Chubb Group of Insurance Companies
15 Mountain View Road, Warren, New Jersey 07059
FEDERAL INSURANCE COMPANY
Incorporated under the laws of Indiana
a stock insurance company herein called the COMPANY
Capital Center, 251 North Illinois, Suite 1100
Indianapolis, IN 46204-1927
DECLARATIONS
FINANCIAL INSTITUTION INVESTMENT COMPANY ASSET PROTECTION BOND
Bond Number: 81905981
NAME OF ASSURED (including its Subsidiaries):
ING FAMILY OF FUNDS
7337 E. Double Tree Ranch Road
Scottsdale, AZ 85258
ITEM 1. BOND PERIOD:
from 12:01 a.m. on October 1, 2006 to 12:01 a.m. on October 1, 2007
ITEM 2. LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
If 'Not Covered' is inserted below opposite any specified INSURING CLAUSE, such
INSURING CLAUSE and any other reference shall be deemed to be deleted. There
shall be no deductible applicable to any loss under INSURING CLAUSE 1. sustained
by any Investment Company.
DEDUCTIBLE
INSURING CLAUSE LIMIT OF LIABILITY AMOUNT
--------------- ------------------ ----------
1. Employee $25,000,000 $ 0
2. On Premises $25,000,000 $25,000
3. In Transit $25,000,000 $25,000
4. Forgery or Alteration $25,000,000 $25,000
5. Extended Forgery $25,000,000 $25,000
6. Counterfeit Money $25,000,000 $25,000
7. Threats to Person $25,000,000 $25,000
8. Computer System $25,000,000 $25,000
9. Voice Initiated Funds Transfer
Instruction $25,000,000 $25,000
10 Uncollectible Items of Deposit $ 250,000 $ 5,000
11.Audit Expense $ 250,000 $ 5,000
12.Claims Expense $ 25,000 $ 0
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE
FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
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IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its
authorized officers, but it shall not be valid unless also signed by an
authorized representative of the Company.
/S/ W. Andrew Macan
-------------------------------------
W. Andrew Macan
Secretary
/s/ Thomas F. Motamed
-------------------------------------
Thomas F. Motamed
President
/s/ Robert Hamburger
-------------------------------------
Robert Hamburger
Authorized Representative
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The COMPANY, in consideration of payment of the required premium, and in
reliance on the APPLICATION and all other statements made and information
furnished to the COMPANY by the ASSURED, and subject to the DECLARATIONS made a
part of this Bond and to all other terms and conditions of this Bond, agrees to
pay the ASSURED for:
Insuring Clauses
Employee
1. Loss resulting directly from Larceny or Embezzlement committed by any
Employee, alone or in collusion with others.
On Premises
2. Loss of Property resulting directly from robbery, burglary, false pretenses,
common law or statutory larceny, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal, from the possession, custody or
control of the ASSURED, while such Property is lodged or deposited at premises
located anywhere.
In Transit
3. Loss of Property resulting directly from common law or statutory larceny,
misplacement, mysterious unexplainable disappearance, damage or destruction,
while the Property is in transit anywhere:
a. in an armored motor vehicle, including loading and unloading thereof,
b. in the custody of a natural person acting as a messenger of the ASSURED, or
c. in the custody of a Transportation Company and being transported in a
conveyance other than an armored motor vehicle provided, however, that covered
Property transported in such manner is limited to the following:
(1) written records,
(2) securities issued in registered form, which are not endorsed or are
restrictively endorsed, or
(3) negotiable instruments not payable to bearer, which are not endorsed or are
restrictively endorsed.
Coverage under this INSURING CLAUSE begins immediately on the receipt of
such Property by the natural person or Transportation Company and ends
immediately on delivery to the premises of the addressee or to any
representative of the addressee located anywhere.
Forgery Or Alteration
4. Loss resulting directly from:
a. Forgery on, or fraudulent material alteration of, any bills of exchange,
checks, drafts, acceptances, certificates of deposits, promissory notes, due
bills, money orders, orders upon public treasuries, letters of credit, other
written promises, orders or directions to pay sums certain in money, or receipts
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for the withdrawal of Property, or
b. transferring, paying or delivering any funds or other Property, or
establishing any credit or giving any value in reliance on any written
instructions, advices or applications directed to the ASSURED authorizing or
acknowledging the transfer, payment, delivery or receipt of funds or other
Property, which instructions, advices or applications fraudulently purport to
bear the handwritten signature of any customer of the ASSURED, or shareholder or
subscriber to shares of an Investment Company, or of any financial institution
or Employee but which instructions, advices or applications either bear a
Forgery or have been fraudulently materially altered without the knowledge and
consent of such customer, shareholder, subscriber, financial institution or
Employee; excluding, however, under this INSURING CLAUSE any loss covered under
INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING CLAUSE 5.
is provided for in the DECLARATIONS of this Bond.
For the purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile signature is treated the same as a handwritten signature.
Extended Forgery
5. Loss resulting directly from the ASSURED having, in good faith, and in the
ordinary course of business, for its own account or the account of others in any
capacity:
a. acquired, accepted or received, accepted or received, sold or delivered, or
given value, extended credit or assumed liability, in reliance on any original
Securities, documents or other written instruments which prove to:
(1) bear a Forgery or a fraudulently material alteration,
(2) have been lost or stolen, or
(3) be Counterfeit, or
b. guaranteed in writing or witnessed any signatures on any transfer,
assignment, bill of sale, power of attorney, guarantee, endorsement or other
obligation upon or in connection with any Securities, documents or other written
instruments.
Actual physical possession, and continued actual physical possession if
taken as collateral, of such Securities, documents or other written instruments
by an Employee, Custodian, or a Federal or State chartered deposit institution
of the ASSURED is a condition precedent to the ASSURED having relied on such
items. Release or return of such collateral is an acknowledgment by the ASSURED
that it no longer relies on such collateral.
For the purpose of this INSURING CLAUSE, a mechanically reproduced
facsimile signature is treated the same as a handwritten signature.
Counterfeit Money
6. Loss resulting directly from the receipt by the ASSURED in good faith of any
Counterfeit money.
Threats To Person
7. Loss resulting directly from surrender of Property away from an office of the
ASSURED as a result of a threat communicated to the ASSURED to do bodily harm to
an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or invitee
of such Employee, or a resident of the household of such Employee, who is, or
allegedly is, being held captive provided, however, that prior to the surrender
of such Property:
a. the Employee who receives the threat has made a reasonable effort to notify
an officer of the ASSURED who is not
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involved in such threat, and
b. the ASSURED has made a reasonable effort to notify the Federal Bureau of
Investigation and local law enforcement authorities concerning such threat.
It is agreed that for purposes of this INSURING CLAUSE, any Employee of the
ASSURED, as set forth in the preceding paragraph, shall be deemed to be an
ASSURED hereunder, but only with respect to the surrender of money, securities
and other tangible personal property in which such Employee has a legal or
equitable interest.
Computer System
8. Loss resulting directly from fraudulent:
a. entries of data into, or
b. changes of data elements or programs within, a Computer System, provided the
fraudulent entry or change causes:
(1) funds or other property to be transferred, paid or delivered,
(2) an account of the ASSURED or of its customer to be added, deleted, debited
or credited, or
(3) an unauthorized account or a fictitious account to be debited or credited.
Voice Initiated Funds Transfer Instruction
9. Loss resulting directly from Voice Initiated Funds Transfer Instruction
directed to the ASSURED authorizing the transfer of dividends or redemption
proceeds of Investment Company shares from a Customer's account, provided such
Voice Initiated Funds Transfer Instruction was:
a. received at the ASSURED'S offices by those Employees of the ASSURED
specifically authorized to receive the Voice Initiated Funds Transfer
Instruction,
b. made by a person purporting to be a Customer, and
c. made by said person for the purpose of causing the ASSURED or Customer to
sustain a loss or making an improper personal financial gain for such person or
any other person.
In order for coverage to apply under this INSURING CLAUSE, all Voice
Initiated Funds Transfer Instructions must be received and processed in
accordance with the Designated Procedures outlined in the APPLICATION furnished
to the COMPANY.
Uncollectible Items of Deposit
10. Loss resulting directly from the ASSURED having credited an account of a
customer, shareholder or subscriber on the faith of any Items of Deposit which
prove to be uncollectible, provided that the crediting of such account causes:
a. redemptions or withdrawals to be permitted,
b. shares to be issued, or
c. dividends to be paid,
from an account of an Investment Company.
In order for coverage to apply under this INSURING CLAUSE, the ASSURED must
hold Items of Deposit for the minimum number of days stated in the APPLICATION
before permitting any redemptions or withdrawals, issuing any shares or paying
any dividends with respect to such Items of Deposit.
Items of Deposit shall not be deemed uncollectible until the ASSURED'S
standard collection procedures have failed.
Audit Expense
11. Expense incurred by the ASSURED for that part of the
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cost of audits or examinations required by any governmental regulatory authority
or self-regulatory organization to be conducted by such authority, organization
or their appointee by reason of the discovery of loss sustained by the ASSURED
and covered by this Bond.
General Agreements
Additional Companies Included As Assured
A. If more than one corporation, or Investment Company, or any combination of
them is included as the ASSURED herein:
(1) The total liability of the COMPANY under this Bond for loss or losses
sustained by any one or more or all of them shall not exceed the limit for which
the COMPANY would be liable under this Bond if all such loss were sustained by
any one of them.
(2) Only the first named ASSURED shall be deemed to be the sole agent of the
others for all purposes under this Bond, including but not limited to the giving
or receiving of any notice or proof required to be given and for the purpose of
effecting or accepting any amendments to or termination of this Bond. The
COMPANY shall furnish each Investment Company with a copy of the Bond and with
any amendment thereto, together with a copy of each formal filing of claim by
any other named ASSURED and notification of the terms of the settlement of each
such claim prior to the execution of such settlement.
(3) The COMPANY shall not be responsible for the proper application of any
payment made hereunder to the first named ASSURED.
(4) Knowledge possessed or discovery made by any partner, director, trustee,
officer or supervisory employee of any ASSURED shall constitute knowledge or
discovery by all the ASSUREDS for the purposes of this Bond.
(5) If the first named ASSURED ceases for any reason to be covered under this
Bond, then the ASSURED next named on the APPLICATION shall thereafter be
considered as the first named ASSURED for the purposes of this Bond.
Representation Made By Assured
B. The ASSURED represents that all information it has furnished in the
APPLICATION for this Bond or otherwise is complete, true and correct. Such
APPLICATION and other information constitute part of this Bond.
The ASSURED must promptly notify the COMPANY of any change in any fact or
circumstance which materially affects the risk assumed by the COMPANY under this
Bond.
Any intentional misrepresentation, omission, concealment or incorrect
statement of a material fact, in the APPLICATION or otherwise, shall be grounds
for recision of this Bond.
Additional Offices Or Employees - Consolidation, Merger Or Purchase Or
Acquisition Of Assets Or Liabilities - Notice To Company
C. If the ASSURED, other than an Investment Company, while this Bond is in
force, merges or consolidates with, or purchases or acquires assets or
liabilities of another institution, the ASSURED shall not have the coverage
afforded under this Bond for loss which has:
(1) occurred or will occur on premises, or
(2) been caused or will be caused by an employee, or
(3) arisen or will arise out of the assets or liabilities,
of such institution, unless the ASSURED:
a. gives the COMPANY written notice of the proposed consolidation, merger or
purchase or acquisition of assets or
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liabilities prior to the proposed effective date of such action, and
b. obtains the written consent of the COMPANY to extend some or all of the
coverage provided by this Bond to such additional exposure, and
c. on obtaining such consent, pays to the COMPANY an additional premium.
Change Of Control - Notice To Company
D. When the ASSURED learns of a change in control (other than in an Investment
Company), as set forth in Section 2(a) (9) of the Investment Company Act of
1940, the ASSURED shall within sixty (60) days give written notice to the
COMPANY setting forth:
(1) the names of the transferors and transferees (or the names of the beneficial
owners if the voting securities are registered in another name),
(2) the total number of voting securities owned by the transferors and the
transferees (or the beneficial owners), both immediately before and after the
transfer, and
(3) the total number of outstanding voting securities.
Failure to give the required notice shall result in termination of coverage
for any loss involving a transferee, to be effective on the date of such change
in control.
Court Costs And Attorneys' Fees
E. The COMPANY will indemnify the ASSURED for court costs and reasonable
attorneys' fees incurred and paid by the ASSURED in defense, whether or not
successful, whether or not fully litigated on the merits and whether or not
settled, of any claim, suit or legal proceeding with respect to which the
ASSURED would be entitled to recovery under this Bond. However, with respect to
INSURING CLAUSE 1., this Section shall only apply in the event that:
(1) an Employee admits to being guilty of Larceny or Embezzlement,
(2) an Employee is adjudicated to be guilty of Larceny or Embezzlement, or
(3) in the absence of 1 or 2 above, an arbitration panel agrees, after a review
of an agreed statement of facts between the COMPANY and the ASSURED, that an
Employee would be found guilty of Larceny or Embezzlement if such Employee were
prosecuted.
The ASSURED shall promptly give notice to the COMPANY of any such suit or
legal proceeding and at the request of the COMPANY shall furnish copies of all
pleadings and pertinent papers to the COMPANY. The COMPANY may, at its sole
option, elect to conduct the defense of all or part of such legal proceeding.
The defense by the COMPANY shall be in the name of the ASSURED through attorneys
selected by the COMPANY. The ASSURED shall provide all reasonable information
and assistance as required by the COMPANY for such defense.
If the COMPANY declines to defend the ASSURED, no settlement without the
prior written consent of the COMPANY nor judgment against the ASSURED shall
determine the existence, extent or amount of coverage under this Bond.
If the amount demanded in any such suit or legal proceeding is within the
DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court costs
and attorney's fees incurred in defending all or part of such suit or legal
proceeding.
If the amount demanded in any such suit or legal proceeding is in excess of
the LIMIT OF LIABILITY stated in ITEM
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2. of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees incurred in defending all or part
of such suit or legal proceedings is limited to the proportion of such court
costs and attorney's fees incurred that the LIMIT OF LIABILITY stated in ITEM 2.
of the DECLARATIONS for the applicable INSURING CLAUSE bears to the total of the
amount demanded in such suit or legal proceeding.
If the amount demanded is any such suit or legal proceeding is in excess of
the DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM
2. of the DECLARATIONS for the applicable INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees incurred in defending all or part
of such suit or legal proceedings shall be limited to the proportion of such
court costs or attorney's fees that the amount demanded that would be payable
under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total
amount demanded.
Amounts paid by the COMPANY for court costs and attorneys' fees shall be in
addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
Conditions And Limitations
Definitions
1. As used in this Bond:
a. Computer System means a computer and all input, output, processing, storage,
off-line media libraries, and communication facilities which are connected to
the computer and which are under the control and supervision of the operating
system(s) or application(s) software used by the ASSURED.
b. Counterfeit means an imitation of an actual valid original which is intended
to deceive and be taken as the original.
c. Custodian means the institution designated by an Investment Company to
maintain possession and control of its assets.
d. Customer means an individual, corporate, partnership, trust customer,
shareholder or subscriber of an Investment Company which has a written agreement
with the ASSURED for Voice Initiated Funds Transfer Instruction.
e. Employee means:
(1) an officer of the ASSURED,
(2) a natural person while in the regular service of the ASSURED at any of the
ASSURED'S premises and compensated directly by the ASSURED through its payroll
system and subject to the United States Internal Revenue Service Form W-2 or
equivalent income reporting plans of other countries, and whom the ASSURED has
the right to control and direct both as to the result to be accomplished and
details and means by which such result is accomplished in the performance of
such service,
(3) a guest student pursuing studies or performing duties in any of the
ASSURED'S premises,
(4) an attorney retained by the ASSURED and an employee of such attorney while
either is performing legal services for the ASSURED,
(5) a natural person provided by an employment contractor to perform employee
duties for the ASSURED under the ASSURED'S supervision at any of the ASSURED'S
premises,
(6) an employee of an institution merged or consolidated with the ASSURED prior
to the effective date of this Bond,
(7) a director or trustee of the ASSURED, but only while performing acts within
the scope of the customary and usual duties of any officer or other employee of
the ASSURED or while
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acting as a member of any committee duly elected or appointed to examine or
audit or have custody of or access to Property of the ASSURED, or
(8) each natural person, partnership or corporation authorized by written
agreement with the ASSURED to perform services as electronic data processor of
checks or other accounting records related to such checks but only while such
person, partnership or corporation is actually performing such services and not:
a. creating, preparing, modifying or maintaining the ASSURED'S computer software
or programs, or
b. acting as transfer agent or in any other agency capacity in issuing checks,
drafts or securities for the ASSURED,
(9) any partner, officer or employee of an investment advisor, an underwriter
(distributor), a transfer agent or shareholder accounting recordkeeper, or an
administrator, for an Investment Company while performing acts coming within the
scope of the customary and usual duties of an officer or employee of an
Investment Company or acting as a member of any committee duly elected or
appointed to examine, audit or have custody of or access to Property of an
Investment Company.
The term Employee shall not include any partner, officer or employee of a
transfer agent, shareholder accounting recordkeeper or administrator:
a. which is not an "affiliated person" (as defined in Section 2(a) of the
Investment Company Act of 1940) of an Investment Company or of the investment
advisor or underwriter (distributor) of such Investment Company, or
b. which is a "bank" (as defined in Section 2(a) of the Investment Company Act
of 1940).
This Bond does not afford coverage in favor of the employers of persons as
set forth in e. (4), (5) and (8) above, and upon payment to the ASSURED by the
COMPANY resulting directly from Larceny or Embezzlement committed by any of the
partners, officers or employees of such employers, whether acting alone or in
collusion with others, an assignment of such of the ASSURED'S rights and causes
of action as it may have against such employers by reason of such acts so
committed shall, to the extent of such payment, be given by the ASSURED to the
COMPANY, and the ASSURED shall execute all papers necessary to secure to the
COMPANY the rights provided for herein.
Each employer of persons as set forth in e.(4), (5) and (8) above and the
partners, officers and other employees of such employers shall collectively be
deemed to be one person for all the purposes of this Bond; excepting, however,
the fifth paragraph of Section 13.
Independent contractors not specified in e.(4), (5) or (8) above,
intermediaries, agents, brokers or other representatives of the same general
character shall not be considered Employees.
f. Forgery means the signing of the name of another natural person with the
intent to deceive but does not mean a signature which consists in whole or in
part of one's own name, with or without authority, in any capacity for any
purpose.
g. Investment Company means any investment company registered under the
Investment Company Act of 1940 and listed under the NAME OF ASSURED on the
DECLARATIONS.
h. Items of Deposit means one or more checks or drafts drawn upon a financial
institution in the United States of America.
i. Larceny or Embezzlement means larceny or embezzlement as defined in Section
37 of the Investment Company Act of 1940.
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j. Property means money, revenue and other stamps; securities; including any
note, stock, treasury stock, bond, debenture, evidence of indebtedness,
certificate of deposit, certificate of interest or participation in any
profit-sharing agreement, collateral trust certificate, preorganization
certificate or subscription, transferable share, investment contract, voting
trust certificate, certificate of deposit for a security, fractional undivided
interest in oil, gas, or other mineral rights, any interest or instruments
commonly known as a security under the Investment Company Act of 1940, any other
certificate of interest or participation in, temporary or interim certificate
for, receipt for, guarantee of, or warrant or right to subscribe to or purchase
any of the foregoing; bills of exchange; acceptances; checks; withdrawal orders;
money orders; travelers' letters of credit; bills of lading; abstracts of title;
insurance policies, deeds, mortgages on real estate and/or upon chattels and
interests therein; assignments of such policies, deeds or mortgages; other
valuable papers, including books of accounts and other records used by the
ASSURED in the conduct of its business (but excluding all electronic data
processing records); and, all other instruments similar to or in the nature of
the foregoing in which the ASSURED acquired an interest at the time of the
ASSURED'S consolidation or merger with, or purchase of the principal assets of,
a predecessor or which are held by the ASSURED for any purpose or in any
capacity and whether so held gratuitously or not and whether or not the ASSURED
is liable therefor.
k. Relative means the spouse of an Employee or partner of the ASSURED and any
unmarried child supported wholly by, or living in the home of, such Employee or
partner and being related to them by blood, marriage or legal guardianship.
l. Securities, documents or other written instruments means original (including
original counterparts) negotiable or non-negotiable instruments, or assignments
thereof, which in and of themselves represent an equitable interest, ownership,
or debt and which are in the ordinary course of business transferable by
delivery of such instruments with any necessary endorsements or assignments.
m. Subsidiary means any organization that, at the inception date of this Bond,
is named in the APPLICATION or is created during the BOND PERIOD and of which
more than fifty percent (50%) of the outstanding securities or voting rights
representing the present right to vote for election of directors is owned or
controlled by the ASSURED either directly or through one or more of its
subsidiaries.
n. Transportation Company means any organization which provides its own or its
leased vehicles for transportation or which provides freight forwarding or air
express services.
o. Voice Initiated Election means any election concerning dividend options
available to Investment Company shareholders or subscribers which is requested
by voice over the telephone.
p. Voice Initiated Redemption means any redemption of shares issued by an
Investment Company which is requested by voice over the telephone.
q. Voice Initiated Funds Transfer Instruction means any Voice Initiated
Redemption or Voice Initiated Election.
For the purposes of these definitions, the singular includes the plural and
the plural includes the singular, unless otherwise indicated.
General Exclusions - Applicable to All Insuring Clauses
2. This bond does not directly or indirectly cover:
a. loss not reported to the COMPANY in writing within
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sixty (60) days after termination of this Bond as an entirety;
b. loss due to riot or civil commotion outside the United States of America and
Canada, or any loss due to military, naval or usurped power, war or
insurrection. This Section 2.b., however, shall not apply to loss which occurs
in transit in the circumstances recited in INSURING CLAUSE 3., provided that
when such transit was initiated there was no knowledge on the part of any person
acting for the ASSURED of such riot, civil commotion, military, naval or usurped
power, war or insurrection;
c. loss resulting from the effects of nuclear fission or fusion or
radioactivity;
d. loss of potential income including, but not limited to, interest and
dividends not realized by the ASSURED or by any customer of the ASSURED;
e. damages of any type for which the ASSURED is legally liable, except
compensatory damages, but not multiples thereof, arising from a loss covered
under this Bond;
f. costs, fees and expenses incurred by the ASSURED in establishing the
existence of or amount of loss under this Bond, except to the extent covered
under INSURING CLAUSE 11.;
g. loss resulting from indirect or consequential loss of any nature;
h. loss resulting from dishonest acts by any member of the Board of Directors or
Board of Trustees of the ASSURED who is not an Employee, acting alone or in
collusion with others;
i. loss, or that part of any loss, resulting solely from any violation by the
ASSURED or by any Employee:
(1) of any law regulating:
a. the issuance, purchase or sale of securities,
b. securities transactions on security or commodity exchanges or the over the
counter market,
c. investment companies,
d. investment advisors, or
(2) of any rule or regulation made pursuant to any such law; or
j. loss of confidential information, material or data;
k. loss resulting from voice requests or instructions received over the
telephone, provided however, this Section 2.k. shall not apply to INSURING
CLAUSE 7. or 9.
Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clause
1.
3. This Bond does not directly or indirectly cover:
a. loss caused by an Employee, provided, however, this Section 3.a. shall not
apply to loss covered under INSURING CLAUSE 2. or 3. which results directly from
misplacement, mysterious unexplainable disappearance, or damage or destruction
of Property;
b. loss through the surrender of property away from premises of the ASSURED as a
result of a threat:
(1) to do bodily harm to any natural person, except loss of Property in transit
in the custody of any person acting as messenger of the ASSURED, provided that
when such transit was initiated there was no knowledge by the ASSURED of any
such threat, and provided further that this Section 3.b. shall not apply to
INSURING CLAUSE 7., or
(2) to do damage to the premises or Property of the ASSURED;
c. loss resulting from payments made or withdrawals from any account involving
erroneous credits to such account;
d. loss involving Items of Deposit which are not finally paid for any reason
provided however, that this Section 3.d. shall not apply to INSURING CLAUSE 10.;
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e. loss of property while in the mail;
f. loss resulting from the failure for any reason of a financial or depository
institution, its receiver or other liquidator to pay or deliver funds or other
Property to the ASSURED provided further that this Section 3.f. shall not apply
to loss of Property resulting directly from robbery, burglary, misplacement,
mysterious unexplainable disappearance, damage, destruction or removal from the
possession, custody or control of the ASSURED.
g. loss of Property while in the custody of a Transportation Company, provided
however, that this Section 3.g. shall not apply to INSURING CLAUSE 3.;
h. loss resulting from entries or changes made by a natural person with
authorized access to a Computer System who acts in good faith on instructions,
unless such instructions are given to that person by a software contractor or
its partner, officer, or employee authorized by the ASSURED to design, develop,
prepare, supply, service, write or implement programs for the ASSURED's Computer
System; or
i. loss resulting directly or indirectly from the input of data into a Computer
System terminal, either on the premises of the customer of the ASSURED or under
the control of such a customer, by a customer or other person who had authorized
access to the customer's authentication mechanism.
Specific Exclusions - Applicable To All Insuring Clauses Except Insuring Clauses
1., 4., And 5.
4. This bond does not directly or indirectly cover:
a. loss resulting from the complete or partial non-payment of or default on any
loan whether such loan was procured in good faith or through trick, artifice,
fraud or false pretenses; provided, however, this Section 4.a. shall not apply
to INSURING CLAUSE 8.;
b. loss resulting from forgery or any alteration;
c. loss involving a counterfeit provided, however, this Section 4.c. shall not
apply to INSURING CLAUSE 5. or 6.
Limit Of Liability/Non-Reduction And Non-Accumulation Of Liability
5. At all times prior to termination of this Bond, this Bond shall continue in
force for the limit stated in the applicable sections of ITEM 2. of the
DECLARATIONS, notwithstanding any previous loss for which the COMPANY may have
paid or be liable to pay under this Bond provided, however, that the liability
of the COMPANY under this Bond with respect to all loss resulting from:
a. any one act of burglary, robbery or hold-up, or attempt thereat, in which no
Employee is concerned or implicated, or
b. any one unintentional or negligent act on the part of any one person
resulting in damage to or destruction or misplacement of Property, or
c. all acts, other than those specified in a. above, of any one person, or
d. any one casualty or event other than those specified in a., b., or c. above,
shall be deemed to be one loss and shall be limited to the applicable LIMIT OF
LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the
total amount of such loss or losses and shall not be cumulative in amounts from
year to year or from period to period.
All acts, as specified in c. above, of any one person which
i. directly or indirectly aid in any way wrongful acts of any other person or
persons, or
Page 11
ii. permit the continuation of wrongful acts of any other person or persons
whether such acts are committed with or without the knowledge of the wrongful
acts of the person so aided, and whether such acts are committed with or without
the intent to aid such other person, shall be deemed to be one loss with the
wrongful acts of all persons so aided.
Discovery
6. This Bond applies only to loss first discovered by an officer of the ASSURED
during the BOND PERIOD. Discovery occurs at the earlier of an officer of the
ASSURED being aware of:
a. facts which may subsequently result in a loss of a type covered by this Bond,
or
b. an actual or potential claim in which it is alleged that the ASSURED is
liable to a third party, regardless of when the act or acts causing or
contributing to such loss occurred, even though the amount of loss does not
exceed the applicable DEDUCTIBLE AMOUNT, or the exact amount or details of loss
may not then be known.
Notice To Company - Proof - Legal Proceedings Against Company
7. a. The ASSURED shall give the COMPANY notice thereof at the earliest
practicable moment, not to exceed sixty (60) days after discovery of loss, in an
amount that is in excess of 50% of the applicable DEDUCTIBLE AMOUNT, as stated
in ITEM 2. of the DECLARATIONS.
b. The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, with
full particulars within six (6) months after such discovery.
c. Securities listed in a proof of loss shall be identified by certificate or
bond numbers, if issued with them.
d. Legal proceedings for the recovery of any loss under this Bond shall not be
brought prior to the expiration of sixty (60) days after the proof of loss is
filed with the COMPANY or after the expiration of twenty-four (24) months from
the discovery of such loss.
e. This Bond affords coverage only in favor of the ASSURED. No claim, suit,
action or legal proceedings shall be brought under this Bond by anyone other
than the ASSURED.
f. Proof of loss involving Voice Initiated Funds Transfer Instruction shall
include electronic recordings of such instructions.
Deductible Amount
8. The COMPANY shall not be liable under any INSURING CLAUSES of this Bond on
account of loss unless the amount of such loss, after deducting the net amount
of all reimbursement and/or recovery obtained or made by the ASSURED, other than
from any Bond or policy of insurance issued by an insurance company and covering
such loss, or by the COMPANY on account thereof prior to payment by the COMPANY
of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in ITEM 3. of the
DECLARATIONS, and then for such excess only, but in no event for more than the
applicable LIMITS OF LIABILITY stated in ITEM 2. of the DECLARATIONS.
There shall be no deductible applicable to any loss under INSURING CLAUSE
1. sustained by any Investment Company.
Valuation
9. BOOKS OF ACCOUNT OR OTHER RECORDS
The value of any loss of Property consisting of books of account or other
records used by the ASSURED in the conduct of
Paghe 12
its business shall be the amount paid by the ASSURED for blank books, blank
pages, or other materials which replace the lost books of account or other
records, plus the cost of labor paid by the ASSURED for the actual transcription
or copying of data to reproduce such books of account or other records.
The value of any loss of Property other than books of account or other
records used by the ASSURED in the conduct of its business, for which a claim is
made shall be determined by the average market value of such Property on the
business day immediately preceding discovery of such loss provided, however,
that the value of any Property replaced by the ASSURED with the consent of the
COMPANY and prior to the settlement of any claim for such Property shall be the
actual market value at the time of replacement.
In the case of a loss of interim certificates, warrants, rights or other
securities, the production of which is necessary to the exercise of
subscription, conversion, redemption or deposit privileges, the value of them
shall be the market value of such privileges immediately preceding their
expiration if said loss is not discovered until after their expiration. If no
market price is quoted for such Property or for such privileges, the value shall
be fixed by agreement between the parties.
OTHER PROPERTY
The value of any loss of Property, other than as stated above, shall be the
actual cash value or the cost of repairing or replacing such Property with
Property of like quality and value, whichever is less.
Securities Settlement
10. In the event of a loss of securities covered under this Bond, the COMPANY
may, at its sole discretion, purchase replacement securities, tender the value
of the securities in money, or issue its indemnity to effect replacement
securities.
The indemnity required from the ASSURED under the terms of this Section
against all loss, cost or expense arising from the replacement of securities by
the COMPANY'S indemnity shall be:
a. for securities having a value less than or equal to the applicable DEDUCTIBLE
AMOUNT - one hundred (100%) percent;
b. for securities having a value in excess of the DEDUCTIBLE AMOUNT but within
the applicable LIMIT OF LIABILITY - the percentage that the DEDUCTIBLE AMOUNT
bears to the value of the securities;
c. for securities having a value greater than the applicable LIMIT OF LIABILITY
- the percentage that the DEDUCTIBLE AMOUNT and portion in excess of the
applicable LIMIT OF LIABILITY bears to the value of the securities.
The value referred to in Section 10.a., b., and c. is the value in
accordance with Section 9, VALUATION, regardless of the value of such securities
at the time the loss under the COMPANY'S indemnity is sustained.
The COMPANY is not required to issue its indemnity for any portion of a
loss of securities which is not covered by this Bond; however, the COMPANY may
do so as a courtesy to the ASSURED and at its sole discretion.
The ASSURED shall pay the proportion of the Company's premium charge for
the Company's indemnity as set forth in Section 10.a., b., and c. No portion of
the LIMIT OF LIABILITY shall be used as payment of premium for any indemnity
purchased by the ASSURED to obtain replacement securities.
Subrogation - Assignment - Recovery
Page 13
11. In the event of a payment under this Bond, the COMPANY shall be subrogated
to all of the ASSURED'S rights of recovery against any person or entity to the
extent of such payment. On request, the ASSURED shall deliver to the COMPANY an
assignment of the ASSURED'S rights, title and interest and causes of action
against any person or entity to the extent of such payment.
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be
applied net of the expense of such recovery in the following order:
a. first, to the satisfaction of the ASSURED'S loss which would otherwise have
been paid but for the fact that it is in excess of the applicable LIMIT OF
LIABILITY,
b. second, to the COMPANY in satisfaction of amounts paid in settlement of the
ASSURED'S claim,
c. third, to the ASSURED in satisfaction of the applicable DEDUCTIBLE AMOUNT,
and
d. fourth, to the ASSURED in satisfaction of any loss suffered by the ASSURED
which was not covered under this Bond.
Recovery from reinsurance or indemnity of the COMPANY shall not be deemed a
recovery under this section.
Cooperation Of Assured
12. At the COMPANY'S request and at reasonable times and
places designated by the COMPANY, the ASSURED shall:
a. submit to examination by the COMPANY and subscribe to the same under oath,
b. produce for the COMPANY'S examination all pertinent records, and
c. cooperate with the COMPANY in all matters pertaining to the loss.
The ASSURED shall execute all papers and render assistance to secure to the
COMPANY the rights and causes of action provided for under this Bond. The
ASSURED shall do nothing after loss to prejudice such rights or causes of
action.
Termination
13. If the Bond is for a sole ASSURED, it shall not be terminated unless written
notice shall have been given by the acting party to the affected party and to
the Securities and Exchange Commission, Washington, D.C., not less than sixty
(60) days prior to the effective date of such termination.
If the Bond is for a joint ASSURED, it shall not be terminated unless
written notice shall have been given by the acting party to the affected party,
and by the COMPANY to all ASSURED Investment Companies and to the Securities and
Exchange Commission, Washington, D.C., not less than sixty (60) days prior to
the effective date of such termination.
This Bond will terminate as to any one ASSURED, other than an Investment
Company:
a. immediately on the taking over of such ASSURED by a receiver or other
liquidator or by State or Federal officials, or
b. immediately on the filing of a petition under any State or Federal statute
relative to bankruptcy or reorganization of the ASSURED, or assignment for the
benefit of creditors of the ASSURED, or
c. immediately upon such ASSURED ceasing to exist, whether through merger into
another entity, disposition of all of its assets or otherwise.
The COMPANY shall refund the unearned premium computed at short rates in
accordance with the standard short rate cancellation tables if terminated by the
ASSURED or pro rata if terminated for any other reason.
Page 14
If any partner, director, trustee, or officer or supervisory employee of an
ASSURED not acting in collusion with an Employee learns of any dishonest act
committed by such Employee at any time, whether in the employment of the ASSURED
or otherwise, whether or not such act is of the type covered under this Bond,
and whether against the ASSURED or any other person or entity, the ASSURED:
a. shall immediately remove such Employee from a position that would enable such
Employee to cause the ASSURED to suffer a loss covered by this Bond; and
b. within forty-eight (48) hours of learning that an Employee has committed any
dishonest act, shall notify the COMPANY, of such action and provide full
particulars of such dishonest act.
The COMPANY may terminate coverage as respects any Employee sixty (60) days
after written notice is received by each ASSURED Investment Company and the
Securities and Exchange Commission, Washington, D.C. of its desire to terminate
this Bond as to such Employee.
Other Insurance
14. Coverage under this Bond shall apply only as excess over any valid and
collectible insurance, indemnity or suretyship obtained by or on behalf of:
a. the ASSURED,
b. a Transportation Company, or
c. another entity on whose premises the loss occurred or which employed the
person causing the loss or engaged the messenger conveying the Property
involved.
Conformity
15. If any limitation within this Bond is prohibited by any law controlling this
Bond's construction, such limitation shall be deemed to be amended so as to
equal the minimum period of limitation provided by such law.
Change or Modification
16. This Bond or any instrument amending or affecting this Bond may not be
changed or modified orally. No change in or modification of this Bond shall be
effective except when made by written endorsement to this Bond signed by an
authorized representative of the COMPANY.
If this Bond is for a sole ASSURED, no change or modification which would
adversely affect the rights of the ASSURED shall be effective prior to sixty
(60) days after written notice has been furnished to the Securities and Exchange
Commission, Washington, D.C., by the acting party.
If this Bond is for a joint ASSURED, no charge or modification which would
adversely affect the rights of the ASSURED shall be effective prior to sixty
(60) days after written notice has been furnished to all insured Investment
Companies and to the Securities and Exchange Commission, Washington, D.C., by
the COMPANY.
Page 15
FEDERAL INSURANCE COMPANY
Endorsement No.: 1
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
DELETING VALUATION-OTHER PROPERTY ENDORSEMENT
It is agreed that this Bond is amended by deleting in its entirety the paragraph
titled Other Property in Section 9., Valuation.
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 16
FEDERAL INSURANCE COMPANY
Endorsement No: 2
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
ARKANSAS NOTIFICATION ENDORSEMENT
It is agreed that this Bond is amended by adding to Section 13., Termination,
the following:
"No cancellation or termination of this Bond as an entirety, whether by or at
the request of the ASSURED or by the COMPANY, shall take effect prior to the
expiration of thirty (30) days after written notice of such cancellation or
termination has been filed with the Arkansas Securities Commissioner, Arkansas
Securities Division, Heritage West Building, 3rd Floor, 201 East Markham, Little
Rock, Arkansas 72201 unless an earlier date of such cancellation or termination
is approved by said Arkansas Securities Department, State of Arkansas."
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 17
FEDERAL INSURANCE COMPANY
Endorsement No.: 3
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
AMENDED ACQUISITION ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding to General Agreements, Section C., Additional Offices Or
Employees-Consolidation, Merger Or Purchase Or Acquisition Of Assets Or
Liabilities-Notice To Company, the following:
If the ASSURED, other than an Investment Company, while this Bond is in force,
newly creates any investment company registered under the Investment Company Act
of 1940, the ASSURED shall not have the coverage afforded under this Bond for
such newly created investment company unless the ASSURED: (a) gives the COMPANY
written notice of such creation, not less than fifteen (15) days after the
Interim Reporting Period, of each newly created investment company registered
under the Investment Company Act of 1940 to be insured hereunder; (b) provides
any other information as required by the COMPANY; and (c) pays the COMPANY any
additional premium required for any newly created investment company registered
under the Investment Company Act of 1940 to be insured hereunder.
2. By adding to Conditions and Limitations, Section 1., Definitions, the
following:
r. Interim Reporting Period means the period from 10/01/06 to 04/01/07, and each
180 day period thereafter until the expiration of the BOND PERIOD.
3. This endorsement shall not modify or change the applicable LIMITS OF
LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond irrespective of the
total number of newly created investment companies registered under the
Investment Company Act of 1940 and reported to the COMPANY in accordance with
the terms and conditions of this endorsement.
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 18
FEDERAL INSURANCE COMPANY
Endorsement No: 4
Bond Number: 81905981
NAME OF ASSURED ING FAMILY OF FUNDS
NAME OF ASSURED ENDORSEMENT
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as
follows:
ING FAMILY OF FUNDS
ING CORPORATE LEADERS TRUST
ING Corporate Leaders Trust Fund
ING EQUITY TRUST
ING Convertible Fund
ING Disciplined LargeCap Fund
ING Financial Services Fund
ING Fundamental Research Fund
ING LargeCap Growth Fund
ING LargeCap Value Fund
ING MidCap Opportunities Fund
ING MidCap Value Choice Fund
ING MidCap Value Fund
ING Opportunistic LargeCap Fund
ING Principal Protection Fund I
ING Principal Protection Fund II
ING Principal Protection Fund III
ING Principal Protection Fund IV
ING Principal Protection Fund V
ING Principal Protection Fund VI
ING Principal Protection Fund VII
ING Principal Protection Fund VIII
ING Principal Protection Fund IX
ING Principal Protection Fund X
ING Principal Protection Fund XI
ING Principal Protection Fund XII
ING Real Estate Fund
ING SmallCap Opportunities Fund
ING SmallCap Value Choice Fund
ING SmallCap Value Fund
ING FUNDS TRUST
ING Classic Money Market Fund
ING GNMA Income Fund
ING High Yield Bond Fund
ING Institutional Prime Money Market Fund
ING Intermediate Bond Fund
ING National Tax-Exempt Bond Fund
ING MUTUAL FUNDS
ING Diversified International Fund
ING Emerging Countries Fund
ING Emerging Markets Fixed Income Fund
ING Foreign Fund
ING Global Bond Fund
ING Global Equity Dividend Fund
ING Global Real Estate Fund
ING Global Value Choice Fund
ING Greater China Fund
ING Index Plus International Equity Fund
ING International Capital Appreciation Fund
ING International Real Estate Fund
ING International Value Choice Fund
ING International Fund
ING International SmallCap Growth Fund
ING Precious Metals Fund
ING Russia Fund
ING MAYFLOWER TRUST
Page 19
ING International Value Fund
ING INVESTMENT FUNDS, INC.
ING MagnaCap Fund
ING PRIME RATE TRUST
ING Prime Rate Trust
ING SENIOR INCOME FUND
ING Senior Income Fund
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING Global Equity Dividend and Premium Opportunity Fund
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING Global Advantage and Premium Opportunity Fund
ING VP NATURAL RESOURCES TRUST
ING VP Natural Resources Trust
ING VARIABLE INSURANCE TRUST
ING VP Global Equity Dividend Portfolio
ING GET U.S. Core Portfolio - Series 1
ING GET U.S. Core Portfolio - Series 2
ING GET U.S. Core Portfolio - Series 3
ING GET U.S. Core Portfolio - Series 4
ING GET U.S. Core Portfolio - Series 5
ING GET U.S. Core Portfolio - Series 6
ING GET U.S. Core Portfolio - Series 7
ING GET U.S. Core Portfolio - Series 8
ING GET U.S. Core Portfolio - Series 9
ING GET U.S. Core Portfolio - Series 10
ING GET U.S. Core Portfolio - Series 11
ING GET U.S. Core Portfolio - Series 12
ING GET U.S. Core Portfolio - Series 13
ING VARIABLE PRODUCTS TRUST
ING VP Financial Services Portfolio
ING VP High Yield Bond Portfolio
ING VP International Value Portfolio
ING VP LargeCap Growth Portfolio
ING VP MidCap Opportunities Portfolio
ING VP Real Estate Portfolio
ING VP SmallCap Opportunities Portfolio
ING INVESTORS TRUST
ING AllianceBernstein Mid Cap Growth Portfolio
ING American Funds Growth-Income Portfolio
ING American Funds Growth Portfolio
ING American Funds International Portfolio
ING Capital Guardian Small/Mid Cap Portfolio
ING Capital Guardian U.S. Equities Portfolio
ING Disciplined Small Cap Value Portfolio
ING Eagle Asset Capital Appreciation Portfolio
ING EquitiesPlus Portfolio
ING Evergreen Health Sciences Portfolio
ING Evergreen Omega Portfolio
ING FMR Diversified Mid Cap Portfolio
ING FMR Earnings Growth Portfolio
ING FMR Mid Cap Growth Portfolio
ING Franklin Income Fund
ING Global Real Estate Portfolio
ING Global Resources Portfolio
Page 20
ING Global Technology Portfolio
ING International Portfolio
ING Janus Contrarian Portfolio
ING JPMorgan Emerging Markets Equity Portfolio
ING JPMorgan Small Cap Equity Portfolio
ING JPMorgan Value Opportunities Portfolio
ING Julius Bear Foreign Portfolio
ING Legg Mason All Cap Portfolio
ING Legg Mason Value Portfolio
ING Lifestyle Aggressive Growth Portfolio
ING Lifestyle Growth Portfolio
ING Lifestyle Moderate Growth Portfolio
ING Lifestyle Moderate Portfolio
ING Limited Maturity Bond Portfolio
ING Liquid Assets Portfolio
ING Lord Abbett Affiliated Portfolio
ING MarketPro Portfolio
ING MarketStyle Growth Portfolio
ING MarketStyle Moderate Growth Portfolio
ING MarketStyle Moderate Portfolio
ING Marsico Growth Portfolio
ING Marsico International Opportunities Portfolio
ING Mercury Large Cap Growth Portfolio
ING Mercury Large Cap Value Portfolio
ING MFS Total Return Portfolio
ING MFS Utilities Portfolio
ING Oppenheimer Main Street Portfolio
ING PIMCO Core Bond Portfolio
ING PIMCO High Yield Portfolio
ING Pioneer Fund Portfolio
ING Pioneer Mid Cap Value Portfolio
ING Stock Index Portfolio
ING T. Rowe Price Capital Appreciation Portfolio
ING T. Rowe Price Equity Income Portfolio
ING Templeton Global Growth Portfolio
ING UBS U.S. Allocation Portfolio
ING Van Kampen Equity Growth Portfolio
ING Van Kampen Global Franchise Portfolio
ING Van Kampen Growth and Income Portfolio
ING Van Kampen Real Estate Portfolio
ING VP Index Plus International Equity Portfolio
ING Wells Fargo Mid Cap Disciplined Portfolio
ING Wells Fargo Small Cap Disciplined Portfolio
ING Partners, Inc.
ING American Century Large Company Value Portfolio
ING American Century Select Portfolio
ING American Century Small-Mid Cap Value Portfolio
ING Baron Asset Portfolio
ING Baron Small Cap Growth Portfolio
ING Columbia Small Cap Value Portfolio
ING Davis Venture Value Portfolio
ING Fidelity VIP Contrafund Portfolio
ING Fidelity VIP Equity-Income Portfolio
ING Fidelity VIP Growth Portfolio
ING Fidelity VIP Mid Cap Portfolio
ING Fundamental Research Portfolio
ING Goldman Sachs Capital Growth Portfolio
ING Goldman Sachs Structured Equity Portfolio
ING JPMorgan Fleming International Portfolio
ING JPMorgan Mid Cap Value Portfolio
ING Legg Mason Partners Aggressive Growth Portfolio
ING Legg Mason Partners Large Cap Growth Portfolio
Page 21
ING Lord Abbett U.S. Government Securities Portfolio
ING Neuberger Berman Partners Portfolio
ING Neuberger Berman Regency Portfolio
ING OpCap Balanced Value Portfolio
ING Oppenheimer Global Portfolio
ING Oppenheimer Strategic Income Portfolio
ING PIMCO Total Return Portfolio
ING Pioneer High Yield Portfolio
ING Solution 2015 Portfolio
ING Solution 2025 Portfolio
ING Solution 2035 Portfolio
ING Solution 2045 Portfolio
ING Solution Income Portfolio
ING T. Rowe Price Diversified Mid Cap Portfolio
ING T. Rowe Price Growth Equity Portfolio
ING Templeton Foreign Equity Portfolio
ING Thornburg Value Portfolio
ING UBS U.S. Large Cap Equity Portfolio
ING UBS U.S. Small Cap Growth Portfolio
ING Van Kampen Comstock Portfolio
ING Van Kampen Equity and Income Portfolio
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 22
FEDERAL INSURANCE COMPANY
Endorsement No: 5
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
PREMIUM ENDORSEMENT
It is agreed that:
1. The premium for this Bond for the period October 1, 2006 to October 1, 2007
is:
Premium: Eighty Thousand Dollars ($80,000)
2. It is further agreed that this premium is subject to change during this
period if amendments are made to this Bond at the request of the ASSURED.
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 23
FEDERAL INSURANCE COMPANY
Endorsement No: 6
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
GENERAL TERMINATION ENDORSEMENT
It is agreed that this Bond is amended by adding to Section 13., Termination,
the following:
No termination of this Bond as an entirety by the COMPANY shall take effect
prior to the expiration of ninety (90) days after written notice of such
termination has been mailed to:
Midwest Stock Exchange
Commissioner of Securities, Office of the Secretary of State, Securities
Division, 8th Floor,
Truman State Office Building, Jefferson City, Missouri 65101.
If the Bond as an entirety terminates based on the occurrence of any of the
events described in a., b., or c. of the third paragraph of this Section 13.,
the COMPANY shall endeavor to provide written notice as soon as practicable of
such termination to:
Midwest Stock Exchange
Commissioner of Securities, Office of the Secretary of State, Securities
Division, 8th Floor,
Truman State Office Building, Jefferson City, Missouri 65101.
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 24
FEDERAL INSURANCE COMPANY
Endorsement No.: 7
Bond Number: 81905981
NAME OF ASSURED: ING FAMILY OF FUNDS
CLAIMS EXPENSE ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding the following INSURING CLAUSE:
12. Claims Expense
Reasonable expense incurred by the ASSURED, solely for independent firms or
individuals to determine the amount of loss where:
(1) the loss is covered under the Bond, and
(2) the loss is in excess of the applicable DEDUCTIBLE AMOUNT.
2. Under General Exclusions-Applicable To All Insuring Clauses, Section 2.f.
does not apply to loss covered under this INSURING CLAUSE.
This Endorsement applies to loss discovered after 12:01 a.m. on October 1, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 25
Effective date of
this endorsement: October 1, 2006 FEDERAL INSURANCE COMPANY
Endorsement No.: 8
To be attached to and form a part
of Bond Number: 81905981
Issued to: ING FAMILY OF FUNDS
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER
It is agreed that this insurance does not apply to the extent that trade or
economic sanctions or other laws or regulations prohibit the coverage provided
by this insurance.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: September 20, 2006
By /s/ Robert Hamburger
----------------------------------
Authorized Representative
Page 26
Chubb & Son, div. of Federal Insurance Company as manager of the member insurers
of the Chubb Group of Insurance Companies
POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(for policies with no terrorism exclusion or sublimit)
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002
(the "Act") effective November 26, 2002, this policy makes available to you
insurance for losses arising out of certain acts of international terrorism.
Terrorism is defined as any act certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United
States, to be an act of terrorism; to be a violent act or an act that is
dangerous to human life, property or infrastructure; to have resulted in damage
within the United States, or outside the United States in the case of an air
carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals acting on behalf of any foreign person
or foreign interest, as part of an effort to coerce the civilian population of
the United States or to influence the policy or affect the conduct of the United
States Government by coercion.
You should know that the insurance provided by your policy for losses caused by
acts of terrorism is partially reimbursed by the United States under the formula
set forth in the Act. Under this formula, the United States pays 90% of covered
terrorism losses that exceed the statutorily established deductible to be paid
by the insurance company providing the coverage. The portion of your policy's
annual premium that is attributable to insurance for such acts of terrorism is:
$ -0-.
If you have any questions about this notice, please contact your
agent or broker.
Page 27
Important Notice:
The SEC Requires Proof of Your Fidelity Insurance Policy
Your company is now required to file an electronic copy of your fidelity
insurance coverage (Chubb's ICAP Bond policy) to the Securities and Exchange
Commission (SEC), according to rules adopted by the SEC on June 12, 2006.
Chubb is in the process of providing your agent/broker with an electronic copy
of your insurance policy as well as instructions on how to submit this proof of
fidelity insurance coverage to the SEC. You can expect to receive this
information from your agent/broker shortly.
The electronic copy of your policy is provided by Chubb solely as a convenience
and does not affect the terms and conditions of coverage as set forth in the
paper policy you receive by mail. The terms and conditions of the policy mailed
to you, which are the same as those set forth in the electronic copy, constitute
the entire agreement between your company and Chubb.
If you have any questions, please contact your agent or broker.
Page 28
APPROVAL OF INVESTMENT COMPANY BLANKET BOND
INSURANCE POLICY RENEWAL
PROPOSED RESOLUTIONS
RESOLVED, that it is the determination of the Directors/Trustees, including
a majority of those Directors/Trustees who are not parties to the Investment
Company Blanket Bond insurance (the "17g-1 Bond") written by Chubb Group of
Insurance Companies, nor "interested persons" as defined by the Investment
Company Act of 1940 (the "1940 Act") of any such party, that the 17g-1 Bond
insuring each and all of the ING Funds (the "Funds") for covered acts and
omissions of their respective officers and Directors/Trustees and the officers
and employees of ING Investments, LLC, Directed Services, Inc., ING Life
Insurance and Annuity Company, and their affiliates, in accordance with the
requirements of Rule 17g-1 promulgated by the SEC under 17(g) of the 1940 Act,
is reasonable in form and amount after having given due consideration to all
relevant factors, including, but not limited to, the value of the aggregate
assets of each of the Funds to which any such covered person may have access,
the type and terms of the arrangements made for the custody and safekeeping of
such assets, the nature of the securities in each of the Fund's portfolios, the
number of other parties named as insured parties under the Bonds, and the nature
of the business activities of such other parties; and
FURTHER RESOLVED, that the terms of the 17g-1 Bond as presented at this
meeting, be, and hereby is, continued until October 1, 2007, for and on behalf
of each of the Funds, with such changes as the officers may deem necessary as a
result of negotiations with the Insurance Company, provided such changes are in
accord with the requirements of Rule 17g-1; and
FURTHER RESOLVED, that the Directors/Trustees, including a majority of
those Directors/Trustees who are not parties to the 17g-1 Bond nor "interested
persons" as defined in the 1940 Act of any such party, hereby approve the
continued payment by ING Investments, LLC, Directed Services, Inc., and ING Life
Insurance and Annuity Company for pro-rata share of each of the Funds, as
applicable, based on assets of the respective covered funds, of the projected
premium for coverage under the 17g-1 Bond, having given due consideration to all
relevant factors, including, but not limited to, the number of other parties
named as insured parties under the Bonds, the nature of the business activities
of such other parties, the amount of the Bonds, the amount of the projected
premium for the Bonds, the ratable allocation of the projected premium among all
the parties named
as insureds, and the extent to which the share of the projected premium
allocated to each of the Funds is less than the projected premium that any
individual Fund would have had to pay if it had provided and maintained a single
insured bond.
ING FUNDS SERVICES, LLC
FIDELITY BOND ANALYSIS
NOVEMBER 1, 2006
GROSS MINIMUM
ASSET SIZE BONDING
NAME OF FUND CLASSIFICATION REQUIREMENT
------------ ------------------------------ -----------
ING CORPORATE LEADERS TRUST $ 382,396,503 250,000,000 to 500,000,000 750,000
---------------
ING Corporate Leaders Trust Fund $ 382,396,503
ING EQUITY TRUST $ 3,514,178,121 3,500,000,000 to 4,000,000,000 2,300,000
---------------
ING Convertible Fund (Merged with Balanced 10/7/06) $ --
ING Disciplined LargeCap Fund $ 38,141,094
ING Financial Services Fund $ 306,461,861
ING Fundamental Research Fund $ 5,629,277
ING LargeCap Growth Fund $ 266,674,776
ING LargeCap Value Fund $ 102,965,925
ING MidCap Opportunities Fund $ 297,278,150
ING MidCap Value Choice Fund $ 126,796,299
ING MidCap Value Fund $ 86,764,384
ING Opportunistic LargeCap Fund $ 5,454,772
ING Index Plus LargeCap Equity Fund (Formerly PPF 1) $ 60,980,097
ING Principal Protection Fund II $ 212,421,232
ING Principal Protection Fund III $ 165,504,529
ING Principal Protection Fund IV $ 338,989,311
ING Principal Protection Fund V $ 273,787,999
ING Principal Protection Fund VI $ 244,247,305
ING Principal Protection Fund VII $ 120,067,584
ING Principal Protection Fund VIII $ 75,441,859
ING Principal Protection Fund IX $ 55,233,035
ING Principal Protection Fund X $ 46,117,093
ING Principal Protection Fund XI $ 30,895,440
ING Principal Protection Fund XII $ 15,417,681
ING Real Estate Fund $ 373,102,975
ING SmallCap Opportunities Fund $ 149,641,530
ING SmallCap Value Choice Fund $ 57,440,387
ING SmallCap Value Fund $ 58,723,526
ING FUNDS TRUST $ 2,859,740,149 2,500,000,000 to 3,000,000,000 1,900,000
---------------
ING Classic Money Market Fund $ 798,817,254
ING GNMA Income Fund $ 619,533,948
ING High Yield Bond Fund $ 170,183,918
ING Institutional Prime Money Market Fund $ 189,912,288
ING Intermediate Bond Fund $ 1,054,391,879
ING National Tax-Exempt Bond Fund $ 26,900,862
ING MUTUAL FUNDS $ 3,864,759,022 3,500,000,000 to 4,000,000,000 2,300,000
---------------
ING Diversified International Fund $ 262,260,387
ING Emerging Countries Fund $ 208,066,478
ING Emerging Markets Fixed Income Fund $ 26,757,841
ING Foreign Fund $ 473,916,650
ING Global Bond Fund $ 25,846,000
ING Global Equity Dividend Fund $ 230,636,599
ING Global Real Estate Fund $ 617,077,867
ING Global Value Choice Fund $ 105,913,578
ING Greater China Fund $ 27,729,167
ING Index Plus International Equity Fund $ 91,689,480
ING International Capital Appreciation Fund $ 50,961,688
ING International Real Estate Fund $ 89,791,911
ING International Value Choice Fund $ 62,392,565
ING International Fund $ 131,856,225
ING International SmallCap Fund $ 586,559,237
ING Global Natural Resources (Formerly Precious Metals) $ 121,262,296
ING Russia Fund $ 752,041,053
ING MAYFLOWER TRUST $ 4,846,498,393 over 4,000,000,000 2,500,000
---------------
ING International Value Fund $ 4,846,498,393
ING INVESTMENT FUNDS, INC. $ 366,787,855 250,000,000 to 500,000,000 750,000
---------------
ING MagnaCap Fund $ 366,787,855
ING PRIME RATE TRUST $ 1,888,110,052 1,500,000,000 to 2,000,000,000 1,500,000
---------------
ING Prime Rate Trust $ 1,888,110,052
ING SENIOR INCOME FUND $ 2,473,859,973 2,000,000,000 to 2,500,000,000 1,700,000
---------------
ING Senior Income Fund $ 2,473,859,973
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND $ 1,880,648,189 1,500,000,000 to 2,000,000,000 1,500,000
---------------
ING Global Equity Dividend and Premium Opportunity Fund $ 1,880,648,189
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND $ 374,370,709 250,000,000 to 500,000,000 750,000
---------------
ING Global Advantage and Premium Opportunity Fund $ 374,370,709
ING RISK MANANGED NATURUAL RESOURCES FUND $ 393,230,274 250,000,000 to 500,000,000 750,000
---------------
ING Risk Managed Natural Resources Fund $ 393,230,274
ING VP NATURAL RESOURCES TRUST $ 119,198,919 100,000,000 to 150,000,000 525,000
---------------
ING VP Natural Resources Trust $ 119,198,919
ING VARIABLE INSURANCE TRUST $ 895,593,601 750,000,000 to 1,000,000,000 1,000,000
---------------
ING VP Global Equity Dividend Portfolio $ 61,287,341
ING GET U.S. Core Portfolio - Series 1 $ 117,957,638
ING GET U.S. Core Portfolio - Series 2 $ 94,578,551
ING GET U.S. Core Portfolio - Series 3 $ 136,923,553
ING GET U.S. Core Portfolio - Series 4 $ 59,409,972
ING GET U.S. Core Portfolio - Series 5 $ 36,600,213
ING GET U.S. Core Portfolio - Series 6 $ 82,280,104
ING GET U.S. Core Portfolio - Series 7 $ 65,941,386
ING GET U.S. Core Portfolio - Series 8 $ 41,339,902
ING GET U.S. Core Portfolio - Series 9 $ 33,378,122
ING GET U.S. Core Portfolio - Series 10 $ 29,282,793
ING GET U.S. Core Portfolio - Series 11 $ 42,339,604
ING GET U.S. Core Portfolio - Series 12 $ 56,903,212
ING GET U.S. Core Portfolio - Series 13 $ 37,371,210
ING VARIABLE PRODUCTS TRUST $ 1,106,912,570 1,000,000,000 to 1,500,000,000 1,250,000
---------------
ING VP Financial Services Portfolio $ 96,174,877
ING VP High Yield Bond Portfolio $ 104,636,363
ING VP International Value Portfolio $ 423,543,213
ING VP LargeCap Growth Portfolio $ 2,118,253
ING VP MidCap Opportunities Portfolio $ 108,654,415
ING VP Real Estate Portfolio $ 165,382,748
ING VP SmallCap Opportunities Portfolio $ 206,402,701
ING INVESTORS TRUST $38,117,709,544 Over 4,000,000,000 2,500,000
---------------
ING AllianceBernstein Mid Cap Growth Portfolio $ 589,679,937
ING American Funds Growth -Income Portfolio $ 1,366,923,833
ING American Funds Growth Portfolio $ 1,949,724,960
ING American Funds International Portfolio $ 1,036,313,678
ING Capital Guardian Small/Mid Cap Portfolio $ 449,204,902
ING Capital Guardian U.S Equities Portfolio $ 586,808,185
ING Disciplined Small Cap Value Portfolio $ 57,186,680
ING Eagle Asset Capital Appreciation Portfolio $ 179,306,449
ING EquitiesPlus Portfolio $ 131,177,178
ING Evergreen Health Sciences Portfolio $ 202,602,261
ING Evergreen Omega Portfolio $ 200,677,599
ING FMR Diversified Mid Cap Portfolio $ 781,165,681
ING FMR Earnings Growth Portfolio $ 654,060,372
ING FMR Mid Cap Growth Portfolio $ 555,666,612
ING Franklin Income Fund $ 170,375,075
ING Global Real Estate Portfolio $ 97,948,248
ING Global Resources Portfolio $ 542,317,114
ING Global Technology Portfolio $ 86,016,432
ING International Portfolio $ 178,414,000
ING Janus Contrarian Portfolio $ 132,607,438
ING JPMorgan Emerging Markets Equity Portfolio $ 669,354,568
ING JPMorgan Small Cap Equity Portfolio $ 426,353,882
ING JPMorgan Value Opportunities Portfolio $ 312,938,888
ING Julius Baer Foreign Portfolio $ 1,471,999,950
ING Legg Mason All Cap Portfolio $ 392,571,598
ING Legg Mason Value Portfolio $ 825,005,521
ING Lifestyle Aggressive Growth Portfolio $ 1,083,095,605
ING Lifestyle Growth Portfolio $ 2,504,475,489
ING Lifestyle Moderate Growth Portfolio $ 2,014,402,642
ING Lifestyle Moderate Portfolio $ 868,717,115
ING Limited Maturity Bond Portfolio $ 405,751,936
ING Liquid Assets Portfolio $ 1,014,731,896
ING Lord Abbett Affiliated Portfolio $ 245,341,654
ING MarketPro Portfolio $ 34,615,693
ING MarketStyle Growth Portfolio $ 9,612,646
ING MarketStyle Moderate Growth Portfolio $ 8,987,364
ING MarketStyle Moderate Portfolio $ 2,327,287
ING Marsico Growth Portfolio $ 895,253,229
ING Marsico International Opportunities Portfolio $ 342,880,779
ING Mercury Large Cap Growth Portfolio $ 157,115,640
ING Mercury Large Cap Value Portfolio $ 115,390,691
ING MFS Total Return Portfolio $ 1,613,192,328
ING MFS Utilities Portfolio $ 266,131,796
ING Oppenheimer Main Street Portfolio $ 552,684,373
ING PIMCO Core Bond Portfolio $ 1,396,270,249
ING PIMCO High Yield Portfolio $ 831,512,835
ING Pioneer Fund Portfolio $ 123,947,187
ING Pioneer Mid Cap Value Portfolio $ 740,666,182
ING Stock Index Portfolio $ 422,181,752
ING T. Rowe Price Capital Appreciation Portfolio $ 2,997,089,834
ING T. Rowe Price Equity Income Portfolio $ 1,316,623,425
ING Templeton Global Growth Portfolio $ 455,346,706
ING UBS U.S. Allocation Portfolio $ 118,778,985
ING Van Kampen Equity Growth Portfolio $ 106,063,146
ING Van Kampen Global Franchise Portfolio $ 369,820,935
ING Van Kampen Growth and Income Portfolio $ 1,044,848,731
ING Van Kampen Real Estate Portfolio $ 1,226,743,328
ING VP Index Plus International Equity Portfolio $ 338,304,602
ING Wells Fargo Mid Cap Disciplined Portfolio $ 283,857,362
ING Wells Fargo Small Cap Disciplined Portfolio $ 164,545,081
ING PARTNERS, INC. $14,382,200,641 over 4,000,000,000 2,500,000
---------------
ING American Century Large Company Value Portfolio $ 101,310,984
ING American Century Select Portfolio $ 328,419,326
ING American Century Small-Mid Cap Value Portfolio $ 104,286,965
ING Baron Asset Portfolio $ 8,570,701
ING Baron Small Cap Growth Portfolio $ 442,077,803
ING Columbia Small Cap Value II Portfolio $ 68,426,728
ING Davis Venture Value Portfolio $ 177,445,464
ING Fidelity VIP Contrafund Portfolio $ 199,594,799
ING Fidelity VIP Equity-Income Portfolio $ 29,837,711
ING Fidelity VIP Growth Portfolio $ 16,620,304
ING Fidelity VIP Mid Cap Portfolio $ 32,787,672
ING Fundamental Research Portfolio $ 97,920,992
ING Goldman Sachs(R) Capital Growth Portfolio $ 38,264,211
ING Goldman Sachs(R) Structured Equity Portfolio $ 53,684,962
ING JPMorgan Fleming International Portfolio $ 1,034,014,241
ING JPMorgan Mid Cap Value Portfolio $ 226,649,871
ING Legg Mason Partners Aggressive Growth Portfolio $ 1,313,342,044
ING Legg Mason Partners Large Cap Growth Portfolio $ 45,536,529
ING Lord Abbett U.S. Government Securities Portfolio $ 53,595,008
ING Neuberger Berman Partners Portfolio $ 226,365,391
ING Neuberger Berman Regency Portfolio $ 10,824,648
ING OpCap Balanced Value Portfolio $ 86,531,740
ING Oppenheimer Global Portfolio $ 2,674,686,129
ING Oppenheimer Strategic Income Portfolio $ 412,158,940
ING PIMCO Total Return Portfolio $ 323,108,431
ING Pioneer High Yield Portfolio $ 117,081,232
ING Solution 2015 Portfolio $ 240,009,863
ING Solution 2025 Portfolio $ 343,907,718
ING Solution 2035 Portfolio $ 266,145,111
ING Solution 2045 Portfolio $ 133,773,982
ING Solution Income Portfolio $ 67,558,239
ING T. Rowe Price Diversified Mid Cap Portfolio $ 1,141,076,147
ING T. Rowe Price Growth Equity Portfolio $ 1,351,725,213
ING Templeton Foreign Equity Portfolio $ 35,700,511
ING Thornburg Value Portfolio $ 186,569,370
ING UBS U.S. Large Cap Equity Portfolio $ 372,412,006
ING UBS U.S. Small Cap Growth Portfolio $ 20,877,549
ING Van Kampen Comstock Portfolio $ 973,512,820
ING Van Kampen Equity and Income Portfolio $ 1,025,789,286
MINIMUM BOND REQUIREMENT 24,475,000
PRESENT COVERAGE 25,000,000
RESERVE 525,000
TOTAL ASSETS COVERED $77,466,194,515
ALLOCATION AGREEMENT
FIDELITY BOND
THIS AGREEMENT made as of this 24th day of May, 2002 by and among any of the
Funds listed on Schedule A and any separate classes thereof and all future
investment companies and any separate classes thereof (the "Funds"), which are
named insureds under a joint liability policy as described below and for which
ING Investments, LLC acts as investment manager are entered into under the
following circumstances:
A. Section 17(g) of the Investment Company Act of 1940, as amended ("the
1940 Act") provides that the Securities and Exchange Commission ("SEC") is
authorized to require that directors, officers and employees of registered
investment companies be covered under a liability, errors and omissions
insurance policy, and the SEC has promulgated rules and regulations dealing with
this subject ("Rule 17g-1");
B. The Funds are named as joint insureds under the terms of a joint
insurance policy ("Policy") which insures against illegal profit or gain,
intentional wrongful acts, libel, slander, defamation, ERISA claims, insider
trading, as well as other coverage as outlined in the Policy, by the directors,
officers and employees;
C. A majority of those members of the Board of Directors/Trustees of each
of the Funds, who are not "interested persons" as defined by Section 2(a)(19) of
the 1940 Act, have given due consideration to all factors relevant to the form,
amount and apportionment of premiums and recoveries under such Policy and the
Board of Directors/Trustees of each Fund has approved the term and amount of the
Policy, the portion of the premium payable by that party, and the manner in
which recovery on the Policy, if any, shall be shared by and among the parties
thereto; and
D. The Funds now desire to enter into the agreement required by Rule 17g-1
of the 1940 Act to establish the manner in which recovery under the Policy, if
any, shall be shared.
NOW, THEREFORE, IT IS HEREBY AGREED by and among the parties as follows:
1. Payment of Premiums.
Each Fund shall pay a portion of the premium due under the Policy
derived by multiplying the premium by a fraction, (i) the denominator of which
is the total net assets of all the Funds combined and (ii) the numerator of
which is the total net assets of each of the Funds individually. The net assets
of the classes are deemed to be represented by the net assets of their
respective funds. Each of the Funds agrees that the appropriateness of the
allocation of said premium will be determined no less often than annually. No
adjustment of the allocation of said premium will be implemented without
approval of the Boards of each of the Funds.
2. Allocation of Recoveries
(a) If more than one of the parties hereto is damaged in a single loss
for which recovery is received under the policy, each such party shall receive
that portion of the recovery which represents the loss sustained by that party,
unless the recovery is inadequate to fully indemnify such party sustaining loss.
(b) If the recovery is inadequate to fully indemnify each such party
sustaining a loss, the recovery shall be allocated among such parties as
follows:
(i) Each Party sustaining a loss shall be allocated an amount
equal to the lesser of its actual loss or the minimum amount of policy which
would be required to be maintained by such party under a single insured policy
(determined as of the time of loss) in accordance with the provisions of Rule
17g-1.
(ii) The remaining portion of the proceeds shall be allocated to
each party sustaining a loss not fully covered by the allocation under
subparagraph (i) in the proportion that each such party's last payment of
premium bears to the sum of the last such premium payments of all such parties.
If such allocation would result in any party which had sustained a loss
receiving a portion of the recovery in excess of the loss actually sustained,
such excess portion shall be allocated among the other parties whose losses
would not be fully indemnified. The allocation shall bear the same proportion as
each such party's last payment of premium bears to the sum of the last premium
payments of all parties entitled to receive a share of the excess. Any
allocation in excess of a loss actually sustained by any such party shall be
reallocated in the same manner.
2
3. Obligation to Maintain Minimum Coverage.
Each of the Funds represents and warrants to each of the other parties
hereto that the minimum amount of coverage required of it by Rule 17g-1 as of
the date hereof is as reflected in the schedule attached hereto. Each of the
Funds agrees that it will determine, no less than at the end of each calendar
quarter, the minimum amount of coverage which would be required of it by Rule
17g-1 if a determination with respect to the adequacy of the coverage were
currently being made. In the event that the total amount of the minimum coverage
thus determined exceeds the amount of coverage of the then effective policy, the
Boards of each of the Funds will be notified and will determine whether it is
necessary or appropriate to increase the total amount of coverage of the policy
to an amount not less than the total amount of such minimums, or to secure such
excess coverage for one or more of the parties hereto, which, when added to the
total coverage of the policy, will equal an amount of such minimums. Unless a
Fund elects to terminate this Agreement (pursuant to Paragraph 4) and its
participation in a joint-insured policy, each Fund agrees to pay its fair
portion of the new or additional premium (taking into account all of the then
existing circumstances).
4. Continuation and Termination. This Agreement shall become effective
on the date first written above, subject to the condition that the Fund's Board
of Directors/Trustees, including a majority of those Directors/Trustees who are
not interested persons (as such term is defined in the 1940 Act) of the Manager,
shall have approved this Agreement. This Agreement shall supersede all prior
agreements relating to an allocation of premium on any joint insured policy and
shall apply to the present liability policy coverage and any renewal or
replacement thereof. It shall continue until terminated by any party hereto upon
the giving of not less than sixty (60) days notice to the other parties hereto
in writing.
5. Amendments. No provision of this Agreement may be changed, waived,
discharged or terminated orally, but only by an instrument in writing signed by
the party against which enforcement of the change, waiver, discharge or
termination is sought. A written amendment of this Agreement is effective upon
the approval of the Board of Directors/Trustees and the Manager.
3
IN WITNESS WHEREOF, the parties hereto have caused these presents to be
duly executed by their duly authorized officers as of the date first above
written.
On Behalf of: All ING Funds Listed on Schedule A
By:
---------------------------------
Michael J. Roland
Executive Vice President
4
AMENDED SCHEDULE A
WITH RESPECT TO THE
ALLOCATION AGREEMENT - BLANKET BOND
ING EQUITY TRUST
ING Disciplined LargeCap Fund
ING Financial Services Fund
ING Fundamental Research Fund
ING Index Plus LargeCap Equity Fund
ING LargeCap Growth Fund
ING LargeCap Value Fund
ING MidCap Opportunities Fund
ING MidCap Value Choice Fund
ING MidCap Value Fund
ING Principal Protection Fund II
ING Principal Protection Fund III
ING Principal Protection Fund IV
ING Principal Protection Fund V
ING Principal Protection Fund VI
ING Principal Protection Fund VII
ING Principal Protection Fund VIII
ING Principal Protection Fund IX
ING Principal Protection Fund X
ING Principal Protection Fund XI
ING Principal Protection Fund XII
ING Real Estate Fund
ING SmallCap Opportunities Fund
ING SmallCap Value Choice Fund
ING SmallCap Value Fund
ING FUNDS TRUST
ING Classic Money Market Fund
ING GNMA Income Fund
ING High Yield Bond Fund
ING Institutional Prime Money Market Fund
ING Intermediate Bond Fund
ING National Tax-Exempt Bond Fund
ING GLOBAL ADVANTAGE AND PREMIUM OPPORTUNITY FUND
ING GLOBAL EQUITY DIVIDEND AND PREMIUM OPPORTUNITY FUND
ING INVESTMENT FUNDS, INC.
ING MagnaCap Fund
ING INVESTORS TRUST
ING AllianceBernstein Mid Cap Growth Portfolio(1)
ING American Funds Growth Portfolio
ING American Funds Growth-Income Portfolio
ING American Funds International Portfolio
ING Capital Guardian Small/Mid Cap Portfolio(1)
ING Capital Guardian U.S. Equities Portfolio(1)
ING Disciplined Small Cap Value Portfolio
ING Eagle Asset Capital Appreciation Portfolio(1)
ING EquitiesPlus Portfolio
ING Evergreen Health Sciences Portfolio(1)
ING Evergreen Omega Portfolio(1)
ING FMR(SM) Diversified Mid Cap Portfolio(1)
ING FMR(SM) Mid Cap Growth Portfolio(1)
ING FMR(SM) Earnings Growth Portfolio(1)
ING Franklin Income Portfolio(1)
ING Global Real Estate Portfolio
ING Global Resources Portfolio(1)
ING Global Technology Portfolio(1)
ING International Portfolio(1)
ING Janus Contrarian Portfolio(1)
ING JPMorgan Emerging Markets Equity Portfolio(1)
ING JPMorgan Small Cap Equity Portfolio(1)
ING JPMorgan Value Opportunities Portfolio(1)
ING Julius Baer Foreign Portfolio(1)
(1) Under the terms of the Management Agreement between ING Investors Trust and
Directed Services, Inc., the Fund is subject to a unified fee arrangement.
Accordingly, the portion of SCAS Fees allocated to the Fund under the
Agreement will be borne directly by Directed Services, Inc. as provided in
the Management Agreement.
1
ING Legg Mason All Cap Portfolio(1)
ING Legg Mason Value Portfolio(1)
ING LifeStyle Aggressive Growth Portfolio
ING LifeStyle Growth Portfolio
ING LifeStyle Moderate Growth Portfolio
ING LifeStyle Moderate Portfolio
ING Limited Maturity Bond Portfolio(1)
ING Liquid Assets Portfolio(1)
ING Lord Abbett Affiliated Portfolio(1)
ING MarketPro Portfolio
ING MarketStyle Growth Portfolio
ING MarketStyle Moderate Portfolio
ING MarketStyle Moderate Growth Portfolio
ING Marsico Growth Portfolio(1)
ING Marsico International Opportunities Portfolio
ING Mercury Large Cap Growth Portfolio(1)
ING Mercury Large Cap Value Portfolio(1)
ING MFS Total Return Portfolio(1)
ING MFS Utilities Portfolio
ING Oppenheimer Main Street Portfolio(R)(1)
ING PIMCO Core Bond Portfolio(1)
ING PIMCO High Yield Portfolio(1)
ING Pioneer Fund Portfolio(1)
ING Pioneer Mid Cap Value Portfolio(1)
ING Stock Index Portfolio(1)
ING T. Rowe Price Capital Appreciation Portfolio(1)
ING T. Rowe Price Equity Income Portfolio(1)
ING UBS U.S. Allocation Portfolio(1)
ING Van Kampen Equity Growth Portfolio(1)
ING Van Kampen Global Franchise Portfolio(1)
ING Van Kampen Growth and Income Portfolio(1)
ING Van Kampen Real Estate Portfolio(1)
ING VP Index Plus International Equity Portfolio
ING Wells Fargo Mid Cap Disciplined Portfolio(1)
ING Wells Fargo Small Cap Disciplined Portfolio
ING MAYFLOWER TRUST
ING International Value Fund
ING MUTUAL FUNDS
ING Diversified International Fund
ING Emerging Countries Fund
ING Emerging Markets Fixed Income Fund
ING Foreign Fund
ING Global Bond Fund
ING Global Equity Dividend Fund
ING Global Natural Resources Fund
ING Global Real Estate Fund
ING Global Value Choice Fund
ING Greater China Fund
ING Index Plus International Equity Fund
ING International Capital Appreciation Fund
ING International Fund
ING International Real Estate Fund
ING International SmallCap Fund
ING International Value Choice Fund
ING Russia Fund
ING PARTNERS, INC.
ING American Century Large Company Value Portfolio
ING American Century Select Portfolio
ING American Century Small-Mid Cap Value Portfolio
ING Baron Asset Portfolio
ING Baron Small Cap Growth Portfolio
ING Columbia Small Cap Value II Portfolio
ING Davis Venture Value Portfolio
ING Fidelity(R) VIP Contrafund(R) Portfolio
ING Fidelity(R) VIP Equity-Income Portfolio
ING Fidelity(R) VIP Growth Portfolio
ING Fidelity(R) VIP Mid Cap Portfolio
ING Fundamental Research Portfolio
ING Goldman Sachs(R) Capital Growth Portfolio
ING Goldman Sachs(R) Structured Equity Portfolio
ING JPMorgan International Portfolio
ING JPMorgan Mid Cap Value Portfolio
ING Legg Mason Partners Aggressive Growth Portfolio
ING Legg Mason Partners Large Cap Growth Portfolio
ING Lord Abbett U.S. Government Securities Portfolio
ING Neuberger Berman Partners Portfolio
ING Neuberger Berman Regency Portfolio
(1) Under the terms of the Management Agreement between ING Investors Trust and
Directed Services, Inc., the Fund is subject to a unified fee arrangement.
Accordingly, the portion of SCAS Fees allocated to the Fund under the
Agreement will be borne directly by Directed Services, Inc. as provided in
the Management Agreement.
2
ING OpCap Balanced Value Portfolio
ING Oppenheimer Global Portfolio
ING Oppenheimer Strategic Income Portfolio
ING PIMCO Total Return Portfolio
ING Pioneer High Yield Portfolio
ING Solution 2015 Portfolio
ING Solution 2025 Portfolio
ING Solution 2035 Portfolio
ING Solution 2045 Portfolio
ING Solution Income Portfolio
ING T. Rowe Price Diversified Mid Cap Growth Portfolio
ING T. Rowe Price Growth Equity Portfolio
ING Templeton Foreign Equity Portfolio
ING Thornburg Value Portfolio
ING UBS U.S. Large Cap Equity Portfolio
ING UBS U.S. Small Cap Growth Portfolio
ING PRIME RATE TRUST
ING RISK MANAGED NATURAL RESOURCES FUND
ING SENIOR INCOME FUND
ING VARIABLE INSURANCE TRUST
ING GET U.S. Core Portfolio - Series 1
ING GET U.S. Core Portfolio - Series 2
ING GET U.S. Core Portfolio - Series 3
ING GET U.S. Core Portfolio - Series 4
ING GET U.S. Core Portfolio - Series 5
ING GET U.S. Core Portfolio - Series 6
ING GET U.S. Core Portfolio - Series 7
ING GET U.S. Core Portfolio - Series 8
ING GET U.S. Core Portfolio - Series 9
ING GET U.S. Core Portfolio - Series 10
ING GET U.S. Core Portfolio - Series 11
ING GET U.S. Core Portfolio - Series 12
ING GET U.S. Core Portfolio - Series 13
ING VP Global Equity Dividend Portfolio
ING VARIABLE PRODUCTS TRUST
ING VP Financial Services Portfolio
ING VP High Yield Bond Portfolio
ING VP International Value Portfolio
ING VP LargeCap Growth Portfolio
ING VP MidCap Opportunities Portfolio
ING VP Real Estate Portfolio
ING VP SmallCap Opportunities Portfolio
ING VP NATURAL RESOURCES TRUST
(1) Under the terms of the Management Agreement between ING Investors Trust and
Directed Services, Inc., the Fund is subject to a unified fee arrangement.
Accordingly, the portion of SCAS Fees allocated to the Fund under the
Agreement will be borne directly by Directed Services, Inc. as provided in
the Management Agreement.
3