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John Hancock Advisers, LLC John Hancock logo
601 Congress Street
Boston, Massachusetts 02210-2805
July 28, 2006
Securities and Exchange Commission
Washington, DC 20549
RE: John Hancock Income Securities Trust
File No. 811-4186
Dear Sir/Madam:
Pursuant to provisions of Regulation 17g-1 under the Investment Company Act of
1940, enclosed are the following documents:
1. A certified copy of the resolution of majority of the Trustees who are not
interested persons of the above name trust approving the bonds.
2. A copy of the agreement between the investment company and all of the
other named insured entered into pursuant to paragraph (f) of Regulation
17g-1.
3. A copy of an amended joint insured fidelity bond no. 469PB0607 issued by
St. Paul Travelers Insurance Company.
4. A copy of an amended joint insured fidelity bond no. 87142105B issued by
ICI Mutual Insurance Co.
5. A copy of an amended joint insured fidelity bond no. 81520012H issued by
Chubb Insurance Co.
If the investment company had not been named as an insured under this joint
insured bond, it would have provided and maintained a single bond in the amount
of at least $750,000. Premiums have been paid for the period July 15, 2005 to
July 15, 2006.
Sincerely,
/s/Jeffrey Long
---------------
Jeffrey Long
VP & Corporate Controller
John Hancock Funds, LLC, 601 Congress Street, Boston, MA 02210, Member NASD
John Hancock Advisers, LLC
Sovereign Asset Management LLC
All Funds
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RATIFICATION OF RENEWAL OF FIDELITY BOND
AND PROFESSIONAL LIABILITY INSURANCE
RESOLVED, that the joint insured fidelity bonds issued by St. Paul Travelers and
ICI Mutual Insurance Company on the Investment Company Blanket bond form, be
entered into for one year pursuant to and in compliance with the requirements of
Rule 17g-1 under the Investment Company Act of 1940, as amended, at a combined
limit of $45 million, with each Fund as a joint insured, and that the premium
will be paid by all Funds collectively and shall be pro-rated according to the
assets of each Fund.
FURTHER RESOLVED, that the proposal to renew the coverage in the Directors and
Officers/Errors & Omissions Policies as presented to the meeting from July 15,
2005 through July 15, 2006; be, and hereby is approved.
Certified by: /s/Alfred P. Ouellette
----------------------
Assistant Secretary
It is hereby agreed among the undersigned parties, named insured under
Fidelity Bond Insurance provided by St. Paul Travelers Insurance Company renewed
on July 15, 2005, ICI Mutual Insurance Company renewed on July 15, 2005 and
Chubb Insurance Company renewed on March 31, 2005 that in the event recovery is
received as a result of a loss sustained by any one of the undersigned
registered management investment companies and one or more of the other named
insured under the said bonds, the said registered management investment company
shall receive an equitable and proportionate share of the recovery, but at least
equal to the amount which it would have received had it provided and maintained
a single insured bond with the minimum coverage required under the provisions of
paragraph (f) (1) of Rule 17g-1 under Section 17(g) of the Investment Company
Act of 1940.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be
executed by their duly authorized officer on July 26, 2006.
John Hancock Investment Trust John Hancock Investment Trust II
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Investment Trust III John Hancock Bank and Thrift Opportunity Fund
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Bond Trust John Hancock California Tax-Free Income Fund
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Capital Series John Hancock Tax-Advantaged Dividend Income Fund
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
1
John Hancock Current Interest John Hancock Income Securities Trust
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Institutional Series Trust John Hancock Preferred Income Fund
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Investors Trust John Hancock Equity Trust
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Patriot Global Dividend Fund John Hancock Patriot Preferred Dividend Fund
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Patriot Premium Dividend Fund I John Hancock Patriot Premium Dividend Fund II
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Patriot Select Dividend Trust John Hancock Series Trust
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
2
John Hancock Sovereign Bond Fund John Hancock Strategic Series
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Tax-Exempt Series Fund John Hancock Municipal Securities Trust
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock World Fund John Hancock Financial Trends Fund, Inc.
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Preferred Income Fund II John Hancock Preferred Income Fund III
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Funds, LLC John Hancock Advisers, LLC
By: /s/Alfred P. Ouellette By: /s/Alfred P. Ouellette
---------------------- ----------------------
Assistant Secretary Assistant Secretary
John Hancock Signature Services, Inc. Sovereign Asset Management LLC
By: /s/John Hatch By: /s/Alfred P. Ouellette
---------------------- ----------------------
President and CEO Assistant Secretary
DELIVERY INVOICE The St Paul logo
Company: St Paul Fire & Marine Insurance Company
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INSURED
JOHN HANCOCK CAPITAL SERIES, INC. Policy Inception/Effective Date: 7/15/05
101 HUNTINGTON AVENUE Agency Number: 5934854S
BOSTON MA 02199
Transaction Type:
Renewal
Transaction number: 001
Processing date: 9/8/2005
Policy Number: 469PB0607
AGENT
Aon Financial Services Group
99 High Street
Boston MA 02110
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Policy Description Amount Surtax/
Number Surcharge
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469PB0607 Investment Company Blanket Bond $125,000
Page 1
St Paul Travelers logo
IMPORTANT NOTICE REGARDING INDEPENDENT AGENT AND BROKER COMPENSATION
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For information about how St. Paul Travelers compensates independent agents and
brokers, please visit www.stpaultravelers.com, or you may request a written copy
from Marketing at One Tower Square, 2GSA, Hartford, CT 06183; Fax (860)
954-5987.
Page 1 of 1
POLICY FORM LIST The St Paul logo
Here's a list of all forms included in your
policy, on the date shown below. These forms
are listed in the same order as they appear in
your policy.
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Title Form Number Edition Date
Policy Form List 40705 05-84
Service Of Lawsuit Endorsement 5180T 07-04
Investment Company Blanket Bond - Declarations ICB001 07-04
Investment Company Blanket Bond -
Insuring Agreements ICB005 07-04
Named Insured Endorsement ICB010 07-04
Computer Systems ICB011 07-04
Unauthorized Signatures ICB012 07-04
Telefacsimile Transactions ICB013 07-04
Voice-Initiated Transactions ICB014 07-04
Amend Definition of Employee (Exclude EDP
Coverage for Computer Software or Programs) ICB015 07-04
Definition of Investment Company ICB016 07-04
Amend Section 13. - Termination As To Any
Employee ICB018 07-04
Automated Phone Systems ICB019 07-04
Amend Definition of Employee
(Include Contractors) ICB022 07-04
Add Exclusions (n) & (o) ICB026 07-04
Joint Loss Payee ICB027 07-04
Include Trading Loss Coverage MEL2575 03-05
Automatic Coverage For New Investment Companies/
Increase In Limits MEL2684 03-05
Limits
Amend Definition Of Employee MEL2899 05-05
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Name of Insured Policy Number 469PB0607 Effective Date 07/15/05
JOHN HANCOCK CAPITAL SERIES, INC. Processing Date 09/13/05 13:07 001
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Page 1
St. Paul Surplus Lines
Insurance Company Endorsement No.
ENDORSEMENT
The following spaces preceded by an asterisk (*) need not be completed if this
endorsement and the policy have the same inception date.
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ATTACHED TO AND FORMING *EFFECTIVE DATE OF *ISSUED TO
PART OF POLICY NO. ENDORSEMENT
469PB0607 07/15/05 JOHN HANCOCK CAPITAL SERIES, INC.
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SERVICE OF LAWSUIT ENDORSEMENT
It is agreed that in the event of the failure of the Insurer to pay any amount
claimed to be due hereunder, the Insurer shall honor the decision of the court
that is authorized to hear the case; provided that the Insurer has the right to
appeal that decision.
It is further agreed that service of process for any lawsuit brought against the
Insurer may be made upon the Insurer by serving its President, or the
President's designee, at 385 Washington Street, St. Paul, Minnesota 55102 and
such person shall be authorized to receive the papers on behalf of the Insurer.
However, the Insured may also serve or send papers involving such lawsuit to the
Commissioner, Director or Superintendent of Insurance for the state in which the
lawsuit is being filed. The Insurer designates that appropriate officer, or that
person's successor, to mail a copy of the paper to the Insurer.
California Clause:
------------------
For the State of California, it is agreed that service of process in a lawsuit
against the Insurer may be made upon:
CSC-Lawyers Incorporating Service
2730 Gateway Oaks Drive, Suite 100
Sacremento, California 95833
Rhode Island Clause:
For the State of Rhode Island, it is agreed that service of process in a lawsuit
against the Insurer may be made upon:
Corporation Service Company
222 Jefferson Blvd., Suite 200
Warwick, Rhode Island 02888
Nothing herein contained shall be held to vary, alter, waive or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned policy, other than as above stated.
By_____________________
Authorized Representative
5180T Rev. 7-04 Printed in U.S.A.
St Paul Travelers logo
INVESTMENT COMPANY BLANKET BOND
St. Paul Fire and Marine Insurance Company
St. Paul, Minnesota 55102-1396
(A Stock Insurance Company, herein called Underwriter)
DECLARATIONS BOND NO. 469PB0607
Item 1. Name of Insured (herein called Insured):
JOHN HANCOCK CAPITAL SERIES, INC.
Principal Address:
601 Congress Street
Boston, MA 02210
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Item 2. Bond Period from 12:01 a.m. on 07/15/05 to 12:01 a.m. on 07/15/06 the
effective date of the termination or cancellation of the bond, standard
time at the Principal Address as to each of said dates.
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Item 3. Limit of Liability
Subject to Sections 9, 10, and 12 hereof:
Limit of Liability Deductible Amount
Insuring Agreement A - FIDELITY $25,000,000 $50,000
Insuring Agreement B - AUDIT EXPENSE $50,000 $N/A
Insuring Agreement C - PREMISES $25,000,000 $50,000
Insuring Agreement D - TRANSIT $25,000,000$ $50,000
Insuring Agreement E - FORGERY OR
ALTERATION $25,000,000 $50,000
Insuring Agreement F - SECURITIES $25,000,000 $50,000
Insuring Agreement G - COUNTERFEIT
CURRENCY $25,000,000 $50,000
Insuring Agreement H - STOP PAYMENT $50,000 $5,000
Insuring Agreement I - UNCOLLECTIBLE
ITEMS OF DEPOSIT $50,000 $5,000
OPTIONAL COVERAGES ADDED BY RIDER:
Insuring Agreement J- Unauthorized Signatures
Insuring Agreement K- Computer Systems
Insuring Agreement L- Voice Initiated Transactions
Insuring Agreement M- Automatic Phone Systems
If "Not Covered" is inserted above opposite any specified Insuring Agreement or
Coverage, such InsuringAgreement or Coverage and any other reference thereto in
this bond shall be deemed to be deleted therefrom.
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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:
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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
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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)
such termination or cancellation to be effective as of the time this
bond becomes effective.
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IN WITNESS WHEREOF, the Company has caused this bond to be signed by its
President and Secretary and countersigned by a duly authorized representative of
the Company.
Countersigned: ST. PAUL FIRE AND MARINE INSURANCE COMPANY
/s/Andrew M. Sullivan /s/B.A. Backberg /s/Jay S. Fishman
------------------------------------------ ------------------ -----------------
Authorized Representative Countersigned At Secretary President
9/30/05
---------------------
Countersignature Date
INVESTMENT COMPANY BLANKET BOND
The Underwriter, in consideration of an agreed premium, and subject to the
Declarations made a part hereof, the General Agreements, Conditions and
Limitations and other terms of this bond, agrees with the Insured, in accordance
with the Insuring Agreements hereof to which an amount of insurance is
applicable as set forth in Item 3 of the Declarations and with respect to loss
sustained by the Insured at any time but discovered during the Bond Period, to
indemnify and hold harmless the Insured for:
INSURING AGREEMENTS
(A) FIDELITY
Loss resulting from any dishonest or fraudulent act(s), including Larceny or
Embezzlement, committed by an Employee, committed anywhere and whether committed
alone or in collusion with others, including loss of Property resulting from
such acts of an Employee, which Property is 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.
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean
only dishonest or fraudulent act(s) committed by such Employee with the manifest
intent:
(a)to cause the Insured to sustain such loss; and
(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.
(B) AUDIT EXPENSE
Expense incurred by the Insured for that part of the costs of audits or
examinations required by any governmental regulatory authority to be conducted
either by such authority or by an independent accountant by reason of the
discovery of loss sustained by the Insured through any dishonest or fraudulent
act(s), including Larceny or Embezzlement, of any of the Employees. The total
liability of the Underwriter for such expense by reason of such acts of any
Employee or in which such Employee is concerned or implicated or with respect to
any one audit or examination is limited to the amount stated opposite Audit
Expense in Item 3 of the Declarations; it being understood, however, that such
expense shall be deemed to be a loss sustained by the Insured through any
dishonest or fraudulent act(s), including Larceny or Embezzlement, of one or
more of the Employees, and the liability under this paragraph shall be in
addition to the Limit of Liability stated in Insuring Agreement (A) in Item 3 of
the Declarations.
(C) ON PREMISES
Loss of Property (occurring with or without negligence or violence) through
robbery, burglary, Larceny, theft, holdup, or other fraudulent means,
misplacement, mysterious unexplainable disappearance, damage thereto or
destruction thereof, abstraction or removal from the possession, custody or
control of the Insured, and loss of subscription, conversion, redemption or
deposit privileges through the misplacement or loss of Property, while the
Property is (or is supposed or believed by the Insured to be) lodged or
deposited within any offices or premises located anywhere, except in an office
listed in Item 4 of the Declarations or amendment thereof or in the mail or with
a carrier for hire, other than an armored motor vehicle company, for the purpose
of transportation.
Office and Equipment
(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.
(D) IN TRANSIT
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Loss of Property (occurring with or without negligence or violence) through
robbery, Larceny, theft, hold-up, misplacement, mysterious unexplainable
disappearance, being lost or otherwise made away with, damage thereto or
destruction thereof, and loss of subscription, conversion, redemption or deposit
privileges through the misplacement or loss of Property, while the Property is
in transit anywhere in the custody of any person or persons acting as messenger,
except while in the mail or with a carrier for hire, other than an armored motor
vehicle company, for the purpose of transportation, such transit to begin
immediately upon receipt of such Property by the transporting person or persons,
and to end immediately upon delivery thereof at destination.
(E) FORGERY 0R ALTERATION
Loss through Forgery or alteration of or on:
(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,
but which instructions, advices or applications either bear the forged
signature or endorsement or have been altered without the knowledge and
consent of such customer, shareholder or subscriber to shares, or financial
or banking institution or stockbroker; or
(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.
Any check or draft (a) made payable to a fictitious payee and endorsed in the
name of such fictitious payee or (b) procured in a transaction with the maker
or drawer thereof or with one acting as an agent of such maker or drawer or
anyone impersonating another and made or drawn payable to the one so
impersonated and endorsed by anyone other than the one impersonated, shall be
deemed to be forged as to such endorsement.
Mechanically reproduced facsimile signatures are treated the same as
handwritten signatures.
(F) SECURITIES
Loss sustained by the Insured, including loss sustained by reason of a violation
of the constitution by-laws, rules or regulations of any Self Regulatory
Organization of which the Insured is a member or which would have been imposed
upon the Insured by the constitution, by-laws, rules or regulations of any Self
Regulatory Organization if the Insured had been a member thereof,
(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,
2 of 12
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.
Securities, documents or other written instruments shall be deemed to mean
original (including original counterparts) negotiable or non-negotiable
agreements which in and of themselves represent an equitable interest,
ownership, or debt, including an assignment thereof, which instruments are, in
the ordinary course of business, transferable by delivery of such agreements
with any necessary endorsement or assignment.
The word "counterfeited" as used in this Insuring Agreement shall be deemed to
mean any security, document or other written instrument which is intended to
deceive and to be taken for an original.
Mechanically reproduced facsimile signatures are treated the same as handwritten
signatures.
(G) COUNTERFEIT CURRENCY
Loss through the receipt by the Insured, in good faith, of any counterfeited
money orders or altered paper currencies or coin of the United States of America
or Canada issued or purporting to have been issued by the United States of
America or Canada or issued pursuant to a United States of America or Canada
statute for use as currency.
(H) STOP PAYMENT
Loss against any and all sums which the Insured shall become obligated to pay by
reason of the liability imposed upon the Insured by law for damages:
For having either complied with or failed to comply with any written notice of
any customer, shareholder or subscriber of the Insured or any Authorized
Representative of such customer, shareholder or subscriber to stop payment of
any check or draft made or drawn by such customer, shareholder or subscriber or
any Authorized Representative of such customer, shareholder or subscriber, or
For having refused to pay any check or draft made or drawn by any customer,
shareholder or subscriber of the Insured or any Authorized Representative of
such customer, shareholder or subscriber.
(I) UNCOLLECTIBLE ITEMS OF DEPOSIT
Loss resulting from payments of dividends or fund shares, or withdrawals
permitted from any customer's, shareholder's, or subscriber's account based upon
Uncollectible Items of Deposit of a customer, shareholder or subscriber credited
by the Insured or the Insured's agent to such customer's, shareholder's or
subscriber's Mutual Fund Account; or loss resulting from an Item of Deposit
processed through an Automated Clearing House which is reversed by the customer,
shareholder or subscriber and deemed uncollectible by the Insured.
Loss includes dividends and interest accrued not to exceed 15% of the
Uncollectible Items which are deposited.
This Insuring Agreement applies to all Mutual Funds with "exchange privileges"
if all Fund(s) in the exchange program are insured by the Underwriter for
Uncollectible Items of Deposit. Regardless of the number of transactions between
Fund(s), the minimum number of days of deposit within the Fund(s) before
withdrawal as declared in the Fund(s) prospectus shall begin from the date a
deposit was first credited to any Insured Fund(s).
GENERAL AGREEMENTS
A. ADDITIONAL OFFICES OR EMPLOYEES CONSOLIDATION OR MERGER - NOTICE
(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
3 of 12
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.
B. WARRANTY
No statement made by or on behalf of the Insured, whether contained in the
application or otherwise, shall be deemed to be a warranty of anything except
that it is true to the best of the knowledge and belief of the person making
the statement.
C. COURT COSTS AND ATTORNEYS' FEES
(Applicable to all Insuring Agreements or Coverages now or hereafter forming
part of this bond)
The Underwriter will indemnify the Insured against court costs and reasonable
attorneys' fees incurred and paid by the Insured in defense, whether or not
successful, whether or not fully litigated on the merits and whether or not
settled, of any suit or legal proceeding brought against the Insured to
enforce the Insured's liability or alleged liability on account of any loss,
claim or damage which, if established against the Insured, would constitute a
loss sustained by the Insured covered under the terms of this bond provided,
however, that with respect to Insuring Agreement (A) this indemnity shall
apply only in the event that:
(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.
The Insured shall promptly give notice to the Underwriter of any such suit or
legal proceedings and at the request of the Underwriter shall furnish it with
copies of all pleadings and other papers therein. At the Underwriter's election
the Insured shall permit the Underwriter to conduct the defense of such suit or
legal proceeding, in the Insured's name, through attorneys of the Underwriter's
selection. In such event, the Insured shall give all reasonable information and
assistance which the Underwriter shall deem necessary to the proper defense of
such suit or legal proceeding.
If the amount of the Insured's liability or alleged liability is greater than
the amount recoverable under this bond, or if a Deductible Amount is applicable,
or both, the liability of the Underwriter under this General Agreement is
limited to the proportion of court costs and attorneys' fees incurred and paid
by the Insured or by the Underwriter that the amount recoverable under this bond
bears to the total of such amount plus the amount which is not so recoverable.
Such indemnity shall be in addition to the Limit of Liability for the applicable
Insuring Agreement or Coverage.
D. FORMER EMPLOYEE
Acts of an Employee, as defined in this bond, are covered under Insuring
Agreement (A) only while the Employee is in the Insured's employ. Should loss
involving a former Employee of the Insured be discovered subsequent to the
termination of employment, coverage would still apply under Insuring Agreement
(A) if the direct proximate cause of the loss occurred while the former Employee
performed duties within the scope of his/her employment.
THE FOREGOING INSURING AGREEMENTS AND GENERAL
AGREEMENTS ARE SUBJECT TO THE FOLLOWING
CONDITIONS AND LIMITATIONS:
SECTION 1. DEFINITIONS
The following terms, as used in this bond have the respective meanings stated in
this Section:
(a) "Employee" means:
(1)any of the Insured's officers, partners, or and 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,
4 of 12
(3) attorneys retained by the Insured to perform legal services for the Insured
and the employees of such attorneys while 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,
for an Investment Company named as Insured while performing acts coming within
the scope of the usual duties of an officer or Employee of any investment
Company named as Insured herein, 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 any such Investment Company, provided that only Employees or
partners of a transfer agent, shareholder accounting record-keeper or
administrator which is an affiliated person, as defined in the Investment
Company Act of 1940, of an Investment Company named as Insured or is an
affiliated person of the advisor, underwriter or administrator of such
Investment Company, and which is not a bank, shall be included within the
definition of Employee.
Each employer of temporary personnel or processors as set forth in sub-sections
(6) and (7) of Section 1(a) and their partners, officers and employees shall
collectively be deemed to be one person for all the purposes of this bond,
excepting, however, the last paragraph of Section 13.
Brokers, or other agents under contract or representatives of the same general
character shall not be considered Employees.
(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
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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.
SECTION 2. EXCLUSIONS THIS BOND, DOES NOT COVER:
(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.
unless such loss, in the absence of such laws, rules or regulations, would be
covered under Insuring Agreements (A) or (E).
(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).
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(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.
SECTION 3. ASSIGNMENT OF RIGHTS
This bond does not afford coverage in favor of any Employers of temporary
personnel or of processors as set forth in sub-sections (6) and (7) of Section
1(a) of this bond, as aforesaid, and upon payment to the Insured by the
Underwriter on account of any loss through dishonest or fraudulent act(s)
including 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 Insured'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 Insured to the Underwriter, and the
Insured shall execute all papers necessary to secure to the Underwriter the
rights herein provided for.
SECTION 4. LOSS -NOTICE -PROOF LEGAL PROCEEDINGS
This bond is for the use and benefit only of the Insured named in the
Declarations and the Underwriter shall not be liable hereunder for loss
sustained by anyone other than the Insured unless the Insured, in its sole
discretion and at its option, shall include such loss in the Insured's proof of
loss. At the earliest practicable moment after discovery of any loss hereunder
the Insured shall give the Underwriter written notice thereof and shall also
within six months after such discovery furnish to the Underwriter affirmative
proof of loss with full particulars. If claim is made under this bond for loss
of securities or shares, the Underwriter shall not be liable unless each of such
securities or shares is identified in such proof of loss by a certificate or
bond number or, where such securities or shares are uncertificated, by such
identification means as agreed to by the Underwriter. The Underwriter shall have
thirty days after notice and proof of loss within which to investigate the
claim, but where the loss is clear and undisputed, settlement shall be made
within forty-eight hours; and this shall apply notwithstanding the loss is made
up wholly or in part of securities of which duplicates may be obtained. Legal
proceedings for recovery of any loss hereunder shall not be brought prior to the
expiration of sixty days after such proof of loss is filed with the Underwriter
nor after the expiration of twenty-four months from the discovery of such loss,
except that any action or proceedings to recover hereunder on account of any
judgment against the Insured in any suit mentioned in General Agreement C or to
recover attorneys' fees paid in any such suit, shall be begun within twenty-
four months from the date upon which the judgment in such suit shall become
final. If any limitation embodied in this bond is prohibited by any law
controlling the construction hereof, such limitation shall be deemed to be
amended so as to be equal to the minimum period of limitation permitted by such
law.
Discovery occurs when the Insured:
(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,
which would cause a reasonable person to assume that a loss covered by the bond
has been or will be incurred even though the exact amount or details of loss may
not be then known.
SECTION 5. VALUATION OF PROPERTY
The value of any Property, except books of accounts or other records used by the
Insured in the conduct of its business, for the loss of which a claim shall be
made hereunder, shall be determined by the average market value of such Property
on the business day next preceding the discovery of such loss; provided,
however, that the value of any Property replaced by the Insured prior to the
payment of claim therefor shall be the actual market value at the time of
replacement; and further provided that in case of a loss or misplacement 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 thereof shall be the market value of such
privileges
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immediately preceding the expiration thereof if said loss or misplacement 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 or by arbitration.
In case of any loss or damage to Property consisting of books of accounts or
other records used by the Insured in the conduct of its business, the
Underwriter shall be liable under this bond only if such books or records are
actually reproduced and then for not more than the cost of blank books, blank
pages or other materials plus the cost of labor for the actual transcription or
copying of data which shall have been furnished by the Insured in order to
reproduce such books and other records.
SECTION 6. VALUATION OF PREMISES AND FURNISHINGS
In case of damage to any office of the Insured, or loss of or damage to the
furnishings, fixtures, stationery, supplies, equipment, safes or vaults therein,
the Underwriter shall not be liable for more than the actual cash value thereof,
or for more than the actual cost of their replacement or repair. The Underwriter
may, at its election, pay such actual cash value or make such replacement or
repair. If the underwriter and the Insured cannot agree upon such cash value or
such cost of replacement or repair, such shall be determined by arbitration.
SECTION 7. LOST SECURITIES
If the Insured shall sustain a loss of securities the total value of which is in
excess of the limit stated in Item 3 of the Declarations of this bond, the
liability of the Underwriter shall be limited to payment for, or duplication of,
securities having value equal to the limit stated in Item 3 of the Declarations
of this bond.
If the Underwriter shall make payment to the Insured for any loss of securities,
the Insured shall thereupon assign to the Underwriter all of the Insured's
rights, title and interest in and to said securities.
With respect to securities the value of which do not exceed the Deductible
Amount (at the time of the discovery of the loss) and for which the Underwriter
may at its sole discretion and option and at the request of the Insured issue a
Lost Instrument Bond or Bonds to effect replacement thereof, the Insured will
pay the usual premium charged therefor and will indemnify the Underwriter
against all loss or expense that the Underwriter may sustain because of the
issuance of such Lost Instrument Bond or Bonds.
With respect to securities the value of which exceeds the Deductible Amount (at
the time of discovery of the loss) and for which the Underwriter may issue or
arrange for the issuance of a Lost Instrument Bond or Bonds to effect
replacement thereof, the Insured agrees that it will pay as premium therefor a
proportion of the usual premium charged therefor, said proportion being equal to
the percentage that the Deductible Amount bears to the value of the securities
upon discovery of the loss, and that it will indemnify the issuer of said Lost
Instrument Bond or Bonds against all loss and expense that is not recoverable
from the Underwriter under the terms and conditions of this Investment Company
Blanket Bond subject to the Limit of Liability hereunder.
SECTION 8. SALVAGE
in case of recovery, whether made by the Insured or by the Underwriter, on
account of any loss in excess of the Limit of Liability hereunder plus the
Deductible Amount applicable to such loss, from any source other than
suretyship, insurance, reinsurance, security or indemnity taken by or for the
benefit of the Underwriter, the net amount of such recovery, less the actual
costs and expenses of making same, shall be applied to reimburse the Insured in
full for the excess portion of such loss, and the remainder, if any, shall be
paid first in reimbursement of the Underwriter and thereafter in reimbursement
of the Insured for that part of such loss within the Deductible Amount. The
Insured shall execute all necessary papers to secure to the Underwriter the
rights provided for herein.
SECTION 9. NON-REDUCTION AND NONACCUMULATION OF LIABILITY AND TOTAL LIABILITY
At all times prior to termination hereof, this bond shall continue in force for
the limit stated in the applicable sections of Item 3 of the Declarations of
this bond notwithstanding any previous loss for which the Underwriter may have
paid or be liable to pay hereunder; PROVIDED, however, that regardless of the
number of years this bond shall continue in force and the number or premiums
which shall be payable or paid, the liability of the Underwriter under this bond
with respect to all loss resulting from:
(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
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(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
shall be limited to the applicable Limit of Liability stated in Item 3 of the
Declarations of this bond irrespective of the total amount of such loss or
losses and shall not be cumulative in amounts from year to year or from period
to period.
Sub-section (c) is not applicable to any situation to which the language of
sub-section (d) applies.
SECTION 10. LIMIT OF LIABILITY
With respect to any loss set forth in the PROVIDED clause of Section 9 of this
bond which is recoverable or recovered in whole or in part under any other bonds
or policies issued by the Underwriter to the Insured or to any predecessor in
interest of the Insured and terminated or cancelled or allowed to expire and in
which the period of discovery has not expired at the time any such loss
thereunder is discovered, the total liability of the Underwriter under this bond
and under other bonds or policies shall not exceed, in the aggregate, the amount
carried hereunder on such loss or the amount available to the Insured under such
other bonds or policies, as limited by the terms and conditions thereof, for any
such loss if the latter amount be the larger.
SECTION 11. OTHER INSURANCE
If the Insured shall hold, as indemnity against any loss covered hereunder, any
valid and enforceable insurance or suretyship, the Underwriter shall be liable
hereunder only for such amount of such loss which is in excess of the amount of
such other insurance or suretyship, not exceeding, however, the Limit of
Liability of this bond applicable to such loss.
SECTION 12. DEDUCTIBLE
The Underwriter shall not be liable under any of the Insuring Agreements of this
bond on account of loss as specified, respectively, in sub-sections (a), (b),
(c), (d) and (e) of Section 9, NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY
AND TOTAL LIABILITY, unless the amount of such loss, after deducting the net
amount of all reimbursement and/or recovery obtained or made by the Insured,
other than from any bond or policy of insurance issued by an insurance company
and covering such loss, or by the Underwriter on account thereof prior to
payment by the Underwriter of such loss, shall exceed the Deductible Amount set
forth in Item 3 of the Declarations hereof (herein called Deductible Amount),
and then for such excess only, but in no event for more than the applicable
Limit of Liability stated in Item 3 of the Declarations.
The Insured will bear, in addition to the Deductible Amount, premiums on Lost
Instrument Bonds as set forth in Section 7.
There shall be no deductible applicable to any loss under Insuring Agreement A
sustained by any Investment Company named as Insured herein.
SECTION 13. TERMINATION
The Underwriter may terminate this bond as an entirety by furnishing written
notice specifying the termination date, which cannot be prior to 60 days after
the receipt of such written notice by each Investment Company named as Insured
and the Securities and Exchange Commission, Washington, D.C. The Insured may
terminate this bond as an entirety by furnishing written notice to the
Underwriter. When the Insured cancels, the Insured shall furnish written notice
to the Securities and Exchange Commission, Washington, D.C., prior to 60 days
before the effective date of the termination. The Underwriter shall notify all
other Investment Companies named as Insured of the receipt of such termination
notice and the termination cannot be effective prior to 60 days after receipt of
written notice by all other Investment Companies. Premiums are earned until the
termination date as set forth herein.
This Bond will terminate as to any one Insured immediately upon taking over of
such Insured by a receiver or other liquidator or by State or Federal officials,
or immediately upon the filing of a petition under any State or Federal statute
relative to bankruptcy or reorganization of the Insured, or assignment for the
benefit of creditors of the Insured, or immediately upon such Insured ceasing to
exist, whether through merger into another entity, or by disposition of all of
its assets.
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The Underwriter shall refund the unearned premium computed at short rates in
accordance with the standard short rate cancellation tables if terminated by the
Insured or pro rata if terminated for any other reason.
This Bond shall terminate:
(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.
SECTION 14. RIGHTS AFTER TERMINATION OR CANCELLATION
At any time prior to the termination or cancellation of this bond as an
entirety, whether by the Insured or the Underwrite, the Insured may give the
Underwriter notice that it desires under this bond an additional period of 12
months within which to discover loss sustained by the Insured prior to the
effective date of such termination or cancellation and shall pay an additional
premium therefor.
Upon receipt of such notice from the Insured, the Underwriter shall give its
written consent thereto; provided, however, that such additional period of time
shall terminate immediately:
(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.
The right to purchase such additional period for the discovery of loss may not
be exercised by any State or Federal official or agency, or by a receiver or
liquidator, acting or appointed to take over the Insured's business for the
operation or for the liquidation thereof or for any purpose.
SECTION 15. CENTRAL HANDLING OF SECURITIES
Securities included in the system for the central handling of securities
established and maintained by Depository Trust Company, Midwest Depository Trust
Company, Pacific Securities Depository Trust Company, and Philadelphia
Depository Trust Company, hereinafter called Corporations, to the extent of the
Insured's interest therein as effected by the making of appropriate entries on
the books and records of such Corporations shall be deemed to be Property.
The words "Employee" and 'Employees" shall be deemed to include the officers,
partners, clerks and other employees of the New York Stock Exchange, Boston
Stock Exchange, Midwest Stock Exchange, Pacific Stock Exchange and Philadelphia
Stock Exchange, hereinafter called Exchanges, and of the above named
Corporations, and of any nominee in whose name is registered any security
included within the systems for the central handling of securities established
and maintained by such Corporations, and any employee or any recognized service
company, while such officers, partners, clerks and other employees and employees
of service companies perform services for such Corporations in the operation of
such systems. For the purpose of the above definition a recognized service
company shall be any company providing clerks or other personnel to the said
Exchanges or Corporations on a contract basis.
The Underwriter shall not be liable on account of any loss(es) in connection
with the central handling of securities within the systems established and
maintained by such Corporations, unless such loss(es) shall be in excess of the
amount(s) recoverable or recovered under any bond or policy of insurance
indemnifying such Corporations against such loss(es), and then the Underwriter
shall be liable hereunder
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only for the Insured's share of such excess loss(es), but in no event for more
than the Limit of Liability applicable hereunder.
For the purpose of determining the Insured's share of excess loss(es) it shall
be deemed that the Insured has an interest in any certificate representing any
security included within such systems equivalent to the interest the Insured
then has in all certificates representing the same security included within such
systems and that such Corporations shall use their best judgment in apportioning
the amount(s) recoverable or recovered under any bond or policy of insurance
indemnifying such Corporations against such loss(es) in connection with the
central handling of securities within such systems among all those having an
interest as recorded by appropriate entries in the books and records of such
Corporations in Property involved in such loss(es) on the basis that each such
interest shall share in the amount(s) so recoverable or recovered in the ratio
that the value of each such interest bears to the total value all such interests
and that the Insured's share of such excess loss(es) shall be the amount of the
Insured's interest in such Property in excess of the amount(s) so apportioned to
the Insured by such Corporations.
This bond does not afford coverage in favor of such Corporations or Exchanges or
any nominee in whose name is registered any security included within the systems
for the central handling of securities established and maintained by such
Corporations, and upon payment to the Insured by the Underwriter on account of
any loss(es) within the systems, an assignment of such of the Insured's rights
and causes of action as it may have against such Corporations or Exchanges shall
to the extent of such payment, be given by the Insured to the Underwriter, and
the Insured shall execute all papers necessary to secure the Underwriter the
rights provided for herein.
SECTION 16. ADDITIONAL COMPANIES INCLUDED AS INSURED
If more than one corporation, co-partnership or person or any combination of
them be included as the Insured herein:
(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.
SECTION 17. NOTICE AND CHANGE OF CONTROL
Upon the Insured obtaining knowledge of a transfer of its outstanding voting
securities which results in a change in control (as set forth in Section 2(a)
(9) of the Investment Company Act of 1940) of the Insured, the Insured shall
within thirty (30) days of such knowledge give written notice to the Underwriter
setting forth:
(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.
As used in this section, control means the power to exercise a controlling
influence over the management or policies of the Insured.
Failing to give the required notice shall result in termination of coverage of
this bond, effective upon the date of stock transfer for any loss in which any
transferee is concerned or implicated.
Such notice is not required to be given in the case of an Insured which is an
Investment Company.
SECTION 18. CHANGE OR MODIFICATION
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This bond or any instrument amending or effecting same may not be changed or
modified orally. No changes in or modification thereof shall be effective unless
made by written endorsement issued to form a part hereof over the signature of
the Underwriter's Authorized Representative. When a bond covers only one
Investment Company no change or modification which would adversely affect the
rights of the Investment Company shall be effective prior to 60 days after
written notification has been furnished to the Securities and Exchange
Commission, Washington, D.C., by the Insured or by the Underwriter. If more than
one Investment Company is named as the Insured herein, the Underwriter shall
give written notice to each Investment Company and to the Securities and
Exchange Commission, Washington, D.C., not less than 60 days prior to the
effective date of any change or modification which would adversely affect the
rights of such Investment Company.
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ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
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ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
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* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
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Named Insured Endorsement
It is agreed that:
1. From and after the time this rider becomes effective the Insured under the
attached bond are:
2. The first named Insured shall act for itself and for each and all of the
Insured for all the purposes of the attached bond.
3. Knowledge possessed or discovery made by any Insured or by any partner or
officer thereof shall for all the purposes of the attached bond constitute
knowledge or discovery by all the Insured.
4. If, prior to the termination of the attached bond in its entirety, the
attached bond is terminated as to any Insured, there shall be no liability
for any loss sustained by such Insured unless discovered before the time such
termination as to such Insured becomes effective.
5. The liability of the Underwriter for loss or losses sustained by any or all
of the Insured shall not exceed the amount for which the Underwriter would be
liable had all such loss or losses been sustained by any one of the Insured.
Payment by the Underwriter to the first named Insured of loss sustained by
any Insured shall fully release the Underwriter on account of such loss.
6. If the first named Insured ceases for any reason to be covered under the
attached bond, then the Insured next named shall thereafter be considered as
the first named Insured for all the purposes of the attached bond.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Computer Systems
It is agreed that:
1. The attached bond is amended by adding an additional Insuring Agreement as
follows:
INSURING AGREEMENT K COMPUTER SYSTEMS
Loss resulting directly from a fraudulent
(1) entry of data into, or
(2) change of data elements or program within a Computer System listed in the
SCHEDULE below, provided the fraudulent entry or change causes
(a) Property to be transferred, paid or delivered,
(b) an account of the Insured, or of its customer, to be added, deleted,
debited or credited, or
(c) an unauthorized account or a fictitious account to be debited or
credited, and provided further, the fraudulent entry or change is made or
caused by an individual acting with the manifest intent to
(i) cause the Insured to sustain a loss, and
(ii) obtain financial benefit for that individual or for other persons
intended by that individual to receive financial benefit.
SCHEDULE
All systems utilized by the Insurer
2. As used in this Rider, Computer System means
(a) computers with related peripheral components, including storage
components, wherever located,
(b) systems and applications software,
(c) terminal devices, and
(d) related communication networks
by which data are electronically collected, transmitted, processed, stored
and retrieved.
3. In addition to the exclusions in the attached bond, the following exclusions
are applicable to this Insuring Agreement:
(a)loss resulting directly or indirectly from the theft of confidential
information, material or data; and
(b)loss resulting directly or indirectly from entries or changes made by an
individual authorized to have access to a Computer System who acts in good
faith on instructions, unless such instructions are given to that
individual by a software contractor (or by a partner, officer or employee
thereof) authorized by the Insured to design, develop, prepare, supply,
service, write or implement programs for the Insured's Computer System.
Page 1 of 2
4. The following portions of the attached bond are not applicable to this Rider:
(a)the portion preceding the Insuring Agreements which reads "at any time but
discovered during the Bond Period";
(b)Section 9 NONREDUCTION AND NON-ACCUMULATION OF LIABILITY of the Conditions
and Limitations; and
(c)Section 10 LIMIT OF LIABILITY of the Conditions and Limitations.
5. The coverage afforded by this Rider applies only to loss discovered by the
Insured during the period this Rider is in force.
6. All loss or series of losses involving the fraudulent activity of one
individual, or involving fraudulent activity, in which one individual is
implicated, whether or not that individual is specifically identified, shall
be treated as one loss. A series of losses involving unidentified individuals
but arising from the same method of operation may be deemed by the
Underwriter to involve the same individual and in that event shall be treated
as one loss.
7. The Limit of Liability for the coverage provided by this Rider shall be
Twenty-Five Million Dollars ($25,000,000 ), it being understood, however,
that such liability shall be a part of and not in addition to the Limit of
Liability stated in Item 3 of the Declarations of the attached bond or any
amendment thereof.
8. The Underwriter shall be liable hereunder for the amount by which one loss
exceeds the Deductible Amount applicable to the attached bond, but not in
excess of the Limit of Liability stated above.
9. If any loss is covered under this Insuring Agreement and any other Insuring
Agreement or Coverage, the maximum amount payable for such loss shall not
exceed the largest amount available under any one Insuring Agreement or
Coverage.
10.Coverage under this Rider shall terminate upon termination or cancellation of
the bond to which this Rider is attached. Coverage under this Rider may also
be terminated or canceled without canceling the bond as an entirety
(a) 60 days after receipt by the Insured of written notice from the
Underwriter of its desire to terminate or cancel coverage under this Rider,
or
(b) immediately upon receipt by the Underwriter of a written request from the
Insured to terminate or cancel coverage under this Rider.
The Underwriter shall refund to the Insured the unearned premium for the
coverage under this Rider. The refund shall be computed at short rates if this
Rider be terminated or canceled or reduced by notice from, or at the instance
of, the Insured.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Unauthorized Signatures
It is agreed that:
1. The attached bond is amended by inserting an additional Insuring Agreement as
follows:
INSURING AGREEMENT J UNAUTHORIZED SIGNATURE
(A) Loss resulting directly from the Insured having accepted, paid or cashed
any check or withdrawal order, draft, made or drawn on a customer's account
which bears the signature or endorsement of one other than a person whose
name and signature is on the application on file with the Insured as a
signatory on such account.
(B) It shall be a condition precedent to the Insured's right of recovery
under this Rider that the Insured shall have on file signatures of all
persons who are authorized signatories on such account.
2. The total liability of the Underwriter under Insuring Agreement J is limited
to the sum of Fifty Thousand Dollars ($50,000 ), it being understood,
however, that such liability shall be part of and not in addition to the
Limit of Liability stated in Item 3 of the Declarations of the attached bond
or amendment thereof.
3. With respect to coverage afforded under this Rider, the Deductible Amount
shall be Five Thousand Dollars ($5,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Telefacsimile Transactions
It is agreed that:
1. The attached Bond is amended by adding an additional Insuring Agreement as
follows:
INSURING AGREEMENT N TELEFACSIMILE TRANSACTIONS
Loss caused by a Telefacsimile Transaction, where the request for such
Telefacsimile Transaction is unauthorized or fraudulent and is made with the
manifest intent to deceive; provided, that the entity which receives such
request generally maintains and follows during the Bond Period all Designated
Fax Procedures with respect to Telefacsimile Transactions. The isolated
failure of such entity to maintain and follow a particular Designated Fax
Procedure in a particular instance will not preclude coverage under this
Insuring Agreement, subject to the exclusions herein and in the Bond.
2. Definitions. The following terms used in this Insuring Agreement shall have
the following meanings:
a. "Telefacsimile System" means a system of transmitting and reproducing
fixed graphic material (as, for example, printing) by means of signals
transmitted over telephone lines.
b. "Telefacsimile Transaction" means any Fax Redemption, Fax Election, Fax
Exchange, or Fax Purchase.
c. "Fax Redemption" means any redemption of shares issued by an Investment
Company which is requested through a Telefacsimile System.
d. "Fax Election" means any election concerning dividend options available to
Fund shareholders which is requested through a Telefacsimile System.
e. "Fax Exchange" means any exchange of shares in a registered account of one
Fund into shares in an identically registered account of another Fund in the
same complex pursuant to exchange privileges of the two Funds, which exchange
is requested through a Telefacsimile System.
f. "Fax Purchase" means any purchase of shares issued by through a
Telefacsimile System. an Investment Company which is requested
g. "Designated Fax Procedures" means the following procedures:
(1) Retention: All Telefacsimile Transaction requests shall be retained
for at least six (6) months. Requests shall be capable of being retrieved
and produced in legible form within a reasonable time after retrieval is
requested.
(2) Identity Test: The identity of the sender in any request for a
Telefacsimile Transaction shall be tested before executing that
Telefacsimile Transaction, either by requiring the sender to include on
the face of the request a unique identification number or to include key
specific account information. Requests of Dealers must be on company
letterhead and be signed by an authorized representative. Transactions by
occasional users are to be verified by telephone confirmation.
Page 1 of 2
(3) Contents: A Telefacsimile Transaction shall not be executed unless the
request for such Telefacsimile Transaction is dated and purports to have
been signed by (a) any shareholder or subscriber to shares issued by a
Fund, or (b) any financial or banking institution or stockbroker.
(4) Written Confirmation: A written confirmation of each Telefacsimile
Transaction shall be sent to the shareholder(s) to whose account such
Telefacsimile Transaction relates, at the record address, by the end of
the Insured's next regular processing cycle, but no later than five (5)
business days following such Telefacsimile Transaction.
i. "Designated" means or refers to a written designation signed by a
shareholder of record of a Fund, either in such shareholder's initial
application for the purchase of Fund shares, with or without a Signature
Guarantee, or in another document with a Signature Guarantee.
j. "Signature Guarantee" means a written guarantee of a signature, which
guarantee is made by an Eligible Guarantor Institution as defined in Rule
17Ad-15(a)(2) under the Securities Exchange Act of 1934.
3. Exclusions. It is further understood and agreed that this Insuring Agreement
shall not cover:
a. Any loss covered under Insuring Agreement A, "Fidelity," of this Bond; and
b. Any loss resulting from:
(1) Any Fax Redemption, where the proceeds of such redemption were
requested to be paid or made payable to other than (a) the shareholder of
record, or (b) a person Designated in the initial application or in
writing at least one (1) day prior to such redemption to receive
redemption proceeds, or (c) a bank account Designated in the initial
application or in writing at least one (1) day prior to such redemption to
receive redemption proceeds; or
(2) Any Fax Redemption of Fund shares which had been improperly credited
to a shareholder's account, where such shareholder (a) did not cause,
directly or indirectly, such shares to be credited to such account, and
(b) directly or indirectly received any proceeds or other benefit from
such redemption; or
(3) Any Fax Redemption from any account, where the proceeds of such
redemption were requested to be sent to any address other than the record
address or another address for such account which was designated (a) over
the telephone or by telefacsimile at least fifteen (15) days prior to such
redemption, or (b) in the initial application or in writing at least one
(1) day prior to such redemption; or
(4) The intentional failure to adhere to one or more Designated Fax
Procedures; or
(5) The failure to pay for shares attempted to be purchased.
4. The Single Loss Limit of Liability under Insuring Agreement N is limited to
the sum of Tewnty Five Million Dollars ($25,000,000 ) it being understood,
however, that such liability shall be part of and not in addition to the Limit
of Liability stated in Item 3 of the Declarations of the attached Bond or
amendments thereof.
5. With respect to coverage afforded under this Rider the applicable Single loss
Deductible Amount is Fifty Thousand Dollars ($50,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Voice Initiated Transactions
It is agreed that:
1. The attached bond is amended by inserting an additional Insuring Agreement as
follows:
INSURING AGREEMENT L - VOICE-INITIATED TRANSACTIONS
Loss caused by a Voice-initiated Transaction, where the request for such
Voice-initiated Transaction is unauthorized or fraudulent and is made with
the manifest intent to deceive; provided, that the entity which receives such
request generally maintains and follows during the Bond Period all Designated
Procedures with respect to Voice-initiated Redemptions and the Designated
Procedures described in paragraph 2f (1) and (3) of this Rider with respect
to all other Voice-initiated Transactions. The isolated failure of such
entity to maintain and follow a particular Designated Procedure in a
particular instance will not preclude coverage under this Insuring Agreement,
subject to the specific exclusions herein and in the Bond.
2. Definitions. The following terms used in this Insuring Agreement shall have
the following meanings:
a. "Voice-initiated Transaction" means any Voice-initiated Redemption,
Voice-initiated Election, Voice-initiated Exchange, or Voice-initiated
Purchase.
b. "Voice-initiated Redemption" means any redemption of shares issued by an
Investment Company which is requested by voice over the telephone.
c. "Voice-initiated Election" means any election concerning dividend options
available to Fund shareholders which is requested by voice over the
telephone.
d. "Voice-initiated Exchange" means any exchange of shares in a registered
account of one Fund into shares in an identically registered account of
another Fund in the same complex pursuant to exchange privileges of the
two Funds, which exchange is requested by voice over the telephone.
e. "Voice-initiated Purchase" means any purchase of shares issued by an
Investment Company which is requested by voice over the telephone.
f. "Designated Procedures" means the following procedures:
(1)Recordings: All Voice-initiated Transaction requests shall be recorded,
and the recordings shall be retained for at least six (6) months.
Information contained on the recordings 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%.
(2)Identity Test: The identity of the caller in any request for a
Voice-initiated Redemption shall be tested before executing that
Voice-initiated Redemption, either by requesting the caller to state a
unique identification number or to furnish key specific account
information.
(3)Written Confirmation: A written confirmation of each Voice-initiated
Transaction and of each change of the record address of a Fund
shareholder requested by voice over the telephone shall be mailed to
the shareholder(s) to whose account such Voice-initiated Transaction or
change of address relates, at the original record address (and, in the
case of such change of address, at the changed record address) by the
end of the Insured's next regular processing cycle, but no later than
five (5) business days following such Voice-initiated Transaction or
change of address.
Page 1 of 2
g. "Investment Company" or "Fund" means an investment company registered
under the Investment Company Act of 1940.
h. "Officially Designated" means or refers to a written designation signed by
a shareholder of record of a Fund, either in such shareholder's initial
application for the purchase of Fund shares, with or without a Signature
Guarantee, or in another document with a Signature Guarantee.
i. "Signature Guarantee" means a written guarantee of a signature, which
guarantee is made by a financial or banking institution whose deposits are
insured by the Federal Deposit Insurance Corporation or by a broker which
is a member of any national securities exchange registered under the
Securities Exchange Act of 1934.
3. Exclusions. It is further understood and agreed that this Insuring Agreement
shall not cover:
a. Any loss covered under Insuring Agreement A, "Fidelity, " of this Bond;
and
b. Any loss resulting from:
(1)Any Voice-initiated Redemption, where the proceeds of such redemption
were requested to be paid or made payable to other than (a) the
shareholder of record, or (b) a person Officially Designated to receive
redemption proceeds, or (c) a bank account Officially Designated to
receive redemption proceeds; or
(2)Any Voice-initiated Redemption of Fund shares which had been improperly
credited to a shareholder's account, where such shareholder (a) did not
cause, directly or indirectly, such shares to be credited to such
account, and (b) directly or indirectly received any proceeds or other
benefit from such redemption; or
(3)Any Voice-initiated Redemption from any account, where the proceeds of
such redemption were requested to be sent (a) to any address other than
the record address for such account, or (b) to a record address for
such account which was either (i) designated over the telephone fewer
than thirty (30) days prior to such redemption, or (ii) designated in
writing less than on (1) day prior to such redemption; or
(4)The intentional failure to adhere to one or more Designated Procedures;
or
(5)The failure to pay for shares attempted to be purchased; or
(6)Any Voice-initiated Transaction requested by voice over the telephone
and received by an automated system which receives and converts such
request to executable instructions.
4. The total liability of the Underwriter under Insuring Agreement L is limited
to the sum of Twenty-Five Million Dollars ($25,000,000 ), it being
understood, however, that such liability shall be part of and not in addition
to the Limit of Liability stated in Item 3 of the Declarations of the
attached bond or amendment thereof.
5. With respect to coverage afforded under this Rider the applicable Deductible
Amount is Fifty Thousand Dollars ($50,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Amend Definition of Employee
(Exclude EDP Coverage for Computer Software or Programs)
It is agreed that:
1. Sub-section 7 of Section 1(a) in the Definition of Employee, is deleted and
replaced by the following:
(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 (does not
include the creating, preparing, modifying or maintaining the Insured's
computer software or programs), 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"
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Definition of Investment Company
It is agreed that:
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.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Amend Section 13. - Termination as to any Employee
It is agreed that:
1. Sub-sections (b) of Section 13. TERMINATION under CONDITIONS AND LIMITATIONS,
is deleted in its entirety, and the following is substituted in lieu thereof:
Upon the detection by any Insured that such Employee has committed any
dishonest or fraudulent act(s) or theft, the Insured shall immediately
remove such Employee from a position that may enable such Employee to
cause the Insured to suffer a loss by any subsequent dishonest or
fraudulent act(s) or theft. The Insured, within forty-eight (48) hours of
such detection, shall notify the Underwriter with full and complete
particulars of the detected dishonest or fraudulent act(s) or theft, or
For purposes of this section, detection occurs when any partner, officer,
or supervisory Employee of any Insured, who is not in collusion with such
(detected) Employee, becomes aware that the (detected) Employee has
committed any dishonest or fraudulent act(s) or theft.
This Bond shall terminate as to any Employee by written notice to each
Insured and to the Securities and Exchange Commission from the Underwriter
of not less than sixty (60) days prior to the effective date of
termination specified in such notice.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Automated Phone Systems
1. The attached Bond is amended by adding an additional Insuring Agreement as
follows:
INSURING AGREEMENT M - AUTOMATED PHONE SYSTEMS ("APS")
Loss caused by an APS Transaction, where the request for such APS Transaction
is unauthorized or fraudulent and is made with the manifest intent to
deceive; provided, that the entity which receives such request generally
maintains and follows during the Bond Period all APS Designated Procedures
with respect to APS Transactions. The isolated failure of such entity to
maintain and follow a particular APS Designated Procedure in a particular
instance will not preclude coverage under this Insuring Agreement, subject to
the exclusions herein and in the Bond.
2. Definitions. The following terms used in this Insuring Agreement shall have
the following meanings:
a. "Automated Phone Systems" or "APS" means an automated system which
receives and converts to executable instructions (1) transmissions by
voice over the telephone, or (2) transmissions over the telephone through
use of a touch-tone keypad or other tone system; and always excluding
transmissions from a Computer System or part thereof.
b. "APS Transaction" means any APS Redemption, APS Election, APS Exchange, or
PAS Purchase.
c. "APS Redemption" means any redemption of shares issued by an Investment
Company which is requested through an Automated Phone System.
d. "APS Election" means any election concerning dividend options available to
Fund shareholders which is requested through an Automated Phone System.
e. "APS Exchange" means any exchange of shares in a registered account of one
Fund into shares in an identically registered account of another Fund in
the same complex pursuant to exchange privileges of the two Funds, which
exchange is requested through an Automated Phone System.
f. "APS Purchase" means any purchase of shares issued by an Investment
Company which is requested through an Automated Phone System.
g. "APS Designated Procedures" means the following procedures:
(1)Logging: All APS Transaction requests shall be logged or otherwise
recorded, so as to preserve all of the information necessary to effect
the requested APS Transaction transmitted in the course of such a
request, and the records shall be retained for at least six months.
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.
(2)Identity Test: The identity of the caller in any request for an APS
Transaction shall be tested before executing that APS Transaction, by
requiring the entry by the caller of an identification number
consisting of at least four characters.
(3)Contemporaneous Confirmation: All information in each request for an
APS Transaction which is necessary to effect such APS Transaction shall
be contemporaneously repeated to the caller, and no such APS
Transaction shall be executed unless the caller has confirmed the
accuracy of such information.
Page 1 of 2
(4)Written Confirmation: A written confirmation of each APS Transaction
shall be sent to the shareholder(s) to whose account such APS
Transaction relates, at the record address, by the end of the Insured's
next regular processing cycle, but not later than five (5) business
days following such APS Transaction.
(5)Access to APS Equipment: Physical access to APS equipment shall be
limited to duly authorized personnel.
h. "Investment Company" or "Fund" means a investment company registered under
the Investment Company Act of 1940.
i. "Officially Designated" means or refers to a written designation signed by
a shareholder of record of a Fund, either in such shareholder's initial
application for the purchase of Fund shares, with or without a Signature
Guarantee, or in another document with a Signature Guarantee.
j. "Signature Guarantee" means a written guarantee of a signature, which
guarantee is made by a financial or banking institution whose deposits are
insured by the Federal Deposit Insurance Corporation or by a broker which
is a member of any national securities exchange registered under the
Securities Exchange Act of 1934.
3. Exclusion: It is further understood and agreed that this Insuring Agreement
shall not cover:
a. Any loss covered under Insuring Agreement A, "Fidelity", of this Bond: and
b. Any loss resulting from:
(1)Any APS Redemption, where the proceeds of such redemption were requested
to be paid or made payable to other than (a) the shareholder of record, or
(b) a person officially Designated to receive redemption proceeds, or (c)
a bank account Officially Designated to receive redemption proceeds; or
(2)Any APS Redemption of Fund shares which had been improperly credited to a
shareholder's account, where such shareholder (a) did not cause, directly
or indirectly, such shares to be credited to such account, and (b)
directly or indirectly received any proceeds or other benefit from such
redemption; or
(3)Any APS Redemption from any account, where the proceeds of such redemption
were requested to be sent (a) to any address other than the record address
for such account, or (b) to a record address for such account which was
either (i) designated over the telephone fewer than thirty (30) days prior
to such redemption, or (ii) designated in writing less than one (1) day
prior to such redemption; or
(4)The failure to pay for shares attempted to be purchased, or
(5)The intentional failure to adhere to one or more APS Designated
Procedures.
4. The total liability of the Underwriter under Insuring Agreement M is limited
to the sum of TwentyFive Million Dollars ($25,000,000 ), it being understood,
however, that such liability shall be part of and not in addition to the
Limit of Liability stated in Item 3 of the Declarations of the attached bond
or amendments thereof.
5. With respect to coverage afforded under this Rider, the applicable Deductible
Amount is Fifty Thousand Dollars ($50,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Amend Definition of Employee (Include Contractors)
It is agreed that:
1. Section 1(a) EMPLOYEES, under Definitions -CONDITIONS AND LIMITATIONS, is
amended to include the following sub-section;
[X] A person provided by an employment contractor to perform duties for the
Insured under the Insured's supervision at any of the Insured's offices
or premises covered hereunder.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Add Exclusions (n) & (o)
It is agreed that:
1. Section 2, Exclusions, under General Agreements, is amended to include the
following sub-sections:
(n)loss from the use of credit, debit, charge, access, convenience,
identification, cash management or other cards, whether such cards were
issued or purport to have been issued by the Insured or by anyone else,
unless such loss is otherwise covered under Insuring Agreement A.
(o)the underwriter shall not be liable under the attached bond for loss due
to liability imposed upon the Insured as a result of the unlawful
disclosure of non-public material information by the Insured or any
Employee, or as a result of any Employee acting upon such information,
whether authorized or unauthorized.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
Joint Loss Payee
It is agreed that:
1. At the written request of the named Insured, any payment in satisfaction of
loss covered by said Bond involving money or other Property in which the has
an interest shall be paid by an instrument issued to that entity and the
Named Insured as Joint Loss-Payees, subject to the following conditions and
limitations:
a. The attached Bond is for the sole use and benefit of the Named Insured as
expressed herein. The entity named above shall not be considered as an
Insured under the Bond, nor shall it otherwise have any rights or benefits
under said Bond.
b. Notwithstanding any payment made under the terms of this Rider or the
execution of more than one of such similar rider, the amount paid for any
one loss occurrence or otherwise in accordance with the terms of this Bond
shall not exceed the limits of liability as set forth in Item 3 of the
Declarations Page.
2. Should this Bond be canceled, reduced, non-renewed or restrictively modified
by the Underwriter or at the request of the Insured, the Underwriter will
give sixty (60) days written advance notice by certified mail, return receipt
requested to the entity named above, but failure to do so shall not impair or
delay the effectiveness of any such cancellation, reduction, non-renewal or
restrictive modification, nor shall the Underwriter be held liable in any
way.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
AUTOMATIC COVERAGE FOR NEW INVESTMENT COMPANIES/INCREASE IN LIMITS
MEL2684 - Ed. 3/05 - For use with ICB005 - Ed. 7/04
It is agreed that:
1. General Agreement A., Additional Offices or Employees -Consolidation or
Merger -Notice, is amended to include the following paragraph:
(3)If the Insured shall, while this bond is in force, establish any new
Investment Companies other than by consolidation or merger with, or
purchase or acquisition of assets or liabilities of, another institution,
such Investment Companies shall automatically be covered hereunder from
the date of such establishment without the payment of additional premium
for the remainder of such premium period.
2. Section 10., Limit of Liability, is amended to include the following
paragraph:
If the Insured shall, while this bond is in force, require an increase in
limits to comply with SEC Reg. 17g-1, due to an increase in asset size of
current Investment Companies insured under the bond or the addition of new
Investment Companies, such increase in limits shall automatically be covered
hereunder from the date of such increase without the payment of additional
premium for the remainder of the premium period.
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
The following spaces preceded by an (*) need not be completed if this
endorsement or rider and the Bond or Policy have the same inception date.
-------------------------------------------------------------------------------------------------
ATTACHED TO AND FORMING DATE ENDORSEMENT OR * EFFECTIVE DATE OF ENDORSEMENT OR RIDER
PART OF BOND OR POLICY NO. RIDER EXECUTED 12:01 A.M. STANDARD TIME AS
SPECIFIED IN THE BOND OR POLICY
469PB0607 09/13/05 07/15/05
-------------------------------------------------------------------------------------------------
* ISSUED TO
JOHN HANCOCK CAPITAL SERIES, INC.
-------------------------------------------------------------------------------------------------
AMEND DEFINITION OF EMPLOYEE
MEL2899 Ed. 5/05 - For use with ICB005 Ed. 7/04
It is agreed that:
1. The following is added to Definition (a), Employee, of Section 1. -
DEFINITIONS, of the CONDITIONS AND LIMITATIONS:
to include employees of Affiliated Sub-Adviser Independence Advisors, LLC
only while acting on behalf of Investment Company
Nothing herein contained shall be held to vary, alter, waive, or extend any of
the terms, conditions, provisions, agreements or limitations of the above
mentioned Bond or Policy, other than as above stated.
By
--------------------------
Authorized Representative
INSURED
Page 1 of 1
ICI MUTUAL INSURANCE COMPANY
P.O. Box 730
Burlington, Vermont 05402-0730
INVESTMENT COMPANY BLANKET BOND
(EXCESS)
ICI MUTUAL INSURANCE COMPANY
P.O. Box 730
Burlington, Vermont 05402-0730
DECLARATIONS
------------------------------------------------------------------------------------------------------------------------------------
Item 1. Name of Insured (the "Insured") Bond Number
John Hancock Capital Series 87142105B
Principal Address: 601 Congress Street, Boston, MA 02210-2805
------------------------------------------------------------------------------------------------------------------------------------
Item 2. Bond Period: from 12:01 a.m. on July 15, 2005 to 12:01 a.m. on July 15, 2006, or the earlier effective date of
the termination of this Bond, standard time at the Principal Address as to each of said dates.
------------------------------------------------------------------------------------------------------------------------------------
Item 3. Limit of Liability--
DEDUCTIBLE
LIMIT OF LIABILITY AMOUNT (1)
Insuring Agreement A--FIDELITY $20,000,000 $25,000,000
Insuring Agreement C--PREMISES $20,000,000 $25,000,000
Insuring Agreement D--TRANSIT $20,000,000 $25,000,000
Insuring Agreement E--FORGERY OR ALTERATION $20,000,000 $25,000,000
Insuring Agreement F--SECURITIES $20,000,000 $25,000,000
Insuring Agreement G--COUNTERFEIT CURRENCY $20,000,000 $25,000,000
Insuring Agreement K-COMPUTER SYSTEMS $20,000,000 $25,000,000
Insuring Agreement L--VOICE-INTIATED TRANSACTIONS $20,000,000 $25,000,000
Insuring Agreement M--AUTOMATIC PHONE SYSTEMS $20,000,000 $25,000,000
(1) Plus the applicable deductible of the Primary Bond
------------------------------------------------------------------------------------------------------------------------------------
Item 4. PRIMARY BOND--St. Paul Fire and Marine Insurance Company Blanket Bond No. 469PB0607
------------------------------------------------------------------------------------------------------------------------------------
Item 5. The liability of ICI Mutual Insurance Company (the "Underwriter") is subject to the terms of the following Riders
attached hereto:
Riders: 1
and of all Riders applicable to this Bond issued during the Bond Period.
====================================================================================================================================
By: /S/ Maggie Sullivan
-------------------
Authorized Representative
ICI Mutual Insurance Company ("Underwriter"), in consideration of the required
premium, and in reliance on the application and all other information furnished
to the Underwriter by the Insured, and subject to and in accordance with the
Declarations, General Agreements, Provisions, Conditions and Limitations of this
bond, agrees to indemnify the Insured for loss, discovered during the Bond
Period, which would otherwise have been paid under the Primary Bond but for the
fact that the loss exceeds the limit of liability of such Primary Bond. Coverage
under this bond shall follow the terms and conditions of the Primary Bond,
except with respect to:
a. Any coverage exceptions specified by riders attached to this bond;
b. The deductible amounts and limits of liability as stated in ITEM 3. of the
Declarations and;
c. The General Agreements, Provisions, Conditions and Limitations set forth
herein.
GENERAL AGREEMENTS
A. CHANGE OR MODIFICATION OF PRIMARY BOND
If after the inception date of this bond the Primary Bond is changed or
modified, written notice of any such change or modification shall be given to
the Underwriter as soon as practicable, not to exceed thirty (30) days after
such change or modification, together with such information as the
Underwriter may request. There shall be no coverage under this bond for any
loss arising from or in any way related to such change or modification until
such time as the Underwriter is advised of and specifically agrees by written
endorsement to provide coverage for such change or modification.
B. LOSS--NOTICE--PROOF--LEGAL PROCEEDINGS
This Bond is for the use and benefit only of the Insured and the Underwriter
shall not be liable hereunder for loss sustained by anyone other than the
Insured (except that if the Insured includes such other loss in the Insured's
proof of loss, the Underwriter shall consider its liability therefor.) As
soon as practicable and not more than sixty (60) days after discovery of any
loss covered hereunder, the Insured shall give the Underwriter written notice
thereof and, as soon as practicable and within one year after such discovery,
shall also furnish to the Underwriter affirmative proof of loss with full
particulars. The Underwriter may extend the sixty day notice period or the
one year proof of loss period if the Insured requests an extension and shows
good cause therefor.
The Underwriter shall not be liable hereunder for loss of Securities unless
each of the Securities is identified in such proof of loss by a certificate
or bond number or by such identification means as the Underwriter may
require. The Underwriter shall have a reasonable period after receipt of a
proper affirmative proof of loss within which to investigate the claim, but
where the loss is of Securities and is clear and undisputed, settlement shall
be made within forty-eight (48) hours even if the loss involves Securities of
which duplicates may be obtained.
The Insured shall not bring legal proceedings against the Underwriter to
recover any loss hereunder prior to sixty (60) days after filing such proof
of loss or subsequent to twenty-four (24) months after the discovery of such
loss or, in the case of a legal proceeding to recover hereunder on account of
any judgment against the Insured in or settlement of any suit or to recover
court costs or attorneys' fees paid in any such suit, twenty-four (24) months
after the date of the final judgment in or settlement of such suit. If any
limitation in this bond is prohibited by any applicable law, such limitation
shall be deemed to be amended to be equal to the minimum period of limitation
permitted by such law.
Notice hereunder shall be given to Manager, Professional Liability Claims,
ICI Mutual Insurance Company, P.O. Box 730, Burlington, Vermont 05402-0730.
PROVISIONS, CONDITIONS AND LIMITATIONS
SECTION 1. DEFINITIONS
a. Deductible Amount means the amount stated in ITEM 3. of the Declarations,
applicable to each Single Loss. In no event shall this Deductible Amount be
reduced for any reason, including but not limited to, the non-existence,
invalidity, insufficiency or uncollectibility of any Underlying Bond(s),
including the insolvency or dissolution of any Insurer providing coverage
under any Underlying Bond(s).
b. Primary Bond means the bond scheduled in ITEM 5. of the Declarations or any
bond that may replace or substitute for such bond.
c. Single Loss means:
(1) all loss resulting from any one actual or attempted theft committed by
one person, or
(2) all loss caused by any one act (other than a theft or a dishonest or
fraudulent act) committed by one person, or
(3) all loss caused by dishonest or fraudulent acts committed by one person,
or
(4) all expenses incurred with respect to any one audit or examination, or
(5) all loss caused by any one occurrence or event other than those specified
in subsections (1) through (4) above.
d. Underlying Bond means the Primary Bond and all other insurance coverage
referred to in ITEM 4. Of the Declarations.
SECTION 2. SINGLE LOSS LIMIT OF LIABILITY
The Underwriter's liability for each Single Loss shall not exceed the Limit
of Liability as stated in ITEM 3. of the Declarations.
SECTION 3. DISCOVERY
For all purposes under this bond, a loss is discovered, and discovery of a
loss occurs, when the Insured
(1) becomes aware of facts, or
(2) receives notice of an actual or potential claim by a third party which
alleges that the Insured is liable under circumstances, which would cause a
reasonable person to assume that loss covered by this bond has been or is
likely to be incurred even though the exact amount or details of loss may not
be known.
SECTION 4. ASSIGNMENT OF RIGHTS
Upon payment to the Insured hereunder for any loss, the Underwriter shall be
subrogated to the extent of such payment to all of the Insured's rights and
claims in connection with such loss; provided, however, that the Underwriter
shall not be subrogated to any such rights or claims one named Insured under
this bond may have against another named Insured under this bond. At the
request of the Underwriter, the Insured shall execute all assignments or
other documents and take such action as the Underwriter may deem necessary or
desirable to secure and perfect such rights and claims, including the
execution of documents necessary to enable the Underwriter to bring suit in
the name of the Insured.
Assignment of any rights or claims under this bond shall not bind the
Underwriter without the Underwriter's written consent.
SECTION 5. COOPERATION OF INSURED
At the Underwriter's request and at reasonable times and places designated by
the Underwriter the Insured shall:
a. submit to examination by the Underwriter and subscribe to the same under
oath, and
b. produce for the Underwriter's examination all pertinent records, and
c. cooperate with the Underwriter in all matters pertaining to the loss.
The Insured shall execute all papers and render assistance to secure for the
Underwriter the rights and causes of action provided for under this bond. The
Insured shall do nothing after loss to prejudice such rights or causes of
action.
SECTION 6. TERMINATION
The Underwriter may terminate this bond as to any Insured or all Insureds
only by written notice to such Insured or Insureds and, if this bond is
terminated as to any investment company registered under the Investment
Company Act of 1940, to each such investment company terminated thereby and
to the Securities and Exchange Commission, Washington, D.C., in all cases not
less than sixty (60) days prior to the effective date of termination
specified in such notice.
The Insured may terminate this bond only by written notice to the Underwriter
not less than sixty (60) days prior to the effective date of the termination
specified in such notice. Notwithstanding the foregoing, when the Insured
terminates this bond as to any investment company registered under the
Investment Company Act of 1940, the effective date of termination shall be
not less than sixty (60) days from the date the Underwriter provides written
notice of the termination to each such investment company terminated thereby
and to the Securities and Exchange Commission, Washington, D.C.
This bond will terminate as to any Insured entity that is not an investment
company registered under the Investment Company Act of 1940 immediately and
without notice upon (1) the takeover of such Insured's business by any State
or Federal official or agency, or by any receiver or liquidator, or (2) the
filing of a petition under any State or Federal statute relative to
bankruptcy or reorganization of the Insured, or assignment for the benefit of
creditors of the Insured.
Premiums are earned until the effective date of termination. The Underwriter
shall refund the unearned premium computed at short rates in accordance with
the Underwriter's standard short rate cancellation tables if this bond is
terminated by the Insured or pro rata if this bond is terminated by the
Underwriter.
Upon the detection by any Insured that an employee (as defined in the Primary
Bond) has committed any dishonest or fraudulent act(s) or theft, the Insured
shall immediately remove such employee from a position that may enable such
employee to cause the Insured to suffer a loss by any subsequent dishonest or
fraudulent act(s) or theft. The Insured, within two (2) business days of such
detection, shall notify the Underwriter with full and complete particulars of
the detected dishonest or fraudulent act(s) or theft.
For purposes of this section, detection occurs when any partner, officer, or
supervisory employee of any Insured, who is not in collusion with such
employee, becomes aware that the employee has committed any dishonest or
fraudulent act(s) or theft.
This bond shall terminate as to any employee (as defined in the Primary Bond)
by written notice from the Underwriter to each Insured and, if such employee
is an employee of an Insured investment company registered under the
Investment Company Act of 1940, to the Securities and Exchange Commission, in
all cases not less than sixty (60) days prior to the effective date of
termination specified in such notice.
SECTION 7. CONFORMITY
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.
SECTION 8. CHANGE OR MODIFICATION
This bond may only be modified by written Rider forming a part hereof over
the signature of the Underwriter's authorized representative. Any Rider which
modifies the coverage provided by Insuring Agreement A, Fidelity (or the
equivalent insuring agreement) of the Primary Bond in a manner which
adversely affects the rights of an Insured investment company registered
under the Investment Company Act of 1940 shall not become effective until at
least sixty (60) days after the Underwriter has given written notice thereof
to the Securities and Exchange Commission, Washington, D.C., and to each
Insured investment company registered under the Investment Company Act of
1940 affected thereby.
SECTION 9. DEDUCTIBLE AMOUNT; LIMIT OF LIABILITY
The Underwriter shall not be liable under any Insuring Agreement unless the
amount of the loss covered thereunder, after deducting the net amount of all
reimbursement and/or recovery received by the Insured with respect to such
loss (other than from the Primary Bond or from any other bond, suretyship or
insurance policy), shall exceed the applicable Deductible Amount; in such
case the Underwriter shall be liable only for such excess, subject to the
applicable Limit of Liability and other agreements, provisions, conditions
and limitations of this bond.
The maximum liability of the Underwriter for any Single Loss covered by any
Insuring Agreement under this bond shall be the Limit of Liability applicable
to such Insuring Agreement, subject to the applicable Deductible Amount and
the other agreements, provisions, conditions and limitations of this bond.
ICI MUTUAL INSURANCE COMPANY
INVESTMENT COMPANY BLANKET BOND
(EXCESS BOND)
RIDER NO. 1
--------------------------------------------------------------------------------
INSURED BOND NUMBER
John Hancock Capital Series 87142105B
--------------------------------------------------------------------------------
EFFECTIVE DATE BOND PERIOD AUTHORIZED REPRESENTATIVE
July 15, 2005 July 15, 2005 to July 15, 2006 /S/ Maggie Sullivan
================================================================================
Most property and casualty insurers, including ICI Mutual Insurance Company
("ICI Mutual"), are subject to the requirements of the Terrorism Risk Insurance
Act of 2002 (the "Act"). The Act establishes a Federal insurance backstop under
which ICI Mutual and these other insurers will be partially reimbursed for
future "insured losses" resulting from certified "acts of terrorism." (Each of
these bolded terms is defined by the Act.) The Act also places certain
disclosure and other obligations on ICI Mutual and these other insurers.
Pursuant to the Act, any future losses to ICI Mutual caused by certified "acts
of terrorism" will be partially reimbursed by the United States government under
a formula established by the Act. Under this formula, the United States
government will reimburse ICI Mutual for 90% of ICI Mutual's "insured losses" in
excess of a statutorily established deductible until total insured losses of all
participating insurers reach $100 billion. If total "insured losses" of all
property and casualty insurers reach $100 billion during any applicable period,
the Act provides that the insurers will not be liable under their policies for
their portions of such losses that exceed such amount. Amounts otherwise payable
under this bond may be reduced as a result.
Coverage under this bond remains subject to all applicable terms, conditions and
limitations of the bond (including exclusions) that are permissible under the
Act. The portion of the premium that is attributable to any coverage potentially
available under the bond for "acts of terrorism" is one percent (1%).
FINANCIAL INSTITUTIONAL BOND
Standard Form No. 25, Revised to October, 1987
Bond No. 8152 00 12 H
CHUBB INSURANCE COMPANY OF CANADA
(Herein called Underwriter)
DECLARATIONS
ITEM 1. Name of Insured (herein called Insured):
Manulife Financial Corporation
(As Per Rider Attached)
Principal Address:
200 Bloor Street East,
Toronto, Ontario
M4W IE5
Item 2. Bond Period: from 12:01 a.m. on March 31, 2005 to 12:01 a.m. on March 31, 2006 standard time.
(MONTH, DAY, YEAR) (MONTH, DAY, YEAR)
-----------------------------------------------------------------------------------------------------------
Item 3. The Aggregate Liability of the Underwriter during the Bond Period shall be $50,000,000. US
-----------------------------------------------------------------------------------------------------------
Item 4. Subject to Sections 4 and 11 hereof,
The Single Loss Limit of Liability is $25,000,000.US
And the Single Loss Deductible is $ 5,000,000.US
Provided, however, that if any amounts are inserted below opposite specified Insuring Agreements or
Coverage, those amounts shall be controlling. Any amount set forth below shall be part of and not
in addition to amounts set forth above. (If an Insuring Agreement or Coverage is to be deleted,
insert "Not Covered.")
Amount applicable to: Single Loss Single Loss
Limit of Liability Deductible
-------------------------- ---------------------------
Insuring Agreement (D) - Forgery or Alteration $25,000,000. US $5,000,000.US
Insuring Agreement (E) - Securities $25,000,000. US $5,000,000.US
Optional Insuring Agreements and Coverages:
Insuring Agreement (F) - Counterfeit Currency $25,000,000. US $5,000,000.US
Insuring Agreement (G) - Redemption of Canada Savings Bonds $25,000,000. US $5,000,000.US
Insuring Agreement (H) - Fraudulent Mortgages $25,000,000. US $5,000,000.US
Insuring Agreement (I) - Unauthorized Signatures $100,000. US $10,000.US
Insuring Agreement (J) - Telephone Toll Call Fraud $100,000. US $10,000.US
Trading Loss Coverage $25,000,000. US $5,000,000.US
Agent Insuring Agreement $10,000,000. US $5,000,000.US
Fidelity Claims Expense $100,000. US NIL
Stop Payment Order Liability $100,000. US $10,000.US
Audit Expense $100,000. US NIL
Bond 25
Page 1 of 2
If "Not Covered" is inserted above opposite any specified Insuring Agreement or Coverage, such
Insuring Agreement or Coverage and any other reference thereto in this bond shall be deemed to be
deleted therefrom.
-----------------------------------------------------------------------------------------------------------
Item 5. The liability of the Underwriter is subject to the terms of the following riders attached hereto:
Rider No's. 1 - 32
-----------------------------------------------------------------------------------------------------------
Item 6. Insured's Offices Covered - All offices in the United States of America and Canada and any other
offices listed below: All offices anywhere in the world
-----------------------------------------------------------------------------------------------------------
Item 7. The Insured by the acceptance of this bond gives notice to the Underwriter terminating or canceling
prior bond(s) or policy(ies) No.(s). 81520012G
Such termination or cancellation to be effective as of the time this bond becomes effective.
================================================================================
IN WITNESS WHEREOF, CHUBB INSURANCE COMPANY OF CANADA has caused this policy to
be signed by its authorized officer, but this policy shall not be valid unless
signed by a duly authorized Representative of the Company.
/s/ Ellen J. Moore
------------------
President
CHAIRMAN
Toronto, Ontario June 9, 2005
---------------------------------
Issued at Date
Bond 25
Page 2 of 2
CHUBB logo
CHUBB INSURANCE COMPANY OF CANADA
ONE FINANCIAL PLACE, 1 ADELAIDE ST. E., TORONTO, ONT. M5C 2V9 Telephone (416) 863-0550
Facsimile (416) 863-5010
THIS CERTIFIES THAT pending issuance of a Bond in the form described below, the
Chubb Insurance Company Of Canada, hereinafter called the Company, is binding
coverage described as follows:
1. Named of Insured: Manulife Financial Corporation And Manulife Securities
International Limited
Address: 200 Bloor Street East
Toronto, Ontario M4W1E5
2. Producer: March Canada Limited
Attn: Michael Shore
Address: 161 Bay Street, #1400
Toronto, ON M5J 2S4
3. Bond Number: 81520012
4. Bond Type/Form No.: Financial Institution Bond Form 25 (Rev. 10-87)
Form TSB 5174a
5. Bond Period: From: 12:01 a.m. on 03/31/2005
To: 12:01 a.m. on 03/31/2006
6. Term of Binder: From: 12:01 a.m. on March 31, 2005
To: 12:01 a.m. on Upon Issuance of the
Policy
7. Aggregate Limit of Liability: $US $50,000,000
8. Single Loss Limit of Liability and Deductible Amounts: US $25,000,000
Insuring Agreement Single Loss Limit of Liability Deductible Amount
-------------------------- ------------------------------- ------------------
A. Fidelity $ US 25,000,000 $ US 5,000,000
B. On Premises $ US 25,000,000 $ US 5,000,000
C. In Transit $ US 25,000,000 $ US 5,000,000
D. Forgery or Alteration $ US 25,000,000 $ US 5,000,000
E. Securities $ US 25,000,000 $ US 5,000,000
9. Endorsement(s) effective at inception: As Per the Expiry FIB with the Exception of the
Following:
1. Language for Expiring Endt. #12-ERISA
still being determined;
2. Expiring Endt. #10-Third Party
Administrator is effective for 90 days.
Prior to June 30/2005 we agree to
reevaluate where Manulife is in the process
of tying it's TPA's to contractual
agreements.
10.Premium: $US 600,000 (1 Year Prepaid Premium)
11.Commission Payable: 12.5%
This Binder includes coverage for the Expiring ECCP coverage as per the
2004/2005 policy term. The ECCP coverage has a separate limit of US $25/$50M
aggregate.
The above Binder is expressly contingent upon receipt, review and acceptance of
the subjectivity's listed below. The Company must receive all of the items
identified below on or before the Binder Expiration Date shown above. If all of
these items are not received and approved by the Company on or before this date,
this Binder will automatically expire without further action or notice.
Fully completed and signed FIB and ECCP Applications (must be dated in
March/2005 and received within 30 days of binding).
The foregoing Binder for coverage is subject to modification or withdrawal by
the Company if, before the proposed inception date, any new, corrected or
updated information becomes known which relates to any proposed Insured's claims
history or risk exposure or which could otherwise change the underwriting
evaluation of any proposed Insured and the Company, in its sole discretion,
determines that the terms of this Binder are no longer appropriate.
It is expressly stipulated that except as otherwise provided herein, the
coverage provided by this Binder is subject to all of the terms and conditions
of the quotation letter of February 28/2005 and attachments thereto issued by
the Company. A copy of this quotation letter, without the reference attachments,
is attached to this Binder.
This Binder may be canceled at any time by the entity referred to in item 1 by
giving written notice of cancellation to the Company. This Binder may be
canceled at any time by the Company upon ten (10) days written notice of
cancellation to the entity referred to in item 1 or its agent.
This Binder shall terminate automatically upon the expiration date shown above,
or upon issuance of the Bond, whichever occurs first. A short rate premium
charge will be made for this Binder unless the Bond is issued by the Company and
accepted by the entity referred to above. The Company reserves the right to
modify the policies, terms and conditions upon underwriting review of any
information received.
This binder does not apply to the extent that trade or economic sanctions or
other laws or regulations prohibit us from offering or providing insurance. To
the extent any such prohibitions apply, the binder is void ab initio.
By: Carol McLellan Date: 03/30/2005
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Authorized Representative mm/dd/ccyy
Attachment