|
DECLARATIONS
|
BOND
NO. 412PB1289
|
|
|
Limit
of Liability
|
Deductible
Amount
|
||||||
|
|
|
|
||||||
|
Insuring
Agreement A – FIDELITY
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement B – AUDIT EXPENSE
|
$ | $ | ||||||
|
Insuring
Agreement C – PREMISES
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement D – TRANSIT
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement E – FORGERY OR ALTERATION
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement F – SECURITIES
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement G – COUNTERFEIT CURRENCY
|
$ | 300,000 | $ | 25,000 | ||||
|
Insuring
Agreement H – STOP PAYMENT
|
$ | $ | ||||||
|
Insuring
Agreement I – UNCOLLECTIBLE ITEMS OF DEPOSIT
|
$ | $ | ||||||
|
Item
4.
|
Offices
or Premises Covered - Offices acquired or established subsequent to the
effective date of this bond are covered according to the terms of General
Agreement A. All the Insured’s offices or premises in existence at the
time this bond becomes effective are covered under this bond except the
offices or premises located as follows:
412PB1157
|
|
Item
5.
|
The
liability of the Underwriter is subject to the terms of the following
endorsements or riders attached hereto: Endorsements or Riders No. 1
through
|
|
Item
6.
|
The
Insured by the acceptance of this bond gives notice to the Underwriter
terminating or canceling prior bonds or policy(ies) No.(s) 412PB1157 such
termination or cancellation to be effective as of the time this bond
becomes effective.
|
|
Countersigned
:
|
ST.
PAUL FIRE AND MARINE INSURANCE
COMPANY
|
|
(b)
|
to
obtain financial benefit for the Employee, or for any other Person or
organization intended by the Employee to receive such benefit, other than
salaries, commissions, fees, bonuses, promotions, awards, profit sharing,
pensions or other employee benefits earned in the normal course of
employment.
|
|
(1)
|
loss
of or damage to furnishings, fixtures, stationery, supplies or equipment,
within any of the Insured’s offices covered under this bond caused by
Larceny or theft in, or by burglary, robbery or hold-up of, such office,
or attempt thereat, or by vandalism or malicious mischief,
or
|
|
(2)
|
loss
through damage to any such office by Larceny or theft in, or by burglary,
robbery or hold-up of, such office, or attempt thereat, or to the interior
of any such office by vandalism or malicious mischief provided, in any
event, that the Insured is the owner of such offices, furnishings,
fixtures, stationery, supplies or equipment or is legally liable for such
loss or damage always excepting, however, all loss or damage through
fire.
|
|
(1)
|
any
bills of exchange, checks, drafts, acceptances, certificates of deposit,
promissory notes, or other written promises, orders or directions to pay
sums certain in money, due bills, money orders, warrants, orders upon
public treasuries, letters of credit;
or
|
|
(2)
|
other
written instructions, advices or applications directed to the Insured,
authorizing or acknowledging the transfer, payment, delivery or receipt of
funds or Property, which instructions, advices or applications purport to
have been signed or endorsed by
any:
|
|
|
(a)
|
customer
of the insured, or
|
|
|
(b)
|
shareholder
or subscriber to shares, whether certificated or uncertificated, of any
Investment Company, or
|
|
|
(c)
|
financial
or banking institution or
stockbroker,
|
|
(3)
|
withdrawal
orders or receipts for the withdrawal of funds or Property, or receipts or
certificates of deposit for Property and bearing the name of the Insured
as issuer, or of another Investment Company for which the Insured acts as
agent, excluding, however, any loss covered under Insuring Agreement (F)
hereof whether or not coverage for Insuring Agreement (F) is provided for
in the Declarations of this bond.
|
|
(1)
|
through
the Insured’s having, in good faith and in the course of business, whether
for its own account or for the account of others, in any representative,
fiduciary, agency or any other capacity, either gratuitously or otherwise,
purchased or otherwise acquired, accepted or received, or sold or
delivered, or given any value, extended any credit or assumed any
liability, on the faith of, or otherwise acted upon, any securities,
documents or other written instruments which prove to have
been:
|
|
|
(a)
|
counterfeited,
or
|
|
|
(b)
|
forged
as to the signature of any maker, drawer, issuer, endorser, assignor,
lessee, transfer agent or registrar, acceptor, surety or guarantor or as
to the signature of any person signing in any other capacity,
or
|
|
|
(c)
|
raised
or otherwise altered, or lost, or stolen,
or
|
|
(2)
|
through
the Insured’s having, in good faith and in the course of business,
guaranteed in writing or witnessed any signatures whether for valuable
consideration or not and whether or not such guaranteeing or witnessing is
ultra vires the Insured, upon any transfers, assignments, bills of sale,
powers of attorney, guarantees, endorsements or other obligations upon or
in connection with any securities, documents or other written instruments
and which pass or purport to pass title to such securities, documents or
other written instruments; excluding losses caused by Forgery or
alteration of, on or in those instruments covered under Insuring Agreement
(E) hereof.
|
|
(1)
|
If
the Insured shall, while this bond is in force, establish any additional
office or offices, such offices shall be automatically covered hereunder
from the dates of their establishment, respectively. No notice to the
Underwriter of an increase during any premium period in the number of
offices or in the number of Employees at any of the offices covered
hereunder need be given and no additional premium need be paid for the
remainder of such premium
period.
|
|
(2)
|
If
an Investment Company, named as Insured herein, shall, while this bond is
in force, merge or consolidate with, or purchase the assets of another
institution, coverage for such acquisition shall apply automatically from
the date of acquisition. The Insured shall notify the Underwriter of such
acquisition within 60 days of said date, and an additional premium shall
be computed only if such acquisition involves additional offices or
employees.
|
|
(1)
|
an
Employee admits to being guilty of any dishonest or fraudulent act(s),
including Larceny or Embezzlement;
or
|
|
(2)
|
an
Employee is adjudicated to be guilty of any dishonest or fraudulent
act(s), including Larceny or
Embezzlement;
|
|
(3)
|
in
the absence of (1) or (2) above an arbitration panel agrees, after a
review of an agreed statement of facts, that an Employee would be found
guilty of dishonesty if such Employee were
prosecuted.
|
|
|
(1)
|
any
of the Insured’s officers, partners, or employees,
and
|
|
|
(2)
|
any
of the officers or employees of any predecessor of the Insured whose
principal assets are acquired by the Insured by consolidation or merger
with, or purchase of assets or capital stock of, such predecessor,
and
|
|
|
(3)
|
attorneys
retained by the Insured to perform legal services for the Insured and the
employees of such attorneys which such attorneys or employees of such
attorneys are performing such services for the Insured,
and
|
|
|
(4)
|
guest
students pursuing their studies or duties In any of the Insured’s offices,
and
|
|
|
(5)
|
directors
or trustees of the Insured, the investment advisor, underwriter
(distributor), transfer agent, or shareholder accounting record keeper, or
administrator authorized by written agreement to keep financial and/or
other required records, but only while performing acts coming within the
scope of the usual duties of an officer or employee or while acting as a
member of any committee duly elected or appointed to examine or audit or
have custody of or access to the Property of the Insured,
and
|
|
|
(6)
|
any
individual or individuals assigned to perform the usual duties of an
employee within the premises of the Insured, by contract, or by any agency
furnishing temporary personnel on a contingent or part-time basis,
and
|
|
|
(7)
|
each
natural person, partnership or corporation authorized by written agreement
with the Insured to perform services as electronic data processor of
checks or other accounting records of the Insured, but excluding any such
processor who acts as transfer agent or in any other agency capacity in
issuing checks, drafts or securities for the Insured, unless included
under sub-section (9) hereof, and
|
|
|
(8)
|
those
persons so designated in Section 15, Central Handling of Securities,
and
|
|
|
(9)
|
any
officer, partner, or Employee of:
|
|
|
|
|
(a)
|
an
investment advisor,
|
|
|
(b)
|
an
underwriter (distributor),
|
|
|
(c)
|
a
transfer agent or shareholder accounting record-keeper,
or
|
|
|
(d)
|
an
administrator authorized by written agreement to keep financial and/or
other required records,
|
|
(b)
|
“Property”
means money (i.e. currency, coin, bank notes, Federal Reserve notes),
postage and revenue stamps, U.S. Savings Stamps, bullion, precious metals
of all kinds and in any form and articles made therefrom, jewelry,
watches, necklaces, bracelets, gems, precious and semi-precious stones,
bonds, securities, evidences of debts, debentures, scrip, certificates,
interim receipts, warrants, rights, puts, calls, straddles, spreads,
transfers, coupons, drafts, bills of exchange, acceptances, notes, checks,
withdrawal orders, money orders, warehouse receipts, bills of lading,
conditional sales contracts, abstracts of title, insurance policies,
deeds, mortgages under real estate and/or chattels and upon interests
therein, and assignments of such policies, mortgages and instruments, and
other valuable papers, including books of account and other records used
by the Insured in the conduct of its business, and all other instruments
similar to or in the nature of the foregoing including Electronic
Representations of such instruments enumerated above (but excluding all
data processing records) in which the Insured has an interest or in which
the Insured acquired or should have acquired an interest by reason of a
predecessor’s declared financial condition at the time of the Insured’s
consolidation or merger with, or purchase of the principal assets of, such
predecessor or which are held by the Insured for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the
Insured is liable therefor.
|
|
(c)
|
“Forgery’
means the signing of the name of another with intent to deceive; it does
not include the signing of one’s own name with or without authority, in
any capacity, for any purpose.
|
|
(d)
|
“Larceny
and Embezzlement” as it applies to any named Insured means those acts as
set forth in Section 37 of the Investment Company Act of
1940.
|
|
(e)
|
“Items
of Deposit” means any one or more checks and drafts. Items of Deposit
shall not be deemed uncollectible until the Insured’s collection
procedures have failed.
|
|
(a)
|
loss
effected directly or indirectly by means of forgery or alteration of, on
or in any instrument, except when covered by Insuring Agreement (A), (E),
(F) or (G).
|
|
(b)
|
loss
due to riot or civil commotion outside the United States of America and
Canada; or loss due to military, naval or usurped power, war or
insurrection unless such loss occurs in transit in the circumstances
recited in Insuring Agreement (D), and unless, when such transit was
initiated, there was no knowledge of such riot, civil commotion, military,
naval or usurped power, war or insurrection on the part of any person
acting for the Insured in initiating such
transit.
|
|
(c)
|
loss,
in time of peace or war, directly or indirectly caused by or resulting
from the effects of nuclear fission or fusion or radioactivity; provided,
however, that this paragraph shall not apply to loss resulting from
industrial uses of nuclear energy.
|
|
(d)
|
loss
resulting from any wrongful act or acts of any person who is a member of
the Board of Directors of the Insured or a member of any equivalent body
by whatsoever name known unless such person is also an Employee or an
elected official, partial owner or partner of the Insured in some other
capacity, nor, in any event, loss resulting from the act or acts of any
person while acting in the capacity of a member of such Board or
equivalent body.
|
|
(e)
|
loss
resulting from the complete or partial non-payment of, or default upon,
any loan or transaction in the nature of, or amounting to, a loan made by
or obtained from the Insured or any of its partners, directors or
Employees, whether authorized or unauthorized and whether procured in good
faith or through trick, artifice fraud or false pretenses, unless such
loss is covered under Insuring Agreement (A), (E) or
(F).
|
|
(f)
|
loss
resulting from any violation by the Insured or by any
Employee:
|
|
|
(1)
|
of
law regulating (a) the issuance, purchase or sale of securities, (b)
securities transactions upon Security Exchanges or over the counter
market, (c) Investment Companies, or (d) Investment Advisors,
or
|
|
|
(2)
|
of
any rule or regulation made pursuant to any such
law.
|
|
|
|
(g)
|
loss
of Property or loss of privileges through the misplacement or loss of
Property as set forth in Insuring Agreement (C) or (D) while the Property
is in the custody of any armored motor vehicle company, unless such loss
shall be in excess of the amount recovered or received by the Insured
under (a) the Insured’s contract with said armored motor vehicle company,
(b) insurance carried by said armored motor vehicle company for the
benefit of users of its service, and (c) all other insurance and indemnity
in force in whatsoever form carried by or for the benefit of users of said
armored motor vehicle company’s service, and then this bond shall cover
only such excess.
|
|
(h)
|
potential
income, including but not limited to interest and dividends, not realized
by the Insured because of a loss covered under this bond, except as
included under Insuring Agreement
(I).
|
|
(i)
|
all
damages of any type for which the Insured is legally liable, except direct
compensatory damages arising from a loss covered under this
bond.
|
|
(j)
|
loss
through the surrender of Property away from an office of the Insured as a
result of a threat:
|
|
|
(1)
|
to
do bodily harm to any person, except loss of Property in transit in the
custody of any person acting as messenger provided that when such transit
was initiated there was no knowledge by the Insured of any such threat,
or
|
|
|
(2)
|
to
do damage to the premises or Property of the Insured, except when covered
under Insuring Agreement (A).
|
|
(k)
|
all
costs, fees and other expenses incurred by the Insured in establishing the
existence of or amount of loss covered under this bond unless such
indemnity is provided for under Insuring Agreement
(B).
|
|
(l)
|
loss,
resulting from payments made or withdrawals from the account of a customer
of the Insured, shareholder or subscriber to shares involving funds
erroneously credited to such account, unless such payments are made to or
withdrawn by such depositors or representative of such person, who is
within the premises of the drawee bank of the Insured or within the office
of the Insured at the time of such payment or withdrawal or unless such
payment is covered under Insuring Agreement
(A).
|
|
(m)
|
any
loss resulting from Uncollectible Items of Deposit which are drawn from a
financial institution outside the fifty states of the United States of
America, District of Columbia, and territories and possessions of the
United States of America, and
Canada.
|
|
|
(a)
|
becomes
aware of facts, or
|
|
|
(b)
|
receives
written notice of an actual or potential claim by a third party which
alleges that the Insured is liable under
circumstances,
|
|
|
(a)
|
any
one act of burglary, robbery or holdup, or attempt thereat, in which no
Partner or Employee is concerned or implicated shall be deemed to be one
loss, or
|
|
|
(b)
|
any
one unintentional or negligent act on the part of any other person
resulting in damage to or destruction or misplacement of Property, shall
be deemed to be one loss, or
|
|
|
(c)
|
all
wrongful acts, other than those specified in (a) above, of any one person
shall be deemed to be one loss, or
|
|
|
(d)
|
all
wrongful acts, other than those specified in (a) above, of one or more
persons (which dishonest act(s) or act(s) of Larceny or Embezzlement
include, but are not limited to, the failure of an Employee to report such
acts of others) whose dishonest act or acts intentionally or
unintentionally, knowingly or unknowingly, directly or indirectly, aid or
aids in any way, or permits the continuation of, the dishonest act or acts
of any other person or persons shall be deemed to be one loss with the act
or acts of the persons aided, or
|
|
|
(e)
|
any
one casualty or event other than those specified in (a), (b), (c) or (d)
preceding, shall be deemed to be one loss,
and
|
|
(a)
|
as
to any Employee as soon as any partner, officer or supervisory Employee of
the Insured, who is not in collusion with such Employee, shall learn of
any dishonest or fraudulent act(s), including Larceny or Embezzlement on
the part of such Employee without prejudice to the loss of any Property
then in transit in the custody of such Employee (see Section 16(d)),
or
|
|
(b)
|
as
to any Employee 60 days after receipt by each Insured and by the
Securities and Exchange Commission of a written notice from the
Underwriter of its desire to terminate this bond as to such Employee,
or
|
|
(c)
|
as
to any person, who is a partner, officer or employee of any Electronic
Data Processor covered under this bond, from and after the time that the
Insured or any partner or officer thereof not in collusion with such
person shall have knowledge or information that such person has committed
any dishonest or fraudulent act(s), including Larceny or Embezzlement in
the service of the Insured or otherwise, whether such act be committed
before or after the time this bond is
effective.
|
|
|
(a)
|
on
the effective date of any other insurance obtained by the Insured, its
successor in business or any other party, replacing in whole or in part
the insurance afforded by this bond, whether or not such other insurance
provides coverage for loss sustained prior to its effective date,
or
|
|
|
(b)
|
upon
takeover of the Insured’s business by any State or Federal official or
agency, or by any receiver or liquidator, acting or appointed for this
purpose without the necessity of the Underwriter giving notice of such
termination. In the event that such additional period of time is
terminated, as provided above, the Underwriter shall refund any unearned
premium.
|
|
(a)
|
the
total liability of the Underwriter hereunder for loss or losses sustained
by any one or more or all of them shall not exceed the limit for which the
Underwriter would be liable hereunder if all such loss were sustained by
any one of them;
|
|
(b)
|
the
one first named herein shall be deemed authorized to make, adjust and
receive and enforce payment of all claims hereunder and shall be deemed to
be the agent of the others for such purposes and for the giving or
receiving of any notice required or permitted to be given by the terms
hereof, provided that the Underwriter shall furnish each named Investment
Company with a copy of the bond and with any amendment thereto, together
with a copy of each formal filing of the settlement of each such claim
prior to the execution of such
settlement;
|
|
(c)
|
the
Underwriter shall not be responsible for the proper application of any
payment made hereunder to said first named
Insured;
|
|
(d)
|
knowledge
possessed or discovery made by any partner, officer of supervisory
Employee of any Insured shall for the purposes of Section 4 and Section 13
of this bond constitute knowledge or discovery by all the Insured;
and
|
|
(e)
|
if
the first named Insured ceases for any reason to be covered under this
bond, then the Insured next named shall thereafter be considered as the
first, named Insured for the purposes of this
bond.
|
|
|
(a)
|
the
names of the transferors and transferees (or the names of the beneficial
owners if the voting securities are requested in another name),
and
|
|
|
(b)
|
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
|
|
|
(c)
|
the
total number of outstanding voting
securities.
|
|
ATTACHED
TO AND FORMING PART OF BOND OR POLICY NO.
412PB1289
|
DATE
ENDORSEMENT OR RIDER EXECUTED
12/22/09
|
*EFFECTIVE
DATE OF ENDORSEMENT OR RIDER
12:01
AM STANDARD TIME AS SPECIFIED IN THE
BOND
OR POLICY
01/01/10
|
|
1.
|
Section
1, Definitions, under General Agreements is amended to include the
following paragraph:
|
|
|
(f)
|
Investment
Company means an investment company registered under the Investment
Company Act of 1940 and as listed under the names of Insureds on the
Declarations.
|
|
By
|
||||
|
Authorized
Representative
|
|
ATTACHED
TO AND FORMING PART OF BOND OR POLICY NO.
412PB1289
|
DATE
ENDORSEMENT OR RIDER EXECUTED
12/22/2009
|
*EFFECTIVE
DATE OF ENDORSEMENT OR RIDER
12:01
AM STANDARD TIME AS SPECIFIED IN THE
BOND
OR POLICY
01/01/2010
|
|
By
|
||||
|
Authorized
Representative
|
|
EAGLE
CAPITAL GROWTH FUND, INC.
|
||||
|
|
||||
|
|
||||
|
By:
|
/s/
David C. Sims
|
|||
|
David
C. Sims
|
||||
|
|
||||
|
Treasurer
|
||||
|
|
||||
|
|
Date:
|
December 24,
2009
|
||