Delaware Group of Funds Form 17g-1 as filed December 8, 2006
DELAWARE INVESTMENTS FAMILY OF FUNDS
CERTIFIED RESOLUTIONS
The resolutions set forth below were duly adopted by the Boards of
Trustees/Directors of those investment companies covered by the enclosed
fidelity bond for the period from October 31, 2006 through October 31, 2007 and
remain in full force and effect as of the date hereof:
Resolutions Adopted at a Meeting of the Board of Trustees/Directors Held on
October 26, 2006
Approval of Fidelity Bond Coverage
WHEREAS, this Board of Trustees/Directors has considered the form of the joint
insured broker's blanket bond for the Delaware Investments family of Funds, and
the amount of such joint insured broker's blanket bond, and has considered the
value of the aggregate assets of the Funds to which any covered person may have
access, the type and terms of the arrangements made for the custody and
safekeeping of the assets of the Fund's Series, the nature of the securities in
such Series' portfolio and the relative higher cost of a comparable single
insured bond for each Fund; and
WHEREAS, the Board, including the Trustees/Directors who were not then
interested persons with respect to the Fund, has concluded that the Fund's
participation in the proposed joint insured broker's blanket bond is in the best
interest of the Fund and its shareholders.
NOW, THEREFORE, IT IS RESOLVED, that the officers of the Fund are authorized and
directed to cause each of its Series to participate in the joint insured
broker's blanket bonds in the aggregate amount of $40,000,000, which also covers
the other Delaware Investments Funds, and that the Fund shall pay its respective
share of the premium; and it is further
RESOLVED, that the officers of the Fund are hereby authorized and directed to
execute an agreement under Section 17(g) of the 1940 Act with the other insureds
listed on the broker's blanket bond (the "Agreement"), whereby the Fund will
bear its proportionate share of the premium and coverage of the bond, and the
share of the premium and coverage of the other Funds shall, if appropriate, be
proportionately adjusted; and it is further
RESOLVED, that the officers of the Fund are hereby authorized and directed to
file with the Securities and Exchange Commission ("SEC") a copy of the bond and
a copy of the resolutions approving the amount, type, form and coverage of the
bond and the portion of the premium to be paid by each of the Fund's Series, a
statement showing the amount of the single insured bond which the Fund would
have provided and maintained had it not been named as an insured under the
broker's blanket bond described herein, a statement of the period for which
premiums have been paid and a copy of the Agreement, all pursuant to Section
17(g) of the 1940 Act, and that the Secretary or any Assistant Secretary of the
Fund be designated as the officers directed to make all necessary filings; and
it is further
RESOLVED, that this Board, including those Trustees/Directors who do not have
control over or access to any of the portfolio securities, funds or other assets
of the Fund's Series, hereby conclude that the amount, scope and coverage of the
fidelity bond of the Fund are adequate; and it is further
RESOLVED, that this Board, taking all relevant factors into consideration,
hereby determines that it is in the best interest of the Fund and the Fund's
shareholders for the Fund and each Series to participate in the joint insured
broker's blanket bond described at this meeting, and that the proposed premium
allocation to the Fund and to each Series is fair and reasonable to the Fund and
each Series based upon a consideration of the relative higher premium that would
have been paid if comparable insurance coverage were purchased separately by the
insured parties.
/s/David F. Connor
David F. Connor
Secretary
Chubb Group of Insurance Companies
15 Mountain View Road, Warren, New Jersey 07059
FEDERAL INSURANCE COMPANY
Incorporated under the laws of Indiana
a stock insurance company herein called the COMPANY
Capital Center, 251 North Illinois, Suite 1100
Indianapolis, IN 46204-1927
DECLARATIONS
________________________________________________________________
FINANCIAL INSTITUTION INVESTMENT COMPANY ASSET PROTECTION BOND
Bond Number: 81951478
NAME OF ASSURED (including its Subsidiaries):
DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
1 COMMERCE SQUARE
PHILADELPHIA, PA 19103
ITEM 1. BOND PERIOD: from 12:01 a.m. on October 31, 2006
to 12:01 a.m. on October 31, 2007
ITEM 2. LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
If `Not Covered' is inserted below opposite any specified
INSURING CLAUSE, such INSURING CLAUSE and any other reference
shall be deemed to be deleted. There shall be no deductible
applicable to any loss under INSURING CLAUSE 1. sustained by any
Investment Company.
DEDUCTIBLE
INSURING CLAUSE LIMIT OF LIABILITY AMOUNT
1. Employee $ 20,000,000 $ 0
2. On Premises $ 20,000,000 $ 50,000
3. In Transit $ 20,000,000 $ 50,000
4. Forgery or Alteration $ 20,000,000 $ 50,000
5. Extended Forgery $ 20,000,000 $ 50,000
6. Counterfeit Money $ 20,000,000 $ 50,000
7. Threats to Person $ Not Covered $ N/A
8. Computer System $ 20,000,000 $ 50,000
9. Voice Initiated Funds Transfer
Instruction $ 20,000,000 $ 50,000
10 Uncollectible Items of Deposit $ 50,000 $ 10,000
11.Audit Expense $ 100,000 $ 0
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE
TERMS OF THE FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY
HEREWITH:
17-02-0949 Name of Assured Endorsement
17-02-2367 Telefacsimile Transaction Endorsement
17-02-2345 Automatic Phone Systems
17-02-2365 Stop Payment
17-02-5602 Unauthorized Signature
17-02-2976 Extended Computer Crime
17-02-0955 Non-Cumulative Endorsement
17-02-6260 Amend Discovery to Specific Person
17-02-1582 Revise Item 2 of Dec Page
14-02-9228 Compliance with Applicable Trade Sanction Laws
Endorsement
14-02-12160 Important Notice to Insurer
10-02-1281 Terrorism
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its
authorized officers, but it shall not be valid unless also signed by an
authorized representative of the Company.
/S/ W. Andrew Macan
W. Andrew Macan
Secretary
/s/ Thomas F. Motamed
Thomas F. Motamed
President
/s/ Robert Hamburger
Robert Hamburger
Authorized Representative
=================================================================
The COMPANY, in consideration of payment of the required premium, and in
reliance on the APPLICATION and all other statements made and information
furnished to the COMPANY by the ASSURED, and subject to the DECLARATIONS made a
part of this Bond and to all other terms and conditions of this Bond, agrees to
pay the ASSURED for:
Insuring Clauses
Employee
1. Loss resulting directly from Larceny or Embezzlement committed by any
Employee, alone or in collusion with others.
On Premises
2. Loss of Property resulting directly from robbery, burglary, false pretenses,
common law or statutory larceny, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal, from the possession, custody or
control of the ASSURED, while such Property is lodged or deposited at premises
located anywhere.
In Transit
3. Loss of Property resulting directly from common law or statutory larceny,
misplacement, mysterious unexplainable disappearance, damage or destruction,
while the Property is in transit anywhere:
a. in an armored motor vehicle, including loading and unloading thereof,
b. in the custody of a natural person acting as a messenger of the ASSURED, or
c. in the custody of a Transportation Company and being transported in a
conveyance other than an armored motor vehicle provided, however, that covered
Property transported in such manner is limited to the following:
(1) written records,
(2) securities issued in registered form, which are not endorsed or are
restrictively endorsed, or
(3) negotiable instruments not payable to bearer, which are not endorsed or are
restrictively endorsed.
Coverage under this INSURING CLAUSE begins immediately on the receipt of such
Property by the natural person or Transportation Company and ends immediately on
delivery to the premises of the addressee or to any representative of the
addressee located anywhere.
Forgery Or Alteration
4. Loss resulting directly from:
a. Forgery on, or fraudulent material alteration of, any bills of exchange,
checks, drafts, acceptances, certificates of deposits, promissory notes, due
bills, money orders, orders upon public treasuries, letters of credit, other
written promises, orders or directions to pay sums certain in money, or receipts
for the withdrawal of Property, or
b. transferring, paying or delivering any funds or other Property, or
establishing any credit or giving any value in reliance on any written
instructions, advices or applications directed to the ASSURED authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or other
Property, which instructions, advices or applications fraudulently purport to
bear the handwritten signature of any customer of the ASSURED, or shareholder or
subscriber to shares of an Investment Company, or of any financial institution
or Employee but which instructions, advices or applications either bear a
Forgery or have been fraudulently materially altered without the knowledge and
consent of such customer, shareholder, subscriber, financial institution or
Employee; excluding, however, under this INSURING CLAUSE any loss covered under
INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING CLAUSE 5.
is provided for in the DECLARATIONS of this Bond.
For the purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile signature is treated the same as a handwritten signature.
Extended Forgery
5. Loss resulting directly from the ASSURED having, in good faith, and in the
ordinary course of business, for its own account or the account of others in any
capacity:
a. acquired, accepted or received, accepted or received, sold or delivered, or
given value, extended credit or assumed liability, in reliance on any original
Securities, documents or other written instruments which prove to:
(1) bear a Forgery or a fraudulently material alteration,
(2) have been lost or stolen, or
(3) be Counterfeit, or
b. guaranteed in writing or witnessed any signatures on any transfer,
assignment, bill of sale, power of attorney, guarantee, endorsement or other
obligation upon or in connection with any Securities, documents or other written
instruments.
Actual physical possession, and continued actual physical possession if
taken as collateral, of such Securities, documents or other written instruments
by an Employee, Custodian, or a Federal or State chartered deposit institution
of the ASSURED is a condition precedent to the ASSURED having relied on such
items. Release or return of such collateral is an acknowledgment by the ASSURED
that it no longer relies on such collateral.
For the purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile signature is treated the same as a handwritten signature.
Counterfeit Money
6. Loss resulting directly from the receipt by the ASSURED in good faith of any
Counterfeit money.
Threats To Person
7. Loss resulting directly from surrender of Property away from an office of the
ASSURED as a result of a threat communicated to the ASSURED to do bodily harm to
an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or invitee
of such Employee, or a resident of the household of such Employee, who is, or
allegedly is, being held captive provided, however, that prior to the surrender
of such Property:
a. the Employee who receives the threat has made a reasonable effort to notify
an officer of the ASSURED who is not involved in such threat, and
b. the ASSURED has made a reasonable effort to notify the Federal Bureau of
Investigation and local law enforcement authorities concerning such threat.
It is agreed that for purposes of this INSURING CLAUSE, any Employee of the
ASSURED, as set forth in the preceding paragraph, shall be deemed to be an
ASSURED hereunder, but only with respect to the surrender of money, securities
and other tangible personal property in which such Employee has a legal or
equitable interest.
Computer System
8. Loss resulting directly from fraudulent:
a. entries of data into, or
b. changes of data elements or programs within,
a Computer System, provided the fraudulent entry or change causes:
(1) funds or other property to be transferred, paid or delivered,
(2) an account of the ASSURED or of its customer to be added, deleted, debited
or credited, or
(3) an unauthorized account or a fictitious account to be debited or credited.
Voice Initiated Funds Transfer Instruction
9. Loss resulting directly from Voice Initiated Funds Transfer Instruction
directed to the ASSURED authorizing the transfer of dividends or redemption
proceeds of Investment Company shares from a Customer's account, provided such
Voice Initiated Funds Transfer Instruction was:
a. received at the ASSURED'S offices by those Employees of the ASSURED
specifically authorized to receive the Voice Initiated Funds Transfer
Instruction,
b. made by a person purporting to be a Customer, and
c. made by said person for the purpose of causing the ASSURED or Customer to
sustain a loss or making an improper personal financial gain for such person or
any other person.
In order for coverage to apply under this INSURING CLAUSE, all Voice
Initiated Funds Transfer Instructions must be received and processed in
accordance with the Designated Procedures outlined in the APPLICATION furnished
to the COMPANY.
Uncollectible Items of Deposit
10. Loss resulting directly from the ASSURED having credited an account of a
customer, shareholder or subscriber on the faith of any Items of Deposit which
prove to be uncollectible, provided that the crediting of such account causes:
a. redemptions or withdrawals to be permitted,
b. shares to be issued, or
c. dividends to be paid,
from an account of an Investment Company.
In order for coverage to apply under this INSURING CLAUSE, the ASSURED must
hold Items of Deposit for the minimum number of days stated in the APPLICATION
before permitting any redemptions or withdrawals, issuing any shares or paying
any dividends with respect to such Items of Deposit.
Items of Deposit shall not be deemed uncollectible until the ASSURED'S
standard collection procedures have failed.
Audit Expense
11. Expense incurred by the ASSURED for that part of the cost of audits or
examinations required by any governmental regulatory authority or
self-regulatory organization to be conducted by such authority, organization or
their appointee by reason of the discovery of loss sustained by the ASSURED and
covered by this Bond.
General Agreements
Additional Companies Included As Assured
A. If more than one corporation, or Investment Company, or any combination of
them is included as the ASSURED herein:
(1) The total liability of the COMPANY under this Bond for loss or losses
sustained by any one or more or all of them shall not exceed the limit for which
the COMPANY would be liable under this Bond if all such loss were sustained by
any one of them.
(2) Only the first named ASSURED shall be deemed to be the sole agent of the
others for all purposes under this Bond, including but not limited to the giving
or receiving of any notice or proof required to be given and for the purpose of
effecting or accepting any amendments to or termination of this Bond. The
COMPANY shall furnish each Investment Company with a copy of the Bond and with
any amendment thereto, together with a copy of each formal filing of claim by
any other named ASSURED and notification of the terms of the settlement of each
such claim prior to the execution of such settlement.
(3) The COMPANY shall not be responsible for the proper application of any
payment made hereunder to the first named ASSURED.
(4) Knowledge possessed or discovery made by any partner, director, trustee,
officer or supervisory employee of any ASSURED shall constitute knowledge or
discovery by all the ASSUREDS for the purposes of this Bond.
(5) If the first named ASSURED ceases for any reason to be covered under this
Bond, then the ASSURED next named on the APPLICATION shall thereafter be
considered as the first named ASSURED for the purposes of this Bond.
Representation Made By Assured
B. The ASSURED represents that all information it has furnished in the
APPLICATION for this Bond or otherwise is complete, true and correct. Such
APPLICATION and other information constitute part of this Bond.
The ASSURED must promptly notify the COMPANY of any change in any fact or
circumstance which materially affects the risk assumed by the COMPANY under this
Bond.
Any intentional misrepresentation, omission, concealment or incorrect
statement of a material fact, in the APPLICATION or otherwise, shall be grounds
for recision of this Bond.
Additional Offices Or Employees - Consolidation, Merger Or Purchase Or
Acquisition Of Assets Or Liabilities - Notice To Company
C. If the ASSURED, other than an Investment Company, while this Bond is in
force, merges or consolidates with, or purchases or acquires assets or
liabilities of another institution, the ASSURED shall not have the coverage
afforded under this Bond for loss which has:
(1) occurred or will occur on premises, or
(2) been caused or will be caused by an employee, or
(3) arisen or will arise out of the assets or liabilities, of such institution,
unless the ASSURED:
a. gives the COMPANY written notice of the proposed consolidation, merger or
purchase or acquisition of assets or liabilities prior to the proposed effective
date of such action, and
b. obtains the written consent of the COMPANY to extend some or all of the
coverage provided by this Bond to such additional exposure, and
c. on obtaining such consent, pays to the COMPANY an additional premium.
Change Of Control - Notice To Company
D. When the ASSURED learns of a change in control (other than in an Investment
Company), as set forth in Section 2(a) (9) of the Investment Company Act of
1940, the ASSURED shall within sixty (60) days give written notice to the
COMPANY setting forth:
(1) the names of the transferors and transferees (or the names of the beneficial
owners if the voting securities are registered in another name),
(2) the total number of voting securities owned by the transferors and the
transferees (or the beneficial owners), both immediately before and after the
transfer, and
(3) the total number of outstanding voting securities.
Failure to give the required notice shall result in termination of coverage
for any loss involving a transferee, to be effective on the date of such change
in control.
Court Costs And Attorneys' Fees
E. The COMPANY will indemnify the ASSURED for court costs and reasonable
attorneys' fees incurred and paid by the ASSURED in defense, whether or not
successful, whether or not fully litigated on the merits and whether or not
settled, of any claim, suit or legal proceeding with respect to which the
ASSURED would be entitled to recovery under this Bond. However, with respect to
INSURING CLAUSE 1., this Section shall only apply in the event that:
(1) an Employee admits to being guilty of Larceny or Embezzlement,
(2) an Employee is adjudicated to be guilty of Larceny or Embezzlement, or
(3) in the absence of 1 or 2 above, an arbitration panel agrees, after a review
of an agreed statement of facts between the COMPANY and the ASSURED, that an
Employee would be found guilty of Larceny or Embezzlement if such Employee were
prosecuted.
The ASSURED shall promptly give notice to the COMPANY of any such suit or
legal proceeding and at the request of the COMPANY shall furnish copies of all
pleadings and pertinent papers to the COMPANY. The COMPANY may, at its sole
option, elect to conduct the defense of all or part of such legal proceeding.
The defense by the COMPANY shall be in the name of the ASSURED through attorneys
selected by the COMPANY. The ASSURED shall provide all reasonable information
and assistance as required by the COMPANY for such defense.
If the COMPANY declines to defend the ASSURED, no settlement without the
prior written consent of the COMPANY nor judgment against the ASSURED shall
determine the existence, extent or amount of coverage under this Bond.
If the amount demanded in any such suit or legal proceeding is within the
DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court costs
and attorney's fees incurred in defending all or part of such suit or legal
proceeding.
If the amount demanded in any such suit or legal proceeding is in excess of
the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable
INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees
incurred in defending all or part of such suit or legal proceedings is limited
to the proportion of such court costs and attorney's fees incurred that the
LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable
INSURING CLAUSE bears to the total of the amount demanded in such suit or legal
proceeding.
If the amount demanded is any such suit or legal proceeding is in excess of
the DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM
2. of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees incurred in defending all or part
of such suit or legal proceedings shall be limited to the proportion of such
court costs or attorney's fees that the amount demanded that would be payable
under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total
amount demanded.
Amounts paid by the COMPANY for court costs and attorneys' fees shall be in
addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
Conditions And Limitations
Definitions
1. As used in this Bond:
a. Computer System means a computer and all input, output, processing, storage,
off-line media libraries, and communication facilities which are connected to
the computer and which are under the control and supervision of the operating
system(s) or application(s) software used by the ASSURED.
b. Counterfeit means an imitation of an actual valid original which is intended
to deceive and be taken as the original.
c. Custodian means the institution designated by an Investment Company to
maintain possession and control of its assets.
d. Customer means an individual, corporate, partnership, trust customer,
shareholder or subscriber of an Investment Company which has a written agreement
with the ASSURED for Voice Initiated Funds Transfer Instruction.
e. Employee means:
(1) an officer of the ASSURED,
(2) a natural person while in the regular service of the ASSURED at any of the
ASSURED'S premises and compensated directly by the ASSURED through its payroll
system and subject to the United States Internal Revenue Service Form W-2 or
equivalent income reporting plans of other countries, and whom the ASSURED has
the right to control and direct both as to the result to be accomplished and
details and means by which such result is accomplished in the performance of
such service,
(3) a guest student pursuing studies or performing duties in any of the
ASSURED'S premises,
(4) an attorney retained by the ASSURED and an employee of such attorney while
either is performing legal services for the ASSURED,
(5) a natural person provided by an employment contractor to perform employee
duties for the ASSURED under the ASSURED'S supervision at any of the ASSURED'S
premises,
(6) an employee of an institution merged or consolidated with the ASSURED prior
to the effective date of this Bond,
(7) a director or trustee of the ASSURED, but only while performing acts within
the scope of the customary and usual duties of any officer or other employee of
the ASSURED or while acting as a member of any committee duly elected or
appointed to examine or audit or have custody of or access to Property of the
ASSURED, or
(8) each natural person, partnership or corporation authorized by written
agreement with the ASSURED to perform services as electronic data processor of
checks or other accounting records related to such checks but only while such
person, partnership or corporation is actually performing such services and not:
a. creating, preparing, modifying or maintaining the ASSURED'S computer software
or programs, or
b. acting as transfer agent or in any other agency capacity in issuing checks,
drafts or securities for the ASSURED,
(9) any partner, officer or employee of an investment advisor, an underwriter
(distributor), a transfer agent or shareholder accounting recordkeeper, or an
administrator, for an Investment Company while performing acts coming within the
scope of the customary and usual duties of an officer or employee of an
Investment Company or acting as a member of any committee duly elected or
appointed to examine, audit or have custody of or access to Property of an
Investment Company.
The term Employee shall not include any partner, officer or employee of a
transfer agent, shareholder accounting recordkeeper or administrator:
a. which is not an "affiliated person" (as defined in Section 2(a) of the
Investment Company Act of 1940) of an Investment Company or of the investment
advisor or underwriter (distributor) of such Investment Company, or
b. which is a "bank" (as defined in Section 2(a) of the Investment Company Act
of 1940).
This Bond does not afford coverage in favor of the employers of persons as
set forth in e. (4), (5) and (8) above, and upon payment to the ASSURED by the
COMPANY resulting directly from Larceny or Embezzlement committed by any of the
partners, officers or employees of such employers, whether acting alone or in
collusion with others, an assignment of such of the ASSURED'S rights and causes
of action as it may have against such employers by reason of such acts so
committed shall, to the extent of such payment, be given by the ASSURED to the
COMPANY, and the ASSURED shall execute all papers necessary to secure to the
COMPANY the rights provided for herein.
Each employer of persons as set forth in e.(4), (5) and (8) above and the
partners, officers and other employees of such employers shall collectively be
deemed to be one person for all the purposes of this Bond; excepting, however,
the fifth paragraph of Section 13.
Independent contractors not specified in e.(4), (5) or (8) above,
intermediaries, agents, brokers or other representatives of the same general
character shall not be considered Employees.
f. Forgery means the signing of the name of another natural person with the
intent to deceive but does not mean a signature which consists in whole or in
part of one's own name, with or without authority, in any capacity for any
purpose.
g. Investment Company means any investment company registered under the
Investment Company Act of 1940 and listed under the NAME OF ASSURED on the
DECLARATIONS.
h. Items of Deposit means one or more checks or drafts drawn upon a financial
institution in the United States of America.
i. Larceny or Embezzlement means larceny or embezzlement as defined in Section
37 of the Investment Company Act of 1940.
j. Property means money, revenue and other stamps; securities; including any
note, stock, treasury stock, bond, debenture, evidence of indebtedness,
certificate of deposit, certificate of interest or participation in any
profit-sharing agreement, collateral trust certificate, preorganization
certificate or subscription, transferable share, investment contract, voting
trust certificate, certificate of deposit for a security, fractional undivided
interest in oil, gas, or other mineral rights, any interest or instruments
commonly known as a security under the Investment Company Act of 1940, any other
certificate of interest or participation in, temporary or interim certificate
for, receipt for, guarantee of, or warrant or right to subscribe to or purchase
any of the foregoing; bills of exchange; acceptances; checks; withdrawal orders;
money orders; travelers' letters of credit; bills of lading; abstracts of title;
insurance policies, deeds, mortgages on real estate and/or upon chattels and
interests therein; assignments of such policies, deeds or mortgages; other
valuable papers, including books of accounts and other records used by the
ASSURED in the conduct of its business (but excluding all electronic data
processing records); and, all other instruments similar to or in the nature of
the foregoing in which the ASSURED acquired an interest at the time of the
ASSURED'S consolidation or merger with, or purchase of the principal assets of,
a predecessor or which are held by the ASSURED for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the ASSURED
is liable therefor.
k. Relative means the spouse of an Employee or partner of the ASSURED and any
unmarried child supported wholly by, or living in the home of, such Employee or
partner and being related to them by blood, marriage or legal guardianship.
l. Securities, documents or other written instruments means original (including
original counterparts) negotiable or non-negotiable instruments, or assignments
thereof, which in and of themselves represent an equitable interest, ownership,
or debt and which are in the ordinary course of business transferable by
delivery of such instruments with any necessary endorsements or assignments.
m. Subsidiary means any organization that, at the inception date of this Bond,
is named in the APPLICATION or is created during the BOND PERIOD and of which
more than fifty percent (50%) of the outstanding securities or voting rights
representing the present right to vote for election of directors is owned or
controlled by the ASSURED either directly or through one or more of its
subsidiaries.
n. Transportation Company means any organization which provides its own or its
leased vehicles for transportation or which provides freight forwarding or air
express services.
o. Voice Initiated Election means any election concerning dividend options
available to Investment Company shareholders or subscribers which is requested
by voice over the telephone.
p. Voice Initiated Redemption means any redemption of shares issued by an
Investment Company which is requested by voice over the telephone.
q. Voice Initiated Funds Transfer Instruction means any Voice Initiated
Redemption or Voice Initiated Election.
For the purposes of these definitions, the singular includes the plural and
the plural includes the singular, unless otherwise indicated.
General Exclusions - Applicable to All Insuring Clauses
2. This bond does not directly or indirectly cover:
a. loss not reported to the COMPANY in writing within sixty (60) days after
termination of this Bond as an entirety;
b. loss due to riot or civil commotion outside the United States of America and
Canada, or any loss due to military, naval or usurped power, war or
insurrection. This Section 2.b., however, shall not apply to loss which occurs
in transit in the circumstances recited in INSURING CLAUSE 3., provided that
when such transit was initiated there was no knowledge on the part of any person
acting for the ASSURED of such riot, civil commotion, military, naval or usurped
power, war or insurrection;
c. loss resulting from the effects of nuclear fission or fusion or
radioactivity;
d. loss of potential income including, but not limited to, interest and
dividends not realized by the ASSURED or by any customer of the ASSURED;
e. damages of any type for which the ASSURED is legally liable, except
compensatory damages, but not multiples thereof, arising from a loss covered
under this Bond;
f. costs, fees and expenses incurred by the ASSURED in establishing the
existence of or amount of loss under this Bond, except to the extent covered
under INSURING CLAUSE 11.;
g. loss resulting from indirect or consequential loss of any nature;
h. loss resulting from dishonest acts by any member of the Board of Directors or
Board of Trustees of the ASSURED who is not an Employee, acting alone or in
collusion with others;
i. loss, or that part of any loss, resulting solely from any violation by the
ASSURED or by any Employee:
(1) of any law regulating:
a. the issuance, purchase or sale of securities,
b. securities transactions on security or commodity exchanges or the over the
counter market,
c. investment companies,
d. investment advisors, or
(2) of any rule or regulation made pursuant to any such law; or
j. loss of confidential information, material or data;
k. loss resulting from voice requests or instructions received over the
telephone, provided however, this Section 2.k. shall not apply to INSURING
CLAUSE 7. or 9.
Specific Exclusions - Applicable To All Insuring Clauses Except
Insuring Clause 1.
3. This Bond does not directly or indirectly cover:
a. loss caused by an Employee, provided, however, this Section 3.a. shall not
apply to loss covered under INSURING CLAUSE 2. or 3. which results directly from
misplacement, mysterious unexplainable disappearance, or damage or destruction
of Property;
b. loss through the surrender of property away from premises of the ASSURED as a
result of a threat:
(1) to do bodily harm to any natural person, except loss of Property in transit
in the custody of any person acting as messenger of the ASSURED, provided that
when such transit was initiated there was no knowledge by the ASSURED of any
such threat, and provided further that this Section 3.b. shall not apply to
INSURING CLAUSE 7., or
(2) to do damage to the premises or Property of the ASSURED;
c. loss resulting from payments made or withdrawals from any account involving
erroneous credits to such account;
d. loss involving Items of Deposit which are not finally paid for any reason
provided however, that this Section 3.d. shall not apply to INSURING CLAUSE 10.;
e. loss of property while in the mail;
f. loss resulting from the failure for any reason of a financial or depository
institution, its receiver or other liquidator to pay or deliver funds or other
Property to the ASSURED provided further that this Section 3.f. shall not apply
to loss of Property resulting directly from robbery, burglary, misplacement,
mysterious unexplainable disappearance, damage, destruction or removal from the
possession, custody or control of the ASSURED.
g. loss of Property while in the custody of a Transportation Company, provided
however, that this Section 3.g. shall not apply to INSURING CLAUSE 3.;
h. loss resulting from entries or changes made by a natural person with
authorized access to a Computer System who acts in good faith on instructions,
unless such instructions are given to that person by a software contractor or
its partner, officer, or employee authorized by the ASSURED to design, develop,
prepare, supply, service, write or implement programs for the ASSURED's Computer
System; or
i. loss resulting directly or indirectly from the input of data into a Computer
System terminal, either on the premises of the customer of the ASSURED or under
the control of such a customer, by a customer or other person who had authorized
access to the customer's authentication mechanism.
Specific Exclusions - Applicable To All Insuring Clauses Except
Insuring Clauses 1., 4., And 5.
4. This bond does not directly or indirectly cover:
a. loss resulting from the complete or partial non-payment of or default on any
loan whether such loan was procured in good faith or through trick, artifice,
fraud or false pretenses; provided, however, this Section 4.a. shall not apply
to INSURING CLAUSE 8.;
b. loss resulting from forgery or any alteration;
c. loss involving a counterfeit provided, however, this Section 4.c. shall not
apply to INSURING CLAUSE 5. or 6.
Limit Of Liability/Non-Reduction And Non-Accumulation Of Liability
5. At all times prior to termination of this Bond, this Bond shall continue in
force for the limit stated in the applicable sections of ITEM 2. of the
DECLARATIONS, notwithstanding any previous loss for which the COMPANY may have
paid or be liable to pay under this Bond provided, however, that the liability
of the COMPANY under this Bond with respect to all loss resulting from:
a. any one act of burglary, robbery or hold-up, or attempt thereat, in which no
Employee is concerned or implicated, or
b. any one unintentional or negligent act on the part of any one person
resulting in damage to or destruction or misplacement of Property, or
c. all acts, other than those specified in a. above, of any one person, or
d. any one casualty or event other than those specified in a., b., or c. above,
shall be deemed to be one loss and shall be limited to the applicable LIMIT OF
LIABILITY stated in ITEM 2. 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.
All acts, as specified in c. above, of any one person which
i. directly or indirectly aid in any way wrongful acts of any other person or
persons, or
ii. permit the continuation of wrongful acts of any other person or persons
whether such acts are committed with or without the knowledge of the wrongful
acts of the person so aided, and whether such acts are committed with or without
the intent to aid such other person, shall be deemed to be one loss with the
wrongful acts of all persons so aided.
Discovery
6. This Bond applies only to loss first discovered by an officer of the ASSURED
during the BOND PERIOD. Discovery occurs at the earlier of an officer of the
ASSURED being aware of:
a. facts which may subsequently result in a loss of a type covered by this Bond,
or
b. an actual or potential claim in which it is alleged that the ASSURED is
liable to a third party, regardless of when the act or acts causing or
contributing to such loss occurred, even though the amount of loss does not
exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or details of loss
may not then be known.
Notice To Company - Proof - Legal Proceedings Against Company
7. a. The ASSURED shall give the COMPANY notice thereof at the earliest
practicable moment, not to exceed sixty (60) days after discovery of loss, in an
amount that is in excess of 50% of the applicable DEDUCTIBLE AMOUNT, as stated
in ITEM 2. of the DECLARATIONS.
b. The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, with
full particulars within six (6) months after such discovery.
c. Securities listed in a proof of loss shall be identified by certificate or
bond numbers, if issued with them.
d. Legal proceedings for the recovery of any loss under this Bond shall not be
brought prior to the expiration of sixty (60) days after the proof of loss is
filed with the COMPANY or after the expiration of twenty-four (24) months from
the discovery of such loss.
e. This Bond affords coverage only in favor of the ASSURED. No claim, suit,
action or legal proceedings shall be brought under this Bond by anyone other
than the ASSURED.
f. Proof of loss involving Voice Initiated Funds Transfer Instruction shall
include electronic recordings of such instructions.
Deductible Amount
8. The COMPANY shall not be liable under any INSURING CLAUSES of this Bond on
account of loss unless the amount of such loss, after deducting the net amount
of all reimbursement and/or recovery obtained or made by the ASSURED, other than
from any Bond or policy of insurance issued by an insurance company and covering
such loss, or by the COMPANY on account thereof prior to payment by the COMPANY
of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in ITEM 3. of the
DECLARATIONS, and then for such excess only, but in no event for more than the
applicable LIMITS OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
There shall be no deductible applicable to any loss under INSURING CLAUSE
1. sustained by any Investment Company.
Valuation
9. BOOKS OF ACCOUNT OR OTHER RECORDS
The value of any loss of Property consisting of books of account or other
records used by the ASSURED in the conduct of its business shall be the amount
paid by the ASSURED for blank books, blank pages, or other materials which
replace the lost books of account or other records, plus the cost of labor paid
by the ASSURED for the actual transcription or copying of data to reproduce such
books of account or other records.
The value of any loss of Property other than books of account or other
records used by the ASSURED in the conduct of its business, for which a claim is
made shall be determined by the average market value of such Property on the
business day immediately preceding discovery of such loss provided, however,
that the value of any Property replaced by the ASSURED with the consent of the
COMPANY and prior to the settlement of any claim for such Property shall be the
actual market value at the time of replacement.
In the case of a loss of interim certificates, warrants, rights or other
securities, the production of which is necessary to the exercise of
subscription, conversion, redemption or deposit privileges, the value of them
shall be the market value of such privileges immediately preceding their
expiration if said loss is not discovered until after their expiration. If no
market price is quoted for such Property or for such privileges, the value shall
be fixed by agreement between the parties.
OTHER PROPERTY
The value of any loss of Property, other than as stated above, shall be the
actual cash value or the cost of repairing or replacing such Property with
Property of like quality and value, whichever is less.
Securities Settlement
10. In the event of a loss of securities covered under this Bond, the COMPANY
may, at its sole discretion, purchase replacement securities, tender the value
of the securities in money, or issue its indemnity to effect replacement
securities.
The indemnity required from the ASSURED under the terms of this Section
against all loss, cost or expense arising from the replacement of securities by
the COMPANY'S indemnity shall be:
a. for securities having a value less than or equal to the applicable DEDUCTIBLE
AMOUNT - one hundred (100%) percent;
b. for securities having a value in excess of the DEDUCTIBLE AMOUNT but within
the applicable LIMIT OF LIABILITY - the percentage that the DEDUCTIBLE AMOUNT
bears to the value of the securities;
c. for securities having a value greater than the applicable LIMIT OF LIABILITY
- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of the
applicable LIMIT OF LIABILITY bears to the value of the securities.
The value referred to in Section 10.a., b., and c. is the value in
accordance with Section 9, VALUATION, regardless of the value of such securities
at the time the loss under the COMPANY'S indemnity is sustained.
The COMPANY is not required to issue its indemnity for any portion of a
loss of securities which is not covered by this Bond; however, the COMPANY may
do so as a courtesy to the ASSURED and at its sole discretion.
The ASSURED shall pay the proportion of the Company's premium charge for
the Company's indemnity as set forth in Section 10.a., b., and c. No portion of
the LIMIT OF LIABILITY shall be used as payment of premium for any indemnity
purchased by the ASSURED to obtain replacement securities.
Subrogation - Assignment - Recovery
11. In the event of a payment under this Bond, the COMPANY shall be subrogated
to all of the ASSURED'S rights of recovery against any person or entity to the
extent of such payment. On request, the ASSURED shall deliver to the COMPANY an
assignment of the ASSURED'S rights, title and interest and causes of action
against any person or entity to the extent of such payment.
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be
applied net of the expense of such recovery in the following order:
a. first, to the satisfaction of the ASSURED'S loss which would otherwise have
been paid but for the fact that it is in excess of the applicable LIMIT OF
LIABILITY,
b. second, to the COMPANY in satisfaction of amounts paid in settlement of the
ASSURED'S claim,
c. third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE AMOUNT,
and
d. fourth, to the ASSURED in satisfaction of any loss suffered by the ASSURED
which was not covered under this Bond.
Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a
recovery under this section.
Cooperation Of Assured
12. At the COMPANY'S request and at reasonable times and places designated by
the COMPANY, the ASSURED shall:
a. submit to examination by the COMPANY and subscribe to the same under oath,
b. produce for the COMPANY'S examination all pertinent records, and
c. cooperate with the COMPANY in all matters pertaining to the loss.
The ASSURED shall execute all papers and render assistance to secure to the
COMPANY the rights and causes of action provided for under this Bond. The
ASSURED shall do nothing after loss to prejudice such rights or causes of
action.
Termination
13. If the Bond is for a sole ASSURED, it shall not be terminated unless written
notice shall have been given by the acting party to the affected party and to
the Securities and Exchange Commission, Washington, D.C., not less than sixty
(60) days prior to the effective date of such termination.
If the Bond is for a joint ASSURED, it shall not be terminated unless
written notice shall have been given by the acting party to the affected party,
and by the COMPANY to all ASSURED Investment Companies and to the Securities and
Exchange Commission, Washington, D.C., not less than sixty (60) days prior to
the effective date of such termination.
This Bond will terminate as to any one ASSURED, other than an Investment
Company:
a. immediately on the taking over of such ASSURED by a receiver or other
liquidator or by State or Federal officials, or
b. immediately on the filing of a petition under any State or Federal statute
relative to bankruptcy or reorganization of the ASSURED, or assignment for the
benefit of creditors of the ASSURED, or
c. immediately upon such ASSURED ceasing to exist, whether through merger into
another entity, disposition of all of its assets or otherwise.
The COMPANY shall refund the unearned premium computed at short rates in
accordance with the standard short rate cancellation tables if terminated by the
ASSURED or pro rata if terminated for any other reason.
If any partner, director, trustee, or officer or supervisory employee of an
ASSURED not acting in collusion with an Employee learns of any dishonest act
committed by such Employee at any time, whether in the employment of the ASSURED
or otherwise, whether or not such act is of the type covered under this Bond,
and whether against the ASSURED or any other person or entity, the ASSURED:
a. shall immediately remove such Employee from a position that would enable such
Employee to cause the ASSURED to suffer a loss covered by this Bond; and
b. within forty-eight (48) hours of learning that an Employee has committed any
dishonest act, shall notify the COMPANY, of such action and provide full
particulars of such dishonest act.
The COMPANY may terminate coverage as respects any Employee sixty (60) days
after written notice is received by each ASSURED Investment Company and the
Securities and Exchange Commission, Washington, D.C. of its desire to terminate
this Bond as to such Employee.
Other Insurance
14. Coverage under this Bond shall apply only as excess over any valid and
collectible insurance, indemnity or suretyship obtained by or on behalf of:
a. the ASSURED,
b. a Transportation Company, or
c. another entity on whose premises the loss occurred or which employed the
person causing the loss or engaged the messenger conveying the Property
involved.
Conformity
15. If any limitation within this Bond is prohibited by any
law controlling this Bond's construction, such limitation shall
be deemed to be amended so as to equal the minimum period of
limitation provided by such law.
Change or Modification
16. This Bond or any instrument amending or affecting this Bond may not be
changed or modified orally. No change in or modification of this Bond shall be
effective except when made by written endorsement to this Bond signed by an
authorized representative of the COMPANY.
If this Bond is for a sole ASSURED, no change or modification which would
adversely affect the rights of the ASSURED shall be effective prior to sixty
(60) days after written notice has been furnished to the Securities and Exchange
Commission, Washington, D.C., by the acting party.
If this Bond is for a joint ASSURED, no charge or modification which would
adversely affect the rights of the ASSURED shall be effective prior to sixty
(60) days after written notice has been furnished to all insured Investment
Companies and to the Securities and Exchange Commission, Washington, D.C., by
the COMPANY.
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No: 1 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
NAME OF ASSURED ENDORSEMENT
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as
follows:
DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
FUND
Delaware Group Adviser Funds
Delaware Group Cash Reserve
Delaware Group Equity Funds I
Delaware Group Equity Funds II
Delaware Group Equity Funds III
Delaware Group Equity Funds IV
Delaware Group Equity Funds V
Delaware Group Foundation Funds
Delaware Group Limited-Term Government Funds
Delaware Group Global & International Funds
Delaware Group Government Fund
Delaware Group Income Funds
Delaware VIP Trust
Delaware Group State Tax-Free Income Trust
Delaware Group Tax-Free Fund
Delaware Group Tax-Free Money Fund
Delaware Pooled Trust
Voyageur Insured Funds
Voyageur Intermediate Tax Free Funds
Delaware Investments Municipal Trust
Voyageur Mutual Funds
Voyageur Mutual Funds II
Voyageur Mutual Funds III
Voyageur Tax-Free Funds
Delaware Investments Dividend and Income Fund, Inc.
Delaware Investments Global Dividend and Income Fund, Inc.
Delaware Investments Arizona Municipal Income Fund, Inc.
Delaware Investments Colorado Insured Municipal Income Fund,
Inc.
Delaware Investments Florida Insured Municipal Income Fund, Inc.
Delaware Investments Minnesota Municipal Income Fund II, Inc.
This Endorsement applies to loss discovered after 12:01 a.m. on
October 31, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 2 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
TELEFACSIMILE INSTRUCTION FRAUD ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
12. Telefacsimile Instruction
Loss resulting directly from the ASSURED having transferred, paid or delivered
any funds or other Property or established any credit, debited any account or
given any value on the faith of any fraudulent instructions sent by a Customer,
financial institution or another office of the ASSURED by Telefacsimile directly
to the ASSURED authorizing or acknowledging the transfer, payment or delivery of
funds or Property or the establishment of a credit or the debiting of an account
or the giving of value by the ASSURED where such Telefacsimile instructions:
a. bear a valid test key exchanged between the ASSURED 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
b. fraudulently purport to have been sent by such Customer or financial
institution when such Telefacsimile instructions 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 Forgery of a
signature, provided that the Telefacsimile instruction was verified by a direct
call back to an employee of the financial institution, or a person thought by
the ASSURED to be the Customer, or an employee of another financial institution.
2. By deleting from Section 1., Definitions, the definition of Customer in its
entirety, and substituting the following:
d. Customer means an individual, corporate, partnership, trust customer,
shareholder or subscriber of an Investment Company which has a written agreement
with the ASSURED for Voice Initiated Funds Transfer Instruction or Telefacsimile
Instruction.
3. By adding to Section 1., Definitions, the following:
r. Telefacsimile means a system of transmitting written documents by electronic
signals over telephone lines to equipment maintained by the ASSURED for the
purpose of reproducing a copy of said document. Telefacsimile does not mean
electronic communication sent by Telex or similar means of communication, or
through an electronic communication system or through an automated clearing
house.
4. By adding to Section 3., Specific Exclusions Applicable to All Insuring
Clauses Except Insuring Clause 1. the following:
J. loss resulting directly or indirectly from Telefacsimile instructions
provided, however, this exclusion shall not apply to this INSURING CLAUSE.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 3 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
AUTOMATED TELEPHONE TRANSACTION ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
13. Automated Telephone System Transaction
Loss resulting directly from the ASSURED having transferred funds on the faith
of any Automated Phone System (APS) Transaction, where the request for such APS
Transaction is unauthorized or fraudulent and is made with the intent to
deceive. In order for coverage to apply under this INSURING CLAUSE the ASSURED
shall maintain and follow all APS Designated Procedures. A single failure of the
ASSURED to maintain and follow a particular APS Designated Procedure in a
particular APS Transaction will not preclude coverage under this INSURING
CLAUSE.
2. By adding to Section 1., Definitions, the following:
s. APS Designated Procedures means all of the following procedures:
(1) No APS Transaction shall be executed unless the shareholder or unitholder to
whose account such an APS Transaction relates has previously elected to APS
Transactions. (Election in Application)
(2) All APS Transactions shall be logged or otherwise recorded and the records
shall be retained for at least six (6) months. (Logging)
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) The caller in any request for an APS Transaction, before executing that APS
Transaction must enter a personal identification number (PIN), social security
number and account number. (Identity Test) If the caller fails to enter a
correct PIN within three (3) attempts, the caller must not be allowed additional
attempts during the same telephone call to enter the PIN. The caller may either
be instructed to redial a customer service representative or may be immediately
connected to such a representative. (Limited attempts to Enter PIN)
(4) A written confirmation of any APS Transaction or change of address shall be
mailed to the shareholder or unitholder to whose account such transaction
relates, at the record address, by the end of the insured's next regular
processing cycle, but in no event later than five (5) business days following
such APS Transaction. (Written Confirmation)
(5) 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: (Access to APS Equipment)
t. APS Election means any election concerning various account features available
to the shareholder or unitholder which is made through the Automated Phone
System by means of information transmitted by an individual caller through use
of a Automated Phone System. These features include account statements, auto
exchange, auto asset builder, automatic withdrawal, dividend/capital gain
options, dividend sweep, telephone balance consent and change of address.
u. APS Exchange means any exchange of shares or units in a registered account of
one fund into shares or units in an account with the same tax identification
number and same ownership-type code of another fund in the same complex pursuant
to exchange privileges of the two funds, which exchange is requested through the
Automated Phone System by means of information transmitted by an individual
caller through use of an Automated Phone System.
v. APS Purchase means any purchase of shares or units issued by an Investment
Company which is requested through an Automated Phone System.
w. APS Redemption means any redemption of shares or units issued by an
Investment Company which it requested through the telephone by means of
information transmitted by an individual caller through use of a Automated Phone
System.
x. APS Transaction means any APS Purchase, APS Redemption, APS Election or APS
Exchange.
y. Automated Phone System means an automated system which receives and converts
to executable instructions transmissions through the Automated Phone System
through use of a touch-tone keypad or other tone system; and always excluding
transmissions from a computer system or part thereof.
3. By adding the following Section after Section 4., Specific
Exclusions-Applicable To All Insuring Clauses Except 1., 4., 5.:
Section 4.A.. Specific Exclusion-Applicable to Insuring Clause 13
This Bond does not directly or indirectly cover under Insuring Clause 13:
Loss resulting from:
a. the redemption of shares or units, where the proceeds of such redemption are
made payable to other than:
(1) the shares or units of record,
(2) a person designated to receive redemption proceeds, or
(3) a bank account designated to receive redemption proceeds, or
b. the redemption of shares or units, where the proceeds of such redemption are
paid by check mailed to any address, unless such address has either been
designated the shareholder or unitholder by voice through an Automated Phone
System or in writing, at least thirty (30) days prior to such redemption, or
c. the redemption of shares or units, where shareholder or unitholder of the
ASSURED designated bank account of record.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 4 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
STOP PAYMENT ORDER OR REFUSAL TO PAY CHECK ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
"14. Stop Payment Order or Refusal to Pay Check Loss resulting directly from the
ASSURED being legally liable to pay compensatory damages for:
a. complying or failing to comply with notice from any customer of the ASSURED
or any authorized representative of such customer, to stop payment on any check
or draft made or drawn upon or against the ASSURED by such customer or by any
authorized representative of such customer, or
b. refusing to pay any check or draft made or drawn upon or against the ASSURED
by any customer of the ASSURED or by any authorized representative of such
customer."
2. By adding the following Specific Exclusion:
"Section 4.A. Specific Exclusions - Applicable to INSURING CLAUSE 14
This Bond does not directly or indirectly cover:
a. liability assumed by the ASSURED by agreement under any contract, unless such
liability would have attached to the ASSURED even in the absence of such
agreement,
b. loss arising out of:
(1) libel, slander, wrongful entry, eviction, defamation, false arrest, false
imprisonment, malicious prosecution, assault or battery,
(2) sickness, disease, physical bodily harm, mental or emotional distress or
anguish, or death of any person, or
(3) discrimination."
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 5 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
UNAUTHORIZED SIGNATURE ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
15. Unauthorized Signature
Loss resulting directly from the ASSURED having accepted, paid or cashed any
check or Withdrawal Order made or drawn on or against the account of the
ASSURED'S customer which bears the signature or endorsement of one other than a
person whose name and signature is on file with the ASSURED as a signatory on
such account.
It shall be a condition precedent to the ASSURED'S right of recovery under this
INSURING CLAUSE that the ASSURED shall have on file signatures of all the
persons who are signatories on such account.
2. By adding to Section 1., Definitions, the following:
z. Instruction means a written order to the issuer of an Uncertificated Security
requesting that the transfer, pledge or release from pledge of the specified
Uncertificated Security be registered.
aa. Uncertificated Security means a share, participation or other interest in
property of or an enterprise of the issuer or an obligation of the issuer, which
is:
(1) not represented by an instrument and the transfer of which is registered on
books maintained for that purpose by or on behalf of the issuer, and
(2) of a type commonly dealt in on securities exchanges or markets, and
(3) either one of a class or series or by its terms divisible into a class or
series of shares, participations, interests or obligations.
bb. Withdrawal Order means a non-negotiable instrument, other than an
Instruction, signed by a customer of the ASSURED authorizing the ASSURED to
debit the customer's account in the amount of funds stated therein.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 6 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
EXTENDED COMPUTER SYSTEMS ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
16. Extended Computer Systems
A. Electronic Data, Electronic Media, Electronic Instruction
Loss resulting directly from:
(1) the fraudulent modification of Electronic Data, Electronic Media or
Electronic Instruction being stored within or being run within any system
covered under this INSURING CLAUSE,
(2) robbery, burglary, larceny or theft of Electronic Data, Electronic Media or
Electronic Instructions,
(3) the acts of a hacker causing damage or destruction of Electronic Data,
Electronic Media or Electronic Instruction owned by the ASSURED or for which the
ASSURED is legally liable, while stored within a Computer System covered under
this INSURING CLAUSE, or
(4) the damage or destruction of Electronic Data, Electronic Media or Electronic
Instruction owned by the ASSURED or for which the ASSURED is legally liable
while stored within a Computer System covered under INSURING CLAUSE 16, provided
such damage or destruction was caused by a computer program or similar
instruction which was written or altered to intentionally incorporate a hidden
instruction designed to damage or destroy Electronic Data, Electronic Media, or
Electronic Instruction in the Computer System in which the computer program or
instruction so written or so altered is used.
B. Electronic Communication
Loss resulting directly from the ASSURED having transferred, paid or delivered
any funds or property, established any credit, debited any account or given any
value on the faith of any electronic communications directed to the ASSURED,
which were transmitted or appear to have been transmitted through:
(1) an Electronic Communication System,
(2) an automated clearing house or custodian, or
(3) a Telex, TWX, or similar means of communication, directly into the ASSURED'S
Computer System or Communication Terminal, and fraudulently purport to have been
sent by a customer, automated clearing house, custodian, or financial
institution, but which communications were either not sent by said customer,
automated clearing house, custodian, or financial institution, or were
fraudulently modified during physical transit of Electronic Media to the ASSURED
or during electronic transmission to the ASSURED'S Computer System or
Communication Terminal.
C. Electronic Transmission
Loss resulting directly from a customer of the ASSURED, any automated clearing
house, custodian, or financial institution having transferred, paid or delivered
any funds or property, established any credit, debited any account or given any
value on the faith of any electronic communications, purporting to have been
directed by the ASSURED to such customer, automated clearing house, custodian,
or financial institution initiating, authorizing, or acknowledging, the
transfer, payment, delivery or receipt of funds or property, which
communications were transmitted through:
(1) an Electronic Communication System,
(2) an automated clearing house or custodian, or
(3) a Telex, TWX, or similar means of communication, directly into a Computer
System or Communication Terminal of said customer, automated clearing house,
custodian, or financial institution, and fraudulently purport to have been
directed by the ASSURED, but which communications were either not sent by the
ASSURED, or were fraudulently modified during physical transit of Electronic
Media from the ASSURED or during electronic transmission from the ASSURED'S
Computer System or Communication Terminal, and for which loss the ASSURED is
held to be legally liable.
2. By adding to Section 1., Definitions, the following:
cc. Communication Terminal means a teletype, teleprinter or video display
terminal, or similar device capable of sending or receiving information
electronically. Communication Terminal does not mean a telephone.
dd. Electronic Communication System means electronic communication operations by
Fedwire, Clearing House Interbank Payment System (CHIPS), Society of Worldwide
International Financial Telecommunication (SWIFT), similar automated interbank
communication systems, and Internet access facilities.
ee. Electronic Data means facts or information converted to a form usable in
Computer Systems and which is stored on Electronic Media for use by computer
programs.
ff. Electronic Instruction means computer programs converted to a form usable in
a Computer System to act upon Electronic Data.
gg. Electronic Media means the magnetic tape, magnetic disk, optical disk, or
any other bulk media on which data is recorded.
3. By adding the following Section after Section 4., Specific
Exclusions-Applicable to All INSURING CLAUSES except 1., 4., and 5.:
Section 4.A. Specific Exclusions-Applicable to INSURING CLAUSE 16
This Bond does not directly or indirectly cover:
a. loss resulting directly or indirectly from Forged, altered or fraudulent
negotiable instruments, securities, documents or written instruments used as
source documentation in the preparation of Electronic Data;
b. loss of negotiable instruments, securities, documents or written instruments
except as converted to Electronic Data and then only in that converted form;
c. loss resulting from mechanical failure, faulty construction, error in design,
latent defect, wear or tear, gradual deterioration, electrical disturbance,
Electronic Media failure or breakdown or any malfunction or error in programming
or error or omission in processing;
d. loss resulting directly or indirectly from the input of Electronic Data at an
authorized electronic terminal of an Electronic Funds Transfer System or a
Customer Communication System by a person who had authorized access from a
customer to that customer's authentication mechanism; or
e. liability assumed by the ASSURED by agreement under any contract, unless such
liability would have attached to the ASSURED even in the absence of such
agreement; or
f. loss resulting directly or indirectly from:
(1) written instruction unless covered under this INSURING CLAUSE; or
(2) instruction by voice over the telephone, unless covered under this INSURING
CLAUSE.
4. By adding to Section 9., Valuation, the following:
Electronic Data, Electronic Media, Or Electronic Instruction
In case of loss of, or damage to, Electronic Data, Electronic Media or
Electronic Instruction used by the ASSURED in its business, the COMPANY shall be
liable under this Bond only if such items are actually reproduced form other
Electronic Data, Electronic Media or Electronic Instruction of the same kind or
quality and then for not more than the cost of the blank media and/or the cost
of labor for the actual transcription or copying of data which shall have been
furnished by the ASSURED in order to reproduce such Electronic Data, Electronic
Media or Electronic Instruction subject to the applicable SINGLE LOSS LIMIT OF
LIABILITY.
However, if such Electronic Data can not be reproduced and said Electronic Data
represents Securities or financial instruments having a value, then the loss
will be valued as indicated in the SECURITIES and OTHER PROPERTY paragraphs of
this Section.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 7 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
NON-CUMULATIVE ENDORSEMENT
It is agreed that in the event of a loss covered under this Bond and also
covered under FEDERAL INSURANCE COMPANY`S BOND No. 81951478 issued to DELAWARE
MANAGEMENT HOLDINGS, INC., the SINGLE LOSS LIMIT OF LIABILITY under this Bond
shall be reduced by any payment under BOND No. 81951478 and only the remainder,
if any, shall be applicable to such loss hereunder.
Name and Address of Assured:
DELAWARE INVESTMENT COMPANY FAMILY OF
FUNDS
1 COMMERCE SQUARE
PHILADELPHIA, PA 19103
Signature of Assured's Representative
Position/Title
Date
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No.: 8
Bond Number: 81951478 BOND
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
AMEND DISCOVERY ENDORSEMENT
It is agreed that this Bond is amended by deleting Section 6., Discovery, in its
entirety and substituting the following:
6. Discovery
This Bond applies only to loss first discovered by the General Counsel or Risk
Management Department of the ASSURED during the BOND PERIOD. Discovery occurs at
the earlier of the General Counsel or Risk Management Department of the ASSURED
being aware of:
a. facts which may subsequently result in a loss of a type covered by this Bond,
or
b. an actual or potential claim in which it is alleged that the ASSURED is
liable to a third party, regardless of when the act or acts causing or
contributing to such loss occurred, even though the amount of loss does not
exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or details of loss
may not then be known.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
FEDERAL INSURANCE COMPANY
Endorsement No. 9 BOND
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
REVISE ITEM 2. ENDORSEMENT
It is agreed that this Bond is amended by deleting ITEM 2. in its entirety on
the DECLARATIONS and substituting the following:
ITEM 2. LIMITS OF LIABILITY-DEDUCTIBLE AMOUNTS:
If "Not Covered" is inserted below opposite any specified INSURING CLAUSE, such
INSURING CLAUSE and any other reference to such INSURING CLAUSE in this Bond
shall be deemed to be deleted. There shall be no deductible applicable to any
loss under INSURING CLAUSE 1 sustained by any Investment Company.
SINGLE LOSS DEDUCTIBLE
INSURING CLAUSE LIMIT OF LIABILITY AMOUNT
1. Employee $20,000,000 $ 0
2. On Premises $20,000,000 $50,000
3. In Transit $20,000,000 $50,000
4. Forgery or Alteration $20,000,000 $50,000
5. Extended Forgery $20,000,000 $50,000
6. Counterfeit Currency $20,000,000 $50,000
7. Threats to Person $Not Covered $ N/A
8. Computer System $20,000,000 $50,000
9 Voice Initiated Funds Transfer
Instruction $20,000,000 $50,000
10. Uncollectible Items of Deposit $ 50,000 $10,000
11. Audit Expense $ 100,000 $ 0
12. Telefacsimile Instruction $ 50,000 $10,000
13. Automated Telephone Transaction $ 50,000 $10,000
14. Stop Payment Order or Refusal
to Pay Check $20,000,000 $50,000
15. Unauthorized Signature $20,000,000 $50,000
16. Extended Computer Systems $20,000,000 $50,000
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
Effective date of
this endorsement: October 31, 2006 FEDERAL INSURANCE COMPANY
Endorsement No.:10 BOND
To be attached to and form
a part of Policy
Number: 81951478
Issued to: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER
It is agreed that this insurance does not apply to the extent that trade or
economic sanctions or other laws or regulations prohibit the coverage provided
by this insurance.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 29, 2006
By
/s/ Robert Hamburger
Authorized Representative
================================================================================
Chubb & Son, div. of Federal Insurance Company as manager of the member insurers
of the Chubb Group of Insurance Companies
POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(for policies with no terrorism exclusion or sublimit)
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002
(the "Act") effective November 26, 2002, this policy makes available to you
insurance for losses arising out of certain acts of international terrorism.
Terrorism is defined as any act certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United
States, to be an act of terrorism; to be a violent act or an act that is
dangerous to human life, property or infrastructure; to have resulted in damage
within the United States, or outside the United States in the case of an air
carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals acting on behalf of any foreign person
or foreign interest, as part of an effort to coerce the civilian population of
the United States or to influence the policy or affect the conduct of the United
States Government by coercion.
You should know that the insurance provided by your policy for losses caused by
acts of terrorism is partially reimbursed by the United States under the formula
set forth in the Act. Under this formula, the United States pays 90% of covered
terrorism losses that exceed the statutorily established deductible to be paid
by the insurance company providing the coverage. The portion of your policy's
annual premium that is attributable to insurance for such acts of terrorism is:
$ -0-.
If you have any questions about this notice, please contact your agent or
broker.
================================================================================
Important Notice:
The SEC Requires Proof of Your Fidelity Insurance Policy
Your company is now required to file an electronic copy of your fidelity
insurance coverage (Chubb's ICAP Bond policy) to the Securities and Exchange
Commission (SEC), according to rules adopted by the SEC on June 12, 2006.
Chubb is in the process of providing your agent/broker with an electronic copy
of your insurance policy as well as instructions on how to submit this proof of
fidelity insurance coverage to the SEC. You can expect to receive this
information from your agent/broker shortly.
The electronic copy of your policy is provided by Chubb solely as a convenience
and does not affect the terms and conditions of coverage as set forth in the
paper policy you receive by mail. The terms and conditions of the policy mailed
to you, which are the same as those set forth in the electronic copy, constitute
the entire agreement between your company and Chubb.
If you have any questions, please contact your agent or broker.