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: 82341048

STELLUS CAPITAL INVESTMENT CORPORATION

FEDERAL INSURANCE COMPANY

4400 POST OAK PARKWAY, SUITE 2200

Incorporated under the laws of Indiana

HOUSTON, TX 77027

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

November 7, 2013

to

12:01 a.m. on

November 7, 2014

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

$

1,000,000

$

0

2

.

On Premises

$

1,000,000

$

10,000

3

.

In Transit

$

1,000,000

$

10,000

4

.

Forgery or Alteration

$

1,000,000

$

10,000

5

.

Extended Forgery

$

1,000,000

$

10,000

6

.

Counterfeit Money

$

1,000,000

$

10,000

7

.

Threats to Person

$

1,000,000

$

10,000

8

.

Computer System

$

1,000,000

$

10,000

9

.

Voice Initiated Funds Transfer Instruction

$

1,000,000

$

10,000

10

.

Uncollectible Items of Deposit

$

1,000,000

$

10,000

11

.

Audit Expense

$

25,000

$

0

ITEM 3.

THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING

ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:

1-7

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.

ICAP Bond (5-98) - Federal

Form 17-02-1421 (Ed. 5-98)

Page 1 of 1

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.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 1 of 19

Insuring Clauses

(continued)

Forgery Or Alteration

4

.

Loss resulting directly from:

a.

Forgery on, or fraudulent material alteration of, any bills of exchange,

checks, drafts, acceptances, certificates of deposits, promissory notes, due

bills, money orders, orders upon public treasuries, letters of credit, other

written promises, orders or directions to pay sums certain in money, or

receipts for the withdrawal of Property, or

b.

transferring, paying or delivering any funds or other Property, or establishing

any credit or giving any value in reliance on any written instructions, advices

or applications directed to the ASSURED authorizing or acknowledging the

transfer, payment, delivery or receipt of funds or other Property, which

instructions, advices or applications fraudulently purport to bear the

handwritten signature of any customer of the ASSURED, or shareholder or

subscriber to shares of an Investment Company, or of any financial

institution or Employee but which instructions, advices or applications either

bear a Forgery or have been fraudulently materially altered without the

knowledge and consent of such customer, shareholder, subscriber, financial

institution or Employee;

excluding, however, under this INSURING CLAUSE any loss covered under

INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING

CLAUSE 5. is provided for in the DECLARATIONS of this Bond.

For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile

signature is treated the same as a handwritten signature.

Extended Forgery

5

.

Loss resulting directly from the ASSURED having, in good faith, and in the

ordinary course of business, for its own account or the account of others in any

capacity:

a.

acquired, accepted or received, accepted or received, sold or delivered, or

given value, extended credit or assumed liability, in reliance on any original

Securities, documents or other written instruments which prove to:

(1)

bear a Forgery or a fraudulently material alteration,

(2)

have been lost or stolen, or

(3)

be Counterfeit, or

b.

guaranteed in writing or witnessed any signatures on any transfer,

assignment, bill of sale, power of attorney, guarantee, endorsement or other

obligation upon or in connection with any Securities, documents or other

written instruments.

Actual physical possession, and continued actual physical possession if taken as

collateral, of such Securities, documents or other written instruments by an

Employee, Custodian, or a Federal or State chartered deposit institution of the

ASSURED is a condition precedent to the ASSURED having relied on such items.

Release or return of such collateral is an acknowledgment by the ASSURED that it

no longer relies on such collateral.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 2 of 19

Insuring Clauses

Extended Forgery

For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile

(continued)

signature is treated the same as a handwritten signature.

Counterfeit Money

6

.

Loss resulting directly from the receipt by the ASSURED in good faith of any

Counterfeit money.

Threats To Person

7

.

Loss resulting directly from surrender of Property away from an office of the

ASSURED as a result of a threat communicated to the ASSURED to do bodily

harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or

invitee of such Employee, or a resident of the household of such Employee, who

is, or allegedly is, being held captive provided, however, that prior to the surrender

of such Property:

a.

the Employee who receives the threat has made a reasonable effort to

notify an officer of the ASSURED who is not involved in such threat, and

b.

the ASSURED has made a reasonable effort to notify the Federal Bureau of

Investigation and local law enforcement authorities concerning such threat.

It is agreed that for purposes of this INSURING CLAUSE, any Employee of the

ASSURED, as set forth in the preceding paragraph, shall be deemed to be an

ASSURED hereunder, but only with respect to the surrender of money, securities

and other tangible personal property in which such Employee has a legal or

equitable interest.

Computer System

8

.

Loss resulting directly from fraudulent:

a.

entries of data into, or

b.

changes of data elements or programs within,

a Computer System, provided the fraudulent entry or change causes:

(1

)

funds or other property to be transferred, paid or delivered,

(2

)

an account of the ASSURED or of its customer to be added, deleted,

debited or credited, or

(3

)

an unauthorized account or a fictitious account to be debited or

credited.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 3 of 19

Insuring Clauses

(continued)

Voice Initiated Funds

9

.

Loss resulting directly from Voice Initiated Funds Transfer Instruction directed

Transfer Instruction

to the ASSURED authorizing the transfer of dividends or redemption proceeds of

Investment Company shares from a Customer's account, provided such Voice

Initiated Funds Transfer Instruction was:

a.

received at the ASSURED'S offices by those Employees of the ASSURED

specifically authorized to receive the Voice Initiated Funds Transfer

Instruction,

b.

made by a person purporting to be a Customer, and

c.

made by said person for the purpose of causing the ASSURED or Customer

to sustain a loss or making an improper personal financial gain for such

person or any other person.

In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated

Funds Transfer Instructions must be received and processed in accordance with

the Designated Procedures outlined in the APPLICATION furnished to the

COMPANY.

Uncollectible Items of

10

.

Loss resulting directly from the ASSURED having credited an account of a

Deposit

customer, shareholder or subscriber on the faith of any Items of Deposit which

prove to be uncollectible, provided that the crediting of such account causes:

a.

redemptions or withdrawals to be permitted,

b.

shares to be issued, or

c.

dividends to be paid,

from an account of an Investment Company.

In order for coverage to apply under this INSURING CLAUSE, the ASSURED

must hold Items of Deposit for the minimum number of days stated in the

APPLICATION before permitting any redemptions or withdrawals, issuing any

shares or paying any dividends with respect to such Items of Deposit.

Items of Deposit shall not be deemed uncollectible until the ASSURED'S

standard collection procedures have failed.

Audit Expense

11

.

Expense incurred by the ASSURED for that part of the cost of audits or

examinations required by any governmental regulatory authority or self-regulatory

organization to be conducted by such authority, organization or their appointee by

reason of the discovery of loss sustained by the ASSURED and covered by this

Bond.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 4 of 19

General Agreements

Additional Companies

A.

If more than one corporation, or Investment Company, or any combination of

Included As Assured

them is included as the ASSURED herein:

(1

)

The total liability of the COMPANY under this Bond for loss or losses

sustained by any one or more or all of them shall not exceed the limit for

which the COMPANY would be liable under this Bond if all such loss were

sustained by any one of them.

(2

)

Only the first named ASSURED shall be deemed to be the sole agent of the

others for all purposes under this Bond, including but not limited to the giving

or receiving of any notice or proof required to be given and for the purpose of

effecting or accepting any amendments to or termination of this Bond. The

COMPANY shall furnish each Investment Company with a copy of the

Bond and with any amendment thereto, together with a copy of each formal

filing of claim by any other named ASSURED and notification of the terms of

the settlement of each such claim prior to the execution of such settlement.

(3

)

The COMPANY shall not be responsible for the proper application of any

payment made hereunder to the first named ASSURED.

(4

)

Knowledge possessed or discovery made by any partner, director, trustee,

officer or supervisory employee of any ASSURED shall constitute knowledge

or discovery by all the ASSUREDS for the purposes of this Bond.

(5

)

If the first named ASSURED ceases for any reason to be covered under this

Bond, then the ASSURED next named on the APPLICATION shall thereafter

be considered as the first named ASSURED for the purposes of this Bond.

Representation Made By

B.

The ASSURED represents that all information it has furnished in the

Assured

APPLICATION for this Bond or otherwise is complete, true and correct. Such

APPLICATION and other information constitute part of this Bond.

The ASSURED must promptly notify the COMPANY of any change in any fact or

circumstance which materially affects the risk assumed by the COMPANY under

this Bond.

Any intentional misrepresentation, omission, concealment or incorrect statement of

a material fact, in the APPLICATION or otherwise, shall be grounds for recision of

this Bond.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 5 of 19

General Agreements

(continued)

Additional Offices Or

C.

If the ASSURED, other than an Investment Company, while this Bond is in force,

Employees - Consolidation,

merges or consolidates with, or purchases or acquires assets or liabilities of

Merger Or Purchase Or

another institution, the ASSURED shall not have the coverage afforded under this

Acquisition Of Assets Or

Bond for loss which has:

Liabilities - Notice To

(1

)

occurred or will occur on premises, or

Company

(2

)

been caused or will be caused by an employee, or

(3

)

arisen or will arise out of the assets or liabilities,

of such institution, unless the ASSURED:

a.

gives the COMPANY written notice of the proposed consolidation, merger or

purchase or acquisition of assets or liabilities prior to the proposed effective

date of such action, and

b.

obtains the written consent of the COMPANY to extend some or all of the

coverage provided by this Bond to such additional exposure, and

c.

on obtaining such consent, pays to the COMPANY an additional premium.

Change Of Control -

D.

When the ASSURED learns of a change in control (other than in an Investment

Notice To Company

Company), as set forth in Section 2(a) (9) of the Investment Company Act of

1940,

the ASSURED shall within sixty (60) days give written notice to the

COMPANY setting forth:

(1

)

the names of the transferors and transferees (or the names of the beneficial

owners if the voting securities are registered in another name),

(2

)

the total number of voting securities owned by the transferors and the

transferees (or the beneficial owners), both immediately before and after the

transfer, and

(3

)

the total number of outstanding voting securities.

Failure to give the required notice shall result in termination of coverage for any

loss involving a transferee, to be effective on the date of such change in control.

Court Costs And

E.

The COMPANY will indemnify the ASSURED for court costs and reasonable

Attorneys’ Fees

attorneys' fees incurred and paid by the ASSURED in defense, whether or not

successful, whether or not fully litigated on the merits and whether or not settled,

of any claim, suit or legal proceeding with respect to which the ASSURED would

be entitled to recovery under this Bond. However, with respect to INSURING

CLAUSE 1., this Section shall only apply in the event that:

(1

)

an Employee admits to being guilty of Larceny or Embezzlement,

(2

)

an Employee is adjudicated to be guilty of Larceny or Embezzlement, or

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 6 of 19

General Agreements

Court Costs And

(3)

in the absence of 1 or 2 above, an arbitration panel agrees, after a review of

Attorneys’ Fees

an agreed statement of facts between the COMPANY and the ASSURED,

(continued)

that an Employee would be found guilty of Larceny or Embezzlement if

such Employee were prosecuted.

The ASSURED shall promptly give notice to the COMPANY of any such suit or

legal proceeding and at the request of the COMPANY shall furnish copies of all

pleadings and pertinent papers to the COMPANY. The COMPANY may, at its

sole option, elect to conduct the defense of all or part of such legal proceeding.

The defense by the COMPANY shall be in the name of the ASSURED through

attorneys selected by the COMPANY. The ASSURED shall provide all reasonable

information and assistance as required by the COMPANY for such defense.

If the COMPANY declines to defend the ASSURED, no settlement without the

prior written consent of the COMPANY nor judgment against the ASSURED shall

determine the existence, extent or amount of coverage under this Bond.

If the amount demanded in any such suit or legal proceeding is within the

DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court

costs and attorney's fees incurred in defending all or part of such suit or legal

proceeding.

If the amount demanded in any such suit or legal proceeding is in excess of the

LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable

INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees

incurred in defending all or part of such suit or legal proceedings is limited to the

proportion of such court costs and attorney's fees incurred that the LIMIT OF

LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING

CLAUSE bears to the total of the amount demanded in such suit or legal

proceeding.

If the amount demanded is any such suit or legal proceeding is in excess of the

DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM

2.

of the DECLARATIONS for the applicable INSURING CLAUSE, the

COMPANY'S liability for court costs and attorney's fees incurred in defending all or

part of such suit or legal proceedings shall be limited to the proportion of such

court costs or attorney's fees that the amount demanded that would be payable

under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total

amount demanded.

Amounts paid by the COMPANY for court costs and attorneys' fees shall be in

addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 7 of 19

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

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 8 of 19

Conditions And

Limitations

Definitions

(8

)

each natural person, partnership or corporation authorized by written

(continued)

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.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 9 of 19

Conditions And

Limitations

Definitions

f.

Forgery means the signing of the name of another natural person with the

(continued)

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.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 10 of 19

Conditions And

Limitations

Definitions

m.

Subsidiary means any organization that, at the inception date of this Bond,

(continued)

is named in the APPLICATION or is created during the BOND PERIOD and

of which more than fifty percent (50%) of the outstanding securities or voting

rights representing the present right to vote for election of directors is owned

or controlled by the ASSURED either directly or through one or more of its

subsidiaries.

n.

Transportation Company means any organization which provides its own

or its leased vehicles for transportation or which provides freight forwarding

or air express services.

o.

Voice Initiated Election means any election concerning dividend options

available to Investment Company shareholders or subscribers which is

requested by voice over the telephone.

p.

Voice Initiated Redemption means any redemption of shares issued by an

Investment Company which is requested by voice over the telephone.

q.

Voice Initiated Funds Transfer Instruction means any Voice Initiated

Redemption or Voice Initiated Election.

For the purposes of these definitions, the singular includes the plural and the

plural includes the singular, unless otherwise indicated.

General Exclusions -

2

.

This bond does not directly or indirectly cover:

Applicable to All Insuring

a.

loss not reported to the COMPANY in writing within sixty (60) days after

Clauses

termination of this Bond as an entirety;

b.

loss due to riot or civil commotion outside the United States of America and

Canada, or any loss due to military, naval or usurped power, war or

insurrection. This Section 2.b., however, shall not apply to loss which occurs

in transit in the circumstances recited in INSURING CLAUSE 3., provided

that when such transit was initiated there was no knowledge on the part of

any person acting for the ASSURED of such riot, civil commotion, military,

naval or usurped power, war or insurrection;

c.

loss resulting from the effects of nuclear fission or fusion or radioactivity;

d.

loss of potential income including, but not limited to, interest and dividends

not realized by the ASSURED or by any customer of the ASSURED;

e.

damages of any type for which the ASSURED is legally liable, except

compensatory damages, but not multiples thereof, arising from a loss

covered under this Bond;

f.

costs, fees and expenses incurred by the ASSURED in establishing the

existence of or amount of loss under this Bond, except to the extent covered

under INSURING CLAUSE 11.;

g.

loss resulting from indirect or consequential loss of any nature;

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 11 of 19

Conditions And

Limitations

General Exclusions -

h.

loss resulting from dishonest acts by any member of the Board of Directors

Applicable to All Insuring

or Board of Trustees of the ASSURED who is not an Employee, acting

Clauses

alone or in collusion with others;

(continued)

i.

loss, or that part of any loss, resulting solely from any violation by the

ASSURED or by any Employee:

(1

)

of any law regulating:

a.

the issuance, purchase or sale of securities,

b.

securities transactions on security or commodity exchanges or

the over the counter market,

c.

investment companies,

d.

investment advisors, or

(2

)

of any rule or regulation made pursuant to any such law; or

j.

loss of confidential information, material or data;

k.

loss resulting from voice requests or instructions received over the

telephone, provided however, this Section 2.k. shall not apply to INSURING

CLAUSE 7. or 9.

Specific Exclusions -

3

.

This Bond does not directly or indirectly cover:

Applicable To All Insuring

a.

loss caused by an Employee, provided, however, this Section 3.a. shall not

Clauses Except Insuring

apply to loss covered under INSURING CLAUSE 2. or 3. which results

Clause 1.

directly from misplacement, mysterious unexplainable disappearance, or

damage or destruction of Property;

b.

loss through the surrender of property away from premises of the ASSURED

as a result of a threat:

(1

)

to do bodily harm to any natural person, except loss of Property in

transit in the custody of any person acting as messenger of the

ASSURED, provided that when such transit was initiated there was no

knowledge by the ASSURED of any such threat, and provided further

that this Section 3.b. shall not apply to INSURING CLAUSE 7., or

(2

)

to do damage to the premises or Property of the ASSURED;

c.

loss resulting from payments made or withdrawals from any account

involving erroneous credits to such account;

d.

loss involving Items of Deposit which are not finally paid for any reason

provided however, that this Section 3.d. shall not apply to INSURING

CLAUSE 10.;

e.

loss of property while in the mail;

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 12 of 19

Conditions And

Limitations

Specific Exclusions -

f.

loss resulting from the failure for any reason of a financial or depository

Applicable To All Insuring

institution, its receiver or other liquidator to pay or deliver funds or other

Clauses Except Insuring

Property to the ASSURED provided further that this Section 3.f. shall not

Clause 1.

apply to loss of Property resulting directly from robbery, burglary,

(continued)

misplacement, mysterious unexplainable disappearance, damage,

destruction or removal from the possession, custody or control of the

ASSURED.

g.

loss of Property while in the custody of a Transportation Company,

provided however, that this Section 3.g. shall not apply to INSURING

CLAUSE 3.;

h.

loss resulting from entries or changes made by a natural person with

authorized access to a Computer System who acts in good faith on

instructions, unless such instructions are given to that person by a software

contractor or its partner, officer, or employee authorized by the ASSURED to

design, develop, prepare, supply, service, write or implement programs for

the ASSURED's Computer System; or

i.

loss resulting directly or indirectly from the input of data into a Computer

System terminal, either on the premises of the customer of the ASSURED

or under the control of such a customer, by a customer or other person who

had authorized access to the customer's authentication mechanism.

Specific Exclusions -

4

.

This bond does not directly or indirectly cover:

Applicable To All Insuring

a.

loss resulting from the complete or partial non-payment of or default on any

Clauses Except Insuring

loan whether such loan was procured in good faith or through trick, artifice,

Clauses 1., 4., And 5.

fraud or false pretenses; provided, however, this Section 4.a. shall not apply

to INSURING CLAUSE 8.;

b.

loss resulting from forgery or any alteration;

c.

loss involving a counterfeit provided, however, this Section 4.c. shall not

apply to INSURING CLAUSE 5. or 6.

Limit Of Liability/Non-

5

.

At all times prior to termination of this Bond, this Bond shall continue in force for

Reduction And Non-

the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS,

Accumulation Of Liability

notwithstanding any previous loss for which the COMPANY may have paid or be

liable to pay under this Bond provided, however, that the liability of the COMPANY

under this Bond with respect to all loss resulting from:

a.

any one act of burglary, robbery or hold-up, or attempt thereat, in which no

Employee is concerned or implicated, or

b.

any one unintentional or negligent act on the part of any one person

resulting in damage to or destruction or misplacement of Property, or

c.

all acts, other than those specified in a. above, of any one person, or

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 13 of 19

Conditions And

Limitations

Limit Of Liability/Non-

d.

any one casualty or event other than those specified in a., b., or c. above,

Reduction And Non-

shall be deemed to be one loss and shall be limited to the applicable LIMIT OF

Accumulation Of Liability

LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of

(continued)

the total amount of such loss or losses and shall not be cumulative in amounts

from year to year or from period to period.

All acts, as specified in c. above, of any one person which

i.

directly or indirectly aid in any way wrongful acts of any other person or

persons, or

ii.

permit the continuation of wrongful acts of any other person or persons

whether such acts are committed with or without the knowledge of the wrongful

acts of the person so aided, and whether such acts are committed with or without

the intent to aid such other person, shall be deemed to be one loss with the

wrongful acts of all persons so aided.

Discovery

6

.

This Bond applies only to loss first discovered by an officer of the ASSURED

during the BOND PERIOD. Discovery occurs at the earlier of an officer of the

ASSURED being aware of:

a.

facts which may subsequently result in a loss of a type covered by this Bond,

or

b.

an actual or potential claim in which it is alleged that the ASSURED is liable

to a third party,

regardless of when the act or acts causing or contributing to such loss occurred,

even though the amount of loss does not exceed the applicable DEDUCTIBLE

AMOUNT, or the exact amount or details of loss may not then be known.

Notice To Company -

7

.

a.

The ASSURED shall give the COMPANY notice thereof at the earliest

Proof - Legal Proceedings

practicable moment, not to exceed sixty (60) days after discovery of loss, in

Against Company

an amount that is in excess of 50% of the applicable DEDUCTIBLE

AMOUNT, as stated in ITEM 2. of the DECLARATIONS.

b.

The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to,

with full particulars within six (6) months after such discovery.

c.

Securities listed in a proof of loss shall be identified by certificate or bond

numbers, if issued with them.

d.

Legal proceedings for the recovery of any loss under this Bond shall not be

brought prior to the expiration of sixty (60) days after the proof of loss is filed

with the COMPANY or after the expiration of twenty-four (24) months from

the discovery of such loss.

e.

This Bond affords coverage only in favor of the ASSURED. No claim, suit,

action or legal proceedings shall be brought under this Bond by anyone

other than the ASSURED.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 14 of 19

Conditions And

Limitations

Notice To Company -

f.

Proof of loss involving Voice Initiated Funds Transfer Instruction shall

Proof - Legal Proceedings

include electronic recordings of such instructions.

Against Company

(continued)

Deductible Amount

8

.

The COMPANY shall not be liable under any INSURING CLAUSES of this Bond

on account of loss unless the amount of such loss, after deducting the net amount

of all reimbursement and/or recovery obtained or made by the ASSURED, other

than from any Bond or policy of insurance issued by an insurance company and

covering such loss, or by the COMPANY on account thereof prior to payment by

the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in

ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event

for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the

DECLARATIONS.

There shall be no deductible applicable to any loss under INSURING CLAUSE 1.

sustained by any Investment Company.

Valuation

9

.

BOOKS OF ACCOUNT OR OTHER RECORDS

The value of any loss of Property consisting of books of account or other records

used by the ASSURED in the conduct of its business shall be the amount paid by

the ASSURED for blank books, blank pages, or other materials which replace the

lost books of account or other records, plus the cost of labor paid by the

ASSURED for the actual transcription or copying of data to reproduce such books

of account or other records.

The value of any loss of Property other than books of account or other records

used by the ASSURED in the conduct of its business, for which a claim is made

shall be determined by the average market value of such Property on the

business day immediately preceding discovery of such loss provided, however,

that the value of any Property replaced by the ASSURED with the consent of the

COMPANY and prior to the settlement of any claim for such Property shall be the

actual market value at the time of replacement.

In the case of a loss of interim certificates, warrants, rights or other securities, the

production of which is necessary to the exercise of subscription, conversion,

redemption or deposit privileges, the value of them shall be the market value of

such privileges immediately preceding their expiration if said loss is not discovered

until after their expiration. If no market price is quoted for such Property or for

such privileges, the value shall be fixed by agreement between the parties.

OTHER PROPERTY

The value of any loss of Property, other than as stated above, shall be the actual

cash value or the cost of repairing or replacing such Property with Property of

like quality and value, whichever is less.

ICAP Bond (5-98)

Form 17-02-1421 (Ed. 5-98)

Page 15 of 19

Conditions And

Limitations

(continued)

Securities Settlement

10

.

In the event of a loss of securities covered under this Bond, the COMPANY may,

at its sole discretion, purchase replacement securities, tender the value of the

securities in money, or issue its indemnity to effect replacement securities.

The indemnity required from the ASSURED under the terms of this Section

against all loss, cost or expense arising from the replacement of securities by the

COMPANY'S indemnity shall be:

a.

for securities having a value less than or equal to the applicable

DEDUCTIBLE AMOUNT - one hundred (100%) percent;

b.

for securities having a value in excess of the DEDUCTIBLE AMOUNT but

within the applicable LIMIT OF LIABILITY - the percentage that the

DEDUCTIBLE AMOUNT bears to the value of the securities;

c.

for securities having a value greater than the applicable LIMIT OF LIABILITY

- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of

the applicable LIMIT OF LIABILITY bears to the value of the securities.

The value referred to in Section 10.a., b., and c. is the value in accordance with

Section 9, VALUATION, regardless of the value of such securities at the time the

loss under the COMPANY'S indemnity is sustained.

The COMPANY is not required to issue its indemnity for any portion of a loss of

securities which is not covered by this Bond; however, the COMPANY may do so

as a courtesy to the ASSURED and at its sole discretion.

The ASSURED shall pay the proportion of the Company's premium charge for the

Company's indemnity as set forth in Section 10.a., b., and c. No portion of the