Delaware Group of Funds 17g-1 as filed December 13, 2007
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, 2007 through October 31, 2008 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 25, 2007
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 DECLARATIONS
FINANCIAL INSTITUTION INVESTMENT
15 Mountain View Road, Warren, New Jersey 07059 COMPANY ASSET PROTECTION BOND
NAME OF ASSURED (including its Subsidiaries): Bond Number: 81951478
DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS FEDERAL INSURANCE COMPANY
1 COMMERCE SQUARE Incorporated under the laws of
PHILADELPHIA, PA 19103 Indiana a stock insurance
company herein called the
COMPANY
Capital Center, 251 North
Illinois, Suite 1100
Indianapolis, IN 46204-1927
ITEM 1. BOND PERIOD: from 12:01 a.m. on October 31, 2007
to 12:01 a.m. on October 31, 2008
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: 1-14
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
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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:
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.
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Insuring Clauses
(continued)
Forgery Or 4. Loss resulting directly from:
Alteration
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 5. Loss resulting directly from the ASSURED having, in good
Forgery 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.
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Insuring Clauses
Extended For the purpose of this INSURING CLAUSE, a mechanically
Forgery reproduced facsimile signature is treated the same as a
(continued) handwritten signature.
Counterfeit 6. Loss resulting directly from the receipt by the ASSURED in
Money good faith of any Counterfeit money.
Threats 7. Loss resulting directly from surrender of Property away from
To Person 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 8. Loss resulting directly from fraudulent:
a. entries of data System 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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Insuring Clauses
(continued)
Voice 9. Loss resulting directly from Voice Initiated Funds Transfer
Initiated Instruction directed to the ASSURED authorizing the transfer of
Funds Transfer dividends or redemption proceeds of Investment Company shares
Instruction 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 10. Loss resulting directly from the ASSURED having credited an
Items of account of a customer, shareholder or subscriber on the faith of
Deposit 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.
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General Agreements
Additional A. If more than one corporation, or Investment Company, or any
Companies combination of them is included as the ASSURED herein:
Included As
Assured
(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 B. The ASSURED represents that all information it has furnished
Made By in the APPLICATION for this Bond or otherwise is complete, true
Assured 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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General Agreements (continued)
Additional C. If the ASSURED, other than an Investment Company, while this
Offices Or Bond is in force, merges or consolidates with, or purchases or
Employees - acquires assets or liabilities of another institution, the
Consolidation, ASSURED shall not have the coverage afforded under this Bond for
Merger Or loss which has:
Purchase Or
Acquisition Of (1) occurred or will occur on premises, or
Assets Or
Liabilities - (2) been caused or will be caused by an employee, or
Notice To
Company (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 D. When the ASSURED learns of a change in control (other than in
Control - an Investment Company), as set forth in Section 2(a) (9) of the
Notice To Investment Company Act of 1940, the ASSURED shall within sixty
Company (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 E. The COMPANY will indemnify the ASSURED for court costs and
And Attorneys' reasonable attorneys' fees incurred and paid by the ASSURED in
Fees 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
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General Agreements
Court Costs (3) in the absence of 1 or 2 above, an arbitration panel agrees,
And Attorneys' after a review of an agreed statement of facts between the
Fees COMPANY and the ASSURED, that an Employee would be found guilty
(continued) 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
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
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Conditions And
Limitations
Definitions (8) each natural person, partnership or corporation authorized by
(continued) 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.
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Conditions And
Limitations
Definitions f. Forgery means the signing of the name of another natural
(continued) 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.
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Conditions And
Limitations
Definitions m. Subsidiary means any organization that, at the inception
(continued) 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 2. This bond does not directly or indirectly cover:
Exclusions -
Applicable to a. loss not reported to the COMPANY in writing within sixty
All Insuring (60) days after termination of this Bond as an entirety;
Clauses
b. loss due to riot or civil commotion outside the United
States of America and Canada, or any loss due to military,
naval or usurped power, war or insurrection. This Section
2.b., however, shall not apply to loss which occurs in
transit in the circumstances recited in INSURING CLAUSE 3.,
provided that when such transit was initiated there was no
knowledge on the part of any person acting for the ASSURED
of such riot, civil commotion, military, naval or usurped
power, war or insurrection;
c. loss resulting from the effects of nuclear fission or fusion
or radioactivity;
d. loss of potential income including, but not limited to,
interest and dividends not realized by the ASSURED or by any
customer of the ASSURED;
e. damages of any type for which the ASSURED is legally liable,
except compensatory damages, but not multiples thereof,
arising from a loss covered under this Bond;
f. costs, fees and expenses incurred by the ASSURED in
establishing the existence of or amount of loss under this
Bond, except to the extent covered under INSURING CLAUSE
11.;
g. loss resulting from indirect or consequential loss of any
nature;
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 11 of 19
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Conditions And
Limitations
General h. loss resulting from dishonest acts by any member of the Board
Exclusions - of Directors or Board of Trustees of the ASSURED who is not an
Applicable to Employee, acting alone or in collusion with others;
All Insuring
Clauses i. loss, or that part of any loss, resulting solely from any
violation by the ASSURED or by any Employee:
(continued)
(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 3. This Bond does not directly or indirectly cover:
Exclusions -
Applicable To a. loss caused by an Employee, provided, however, this Section
All Insuring 3.a. shall not apply to loss covered under INSURING CLAUSE
Clauses Except 2. or 3. which results directly from misplacement,
Insuring mysterious unexplainable disappearance, or damage or
Clause 1. destruction of Property;
b. loss through the surrender of property away from premises of
the ASSURED as a result of a threat:
(1) to do bodily harm to any natural person, except loss of
Property in transit in the custody of any person acting
as messenger of the ASSURED, provided that when such
transit was initiated there was no knowledge by the
ASSURED of any such threat, and provided further that
this Section 3.b. shall not apply to INSURING CLAUSE
7., or
(2) to do damage to the premises or Property of the
ASSURED;
c. loss resulting from payments made or withdrawals from any
account involving erroneous credits to such account;
d. loss involving Items of Deposit which are not finally paid
for any reason provided however, that this Section 3.d.
shall not apply to INSURING CLAUSE 10.;
e. loss of property while in the mail;
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 12 of 19
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Conditions And
Limitations
Specific f. loss resulting from the failure for any reason of a
Exclusions - financial or depository institution, its receiver or other
Applicable To liquidator to pay or deliver funds or other Property to the
All Insuring ASSURED provided further that this Section 3.f. shall not
Clauses Except apply to loss of Property resulting directly from robbery,
Insuring burglary, misplacement, mysterious unexplainable
Clause 1. disappearance, damage, destruction or removal from the
possession, custody or control of the ASSURED.
(continued)
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 4. This bond does not directly or indirectly cover:
Exclusions -
Applicable To
All Insuring a. loss resulting from the complete or partial non-payment of
Clauses Except or default on any loan whether such loan was procured in
Insuring good faith or through trick, artifice, fraud or false
Clauses 1., 4., pretenses; provided, however, this Section 4.a. shall not
And 5. 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 5. At all times prior to termination of this Bond, this Bond
Liability/ shall continue in force for the limit stated in the applicable
Non-Reduction sections of ITEM 2. of the DECLARATIONS, notwithstanding any
And Non- previous loss for which the COMPANY may have paid or be liable to
Accumulation pay under this Bond provided, however, that the liability of the
Of Liability COMPANY under this Bond with respect to all loss resulting from:
a. any one act of burglary, robbery or hold-up, or attempt
thereat, in which no Employee is concerned or implicated, or
b. any one unintentional or negligent act on the part of any
one person resulting in damage to or destruction or
misplacement of Property, or
c. all acts, other than those specified in a. above, of any one
person, or
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 13 of 19
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Conditions And
Limitations
Limit Of d. any one casualty or event other than those specified in a.,
Liability/ b., or c. above, shall be deemed to be one loss and shall be
Non-Reduction limited to the applicable LIMIT OF LIABILITY stated in ITEM 2. of
And Non- the DECLARATIONS of this Bond irrespective of the total amount of
Accumulation such loss or losses and shall not be cumulative in amounts from
Of Liability year to year or from period to period.
(continued) 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 7. a. The ASSURED shall give the COMPANY notice thereof at
Company - the earliest practicable moment, not to exceed sixty
Proof - Legal (60) days after discovery of loss, in an amount that is
Proceedings in excess of 50% of the applicable DEDUCTIBLE AMOUNT,
Against Company as stated in ITEM 2. of the DECLARATIONS.
b. The ASSURED shall furnish to the COMPANY proof of loss,
duly sworn to, with full particulars within six (6)
months after such discovery.
c. Securities listed in a proof of loss shall be
identified by certificate or bond numbers, if issued
with them.
d. Legal proceedings for the recovery of any loss under
this Bond shall not be brought prior to the expiration
of sixty (60) days after the proof of loss is filed
with the COMPANY or after the expiration of twenty-four
(24) months from the discovery of such loss.
e. This Bond affords coverage only in favor of the
ASSURED. No claim, suit, action or legal proceedings
shall be brought under this Bond by anyone other than
the ASSURED.
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 14 of 19
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Conditions And
Limitations
Notice To f. Proof of loss involving Voice Initiated Funds Transfer
Company - Instruction shall include electronic recordings of such
Proof - Legal instructions.
Proceedings
Against Company
(continued)
Deductible 8. The COMPANY shall not be liable under any INSURING CLAUSES of
Amount this Bond on account of loss unless the amount of such loss,
after deducting the net amount of all reimbursement and/or
recovery obtained or made by the ASSURED, other than from any
Bond or policy of insurance issued by an insurance company and
covering such loss, or by the COMPANY on account thereof prior to
payment by the COMPANY of such loss, shall exceed the DEDUCTIBLE
AMOUNT set forth in ITEM 3. of the DECLARATIONS, and then for
such excess only, but in no event for more than the applicable
LIMITS OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
There shall be no deductible applicable to any loss under
INSURING CLAUSE 1. sustained by any Investment Company.
Valuation 9. BOOKS OF ACCOUNT OR OTHER RECORDS
The value of any loss of Property consisting of books of account
or other records used by the ASSURED in the conduct of its
business shall be the amount paid by the ASSURED for blank books,
blank pages, or other materials which replace the lost books of
account or other records, plus the cost of labor paid by the
ASSURED for the actual transcription or copying of data to
reproduce such books of account or other records.
The value of any loss of Property other than books of account or
other records used by the ASSURED in the conduct of its business,
for which a claim is made shall be determined by the average
market value of such Property on the business day immediately
preceding discovery of such loss provided, however, that the
value of any Property replaced by the ASSURED with the consent of
the COMPANY and prior to the settlement of any claim for such
Property shall be the actual market value at the time of
replacement.
In the case of a loss of interim certificates, warrants, rights
or other securities, the production of which is necessary to the
exercise of subscription, conversion, redemption or deposit
privileges, the value of them shall be the market value of such
privileges immediately preceding their expiration if said loss is
not discovered until after their expiration. If no market price
is quoted for such Property or for such privileges, the value
shall be fixed by agreement between the parties.
OTHER PROPERTY
The value of any loss of Property, other than as stated above,
shall be the actual cash value or the cost of repairing or
replacing such Property with Property of like quality and value,
whichever is less.
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 15 of 19
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Conditions And
Limitations
(continued)
Securities 10. In the event of a loss of securities covered under this Bond,
Settlement 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 - 11. In the event of a payment under this Bond, the COMPANY shall
Assignment - be subrogated to all of the ASSURED'S rights of recovery against
Recovery any person or entity to the extent of such payment. On request,
the ASSURED shall deliver to the COMPANY an assignment of the
ASSURED'S rights, title and interest and causes of action against
any person or entity to the extent of such payment.
Recoveries, whether effected by the COMPANY or by the ASSURED,
shall be applied net of the expense of such recovery in the
following order:
a. first, to the satisfaction of the ASSURED'S loss which would
otherwise have been paid but for the fact that it is in
excess of the applicable LIMIT OF LIABILITY,
b. second, to the COMPANY in satisfaction of amounts paid in
settlement of the ASSURED'S claim,
c. third, to the ASSURED in satisfaction of the applicable
DEDUCTIBLE AMOUNT, and
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 16 of 19
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Conditions And
Limitations
Subrogation - d. fourth, to the ASSURED in satisfaction of any loss suffered
Assignment - by the ASSURED which was not covered under this Bond.
Recovery Recovery from reinsurance or indemnity of the COMPANY shall
not be deemed a recovery under this section.
(continued)
Cooperation Of 12. At the COMPANY'S request and at reasonable times and places
Assured designated by the COMPANY, the ASSURED shall:
a. submit to examination by the COMPANY and subscribe to the
same under oath,
b. produce for the COMPANY'S examination all pertinent records,
and
c. cooperate with the COMPANY in all matters pertaining to the
loss.
The ASSURED shall execute all papers and render assistance to
secure to the COMPANY the rights and causes of action provided
for under this Bond. The ASSURED shall do nothing after loss to
prejudice such rights or causes of action.
Termination 13. If the Bond is for a sole ASSURED, it shall not be terminated
unless written notice shall have been given by the acting party
to the affected party and to the Securities and Exchange
Commission, Washington, D.C., not less than sixty (60) days prior
to the effective date of such termination.
If the Bond is for a joint ASSURED, it shall not be terminated
unless written notice shall have been given by the acting party
to the affected party, and by the COMPANY to all ASSURED
Investment Companies and to the Securities and Exchange
Commission, Washington, D.C., not less than sixty (60) days prior
to the effective date of such termination.
This Bond will terminate as to any one ASSURED, other than an
Investment Company:
a. immediately on the taking over of such ASSURED by a receiver
or other liquidator or by State or Federal officials, or
b. immediately on the filing of a petition under any State or
Federal statute relative to bankruptcy or reorganization of
the ASSURED, or assignment for the benefit of creditors of
the ASSURED, or
c. immediately upon such ASSURED ceasing to exist, whether
through merger into another entity, disposition of all of
its assets or otherwise.
The COMPANY shall refund the unearned premium computed at short
rates in accordance with the standard short rate cancellation
tables if terminated by the ASSURED or pro rata if terminated for
any other reason.
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 17 of 19
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Conditions And
Limitations
Termination If any partner, director, trustee, or officer or supervisory
employee of an ASSURED not acting in collusion with an Employee
(continued) 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 14. Coverage under this Bond shall apply only as excess over any
Insurance 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 16. This Bond or any instrument amending or affecting this Bond
Modification may not be changed or modified orally. No change in or
modification of this Bond shall be effective except when made by
written endorsement to this Bond signed by an authorized
representative of the COMPANY.
If this Bond is for a sole ASSURED, no change or modification
which would adversely affect the rights of the ASSURED shall be
effective prior to sixty (60) days after written notice has been
furnished to the Securities and Exchange Commission, Washington,
D.C., by the acting party.
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 18 of 19
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Conditions And
Limitations
Change or If this Bond is for a joint ASSURED, no charge or modification
Modification which would adversely affect the rights of the ASSURED shall be
effective prior to sixty (60) days after written notice has been
(continued) furnished to all insured Investment Companies and to the
Securities and Exchange Commission, Washington, D.C., by the
COMPANY.
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 19 of 19
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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.
Delaware Enhanced Global Dividend and Income Fund
ICAP Bond
Form 17-02-0949 (Rev. 1-97) Page 1
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This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-0949 (Ed. 1-97) Page 2
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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.
ICAP Bond
Form 17-02-2367 (Rev. 10-03) Page 1
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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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-2367 (Rev. 10-03) Page 2
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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)
ICAP Bond
Form 17-02-2345 (Ed. 10-00) Page 1
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(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
ICAP Bond
Form 17-02-2345 (Ed. 10-00) Page 2
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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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-2345 (Ed. 10-00) Page 3
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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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-2365 (Ed. 10-00)
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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.
ICAP Bond
Form 17-02-5602 (Ed. 10-03) Page 1
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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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-5602 (Ed. 10-03) Page 2
--------------------------------------------------------------------------------
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.
ICAP2 Bond
Form 17-02-2976 (Ed. 1-02) Page 1
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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.
ICAP2 Bond
Form 17-02-2976 (Ed. 1-02) Page 2
--------------------------------------------------------------------------------
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.
ICAP2 Bond
Form 17-02-2976 (Ed. 1-02) Page 3
--------------------------------------------------------------------------------
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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP2 Bond
Form 17-02-2976 (Ed. 1-02) Page 4
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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. 81951477 issued to DELAWARE
MANAGEMENT HOLDINGS, INC., the SINGLE LOSS LIMIT OF LIABILITY under this Bond
shall be reduced by any payment under Bond No. 81951477 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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-0955 (Rev. 1-97)
--------------------------------------------------------------------------------
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,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
ICAP Bond
Form 17-02-6260 (Ed. 6-04)
--------------------------------------------------------------------------------
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 $ 20,000,000 $ 50,000
13. Automated Telephone
Transaction $ 20,000,000 $ 50,000
14. Stop Payment Order
or Refusal to Pay Check $ 20,000,000 $ 50,000
15. Unauthorized Signature $ 50,000 $ 10,000
16. Extended Computer Systems $ 20,000,000 $ 50,000
17. Claims Expense $ 100,000 $ 0
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-1582 (Ed. 5-98) Page 1
--------------------------------------------------------------------------------
FEDERAL INSURANCE COMPANY
Endorsement No.: 10 Bond
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
CLAIMS EXPENSE ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
17. Claims Expense
Reasonable expense incurred by the ASSURED, solely for independent firms or
individuals to determine the amount of loss where:
(1) the loss is covered under the Bond, and
(2) the loss is in excess of the applicable DEDUCTIBLE AMOUNT.
2. Under General Exclusions-Applicable To All Insuring Clauses, Section 2.f.
does not apply to loss covered under this INSURING CLAUSE.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-6282 (Ed. 11-04)
--------------------------------------------------------------------------------
FEDERAL INSURANCE COMPANY
Endorsement No.: 11 Bond
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
AUTOMATIC ACQUISITION PERCENTAGE THRESHOLD ENDORSEMENT
It is agreed that this Bond is amended by deleting in its entirety General
Agreement C., Additional Offices or Employees-Consolidation, Merger or Purchase
or Acquisition of Assets or Liabilities-Notice To Company, and substituting the
following:
C. Additional Offices or Employees-Consolidation, Merger or Purchase or
Acquisition Of Assets or Liabilities-Notice to Company
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,
(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. Notwithstanding anything stated above to the contrary,
the COMPANY hereby agrees to provide coverage which shall be
effective on the date of acquisition under this Bond for those
acquired institutions in which the ASSURED owns greater than
fifty percent (50%) of the voting stock or voting rights either
directly or through one or more of its subsidiaries for the
remainder of the BOND PERIOD, with no additional premium,
provided the acquired institution meets all of the following
conditions:
i. the assets shall not exceed twenty five percent (25%) of the
ASSURED'S assets,
ii. there shall be neither any paid nor pending Bond claim for
the three (3) year period prior to the date of acquisition,
and
iii. the ASSURED is not aware of any disciplinary action or
proceeding by State or Federal officials involving the
acquired institution as of the date of acquisition.
ICAP Bond
Form 17-02-6247 (Ed. 3-04) Page 1
--------------------------------------------------------------------------------
The COMPANY further agrees that as respects any acquisition that involves a
State or Federal regulatory assisted acquisition or assumption of assets and/or
liabilities, coverage shall be provided under this Bond for the remainder of the
BOND PERIOD as long as conditions i. and ii. above are met. As respects such
acquisition or assumption of assets and/or liabilities, coverage applies only to
a Single Loss fully sustained by the ASSURED on or after the date of such
acquisition or assumption. All of the circumstances, conditions or acts causing
or contributing to a Single Loss must occur on or after the date of such
acquisition or assumption for coverage to apply regardless of the time such loss
is discovered by the ASSURED.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31, 2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-6247 (Ed. 3-04) Page 2
--------------------------------------------------------------------------------
FEDERAL INSURANCE COMPANY
Endorsement No.: 12 Bond
Bond Number: 81951478
NAME OF ASSURED: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
AMENDING DEFINITION OF EMPLOYEE-FORMER EMPLOYEES ENDORSEMENT
It is agreed that this Bond is amended by adding to the definition of Employee
in Section 1., Definitions, the following:
(10) 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.
This Endorsement applies to loss discovered after 12:01 a.m. on October 31,
2007.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: November 2, 2007
By /s/ Robert Hamburger
Authorized Representative
ICAP Bond
Form 17-02-2335 (Ed. 10-00)
--------------------------------------------------------------------------------
Effective date of
this endorsement: October 31, 2007 FEDERAL INSURANCE COMPANY
Endorsement No.: 13 Bond
To be attached to and
form a part of Bond
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 2, 2007
By /s/ Robert Hamburger
Authorized Representative
Form 14-02-9228 (Ed. 4/2004)
--------------------------------------------------------------------------------
ENDORSEMENT/RIDER
Effective date of
this endorsement/rider: October 31, 2007 FEDERAL INSURANCE COMPANY
Endorsement/Rider No. 14 Bond
To be attached to and
form a part of Bond No. 81951478
Issued to: DELAWARE INVESTMENT COMPANY FAMILY OF FUNDS
DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION
ENDORSEMENT
In consideration of the premium charged, it is agreed that this Bond is
amended as follows:
1. The paragraph titled Other Property in Section 9, Valuation, is deleted in
its entirety.
2. The third paragraph in Section 16, Change or Modification, is deleted in
its entirety and replaced with the following:
If this Bond is for a joint ASSURED, no change or modification which would
adversely affect the rights of the ASSURED shall be effective prior to
sixty (60) days after written notice has been furnished to all insured
Investment Companies and the Securities and Exchange Commission,
Washington, D.C., by the COMPANY.
The title and any headings in this endorsement/rider are solely for convenience
and form no part of the terms and conditions of coverage.
All other terms, conditions and limitations of this Bond shall remain unchanged.
17-02-2437 (12/2006) rev. Page 1
--------------------------------------------------------------------------------
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.
Form 10-02-1281 (Ed. 1/2003)
--------------------------------------------------------------------------------
IMPORTANT NOTICE TO POLICYHOLDERS
All of the members of the Chubb Group of Insurance companies doing business
in the United States (hereinafter "Chubb") distribute their products through
licensed insurance brokers and agents ("producers"). Detailed information
regarding the types of compensation paid by Chubb to producers on US insurance
transactions is available under the Producer Compensation link located at the
bottom of the page at www.chubb.com, or by calling 1-866-588-9478. Additional
information may be available from your producer.
Thank you for choosing Chubb.
10-02-1295 (ed. 5/2007)
--------------------------------------------------------------------------------
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.
Form 14-02-12160 (ed. 7/2006)
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JOINT INSURANCE AGREEMENT
THIS JOINT INSURANCE AGREEMENT, dated as of October 31, 2007, is by and
among the funds comprising the Delaware Investments Family of Funds (listed on
Schedule A hereto) (the "Funds").
BACKGROUND
THIS AGREEMENT is entered into with the following background:
A. Section 17(g) of the Investment Company Act of 1940 (the "Act")
authorizes the Securities and Exchange Commission ("SEC") to require that the
officers and employees of registered management investment companies be bonded
against larceny and embezzlement, and the SEC has promulgated Rule 17g-1
requiring such coverage in specified minimum amounts.
B. The Funds have obtained and maintain the bonds and policies of insurance
providing coverage against larceny embezzlement by their officers and employees
set forth in Attachment I hereto (the "Joint Bonds").
C. The Board of Trustees/Directors of each Fund, by vote of a majority of
its members including a majority of those members of the Board of each Fund who
are not "interested persons" as defined by Section 2 (a) (19) of the Act, has
given due consideration to all factors relevant to the amount, type, form,
coverage and apportionment of recoveries and premiums on the Joint Bonds and has
approved the form, term and amount of the Joint Bonds, the portion of the
premiums payable by each Fund, and the manner in which recovery on the Joint
Bonds ("Joint Bond Proceeds"), if any, shall be shared by and among the parties
hereto as hereinafter set forth.
NOW, THEREFORE, IT IS HEREBY AGREED by and among the parties hereto as
follows:
1. ALLOCATION OF PROCEEDS
a. In the event a single party suffers a loss or losses covered under the
Joint Bonds, the party suffering such loss or losses shall be entitled to be
indemnified up to the full amount of the Joint Bond Proceeds.
b. If more than one party is damaged in a single loss for which Joint Bond
Proceeds are received, each such party shall receive that portion of the Joint
Bond Proceeds which represents the loss sustained by that party, unless the
recovery is inadequate to indemnify fully each such party. If the recovery is
inadequate to indemnify fully each such party sustaining a loss, the Joint Bond
Proceeds shall be allocated among such parties as follows:
(1) Each party sustaining a loss shall be allocated an amount equal to the
lesser of its actual loss or the minimum amount of bond coverage then allocated
to such party. Any party not fully indemnified for its insurable losses as a
result of this allocation is hereafter referred to as an "Unindemnified Party".
(2) The remaining portion of the Joint Bond Proceeds, if any, shall be
allocated to each Unindemnified Party in the same proportion as such party's
allocation of minimum bond coverage bears to the aggregate of the minimum bond
coverage amounts for all Unindemnified Parties, provided that no party shall
receive Joint Bond Proceeds in excess of its actual insurable losses.
2. ALLOCATION OF PREMIUMS
a. The premiums payable with respect to the Joint Bonds shall be allocated
to each of the parties hereto on an annual basis (and, in the event any
increased or additional premium is required to be paid during the year, as of
the date such increased or additional premium is due) in the same proportion as
each party's minimum amount of bond coverage as then reflected on Attachment II
shall bear to the total of such minimum coverage.
3. BOND COVERAGE REQUIREMENTS AND CHANGES
a. Each party hereto has determined that the minimum amount of fidelity
bond coverage deemed appropriate to be maintained by it is as set forth opposite
its name in Attachment II hereto. Each of the Funds represents and warrants to
each of the other parties hereto that the minimum amount of coverage required of
it under Rule 17g-1(d)(1) as of the date hereof is not more than the amount
reflected opposite its name in Attachment II hereto. Each of the Funds further
agrees that it will promptly take such steps as may be necessary, from time to
time, to increase its minimum coverage as set forth in Attachment II hereto
(and, if necessary, the face amount of the Joint Bonds) so that its minimum
coverage as therein set forth shall at no time be less than the minimum coverage
required of it under Rule 17g-1(d)(1).
b. The parties hereto may, from time to time hereafter, agree to modify
Attachment II hereto to reflect changes in allocation of premium and coverage.
All references in this Agreement to "Attachment II" shall be to such Attachment
as amended as of the relevant date on which premiums are to be allocated or
losses are sustained.
4. ADDITION OF NEW FUNDS AND OTHER ENTITIES
The parties to this Agreement contemplate that additional funds or other
related entities permitted by Rule 17g-1 ("Additional Entities") may be added to
Delaware Investments from time to time after the date of this Agreement. In the
event an Additional Entity is organized, such Entity may be included as an
additional party to this Agreement if the Board of Trustees/Directors of each of
the Funds (including an Additional Fund if it is being added) approve such
addition and establish a revised minimum allocation of bond coverage. The
inclusion of an Additional Entity as a party to this Agreement shall be
evidenced by such Entity's execution of the Addendum to this Agreement and all
references herein to the "Funds" shall include any such Additional Entities.
5. TERM OF AGREEMENT
This Agreement shall apply to the present fidelity bond coverage and any
renewals or replacements thereof and shall continue until terminated by any
party hereto upon the giving of not less than sixty days written notice to the
other parties.
6. DISPUTES
Any dispute arising under this Agreement shall be submitted to arbitration
in the City of Philadelphia, Pennsylvania under the Rules of the American
Arbitration Association, and the decision rendered therein shall be final and
binding upon the parties hereto.
7. GOVERNING LAW
This Agreement shall be governed by, and construed in accordance with the
laws of the Commonwealth of Pennsylvania, to the extent not inconsistent with
applicable provisions of the Act and the rules and regulations promulgated
thereunder by the SEC.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound
hereby, have caused this Agreement to be executed by a duly authorized officer
or representative as of the date first written above.
DELAWARE INVESTMENTS FAMILY OF FUNDS
on behalf of those Funds listed on Schedule A
By: /s/Patrick P. Coyne
Patrick P. Coyne
President