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                             FIDELITY BOND COVERAGE

         
RESOLVED,   that the Board of Trustees/Managers/Directors has determined that
            the participation of Highland Floating Rate Fund, Highland Floating
            Rate Advantage Fund, Highland Floating Rate, LLC, Highland
            Institutional Floating Rate Income Fund, Highland Corporate
            Opportunities Fund, Restoration Opportunities Fund, Prospect Street
            High Income Portfolio, Inc., Prospect Street Income Shares, Inc.,
            Highland Funds I (Equity Opportunities Fund), and Highland Credit
            Strategies Fund (each a "Fund" and collectively, the "Funds"), in
            the Joint Insured Fidelity Bond presented at this meeting and
            offered through the Federal Insurance Company (Bond No. 81911329)
            (the "Fidelity Bond") with Highland is in the best interests of the
            Funds; and further

RESOLVED,   that the procedures for approving and maintaining fidelity bond
            coverage under Tab 3 of the Highland Funds Compliance Manual be, and
            hereby are, adopted and approved substantially in the form as they
            appear in the Highland Funds Compliance Manual, together with such
            changes and modifications as the officers of the Funds deem
            advisable; and further

RESOLVED,   that the Agreement among Insureds be, and it hereby is, adopted and
            approved substantially in the form attached hereto as an exhibit,
            together with such changes and modifications as the officers of the
            Funds deem advisable; and further

RESOLVED,   that the Board of Trustees, including a majority of the Independent
            Trustees of the Funds, shall review the Fidelity Bond at least
            annually in order to ascertain whether or not such policy continues
            to be in the best interests of the Funds, and whether or not the
            premiums to be paid by the Funds are fair and reasonable; and
            further

RESOLVED,   that in accordance with Rule 17g-1(h) under the 1940 Act, the
            Secretary of the Funds is hereby designated as the officer of the
            Funds who is authorized and directed to make the filings with the
            Securities and Exchange Commission and give the notices required by
            Rule 17g-1(g); and further

RESOLVED,   that the officers of the Funds be, and they hereby are, authorized
            and directed at all times to take all actions necessary to assure
            compliance with these resolutions and said Rule 17g-1; and further

RESOLVED,   that the portion of the premium to be paid by the Fund is fair in
            light of the relevant factors.