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Chubb
Group of Insurance Companies
15
Mountain View Road, Warren, New Jersey 07059
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DECLARATIONS
FINANCIAL
INSTITUTION INVESTMENT
COMPANY
ASSET PROTECTION BOND
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NAME
OF ASSURED (including its
Subsidiaries):
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Bond
Number: 81948005
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FEDERATED
FUNDS C/O FEDERATED INVESTORS, INC.
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FEDERAL
INSURANCE COMPANY
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1001
LIBERTY AVENUE
PITTSBURGH,
PA 15222
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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
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INSURING CLAUSE
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LIMIT OF LIABILITY
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DEDUCTIBLE AMOUNT
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1. Employee
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$ 15,000,000
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$ 0
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2. On
Premises
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$ 15,000,000
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$ 250,000
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3. In
Transit
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$ 15,000,000
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$ 250,000
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4. Forgery
or Alteration
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$ 15,000,000
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$ 250,000
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5. Extended
Forgery
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$ 15,000,000
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$ 250,000
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6. Counterfeit
Money
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$ 15,000,000
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$ 250,000
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7. Threats
to Person
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$ 15,000,000
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$ 250,000
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8. Computer
System
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$ 15,000,000
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$ 250,000
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9. Voice
Initiated Funds Transfer Instruction
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$ 1,000,000
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$ 250,000
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10. Uncollectible
Items of Deposit
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$ 1,000,000
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$ 250,000
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11. Audit
Expense
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$ 250,000
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$ 100,000
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12. Extended
Computer Systems
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$ 15,000,000
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$ 250,000
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13. Telefacsimile
Instruction Fraud
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$ 15,000,000
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$ 250,000
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14.
Unauthorized Signature
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$ 15,000,000
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$ 250,000
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ITEM 3.
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THE
LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING
ENDORSEMENTS EXECUTED SIMULTANEOUSLY
HEREWITH:
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/s/W.
Andrew Macan
Secretary
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/s/John
J. Degnan
President
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Countersigned
by
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/s/Robert Hamburger
Authorized
Representative
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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:
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Insuring
Clauses
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Employee
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1.Loss
resulting directly from Larceny or Embezzlement committed
by any Employee,
alone or in collusion with others.
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On
Premises
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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.
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In
Transit
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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 unloadingthereof,
b.in the custody of a natural
person acting as a messenger of theASSURED, or
c.in the custody of a
Transportation Company and being transportedin a conveyance other than an armored
motor vehicle provided,however, that covered Property
transported in such manner islimited 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.
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Forgery
Or Alteration
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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;
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Forgery
Or Alteration
(continued)
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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.
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Extended
Forgery
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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.
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Counterfeit
Money
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6.Loss
resulting directly from the receipt by the ASSURED in good faith of any
Counterfeit
money.
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Threats
To Person
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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.
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Computer
System
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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.
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Voice
Initiated Funds
Transfer
Instruction
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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.
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Uncollectible
Items of Deposit
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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.
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Audit
Expense
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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.
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General
Agreements
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Additional
Companies
Included
As Assured
Additional
Companies
Included
As Assured
(continued)
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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.
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Representation
Made By Assured
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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.
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Additional
Offices Or Employees – Consideration, Merger Or Purchase Or Acquisition Of
Assets Or Liabilities – Notice To Company
Additional
Offices Or Employees – Consideration, Merger Or Purchase Or Acquisition Of
Assets Or Liabilities – Notice To Company
(continued)
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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.
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Change
of Control
Notice
To Company
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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.
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Court
Costs And
Attorneys’
Fees
Court
Costs And
Attorneys’
Fees
(continued)
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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.
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Conditions
And Limitations
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Definitions
Definitions
(continued)
Definitions
(continued)
Definitions
(continued)
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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 record keeper,
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 profitsharing 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.
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General
Exclusions – Applicable to All Insuring Clauses
General
Exclusions – Applicable to All Insuring Clauses
(continued)
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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.
Specific
Exclusions – Applicable To All Insuring Clauses Except Insuring Clause
1.
(continued)
|
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 premise 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 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
|
|
Limit
Of Liability/Non-Reduction And Non-Accumulation Of Liability
(continued)
|
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.
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|
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.
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|
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;
|
|
Securities
Settlement
(continued)
|
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.
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|
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.
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|
Termination
(continued)
|
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.
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|
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.
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|
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.
|
|
Effective
date of
this
endorsement/rider: October 1, 2009
|
FEDERAL
INSURANCE COMPANY
|
|
Endorsement/Rider
No. 1
|
|
|
To
be attached to and
from
a part of Bond
No. 81948005
|
|
|
Issued
to: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
2.
|
The
third paragraph in Section 16, Change or Modification, is deleted in its
entirety and replaced with the
following:
|
|
Effective
date of
this
endorsement/rider: October 1, 2009
|
FEDERAL
INSURANCE COMPANY
|
|
Endorsement/Rider
No. 2
|
|
|
To
be attached to and from a part of Bond
Number: 81948005
|
|
|
Issued
to: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 3
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 4
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 5
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
g.
|
Investment Company means
any investment company listed under the NAME OF ASSURED on the
DECLARATIONS.
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 6
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
|
(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 12, 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.
|
|
|
(1)
|
an
Electronic Communication
System,
|
|
|
(2)
|
an
automated clearing house or custodian,
or
|
|
|
(3)
|
a
Telex, TWX, or similar means of
communication,
|
|
|
(1)
|
an
Electronic Communication
System
|
|
|
(2)
|
an
automated clearing house or custodian,
or
|
|
|
(3)
|
a
Telex, TWX, or similar means of
communication,
|
|
|
r.
|
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.
|
|
|
s.
|
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.
|
|
|
t.
|
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.
|
|
|
u.
|
Electronic Instruction
means computer programs converted to a form usable in a Computer System to act
upon Electronic
Data.
|
|
|
v.
|
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.:
|
|
|
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:
|
|
|
(2)
|
instruction
by voice over the telephone, unless covered under this INSURING
CLAUSE.
|
|
4.
|
By
adding to Section 9., Valuation, the
following:
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 7
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
|
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:
|
|
|
w.
|
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.
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 8
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
|
x.
|
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.
|
|
|
y.
|
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.
|
|
|
z.
|
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.
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 9
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
(10)
|
a
consultant retained by the ASSURED and an employee of such consultant
while either is performing consulting services for the ASSURED pursuant to
a written contract.
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 10
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
1.
|
By
adding to General Agreements, Section C., Additional Offices Or
Employees-Consolidation, Merger Or Purchase Or Acquisition Of Assets Or
Liabilities-Notice To Company, the
following:
|
|
2.
|
Interim Reporting Period
means the period from 10/1/2009 to 1/1/2010, and each 90 day period
thereafter until the expiration of the BOND
PERIOD.
|
|
3.
|
This
endorsement shall not modify or change the applicable LIMITS OF LIABILITY
stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the
total number of newly created investment companies registered under the
Investment Company Act of 1940 and reported to the COMPANY in accordance
with the terms and conditions of this
endorsement.
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 11
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
|
b.
|
an
actual or potential claim in which it is alleged that the ASSURED is
liable to a third party,
|
|
FEDERAL
INSURANCE COMPANY
|
|
|
Endorsement
No. 12
|
|
|
Bond
Number: 81948005
|
|
|
NAME
OF ASSURED: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
(11)
|
a
natural person who resigns, retires or is terminated from the service of
the ASSURED during the BOND PERIOD provided that this
applies:
|
|
|
a.
|
for
a period of ninety (90) days subsequent to such resignation, retirement or
termination but not beyond the date of expiration or termination of the
Bond; and
|
|
|
b.
|
if
such resignation, retirement or termination has not arisen from or in
connection with the discovery by the ASSURED of any actual or alleged
dishonest, fraudulent or criminal act(s) of such
person.
|
|
Effective
date of
this
endorsement/rider: October 1, 2009
|
FEDERAL
INSURANCE COMPANY
|
|
Endorsement/Rider
No. 13
|
|
|
To
be attached to and
from
a part of Bond
No. 81948005
|
|
|
Issued
to: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
|
(b)
|
guaranteed
in writing or witnessed any signature upon any transfer, assignment, bill
of sale, power of attorney, Guarantee, endorsement, stock or bond power or
any items listed in a. above; or purportedly guaranteed in writing or
witnessed any signature on any transfer, assignment, bill of sale, power
or attorney, Guarantee, endorsement, stock or bond power or any items
listed in a. above which purported guarantee was effected by the
unauthorized use of a stamp or medallion of or belonging to the ASSURED
which was lost, stolen or counterfeited and for which loss the ASSURED is
legally liable;
|
|
Effective
date of
this
endorsement/rider: October 1, 2009
|
FEDERAL
INSURANCE COMPANY
|
|
Endorsement/Rider
No. 14
|
|
|
To
be attached to and
from
a part of Bond
No. 81948005
|
|
|
Issued
to: FEDERATED FUNDS C/O FEDERATED INVESTORS,
INC.
|
|
|
a.
|
immediately
on the receipt by the COMPANY of a written notice from the ASSURED of its
decision to terminate this Bond, or
|
|
b.
|
immediately
on the appointment of a trustee, receiver or liquidator to act on behalf
of the ASSURED, or taking over the ASSURED by State or Federal officials,
or
|
|
c.
|
immediately
on the dissolution of the ASSURED,
or
|
|
d.
|
immediately
on the taking over of the ASSURED by another entity,
or
|
|
e.
|
immediately
on expiration of the BOND PERIOD.
|
|
|
(1)
|
immediately
on the ASSURED, or any of its directors, trustees or officers not acting
in collusion with such Employee, learning 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,
or
|
|
|
(2)
|
fifteen
(15) days after the receipt by the ASSURED of a written notice from the
COMPANY of its decision to terminate this Bond as to any Employee.
|
|
·
|
Chubb’s
financial results during calendar year 2008 stand out in the
industry.
|
|
·
|
Chubb’s
balance sheet is backed with investments that we believe emphasize
quality, safety, and liquidity, with total invested assets of $38.7
billion as of December 31, 2008.
|
|
·
|
With
127 years in the business, Chubb is here for the long term, which is why
we vigorously guard our financial strength and take what we believe is a
prudent approach to assuming risk - on both the asset and liability sides
of our balance sheet.
|
|
·
|
Chubb
is one of the most highly rated property and casualty companies in the
industry, which is a reflection of our overall quality, strong financial
condition, and strong capital
position.
|
|
o
|
Chubb’s
financial strength rating is “A++” from A.M. Best Company, “AA” from
Fitch, “Aa2” from Moody’s, and “AA” from Standard & Poor’s – the
leading independent evaluators of the insurance
industry.
|
|
o
|
Chubb’s
senior unsecured corporate debt rating from Standard & Poor’s was
upgraded from “A” to “A+” on December 15, 2008. Standard & Poor’s also
reaffirmed all of Chubb’s ratings with a “stable”
outlook.
|
|
o
|
A.M.
Best, Fitch, and Moody’s recently affirmed all of Chubb’s ratings with a
“stable” outlook. (For reference, A.M. Best reaffirmed us on 12/23/08,
Fitch on 2/13/09, and Moody’s on
2/4/09.)
|
|
o
|
For
more than 50 years, Chubb has remained part of an elite group of insurers
that have maintained A.M. Best’s highest
ratings.
|
|
·
|
Chubb
was named to Standard & Poor’s list of S&P 500 Dividend
Aristocrats, one of 52 companies in the S&P 500 index that have
increased dividends every year for at least 25 consecutive
years.
|
|
·
|
Chubb’s
investment portfolio has held up extremely well. Chubb takes what we
believe is a conservative approach to selecting and managing our assets.
Furthermore, Chubb does not have any direct exposure to the subprime
mortgage-backed securities market, and we stopped doing new credit
derivative business in 2003 and put existing business in
runoff.
|
|
|
RESOLVED,
|
that
the Board, including a majority of the Independent Trustees,
hereby: determines that each Fund’s participation in the Bond
and D&O/E&O Policy is in the best interests of the Fund;
authorizes the procurement of insurance for the Funds in the amount
described in the materials provided to the Board; and delegates to the
Executive Committee the authority to approve the carriers and approve, if
necessary, changes to the Side A Policy, and authorizes John A. Barrett to
bind the Bond and D&O/E&O coverage at the best price and terms
available for the Funds, as determined by the Executive
Committee.
|
|
|
RESOLVED,
that the Committee hereby approves the acquisition of the joint Fidelity
Bond for the period from October 1, 2009, through September 30, 2010,
bonding the Officers, Directors, Employees and Agents of the Funds against
larceny and embezzlement, in the aggregate amount of
$50,000,000;
|
|
|
FURTHER
RESOLVED, that the Committee hereby approves the acquisition of the
D&O/E&O policies for the period from October 1, 2009, through
September 30, 2010, in the aggregate amount of
$60,000,000;
|
|
|
FURTHER
RESOLVED, that the Committee hereby approves the Mutual Fund Directors and
Officers “Side A” insurance coverage to insure the Funds’ directors and
officers against unindemnified claims in the amount of $25,000,000 for a
period commencing October 1, 2009 through September 30, 2010;
and
|
|
|
FURTHER
RESOLVED, that the Funds’ administrator, Federated Administrative Services
(the “Administrator”), is hereby directed and authorized to bind coverage
on behalf of the Funds, their directors and officers, for the combination
of insurance coverages reviewed with the full Board at its last regular
meeting and the current Executive Committee
meeting.
|
|
FIDELITY
BOND COVERAGE REVIEW - FEDERATED FUNDS
For
September 30, 2009
|
|||
|
Fund
|
Monthly
Average Net Assets
|
Gross
Assets
(Assets
& Liabilities*)
|
Required
Coverage by Investment Co.
|
|
Cash
Trust Series, Inc.
|
|||
|
GCS
|
$803,571,110
|
||
|
MCS
|
$621,011,117
|
||
|
PCS
|
$5,766,751,553
|
||
|
TCS
|
$1,295,465,360
|
||
|
$8,656,535,123
|
$2,500,000
|
||
|
Cash
Trust Series II
|
|||
|
TCSII
|
$125,219,851
|
||
|
$127,724,248
|
$525,000
|
||
|
Edward
Jones Money Market Fund
|
|||
|
JONES
|
$16,103,819,534
|
||
|
$16,425,895,925
|
$2,500,000
|
||
|
Federated
Adjustable Rate Securities Fund
|
|||
|
FARSF
|
$530,626,564
|
||
|
$541,239,095
|
$900,000
|
||
|
Federated
Core Trust
|
|||
|
FEDACC
|
$1,035,747
|
||
|
HYCORE
|
$1,391,039,981
|
||
|
IPCORE
|
$24,839,636
|
||
|
MBCORE
|
$1,919,098,073
|
||
|
$3,402,733,706
|
$2,100,000
|
||
|
MBCORE
is a Blended Fund and its assets are also counted in participating
Federated Funds
|
|||
|
Federated
Core Trust II, LP
|
|||
|
EMCORE
|
$430,111,874
|
||
|
MPCORE
|
$32,394,513
|
||
|
$471,756,515
|
$750,000
|
||
|
Federated
Core Trust III
|
|||
|
FPTFF
|
$3,659,864
|
||
|
$3,733,061
|
$125,000
|
||
|
Federated
Equity Funds
|
|||
|
FCAF
|
$1,487,854,419
|
||
|
FICF
|
$637,741,950
|
||
|
FKLCF
|
$106,016,228
|
||
|
FMGSF
|
$342,622,860
|
||
|
FKAUF
|
$6,930,483,018
|
||
|
FKSCF
|
$1,039,028,022
|
||
|
FISVF
|
$8,161,269
|
||
|
FCSVF
|
$115,190,266
|
||
|
FCVF
|
$387,839,269
|
||
|
FCMVF
|
$1,893,218
|
||
|
FPBF
|
$1,215,189,795
|
||
|
FSVF
|
$793,130,983
|
||
|
FMOPF
|
$1,495,672,297
|
||
|
$14,852,040,066
|
$2,500,000
|
||
|
Federated
Equity Income Fund, Inc.
|
|||
|
FEIF
|
$552,634,531
|
||
|
$563,687,222
|
$900,000
|
||
|
Federated
Fixed Income Securities, Inc.
|
|||
|
FMUSF
|
$3,227,904,882
|
||
|
SIF
|
$947,013,693
|
||
|
$4,258,416,947
|
$2,500,000
|
||
|
Federated
GNMA Trust
|
|||
|
FGNMA
|
$474,415,124
|
||
|
$483,903,426
|
$750,000
|
||
|
Federated
Government Income Securities, Inc.
|
|||
|
GISI
|
$472,952,685
|
||
|
$482,411,739
|
$750,000
|
||
|
Federated
High Income Bond Fund, Inc
|
|||
|
FHIBF
|
$991,069,068
|
||
|
$1,010,890,449
|
$1,250,000
|
||
|
Federated
High Yield Trust
|
|||
|
FHYT
|
$184,131,344
|
||
|
$187,813,971
|
$600,000
|
||
|
Federated
Income Securities Trust
|
|||
|
FRRBF
|
$26,253,464
|
||
|
FCIF
|
$373,120,631
|
||
|
FUSG
|
$740,590,450
|
||
|
FMSAF
|
$587,265,061
|
||
|
FPGIF
|
$417,784,146
|
||
|
FICBF
|
$419,840,064
|
||
|
FSTIF
|
$392,755,576
|
||
|
$3,016,761,580
|
$2,100,000
|
||
|
Federated
Income Trust
|
|||
|
FIT
|
$605,029,913
|
||
|
$617,130,511
|
$900,000
|
||
|
Federated
Index Trust
|
|||
|
MDCF
|
$754,734,767
|
||
|
MXCF
|
$465,761,391
|
||
|
$1,244,906,081
|
$1,250,000
|
||
|
Federated
Institutional Trust
|
|||
|
FIGCF
|
$9,119,451
|
||
|
FIHYBF
|
$265,465,956
|
||
|
FGUSF
|
$1,005,330,905
|
||
|
$1,305,514,638
|
$1,250,000
|
||
|
Federated
Insurance Series
|
|||
|
IFCVF
|
$68,919,799
|
||
|
IFCAF
|
$74,581,350
|
||
|
IFEIF
|
$19,984,175
|
||
|
IFMGSF
|
$17,564,428
|
||
|
IFHIBF
|
$235,069,236
|
||
|
IFIEF
|
$14,567,938
|
||
|
IFKAUF
|
$126,234,569
|
||
|
IFMOPF
|
$14,708,549
|
||
|
IFPMF
|
$92,937,511
|
||
|
IFQBF
|
$301,222,389
|
||
|
IFCIF
|
$35,784,368
|
||
|
IFUSG
|
$354,699,387
|
||
|
$1,383,399,173
|
$1,250,000
|
||
|
Federated
International Series Inc.
|
|||
|
FIBF
|
$102,138,698
|
||
|
IEF
|
$139,264,941
|
||
|
$246,231,712
|
$600,000
|
||
|
Federated
Investment Series Fund, Inc.
|
|||
|
FBF
|
$1,074,896,121
|
||
|
$1,096,394,043
|
$1,250,000
|
||
|
Federated
Intermediate Government Fund, Inc.
|
|||
|
FIGF
|
$30,027,692
|
||
|
$30,628,246
|
$300,000
|
||
|
Federated
Managed Allocation Portfolios
|
|||
|
FBAF
|
$48,726,891
|
||
|
$49,701,429
|
$350,000
|
||
|
Federated
Managed Pool Series
|
|||
|
FMSP
|
$5,814,804
|
||
|
FIBSP
|
$571,132
|
||
|
FHYSP
|
$4,966,371
|
||
|
FCP
|
$19,876,510
|
||
|
$31,853,393
|
$300,000
|
||
|
Federated
MDT Series
|
|||
|
FMACC
|
$188,155,955
|
||
|
FMBF
|
$218,374,458
|
||
|
FMLCG
|
$87,991,179
|
||
|
FMLCV
|
$806,286
|
||
|
FMMCG
|
$20,634,200
|
||
|
FMSCC
|
$6,662,577
|
||
|
FMSCG
|
$67,382,892
|
||
|
FMACCF
|
$0
|
||
|
FMSCGCF
|
$0
|
||
|
FMSCV
|
$9,464,503
|
||
|
FMTAAC
|
$11,433,658
|
||
|
$623,123,822
|
$900,000
|
||
|
Federated
Municipal Securities Fund, Inc.
|
|||
|
FMSF
|
$467,106,130
|
||
|
$476,448,253
|
$750,000
|
||
|
Federated
Municipal Securities Income Trust
|
|||
|
FMHYAF
|
$440,377,630
|
||
|
CAMIF
|
$64,591,358
|
||
|
MIIMT
|
$167,025,736
|
||
|
NCMIF
|
$51,099,582
|
||
|
NYMIF
|
$40,537,722
|
||
|
OHMIF
|
$186,303,269
|
||
|
PAMIF
|
$303,709,643
|
||
|
$1,278,717,839
|
$1,250,000
|
||
|
Federated
Premier Municipal Income Fund
|
|||
|
FPMIF
|
$82,415,575
|
||
|
$84,063,887
|
$450,000
|
||
|
Federated
Premier Intermediate Municipal Income Fund
|
|||
|
FPIMIF
|
$93,462,075
|
||
|
$95,331,317
|
$450,000
|
||
|
Federated
Short-Term Municipal Trust
|
|||
|
FSIDMT
|
$269,490,480
|
||
|
$274,880,290
|
$750,000
|
||
|
Federated
Stock and Bond Fund
|
|||
|
SBF
|
$239,518,773
|
||
|
$244,309,148
|
$600,000
|
||
|
Federated
Stock Trust
|
|||
|
FST
|
$263,131,647
|
||
|
$268,394,280
|
$750,000
|
||
|
Federated
Total Return Government Bond Fund
|
|||
|
FTRGBF
|
$812,198,824
|
||
|
$828,442,800
|
$1,000,000
|
||
|
Federated
Total Return Series, Inc.
|
|||
|
FMF
|
$338,370,936
|
||
|
FTRBF
|
$4,581,629,630
|
||
|
FUSBF
|
$688,498,183
|
||
|
$5,720,668,724
|
$2,500,000
|
||
|
Federated
U.S. Government Bond Fund
|
|||
|
FUSGBF
|
$69,841,808
|
||
|
$71,238,644
|
$400,000
|
||
|
Federated
U.S. Government Securities Fund: 1-3 Years
|
|||
|
GOV
1-3
|
$682,001,285
|
||
|
$695,641,311
|
$900,000
|
||
|
Federated
U.S. Government Securities Fund: 2-5 Years
|
|||
|
GOV2-5
|
$919,195,948
|
||
|
$937,579,867
|
$1,000,000
|
||
|
Federated
World Investment Series, Inc.
|
|||
|
FILF
|
$88,355,394
|
||
|
FIHIF
|
$108,196,225
|
||
|
FISCF
|
$326,576,474
|
||
|
$533,590,655
|
$900,000
|
||
|
Intermediate
Municipal Trust
|
|||
|
IMT
|
$247,000,666
|
||
|
$251,940,679
|
$750,000
|
||
|
Money
Market Obligations Trust
|
|||
|
ACMT
|
$3,437,067,642
|
||
|
AGCR
|
$336,665,535
|
||
|
AGMT
|
$465,647,792
|
||
|
ALMCT
|
$232,920,919
|
||
|
AZMCT
|
$69,837,088
|
||
|
CMCT
|
$2,008,328,993
|
||
|
CTMCT
|
$163,233,514
|
||
|
FCRF
|
$10,350,331,424
|
||
|
FGRF
|
$12,148,822,269
|
||
|
FLMCT
|
$576,562,715
|
||
|
FMUTR
|
$1,290,669,620
|
||
|
FMT
|
$184,450,803
|
||
|
FSTG
|
$119,332,820
|
||
|
FTFT
|
$195,743,686
|
||
|
GAMCT
|
$945,152,754
|
||
|
GOF
|
$51,605,998,384
|
||
|
GOTMF
|
$15,272,611,453
|
||
|
LIB
|
$278,276,195
|
||
|
MAMCT
|
$455,980,266
|
||
|
MDMCT
|
$67,420,162
|
||
|
MIMCT
|
$658,251,388
|
||
|
MMM
|
$32,587,156
|
||
|
MNMCT
|
$323,749,048
|
||
|
MOF
|
$6,760,165,861
|
||
|
NCMCT
|
$433,236,994
|
||
|
NJMCT
|
$483,906,999
|
||
|
NYMCT
|
$1,776,047,869
|
||
|
OHMCT
|
$652,324,412
|
||
|
PAMCT
|
$875,584,537
|
||
|
PCOF
|
$18,149,161,987
|
||
|
PMOF
|
$3,360,754,339
|
||
|
POF
|
$50,638,918,718
|
||
|
PVOF
|
$13,075,446,797
|
||
|
TFIT
|
$4,806,323,351
|
||
|
TFOF
|
$17,577,087,907
|
||
|
TOF
|
$18,941,719,580
|
||
|
TTO
|
$208,865,008
|
||
|
USTCR
|
$21,754,448,271
|
||
|
VAMCT
|
$567,221,395
|
||
|
$266,506,472,764
|
$2,500,000
|
||
|
TOTALS: 332,727,594,684.00
|
$339,382,146,578
|
$44,050,000
|
|
|
COVERAGE
FOR FEDERATED FUNDS
|
|
Current
Coverage:
|
|
$50,000,000
|
|
Coverage
Cushion: 11.90%
|
|
$5,950,000
|