss within which to investigate the claim, but where the loss is
clear and undisputed, settlement shall be made within forty-eight hours; and
this shall apply notwithstanding the loss is made up wholly or in part of
securities of which duplicates may be obtained. Legal proceedings for recovery
of any loss hereunder shall not be brought prior to the expiration of sixty
days after such proof of loss is filed with the Underwriter nor after the
expiration of twenty-four months from the discovery of such loss, except that
any action or proceeding to recover hereunder on account of any judgment
against the Insured in any suit mentioned in General Agreement C or to recover
attorneys' fees paid in any such suit, shall be begun within twenty-four months
from the date upon which the judgment in such suit shall become final. If any
limitation embodied in this bond is prohibited by any law controlling the
construction hereof, such limitation shall be deemed to be amended so as to be
equal to the minimum period of limitation permitted by such law.
Discovery occurs when
the Insured
(a) becomes
aware of facts, or
(b) receives
written notice of an actual or potential claim by a third party which alleges
that the Insured is liable under circumstance
which would cause a reasonable person to assume
that a loss covered by the bond has been or will be incurred even though the
exact amount or details of loss may not be then
known.
SECTION 5. VALUATION OF PROPERTY
The value of any
Property, except books of accounts or other records used by the Insured in the
conduct of its business, for the loss of which a claim shall be made hereunder,
shall be determined by the average market value of such Property on the
business day next preceding the discovery of such loss; provided, however, that
the value of any Property replaced by the Insured prior to the payment of claim
therefor shall be the actual market value at the time of replacement; and further
provided that in case of a loss or misplacement of interim certificates,
warrants, rights, or other securities, the production which is necessary to the
exercise of subscription, conversion, redemption or deposit privileges, the
value thereof shall be the market value of such privileges immediately
preceding the expiration thereof if said loss or misplacement 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
or by arbitration.
8
In case of any loss or
damage to Property consisting of books of accounts or other records used by the
Insured in the conduct of its business, the Underwriter shall be liable under
this bond only if such books or records are actually reproduced and then for
not more than the cost of blank books, blank pages or other materials plus the
cost of labor for the actual transcription or copying of data which shall have
been furnished by the Insured in order to reproduce such books and other
records.
SECTION 6.
VALUATION OF PREMISES AND FURNISHINGS
In case of damage to any
office of the Insured, or loss of or damage to the furnishings, fixtures,
stationery, supplies, equipment, safes or vaults therein, the Underwriter shall
not be liable for more than the actual cash value thereof, or for more than the
actual cost of their replacement or repair. The Underwriter may, at its
election, pay such actual cash value or make such replacement or repair. If the
Underwriter and the Insured cannot agree upon such cash value or such cost of
replacement or repair, such shall be determined by arbitration.
SECTION 7. LOST SECURITIES
If the Insured shall
sustain a loss of securities the total value of which is in excess of the limit
stated in Item 3 of the Declarations of this bond, the liability of the
Underwriter shall be limited to payment for, or duplication of, securities
having value equal to the limit stated in Item 3 of the Declarations of this
bond.
If the Underwriter shall
make payment to the Insured for any loss of securities, the Insured shall
thereupon assign to the Underwriter all of the Insured's rights, title and
interests in and to said securities.
With respect to
securities the value of which do not exceed the Deductible Amount (at the time
of the discovery of the loss) and for which the Underwriter may at its sole
discretion and option and at the request of the Insured issue a Lost Instrument
Bond or Bonds to effect replacement thereof, the Insured will pay the usual
premium charged therefor and will indemnify the Underwriter against all loss or
expense that the Underwriter may sustain because of the issuance of such Lost
Instrument Bond or Bonds.
With respect to
securities the value of which exceeds the Deductible Amount (at the time of
discovery of the loss) and for which the Underwriter may issue or arrange for
the issuance of a Lost Instrument Bond or Bonds to effect replacement thereof,
the Insured agrees that it will pay as premium therefor a proportion of the
usual premium charged therefor, said proportion being equal to the percentage
that the Deductible Amount bears to the value of the securities upon discovery
of the loss, and that it will indemnify the issuer of said Lost Instrument Bond
or Bonds against all loss and expense that is not recoverable from the
Underwriter under the terms and conditions of this INVESTMENT COMPANY BLANKET
BOND subject to the Limit of Liability hereunder.
SECTION 8. SALVAGE
In case of recovery,
whether made by the Insured or by the Underwriter, on account of any loss in
excess of the 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 net amount of such recovery, less the actual costs and
expenses of making same, shall be applied to reimburse the Insured in full for
the excess portion of such loss, and the remainder, if any, shall be paid first
in reimbursement of the Underwriter and thereafter in reimbursement of the
Insured for that part of such loss within the Deductible Amount. The Insured
shall execute all necessary papers to secure to the Underwriter the rights
provided for herein.
SECTION 9. NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
At all times prior to
termination hereof this bond shall continue in force for the limit stated in
the applicable sections of Item 3 of the Declarations of this bond
notwithstanding any previous 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 all loss resulting from
9
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(a)
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any
one act of burglary, robbery or holdup, or attempt thereat, in which no Partner
or Employee is concerned or implicated shall be deemed to be one loss, or
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(b)
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any
one unintentional or negligent act on the part of any one person resulting in
damage to or destruction or misplacement of Property, shall be deemed to be one
loss, or
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(c)
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all
wrongful acts, other than those specified in (a) above, of any one person shall
be deemed to be one loss, or
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(d)
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all
wrongful acts, other than those specified in (a) above, of one or more persons
(which dishonest act(s) or act(s) of Larceny or Embezzlement include, but are
not limited to, the failure of an Employee to report such acts of others) whose
dishonest act or acts intentionally or unintentionally, knowingly or
unknowingly, directly or indirectly, aid or aids in any way, or permits the
continuation of, the dishonest act or acts of any other person or persons shall
be deemed to be one loss with the act or acts of the persons aided, or
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(e)
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any
one casualty or event other than those specified in (a), (b), (c) or (d)
preceding, shall be deemed to be one loss, and
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shall be limited to the applicable Limit of Liability
stated in Item 3 of the Declarations of this bond irrespective of the total
amount of such loss or losses and shall not be cumulative in amounts from year
to year or from period to period.
Sub-section (c) is not
applicable to any situation to which the language of sub-section (d) applies.
SECTION 10. LIMIT OF LIABILITY
With respect to any loss
set forth in the PROVIDED clause of Section 9 of this bond which is recoverable
or recovered in whole or in part under any other bonds or policies issued by
the Underwriter to the Insured or to any predecessor in interest of the Insured
and terminated or cancelled or allowed to expire and in which the period for
discovery has not expired at the time any such loss thereunder is discovered,
the total liability of the Underwriter under this bond and under other bonds or
policies shall not exceed, in the aggregate, the amount carried hereunder on
such loss or the amount available to the Insured under such other bonds or
policies, as limited by the terms and conditions thereof, for any such loss if
the latter amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured shall
hold, as indemnity against any loss covered hereunder, any valid and
enforceable insurance or suretyship, the Underwriter shall be liable hereunder
only for such amount of such loss which is in excess of the amount of such
other insurance or suretyship, not exceeding, however, the Limit of Liability
of this bond applicable to such loss.
SECTION 12. DEDUCTIBLE
The Underwriter shall
not be liable under any of the Insuring Agreements of this bond on account of
loss as specified, respectively, in sub-sections (a), (b), (c), (d) and (e) of
Section 9, NON-REDUCTION AND NON- ACCUMULATION OF LIABILITY AND TOTAL
LIABILITY, unless the amount of such loss, after deducting the net amount of
all reimbursement and/or recovery obtained or made by the Insured, other than
from any bond or policy of insurance issued by an insurance company and
covering such loss, or by the Underwriter on account thereof prior to payment
by the Underwriter of such loss, shall exceed the Deductible Amount set forth
in Item 3 of the Declarations hereof (herein called Deductible Amount) and then
for such excess only, but in no event for more than the applicable Limit of
Liability stated in Item 3 of the Declarations.
The Insured will bear,
in addition to the Deductible Amount, premiums on Lost Instrument Bonds as set
forth in Section 7.
There shall be no
deductible applicable to any loss under Insuring Agreement A sustained by any
Investment Company named as Insured herein.
SECTION 13. TERMINATION
10
The Underwriter may
terminate this bond as an entirety by furnishing written notice specifying the
termination date which cannot be prior to 60 days after the receipt of such
written notice by each Investment Company named as Insured and the Securities
and Exchange Commission, Washington, D.C. The Insured may terminate this bond
as an entirety by furnishing written notice to the Underwriter. When the
Insured cancels, the Insured shall furnish written notice to the Securities and
Exchange Commission, Washington. D.C. prior to 60 days before the effective
date of the termination. The Underwriter shall notify all other Investment
Companies named as Insured of the receipt of such termination notice and the
termination cannot be effective prior to 60 days after receipt of written
notice by all other Investment Companies. Premiums are earned until the
termination date as set forth herein.
This Bond will terminate
as to any one Insured immediately upon taking over of such Insured by a
receiver or other liquidator or by State or Federal officials, or immediately
upon 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. or immediately upon such Insured ceasing to exist,
whether through merger into another entity, or by disposition of all of its
assets.
The Underwriter shall
refund the unearned premium computed at short rates in accordance with the
standard short rate cancellation tables if terminated by the Insured or pro
rata if terminated for any other reason.
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This Bond shall
terminate
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(a)
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as
to any Employee as soon as any partner, officer or supervisory Employee of the
Insured, who is not in collusion with such Employee, shall learn of any
dishonest or fraudulent act(s), including Larceny or Embezzlement on the part
of such Employee without prejudice to the loss of any Property then in transit
in the custody of such Employee (See Section 16[d]), or
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(b)
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as
to any Employee 60 days after receipt by each Insured and by the Securities and
Exchange Commission of a written notice from the Underwriter of its desire to
terminate this bond as to such Employee, or
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(c)
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as
to any person, who is a partner, officer or employee of any Electronic Data
Processor covered under this bond, from and after the time that the Insured or
any partner or officer thereof not in collusion with such person shall have
knowledge or information that such person has committed any dishonest or
fraudulent act(s), including Larceny or Embezzlement in the service of the
Insured or otherwise, whether such act be committed before or after the time
this bond is effective.
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SECTION 14. RIGHTS AFTER TERMINATION
OR CANCELLATION
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At any time prior to the
termination or cancellation of this bond as an entirety, whether by the Insured
or the Underwriter, the Insured may give to the Underwriter notice that it
desires under this bond an additional period of 12 months within which to
discover loss sustained by the Insured prior to the effective date of such
termination or cancellation and shall pay an additional premium therefor.
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Upon receipt of such
notice from the Insured, the Underwriter shall give its written consent
thereto; provided, however, that such additional period of time shall terminate
immediately;
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(a)
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on
the effective date of any other insurance obtained by the Insured, its
successor in business or any other party, replacing in whole or in part the
insurance afforded by this bond, whether or not such other insurance provides
coverage for loss sustained prior to its effective date, or
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(b)
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upon
takeover of the Insured's business by any State or Federal official or agency,
or by any receiver or liquidator, acting or appointed for this purpose
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without the necessity of the Underwriter giving
notice of such termination. In the event that such additional period of time is
terminated, as provided above, the Underwriter shall refund any unearned
premium.
The right to purchase
such additional period for the discovery of loss 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 Insured's business for the operation or for the
liquidation thereof or for any other purpose.
11
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities included in
the systems for the central handling of securities established and maintained
by Depository Trust Company, Midwest Depository Trust Company, Pacific
Securities Depository Trust Company, and Philadelphia Depository Trust Company,
hereinafter called Corporations, to the extent of the Insured's interest
therein as effective by the making of appropriate entries on the books and
records of such Corporations shall be deemed to be Property.
The words
"Employee" and "Employees" shall be deemed to include the
officers, partners, clerks and other employees of the New York Stock Exchange,
Boston Stock Exchange, Midwest Stock Exchange, Pacific Stock Ex- change and
Philadelphia Stock Exchange, hereinafter called Exchanges, and of the above
named Corporations, and of any nominee in whose name is registered any security
included within the systems for the central handling of securities established
and maintained by such Corporations, and any employee of any recognized service
company, while such officers, partners, clerks and other employees and
employees of service companies perform services for such Corporations in the
operation of such systems. For the purpose of the above definition a recognized
service company shall be any company providing clerks or other personnel to
said Exchanges or Corporation on a contract basis.
The Underwriter shall
not be liable on account of any loss(es) in connection with the central
handling of securities within the systems established and maintained by such
Corporations, unless such loss(es) shall be in excess of the amount(s)
recoverable or recovered under any bond or policy of insurance indemnifying
such Corporations, against such loss(es), and then the Underwriter shall be
liable hereunder only for the Insured's share of such excess loss(es), but in
no event for more than the Limit of Liability
applicable hereunder.
For the purpose of determining
the Insured's share of excess loss(es) it shall be deemed that the Insured has
an interest in any certificate representing any security included within such
systems equivalent to the interest the Insured then has in all certificates
representing the same security included within such systems and that such
Corporations shall use their best judgement in apportioning the amount(s)
recoverable or recovered under any bond or policy of insurance indemnifying
such Corporations against such loss(es) in connection with the central handling
of securities within such systems among all those having an interest as
recorded by appropriate entries in the books and records of such Corporations
in Property involved in such loss(es) on the basis that each such interest
shall share in the amount(s) so recoverable or recovered in the ratio that the
value of each such interest bears to the total value of all such interests and
that the Insured's share of such excess loss(es) shall be the amount of the
Insured's interest in such Property in excess of the amount(s) so apportioned
to the Insured by such Corporations.
This bond does not
afford coverage in favor of such Corporations or Exchanges or any nominee in
whose name is registered any security included within the systems for the
central handling of securities established and maintained by such Corporations,
and upon payment to the Insured by the Underwriter on account of any loss(es)
within the systems, an assignment of such of the Insured's rights and causes of
action as it may have against such Corporations or Exchanges shall to the
extent of such payment, be given by the Insured to the Underwriter, and the
Insured shall execute all papers necessary to secure to the Underwriter the
rights provided for herein.
SECTION 16. ADDITIONAL COMPANIES
INCLUDED AS INSURED
If more than one
corporation, co-partnership or person or any combination of them be included as
the Insured herein:
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(a)
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the
total liability of the Underwriter hereunder for loss or losses sustained by
any one or more or all of them shall not exceed the limit for which the
Underwriter would be liable hereunder if all such loss were sustained by any
one of them,
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(b)
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the
one first named herein shall be deemed authorized to make, adjust and receive
and enforce payment of all claims hereunder and shall be deemed to be the agent
of the others for such purposes and for the giving or receiving of any notice
required or permitted to be given by the terms hereof, provided that the
Underwriter shall furnish each named Investment Company with a copy of the bond
and with any amendment thereto, together with a copy of each formal filing 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 for the proper application of any payment made hereunder to
said first named Insured,
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(d)
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knowledge
possessed or discovery made by any partner, officer or supervisory Employee of
any Insured shall for the purposes of Section 4 and Section 13 of this bond
constitute knowledge or discovery by all the Insured, and
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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.
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SECTION 17. NOTICE AND CHANGE OF CONTROL
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Upon the Insured's obtaining knowledge of a transfer of its outstanding voting
securities which results in a change in control (as set forth in Section 2(a)
(9) of the Investment Company Act of 1940) of the Insured, the Insured shall
within thirty (30) days of such knowledge give written notice to the Underwriter
setting forth:
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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 requested 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.
Failure to give the
required notice shall result in termination of coverage of this bond, effective
upon the date of stock transfer for any loss in which any transferee is
concerned or implicated.
Such notice is not
required to be given in the case of an Insured which is an Investment Company.
SECTION 18. CHANGE OR MODIFICATION
This bond or any
instrument amending or effecting same may not be changed or modified orally. No
changes in or modification thereof shall be effective unless made by written
endorsement issued to form a part hereof over the signature of the
Underwriter's Authorized Representative. When a bond covers only one Investment
Company no change or modification which would adversely affect the rights of
the Investment Company shall be effective prior to 60 days after written
notification has been furnished to the Securities and Exchange Commission, Washington, D.C. by the Insured or by the Underwriter. If more than one Investment
Company is named as the Insured herein, the Underwriter shall give written
notice to each Investment Company and to the Securities and Exchange
Commission, Washington, D.C. not less than 60 days prior to the
effective date of any
change or modification which would adversely affect the rights of such
Investment Company.
IN WITNESS WHEREOF, the Underwriter has caused
this bond to be executed on the Declarations Page.
13
ENDORSEMENT#
1
This endorsement, effective
12:01 AM
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November 15, 2009
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forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
COMPUTER SYSTEMS RIDER
It is agreed that:
1.
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INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
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CS-(A)COMPUTER SYSTEMS
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Loss resulting directly from a fraudulent
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(1)
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entry of data into, or
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(2)
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change of data or programs within a Computer System; provided the fraudulent entry or change causes
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(a)
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Property to be transferred, paid or delivered,
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(b)
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an account of the Insured, or of its customer, to be added, deleted, debited or credited:
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(c)
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an unauthorized account of a fictitious account to be debited or credited;
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(3)
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voice instructions or advices having been transmitted to the Insured or its agent(s) by telephone;
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and provided further, the fraudulent entry or change is made or caused by an individual acting with the intent to:
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(i)
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cause the Insured or its agent(s) to sustain a loss, and
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(ii)
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obtain financial benefit for that individual or for other persons intended by that individual to receive financial benefit,
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(iii)
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and further provided such voice instruction or advices:
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(a)
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were made by a person who purported to represent an individual
authorized to make such voice instruction or advices; and
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(b)
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were electronically recorded by the Insured or its agent(s).
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(4)
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It shall be a condition to recovery under the Computer Systems Rider that the Insured or its agent(s)shall to the best of their ability electronically record all voice instructions or advices received over
telephone. The Insured or its agent(s) warrant that they shall make
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ENDORSEMENT#
1
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
|
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their best efforts to maintain the electronic recording system on a continuous basis. Nothing, however, in this Rider shall bar the Insured from recovery where no recording is available because of mechanical failure
of the device used in making such recording, or because of failure of the media used to record conversation from any cause, or error or omission of any Employee(s) or agent(s) of the Insured.
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SCHEDULE OF SYSTEMS
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All computer systems utilized by the Insured.
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2.
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As used in this Rider, "Computer System" means:
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(a)
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computers with related peripheral components, including storage components, wherever located,
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(b)
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systems and application software,
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(c)
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terminal devices,
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(d)
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related communication networks or customer
communication systems, and
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(e)
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related Electronic Funds Transfer Systems,
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by which data are electronically collected, transmitted, processed, stored, and retrieved.
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3.
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In addition to the exclusions in the attached bond, the following exclusions are applicable to this Insuring Agreement:
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(a)
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loss resulting directly or indirectly from the theft of confidential information, material or data; and
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(b)
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loss resulting directly or indirectly from
entries or changes made by an individual authorized to have access to a
Computer System who acts in good faith on instructions, unless such
instructions are given to that individual by a software contractor (or
by a partner, officer or employee thereof) authorized by the Insured to
design, develop, prepare, supply service, write or implement programs
for the Insured's Computer System.
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4.
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The following portions of the attached bond are not applicable to this Rider:
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ENDORSEMENT#
1
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
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(a)
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the initial paragraph of the bond preceding the Insuring Agreements which reads "...at any time but discovered during the Bond Period."
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(b)
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Section 9-NON-REDUCTION AND
NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY
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(c)
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Section 10-LIMIT OF LIABILITY
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5.
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The Coverage afforded by this rider applies only to loss discovered by the Insured during the period this Rider is in force.
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6.
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All loss or series of losses involving the fraudulent activity of one individual, or involving fraudulent activity in which one individual is implicated, whether or not
that individual is specifically identified, shall be treated as one loss. 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 one loss.
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7.
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The Limit of Liability for the coverage provided by this Endorsement shall be
$600,000 (
Six Hundred Thousand Dollars
)
, it being understood however, that such liability shall be part of and not in addition to the Limit of Liability stated in Item 3 of the
Declarations of the attached bond.
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8.
|
The Underwriter shall be liable hereunder for the amount by which one loss shall be in excess of
$10,000 (Ten Thousand
Dollars)
, (herein called the Deductible amount) but not in excess of the Limit of Liability stated above.
|
|
|
|
9.
|
If any loss is covered under this Insuring Agreement and any other Insuring Agreement or Coverage, the maximum amount payable for such loss shall not exceed the largest
amount available under any one Insuring Agreement or Coverage.
|
|
|
|
10.
|
Coverage under this Rider shall terminate upon termination or cancellation of the bond to which this Rider is attached. Coverage under this rider may also be terminated or cancelled without cancelling the bond as
an entirety:
|
|
|
|
|
(a)
|
60 days after receipt by the Insured of written notice from the Underwriter of its desire to terminate or cancel coverage under this Rider, or
|
|
(b)
|
immediately upon receipt by the
Underwriter of a written request from the Insured to terminate or cancel
coverage under this Rider.
|
ENDORSEMENT#
1
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
|
The Underwriter shall refund to the Insured the unearned premium for this coverage under this Rider. The refund shall be computed at short rates if this Rider is terminated or cancelled or reduced by notice from, or at
the instance of, the Insured.
|
|
|
11.
|
Section 4-LOSS-NOTICE-PROOF-LEGAL PROCEEDING is amended by adding the following sentence to the end thereof:
|
|
|
|
Proof of Loss resulting from Voice Instructions or advices covered under this bond shall include Electronic Recording of such Voice Instructions or advices.
|
|
|
12.
|
Not withstanding the foregoing, however, coverage afforded by this Rider is not designed to provide protection against loss covered under a separate Electronic and Computer Crime Policy by whatever title assigned
or by whatever Underwriter written. Any loss which is covered under such separate Policy is excluded from coverage under this bond; and the Insured agrees to make claim for such loss under its separate Policy.
|
|
|
13.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
14.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
2
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
TELEFACSIMILE TRANSFER FUND RIDER
It is agreed that:
1.
|
INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
|
|
|
|
TT-(A)TELEFACSIMILE TRANSFER FUND
|
|
|
|
Loss resulting by reason of the Insured having transferred, paid or delivered any funds or Property, established any credit, debited any account, or given any value relying on any fraudulent instructions sent by a
customer or financial institution by Telefacsimile Transmission directed to the Insured, authorizing or acknowledging the transfer, payment, or delivery of funds or property, the establishment of a credit, debiting of any account, or the giving of
value by the Insured, but only if such telefacsimile instructions:
|
|
|
|
|
|
|
1)
|
bear a valid test key exchanged between the Insured and a customer or another financial institution with authority to use such test key for Telefacsimile instructions in the ordinary course of business, but which
test key has been wrongfully obtained by a person who was not authorized to initiate, make, validate or authenticate a test key arrangement; and
|
|
|
|
|
|
|
2)
|
fraudulently purport to have been sent by such customer or financial institution, but which telefacsimile instruction were transmitted without the knowledge or consent of such customer or financial institution by a
person other than such customer or financial institution and which bear a forged signature.
|
|
|
|
|
"Telefacsimile" means a system of transmitting written documents by electronic signals over telephone lines to equipment maintained by the Insured within its communication room for the purposes of reproducing a copy of
said document. It does not mean electronic communication sent by Telex, TWC, or electronic mail, or Automated Clearing House.
|
|
|
2.
|
The limit of Liability for the coverage provided by this rider shall be
$600,000 (Six Hundred Thousand Dollars)
being understood, however, that such limit of liability shall be part of and not in addition to the limit of liability stated in Item 3 of the Declarations of the attached bond.
|
ENDORSEMENT#
2
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
3.
|
The Underwriter shall be liable hereunder for the amount by which a single loss exceeds the Deductible Amount of
$10,000 (Ten
Thousand Dollars)
in excess of the Limit of Liability stated above.
|
|
|
4.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
5.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
3
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
UNAUTHORIZED SIGNATURES RIDER
It is agreed that:
1.
|
INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
|
|
|
|
US-(A)UNAUTHORIZED SIGNATURES
|
|
|
|
Loss resulting directly from the Insured having accepted, paid or cashed any check or withdrawal order, draft, made or drawn on a customer's account which bears the signature or endorsement of one other than a person
whose name and signature is on the application on file with the Insured as a signatory on such account.
|
|
|
2.
|
It shall be a condition precedent to the Insured's right to recovery under this rider that the Insured shall have on file signatures of all persons who are authorized
signatories on such account.
|
|
|
3.
|
The limit of Liability for the coverage provided by this rider shall be
$100,000 (One Hundred Thousand Dollars)
being understood, however, that such limit of liability shall be part of and not in addition to the limit of liability stated in Item 3 of the Declarations of the attached bond.
|
|
|
4.
|
The Underwriter shall not be liable under the Unauthorized Signatures Rider for any loss on account of any instrument unless the amount of such instrument shall be in
excess of $
5,000 (Five Thousand Dollars)
(herein called Deductible Amount) and unless such loss on account of such instrument, after deducting all recoveries on
account of such instrument made prior to the payment of such loss by the Underwriter, shall be in excess of such Deductible Amount and then for such excess only, but in no event more than the amount of the attached bond, or the amount of coverage
under the Unauthorized Signatures Rider, if the amount of such coverage is less than the amount of the attached bond.
|
|
|
5.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
6.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
4
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
VOICE INITIATED FUNDS TRANSFER
It is agreed that:
1.
|
INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
|
|
|
|
|
|
VI-(A) VOICE INITIATED FUNDS TRANSFER FRAUD
|
|
|
|
Loss resulting directly from the Insured having, in good faith, transferred Funds or other Property from a Customer's account through a Computer System covered under the terms of the Computer System Rider in reliance
upon a fraudulent voice instruction transmitted by telephone which was purported to be from:
|
|
|
|
|
(1)
|
an officer, director, partner or employee of a Customer of the Insured who was authorized by the Customer to instruct the Insured to make such transfer;
|
|
|
|
|
|
|
(2)
|
an individual person who is a Customer of the Insured; or
|
|
|
|
|
|
|
(3)
|
an Employee of the Insured in another office of the Insured who was authorized by the Insured to instruct other Employees of the Insured to transfer Funds, and was received by an Employee of the Insured specifically
designated to receive and act upon such instructions,
|
|
|
|
but the voice instruction was not from a person described in (1), (2), or (3) above, provided that:
|
|
|
|
|
|
|
(1)
|
such voice instruction was electronically recorded by the Insured and required password(s) or code word(s) given; and
|
|
|
|
|
|
|
(2)
|
if the transfer was in excess of
$25,000
, the voice instruction was verified by a call-back according to a prearranged
procedure.
|
|
|
|
|
2.
|
"Customer" means an entity or individual which has a written agreement with the Insured authorizing the Insured to rely on voice instructions to make transfers and which
has provided the Insured with the names of persons authorized to initiate such transfers and with which the Insured has established an instruction verification mechanism.
|
|
|
|
|
3.
|
"Funds" means money on deposit in an account
|
ENDORSEMENT#
4
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
4.
|
In addition to the Conditions
and Limitations in the bond and Computer Systems Fraud Insuring
Agreement rider, the following provisions are applicable to the Voice
Initiated Transfer Fraud Insuring Agreement:
|
|
|
|
|
a.
|
This Insuring Agreement does not cover loss resulting directly or indirectly from the assumption of liability by the Insured by contract unless the liability arises from a loss covered by this Insuring Agreement and
would be imposed on the Insured regardless of the existence of the contract.
|
|
|
|
|
b.
|
Proof of loss for claim under the Voice Initiated Transfer Insuring Agreement must include electronic recordings of such voice instructions and the verification call-back, if such call was required.
|
|
|
|
5.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
|
6.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
5
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
COUNTERFEIT CURRENCY AMENDED RIDER
It is agreed that:
1.
|
Insuring Agreement (G) COUNTERFEIT CURRENCY of the
INSURING AGREEMENTS
is deleted in its
entirety and replaced with the following:
|
|
|
|
(G) COUNTERFEIT CURRENCY
|
|
|
|
|
Loss resulting directly from the receipt by the Insured, in good faith, of any counterfeit money, coin or currency of the United States of America, Canada or any other country.
|
|
|
|
2.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
3.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
6
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
CLAIMS PREPARATION RIDER
It is agreed that:
1.
|
INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
|
|
|
|
CP-(A) CLAIMS PREPARATION
|
|
|
|
Loss resulting by reason of reasonable expenses necessarily incurred and paid by the Insured in preparing any valid claim for loss as defined in Insuring Agreements A, B, C, D, E, and F, and any other valid coverage
added by rider which loss exceeds the Single Loss Deductible Amount of
$2,500
.
|
|
|
2.
|
The limit of Liability for the coverage provided by this rider shall be
$50,000 (Fifty Thousand Dollars)
being understood, however, that such limit of liability shall be part of and not in addition to the limit of liability stated in Item 3 of the Declarations of the attached bond.
|
|
|
3.
|
The Underwriter shall be liable hereunder for the amount by which a single loss exceeds the Deductible Amount of
$2,500 (Two
Thousand Five Hundred Dollars)
in excess of the Limit of Liability stated above.
|
|
|
4.
|
Paragraph (k) of SECTION 2. EXCLUSIONS is deleted in its entirety.
|
|
|
5.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
6.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
7
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
TERMINATION AMENDED RIDER (90 DAYS)
It is agreed that:
1.
|
SECTION 13. TERMINATION is deleted in its entirety and replaced with the following:
|
|
|
|
SECTION 13. TERMINATION
|
|
|
|
The Underwriter may terminate this bond as an entirety by furnishing written notice specifying the termination date which cannot be prior to 90 days after the receipt of such written notice by each Investment Company
named as Insured and the Securities and Exchange Commission, Washington, D.C. The Insured may terminate this bond as an entirety by furnishing written notice to the Underwriter. When the Insured cancels, the Insured shall furnish written notice to
the Securities and Exchange Commission, Washington, D.C. prior to 90 days before the effective date of the termination. The Underwriter shall notify all other Investment Companies named as Insured of the receipt of such termination notice and the
termination cannot be effective prior to 90 days after receipt of written notice by all other Investment Companies. Premiums are earned until the termination date as set forth herein.
|
|
|
|
This Bond will terminate as to any one Insured, (other than a registered management investment company), immediately upon taking over of such Insured by a receiver or other liquidator or by State or Federal officials,
or immediately upon the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for he benefit of creditors of the Insured, or immediately upon such Insured ceasing to exist,
whether through merger into another entity, or by disposition of all of its assets.
|
|
|
|
This Bond will terminate as to any registered management investment company upon the expiration of 90 days after written notice has been given to the Securities and Exchange Commission,
Washington, D.C.
|
|
|
|
The Underwriter shall refund the unearned premium computed at short rates in accordance with the standard short rate cancellation tables if terminated by the Insured or pro rata terminated for any other reason.
|
|
|
|
This bond shall terminate
|
ENDORSEMENT#
7
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
a. as to any Employee as soon as any partner, officer or supervisory Employee of the Insured, who is not in collusion with such Employee, shall learn of any dishonest or fraudulent act(s), including Larceny or
embezzlement on the part of such Employee without prejudice to the loss of any Property then in transit in the custody of such Employee and upon the expiration of ninety (90) days after written notice has been given to the Securities and Exchange
Commission, Washington, D.C. (See Section 16(d)) and to the Insured Investment Company, or
|
|
|
|
|
b.
|
as to any Employee 90 days after receipt by each Insured and by the Securities and Exchange Commission of a written notice from the Underwriter of its desire to terminate this bond as to such Employee, or
|
|
|
|
|
c.
|
as to any person, who is a partner, officer or employee of any Electronic Data Processor covered under this bond, from and after the time that the Insured or any partner or officer thereof not in collusion with such
person shall have knowledge or information that such person has committed any dishonest or fraudulent act(s), including Larceny or Embezzlement in the service of the Insured or otherwise, whether such act be committed before or after the time this
bond is effective and upon the expiration of ninety (90) days after written notice has been given by the Underwriter to the Securities and Exchange Commission, Washington DC and to the insured Investment Company.
|
|
|
|
2.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
|
3.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
8
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS AMENDED RIDER (DISCOVERY)
It is agreed that:
1.
|
SECTION 4. LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS is amended by deleting:
|
|
|
|
|
"Discovery occurs when the Insured
|
|
|
|
|
|
|
(a)
|
becomes aware of facts, or
|
|
|
|
(b)
|
receives written notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstance which would cause a reasonable person to assume that a loss covered by the bond
has been or will be incurred even though the exact amount or details of loss may not be then known."
|
|
|
|
|
|
|
and replacing it with the following:
|
|
|
|
|
Discovery occurs when the President, Chief Compliance Officer, or General Counsel of the Named Insured
|
|
|
|
|
|
|
|
|
(a)
|
becomes aware of facts, or
|
|
|
|
(b)
|
receives written notice
of an actual or potential claim by a third party which alleges that the
Insured is liable under circumstance which would cause a reasonable
person to assume that a loss covered by the bond has been or will be
incurred even though the exact amount or details of loss may not be then
known.
|
|
|
|
|
|
2.
|
This rider is effective as of the time the attached bond is effective.
|
|
|
3.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
9
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
CANCELLATION AMENDATORY
(RETURN PRO RATA)
Wherever used herein: (1) "Policy" means the policy or bond to which this endorsement or rider is made part of; (2) "Insurer" means the "Insurer," "Underwriter," "Company" or other name specifically ascribed in this
Policy as the insurance company or underwriter for this Policy; (3) "Company" means the "Named Entity," "Named Corporation," Named Organization," "Named Sponsor," "Named Insured," "First Named Insured," "Insured's Representative," "Policyholder" or
equivalent term stated in Item 1 of the Declarations; and (4) "Period" means the "Policy Period," "Bond Period" or equivalent term stated in the Declarations.
In consideration of the premium charged, it is hereby understood and agreed that notwithstanding anything to the contrary in any CANCELLATION or TERMINATION clause of this Policy (and any endorsement or rider amending
such cancellation or termination clause, including but not limited to any state cancellation/non-renewal amendatory attached to this policy), if this Policy shall be canceled by the Company, the Insurer shall return to the Company the unearned pro
rata proportion of the premium as of the effective date of cancellation.
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
ENDORSEMENT#
10
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
FIDELITY AMENDED RIDER
It is agreed that:
1.
|
Insuring Agreement (A) FIDELITY of the
INSURING AGREEMENTS
is deleted in its entirety
and replaced with the following:
|
|
|
|
(A) FIDELITY
|
|
|
|
|
|
Loss resulting directly from dishonest or fraudulent act(s), including Larceny or Embezzlement committed by an Employee, committed anywhere and whether committed alone or in collusion with others including loss of
Property resulting from such acts of an Employee, which Property is held by the Insured for any purpose or in any capacity and whether or not the Insured is liable thereof.
|
|
|
|
|
|
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean only dishonest or fraudulent act(s) committed by such Employee with the intent:
|
|
|
|
|
|
(a)
|
to cause the Insured to sustain such loss; or
|
|
|
(b)
|
to obtain financial benefit for the Employee, or for any other
person or organization intended by the Employee to receive such benefit,
other than salaries, commissions, fees, bonuses, promotions, awards,
profit sharing, pensions or other employee benefits earned in the normal
course of employment.
|
|
|
|
|
2.
|
|
This rider is effective as of the time the attached bond is effective.
|
|
|
|
3.
|
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
11
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
AUTOMATED PHONE SYSTEM
It is agreed that:
1.
|
INSURING AGREEMENTS
is amended to add the following additional Insuring Agreement to the end thereof:
|
|
|
|
|
AP-(A)AUTOMATED PHONE SYSTEM
|
|
|
|
Loss caused by an Automated Phone System ("APS") Transaction, where the request for such APS Transaction is unauthorized or fraudulent and is made with the manifest intent to deceive; provided, that the entity which
receives such request generally maintains and follows during the bond Period all APS Designated Procedures with respect to APS Transactions. The Unintentional isolated failure of such entity to maintain and follow a particular APS Designated
Procedure in a particular instance shall not preclude coverage under this Insuring Agreement, subject to the exclusions herein and in the Bond.
|
2.
|
As used herein:
|
|
a.
|
"APS Transaction" means any APS Redemption, APS Exchange or APS election.
|
|
b.
|
"APS Redemption" means any redemption of shares issued by an investment company which is requested over the telephone by means of
information transmitted by an individual caller through use of a telephone keypad.
|
|
c.
|
"APS Election" means any election concerning dividend options available to fund shareholders which is made over the telephone by means of information transmitted by an individual caller through use of a telephone
keypad.
|
|
d.
|
"APS Exchange" means any 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,
which exchange is requested over the telephone by means of information transmitted by an individual caller through use of a telephone keypad.
|
|
e.
|
"APS Designated Procedures" means all of the following procedures:
|
|
|
(1)
Election in Application
: No APS Redemption shall be executed unless the shareholder to whose account such an APS Redemption
|
ENDORSEMENT#
11
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
|
relates has previously elected by official designation to permit such APS Redemption.
|
|
|
|
|
|
|
|
(2)
Logging
: All APS Transaction requests shall be logged or otherwise recorded, so as to preserve all of the information transmitted by an individual caller through use of a telephone keypad in the course of such a
request, and the records shall be retained for at least six months.
|
|
|
|
|
|
|
|
(i) Information contained in the records shall be capable of being retrieved through the following methods:
|
|
|
|
|
|
|
|
audio tape and or transactions stored on computer disks
|
|
|
|
|
|
|
|
(ii) Information contained in the records shall be capable of being retrieved and produced within a reasonable time after retrieval of specific information is requested, at a success rate of no less than 85
percent.
|
|
|
|
|
|
|
|
(3)
Identity Test
: The identity of the caller in any request for an APS Transaction shall be tested before execution of that APS Transaction by requiring the entry by the caller of a confidential personal
identification number ("PIN")
|
|
|
|
|
|
|
|
(i) Limited Attempts to Enter PIN: If the caller fails to enter a correct PIN within three attempts, the caller must not be allowed additional attempts during the same (telephone call/twenty-four hour day) to enter the
PIN
|
|
|
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(4)
Written Confirmation
: A written confirmation of any APS Transaction shall be mailed to the shareholder(s) to whose account such APS Transaction relates, at the original record address, by the end of the Insured's
next regular processing cycle, but in no event later than five business days following such APS Transaction.
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(5)
Access to APS Equipment
: Access to the equipment which permits the entity receiving the APS Transaction request to process and effect the transaction shall be limited in the following manner:
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will not be limited
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ENDORSEMENT#
11
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
3.
|
In addition to the exclusions in the attached bond, the coverage provided under this Rider shall not apply to:
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a. Any loss covered under Insuring Agreement (A) FIDELITY;
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b. Any loss resulting from:
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(1)The redemption of shares, where the proceeds of such redemption are made payable to other than:
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(i) the shareholder of record, or
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(ii) a person officially Designated to receive redemption proceeds, or
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(iii) a bank account officially Designated to receive redemption proceeds, or
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(2) The redemption of shares, where the proceeds of such redemption are paid by check mailed to any address, unless such address has either been:
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(i) designated by voice over the telephone or in writing without a signature guarantee, in either case at least thirty (30) days prior to such redemption, or
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(ii) officially Designated, or
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(iii) verified by any other procedures which may be stated below in this Rider, or
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(3) The redemption of shares, where the proceeds of such redemption are paid by wire transfer to other than the shareholder's officially designated bank account, or
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(4) the Intentional failure to adhere to one or more APS Designated Procedures.
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4.
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This rider is effective as of the time the attached bond is effective.
|
ENDORSEMENT#
11
(Continued)
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
5.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
12
This endorsement, effective
12:01 AM November 15, 2009
forms a part of policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
ADDITIONAL FUNDS RIDER (AUTO LIMIT INCREASE OMNIBUS WORDING)
It is agreed that:
1.
|
GENERAL AGREEMENTS
is amended to add the following additional clause to the end thereof:
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AF-A. ADDITIONAL FUNDS
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1.
|
If the Insured shall, while this bond is in force, establish any new funds other than by consolidation or merger with, purchase or acquisition of assets or liabilities of,
another institution, such funds shall automatically be covered hereunder from the date of such establishment without the payment of additional premium for the remainder of the bond period.
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2.
|
If the Insured shall, while this bond is in force, require an increase in limits to comply with SEC Reg. 17g-1, due to an increase in asset size of current funds insured
under the bond or by the addition of new funds, such increase in limits shall automatically be covered hereunder from the date of such increase without the payment of additional premium for the remainder of the bond period.
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2.
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This rider is effective as of the time the attached bond is effective.
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3.
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|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
13
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
FORMER EMPLOYEE AMENDED RIDER (PRIOR EMPLOYEE DISHONESTY)
It is agreed that:
1.
|
Clause D. FORMER EMPLOYEE of the
GENERAL AGREEMENTS
is amended to add the following to
the end thereof:
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If this bond is terminated or cancelled as a result of the Insured learning of a dishonest or fraudulent act of an Employee, the Underwriter agrees to fully reinstate coverage of the Employee automatically, without
specific submission or approval if:
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(1)
|
the Employee's department recommends that the Employee be
reinstated; and
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(2)
|
such recommendation is approved by the
Risk Management Department of the Insured; and
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(3)
|
the dishonest or fraudulent act(s) took place
more than three (3) years prior to the date of knowledge of such act(s) by the Insured and was for an amount of less than $10,000 (Ten Thousand Dollars).
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The Insured agrees to keep full written records concerning the above, to be available to the Underwriter upon request, with all approvals signed and dated by the appropriate approving parties.
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However, the above provision shall not apply if such dishonest or fraudulent act(s) occurred in the course of, or in connection with, the Employee's current or prior employment with the Insured.
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It is further agreed that this bond shall provide coverage for losses involving any Employee for whom this Underwriter or any other insurance company (prior to the inception date of this bond) had issued coverage under
a Stockbroker's Blanket Bond or similar bond with specific knowledge of that particular Employee's prior act(s) of dishonesty.
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2.
|
This rider is effective as of the time the attached bond is effective.
|
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3.
|
Nothing contained here shall be held to vary, alter, waive or extend any of the terms, limitations, conditions, or agreements of the attached bond other than as above
stated.
|
Chartis, Inc. All rights reserved.
ENDORSEMENT#
14
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
NOTICE OF CLAIM
(REPORTING BY E-MAIL)
In consideration of the premium charged, it is hereby understood and agreed as follows:
1.
|
Email Reporting of Claims
: In addition to the postal address set forth for any Notice of Claim Reporting under this policy,
such notice may also be given in writing pursuant to the policy's other terms and conditions to the Insurer by email at the following email address:
|
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c-claim@chartisinsurance.com
|
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Your email must reference the policy number for this policy. The date
of the Insurer's receipt of the emailed notice shall constitute the date of notice.
|
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|
In addition to Notice of Claim Reporting via email, notice may also be given to the Insurer by mailing such notice to: c-Claim for Financial Lines, Chartis Claims, Inc., 175 Water Street, 9th Floor, New York, New York
10038 or faxing such notice to (866) 227-1750.
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2.
|
Definitions
: For this endorsement only, the following definitions shall apply:
|
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|
(a)
|
"Insurer" means the "Insurer," "Underwriter" or "Company" or other
name specifically ascribed in this policy as the insurance company or
underwriter for this policy.
|
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|
(b)
|
"Notice of Claim Reporting" means "notice of
claim/circumstance," "notice of loss" or other reference in the policy
designated for reporting of claims, loss or occurrences or situations
that may give rise or result in loss under this policy.
|
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(c)
|
"Policy" means the policy, bond or other insurance product to which
this endorsement is attached.
|
|
|
|
3.
|
This endorsement does not apply to any Kidnap & Ransom/Extortion Coverage Section, if any, provided by this policy.
|
|
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
ENDORSEMENT#
15
This endorsement, effective
12:01 AM
|
November 15, 2009
|
forms a part of
|
policy number
01-361-33-50
issued to
BLUE CHIP VALUE FUND, INC
by
National Union Fire Insurance Company of Pittsburgh, Pa.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
COVERAGE TERRITORY ENDORSEMENT
Payment of loss under this policy shall only be made in full compliance with all United States of America economic or trade sanction laws or regulations, including, but not limited to, sanctions, laws and regulations
administered and enforced by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC").
ENDORSEMENT#
16
|
|
|
|
|
|
This endorsement, effective
12:01 AM
November 15, 2009
|
forms a part of
|
|
policy number
01-361-33-50
|
|
|
issued to
BLUE CHIP VALUE FUND, INC
|
|
|
|
|
by
|
National Union Fire Insurance Company of Pittsburgh, Pa.
|
|
FORMS INDEX ENDORSEMENT
|
|
|
|
|
|
The contents of the Policy is comprised of the following forms:
|
|
|
|
EDITION
|
|
|
|
FORM NUMBER
|
DATE
|
FORM TITLE
|
|
|
|
|
COMPUTER SYSTEMS RIDER
|
|
|
|
|
TELEFACSIMILE TRANSFER FUND RIDER
|
|
|
|
UNAUTHORIZED SIGNATURES RIDER
|
|
|
|
|
VOICE INITIATED FUNDS TRANSFER
|
|
|
|
|
COUNTERFEIT CURRENCY AMENDED RIDER
|
|
|
|
CLAIMS PREPARATION RIDER
|
|
|
|
|
TERMINATION AMENDED RIDER (90 DAYS)
|
|
|
|
LOSS-NOTICE-PROOF-LEGAL PROCEEDINGS AMENDED RIDER (DISCOVERY)
|
101036
|
04/09
|
CANCELLATION AMENDATORY (RETURN PRO RATA)
|
|
|
FIDELITY AMENDED RIDER
|
|
|
|
|
AUTOMATED PHONE SYSTEM
|
|
|
|
|
ADDITIONAL FUNDS RIDER (AUTO LIMIT INCREASE OMNIBUS WORDING)
|
|
|
FORMER EMPLOYEE AMENDED RIDER (PRIOR EMPLOYEE DISHONESTY)
|
99758
|
08/08
|
NOTICE OF CLAIM (REPORTING BY E-MAIL)
|
|
89644
|
07/05
|
COVERAGE TERRITORY ENDORSEMENT (OFAC)
|
|
78859
|
10/01
|
FORMS INDEX ENDORSEMENT
|
|
|
|
|
|
|
|
ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
|
Blue Chip Value Fund, Inc.
Minutes of
the Board of Directors Meeting
November 3, 2009
(Excerpt relating to Fidelity bond)
Approval of Fidelity Bond Coverage
.
RESOLVED,
that after considering all relevant factors, including the value of the Fund's assets,
the type and terms of the arrangements made for the custody and safekeeping of
such assets, the amount of the premium for such bond and the nature of the
Fund's portfolio securities, the Fund shall purchase insurance under a blanket
bond for a one year term ending November 15, 2010, having coverage of $600,000,
issued by National Union Fire Insurance Company of Pittsburgh;
FURTHER
RESOLVED, that the proper offices of the Fund be, and each of them hereby is,
severally authorized to pay the premium payable with respect to such bond; and
FURTHER
RESOLVED, that the Treasurer be, and hereby is, re-designated as the officer
responsible for making the necessary filings and giving the notices required by
paragraph (g) of Rule 17g-1 under the 1940 Act.
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