40-17G 1 e31997_40-17g.htm FORM 40-17G
        Chubb Group of Insurance Companies        DECLARATIONS         
                        FINANCIAL INSTITUTION INVESTMENT 
        15 Mountain View Road, Warren, New Jersey 07059    COMPANY ASSET PROTECTION BOND 
 
 
NAME OF ASSURED (including its Subsidiaries):        Bond Number: 82126649     
 
BLACKROCK EQUITY - BOND COMPLEX                 
                        VIGILANT INSURANCE COMPANY     
                        Incorporated under the laws of New York     
40 EAST 52nd STREET                a stock insurance company herein called the COMPANY 
NEW YORK, NY 10022                         
                        55 Water Street, New York NY 10041-2899     
 
 
ITEM 1.     BOND PERIOD:    from    12:01 a.m. on    November 1, 2007         
                 to    12:01 a.m. on    November 1, 2008         
 
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                $ 47,500,000                         $ 0 
     2.       On Premises            $ 47,500,000                         $ 25,000 
     3.       In Transit                $ 47,500,000                         $ 25,000 
     4.       Forgery or Alteration            $ 47,500,000                         $ 25,000 
     5.       Extended Forgery            $ 47,500,000                         $ 25,000 
     6.       Counterfeit Money            $ 47,500,000                         $ 25,000 
     7.       Threats to Person            $ Not Covered                         $ N/A 
     8.       Computer System            $ 47,500,000                         $ 25,000 
     9.       Voice Initiated Funds Transfer Instruction    $ 47,500,000                         $ 25,000 
    10.       Uncollectible Items of Deposit        $ 25,000                         $ 5,000 
    11.       Audit Expense            $ 50,000                         $ 5,000 
    12.       Telefacsimile Transfer Fund        $ 47,500,000                        $ 25,000 
 
ITEM 3.    THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING 
    ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:         
 
    Endorsements 1 - 7                     
 
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its authorized officers, but it shall not 
be valid unless also signed by an authorized representative of the Company.         


ICAP Bond (5-98) - Vigilant
Form 17-02-1422 (Ed. 5-98) Page 1 of 1


    The COMPANY, in consideration of payment of the required premium, and in reliance 
    on the APPLICATION and all other statements made and information furnished to the 
    COMPANY by the ASSURED, and subject to the DECLARATIONS made a part of this 
    Bond and to all other terms and conditions of this Bond, agrees to pay the ASSURED 
    for:             
 
 
Insuring Clauses                 
 
 
Employee    1.    Loss resulting directly from Larceny or Embezzlement committed by any 
        Employee, alone or in collusion with others. 
 
 
 
On Premises    2.    Loss of Property resulting directly from robbery, burglary, false pretenses, 
        common law or statutory larceny, misplacement, mysterious unexplainable 
        disappearance, damage, destruction or removal, from the possession, custody or 
        control of the ASSURED, while such Property is lodged or deposited at premises 
        located anywhere. 
 
 
In Transit    3.    Loss of Property resulting directly from common law or statutory larceny, 
        misplacement, mysterious unexplainable disappearance, damage or destruction, 
        while the Property is in transit anywhere: 
 
        a.    in an armored motor vehicle, including loading and unloading thereof, 
 
        b.    in the custody of a natural person acting as a messenger of the ASSURED, 
            or     
 
        c.    in the custody of a Transportation Company and being transported in a 
            conveyance other than an armored motor vehicle provided, however, that 
            covered Property transported in such manner is limited to the following: 
 
            (1)    written records, 
 
            (2)    securities issued in registered form, which are not endorsed or are 
                restrictively endorsed, or 
 
            (3)    negotiable instruments not payable to bearer, which are not endorsed 
                or are restrictively endorsed. 
 
        Coverage under this INSURING CLAUSE begins immediately on the receipt of 
        such Property by the natural person or Transportation Company and ends 
        immediately on delivery to the premises of the addressee or to any representative 
        of the addressee located anywhere. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 1 of 19


Insuring Clauses                 
(continued)                 
 
Forgery Or Alteration    4.    Loss resulting directly from: 
 
        a.    Forgery on, or fraudulent material alteration of, any bills of exchange, 
            checks, drafts, acceptances, certificates of deposits, promissory notes, due 
            bills, money orders, orders upon public treasuries, letters of credit, other 
            written promises, orders or directions to pay sums certain in money, or 
            receipts for the withdrawal of Property, or 
 
        b.    transferring, paying or delivering any funds or other Property, or establishing 
            any credit or giving any value in reliance on any written instructions, advices 
            or applications directed to the ASSURED authorizing or acknowledging the 
            transfer, payment, delivery or receipt of funds or other Property, which 
            instructions, advices or applications fraudulently purport to bear the 
            handwritten signature of any customer of the ASSURED, or shareholder or 
            subscriber to shares of an Investment Company, or of any financial 
            institution or Employee but which instructions, advices or applications either 
            bear a Forgery or have been fraudulently materially altered without the 
            knowledge and consent of such customer, shareholder, subscriber, financial 
            institution or Employee; 
 
        excluding, however, under this INSURING CLAUSE any loss covered under 
        INSURING CLAUSE 5. of this Bond, whether or not coverage for INSURING 
        CLAUSE 5. is provided for in the DECLARATIONS of this Bond. 
 
        For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile 
        signature is treated the same as a handwritten signature. 
 
 
Extended Forgery    5.    Loss resulting directly from the ASSURED having, in good faith, and in the 
        ordinary course of business, for its own account or the account of others in any 
        capacity:     
 
        a.    acquired, accepted or received, accepted or received, sold or delivered, or 
            given value, extended credit or assumed liability, in reliance on any original 
            Securities, documents or other written instruments which prove to: 
 
            (1)    bear a Forgery or a fraudulently material alteration, 
 
            (2)    have been lost or stolen, or 
 
            (3)    be Counterfeit, or 
 
        b.    guaranteed in writing or witnessed any signatures on any transfer, 
            assignment, bill of sale, power of attorney, guarantee, endorsement or other 
            obligation upon or in connection with any Securities, documents or other 
            written instruments. 
 
        Actual physical possession, and continued actual physical possession if taken as 
        collateral, of such Securities, documents or other written instruments by an 
        Employee, Custodian, or a Federal or State chartered deposit institution of the 
        ASSURED is a condition precedent to the ASSURED having relied on such items. 
        Release or return of such collateral is an acknowledgment by the ASSURED that it 
        no longer relies on such collateral. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 2 of 19


Insuring Clauses                 
 
Extended Forgery        For the purpose of this INSURING CLAUSE, a mechanically reproduced facsimile 
(continued)        signature is treated the same as a handwritten signature. 
 
 
Counterfeit Money    6.    Loss resulting directly from the receipt by the ASSURED in good faith of any 
        Counterfeit money. 
 
 
Threats To Person    7.    Loss resulting directly from surrender of Property away from an office of the 
        ASSURED as a result of a threat communicated to the ASSURED to do bodily 
        harm to an Employee as defined in Section 1.e. (1), (2) and (5), a Relative or 
        invitee of such Employee, or a resident of the household of such Employee, who 
        is, or allegedly is, being held captive provided, however, that prior to the surrender 
        of such Property: 
             
        a.    the Employee who receives the threat has made a reasonable effort to 
            notify an officer of the ASSURED who is not involved in such threat, and 
 
        b.    the ASSURED has made a reasonable effort to notify the Federal Bureau of 
            Investigation and local law enforcement authorities concerning such threat. 
         
        It is agreed that for purposes of this INSURING CLAUSE, any Employee of the 
        ASSURED, as set forth in the preceding paragraph, shall be deemed to be an 
        ASSURED hereunder, but only with respect to the surrender of money, securities 
        and other tangible personal property in which such Employee has a legal or 
        equitable interest. 
 
 
Computer System    8.    Loss resulting directly from fraudulent: 
             
        a.    entries of data into, or 
 
        b.    changes of data elements or programs within, 
         
        a Computer System, provided the fraudulent entry or change causes: 
 
            (1)    funds or other property to be transferred, paid or delivered, 
 
            (2)    an account of the ASSURED or of its customer to be added, deleted, 
                debited or credited, or 
 
            (3)    an unauthorized account or a fictitious account to be debited or 
                credited. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 3 of 19


Insuring Clauses             
(continued)             
 
Voice Initiated Funds    9.    Loss resulting directly from Voice Initiated Funds Transfer Instruction directed 
Transfer Instruction        to the ASSURED authorizing the transfer of dividends or redemption proceeds of 
        Investment Company shares from a Customer's account, provided such Voice 
        Initiated Funds Transfer Instruction was: 
 
        a.    received at the ASSURED'S offices by those Employees of the ASSURED 
            specifically authorized to receive the Voice Initiated Funds Transfer 
            Instruction, 
 
        b.    made by a person purporting to be a Customer, and 
 
        c.    made by said person for the purpose of causing the ASSURED or Customer 
            to sustain a loss or making an improper personal financial gain for such 
            person or any other person. 
         
        In order for coverage to apply under this INSURING CLAUSE, all Voice Initiated 
        Funds Transfer Instructions must be received and processed in accordance with 
        the Designated Procedures outlined in the APPLICATION furnished to the 
        COMPANY. 
 
 
Uncollectible Items of    10.    Loss resulting directly from the ASSURED having credited an account of a 
Deposit        customer, shareholder or subscriber on the faith of any Items of Deposit which 
        prove to be uncollectible, provided that the crediting of such account causes: 
 
        a.    redemptions or withdrawals to be permitted, 
             
        b.    shares to be issued, or 
 
        c.    dividends to be paid, 
         
        from an account of an Investment Company. 
 
        In order for coverage to apply under this INSURING CLAUSE, the ASSURED must 
        hold Items of Deposit for the minimum number of days stated in the 
        APPLICATION before permitting any redemptions or withdrawals, issuing any 
        shares or paying any dividends with respect to such Items of Deposit. 
 
        Items of Deposit shall not be deemed uncollectible until the ASSURED'S 
        standard collection procedures have failed. 
 
 
Audit Expense    11.    Expense incurred by the ASSURED for that part of the cost of audits or 
        examinations required by any governmental regulatory authority or self-regulatory 
        organization to be conducted by such authority, organization or their appointee by 
        reason of the discovery of loss sustained by the ASSURED and covered by this 
        Bond. 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 4 of 19


General Agreements             
 
Additional Companies    A.    If more than one corporation, or Investment Company, or any combination of 
Included As Assured        them is included as the ASSURED herein: 
             
        (1)    The total liability of the COMPANY under this Bond for loss or losses 
            sustained by any one or more or all of them shall not exceed the limit for 
            which the COMPANY would be liable under this Bond if all such loss were 
            sustained by any one of them. 
 
        (2)    Only the first named ASSURED shall be deemed to be the sole agent of the 
            others for all purposes under this Bond, including but not limited to the giving 
            or receiving of any notice or proof required to be given and for the purpose of 
            effecting or accepting any amendments to or termination of this Bond. The 
            COMPANY shall furnish each Investment Company with a copy of the 
            Bond and with any amendment thereto, together with a copy of each formal 
            filing of claim by any other named ASSURED and notification of the terms of 
            the settlement of each such claim prior to the execution of such settlement. 
 
        (3)    The COMPANY shall not be responsible for the proper application of any 
            payment made hereunder to the first named ASSURED. 
 
        (4)    Knowledge possessed or discovery made by any partner, director, trustee, 
            officer or supervisory employee of any ASSURED shall constitute knowledge 
            or discovery by all the ASSUREDS for the purposes of this Bond. 
 
        (5)    If the first named ASSURED ceases for any reason to be covered under this 
            Bond, then the ASSURED next named on the APPLICATION shall thereafter 
            be considered as the first named ASSURED for the purposes of this Bond. 
 
 
Representation Made By    B.    The ASSURED represents that all information it has furnished in the 
Assured        APPLICATION for this Bond or otherwise is complete, true and correct. Such 
        APPLICATION and other information constitute part of this Bond. 
 
        The ASSURED must promptly notify the COMPANY of any change in any fact or 
        circumstance which materially affects the risk assumed by the COMPANY under 
        this Bond. 
 
        Any intentional misrepresentation, omission, concealment or incorrect statement of 
        a material fact, in the APPLICATION or otherwise, shall be grounds for recision of 
        this Bond. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 5 of 19


General Agreements             
(continued)             
 
 
Additional Offices Or    C.    If the ASSURED, other than an Investment Company, while this Bond is in force, 
Employees - Consolidation,        merges or consolidates with, or purchases or acquires assets or liabilities of 
Merger Or Purchase Or        another institution, the ASSURED shall not have the coverage afforded under this 
Acquisition Of Assets        Bond for loss which has: 
Or Liabilities - Notice To             
Company        (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 liabilities prior to the proposed effective 
            date of such action, and 
             
        b.    obtains the written consent of the COMPANY to extend some or all of the 
            coverage provided by this Bond to such additional exposure, and 
             
        c.    on obtaining such consent, pays to the COMPANY an additional premium. 
 
 
Change Of Control -    D.    When the ASSURED learns of a change in control (other than in an Investment 
Notice To Company        Company), as set forth in Section 2(a) (9) of the Investment Company Act of 
        1940,     the ASSURED shall within sixty (60) days give written notice to the 
        COMPANY setting forth: 
             
        (1)    the names of the transferors and transferees (or the names of the beneficial 
            owners if the voting securities are registered in another name), 
             
        (2)    the total number of voting securities owned by the transferors and the 
            transferees (or the beneficial owners), both immediately before and after the 
            transfer, and 
             
        (3)    the total number of outstanding voting securities. 
         
        Failure to give the required notice shall result in termination of coverage for any 
        loss involving a transferee, to be effective on the date of such change in control. 
 
 
Court Costs And    E.    The COMPANY will indemnify the ASSURED for court costs and reasonable 
Attorneys’ Fees        attorneys' fees incurred and paid by the ASSURED in defense, whether or not 
        successful, whether or not fully litigated on the merits and whether or not settled, 
        of any claim, suit or legal proceeding with respect to which the ASSURED would 
        be entitled to recovery under this Bond. However, with respect to INSURING 
        CLAUSE 1., this Section shall only apply in the event that: 
             
        (1)    an Employee admits to being guilty of Larceny or Embezzlement, 
             
        (2)    an Employee is adjudicated to be guilty of Larceny or Embezzlement, or 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 6 of 19


General Agreements         
 
Court Costs And    (3)       in the absence of 1 or 2 above, an arbitration panel agrees, after a review of 
Attorneys’ Fees           an agreed statement of facts between the COMPANY and the ASSURED, 
(continued)           that an Employee would be found guilty of Larceny or Embezzlement if 
           such Employee were prosecuted. 
 
    The ASSURED shall promptly give notice to the COMPANY of any such suit or 
    legal proceeding and at the request of the COMPANY shall furnish copies of all 
    pleadings and pertinent papers to the COMPANY. The COMPANY may, at its 
    sole option, elect to conduct the defense of all or part of such legal proceeding. 
    The defense by the COMPANY shall be in the name of the ASSURED through 
    attorneys selected by the COMPANY. The ASSURED shall provide all reasonable 
    information and assistance as required by the COMPANY for such defense. 
 
    If the COMPANY declines to defend the ASSURED, no settlement without the 
    prior written consent of the COMPANY nor judgment against the ASSURED shall 
    determine the existence, extent or amount of coverage under this Bond. 
 
    If the amount demanded in any such suit or legal proceeding is within the 
    DEDUCTIBLE AMOUNT, if any, the COMPANY shall have no liability for court 
    costs and attorney's fees incurred in defending all or part of such suit or legal 
    proceeding. 
 
    If the amount demanded in any such suit or legal proceeding is in excess of the 
    LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable 
    INSURING CLAUSE, the COMPANY'S liability for court costs and attorney's fees 
    incurred in defending all or part of such suit or legal proceedings is limited to the 
    proportion of such court costs and attorney's fees incurred that the LIMIT OF 
    LIABILITY stated in ITEM 2. of the DECLARATIONS for the applicable INSURING 
    CLAUSE bears to the total of the amount demanded in such suit or legal 
    proceeding. 
 
    If the amount demanded is any such suit or legal proceeding is in excess of the 
    DEDUCTIBLE AMOUNT, if any, but within the LIMIT OF LIABILITY stated in ITEM 
    2.    of the DECLARATIONS for the applicable INSURING CLAUSE, the 
    COMPANY'S liability for court costs and attorney's fees incurred in defending all or 
    part of such suit or legal proceedings shall be limited to the proportion of such 
    court costs or attorney's fees that the amount demanded that would be payable 
    under this Bond after application of the DEDUCTIBLE AMOUNT, bears to the total 
    amount demanded. 
 
    Amounts paid by the COMPANY for court costs and attorneys' fees shall be in 
    addition to the LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 7 of 19


Conditions And                 
Limitations                 
 
Definitions    1.    As used in this Bond: 
             
        a.    Computer System means a computer and all input, output, processing, 
            storage, off-line media libraries, and communication facilities which are 
            connected to the computer and which are under the control and supervision 
            of the operating system(s) or application(s) software used by the ASSURED. 
 
        b.    Counterfeit means an imitation of an actual valid original which is intended 
            to deceive and be taken as the original. 
 
        c.    Custodian means the institution designated by an Investment Company to 
            maintain possession and control of its assets. 
 
        d.    Customer means an individual, corporate, partnership, trust customer, 
            shareholder or subscriber of an Investment Company which has a written 
            agreement with the ASSURED for Voice Initiated Funds Transfer 
            Instruction. 
 
        e.    Employee means: 
 
            (1)    an officer of the ASSURED, 
 
            (2)    a natural person while in the regular service of the ASSURED at any of 
                the ASSURED'S premises and compensated directly by the ASSURED 
                through its payroll system and subject to the United States Internal 
                Revenue Service Form W-2 or equivalent income reporting plans of 
                other countries, and whom the ASSURED has the right to control and 
                direct both as to the result to be accomplished and details and means 
                by which such result is accomplished in the performance of such 
                service, 
 
            (3)    a guest student pursuing studies or performing duties in any of the 
                ASSURED'S premises, 
 
            (4)    an attorney retained by the ASSURED and an employee of such 
                attorney while either is performing legal services for the ASSURED, 
 
            (5)    a natural person provided by an employment contractor to perform 
                employee duties for the ASSURED under the ASSURED'S supervision 
                at any of the ASSURED'S premises, 
 
            (6)    an employee of an institution merged or consolidated with the 
                ASSURED prior to the effective date of this Bond, 
 
            (7)    a director or trustee of the ASSURED, but only while performing acts 
                within the scope of the customary and usual duties of any officer or 
                other employee of the ASSURED or while acting as a member of any 
                committee duly elected or appointed to examine or audit or have 
                custody of or access to Property of the ASSURED, or 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 8 of 19


Conditions And             
Limitations             
 
Definitions    (8)    each natural person, partnership or corporation authorized by written 
(continued)        agreement with the ASSURED to perform services as electronic data 
        processor of checks or other accounting records related to such checks but 
        only while such person, partnership or corporation is actually performing 
        such services and not: 
 
        a.    creating, preparing, modifying or maintaining the ASSURED'S 
            computer software or programs, or 
 
        b.    acting as transfer agent or in any other agency capacity in issuing 
            checks, drafts or securities for the ASSURED, 
 
    (9)    any partner, officer or employee of an investment advisor, an underwriter 
        (distributor), a transfer agent or shareholder accounting recordkeeper, or an 
        administrator, for an Investment Company while performing acts coming 
        within the scope of the customary and usual duties of an officer or employee 
        of an Investment Company or acting as a member of any committee duly 
        elected or appointed to examine, audit or have custody of or access to 
        Property of an Investment Company. 
 
        The term Employee shall not include any partner, officer or employee of a 
        transfer agent, shareholder accounting recordkeeper or administrator: 
 
        a.    which is not an "affiliated person" (as defined in Section 2(a) of the 
            Investment Company Act of 1940) of an Investment Company or of 
            the investment advisor or underwriter (distributor) of such Investment 
            Company, or 
 
        b.    which is a "bank" (as defined in Section 2(a) of the Investment 
            Company Act of 1940). 
 
            This Bond does not afford coverage in favor of the employers of 
            persons as set forth in e. (4), (5) and (8) above, and upon payment to 
            the ASSURED by the COMPANY resulting directly from Larceny or 
            Embezzlement committed by any of the partners, officers or 
            employees of such employers, whether acting alone or in collusion 
            with others, an assignment of such of the ASSURED'S rights and 
            causes of action as it may have against such employers by reason of 
            such acts so committed shall, to the extent of such payment, be given 
            by the ASSURED to the COMPANY, and the ASSURED shall execute 
            all papers necessary to secure to the COMPANY the rights provided 
            for herein. 
 
        Each employer of persons as set forth in e.(4), (5) and (8) above and the 
        partners, officers and other employees of such employers shall collectively 
        be deemed to be one person for all the purposes of this Bond; excepting, 
        however, the fifth paragraph of Section 13. 
 
        Independent contractors not specified in e.(4), (5) or (8) above, 
        intermediaries, agents, brokers or other representatives of the same general 
        character shall not be considered Employees. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 9 of 19


Conditions And         
Limitations         
 
Definitions    f.    Forgery means the signing of the name of another natural person with the 
(continued)        intent to deceive but does not mean a signature which consists in whole or in 
        part of one's own name, with or without authority, in any capacity for any 
        purpose. 
 
    g.    Investment Company means any investment company registered under the 
        Investment Company Act of 1940 and listed under the NAME OF ASSURED 
        on the DECLARATIONS. 
 
    h.    Items of Deposit means one or more checks or drafts drawn upon a 
        financial institution in the United States of America. 
 
    i.    Larceny or Embezzlement means larceny or embezzlement as defined in 
        Section 37 of the Investment Company Act of 1940. 
 
    j.    Property means money, revenue and other stamps; securities; including any 
        note, stock, treasury stock, bond, debenture, evidence of indebtedness, 
        certificate of deposit, certificate of interest or participation in any profit- 
        sharing agreement, collateral trust certificate, preorganization certificate or 
        subscription, transferable share, investment contract, voting trust certificate, 
        certificate of deposit for a security, fractional undivided interest in oil, gas, or 
        other mineral rights, any interest or instruments commonly known as a 
        security under the Investment Company Act of 1940, any other certificate of 
        interest or participation in, temporary or interim certificate for, receipt for, 
        guarantee of, or warrant or right to subscribe to or purchase any of the 
        foregoing; bills of exchange; acceptances; checks; withdrawal orders; money 
        orders; travelers' letters of credit; bills of lading; abstracts of title; insurance 
        policies, deeds, mortgages on real estate and/or upon chattels and interests 
        therein; assignments of such policies, deeds or mortgages; other valuable 
        papers, including books of accounts and other records used by the 
        ASSURED in the conduct of its business (but excluding all electronic data 
        processing records); and, all other instruments similar to or in the nature of 
        the foregoing in which the ASSURED acquired an interest at the time of the 
        ASSURED'S consolidation or merger with, or purchase of the principal 
        assets of, a predecessor or which are held by the ASSURED for any 
        purpose or in any capacity and whether so held gratuitously or not and 
        whether or not the ASSURED is liable therefor. 
 
    k.    Relative means the spouse of an Employee or partner of the ASSURED 
        and any unmarried child supported wholly by, or living in the home of, such 
        Employee or partner and being related to them by blood, marriage or legal 
        guardianship. 
 
    l.    Securities, documents or other written instruments means original 
        (including original counterparts) negotiable or non-negotiable instruments, or 
        assignments thereof, which in and of themselves represent an equitable 
        interest, ownership, or debt and which are in the ordinary course of business 
        transferable by delivery of such instruments with any necessary 
        endorsements or assignments. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 10 of 19


Conditions And             
Limitations             
 
 
Definitions        m.    Subsidiary means any organization that, at the inception date of this Bond, 
(continued)            is named in the APPLICATION or is created during the BOND PERIOD and 
            of which more than fifty percent (50%) of the outstanding securities or voting 
            rights representing the present right to vote for election of directors is owned 
            or controlled by the ASSURED either directly or through one or more of its 
            subsidiaries. 
 
        n.    Transportation Company means any organization which provides its own 
            or its leased vehicles for transportation or which provides freight forwarding 
            or air express services. 
 
        o.    Voice Initiated Election means any election concerning dividend options 
            available to Investment Company shareholders or subscribers which is 
            requested by voice over the telephone. 
 
        p.    Voice Initiated Redemption means any redemption of shares issued by an 
            Investment Company which is requested by voice over the telephone. 
 
        q.    Voice Initiated Funds Transfer Instruction means any Voice Initiated 
            Redemption or Voice Initiated Election. 
 
        For the purposes of these definitions, the singular includes the plural and the 
        plural includes the singular, unless otherwise indicated. 
 
 
General Exclusions -    2.    This bond does not directly or indirectly cover: 
Applicable to All Insuring        a.    loss not reported to the COMPANY in writing within sixty (60) days after 
Clauses            termination of this Bond as an entirety; 
 
        b.    loss due to riot or civil commotion outside the United States of America and 
            Canada, or any loss due to military, naval or usurped power, war or 
            insurrection. This Section 2.b., however, shall not apply to loss which occurs 
            in transit in the circumstances recited in INSURING CLAUSE 3., provided 
            that when such transit was initiated there was no knowledge on the part of 
            any person acting for the ASSURED of such riot, civil commotion, military, 
            naval or usurped power, war or insurrection; 
 
        c.    loss resulting from the effects of nuclear fission or fusion or radioactivity; 
 
        d.    loss of potential income including, but not limited to, interest and dividends 
            not realized by the ASSURED or by any customer of the ASSURED; 
 
        e.    damages of any type for which the ASSURED is legally liable, except 
            compensatory damages, but not multiples thereof, arising from a loss 
            covered under this Bond; 
 
        f.    costs, fees and expenses incurred by the ASSURED in establishing the 
            existence of or amount of loss under this Bond, except to the extent covered 
            under INSURING CLAUSE 11.; 
 
        g.    loss resulting from indirect or consequential loss of any nature; 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 11 of 19


Conditions And                     
Limitations                     
 
General Exclusions -        h.    loss resulting from dishonest acts by any member of the Board of Directors 
Applicable to All Insuring            or Board of Trustees of the ASSURED who is not an Employee, acting 
Clauses            alone or in collusion with others; 
(continued)             
        i.    loss, or that part of any loss, resulting solely from any violation by the 
            ASSURED or by any Employee: 
                 
            (1)    of any law regulating: 
                     
                a.    the issuance, purchase or sale of securities, 
                     
                b.    securities transactions on security or commodity exchanges or 
                    the over the counter market, 
                     
                c.    investment companies, 
                     
                d.    investment advisors, or 
                 
            (2)    of any rule or regulation made pursuant to any such law; or 
             
        j.    loss of confidential information, material or data; 
             
        k.    loss resulting from voice requests or instructions received over the 
            telephone, provided however, this Section 2.k. shall not apply to INSURING 
            CLAUSE 7. or 9. 
 
 
Specific Exclusions -    3.    This Bond does not directly or indirectly cover: 
Applicable To All Insuring             
Clauses Except Insuring        a.    loss caused by an Employee, provided, however, this Section 3.a. shall not 
Clause 1.            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.; 
             
        e.    loss of property while in the mail; 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 12 of 19


Conditions And             
Limitations             
 
Specific Exclusions -        f.    loss resulting from the failure for any reason of a financial or depository 
Applicable To All Insuring            institution, its receiver or other liquidator to pay or deliver funds or other 
Clauses Except Insuring            Property to the ASSURED provided further that this Section 3.f. shall not 
Clause 1.            apply to loss of Property resulting directly from robbery, burglary, 
(continued)            misplacement, mysterious unexplainable disappearance, damage, 
            destruction or removal from the possession, custody or control of the 
            ASSURED. 
             
        g.    loss of Property while in the custody of a Transportation Company, 
            provided however, that this Section 3.g. shall not apply to INSURING 
            CLAUSE 3.; 
             
        h.    loss resulting from entries or changes made by a natural person with 
            authorized access to a Computer System who acts in good faith on 
            instructions, unless such instructions are given to that person by a software 
            contractor or its partner, officer, or employee authorized by the ASSURED to 
            design, develop, prepare, supply, service, write or implement programs for 
            the ASSURED's Computer System; or 
             
        i.    loss resulting directly or indirectly from the input of data into a Computer 
            System terminal, either on the premises of the customer of the ASSURED 
            or under the control of such a customer, by a customer or other person who 
            had authorized access to the customer's authentication mechanism. 
 
 
Specific Exclusions -    4.    This bond does not directly or indirectly cover: 
Applicable To All Insuring             
Clauses Except Insuring        a.    loss resulting from the complete or partial non-payment of or default on any 
Clauses 1., 4., And 5.            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-    5.    At all times prior to termination of this Bond, this Bond shall continue in force for 
Reduction And Non-        the limit stated in the applicable sections of ITEM 2. of the DECLARATIONS, 
Accumulation Of Liability        notwithstanding any previous loss for which the COMPANY may have paid or be 
        liable to pay under this Bond provided, however, that the liability of the COMPANY 
        under this Bond with respect to all loss resulting from: 
 
        a.    any one act of burglary, robbery or hold-up, or attempt thereat, in which no 
            Employee is concerned or implicated, or 
 
        b.    any one unintentional or negligent act on the part of any one person 
            resulting in damage to or destruction or misplacement of Property, or 
 
        c.    all acts, other than those specified in a. above, of any one person, or 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 13 of 19


Conditions And             
Limitations             
 
Limit Of Liability/Non-        d.    any one casualty or event other than those specified in a., b., or c. above, 
Reduction And Non-            shall be deemed to be one loss and shall be limited to the applicable
Accumulation Of Liability            LIMIT OF LIABILITY stated in ITEM 2. of the DECLARATIONS of this Bond
(continued)            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 
 
        ii.    permit the continuation of wrongful acts of any other person or persons 
 
        whether such acts are committed with or without the knowledge of the wrongful 
        acts of the person so aided, and whether such acts are committed with or without 
        the intent to aid such other person, shall be deemed to be one loss with the 
        wrongful acts of all persons so aided. 
 
 
Discovery    6.    This Bond applies only to loss first discovered by an officer of the ASSURED 
        during the BOND PERIOD. Discovery occurs at the earlier of an officer of the 
        ASSURED being aware of: 
 
        a.    facts which may subsequently result in a loss of a type covered by this Bond, 
            or 
 
        b.    an actual or potential claim in which it is alleged that the ASSURED is liable 
            to a third party, 
 
        regardless of when the act or acts causing or contributing to such loss occurred, 
        even though the amount of loss does not exceed the applicable DEDUCTIBLE 
        AMOUNT, or the exact amount or details of loss may not then be known. 
 
 
 
Notice To Company -    7.    a.    The ASSURED shall give the COMPANY notice thereof at the earliest 
Proof - Legal Proceedings            practicable moment, not to exceed sixty (60) days after discovery of loss, in 
Against Company            an amount that is in excess of 50% of the applicable DEDUCTIBLE 
            AMOUNT, as stated in ITEM 2. of the DECLARATIONS. 
 
        b.    The ASSURED shall furnish to the COMPANY proof of loss, duly sworn to, 
            with full particulars within six (6) months after such discovery. 
 
        c.    Securities listed in a proof of loss shall be identified by certificate or bond 
            numbers, if issued with them. 
 
        d.    Legal proceedings for the recovery of any loss under this Bond shall not be 
            brought prior to the expiration of sixty (60) days after the proof of loss is filed 
            with the COMPANY or after the expiration of twenty-four (24) months from 
            the discovery of such loss. 
 
        e.    This Bond affords coverage only in favor of the ASSURED. No claim, suit, 
            action or legal proceedings shall be brought under this Bond by anyone 
            other than the ASSURED. 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 14 of 19


Conditions And             
Limitations             
 
Notice To Company -        f.    Proof of loss involving Voice Initiated Funds Transfer Instruction shall 
Proof - Legal Proceedings            include electronic recordings of such instructions. 
Against Company             
(continued)             
 
 
Deductible Amount    8.    The COMPANY shall not be liable under any INSURING CLAUSES of this Bond 
        on account of loss unless the amount of such loss, after deducting the net amount 
        of all reimbursement and/or recovery obtained or made by the ASSURED, other 
        than from any Bond or policy of insurance issued by an insurance company and 
        covering such loss, or by the COMPANY on account thereof prior to payment by 
        the COMPANY of such loss, shall exceed the DEDUCTIBLE AMOUNT set forth in 
        ITEM 3. of the DECLARATIONS, and then for such excess only, but in no event 
        for more than the applicable LIMITS OF LIABILITY stated in ITEM 2. of the 
        DECLARATIONS. 
 
        There shall be no deductible applicable to any loss under INSURING CLAUSE 1. 
        sustained by any Investment Company. 
 
 
Valuation    9.    BOOKS OF ACCOUNT OR OTHER RECORDS 
        The value of any loss of Property consisting of books of account or other records 
        used by the ASSURED in the conduct of its business shall be the amount paid by 
        the ASSURED for blank books, blank pages, or other materials which replace the 
        lost books of account or other records, plus the cost of labor paid by the 
        ASSURED for the actual transcription or copying of data to reproduce such books 
        of account or other records. 
 
        The value of any loss of Property other than books of account or other records 
        used by the ASSURED in the conduct of its business, for which a claim is made 
        shall be determined by the average market value of such Property on the 
        business day immediately preceding discovery of such loss provided, however, 
        that the value of any Property replaced by the ASSURED with the consent of the 
        COMPANY and prior to the settlement of any claim for such Property shall be the 
        actual market value at the time of replacement. 
 
        In the case of a loss of interim certificates, warrants, rights or other securities, the 
        production of which is necessary to the exercise of subscription, conversion, 
        redemption or deposit privileges, the value of them shall be the market value of 
        such privileges immediately preceding their expiration if said loss is not discovered 
        until after their expiration. If no market price is quoted for such Property or for 
        such privileges, the value shall be fixed by agreement between the parties. 
        OTHER PROPERTY 
 
        The value of any loss of Property, other than as stated above, shall be the actual 
        cash value or the cost of repairing or replacing such Property with Property of 
        like quality and value, whichever is less. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 15 of 19


Conditions And             
Limitations             
(continued)             
 
Securities Settlement    10.    In the event of a loss of securities covered under this Bond, the COMPANY may, 
        at its sole discretion, purchase replacement securities, tender the value of the 
        securities in money, or issue its indemnity to effect replacement securities. 
 
        The indemnity required from the ASSURED under the terms of this Section 
        against all loss, cost or expense arising from the replacement of securities by the 
        COMPANY'S indemnity shall be: 
 
        a.    for securities having a value less than or equal to the applicable 
            DEDUCTIBLE AMOUNT - one hundred (100%) percent; 
 
        b.    for securities having a value in excess of the DEDUCTIBLE AMOUNT but 
            within the applicable LIMIT OF LIABILITY - the percentage that the 
            DEDUCTIBLE AMOUNT bears to the value of the securities; 
 
        c.    for securities having a value greater than the applicable LIMIT OF LIABILITY 
            - the percentage that the DEDUCTIBLE AMOUNT and portion in excess of 
            the applicable LIMIT OF LIABILITY bears to the value of the securities. 
 
        The value referred to in Section 10.a., b., and c. is the value in accordance with 
        Section 9, VALUATION, regardless of the value of such securities at the time the 
        loss under the COMPANY'S indemnity is sustained. 
 
        The COMPANY is not required to issue its indemnity for any portion of a loss of 
        securities which is not covered by this Bond; however, the COMPANY may do so 
        as a courtesy to the ASSURED and at its sole discretion. 
 
        The ASSURED shall pay the proportion of the Company's premium charge for the 
        Company's indemnity as set forth in Section 10.a., b., and c. No portion of the 
        LIMIT OF LIABILITY shall be used as payment of premium for any indemnity 
        purchased by the ASSURED to obtain replacement securities. 
 
 
Subrogation – Assignment - 11.    In the event of a payment under this Bond, the COMPANY shall be subrogated to 
Recovery        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 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 16 of 19


Conditions And             
Limitations             
 
Subrogation - Assignment -        d.    fourth, to the ASSURED in satisfaction of any loss suffered by the 
Recovery            ASSURED which was not covered under this Bond. 
(continued)         
        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. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 17 of 19


Conditions And             
Limitations             
 
 
Termination        If any partner, director, trustee, or officer or supervisory employee of an 
(continued)        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. 

  ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 18 of 19


Conditions And     
Limitations     
 
Change or Modification    If this Bond is for a joint ASSURED, no charge or modification which would 
(continued)    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. 

ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 19 of 19


                                                                                                                                               VIGILANT INSURANCE COMPANY 
 
                                                                                                                                               Endorsement No:    1 
 
                                                                                                                                               Bond Number:    82126649 
 
NAME OF ASSURED: BLACKROCK EQUITY - BOND COMPLEX     
 
 
 
                                                                       AMEND NAME OF ASSURED ENDORSEMENT     
 
It is agreed that NAME OF ASSURED of the DECLARATIONS for this Bond is amended to include the 
following:     
 
 BlackRock Bond Allocation Target Shares     
 BlackRock Balanced Capital Fund, Inc.     
 Master Basic Value LLC     
 BlackRock Basic Value Fund, Inc.     
 BlackRock California Municipal Series Trust     
 BlackRock Commodity Strategies Fund     
 BlackRock Equity Dividend Fund     
 BlackRock EuroFund     
 BlackRock Multi-State Municipal Series Trust     
 BlackRock Focus Growth Fund, Inc. (formerly BR Focus Twenty)     
 BlackRock Focus Value Fund, Inc.     
 BlackRock Fundamental Growth Fund, Inc.     
 BlackRock Funds II     
 BlackRock Global Allocation Fund, Inc.     
 BlackRock Global Dynamic Equity Fund     
 BlackRock Global Growth Fund, Inc.     
 BlackRock Global SmallCap Fund, Inc.     
 BlackRock Municipal Bond Fund, Inc.     
 BlackRock Municipal Series Trust     
 BlackRock International Value Trust     
 BlackRock Mid Cap Value Opportunities Series Inc.     
 BlackRock Natural Resources Trust     
 BlackRock Short-Term Bond Series, Inc.     
 BlackRock Utilities & Telecommunications Fund, Inc.     
 BlackRock Value Opportunities Fund, Inc.     
 BlackRock World Income Fund, Inc.     
 BlackRock Bond Fund, Inc.     
 Master Bond LLC     
 FDP Series, Inc.     
 Managed Account Series     
 Master Commodity Strategies LLC     
 Master Focus Twenty LLC     
 Master Value Opportunities LLC     
 BlackRock Principal Protected Trust     
 BlackRock Series Fund, Inc.     
 Short-Term Bond Master LLC     
 BlackRock Variable Series Funds, Inc.     

ICAP Bond
Form 17-02-6272 (Ed. 8-04) Page 1


This Endorsement applies to loss discovered after 12:01 a.m. on November 1, 2007. 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 

Date: February 4, 2008


ICAP Bond
Form 17-02-6272 (Ed. 8-04) Page 2


                                                                                                         VIGILANT INSURANCE COMPANY 
 
                                                                                                         Endorsement No.: 2 
 
                                                                                                         Bond Number:    82126649 
 
 
 
NAME OF ASSURED:     BLACKROCK EQUITY - BOND COMPLEX     
 
            TELEFACSIMILE INSTRUCTION FRAUD ENDORSEMENT 
 
It is agreed that this Bond is amended as follows:     
 
1.    By adding the following INSURING CLAUSE:     
 
    12.    Telefacsimile Instruction     
 
        Loss resulting directly from the ASSURED having transferred, paid or delivered any funds 
        or other Property or established any credit, debited any account or given any value on the 
        faith of any fraudulent instructions sent by a Customer, financial institution or another 
        office of the ASSURED by Telefacsimile directly to the ASSURED authorizing or 
        acknowledging the transfer, payment or delivery of funds or Property or the 
        establishment of a credit or the debiting of an account or the giving of value by the 
        ASSURED where such Telefacsimile instructions:     
 
        a.     bear a valid test key exchanged between the ASSURED and a Customer or 
             another financial institution with authority to use such test key for Telefacsimile 
             instructions in the ordinary course of business, but which test key has been 
             wrongfully obtained by a person who was not authorized to initiate, make, validate 
             or authenticate a test key arrangement, and     
 
        b.     fraudulently purport to have been sent by such Customer or financial institution 
             when such Telefacsimile instructions were transmitted without the knowledge or 
             consent of such Customer or financial institution by a person other than such 
             Customer or financial institution and which bear a Forgery of a signature, 
             provided that the Telefacsimile instruction was verified by a direct call back to an 
             employee of the financial institution, or a person thought by the ASSURED to be 
             the Customer, or an employee of another financial institution. 
 
2.    By deleting from Section 1., Definitions, the definition of Customer in its entirety, and substituting 
    the following:         
 
    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 or Telefacsimile Instruction. 

ICAP Bond
Form 17-02-2367 (Rev. 10-03) Page 1


3.    By adding to Section 1., Definitions, the following: 
 
    r.    Telefacsimile means a system of transmitting written documents by electronic signals 
        over telephone lines to equipment maintained by the ASSURED for the purpose of 
        reproducing a copy of said document. Telefacsimile does not mean electronic 
        communication sent by Telex or similar means of communication, or through an 
        electronic communication system or through an automated clearing house. 
 
4.    By adding to Section 3., Specific Exclusions Applicable to All Insuring Clauses Except Insuring 
    Clause 1. the following: 
 
    j.    loss resulting directly or indirectly from Telefacsimile instructions provided, however, this 
        exclusion shall not apply to this INSURING CLAUSE. 
 
 
 
 
This Endorsement applies to loss discovered after 12:01 a.m. on November 1, 2007. 
 
 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 

Date: February 4, 2008


ICAP Bond
Form 17-02-2367 (Rev. 10-03) Page 2


             ENDORSEMENT/RIDER 
Effective date of         
this endorsement/rider: November 1, 2007                       VIGILANT INSURANCE COMPANY 
                           Endorsement/Rider No.    3 
                           To be attached to and     
                           form a part of Bond No.    82126649 
 
 
Issued to: BLACKROCK EQUITY - BOND COMPLEX     
    DELETING VALUATION-OTHER PROPERTY AND AMENDING CHANGE OR MODIFICATION 
        ENDORSEMENT     
In consideration of the premium charged, it is agreed that this Bond is amended as follows: 
     
1.    The paragraph titled Other Property in Section 9, Valuation, is deleted in its entirety. 
     
2.    The third paragraph in Section 16, Change or Modification, is deleted in its entirety and replaced with 
    the following:         
     
    If this Bond is for a joint 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 all insured Investment Companies and the Securities and Exchange Commission, 
    Washington, D.C., by the COMPANY.         
 
 
The title and any headings in this endorsement/rider are solely for convenience and form no part of the 
terms and conditions of coverage.         
     
All other terms, conditions and limitations of this Bond shall remain unchanged.     

17-02-2437 (12/2006) rev. Page 1


                         ENDORSEMENT/RIDER 
 
Effective date of         
this endorsement/rider: November 1, 2007    VIGILANT INSURANCE COMPANY 
    Endorsement/Rider No.    4 
    To be attached to and     
    form a part of Bond No.    82126649 
Issued to: BLACKROCK EQUITY - BOND COMPLEX     
 
 
                                                     AMEND SECTION 16 - CHANGE OR MODIFICATION ENDORSEMENT 
In consideration of the premium charged, it is agreed that Section 16, Change or Modification, the first and 
second full paragraphs are deleted and replaced with the following:     
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 affected 
party and the Securities and Exchange Commission, Washington, D.C., by the acting party. 
 
 
The title and any headings in this endorsement/rider are solely for convenience and form no part of the terms 
and conditions of coverage.         
 
All other terms, conditions and limitations of this Bond shall remain unchanged. 

Q06-246 (02/2008) rev. Page 1


                                                                                                                                   VIGILANT INSURANCE COMPANY 
 
                                                                                                                                   Endorsement No.: 5 
 
                                                                                                                                   Bond Number:    82126649 
 
 
 
NAME OF ASSURED: BLACKROCK EQUITY - BOND COMPLEX     
 
                                                     NEW YORK AMENDATORY ENDORSEMENT 
 
It is agreed that this Bond is amended as follows:     
 
1.    By adding to Section 13, Termination, the following:     
 
    Bonds In Effect Sixty (60) Days Or Less     
 
    If this Bond has been in effect for less than sixty (60) days and if it is not a renewal Bond, the 
    COMPANY may terminate it for any reason by mailing or delivering to the ASSURED and to the 
    authorized agent or broker, if any, written notice of termination at least sixty (60) days before the 
    effective date of termination.     
 
    Bonds In Effect More Than Sixty (60) Days     
 
    If this Bond has been in effect for sixty (60) days or more, or if it is a renewal of a Bond issued by the 
    COMPANY, it may be terminated by the COMPANY by mailing or delivering to the ASSURED and to 
    the authorized agent or broker, if any, written notice of termination at least sixty (60) days before the 
    effective date of termination. Furthermore, when the Bond is a renewal or has been in effect for sixty 
    (60) days or more, the COMPANY may terminate only for one or more of the reasons stated in 1-7 
    below.     
 
    1.    Nonpayment of premium;     
 
    2.    Conviction of a crime arising out of acts increasing the hazard insured against; 
 
    3.    Discovery of fraud or material misrepresentation in the obtaining of this Bond or in the 
        presentation of a claim thereunder;     
 
    4.    Violation of any provision of this Bond that substantially and materially increases the hazard 
        insured against, and which occurred subsequent to inception of the current BOND PERIOD; 
 
    5.    If applicable, material physical change in the property insured, occurring after issuance or last 
        annual renewal anniversary date of this Bond, which results in the property becoming uninsurable 
        in accordance with the COMPANY's objective, uniformly applied underwriting standards in effect 
        at the time this Bond was issued or last renewed; or material change in the nature or extent of 
        this Bond occurring after issuance or last annual renewal anniversary date of this Bond, which 
        causes the risk of loss to be substantially and materially increased beyond that contemplated at 
        the time this Bond was issued or last renewed;     

ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 1


         6.    A determination by the Superintendent of Insurance that continuation of the present premium 
    volume of the COMPANY would jeopardize the COMPANY's policyholders, creditors or the 
    public, or continuing the Bond itself would place the COMPANY in violation of any provision of the 
    New York Insurance Code; or 
     
         7.    Where the COMPANY has reason to believe, in good faith and with sufficient cause, that there is 
    a probable risk or danger that the Property will be destroyed by the ASSURED for the purpose of 
    collecting the insurance proceeds. 
 
         Notice Of Termination 
         Notice of termination under this SECTION shall be mailed to the ASSURED and to the authorized 
         agent or broker, if any, at the address shown on the DECLARATIONS of this Bond. The COMPANY, 
         however, may deliver any notice instead of mailing it. 
 
         Return Premium Calculations 
 
         The COMPANY shall refund the unearned premium computed pro rata if this Bond is terminated by the 
         COMPANY." 
 
. By adding a new Section reading as follows: 
 
         "Section 17. Election To Conditionally Renew / Nonrenew This Bond 
         Conditional Renewal 
 
         If the COMPANY conditionally renews this Bond subject to: 
     
         1.    Change of limits of liability; 
     
         2.    Change in type of coverage; 
     
         3.    Reduction of coverage; 
     
         4.    Increased deductible; 
     
         5.    Addition of exclusion; or 
     
         6.    Increased premiums in excess of 10%, exclusive of any premium increase due to and 
    commensurate with insured value added; or as a result of experience rating, retrospective rating 
    or audit; the COMPANY shall send notice as provided in Notices Of Nonrenewal And Conditional 
    Renewal immediately below. 
 
         Notices Of Nonrenewal And Conditional Renewal 
     
         1.    If the COMPANY elects not to renew this Bond, or to conditionally renew this Bond as provided 
    herein, the COMPANY shall mail or deliver written notice to the ASSURED at least sixty (60) but 
    not more than one hundred twenty (120) days before: 
         
    a.    The expiration date; or 
         
    b.    The anniversary date if this Bond has been written for a term of more than one year. 

ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 2


    2.    Notice shall be mailed or delivered to the ASSURED at the address shown on the 
        DECLARATIONS of this Bond and the authorized agent or broker, if any. If notice is mailed, 
        proof of mailing shall be sufficient proof of notice. 
 
    3.    Paragraphs 1. and 2. immediately above shall not apply when the ASSURED, authorized agent 
        or broker, or another insurer has mailed or delivered written notice to the COMPANY that the 
        Bond has been replaced or is no longer desired. 
 
3.    By adding to General Agreement B., Representations Made By Assured, the following: 
 
    No misrepresentation shall be deemed material unless knowledge by the COMPANY would have lead 
    to the COMPANY'S refusal to write this Bond. 
 
 
 
 
This Endorsement applies to loss discovered after 12:01 a.m. on November 1, 2007. 
 
 
 
 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 

Date: February 4, 2008


ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 3


Effective date of         
this endorsement: November 1, 2007    VIGILANT INSURANCE COMPANY 
    Endorsement No.: 6 
    To be attached to and form a part of Bond 
    Number:    82126649 
 
 
Issued to: BLACKROCK EQUITY - BOND COMPLEX     
                                           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: February 4, 2008


Form 14-02-9228 (Ed. 4/2004)


                                                                                                                         VIGILANT INSURANCE COMPANY 
 
                                                                                                                         Endorsement No.:    7 
 
                                                                                                                         Bond Number:    82126649 
 
 
 
NAME OF ASSURED: BLACKROCK EQUITY - BOND COMPLEX     
 
                                                                       CO-SURETY ENDORSEMENT     
 
   is agreed that this Bond is amended as follows:     
 
 .    By adding to Section 1., Definitions, the following:     
             
    “s.    Controlling Company means VIGILANT INSURANCE COMPANY.     
         
    t.    Company means, unless otherwise specified, each insurance company, including the 
        Controlling Company, executing this Endorsement.     
         
    u.    Companies means, unless otherwise specified, all of the insurance companies, including the 
        Controlling Company, executing this Endorsement.”     
 
 .    By adding to Section 5., Limit of Liability/Non-Reduction and Non-Accumulation of Liability, the 
    following:     
 
    “Each COMPANY shall be liable only for such proportion of any Single Loss as the LIMIT OF 
    LIABILITY underwritten by such Company, as specified in this Endorsement, bears to the LIMIT OF 
    LIABILITY as stated in ITEM 2. of the DECLARATIONS, but in no event shall any Company be liable 
    for an amount greater than that underwritten by it.”     
 
 .    By adding to Section 7., Notice To Company-Proof-Legal Proceedings Against Company, the following: 
         
    g.    In the absence of a request from any Company to pay premiums directly to it, premiums for this 
        Bond may be paid to the Controlling Company for the account of all Companies. 
         
    h.    In the absence of a request from any Company that notice of claim and proof of loss be given to 
        or filed directly with it, the ASSURED giving such notice to and the filing of such proof with the 
        Controlling Company shall be deemed to be in compliance with the conditions of this Bond for 
        the giving of notice of loss and the filing of proof of loss, if given and filed in accordance with said 
        conditions.”     
 
 .    By adding to Section 13., Termination, the following:     
 
    “The Controlling Company may give notice in accordance with the terms of this Bond terminating the 
    Bond as an entirety or as to any Employee or ASSURED, and any notice so given shall terminate the 
    liability of all Companies as an entirety or as to such Employee or ASSURED, as the case may be. 
 
    Any Company other than the Controlling Company may give notice in accordance with the terms of 
    this Bond, terminating the entire liability of such other Company under this Bond or as to any person or 
    entity.     
 
    In the absence of a request from any Company that notice of termination by the ASSURED of this 
    Bond in its entirety may be given to or filed directly with it, the giving of such notice in accordance with 
    the terms of this Bond to the Controlling Company shall terminate the liability of all Companies as an 
    entirety. The ASSURED may terminate the entire liability of any Company, under this Bond by giving 
    notice of such termination to that Company and by sending a copy of such notice to the Controlling 
    Company.     

ICAP Bond
Form 17-02-2836 (Ed. 5-02) Page 1


    In the event of the termination of this Bond as an entirety, no Company shall be liable to the ASSURED 
    for a greater proportion of any return premium due the ASSURED than the LIMIT OF LIABILITY 
    underwritten by that Company bears to the LIMIT OF LIABILITY as stated in ITEM 2. of the 
    DECLARATIONS.     
 
    In the event of the termination of this Bond as to any Company, such Company alone shall be liable to 
    the ASSURED for any return premium due the ASSURED on account of such termination. The 
    termination of the attached Bond as to any Company other than the Controlling Company shall not 
    terminate or otherwise affect the liability of the other Companies under this Bond.” 
 
5.    By adding the following Section:     
    “Section 18.    Controlling Company     
 
    The execution by the Controlling Company of the DECLARATIONS, Endorsements 1-6, shall 
    constitute execution by all the Companies signing this Endorsement. 
 
    In the event this Bond is modified during the BOND PERIOD, the Controlling Company shall notify 
    the Companies or their respective representatives, in writing, of such change. Each Company shall 
    be deemed to agree to such modification, unless such Company notifies the Controlling Company or 
    the Controlling Company’s representative in writing, that they do not agree to such modification. If a 
    Company fails to object to a modification within fifteen (15) days of receipt of notice from the 
    Controlling Company, such Company shall be deemed to agree to such modification.” 
 
This Endorsement applies to loss discovered after 12:01 a.m. on November 1, 2007. 
 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 
 
Underwritten for a SINGLE LOSS    VIGILANT INSURANCE COMPANY 
LIMIT OF LIABILITY of $25,000,000    Controlling Company 
            CHUBB & SON 
            A division of Federal Insurance Company 
            Manager 

Date: February 4, 2008

Underwritten for a SINGLE LOSS    National Union Fire Insurance Company of 
LIMIT OF LIABILITY of $22,500,000    Pittsburgh, PA 
 
 
    By 
                                           Attorney-in-Fact 


  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. 

Form 10-02-1281 (Ed. 1/2003) 


                                                 IMPORTANT NOTICE TO POLICYHOLDERS 
 
 
 
                   All of the members of the Chubb Group of Insurance companies doing business in the United 
States (hereinafter “Chubb”) distribute their products through licensed insurance brokers and agents 
(“producers”). Detailed information regarding the types of compensation paid by Chubb to producers on 
US insurance transactions is available under the Producer Compensation link located at the bottom of the 
page at www.chubb.com, or by calling 1-866-588-9478. Additional information may be available from your 
producer. 
 
                   Thank you for choosing Chubb. 

10-02-1295 (ed. 5/2007)


  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.

Form 14-02-12160 (ed. 7/2006)


                                                                                                                                             VIGILANT INSURANCE COMPANY 
                                                                                                                                             Endorsement No.:    8 
                                                                                                                                             Bond Number:    82126649 
NAME OF ASSURED: BLACKROCK EQUITY - BOND COMPLEX     
 
                                                                                             DELETE AN ENDORSEMENT     
It is agreed that this Bond is amended by deleting Endorsement Number(s) 1 in its entirety. 
 
 
This Endorsement applies to loss discovered after 12:01 a.m. on December 17, 2007. 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 


ICAP Bond

Form 17-02-5647 (Ed. 11-03)


                                                                                                                                             VIGILANT INSURANCE COMPANY 
 
                                                                                                                                             Endorsement No:    9 
 
                                                                                                                                             Bond Number:    82126649 
 
NAME OF ASSURED: BLACKROCK EQUITY - BOND COMPLEX     
 
 
 
                                                                       AMEND NAME OF ASSURED ENDORSEMENT     
 
It is agreed that NAME OF ASSURED of the DECLARATIONS for this Bond is amended to include the 
following:     
 
 BlackRock Bond Allocation Target Shares     
 BlackRock Balanced Capital Fund, Inc.     
 Master Basic Value LLC     
 BlackRock Basic Value Fund, Inc.     
 BlackRock California Municipal Series Trust     
 BlackRock Commodity Strategies Fund     
 BlackRock Equity Dividend Fund     
 BlackRock EuroFund     
 BlackRock Multi-State Municipal Series Trust     
 BlackRock Focus Growth Fund, Inc. (formerly BR Focus Twenty)     
 BlackRock Focus Value Fund, Inc.     
 BlackRock Fundamental Growth Fund, Inc.     
 BlackRock Funds II     
 BlackRock Global Allocation Fund, Inc.     
 BlackRock Global Dynamic Equity Fund     
 BlackRock Global Growth Fund, Inc.     
 BlackRock Global SmallCap Fund, Inc.     
 BlackRock Municipal Bond Fund, Inc.     
 BlackRock Municipal Series Trust     
 BlackRock International Value Trust     
 BlackRock Mid Cap Value Opportunities Series Inc.     
 BlackRock Natural Resources Trust     
 BlackRock Short-Term Bond Series, Inc.     
 BlackRock Utilities & Telecommunications Fund, Inc.     
 BlackRock Value Opportunities Fund, Inc.     
 BlackRock World Income Fund, Inc.     
 BlackRock Bond Fund, Inc.     
 Master Bond LLC     
 FDP Series, Inc.     
 Managed Account Series     
 Master Commodity Strategies LLC     
 Master Focus Growth LLC (f/k/a Master Focus Twenty LLC)     
 Master Value Opportunities LLC     
 BlackRock Principal Protected Trust     
 BlackRock Series Fund, Inc.     
 Short-Term Bond Master LLC     
 BlackRock Variable Series Funds, Inc.     

ICAP Bond   
Form 17-02-6272 (Ed. 8-04)  Page 1 


This Endorsement applies to loss discovered after 12:01 a.m. on December 17, 2007. 
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED. 


ICAP Bond   
Form 17-02-6272 (Ed. 8-04)  Page 2 


     JOINT FIDELITY BOND AGREEMENT BY AND AMONG
THE FUNDS IN THE BLACKROCK EQUITY-BOND COMPLEX

     JOINT FIDELITY BOND AGREEMENT (the “Agreement”), dated as of November 1, 2007, by and among the funds (each, a “Fund” and collectively, the “Funds”) in the BlackRock Equity-Bond Complex listed on Schedule A attached hereto, as the same may be amended from time to time, all of which are named insureds on a certain fidelity bond underwritten by Vigilant Insurance Company (“Vigilant”), a member of the Chubb Group of Insurance Companies, covering certain acts relating to the Funds (the “Bond”).

W I T N E S S E T H

     WHEREAS, each of the Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”);

     WHEREAS, by the terms of Rule 17g-1 under the 1940 Act, the Funds are required to provide and to maintain in effect a bond against larceny and embezzlement by their officers and employees. By the terms of the rule, the Funds are authorized to secure the Bond that names all of the Funds as insureds;

     WHEREAS, Rule 17g-1(f) under the 1940 Act requires that a registered management investment company named as an insured on a joint fidelity bond enter into a certain agreement with the other named insureds;

     WHEREAS, a majority of the Board of Directors/Trustees (collectively, the “Board,” the members of which are referred to as “Directors”) of each Fund who are not “interested persons” as defined in Section 2(a)(19) of the 1940 Act have given due consideration to all factors relevant to the form, amount and ratable allocation of premiums of such Bond, and the majority of such Directors have approved the amount, type, form and coverage of the Bond and the portion of the premium payable with respect to each Fund; and

     WHEREAS, the Board has determined that the allocation of the proceeds payable under the Bond as set forth herein (which takes into account the extent to which the share of the premium allocated to each Fund is less than the premium the Fund would have had to pay if it had provided and maintained a single insured bond) is equitable with respect to each Fund and that each Fund will benefit from its respective participation in the Bond in compliance with this Rule.

     NOW, THEREFORE, in consideration of the mutual premises and covenants herein contained and other good and valuable consideration, the receipt of which is hereby acknowledged, it is agreed by and between the Funds hereto as follows:

     1. Joint Insured Bond. The Funds have procured from Vigilant, a reputable fidelity insurance company, the Bond insuring each Fund against larceny and embezzlement of its securities and funds by such of its officers and employees who may, singly or jointly with others, have access to such securities or funds, directly or through authority to draw upon such funds or to direct generally the disposition of such securities. The Bond names each Fund as an insured, and complies with the requirements established by Rule 17g-1 under the 1940 Act.


     2. Amount. The Bond is in an amount, based upon the total assets of each Fund, equal to or in excess of the aggregate of the minimum coverage required for each of the Funds under Rule 17g-1. The minimum coverage required for a Fund under Rule 17g-1(d)(1) shall be referred to herein as the “Minimum Coverage Amount.”

     3. Ratable Allocation of Premium. Each Fund will pay the percentage of the premium due under the Bond which is proportionate to the ratio of its Minimum Coverage Amount to the aggregate amount of the Minimum Coverage Amounts for all of the Funds.

     4. Ratable Allocation of Proceeds.

     (a) In the event any recovery under the Bond is received as a result of a loss sustained by any of the Funds, then each Fund sustaining such loss shall receive an equitable and proportionate share of the recovery, said proportion to be established by the ratio that the claim bears to the total amount claimed by all participants, but at least equal to the amount which each such Fund would have received had it provided and maintained a single insured bond with the Minimum Coverage Amount.

     (b) If the recovery is inadequate to indemnify fully each such Fund sustaining a loss, the recovery shall be allocated among such Funds as follows:

     (i) Each Fund sustaining a loss shall be allocated an amount equal to the lesser of its actual loss or the Minimum Coverage Amount.

     (ii) The remaining portion of the proceeds shall be allocated to each Fund sustaining a loss not fully covered by the allocation under subparagraph (i) in the proportion that each such Fund’s gross assets as of the end of its fiscal quarter preceding the loss bears to the sum of the gross assets of all such Funds. If such allocation would result in any Fund sustaining a loss receiving a portion of the recovery in excess of the loss actually sustained by such Fund, the aggregate of such excess portions shall be allocated among the other Funds whose losses would not be fully indemnified in the same proportion as each such Fund’s gross assets bear to the sum of the gross assets of all Funds entitled to receive a share of the excess (both determined as of the fiscal quarter of each Fund preceding the loss). Any allocation in excess of a loss actually sustained by any such Fund shall be reallocated in the same manner.

     5. Claims and Settlements. Each Fund shall, within ten days after the making of any claim under the Bond, provide the other Funds with written notice of the amount and nature of such claim. Each Fund shall, within ten days after the receipt thereof, provide the other Funds with written notice of the terms of settlement of any claim made under the Bond by such Fund.

     6. Modification and Amendments.

     (a) If a Fund shall determine that the coverage required by Rule 17g-1 for such Fund has changed, or that the amount of the total coverage allocated to such Fund should

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otherwise be modified, it shall so notify the other Funds setting forth the modification which it believes to be appropriate, and the proposed treatment of any increased or return premium.

     (b) Within 60 days after such notice, the Funds shall seek the approval required by Rule 17g-1, and if approvals are obtained, shall effect an amendment to this Agreement and the Bond. Any Fund may terminate this Agreement (except with respect to losses occurring prior to such withdrawal) by giving at least 60 days’ written notice to the other Funds. The Fund(s) terminating the Agreement shall thereafter be removed as a named insured in accordance with Rule 17g-1 and the Fund(s) shall be entitled to receive the pro rata portion of any return of premium paid to the insurance company.

     (c) This Agreement is intended to cover all entities insured under the Bond. Any insured under the Bond that is not currently listed on Schedule A hereto may be added to this Agreement by a written amendment. The Funds hereby consent to additional registered investment companies advised by BlackRock Advisors, LLC and its affiliates being named as an insured under the Bond and the Agreement.

     7. Limitation of Liability for Massachusetts business trusts. The Declaration of Trust for each Fund listed on Schedule A hereto that is organized as a Massachusetts business trust (each, a “Massachusetts Trust”) is on file with the Secretary of the Commonwealth of Massachusetts. This Agreement is executed on behalf of such Massachusetts Trusts by the Trust’s Chief Executive Officer and not individually and the obligations imposed upon each Massachusetts Trust by this Agreement are not binding upon any of the Massachusetts Trust’s respective Board members, officers or shareholders individually but are binding only upon the assets and property of such Massachusetts Trust.

     8. No Assignment. This Agreement is not assignable.

     9. Counterparts. This Agreement may be executed in any number of counterparts which together shall constitute a single instrument.

     10. Governing Law. The Agreement shall be construed in accordance with the laws of the State of New York.

     11. Notices. All Notices and other communications hereunder shall be in writing and shall be addressed to the appropriate Fund at 40 East 52nd Street, New York, NY 10022.

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     IN WITNESS WHEREOF, each Fund has caused the foregoing instrument to be executed by their duly authorized officers, all as of the day and the year first above written.

    /s/ Donald C. Burke
 
  Name: Donald C. Burke
  Title: Chief Executive Officer of each Fund listed
    on Schedule A

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SCHEDULE A

BlackRock Balanced Capital Fund, Inc.
BlackRock Basic Value Fund, Inc.
BlackRock Bond Allocation Target Shares
                   Series C Portfolio
                   Series M Portfolio
                   Series N Portfolio: National Muni
                   Series P Portfolio
                   Series S Portfolio
BlackRock Bond Fund, Inc.
                   BlackRock High Income Fund
                   BlackRock Total Return Fund
BlackRock California Municipal Series Trust*
                   BlackRock California Insured Municipal Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Equity Dividend Fund*
BlackRock EuroFund*
BlackRock Focus Growth Fund, Inc.
BlackRock Focus Value Fund, Inc.
BlackRock Fundamental Growth Fund, Inc.
BlackRock Funds II*
                   Aggressive Growth Prepared Portfolio
                   AMT-Free Municipal Bond Portfolio
                   BlackRock Strategic Portfolio I
                   Conservative Prepared Portfolio
                   Delaware Municipal Bond Portfolio
                   Enhanced Income Portfolio
                   GNMA Portfolio
                   Government Income Portfolio
                   Growth Prepared Portfolio
                   High Yield Bond Portfolio
                   Inflation Protected Bond Portfolio
                   Intermediate Bond Portfolio II
                   Intermediate Government Bond Portfolio
                   International Bond Portfolio
                   Kentucky Municipal Bond Portfolio
                   Low Duration Bond Portfolio
                   Managed Income Portfolio
                   Moderate Prepared Portfolio
                   Ohio Municipal Bond Portfolio
                   Prepared Portfolio 2010
                   Prepared Portfolio 2015
                   Prepared Portfolio 2020
                   Prepared Portfolio 2025

- 5 -


                   Prepared Portfolio 2030
                   Prepared Portfolio 2035
                   Prepared Portfolio 2040
                   Prepared Portfolio 2045
                   Prepared Portfolio 2050
                   Total Return Portfolio II
                   Long Duration Bond Portfolio
                   Emerging Market Debt Portfolio
                   Strategic Income Portfolio
                   Income Portfolio
                   Income Builder Portfolio
BlackRock Global Allocation Fund, Inc.
BlackRock Global Dynamic Equity Fund
BlackRock Global Growth Fund, Inc.
BlackRock Global SmallCap Fund, Inc.
BlackRock Municipal Series Trust*
                   BlackRock Intermediate Municipal Fund
BlackRock International Value Trust*
                   BlackRock International Value Fund
BlackRock Mid Cap Value Opportunities Series, Inc.
                   BlackRock Mid Cap Value Opportunities Fund
BlackRock Multi-State Municipal Series Trust*
                   BlackRock Florida Municipal Bond Fund
                   BlackRock New Jersey Municipal Bond Fund
                   BlackRock New York Municipal Bond Fund
                   BlackRock Pennsylvania Municipal Bond Fund
BlackRock Municipal Bond Fund, Inc.
                   BlackRock High Yield Municipal Fund
                   BlackRock Municipal Insured Fund
                   BlackRock National Municipal Fund
                   BlackRock Short-Term Municipal Fund
BlackRock Natural Resources Trust*
BlackRock Principal Protected Trust
                   BlackRock Basic Value Principal Protected Fund
                   BlackRock Core Principal Protected Fund
                   BlackRock Fundamental Growth Principal Protected Fund
BlackRock Series Fund, Inc.
                   BlackRock Balanced Capital Portfolio
                   BlackRock Bond Portfolio
                   BlackRock Fundamental Growth Portfolio
                   BlackRock Global Allocation Portfolio
                   BlackRock Government Income Portfolio
                   BlackRock High Income Portfolio
                   BlackRock Large Cap Core Portfolio
                   BlackRock Money Market Portfolio
BlackRock Short-Term Bond Series, Inc.
                   BlackRock Short-Term Bond Fund
BlackRock Utilities & Telecommunications Fund, Inc.

- 6 -


BlackRock Value Opportunities Fund, Inc.
BlackRock Variable Series Funds, Inc.
                   BlackRock Balanced Capital V.I. Fund
                   BlackRock Basic Value V.I. Fund
                   BlackRock Bond V.I. Fund
                   BlackRock Fundamental Growth V.I. Fund
                   BlackRock Global Allocation V.I. Fund
                   BlackRock Global Growth V.I. Fund
                   BlackRock Government Income V.I. Fund
                   BlackRock High Income V.I. Fund
                   BlackRock International Value V.I. Fund
                   BlackRock Large Cap Core V.I. Fund
                   BlackRock Large Cap Growth V.I. Fund
                   BlackRock Large Cap Value V.I. Fund
                   BlackRock Money Market V.I. Fund
                   BlackRock S&P 500 V.I. Fund
                   BlackRock Utilities and Telecommunications V.I. Fund
                   BlackRock Value Opportunities V.I. Fund
BlackRock World Income Fund, Inc.
FDP Series, Inc.
                   Franklin Templeton Total Return FDP Fund
                   Marsico Growth FDP Fund
                   MFS Research International FDP Fund
                   Van Kampen Value FDP Fund
Managed Account Series
                   Global SmallCap Portfolio
                   High Income Portfolio
                   MidCap Value Opportunities Portfolio
                   US Mortgage Portfolio
Master Basic Value LLC
Master Bond LLC
                   Master Total Return Portfolio
Master Commodity Strategies LLC
Master Focus Growth LLC
Master Value Opportunities LLC
Short-Term Bond Master LLC
                   Short-Term Bond Master Portfolio


*      Denotes a Fund organized as a Massachusetts business trust.

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ASSISTANT SECRETARY’S CERTIFICATE

                    I, Denis R. Molleur, the duly elected and acting Assistant Secretary of each of funds listed on Schedule A hereto (each, a “Fund” and collectively, the “Funds”), hereby certify that the following resolutions regarding the Funds’ fidelity bond were duly adopted by the Board of Directors/Trustees of each Fund on November 1, 2007, are in full force and effect and have been so since such date.

          RESOLVED, that the terms and amount of the of the joint insured fidelity bond to be led by Vigilant Insurance Company, a member of the Chubb Group of Insurance Companies. (“Chubb”), in the aggregate amount of $192,500,000 covering registered investment companies advised or managed by BlackRock Advisors, LLC, with an approximate allocation to each Fund as set forth in the materials provided to the Board, be, and they hereby are, approved; and

          FURTHER RESOLVED, that the proper officers of each Fund are authorized to pay the amount of the total premium allocated to the Fund for the period payable with respect to such bond as described in the Joint Fidelity Bond Agreement and outlined in the attached Allocation of Premium; and

          FURTHER RESOLVED, that the amount of the fidelity bond coverage is approved after consideration of all factors deemed relevant by the Board, including, but not limited to, the other parties named as insureds, the nature of the business activities of such other parties, the amount of the joint insured bond, the amount of the premium for such bond, the ratable allocation of the premium among the parties named as insured, the extent to which the share of the premium allocated to each Fund is less than the premium the Fund would have had to pay if it had provided and maintained a single insured bond, the value of the assets of the Fund, the type and terms of the arrangements made for custody of the Fund’s assets, and the nature of the securities in the Fund’s portfolio; and

          FURTHER RESOLVED, that the Board determined that the benefits of obtaining fidelity bond coverage from Chubb, including the opportunity to obtain stable, low-cost insurance coverage from Chubb, justify paying the Reserve Premium and making the commitments for additional payments to Chubb, including acceptance of restrictions upon the withdrawal of the Reserve Premium; and

          FURTHER RESOLVED, that the proper officers of each Fund be, and each hereby is, authorized and directed to execute such other documents and take such other action as may be deemed necessary or desirable to effect the Fund’s purchase of a fidelity bond from Chubb including but not limited to executing a signature commitment to Chubb and obtaining a Letter of Credit from State Street Bank and Trust Company; and

          FURTHER RESOLVED, that the form of Joint Insured Fidelity Bond Agreement between the Funds and the other named joint insureds, in substantially the form as previously provided to the Board, is approved with such further changes therein as an officer of a Fund may deem necessary or advisable with the advice of counsel, such officers’ execution of the Agreement to be conclusive evidence of this determination; and

          FURTHER RESOLVED, that an officer of a Fund is authorized to execute and deliver such Agreement on behalf of the Fund; and

          FURTHER RESOLVED, that the fidelity bond premiums paid by each Fund pursuant to Rule 17g-1 under the 1940 Act shall be reallocated from time to time to allow for changes during the policy year arising from the addition of joint insureds to the bond, the growth or loss of gross assets of the Fund during the year requiring additional or reduced coverage in accordance with Rule 17g-1(d) under the 1940 Act, or the liquidation or merger of named insureds; and

          FURTHER RESOLVED, that the following practices are hereby adopted as the procedures for allocating and reallocating fidelity bond premium expense among the named joint insureds: (i) the joint


  fidelity bond premium expense allocated to each named insured will be based on the amount of coverage assigned to each named insured from time to time, and (ii) coverage for the Fund under the joint insured bond will be based on the amount of coverage required by Rule 17g-1 (d) under the 1940 Act from time to time plus additional coverage to allow for reasonable growth of the Fund; and

          FURTHER RESOLVED, that the proper officers of each Fund be, and each hereby is, authorized and directed to implement the foregoing procedures by, among other things: (i) monitoring the amount of fidelity bond coverage assigned to the Fund and, if necessary, increasing or decreasing such coverage to comply with the Board’s procedures, and (ii) if necessary, reallocating the joint fidelity bond expense in accordance with the foregoing procedures for allocating the premium adopted by the Board; and

          FURTHER RESOLVED, that the Secretary of each Fund is hereby designated as the officer responsible for making the necessary filings and giving the notices with respect to such bond required by paragraph (g) of Rule 17g-1 under the 1940 Act; and

          FURTHER RESOLVED, that the proper officers of each Fund are authorized and directed to take such action with respect to obtaining additional fidelity bond coverage as they deem it necessary or appropriate pursuant to Rule 17g-1 under the 1940 Act; and

  By: /s/ Denis Molleur
Denis R. Molleur, Esq.
Assistant Secretary

Dated: June 10, 2008


 
  -2-  

Schedule A

Fund Net Assets as of
September 30, 2007
(in dollars)
   MinimumBond
Requirementunder
Rule 17g-1
(in dollars)
BlackRock Bond Allocation Target Shares 1,001,576,435   1,250,000
BlackRock Balanced Capital Fund, Inc. 2,398,637,964   1,700,000
Master Basic Value LLC/BlackRock Basic Value Fund, Inc. 8,228,525,888   2,500,000
Master Commodity Strategies LLC/BlackRock Commodity Strategies Fund 50,535,642   400,000
BlackRock California Municipal Series Trust 389,921,602   750,000
BlackRock Equity Dividend Fund 1,721,703,729   1,500,000
BlackRock EuroFund 1,007,860,173   1,250,000
BlackRock Multi-State Municipal Series Trust 1,267,356,103   1,250,000
Master Focus Growth LLC/BlackRock Focus Growth Fund, Inc. 76,389,437   450,000
BlackRock Focus Value Fund, Inc. 343,181,926   750,000
BlackRock Fundamental Growth Fund, Inc. 4,720,009,556   2,500,000
BlackRock Funds II 11,559,939,955   2,500,000
BlackRock Global Allocation Fund, Inc. 21,742,844,687   2,500,000
BlackRock Global Dynamic Equity Fund 1,332,592,588   1,250,000
BlackRock Global Growth Fund, Inc. 784,747,776   1,000,000
BlackRock Global SmallCap Fund, Inc 1,453,625,089   1,250,000
BlackRock Municipal Bond Fund, Inc. 2,835,702,671   1,900,000
BlackRock Municipal Series Trust 193,077,392   600,000
BlackRock International Value Trust 2,109,427,162   1,700,000
BlackRock Mid Cap Value Opportunities Series Inc. 445,050,776   750,000
BlackRock Natural Resources Trust 500,533,380   900,000
Short-Term Bond Master LLC/BlackRock Short-Term Bond Series, Inc. 688,602,657   900,000
BlackRock Utilities & Telecommunications Fund, Inc. 173,867,267   600,000
Master Value Opportunities LLC/BlackRock Value Opportunities Fund, Inc. 2,422,070,613   1,700,000
BlackRock World Income Fund, Inc. 162,963,808   600,000
Master Bond LLC/BlackRock Bond Fund, Inc. 4,434,574,306   2,500,000
FDP Series, Inc. 712,959,254   900,000
Managed Account Series 534,243,803   900,000
BlackRock Principal Protected Trust 406,760,333   750,000
BlackRock Series Fund, Inc. 2,367,082,348   1,700,000
BlackRock Variable Series Funds, Inc. 5,473,973,236   2,500,000

 
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