IMPORTANT NOTICEINDEPENDENT AGENT AND BROKER COMPENSATION
NO COVERAGE IS PROVIDED BY THIS NOTICE. THIS NOTICE DOES NOT AMEND ANY PROVISION OF YOUR POLICY. YOU SHOULD REVIEW YOUR ENTIRE POLICY CAREFULLY FOR COMPLETE INFORMATION ON THE COVERAGES PROVIDED AND TO DETERMINE YOUR RIGHTS AND DUTIES UNDER YOUR POLICY. PLEASE CONTACT YOUR AGENT OR BROKER IF YOU HAVE ANY QUESTIONS ABOUT THIS NOTICE OR ITS CONTENTS. IF THERE IS ANY CONFLICT BETWEEN YOUR POLICY AND THIS NOTICE, THE PROVISIONS OF YOUR POLICY PREVAIL.
For information about how Travelers compensates independent agents and brokers, please visit www.travelers.com, call our toll-free telephone number, 1-866-904-8348, or you may request a written copy from Marketing at One Tower Square, 2GSA, Hartford, CT 06183.
ND044 Rev. 1-08
Page 1 of 1
HOW TO REPORT LOSSES, CLAIMS, OR POTENTIAL CLAIMS TO TRAVELERS
Reporting new losses, claims, or potential claims promptly can be critical. It helps to resolve covered losses or claims as quickly as possible and often reduces the overall cost. Prompt reporting:
| better protects the interests of all parties; |
| helps Travelers to try to resolve losses or claims more quickly; and |
| often reduces the overall cost of a loss or claimlosses or claims reported more than five days after they happen cost on average 35% more than those reported earlier. |
Report losses, claims, or potential claims to Travelers easily and quickly by fax, U S mail, or email.
FAX
Use this number to report a loss, claim, or potential claim by fax toll free.
1-888-460-6622
US MAIL
Use this address to report a loss, claim, or potential claim by U S Mail.
Bond-FPS Claims Department
Travelers
Mail Code NB08F
385 Washington Street
Saint Paul, Minnesota 55102
Use this address to report a loss, claim, or potential claim by email.
Pro.E&O.Claim.Reporting@SPT.com
This is a general description of how to report a loss, claim, or potential claim under this policy or bond. This description does not replace or add to the terms of this policy or bond. The policy or bond alone determines the scope of coverage. Please read it carefully for complete information on coverage. Contact your agent or broker if you have any questions about coverage.
a | 2006 The St. Paul Travelers Companies, Inc. All Rights Reserved |
ND059 Ed. 11-06
-1-
RE: Risk Management PLUS+ Online from Travelers Bond & Financial Products
(www.rmplusonline.com)
Thank you for choosing Travelers Bond & Financial Products for your insurance needs. Travelers is a market leader in providing management liability coverage that is in-synch with your business. As your risks evolve, so do we through our ability to provide you with responsive risk management services.
Travelers Bond & Financial Products is pleased to provide you with Risk Management PLUS+ Online, the industrys most comprehensive program for mitigating your management liability exposures. The site includes risk management tools for the following coverage related exposures:
| Employment Practices Liability |
| Fiduciary Liability |
| Directors & Officers Liability |
| Crime |
| Kidnap and Ransom |
| Identity Fraud Expense Reimbursement |
Risk Management PLUS+ Online is a flexible, comprehensive loss prevention program specifically designed for Travelers Bond & Financial Products customers and is available to you at no additional cost. Included in the site is a library of articles, checklists and training on relevant risk mitigation topics for the management liability areas mentioned above.
Highlights of Risk Management PLUS+ Online services include:
| Web-based risk management training |
| Weekly articles on current issues |
| Model policies and forms for downloading or printing that cover major risks associated with the workplace |
The attached Risk Management PLUS+ Online Registration Instructions contain easy, step-by-step instructions to register for this valuable tool. For more information, call 1-888-712-7667 and ask for your Risk Management PLUS+ Online representative. Its that simple.
We strongly encourage you to take full advantage of this program. Once again, thank you for choosing Travelers Bond & Financial Products.
RM-IA Ed. 6-08
Page 1 of 2
Instructions for Registration & Orientation to Risk Management PLUS+ Online
Registration for Site Administrators:
The Site Administrator is the person in your organization who will oversee Risk Management PLUS+ Online for the organization. The Site Administrator is typically a person who leads human resources and/or financial functions or is responsible for legal matters pertaining to personnel. The Site Administrator may add other Site Administrators later to assist with their responsibilities. To register:
1. | Go to www.rmplusonline.com. |
2. | In the Sign-In box, click Register. |
3. | Enter the password/passcode: TRVP300300 (Please note there are 4 letters followed by 6 numbers in the code) |
4. | Fill in the Registration Information and click Submit. |
5. | Your organization is registered, and you are registered as Site Administrator. |
Learning to Navigate the Site:
1. | Go to www.rmplusonline.com. On each page, you will see a box outlined in blue that contains the instructions for use of that page. |
2. | If you have any questions, just click on Contact Us on the front page. Enter your question in the form provided, and the System Administrator will get back to you quickly with the answer. |
3. | You can also schedule a live walk-through of the site by sending a request for a walk-through via the contact link on the front page. |
RM-IA Ed. 6-08
Page 2 of 2
INVESTMENT COMPANY BLANKET BOND
St. Paul Fire and Marine Insurance Company
St. Paul, Minnesota 55102-1396
(A Stock Insurance Company, herein called Underwriter)
DECLARATIONS | BOND NO. ZBN-14R74012-12-N2 |
Item 1. Name of Insured (herein called Insured):
The Charles Schwab Family of Funds
Principal Address:
211 Main Street
San Francisco, CA 94105
Item 2. | Bond Period from 12:01 a.m. on 06/30/12 to 12:01 a.m. on 06/30/13 the effective date of the termination or cancellation of the bond, standard time at the Principal Address as to each of said dates. |
Item 3. | Limit of Liability |
Subject to Sections 9, 10, and 12 hereof:
Limit of Liability | Deductible Amount |
|||||||
Insuring Agreement AFIDELITY |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement BAUDIT EXPENSE |
$ | 50,000 | $ | 0 | ||||
Insuring Agreement CPREMISES |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement DTRANSIT |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement EFORGERY OR ALTERATION |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement FSECURITIES |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement GCOUNTERFEIT CURRENCY |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement HSTOP PAYMENT |
$ | 500,000 | $ | 10,000 | ||||
Insuring Agreement IUNCOLLECTIBLE ITEMS OF DEPOSIT |
$ | 500,000 | $ | 10,000 | ||||
OPTIONAL COVERAGES ADDED BY RIDER: |
||||||||
Insuring Agreement JUnauthorized Signature |
$ | 500,000 | $ | 10,000 | ||||
Insuring Agreement KComputer Systems |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement LTelefacsimile Systems |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement MVoice-Initiated Transactions |
$ | 25,000,000 | $ | 100,000 | ||||
Insuring Agreement NAutomated Phone Systems |
$ | 25,000,000 | $ | 100,000 |
If Not Covered is inserted above opposite any specified Insuring Agreement or Coverage, such Insuring Agreement or Coverage and any other reference thereto in this bond shall be deemed to be deleted therefrom.
Item 4. | Offices or Premises CoveredOffices acquired or established subsequent to the effective date of this bond are covered according to the terms of General Agreement A. All the Insureds offices or premises in existence at the time this bond becomes effective are covered under this bond except the offices or premises located as follows: None |
ICB001 Rev. 7/04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 1 of 2
Item 5. | The liability of the Underwriter is subject to the terms of the following endorsements or riders attached hereto: Endorsements or Riders No. 1 through |
ICB010 Ed. 7-04, ICB011 Rev. 2-10, ICB012 Ed. 7-04, ICB013 Ed. 7-04, ICB014 Ed. 7-04, ICB016 Ed. 7-04, ICB019 Ed. 7-04, ICB020 Ed. 7-04, ICB026 Ed. 7-04, ICB031 Ed. 7-04, ICB050 Ed. 7-04, MEL2555 Ed. 3-05, MEL2684 Ed. 3/05, MEL3274 Ed. 7-05, MEL3279 Ed. 5/05, MEL5483 Ed. 10/07, MEL7428 Ed. 04/10, ICB042 Ed. 7-04, MEL2899 Ed. 5/05
Item 6. | The Insured by the acceptance of this bond gives notice to the Underwriter terminating or canceling prior bonds or policy(ies) No.(s) 494PB0873 such termination or cancellation to be effective as of the time this bond becomes effective. |
IN WITNESS WHEREOF, the Company has caused this bond to be signed by its President and Secretary and countersigned by a duly authorized representative of the Company.
Countersigned: | ST. PAUL FIRE AND MARINE INSURANCE COMPANY
| |||
Authorized Representative Countersigned At |
President |
Secretary | ||
Countersignature Date | /s/ Brian MacClean | /s/ Wendy Skjerven |
ICB001 Rev. 7/04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 2 of 2
INVESTMENT COMPANY BLANKET BOND
The Underwriter, in consideration of an agreed premium, and subject to the Declarations made a part hereof, the General Agreements, Conditions and Limitations and other terms of this bond, agrees with the Insured, in accordance with the Insuring Agreements hereof to which an amount of insurance is applicable as set forth in Item 3 of the Declarations and with respect to loss sustained by the Insured at any time but discovered during the Bond Period, to indemnify and hold harmless the Insured for:
INSURING AGREEMENTS
ICB005 Ed. 7-04
ª 2004 The Travelers Companies, Inc.
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GENERAL AGREEMENTS
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THE FOREGOING INSURING AGREEMENTS AND GENERAL
AGREEMENTS ARE SUBJECT TO THE FOLLOWING
CONDITIONS AND LIMITATIONS:
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ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||||
* ISSUED TO | ||||||||
TheCharles Schwab Family of Funds |
Named Insured Endorsement
It is agreed that:
1. | From and after the time this rider becomes effective the Insured under the attached bond are: |
All Schwab and Laudus Funds within the following Groups:
Charles Schwab Family of Funds
Schwab Investments
Schwab Capital Trust
Schwab Annuity Portfolios
Laudus Trust
Laudus Institutional Trust
2. | The first named Insured shall act for itself and for each and all of the Insured for all the purposes of the attached bond. |
3. | Knowledge possessed or discovery made by any Insured or by any partner or officer thereof shall for all the purposes of the attached bond constitute knowledge or discovery by all the Insured. |
4. | If, prior to the termination of the attached bond in its entirety, the attached bond is terminated as to any Insured, there shall be no liability for any loss sustained by such Insured unless discovered before the time such termination as to such Insured becomes effective. |
5. | The liability of the Underwriter for loss or losses sustained by any or all of the Insured shall not exceed the amount for which the Underwriter would be liable had all such loss or losses been sustained by any one of the Insured. Payment by the Underwriter to the first named Insured of loss sustained by any Insured shall fully release the Underwriter on account of such loss. |
6. | If the first named Insured ceases for any reason to be covered under the attached bond, then the Insured next named shall thereafter be considered as the first named Insured for all the purposes of the attached bond. |
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB010 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 1 of 1
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
COMPUTER SYSTEMS
It is agreed that:
1. | The attached bond is amended by adding an additional Insuring Agreement as follows: |
INSURING AGREEMENT K COMPUTER SYSTEMS
Loss resulting directly from a fraudulent
(1) | entry of data into, or |
(2) | change of data elements or program within, |
a Computer System listed in the SCHEDULE below, provided the fraudulent entry or change causes
(a) | Property to be transferred, paid or delivered, |
(b) | an account of the Insured, or of its customer, to be added, deleted, debited or credited, or |
(c) | an unauthorized account or a fictitious account to be debited or credited, |
and provided further, the fraudulent entry or change is made or caused by an individual acting with the
manifest intent to
(i) | cause the Insured to sustain a loss, and |
(ii) | obtain financial benefit for that individual or for other persons intended by that individual to receive financial benefit. |
SCHEDULE
All systems utilized by the Insured
2. | As used in this Rider, Computer System means |
(a) | computers with related peripheral components, including storage components, wherever located, |
(b) | systems and applications software, |
(c) | terminal devices, and |
(d) | related communication networks |
by which data are electronically collected, transmitted, processed, stored and retrieved.
3. | In addition to the exclusions in the attached bond, the following exclusions are applicable to the Computer Systems Insuring Agreement: |
(a) | loss resulting directly or indirectly from the theft of confidential information, material or data; and |
(b) | loss resulting directly or indirectly from entries or changes made by an individual authorized to have access to a Computer System who acts in good faith on instructions, unless such instructions are given to that individual by a software contractor (or by a partner, officer or employee thereof) authorized by the Insured to design, develop, prepare, supply, service, write or implement programs for the Insureds Computer System; and |
ICB011 Rev. 2-10
ª 2010 The Travelers Indemnity Company
Page 1 of 2
(c) | loss discovered by the Insured before this Rider is executed or after coverage under this Rider terminates. |
4. | Solely with respect to the Computer Systems Insuring Agreement, the following replaces SECTION 9, NON-REDUCTION AND NON-ACCUMULATION OF LIABILITY AND TOTAL LIABILITY, (a)(e), of the CONDITIONS AND LIMITATIONS: |
(a) | all fraudulent activity of any one person, or in which any one person is implicated, whether or not that person is specifically identified, shall be deemed to be one loss, or |
(b) | a series of losses involving unidentified persons but arising from the same method of operation shall be deemed to be one loss, and |
5. | The following is added to the OPTIONAL COVERAGE ADDED BY RIDER section of Item 3. of the DECLARATIONS: |
Limit of Liability | Deductible Amount | |||
Insuring Agreement K Computer Systems | 25,000,000 | $100,000 |
6. | The following is added to the CONDITIONS AND LIMITATIONS: |
If any loss is covered under the Computer Systems Insuring Agreement and any other Insuring Agreement or Coverage, the maximum amount payable for such loss shall not exceed the largest amount available under any one such Insuring Agreement or Coverage.
7. | The following is added to SECTION 13. TERMINATION of the CONDITIONS AND LIMITATIONS: |
Coverage under this Rider may also be terminated or canceled without canceling the bond as an entirety
(a) | 60 days after receipt by the Insured of written notice from the Underwriter of its desire to terminate or cancel coverage under this Rider, or |
(b) | immediately upon receipt by the Underwriter of a written request from the Insured to terminate or cancel coverage under this Rider. |
The Underwriter shall refund to the Insured the unearned premium for the coverage under this Rider. The refund shall be computed at short rates if this Rider be terminated or canceled or reduced by notice from, or at the instance of, the Insured.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB011 Rev.2-10
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO The Charles Schwab Family of Funds |
UNAUTHORIZED SIGNATURES
It is agreed that:
1. | The attached bond is amended by inserting an additional Insuring Agreement as follows: |
INSURING AGREEMENT J UNAUTHORIZED SIGNATURE
(A) | Loss resulting directly from the Insured having accepted, paid or cashed any check or withdrawal order, draft, made or drawn on a customers account which bears the signature or endorsement of one other than a person whose name and signature is on the application on file with the Insured as a signatory on such account. |
(B) | It shall be a condition precedent to the Insureds right of recovery under this Rider that the Insured shall have on file signatures of all persons who are authorized signatories on such account. |
2. | The total liability of the Underwriter under Insuring Agreement J is limited to the sum of |
Five Hundred Thousand Dollars ($500,000 ), it
being understood, however, that such liability shall be part of and not in addition to the Limit of Liability stated in Item 3 of the Declarations of the attached bond or amendment thereof.
3. | With respect to coverage afforded under this Rider, the Deductible Amount shall be |
Ten Thousand Dollars ($10,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB012 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO The Charles Schwab Family of Funds |
TELEFACSIMILE TRANSACTIONS
It is agreed that:
1. | The attached Bond is amended by adding an additional Insuring Agreement as follows: |
INSURING AGREEMENT L TELEFACSIMILE TRANSACTIONS
Loss caused by a Telefacsimile Transaction, where the request for such Telefacsimile Transaction is unauthorized or fraudulent and is made with the manifest intent to deceive; provided, that the entity which receives such request generally maintains and follows during the Bond Period all Designated Fax Procedures with respect to Telefacsimile Transactions. The isolated failure of such entity to maintain and follow a particular Designated Fax Procedure in a particular instance will not preclude coverage under this Insuring Agreement, subject to the exclusions herein and in the Bond.
2. | Definitions. The following terms used in this Insuring Agreement shall have the following meanings: |
a. | Telefacsimile System means a system of transmitting and reproducing fixed graphic material (as, for example, printing) by means of signals transmitted over telephone lines. |
b. | Telefacsimile Transaction means any Fax Redemption, Fax Election, Fax Exchange, or Fax Purchase. |
c. | Fax Redemption means any redemption of shares issued by an Investment Company which is requested |
through | a Telefacsimile System. |
d. | Fax Election means any election concerning dividend options available to Fund shareholders which is |
requested | through a Telefacsimile System. |
e. | Fax Exchange means any exchange of shares in a registered account of one Fund into shares in an identically registered account of another Fund in the same complex pursuant to exchange privileges of the two Funds, which exchange is requested through a Telefacsimile System. |
f. | Fax Purchase means any purchase of shares issued by an Investment Company which is requested through a Telefacsimile System. |
g. | Designated Fax Procedures means the following procedures: |
(1) | Retention: All Telefacsimile Transaction requests shall be retained for at least six (6) months. Requests shall be capable of being retrieved and produced in legible form within a reasonable time after retrieval is requested. |
(2) | Identity Test: The identity of the sender in any request for a Telefacsimile Transaction shall be tested before executing that Telefacsimile Transaction, either by requiring the sender to include on the face of the request a unique identification number or to include key specific account information. Requests of Dealers must be on company letterhead and be signed by an authorized representative. Transactions by occasional users are to be verified by telephone confirmation. |
ICB013 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 1 of 2
(3) | Contents: A Telefacsimile Transaction shall not be executed unless the request for such Telefacsimile Transaction is dated and purports to have been signed by (a) any shareholder or subscriber to shares issued by a Fund, or (b) any financial or banking institution or stockbroker. |
(4) | Written Confirmation: A written confirmation of each Telefacsimile Transaction shall be sent to the shareholder(s) to whose account such Telefacsimile Transaction relates, at the record address, by the end of the Insureds next regular processing cycle, but no later than five (5) business days following such Telefacsimile Transaction. |
i. | Designated means or refers to a written designation signed by a shareholder of record of a Fund, either in such shareholders initial application for the purchase of Fund shares, with or without a Signature Guarantee, or in another document with a Signature Guarantee. |
j. | Signature Guarantee means a written guarantee of a signature, which guarantee is made by an Eligible Guarantor Institution as defined in Rule 17Ad-15(a)(2) under the Securities Exchange Act of 1934. |
3. | Exclusions. It is further understood and agreed that this Insuring Agreement shall not cover: |
a. | Any loss covered under Insuring Agreement A, Fidelity, of this Bond; and |
b. | Any loss resulting from: |
(1) | Any Fax Redemption, where the proceeds of such redemption were requested to be paid or made payable to other than (a) the shareholder of record, or (b) a person Designated in the initial application or in writing at least one (1) day prior to such redemption to receive redemption proceeds, or (c) a bank account Designated in the initial application or in writing at least one (1) day prior to such redemption to receive redemption proceeds; or |
(2) | Any Fax Redemption of Fund shares which had been improperly credited to a shareholders account, where such shareholder (a) did not cause, directly or indirectly, such shares to be credited to such account, and (b) directly or indirectly received any proceeds or other benefit from such redemption; or |
(3) | Any Fax Redemption from any account, where the proceeds of such redemption were requested to be sent to any address other than the record address or another address for such account which was designated (a) over the telephone or by telefacsimile at least fifteen (15) days prior to such redemption, or (b) in the initial application or in writing at least one (1) day prior to such redemption; or |
(4) | The intentional failure to adhere to one or more Designated Fax Procedures; or |
(5) | The failure to pay for shares attempted to be purchased. |
4. | The Single Loss Limit of Liability under Insuring Agreement L is limited to the sum of |
Twenty Five Million Dollars ($25,000,000 ) it
being understood, however, that such liability shall be part of and not in addition to the Limit of Liability stated in Item 3 of the Declarations of the attached Bond or amendments thereof.
5. | With respect to coverage afforded under this Rider the applicable Single loss Deductible Amount is |
One Hundred Thousand Dollars ($100,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB013 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO The Charles Schwab Family of Funds |
VOICE INITIATED TRANSACTIONS
It is agreed that:
1. | The attached bond is amended by inserting an additional Insuring Agreement as follows: |
INSURING AGREEMENT M VOICE-INITIATED TRANSACTIONS
Loss caused by a Voice-initiated Transaction, where the request for such Voice-initiated Transaction is unauthorized or fraudulent and is made with the manifest intent to deceive; provided, that the entity which receives such request generally maintains and follows during the Bond Period all Designated Procedures with respect to Voice-initiated Redemptions and the Designated Procedures described in paragraph 2f (1) and (3) of this Rider with respect to all other Voice-initiated Transactions. The isolated failure of such entity to maintain and follow a particular Designated Procedure in a particular instance will not preclude coverage under this Insuring Agreement, subject to the specific exclusions herein and in the Bond.
2. | Definitions. The following terms used in this Insuring Agreement shall have the following meanings: |
a. | Voice-initiated Transaction means any Voice-initiated Redemption, Voice-initiated Election, Voice-initiated Exchange, or Voice-initiated Purchase. |
b. | Voice-initiated Redemption means any redemption of shares issued by an Investment Company which is requested by voice over the telephone. |
c. | Voice-initiated Election means any election concerning dividend options available to Fund shareholders which is requested by voice over the telephone. |
d. | Voice-initiated Exchange means any exchange of shares in a registered account of one Fund into shares in an identically registered account of another Fund in the same complex pursuant to exchange privileges of the two Funds, which exchange is requested by voice over the telephone. |
e. | Voice-initiated Purchase means any purchase of shares issued by an Investment Company which is requested by voice over the telephone. |
f. | Designated Procedures means the following procedures: |
(1) | Recordings: All Voice-initiated Transaction requests shall be recorded, and the recordings shall be retained for at least six (6) months. Information contained on the recordings shall be capable of being retrieved and produced within a reasonable time after retrieval of specific information is requested, at a success rate of no less than 85%. |
(2) | Identity Test: The identity of the caller in any request for a Voice-initiated Redemption shall be tested before executing that Voice-initiated Redemption, either by requesting the caller to state a unique identification number or to furnish key specific account information. |
(3) | Written Confirmation: A written confirmation of each Voice-initiated Transaction and of each change of the record address of a Fund shareholder requested by voice over the telephone shall be mailed to the shareholder(s) to whose account such Voice-initiated Transaction or change of address relates, at the original record address (and, in the case of such change of address, at the changed record address) by the end of the Insureds next regular processing cycle, but no later than five (5) business days following such Voice-initiated Transaction or change of address. |
ICB014 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
1 of 2
g. | Investment Company or Fund means an investment company registered under the Investment Company Act of 1940. |
h. | Officially Designated means or refers to a written designation signed by a shareholder of record of a Fund, either in such shareholders initial application for the purchase of Fund shares, with or without a Signature Guarantee, or in another document with a Signature Guarantee. |
i. | Signature Guarantee means a written guarantee of a signature, which guarantee is made by a financial or banking institution whose deposits are insured by the Federal Deposit Insurance Corporation or by a broker which is a member of any national securities exchange registered under the Securities Exchange Act of 1934. |
3. | Exclusions. It is further understood and agreed that this Insuring Agreement shall not cover: |
a. | Any loss covered under Insuring Agreement A, Fidelity, of this Bond; and |
b. | Any loss resulting from: |
(1) | Any Voice-initiated Redemption, where the proceeds of such redemption were requested to be paid or made payable to other than (a) the shareholder of record, or (b) a person Officially Designated to receive redemption proceeds, or (c) a bank account Officially Designated to receive redemption proceeds; or |
(2) | Any Voice-initiated Redemption of Fund shares which had been improperly credited to a shareholders account, where such shareholder (a) did not cause, directly or indirectly, such shares to be credited to such account, and (b) directly or indirectly received any proceeds or other benefit from such redemption; or |
(3) | Any Voice-initiated Redemption from any account, where the proceeds of such redemption were requested to be sent (a) to any address other than the record address for such account, or (b) to a record address for such account which was either (i) designated over the telephone fewer than thirty (30) days prior to such redemption, or (ii) designated in writing less than on (1) day prior to such redemption; or |
(4) | The intentional failure to adhere to one or more Designated Procedures; or |
(5) | The failure to pay for shares attempted to be purchased; or |
(6) | Any Voice-initiated Transaction requested by voice over the telephone and received by an automated system which receives and converts such request to executable instructions. |
4. | The total liability of the Underwriter under Insuring Agreement M is limited to the sum of |
Twenty Five Million | Dollars ($25,000,000 ), |
it being understood, however, that such liability shall be part of and not in addition to the Limit of Liability stated in Item 3 of the Declarations of the attached bond or amendment thereof.
5. | With respect to coverage afforded under this Rider the applicable Deductible Amount is |
One Hundred Thousand | Dollars ($100,000 ). |
Nothing | herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, |
agreements | or limitations of the above mentioned Bond or Policy, other than as above stated. |
By |
||
Authorized Representative |
INSURED
ICB014 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO The Charles Schwab Family of Funds |
DEFINITION OF INVESTMENT COMPANY
It is agreed that:
1. | Section 1, Definitions, under General Agreements is amended to include the following paragraph: |
(f) | Investment Company means an investment company registered under the Investment Company Act of 1940 and as listed under the names of Insureds on the Declarations. |
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By |
||
Authorized Representative |
INSURED
ICB016 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. |
OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO The Charles Schwab Family of Funds |
AUTOMATED PHONE SYSTEMS
1. | The attached Bond is amended by adding an additional Insuring Agreement as follows: |
INSURING AGREEMENT NAUTOMATED PHONE SYSTEMS (APS)
Loss caused by an APS Transaction, where the request for such APS Transaction is unauthorized or fraudulent and is made with the manifest intent to deceive; provided, that the entity which receives such request generally maintains and follows during the Bond Period all APS Designated Procedures with respect to APS Transactions. The isolated failure of such entity to maintain and follow a particular APS Designated Procedure in a particular instance will not preclude coverage under this Insuring Agreement, subject to the exclusions herein and in the Bond.
2. | Definitions. The following terms used in this Insuring Agreement shall have the following meanings: |
a. | Automated Phone Systems or APS means an automated system which receives and converts to executable instructions (1) transmissions by voice over the telephone, or (2) transmissions over the telephone through use of a touch-tone keypad or other tone system; and always excluding transmissions from a Computer System or part thereof. |
b. | APS Transaction means any APS Redemption, APS Election, APS Exchange, or PAS Purchase. |
c. | APS Redemption means any redemption of shares issued by an Investment Company which is requested through an Automated Phone System. |
d. | APS Election means any election concerning dividend options available to Fund shareholders which is requested through an Automated Phone System. |
e. | APS Exchange means any exchange of shares in a registered account of one Fund into shares in an identically registered account of another Fund in the same complex pursuant to exchange privileges of the two Funds, which exchange is requested through an Automated Phone System. |
f. | APS Purchase means any purchase of shares issued by an Investment Company which is requested through an Automated Phone System. |
g. | APS Designated Procedures means the following procedures: |
(1) | Logging: All APS Transaction requests shall be logged or otherwise recorded, so as to preserve all of the information necessary to effect the requested APS Transaction transmitted in the course of such a request, and the records shall be retained for at least six months. Information contained in the records shall be capable of being retrieved and produced within a reasonable time after retrieval of specific information is requested, at a success rate of no less than 85 percent. |
(2) | Identity Test: The identity of the caller in any request for an APS Transaction shall be tested before executing that APS Transaction, by requiring the entry by the caller of an identification number consisting of at least four characters. |
(3) | Contemporaneous Confirmation: All information in each request for an APS Transaction which is necessary to effect such APS Transaction shall be contemporaneously repeated to the caller, and no such APS Transaction shall be executed unless the caller has confirmed the accuracy of such information. |
ICB019 Ed. 7-04
ª 2004 The Travelers Indemnity Company. All rights reserved.
Page 1 of 2
(4) | Written Confirmation: A written confirmation of each APS Transaction shall be sent to the shareholder(s) to whose account such APS Transaction relates, at the record address, by the end of the Insureds next regular processing cycle, but not later than five (5) business days following such APS Transaction. |
(5) | Access to APS Equipment: Physical access to APS equipment shall be limited to duly authorized personnel. |
h. | Investment Company or Fund means a investment company registered under the Investment Company Act of 1940. |
i. | Officially Designated means or refers to a written designation signed by a shareholder of record of a Fund, either in such shareholders initial application for the purchase of Fund shares, with or without a Signature Guarantee, or in another document with a Signature Guarantee. |
j. | Signature Guarantee means a written guarantee of a signature, which guarantee is made by a financial or banking institution whose deposits are insured by the Federal Deposit Insurance Corporation or by a broker which is a member of any national securities exchange registered under the Securities Exchange Act of 1934. |
3. | Exclusion: It is further understood and agreed that this Insuring Agreement shall not cover: |
a. | Any loss covered under Insuring Agreement A, Fidelity, of this Bond: and |
b. | Any loss resulting from: |
(1) | Any APS Redemption, where the proceeds of such redemption were requested to be paid or made payable to other than (a) the shareholder of record, or (b) a person officially Designated to receive redemption proceeds, or (c) a bank account Officially Designated to receive redemption proceeds; or |
(2) | Any APS Redemption of Fund shares which had been improperly credited to a shareholders account, where such shareholder (a) did not cause, directly or indirectly, such shares to be credited to such account, and (b) directly or indirectly received any proceeds or other benefit from such redemption; or |
(3) | Any APS Redemption from any account, where the proceeds of such redemption were requested to be sent (a) to any address other than the record address for such account, or (b) to a record address for such account which was either (i) designated over the telephone fewer than thirty (30) days prior to such redemption, or (ii) designated in writing less than one (1) day prior to such redemption; or |
(4) | The failure to pay for shares attempted to be purchased, or |
(5) | The intentional failure to adhere to one or more APS Designated Procedures. |
4. | The total liability of the Underwriter under Insuring Agreement N is limited to the sum of |
Twenty Five Million Dollars ($25,000,000 ), it
being understood, however, that such liability shall be part of and not in addition to the Limit of Liability stated in Item 3 of the Declarations of the attached bond or amendments thereof.
5. | With respect to coverage afforded under this Rider, the applicable Deductible Amount is |
One Hundred Thousand Dollars ($100,000 ).
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB019 Ed. 7-04
ª 2004 The 1 Travelers Companies, Inc.
Page 2 of 2
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
AMEND INSURING AGREEMENT F (STAMP / MEDALLION)
It is agreed that:
1. | Paragraph (2) of Insuring Agreement F SECURITIES, is deleted in its entirety, and the following is substituted in lieu thereof: |
(2) through the Insureds having, in good faith and in the course of business, guaranteed in writing or witnessed any signatures, whether for valuable consideration or not and whether or not such guaranteeing or witnessing is ultra vires the Insured, upon any transfers, assignments, bills of sale, powers of attorney, guarantees, endorsements or other obligations upon or in connection with any securities, documents or other written instruments and which pass or purport to pass title to such securities, documents or other written instruments; or purportedly guaranteed in writing or witnessed any signatures on any transfers, assignments, bills of sale, powers of attorney, guarantees, endorsements or other obligations upon or in connection with any securities, documents or other written instruments and which pass or purport to pass title to such securities, documents or other written instruments, which purported guarantee was effected by the unauthorized use of a stamp or medallion of or belonging to the Insured, which was lost, stolen or counterfeited and for which loss the Insured is legally liable; excluding losses caused by Forgery or alteration of, on or in those instruments covered under Insuring Agreement (E) of the attached Bond.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB020 Ed. 7-04
ª | 2004 The Travelers Indemnity Company. All rights reserved. |
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
ADD EXCLUSIONS (N) & (O)
It is agreed that:
1. | Section 2, Exclusions, under General Agreements, is amended to include the following sub-sections: |
(n) | loss from the use of credit, debit, charge, access, convenience, identification, cash management or other cards, whether such cards were issued or purport to have been issued by the Insured or by anyone else, unless such loss is otherwise covered under Insuring Agreement A. |
(o) | the underwriter shall not be liable under the attached bond for loss due to liability imposed upon the Insured as a result of the unlawful disclosure of non-public material information by the Insured or any Employee, or as a result of any Employee acting upon such information, whether authorized or unauthorized. |
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB026 Ed. 7-04
ª | 2004 The Travelers Indemnity Company. All rights reserved. |
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
WORLDWIDE COVERAGECOUNTERFEIT CURRENCY
It is agreed that:
1. | Insuring Agreement (G) Counterfeit Currency, is hereby amended by deleting the words: |
of the United States of America or Canada, and substituting of any country in the world.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB031 Ed. 7-04
ª | 2004 The Travelers Indemnity Company. All rights reserved. |
ENDORSEMENT OR RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. STANDARD TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
CALIFORNIA PREMIUM RIDER
It is agreed that:
1. | In compliance with the ruling of the Commissioner of Insurance of the State of California and the Opinion of the Attorney-General of that State requiring that the premium for all bonds or policies be endorsed thereon, the basic premium charged for the attached bond for the period |
from 06/30/2012
to 06/30/2013
is Ninety Two Thousand Seven Hundred Sixty Seven & 00/100 Dollars ($92,767.00 )
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ICB050 Ed. 7-04
ª | 2004 The Travelers Indemnity Company. All rights reserved. |
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
| ||||||
ATTACHED TO AND FORMING PART OF |
DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
AMEND SECTION 4.LOSSNOTICEPROOFLEGAL PROCEEDINGS -
DESIGNATE PERSONS FOR DISCOVERY OF LOSS
MEL2555 Ed. 3-05For use with ICB005 Ed. 7-04
It is agreed that:
Section 4.LossNoticeProofLegal Proceedings of the attached bond is amended by deleting the second sub-paragraph and replacing it with the following:
Discovery occurs when the
Risk Manager
of the Insured:
(a) | first becomes aware of facts, or |
(b) | receives written notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances, |
which would cause a reasonable person to assume that a loss of a type covered under this bond has been or will be incurred regardless of when the act or acts causing or contributing to such loss occurred, even though the exact amount or details of loss may not be then known.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
a | 2005 The Travelers Indemnity Company. All rights reserved. |
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
| ||||||
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
AUTOMATIC COVERAGE FOR NEW INVESTMENT COMPANIES/INCREASE IN LIMITS
MEL2684Ed. 3/05For use with ICB005Ed. 7/04
It is agreed that:
1. | General Agreement A., Additional Offices or EmployeesConsolidation or MergerNotice, is amended to include the following paragraph: |
(3) | If the Insured shall, while this bond is in force, establish any new Investment Companies other than by consolidation or merger with, or purchase or acquisition of assets or liabilities of, another institution, such Investment Companies shall automatically be covered hereunder from the date of such establishment without the payment of additional premium for the remainder of such premium period. |
2. | Section 10., Limit of Liability, is amended to include the following paragraph: |
If the Insured shall, while this bond is in force, require an increase in limits to comply with SEC Reg. 17g-1, due to an increase in asset size of current Investment Companies insured under the bond or the addition of new Investment Companies, such increase in limits shall automatically be covered hereunder from the date of such increase without the payment of additional premium for the remainder of the premium period.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
a | 2005 The Travelers Indemnity Company. All rights reserved. |
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
| ||||||
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
AMEND SECTION 13.TERMINATION AS TO ANY EMPLOYEE
MEL3274 Ed. 7-05
For use with ICB005 Ed. 7-04
It is agreed that:
1. | Sub-sections (a), (b) & (c) of Section 13. TERMINATION under CONDITIONS AND LIMITATIONS, are deleted in their entirety, and the following is substituted in lieu thereof: |
Upon the detection by any Insured that such Employee has committed any dishonest or fraudulent act(s) or theft, the Insured shall immediately remove such Employee from a position that may enable such Employee to cause the Insured to suffer a loss by any subsequent dishonest or fraudulent act(s) or theft. The Insured, within forty-eight (48) hours of such detection, shall notify the Underwriter with full and complete particulars of the detected dishonest or fraudulent act(s) or theft.
For purposes of this section, detection occurs when any partner, officer, or supervisory Employee of any Insured, who is not in collusion with such (detected) Employee, becomes aware that the (detected) Employee has committed any dishonest or fraudulent act(s) or theft.
This Bond shall terminate as to any Employee by written notice to each Insured and to the Securities and Exchange Commission from the Underwriter of not less than sixty (60) days prior to the effective date of termination specified in such notice.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
a | 2005 The Travelers Indemnity Company. All rights reserved. |
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
| ||||||
ATTACHED TO AND FORMING PART OF |
DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS | ||||
SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
SCHEDULE OF DEPOSITORIES
For use with ICB005Ed. 7/04
MEL3279Ed. 5/05
It is agreed that:
1. | Those premises of Depositories listed in the following Schedule shall be deemed to be premises of the Insured but only as respects coverage on Certificated Securities: |
SCHEDULE
DEPOSITORY | LOCATION COVERED | |
All systems utilized by the Insured |
All locations utilized by the Insured |
2. | Certificate Securities held by such Depository shall be deemed to be Property as defined in the attached Bond to the extent of the Insured's interest therein as effected by the making of appropriate entries on the books and records of such Depository. |
3. | The attached Bond does not afford coverage in favor of any Depository listed in the Schedule above. When the Company indemnifies the Insured for a loss covered hereunder, the Insured will assign the rights and causes of action to the extent of the claim payment against the Depository, or any other entity or person against whom it has cause of action, to the Company. |
4. | If the rules of the Depository named in the Schedule above provide that the Insured shall be assessed for a portion of the judgment (or agreed settlement) taken by the Company based upon the assignment set forth in part 3. above and Insured actually pays such assessment, then the Company will reimburse the Insured for the amount of the assessment but not exceeding the amount of the loss payment by the Company. |
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
a | 2005 The Travelers Indemnity Company. All rights reserved. |
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
| ||||||||
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS SPECIFIED IN THE BOND OR POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||||
* ISSUED TO The Charles Schwab Family of Funds |
AMEND GENERAL AGREEMENT CATTORNEYS FEES
For use with ICB005 Ed. 7/04
MEL5483 Ed. 10/07
In consideration of the premium charged, it is agreed that:
1. | General Agreements (C)COURT COSTS AND ATTORNEYS FEES is replaced with the following: |
C. | COURT COSTS AND ATTORNEYS' FEES (Applicable to all Insuring Agreements or Coverages now or hereafter forming part of this bond) |
The Underwriter will indemnify the Insured against court costs and reasonable attorneys' fees incurred and paid by the Insured in defense, whether or not successful, whether or not fully litigated on the merits and whether or not settled, of any suit or legal proceeding brought against the Insured to enforce the Insured's liability or alleged liability on account of any loss, claim or damage which, if established against the Insured, would constitute a loss sustained by the Insured covered under the terms of this bond provided, however, that with respect to Insuring Agreement (A) this indemnity shall apply only in the event that:
(1) | an Employee admits to being guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement; or |
(2) | an Employee is adjudicated to be guilty of any dishonest or fraudulent act(s), including Larceny or Embezzlement; |
(3) | in the absence of (1) or (2) above an arbitration panel agrees, after a review of an agreed statement of facts, that an Employee would be found guilty of dishonesty if such Employee were prosecuted. |
The Insured shall promptly give notice to the Underwriter of any such suit or legal proceedings and at the request of the Underwriter shall furnish it with copies of all pleadings and other papers therein. At the Underwriter's election the Insured shall permit the Underwriter to conduct the defense of such suit or legal proceeding, in the Insured's name. In such event, the Underwriter shall have the right to select defense counsel, subject to the Insured's consent, which shall not be unreasonably withheld, and the Insured shall give all reasonable information and assistance which the Underwriter shall deem necessary to the proper defense of such suit or legal proceeding.
If the amount of the Insured's liability or alleged liability is greater than the amount recoverable under this bond, or if a Deductible Amount is applicable, or both, the liability of the Underwriter under this General Agreement is limited to the proportion of court costs and attorneys' fees incurred and paid by the Insured or by the Underwriter that the amount recoverable under this bond bears to the total of such amount plus the amount which is not so recoverable. Such indemnity shall be in addition to the Limit of Liability for the applicable Insuring Agreement or Coverage.
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
a | 2007 The Travelers Indemnity Company. All rights reserved. |
Page 1 of 1
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
ATTACHED TO AND FORMING PART OF | DATE ENDORSEMENT | * EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
BOND OR POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS SPECIFIED IN THE BOND OR POLICY | ||||
ZBN-14R74012-12-N2 |
06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
REPLACE INSURING AGREEMENT (A) FIDELITY
For use with ICB005 Ed. 7/04
MEL7428 Ed. 04/10
It is agreed that:
1. | Insuring Agreement (A) Fidelity is replaced with the following: |
(A) | Loss resulting from any dishonest or fraudulent act(s), including Larceny or Embezzlement, committed by an Employee, committed anywhere and whether committed alone or in collusion with others, including loss of Property resulting from such acts of an Employee, which Property is held by the Insured for any purpose or in any capacity and whether so held gratuitously or not and whether or not the Insured is liable therefor. |
Dishonest or fraudulent act(s) as used in this Insuring Agreement shall mean only dishonest or fraudulent act(s) committed by such Employee with the intent:
(a) | to cause the Insured to sustain such loss, or |
(b) | to obtain financial benefit for the Employee or another person or organization. |
Notwithstanding the foregoing, it is agreed that with regard to Loans and/or Trading this bond covers only loss resulting directly from dishonest or fraudulent acts committed by an Employee with the intent to cause the Insured to sustain such loss, and to obtain financial benefit for the Employee or another person or organization. However, where the proceeds of a fraud committed by an Employee involving Loans and/or Trading are actually received by persons with whom the Employee was acting in collusion, but said Employee fails to derive a financial benefit therefrom, such a loss will nevertheless be covered hereunder as if the Employee had obtained such benefit provided the Insured establishes that the Employee intended to participate therein.
As used in this Insuring Agreement, financial benefit does not include any employee benefits earned in the normal course of employment, including: salaries, commissions, fees, bonuses, promotions, awards, profit sharing and pensions.
Trading as used in this Insuring Agreement means trading or otherwise dealing in securities, commodities, futures, options, foreign or federal funds, currencies, foreign exchange or other means of exchange similar to or in the nature of the foregoing.
Loan as used in this Insuring Agreement means any extension of credit by the Insured, any transaction creating a creditor relationship in favor of the Insured and any transaction by which the Insured assumes an existing creditor relationship
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||
Authorized Representative |
INSURED
ª 2010 The Travelers Indemnity Company
Page 1 of 1
RIDER NO.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
The following spaces proceeded by an (*) need not be completed if this endorsement or rider and the Bond or Policy have the same inception date.
Attached to and Forming Part of | Date Endorsement or Rider | * Effective Date of Endorsement or Rider | ||||
Bond Or Policy No. | Executed | 12:01 A.M. Standard Time as Specified in the Bond or Policy | ||||
ZBN-14R74012-12-N2 |
06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
It is agreed that:
1. | The term Underwriter as used in the attached Bond shall be construed to mean, unless otherwise specified in this Rider, all the Companies executing the attached Bond. |
2. | Each of said Companies shall be liable only for such proportion of any Single Loss under the attached Bond as the amount underwritten by such Company as specified in the Schedule forming a part hereof, bears to the Aggregate Limit of Liability of the attached Bond, but in no event shall any of said Companies be liable for an amount greater than that underwritten by it. |
3. | In the absence of a request from any of said Companies to pay premiums directly to it, premiums for the attached Bond may be paid to the Controlling Company for the account of all of said Companies. |
4. | In the absence of a request from any of said Companies that notice of claim and proof of loss be given to or filed directly with it, the giving of such notice to and the filing of such proof with the Controlling Company shall be deemed to be in compliance with the conditions of the attached Bond for the giving of notice of loss and the filing of proof of loss, if given and filed in accordance with said conditions. |
5. | The Controlling Company may give notice in accordance with the terms of the attached Bond, terminating or canceling the attached Bond as an entirety or as to any Employee, and any notice so given shall terminate or cancel the liability of all said Companies as an entirety or as to such Employee, as the case may be. |
6. | Any Company other than the Controlling Company may give notice in accordance with the terms of the attached Bond, terminating or canceling the entire liability of such other Company under the attached Bond or as to any Employee. |
7. | In the absence of a request from any of said Companies that notice of termination or cancellation by the Insured of the attached Bond in its entirety be given to or filed directly with it, the giving of such notice in accordance with the terms of the attached Bond to the Controlling Company shall terminate or cancel the liability of all of said Companies as an entirety. The Insured may terminate or cancel the entire liability of any Company, other than the Controlling Company under the attached Bond by giving notice of such termination or cancellation to such other Company, and shall send copy of such notice to the Controlling Company. |
8. | In the event of the termination or cancellation of the attached Bond as an entirety, no Company shall be liable to the Insured for a greater proportion of any return premium due the Insured than the amount underwritten by such Company bears to the Aggregate Limit of Liability of the attached Bond. |
9. | In the event of the termination or cancellation of the attached Bond as to any Company, such Company alone shall be liable to the Insured for any return premium due the Insured on account of such termination or cancellation. The termination or cancellation of the attached Bond as to any Company other than the Controlling Company shall not terminate, cancel or otherwise affect the liability of the other Companies under the attached Bond. |
ICB042 Ed. 7-04
Underwritten for the sum of $15,000,000 part of $25,000,000 per occurrence
Sub-Limits
Insuring Agreement (B)-Audit Expense: |
$30,000 part of $50,000 | |
Insuring Agreement (H)-Stop Payment: |
$300,000 part of $500,000 | |
Insuring Agreement (I)-Uncollectible Items of Deposit: |
$300,000 part of $500,000 | |
Insuring Agreement (J)-Unauthorized Signature: |
$300,000 part of $500,000 |
St Paul Fire & Marine Insurance Company |
(Controlling Company) | |||||
By: | ||||||
Authorized Representative |
Underwritten for the sum of $10,000,000 part of $25,000,000
Sub-Limits
Insuring Agreement (B)-Audit Expense: |
$20,000 part of $50,000 | |
Insuring Agreement (H)-Stop Payment: |
$200,000 part of $500,000 | |
Insuring Agreement (I)-Uncollectible Items of Deposit: |
$200,000 part of $500,000 | |
Insuring Agreement (J)-Unauthorized Signature: |
$200,000 part of $500,000 |
Great American Insurance Company |
[Surety Company] | |||||
By: | ||||||
Authorized Representative |
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||||||
Authorized Representative |
ICB042 Ed. 7-04
ENDORSEMENT OR RIDER NO.
The following spaces preceded by an (*) need not be completed if this endorsement or rider and the Policy have the same inception date.
ATTACHED TO AND FORMING PART |
DATE ENDORSEMENT |
* EFFECTIVE DATE OF ENDORSEMENT OR RIDER | ||||
OF POLICY NO. | OR RIDER EXECUTED | 12:01 A.M. LOCAL TIME AS | ||||
SPECIFIED IN THE POLICY | ||||||
ZBN-14R74012-12-N2 | 06/11/12 | 06/30/12 | ||||
* ISSUED TO |
||||||
The Charles Schwab Family of Funds |
Amend Definition of Employee
MEL2899Ed. 5/05 For use with ICB005Ed. 7/04
It is agreed that:
1. | The following is added to Definition (a), Employee, of Section 1.DEFINITIONS, of the CONDITIONS AND LIMITATIONS: |
Temporary personal, part-time employees and consultants while performing duties on behalf of the Insured. Temporary Employees any individual or individuals assigned to perform employee duties within the premises for the Insured by any agency furnishing temporary personnel on a contingent or part-time basis, provide, however, that this bond does not cover any loss caused by any such individual or individuals if such loss is covered by any Insurance or Suretyship held by the agency furnishing temporary personnel to the Insured, in which case this bond shall be excess of that other Insured or Suretyship.
Leased Employees any individual or individuals assigned to perform employee duties within the premises for the Insured by any agency furnishing temporary personnel on a contingent or part-time basis, provide, however, that this bond does not cover any loss caused by any such individual or individuals if such loss is covered by any Insurance or Suretyship held by the agency furnishing temporary personnel to the Insured, in which case this bond shall be excess of that other Insured or Suretyship.
Volunteer while performing services like an Employee;
Intern or Guest Student while performing services like an Employee; Sub-Advisers;
Sub-Administrators
Nothing herein contained shall be held to vary, alter, waive, or extend any of the terms, conditions, provisions, agreements or limitations of the above mentioned Bond or Policy, other than as above stated.
By | ||||||
Authorized Representative |
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
1401 H St. NW
Washington DC 20005
INVESTMENT COMPANY BLANKET BOND
(EXCESS)
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
1401 H St. NW
Washington, DC 20005
DECLARATIONS
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
Item 1. | Name of Insured (the Insured) | Bond Number | ||
The Charles Schwab Family of Funds | 98291112B |
Principal Office: Aon Financial Services Group 199 Fremont Street, Suite 400 San Francisco, CA 94105 |
Mailing Address: Aon Financial Services Group 199 Fremont Street, Suite 400 San Francisco, CA 94105 |
Item 2. | Bond Period: from 12:01 a.m. on _June 30, 2012_ to 12:01 a.m. on _June 30, 2013_, or the earlier effective date of the termination of this Bond, standard time at the Principal Office as to each of said dates. |
Item 3. | Limit of Liability |
LIMIT OF LIABILITY |
DEDUCTIBLE AMOUNT 1 |
|||||||
Insuring Agreement AFIDELITY |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement CPREMISES |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement DTRANSIT |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement EFORGERY OR ALTERATION |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement FSECURITIES |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement GCOUNTERFEIT CURRENCY |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement JVOICE-INTIATED TRANSACTIONS |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement LTELEFACSIMILE SYSTEMS |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement MAUTOMATIC PHONE SYSTEMS |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement NCOMPUTER SYSTEMS |
$ | 25,000,000 | $ | 25,000,000 | ||||
Insuring Agreement OTRADING |
Not Covered | N/A |
1 | Plus the applicable deductible of the Primary Bond |
Item 4. | PRIMARY BONDSt. Paul Fire & Marine Insurance Company |
Bond No. ZBN-14R74012-12-N2
Item 5. | The liability of ICI Mutual Insurance Company, a Risk Retention Group (the Underwriter) is subject to the terms of the following Riders attached hereto: |
Riders: 1
and of all Riders applicable to this Bond issued during the Bond Period.
By: | /S/ Matthew Link | |
Authorized Representative |
Excess Bond (01/09)
NOTICE
This policy is issued by your risk retention group. Your risk retention group may not be subject to all of the insurance laws and regulations of your state. State insurance insolvency guaranty funds are not available for your risk retention group.
ICI Mutual Insurance Company, a Risk Retention Group (Underwriter), in consideration of the required premium, and in reliance on the application and all other information furnished to the Underwriter by the Insured, and subject to and in accordance with the Declarations, General Agreements, Provisions, Conditions and Limitations of this bond, agrees to indemnify the Insured for loss, discovered during the Bond Period, which would otherwise have been paid under the Primary Bond but for the fact that the loss exceeds the limit of liability of such Primary Bond. Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to:
a. | Any coverage exceptions specified by riders attached to this bond; |
b. | The deductible amounts and limits of liability as stated in ITEM 3. of the Declarations and; |
c. | The General Agreements, Provisions, Conditions and Limitations set forth herein. |
GENERAL AGREEMENTS
A. | CHANGE OR MODIFICATION OF PRIMARY BOND |
If after the inception date of this bond the Primary Bond is changed or modified, written notice of any such change or modification shall be given to the Underwriter as soon as practicable, not to exceed thirty (30) days after such change or modification, together with such information as the Underwriter may request. There shall be no coverage under this bond for any loss arising from or in any way related to such change or modification until such time as the Underwriter is advised of and specifically agrees by written endorsement to provide coverage for such change or modification.
B. | LOSSNOTICEPROOFLEGAL PROCEEDINGS |
This Bond is for the use and benefit only of the Insured and the Underwriter shall not be liable hereunder for loss sustained by anyone other than the Insured (except that if the Insured includes such other loss in the Insureds proof of loss, the Underwriter shall consider its liability therefor.) As soon as practicable and not more than sixty (60) days after discovery of any loss covered hereunder, the Insured shall give the Underwriter written notice thereof and, as soon as practicable and within one year after such discovery, shall also furnish to the Underwriter affirmative proof of loss with full particulars. The Underwriter may extend the sixty day notice period or the one year proof of loss period if the Insured requests an extension and shows good cause therefor.
The Underwriter shall not be liable hereunder for loss of Securities unless each of the Securities is identified in such proof of loss by a certificate or bond number or by such identification means as the Underwriter may require. The Underwriter shall have a reasonable period after receipt of a proper affirmative proof of loss within which to investigate the claim, but where the loss is of Securities and is clear and undisputed, settlement shall be made within forty-eight (48) hours even if the loss involves Securities of which duplicates may be obtained.
The Insured shall not bring legal proceedings against the Underwriter to recover any loss hereunder prior to sixty (60) days after filing such proof of loss or subsequent to twenty-four (24) months after the discovery of such loss or, in the case of a legal proceeding to recover hereunder on account of any judgment against the Insured in or settlement of any suit or to recover court costs or attorneys fees paid in any such suit, twenty-four (24) months after the date of the final judgment in or settlement of
such suit. If any limitation in this bond is prohibited by any applicable law, such limitation shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law.
Notice hereunder shall be given to Manager, Professional Liability Claims, ICI Mutual Insurance Company, 1401 H St. NW, Washington, DC 20005.
PROVISIONS, CONDITIONS AND LIMITATIONS
SECTION 1. DEFINITIONS
a. | Deductible Amount means the amount stated in ITEM 3. of the Declarations, applicable to each Single Loss. In no event shall this Deductible Amount be reduced for any reason, including but not limited to, the non-existence, invalidity, insufficiency or uncollectibility of any Underlying Bond(s), including the insolvency or dissolution of any Insurer providing coverage under any Underlying Bond(s). |
b. | Primary Bond means the bond scheduled in ITEM 5. of the Declarations or any bond that may replace or substitute for such bond. |
c. | Single Loss means: |
(1) | all loss resulting from any one actual or attempted theft committed by one person, or |
(2) | all loss caused by any one act (other than a theft or a dishonest or fraudulent act) committed by one person, or |
(3) | all loss caused by dishonest or fraudulent acts committed by one person, or |
(4) | all expenses incurred with respect to any one audit or examination, or |
(5) | all loss caused by any one occurrence or event other than those specified in subsections (1) through (4) above. |
d. | Underlying Bond means the Primary Bond and all other insurance coverage referred to in ITEM 4. Of the Declarations. |
SECTION 2. SINGLE LOSS LIMIT OF LIABILITY
The Underwriters liability for each Single Loss shall not exceed the Limit of Liability as stated in ITEM 3. of the Declarations.
SECTION 3. DISCOVERY
For all purposes under this bond, a loss is discovered, and discovery of a loss occurs, when the Insured
(1) | becomes aware of facts, or |
(2) | receives notice of an actual or potential claim by a third party which alleges that the Insured is liable under circumstances, which would cause a reasonable person to assume that loss covered by this bond has been or is likely to be incurred even though the exact amount or details of loss may not be known. |
SECTION 4. ASSIGNMENT OF RIGHTS
Upon payment to the Insured hereunder for any loss, the Underwriter shall be subrogated to the extent of such payment to all of the Insureds rights and claims in connection with such loss; provided,
however, that the Underwriter shall not be subrogated to any such rights or claims one named Insured under this bond may have against another named Insured under this bond. At the request of the Underwriter, the Insured shall execute all assignments or other documents and take such action as the Underwriter may deem necessary or desirable to secure and perfect such rights and claims, including the execution of documents necessary to enable the Underwriter to bring suit in the name of the Insured.
Assignment of any rights or claims under this bond shall not bind the Underwriter without the Underwriters written consent.
SECTION 5. COOPERATION OF INSURED
At the Underwriters request and at reasonable times and places designated by the Underwriter the Insured shall:
a. | submit to examination by the Underwriter and subscribe to the same under oath, and |
b. | produce for the Underwriters examination all pertinent records, and |
c. | cooperate with the Underwriter in all matters pertaining to the loss. |
The Insured shall execute all papers and render assistance to secure for the Underwriter the rights and causes of action provided for under this bond. The Insured shall do nothing after loss to prejudice such rights or causes of action.
SECTION 6. TERMINATION
The Underwriter may terminate this bond as to any Insured or all Insureds only by written notice to such Insured or Insureds and, if this bond is terminated as to any investment company registered under the Investment Company Act of 1940, to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C., in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
The Insured may terminate this bond only by written notice to the Underwriter not less than sixty (60) days prior to the effective date of the termination specified in such notice. Notwithstanding the foregoing, when the Insured terminates this bond as to any investment company registered under the Investment Company Act of 1940, the effective date of termination shall be not less than sixty (60) days from the date the Underwriter provides written notice of the termination to each such investment company terminated thereby and to the Securities and Exchange Commission, Washington, D.C.
This bond will terminate as to any Insured entity that is not an investment company registered under the Investment Company Act of 1940 immediately and without notice upon (1) the takeover of such Insureds business by any State or Federal official or agency, or by any receiver or liquidator, or (2) the filing of a petition under any State or Federal statute relative to bankruptcy or reorganization of the Insured, or assignment for the benefit of creditors of the Insured.
Premiums are earned until the effective date of termination. The Underwriter shall refund the unearned premium computed at short rates in accordance with the Underwriters standard short rate cancellation tables if this bond is terminated by the Insured or pro rata if this bond is terminated by the Underwriter.
Upon the detection by any Insured that an employee (as defined in the Primary Bond) has committed any dishonest or fraudulent act(s) or theft, the Insured shall immediately remove such employee from a position that may enable such employee to cause the Insured to suffer a loss by any
subsequent dishonest or fraudulent act(s) or theft. The Insured, within two (2) business days of such detection, shall notify the Underwriter with full and complete particulars of the detected dishonest or fraudulent act(s) or theft.
For purposes of this section, detection occurs when any partner, officer, or supervisory employee of any Insured, who is not in collusion with such employee, becomes aware that the employee has committed any dishonest or fraudulent act(s) or theft.
This bond shall terminate as to any employee (as defined in the Primary Bond) by written notice from the Underwriter to each Insured and, if such employee is an employee of an Insured investment company registered under the Investment Company Act of 1940, to the Securities and Exchange Commission, in all cases not less than sixty (60) days prior to the effective date of termination specified in such notice.
SECTION 7. CONFORMITY
If any limitation within this bond is prohibited by any law controlling this bonds construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law.
SECTION 8. CHANGE OR MODIFICATION
This bond may only be modified by written Rider forming a part hereof over the signature of the Underwriters authorized representative. Any Rider which modifies the coverage provided by Insuring Agreement A, Fidelity (or the equivalent insuring agreement) of the Primary Bond in a manner which adversely affects the rights of an Insured investment company registered under the Investment Company Act of 1940 shall not become effective until at least sixty (60) days after the Underwriter has given written notice thereof to the Securities and Exchange Commission, Washington, D.C., and to each Insured investment company registered under the Investment Company Act of 1940 affected thereby.
SECTION 9. DEDUCTIBLE AMOUNT; LIMIT OF LIABILITY
The Underwriter shall not be liable under any Insuring Agreement unless the amount of the loss covered thereunder, after deducting the net amount of all reimbursement and/or recovery received by the Insured with respect to such loss (other than from the Primary Bond or from any other bond, suretyship or insurance policy), shall exceed the applicable Deductible Amount; in such case the Underwriter shall be liable only for such excess, subject to the applicable Limit of Liability and other agreements, provisions, conditions and limitations of this bond.
The maximum liability of the Underwriter for any Single Loss covered by any Insuring Agreement under this bond shall be the Limit of Liability applicable to such Insuring Agreement, subject to the applicable Deductible Amount and the other agreements, provisions, conditions and limitations of this bond.
5
ICI MUTUAL INSURANCE COMPANY,
a Risk Retention Group
INVESTMENT COMPANY BLANKET BOND
(EXCESS BOND)
RIDER NO. 1
INSURED | BOND NUMBER | |||
The Charles Schwab Family of Funds | 98291111B | |||
EFFECTIVE DATE | BOND PERIOD | AUTHORIZED REPRESENTATIVE | ||
June 30, 2012 | June 30, 2012 to June 30, 2013 | /S/ Matthew Link |
Most property and casualty insurers, including ICI Mutual Insurance Company, a Risk Retention Group (ICI Mutual), are subject to the requirements of the Terrorism Risk Insurance Act of 2002 (the Act). The Act establishes a Federal insurance backstop under which ICI Mutual and these other insurers will be partially reimbursed for future insured losses resulting from certified acts of terrorism. (Each of these bolded terms is defined by the Act.) The Act also places certain disclosure and other obligations on ICI Mutual and these other insurers.
Pursuant to the Act, any future losses to ICI Mutual caused by certified acts of terrorism will be partially reimbursed by the United States government under a formula established by the Act. Under this formula, the United States government will reimburse ICI Mutual for 85% of ICI Mutuals insured losses in excess of a statutorily established deductible until total insured losses of all participating insurers reach $100 billion. If total insured losses of all property and casualty insurers reach $100 billion during any applicable period, the Act provides that the insurers will not be liable under their policies for their portions of such losses that exceed such amount. Amounts otherwise payable under this bond may be reduced as a result.
Coverage under this bond remains subject to all applicable terms, conditions and limitations of the bond (including exclusions) that are permissible under the Act. The portion of the premium that is attributable to any coverage potentially available under the bond for acts of terrorism is one percent (1%).
RX53.0-00 (3/12)
125 Broad Street, New York, NY 10004
August 3, 2012
Natalie Cuslidge
Aon Risk Services Northeast Inc.
199 Water Street
New York, NY 10038
Re: | The Charles Schwab Family of Funds |
Mutual Fund Bond
Policy Number 169880306
Expiration Date: 06/30/2013
Dear Ms. Cuslidge,
We are pleased to enclose Policy Number 169880306 for The Charles Schwab Family of Funds. We trust that this policy meets with the specifications outlined in our quotation. Please review it carefully to confirm this. Should you detect any problem, please contact me as soon as possible.
If commissions or other compensation are payable hereunder, Insurance Producer will comply with all applicable federal and state laws, rules, regulations and/or orders governing disclosure by an agent, broker or producer to an insured or prospective insured of commissions or other compensation.
We appreciate the opportunity to do business with The Charles Schwab Family of Funds and with you. If you should have any comments, questions, or concerns, please do not hesitate to contact me.
Sincerely,
Ashley Halpern
Ashley Halpern
Underwriting Specialist
Phone: (212) 440-3433
Fax: (312) 440-5692
ashley.halpern@cna.com
AH/sbt
Policy Transaction Invoice
Producer: |
Customer: | |
Natalie Cuslidge Aon Risk Services Northeast Inc. 199 Water Street New York, NY 10038 (415)486-7287 |
The Charles Schwab Family of Funds 101 Montgomery Street San Francisco, CA 94104 | |
Branch Code: 912 Producer Number: 702859 |
Customer Number: 232816 |
Continental Insurance Company hereby submits the following Statement for Policy # 169880306 for The Charles Schwab Family of Funds Policy Period: From 06/30/2012 to 06/30/2013.
Policy Effective Date |
Gross Premium |
Commission 13.50%(MFB) |
Counter-Signature |
Total Taxes |
Total Surcharges |
Amount Due | ||||||
6/30/2012 |
$36,515.00 | $4,929.53 | $0.00 | $0.00 | $0.00 | $31,585.47 |
* | Please return a copy of this invoice with your payment due 30 days after Policy Effective Date to: |
Continental Casualty Company
23453 Network Place
Chicago, IL 60673-1234
Please do not send this payment to any other CNA payment site.
Any questions regarding your account please call
CNA Financial Insurance
Phone: (212) 440-3433
FOR BILLING QUESTIONS CONTACT BILLING & COLLECTIONS: 1-877-574-0540
This amount will also appear on the CNA monthly statement for this producer number.
08/02/2012
40 Wall Street, New York, NY 10005 |
Declarations EXCESS INSURANCE POLICY | |||||||||||
CUSTOMER NUMBER |
DATE ISSUED | |||||||||||
232816 |
08/03/2012 | |||||||||||
POLICY NUMBER |
COVERAGE IS PROVIDED BY | PRODUCER NO. | ||||||||||
169880306 |
Continental Insurance Company (herein called Underwriter) |
702859 | ||||||||||
NAMED INSURED AND ADDRESS |
PRODUCER NAME AND ADDRESS | |||||||||||
Item 1. The Charles Schwab Family of Funds (herein called Insured) 101 Montgomery Street San Francisco, CA 94104 |
Aon Risk Services Northeast Inc. Natalie Cuslidge 199 Water Street New York, NY 10038 |
Item 2. | Bond Period: from 12:01 a.m. on 06/30/2012 to 12:01 a.m. on 06/30/2013 standard time. |
Item 3. | Single Loss Limit of Liability: $20,000,000 |
Item 4. | Underlying Insurance: |
Primary Underlying Insurance |
Policy Number | Single
Loss Limit of Liability |
Deductible | |||||||
St. Paul Fire and Marine Insurance Company / Great American Insurance Company |
ZBN-14R74012-12-N2/ 554-46-19-08 |
$ | 25,000,000 | $ | 100,000 |
Excess Underlying Insurance |
Policy Number | Single
Loss Limit of Liability |
||||||
ICI Mutual Insurance Company |
98291112B | $ | 25,000,000 |
Item 5. | Notice of claim should be sent to the Underwriter at: CNA Global Specialty Lines |
Financial Insurance Division, Fidelity Bonding 125 Broad Street New York, NY 10004 |
Item 6. | The liability of the Underwriter is subject to the terms of the following riders attached hereto: |
SR-5261b Ed. 10/87 CoSurety Rider
Item 7. | The Insured by the acceptance of this policy gives notice to the Underwriter terminating or canceling prior bond(s) or policy(ies) No.(s) N/A, such termination or cancelation to be effective as of the time this policy becomes effective. |
/s/ Daniel Fortin | ||
By |
![]() | |
Authorized Representative | ||
Date: July 16, 2012 |
PRO-4173-A (ED.09/03) |
PAGE 1 OF 1
EXCESS FIDELITY BOND
(NON-AGGREGATED)
In consideration of the payment of the premium and in reliance upon all statements made and information provided to the Underwriter by the Insured and subject to the provisions of this policy, the Underwriter and the Insured agree as follows:
SECTION I. INSURING AGREEMENT
The Underwriter agrees to indemnify Insured for loss discovered during the Bond Period, which exceeds the Underlying Insurance but is otherwise properly payable according to the terms of the Underlying Insurance.
SECTION II. GENERAL AGREEMENTS
A. | DEFINITIONS |
Throughout this bond, the words bond and policy are interchangeable.
Bond Period means the period from the effective date and hour of this Bond as set forth in Item 2 of the Declarations, to the Policy expiration date and hour set forth in Item 2 of the Declarations, or its earlier cancellation date or termination date, if any.
Insured means those persons or organizations insured under the Primary Underlying Insurance, at its inception.
Named Insured means the organizations named in Item 1 of the Declarations.
Primary Underlying Insurance means the Policy scheduled in Item 4 of the Declarations.Underlying Insurance means all those Policies scheduled in Item 4 of the Declarations and any Policies replacing them.
B. | NOTICE TO UNDERWRITER OF LOSS OR LEGAL PROCEEDING |
At the earliest practicable moment, not to exceed the notice requirements specified in the Primary Underlying Insurance, the Named Insured shall give the Underwriter notice thereof. Such notice is to be sent to: CNA Global Specialty Lines, Fidelity Bonding, 8th Floor, 40 Wall Street New York, NY 10005. Within six (6) months after such discovery, the Named Insured shall furnish the Underwriter proof of loss, duly sworn, with full particulars; and if requested by the Underwriter, copies of proof of loss presented to the Primary Underlying Insurance.
Legal proceedings for the recovery of any loss hereunder shall not be brought prior to the expiration of sixty (60) days after the proof of loss if filed with the Underwriter or after the expiration of twenty-four (24) months from discovery of such loss.
SECTION III. CONDITIONS AND LIMITATIONS
A. | UNDERLYING INSURANCE |
This bond is subject to all terms and conditions of the Primary Underlying Insurance (except premium, limit of liability, and any other provision set forth in this bond). However, should any provision of this bond conflict with any provision of the Underlying Insurance, then the provisions of this bond shall control. All Underlying Insurance in effect at the inception of this bond shall be maintained in full effect during the Bond Period. If the Underlying Insurance is amended or modified during the Bond Period, the Underwriter shall be given written notice as required by the Primary Underlying Insurance and premium hereunder shall be adjusted as appropriate. Failure to comply with the foregoing shall not void this bond; however, in the event of such failure, the Underwriter shall only be liable to the same extent as if the Underlying Insurance remained in full force and with the terms and conditions agreed to by the Underwriter.
PRO-4175-A (ED. 02/04)
Page 1 of 3 |
EXCESS FIDELITY BOND
(NON-AGGREGATED)
B. | JOINT INSUREDS |
If two or more Insureds are covered under this Bond, the first Named Insured shall act for all Insureds. Payment by the Underwriter to the first Named Insured for any loss sustained by any Insured shall fully release the Underwriter with respect to such loss. If the first named Insured ceases to be covered under this Bond, the Insured next named shall be considered as the first Named Insured. The liability of the Underwriter for loss sustained by all Insureds shall not exceed the amount for which the Underwriter would have been liable had all such loss been sustained by one Insured.
Knowledge possessed or discovery made by any Insured shall constitute knowledge or discovery by all Insureds for all purposes of this bond.
C. | SINGLE LOSS LIMIT OF LIABILITY |
The Underwriters liability for each single loss shall not exceed the applicable Single Loss Limit of Liability shown in Item 3 of the Declarations.
D. | MAINTENANCE OF UNDERLYING INSURANCE AND DROP DOWN PROVISION |
1. | The Underlying Insurance shall be maintained during the Bond Period on the same terms and conditions in effect upon the inception date of this Bond, subject to any reduction of the limits of liability available under the Underlying Insurance solely by reason of payment in legal currency of losses covered thereunder. Except as provided in Section G. below, failure to comply with the foregoing shall not invalidate this Policy but the Insurer shall not be liable to a greater extent than if this condition had been complied with. To the extent that any Underlying Insurance is not maintained during the Policy Period (including any applicable Extended Reporting Period) on the same terms and conditions in effect upon the inception date of this Policy: |
a. | the Insureds shall be deemed to be self-insured for any loss not covered under the Underlying Insurance due to such failure, and |
b. | the Underlying Limits shall not be deemed to be depleted due to any loss payments covered under the Underlying Insurance on account of such changes in terms and conditions of such Underlying Insurance. |
2. | The Named Entity shall notify the Insurer in writing as soon as practicable before the effective date of any change in the terms and conditions of any Underlying Insurance. This Policy shall become subject to such changes only if and to the extent the Insurer agrees thereto by written endorsement to this Policy prior to the effective date of such changes, and only if the Insureds pay any additional premium required by the Insurer. |
3. | Notwithstanding any provisions of the Underlying Insurance to the contrary, for the purpose of the coverage afforded under this Policy, any exhaustion of any sublimit of liability within the Underlying Insurance shall not be deemed to exhaust the Underlying Insurance and the Insureds shall be deemed to be selfinsured for the amount of any loss in excess of such sublimit up to the amount of the total limit of liability of the Underlying Insurance. |
PRO-4175-A (ED. 02/04)
Page 2 of 3 |
EXCESS FIDELITY BOND
(NON-AGGREGATED)
4. | Failure of any Underlying Insurance to make payment due to insolvency or for any other reason, shall not reduce the Underlying Insurance Limit of Liability and this bond shall continue to respond only to loss in excess of that unreduced amount. |
E. | EXCLUSIONS |
This bond does not directly or indirectly cover:
1. | loss not reported to the Underwriter in writing within thirty (30) days after the termination of this bond; |
2. | loss resulting from the effects of nuclear fission or fusion or radioactivity; |
3. | loss of potential income, including but not limited to interest and dividends, not realized by an Insured; |
4. | damage of any type for which an Insured is legally liable, except compensatory damages, but not multiples thereof, arising from a loss covered under this bond; |
5. | all costs, fees and expenses incurred by an Insured in establishing the existence of or amount of loss covered under this bond; or as a party to any legal proceeding even is such legal proceeding results in a loss covered under this bond; |
6. | loss resulting from indirect of consequential loss of any nature. |
F. | CONFORMITY |
If any limitation embodied herein is prohibited by any law controlling the construction thereof, such limitation will be deemed to be amended to comply with the minimum requirements of such law.
G. | TERMINATION |
This Bond shall apply in conformance with the termination and/or cancellation provisions of the Primary Policy; provided that, in the event of the occurrence of the following, this bond shall terminate:
| immediately upon the appointment of a trustee, receiver, or liquidator of any Insured or the taking over of any Insured by State or Federal officials; or |
| immediately upon the dissolution or takeover of any Insured; or |
| immediately upon the exhaustion of the Aggregate Limit of Liability; or |
| immediately upon the expiration of the Bond Period; or |
| immediately upon the cancellation, termination or non-renewal of the any of the Underlying Insurance. |
H. | CHANGE OR MODIFICATION |
This bond or any amendment affecting same 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 duly executed by the Underwriter.
IN WITNESS WHEREOF, the Underwriter has caused this Policy to be executed by its Chairman and Secretary, but this Policy shall not be binding upon the Underwriter unless completed by the attachment of the Declarations and signed by a duly authorized representative of the Underwriter.
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Secretary | Chairman of the Board |
PRO-4175-A (ED. 02/04)
Page 3 of 3 |
COSURETY RIDER
It is agreed that:
1. | The term Underwriter as used in the attached bond shall be construed to mean, unless otherwise specified in this rider, all the Companies executing the attached bond. |
2. | Each of said Companies shall be liable only for such proportion of any Single Loss under the attached bond as the amount underwritten by such Company as specified in the Schedule forming a part hereof, bears to the Aggregate Limit of Liability of the attached bond, but in no event shall any of said Companies be liable for an amount greater than that underwritten by it. |
3. | In the absence of a request from any of said Companies to pay premiums directly to it, premiums for the attached bond may be paid to the Controlling Company for the account of all of said Companies. |
4. | In the absence of a request from any of said Companies that notice of claim and proof of loss be given to or filed directly with it, the giving of such notice to and the filing of such proof with, the Controlling Company shall be deemed to be in compliance with the conditions of the attached bond for the giving of notice of loss and the filing of proof of loss, if given and filed in accordance with said conditions. |
5. | The Controlling Company may give notice in accordance with the terms of the attached bond, terminating or canceling the attached bond as an entirety or as to any Employee, and any notice so given shall terminate or cancel the liability of all of said Companies as an entirety or as to such Employee, as the case may be. |
6. | Any Company other than the Controlling Company may give notice in accordance with the terms of the attached bond, terminating or canceling the entire liability of such other Company under the attached bond or as to any Employee. |
7. | In the absence of a request from any of said Companies that notice of termination or cancelation by the Insured of the attached bond in its entirety be given to or filed directly with it, the giving of such notice in accordance with the terms of the attached bond to the Controlling Company shall terminate or cancel the liability of all of said Companies as an entirety. The Insured may terminate or cancel the entire liability of any Company, other than the Controlling Company, under the attached bond by giving notice of such termination or cancelation to such other Company, and shall send copy of such notice to the Controlling Company. |
8. | In the event of the termination or cancelation of the attached bond as an entirety, no Company shall be liable to the Insured for a greater proportion of any return premium due the Insured than the amount underwritten by such Company bears to the Aggregate Limit of Liability of the attached bond. |
This rider/endorsement, which forms part of and is for attachment to the following described bond/policy issued by the designated Underwriter/Company takes effect on the effective date of said bond/policy, unless another effective date is shown below, at the hour stated in said bond/policy and expires concurrently with said bond/policy.
Must Be Completed | Complete only when this
rider/endorsement is not prepared with the bond/policy or is not to be effective with the bond/policy | |||||||
Rider/Endorsement No.
1 |
|
Policy No.
169880306 |
|
Issued to:
|
Effective date of this rider/endorsement |
Countersigned by |
| |||
Authorized Representative |
SR-5261b
(ED. 10/87)
Page 1 of 2
9. | In the event of the termination or cancelation of the attached bond as to any Company, such Company alone shall be liable to the Insured for any return premium due the Insured on account of such termination or cancelation. The termination or cancelation of the attached bond as to any Company other than the Controlling Company shall not terminate, cancel or otherwise affect the liability of the other Companies under the attached bond. |
Underwritten for the sum of $15,000,000 part of $20,000,000 |
Controlling Company Continental Insurance Company | |||
except as follows: | ||||
N/A | By: | AshleyHalpern | ||
Underwritten for the sum of $5,000,000 part of $20,000,000 | Great American Insurance Company | |||
except as follows: | ||||
N/A | By: |
|
Accepted:
By:
COSURETY RIDER FOR USE WITH ALL FORMS OF STANDARD BONDS. REVISED TO OCTOBER, 1987. |
This rider/endorsement, which forms part of and is for attachment to the following described bond/policy issued by the designated Underwriter/Company takes effect on the effective date of said bond/policy, unless another effective date is shown below, at the hour stated in said bond/policy and expires concurrently with said bond/policy.
Must Be Completed | Complete only when this
rider/endorsement is not prepared with the bond/policy or is not to be effective with the bond/policy | |||||||
Rider/Endorsement No.
1 |
|
Policy No.
169880306 |
|
Issued to:
|
Effective date of this rider/endorsement |
Countersigned by |
| |||
Authorized Representative |
SR-5261b
(ED. 10/87)
Page 2 of 2
Chubb Group of Insurance Companies |
DECLARATIONS FINANCIAL INSTITUTION | |
15 Mountain View Road, Warren, New Jersey 07059 | EXCESS BOND FORM E | |
NAME OF ASSURED: THE CHARLES SCHWAB FAMILY OF FUNDS |
Bond Number: 82210792 | |
FEDERAL INSURANCE COMPANY | ||
Incorporated under the laws of Indiana, | ||
211 MAIN STREET |
a stock insurance company, herein called the COMPANY | |
SAN FRANCISCO, CA 94105 |
||
Capital Center, 251 North Illinois, Suite 1100 | ||
Indianapolis, IN 46204-1927 |
ITEM 1. |
BOND PERIOD: from 12:01 a.m. on June 30, 2012 to 12:01 a.m. on June 30, 2013 | |
ITEM 2. |
AGGREGATE LIMIT OF LIABILITY: $5,000,000 | |
ITEM 3. |
SINGLE LOSS LIMIT OF LIABILITY:$5,000,000 | |
ITEM 4. |
DEDUCTIBLE AMOUNT: $0 | |
ITEM 5. |
PRIMARY BOND: | |
Insurer: St. Paul Fire and Marine Insurance Company | ||
Form and Bond No. Investment Company Blanket Bond / ZBN-14R74012-12-N2 | ||
Limit $25,000,000 | ||
Deductible: $100,000 | ||
Bond Period:June 30, 2012 to June 30, 2013 | ||
ITEM 6. |
COVERAGE EXCEPTIONS TO PRIMARY BOND: | |
NOTWITHSTANDING ANY COVERAGE PROVIDED BY THE PRIMARY BOND, THIS EXCESS BOND | ||
DOES NOT DIRECTLY OR INDIRECTLY COVER: None | ||
ITEM 7. |
TOTAL OF LIMITS OF LIABILITY OF OTHER UNDERLYING BONDS, EXCESS OF PRIMARY BOND: | |
$45,000,000 | ||
ITEM 8. |
THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE FOLLOWING | |
ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH: | ||
Endorsements 1 - 2 |
IN WITNESS WHEREOF, THE COMPANY issuing this Bond has caused this Bond to be signed by its authorized officers, but it shall not be valid unless also signed by a duly authorized representative of the Company. |
Excess Bond (7-92)
Form 17-02-0842 (Ed. 7-92) Page 1 of 1
The COMPANY, in consideration of the required premium, and in reliance on the statements 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 Clause |
Loss which would have been paid under the Primary Bond but for the fact the loss exceeds the Deductible Amount. | |
Coverage under this bond shall follow the terms and conditions of the Primary Bond, except with respect to: | ||
a. The coverage exceptions in ITEM 6. of the DECLARATIONS; and | ||
b. The limits of liability as stated in ITEM 2. and ITEM 3. of the DECLARATIONS. | ||
With respect to the exceptions stated above, the provisions of this bond shall apply. | ||
General Agreements |
||
Change Or Modification Of Primary Bond |
A. If after the inception date of this bond the Primary Bond is changed or modified, written notice of any such change or modification shall be given to the COMPANY as soon as practicable, not to exceed thirty (30) days after such change or modification, together with such information as the COMPANY may request. There shall be no coverage under this bond for any loss related to such change or modification until such time as the COMPANY is advised of and specifically agrees by written endorsement to provide coverage for such change or modification. | |
Representations Made By Assured |
B. The ASSURED represents that all information it has furnished to the COMPANY for this bond or otherwise is complete, true and correct. Such information constitutes 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 misrepresentation, omission, concealment or incorrect statement of a material fact by the ASSURED to the COMPANY shall be grounds for recision of this bond. | |
Notice To Company Of Legal Proceedings Against AssuredElection To Defend |
C. The ASSURED shall notify the COMPANY at the earliest practical moment, not to exceed thirty (30) days after the ASSURED receives notice, of any legal proceeding brought to determine the ASSUREDS liability for any loss, claim or damage which, if established, would constitute a collectible loss under this bond or any of the Underlying Bonds. Concurrent with such notice, and as requested thereafter, the ASSURED shall furnish copies of all pleadings and pertinent papers to the COMPANY. |
Excess Bond (7-92) R
Form 17-02-0842 (Ed. 7-92) R Page 1 of 5
General Agreements |
||||
Notice To Company Of Legal Proceedings Against AssuredElection To Defend (continued) | If the COMPANY elects to defend all or part of any legal proceeding, the court costs and attorneys fees incurred by the COMPANY and any settlement or judgment on that part defended by the COMPANY shall be a loss under this bond. The COMPANYS liability for court costs and attorneys fees incurred in defending all or part of such legal proceeding is limited to the proportion of such court costs and attorneys fees incurred that the amount recoverable under this bond bears to the amount demanded in such legal proceeding. If the COMPANY declines to defend the ASSURED, no settlement without the prior written consent of the COMPANY or judgment against the ASSURED shall determine the existence, extent or amount of coverage under this bond, and the COMPANY shall not be liable for any costs, fees and expenses incurred by the ASSURED. |
Conditions And Limitations |
||
Definitions |
1. As used in this bond: | |
a. Deductible Amount means the amount stated in ITEM 4. of the DECLARATIONS. In no event shall this Deductible Amount be reduced for any reason, including but not limited to, the non-existence, invalidity, insufficiency or uncollectibility of any of the Underlying Bonds, including the insolvency or dissolution of any Insurer providing coverage under any of the Underlying Bonds. | ||
b. Primary Bond means the bond scheduled in ITEM 5. of the DECLARATIONS or any bond that may replace or substitute for such bond. | ||
c. Single Loss means all covered loss, including court costs and attorneys fees incurred by the COMPANY under General Agreement C., resulting from: | ||
(1) any one act of burglary, robbery or attempt either, in which no employee of the ASSURED is implicated, or
(2) any one act or series of related acts on the part of any person resulting in damage to or destruction or misplacement of property, or
(3) all acts other than those specified in c.(1) and c.(2), caused by any person or in which such person is implicated, or
(4) any one event not specified above, in c.(1), c.(2) or c.(3).
d. Underlying Bonds means the Primary Bond and all other insurance coverage referred to in ITEM 7. of the DECLARATIONS. |
Excess Bond (7-92)
Form 17-02-0842 (Ed. 7-92)
Page 2 of 5
Conditions And Limitations (continued) |
||
Limit Of Liability |
2 . The COMPANYS total cumulative liability for all Single Losses of all ASSUREDS discovered during the BOND PERIOD shall not exceed the AGGREGATE LIMIT OF LIABILITY as stated in ITEM 2. of the DECLARATIONS. Each payment made under the terms of this bond shall reduce the unpaid portion of the AGGREGATE | |
Aggregate Limit Of Liability |
LIMITOF LIABILITY until it is exhausted. | |
On exhausting the AGGREGATE LIMIT OF LIABILITY by such payments:
a. the COMPANY shall have no further liability for loss or losses regardless of when discovered and whether or not previously reported to the COMPANY, and | ||
b. the COMPANY shall have no obligation under General Agreement C. to continue the defense of the ASSURED, and on notice by the COMPANY to the ASSURED that the AGGREGATE LIMIT OF LIABILITY has been exhausted, the ASSURED shall assume all responsibility for its defense at its own cost. | ||
The unpaid portion of the AGGREGATE LIMIT OF LIABILITY shall not be increased or reinstated by any recovery made and applied in accordance with Section 4. In the event that a loss of property is settled by indemnity in lieu of payment, then such loss shall not reduce the unpaid portion of the AGGREGATE LIMIT OF LIABILITY. | ||
Single Loss Limit Of Liability |
The COMPANYS liability for each Single Loss shall not exceed the SINGLE LOSS LIMIT OF LIABILITY as stated in ITEM 3. of the DECLARATIONS or the unpaid portion of the AGGREGATE LIMIT OF LIABILITY, whichever is less. | |
Discovery |
3. This bond applies only to loss first discovered by the ASSURED during the BOND PERIOD. Discovery occurs at the earlier 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. | |
Subrogation-Assignment- Recovery |
4. In the event of a payment under this bond, the COMPANY shall be subrogated to all of the ASSUREDS rights of recovery against any person or entity to the extent of such payments. On request, the ASSURED shall deliver to the COMPANY an assignment of the ASSUREDS rights, title and interest and causes of action against any person or entity to the extent of such payment. |
Excess Bond (7-92)
Form 17-02-0842 (Ed. 70-2) Page 3 of 5
Conditions And
Limitations
Subrogation-Assignment- Recovery (continued) |
Recoveries, whether effected by the COMPANY or by the ASSURED, shall be applied net of the expense of such recovery, first, to the satisfaction of the ASSUREDS loss which would otherwise have been paid but for the fact that it is in excess of the AGGREGATE LIMIT OF LIABILITY, second, to the COMPANY in satisfaction of amounts paid in settlement of the ASSUREDS claim and third, to the ASSURED in satisfaction of the DEDUCTIBLE AMOUNT. Recovery from reinsurance and/or indemnity of the COMPANY shall not be deemed a recovery under this Section. | |||||
Cooperation Of Assured | 5. At the COMPANYS 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, and | ||||||
b. produce for the COMPANYS 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 |
6. This bond terminates as an entirety on the earliest occurrence of any of the following: | |||||
a. sixty (60) days after the receipt by the ASSURED of a written notice from the COMPANY of its decision to terminate this bond, or | ||||||
b. immediately on the receipt by the COMPANY of a written notice from the ASSURED of its decision to terminate this bond, or | ||||||
c. immediately on the appointment of a trustee, receiver or liquidator to act on behalf of the ASSURED, or the taking over of the ASSURED by State or Federal officials, or | ||||||
d. immediately on the dissolution of the ASSURED, or | ||||||
e. immediately on exhausting the AGGREGATE LIMIT OF LIABILITY, or | ||||||
f. immediately on expiration of the BOND PERIOD, or | ||||||
g. immediately on cancellation, termination or recision of the Primary Bond. | ||||||
Conformity |
7. If any limitation within this bond is prohibited by any law controlling this bonds construction, such limitation shall be deemed to be amended so as to equal the minimum period of limitation provided by such law. |
Excess Bond (7-92)
Form 17-02-0842 (Ed. 7-92) Page 4 of 5
Conditions And
Limitations
(continued)
Change Or Modification Of This Bond | 8. 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. |
Excess Bond (7-92)
Form 17-02-0842 (Ed. 70-2)
Page 5 of 5
ENDORSEMENT/RIDER | ||||
Effective date of this endorsement/rider: June 30, 2012 |
FEDERAL INSURANCE COMPANY | |||
Endorsement/Rider No. | 1 | |||
To be attached to and | ||||
form a part of Bond No. | 82210792 |
Issued to: THE CHARLES SCHWAB FAMILY OF FUNDS
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS
It is agreed that this insurance does not apply to the extent that trade or economic sanctions or other similar laws or regulations prohibit the coverage provided by this insurance.
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.
14-02-9228 (02/2010)
Page 1
FEDERAL INSURANCE COMPANY | ||||
Endorsement No: | 2 | |||
Bond Number: | 82210792 |
NAME OF ASSURED: THE CHARLES SCHWAB FAMILY OF FUNDS
PREMIUM ENDORSEMENT
It is agreed that:
1. | The premium for this bond for the period June 30, 2012 to June 30, 2013 is: |
Premium: Ten Thousand Dollars ($10,000.00)
2. | It is further agreed that this premium is subject to change during this period if amendments are made to this bond at the request of the ASSURED. |
This Endorsement applies to loss discovered after 12:01 a.m. on June 30, 2012.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: July 24, 2012
Excess Bond
Form 17-02-0735 (Rev. 1-97)
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 (the Act), effective December 26, 2007, this policy makes available to you insurance for losses arising out of certain acts of 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 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 85% of covered terrorism losses that exceed the statutorily established deductible to be paid by the insurance company providing the coverage.
However, if aggregate insured losses attributable to terrorist acts certified under the Act exceed $100 billion in a Program Year (January 1 through December 31), the Treasury shall not make any payment for any portion of the amount of such losses that exceeds $100 billion.
10-02-1281 (Ed. 1/2003)
If aggregate insured losses attributable to terrorist acts certified under the Act exceed $100 billion in a Program Year (January 1 through December 31) and we have met our insurer deductible under the Act, we shall not be liable for the payment of any portion of the amount of such losses that exceeds $100 billion, and in such case insured losses up to that amount are subject to pro rata allocation in accordance with procedures established by the Secretary of the Treasury.
The portion of your policys 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.
10-02-1281 (Ed. 1/2003)
RESOLUTIONS OF THE BOARDS OF TRUSTEES OF
THE CHARLES SCHWAB FAMILY OF FUNDS
SCHWAB INVESTMENTS
SCHWAB CAPITAL TRUST
SCHWAB ANNUITY PORTFOLIOS
LAUDUS TRUST
LAUDUS INSTITUTIONAL TRUST
Adopted June 5, 2012
Fidelity Bond for Schwab Funds and Laudus Funds
RESOLVED, that the form and amount of the fidelity bonds in the aggregate principal amount of $75,000,000 (Seventy Five Million Dollars) covering The Charles Schwab Family of Funds, Schwab Investments, Schwab Capital Trust, Schwab Annuity Portfolios, Laudus Trust and Laudus Institutional Trust (each, a Trust and collectively, the Trusts) for the periods stated in the following resolutions be, and they hereby are, approved by the members of the Boards of Trustees (the Trustees) of the Trusts and separately by a majority of the Trustees who are not interested persons of any Trust, as that term is defined by the Investment Company Act of 1940, as amended (1940 Act), after consideration of all factors deemed relevant, including, but not limited to, the value of the assets of the Trusts, the type and terms of the arrangements made for the custody and safekeeping of the Trusts assets, and the nature of the securities in the funds of the Trusts; and
FURTHER RESOLVED, that after considering all relevant factors, the actions of the officers of the Trusts in procuring a joint fidelity bond issued by St. Paul Travelers and Great American Insurance Group providing aggregate coverage of $25,000,000 (Twenty-Five Million Dollars) (Travelers-Great American Joint Bond) against larceny and embezzlement and such other types of losses as are included in the Travelers-Great American Joint Bond for the 12-month period ending June 30, 2013, with a premium to be shared pro rata according to the net assets of each Trust, and the form and amount of the Travelers-Great American Joint Bond, are hereby approved; and
FURTHER RESOLVED, that after considering all relevant factors, the actions of the officers of the Trusts in procuring a joint fidelity bond issued by ICI Mutual Insurance Company providing excess coverage of $25,000,000 (Twenty-Five Million Dollars) (ICI Joint Excess Bond) against larceny and embezzlement and such other types of losses as are included in the ICI Joint Excess Bond for the 12-month period ending June 30, 2013, with a premium to be shared pro rata according to the net assets of each Trust, and the form and amount of the ICI Joint Excess Bond, are hereby approved; and
FURTHER RESOLVED, that after considering all relevant factors, the actions of the officers of the Trusts in procuring a joint fidelity bond issued by CNA Insurance Company and Great American Insurance Group providing excess coverage of $20,000,000 (Twenty Million Dollars) (CNA-Great American Joint Excess Bond) against larceny and embezzlement and such other types of losses as are included in the CNA-Great American Joint Excess Bond for the 12-month period ending June 30, 2013, with a premium to be shared pro rata according to the net assets of each Trust, and the form and amount of the CNA-Great American Joint Excess Bond, are hereby approved; and
FURTHER RESOLVED, that after considering all relevant factors, the actions of the officers of the Trusts in procuring a joint fidelity bond issued by Federal Insurance Company (Chubb) providing excess coverage of $5,000,000 (Five Million Dollars) (Chubb Joint Excess Bond) against larceny and embezzlement and such other types of losses as are included in the Chubb Joint Excess Bond for the 12-month period ending June 30, 2013, with a premium to be shared pro rata according to the net assets of each Trust, and the form and amount of the Chubb Joint Excess Bond, are hereby approved; and
FURTHER RESOLVED, that the participation by each Trust in the Joint Bonds described above is determined to be fair and reasonable and in the best interests of each Trust and its shareholders by the Trustees of the Trusts and separately by a majority of the Trustees who are not interested persons of any Trust, as that term is defined by the 1940 Act;
FURTHER RESOLVED, that the officers of the Trusts be, and each of them hereby is, authorized to execute such documents and papers as may be required by the rules and regulations promulgated under the 1940 Act; and
FURTHER RESOLVED, that the Secretary of the Trusts be, and hereby is, designated as the party responsible for making the necessary filings and giving the notices with respect to the Trusts Joint Bonds required by paragraph (g) of Rule 17g-1 under the 1940 Act; and
FURTHER RESOLVED, that the agreement regarding the Joint Bonds approved pursuant to the preceding resolutions, stating that, in the event recovery is received under any of the Joint Bonds as a result of the loss by a Trust and one or more of the other named insureds, each such Trust shall receive an equitable and proportionate share of the recovery, but at least equal to the amount it would have received had it provided and maintained a single insured bond with the minimum coverage required under Rule 17g-1 under the 1940 Act, is hereby ratified and continued by the Trustees of the Trusts and separately by a majority of the Trustees who are not interested persons of any Trust, as that term is defined by the 1940 Act.
STATEMENT OF REGISTERED INVESTMENT COMPANIES
PURSUANT TO RULE 17g-1
OF THE INVESTMENT COMPANY ACT OF 1940
Pursuant to rule 17g-1 under the Investment Company Act of 1940, as amended, the undersigned registered investment companies hereby state as follows:
1. | But for its participation in a joint fidelity bond arrangement, The Charles Schwab Family of Funds would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $2,500,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of over $152,544,401,108, as of March 31, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
2. | But for its participation in a joint fidelity bond arrangement, Schwab Investments would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $2,500,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of over $8,576,960,807, as of May 31, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
3. | But for its participation in a joint fidelity bond arrangement, Schwab Capital Trust would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $2,500,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of over $27,769,767,267, as of April 29, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
4. | But for its participation in a joint fidelity bond arrangement, Schwab Annuity Portfolios would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $750,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of $275,282,381, as of March 31, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
5. | But for its participation in a joint fidelity bond arrangement, Laudus Trust would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $1,500,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of over $2,196,931,878, as of March 31, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
6. | But for its participation in a joint fidelity bond arrangement, Laudus Institutional Trust would be required under Rule 17g-1 to purchase a single insured fidelity bond in the minimum amount of $600,000, said amount being the requisite minimum under Rule 17g-1 for registered investment companies with total assets of over $173,908,942, as of March 31, 2012, the end of the most recent fiscal quarter prior to the date of determination. |
7. | The premium for the joint insured bond covering each has been paid through the period ending June 30, 2013. |
THE CHARLES SCHWAB FAMILY OF FUNDS SCHWAB INVESTMENTS SCHWAB CAPITAL TRUST SCHWAB ANNUITY PORTFOLIOS
LAUDUS TRUST LAUDUS INSTITUTIONAL TRUST |
/s/ Christine Pierangeli |
Christine Pierangeli Assistant Secretary & Assistant Clerk |
JOINT FIDELITY BOND AGREEMENT
WHEREAS, the undersigned parties have determined that it is in their best interests to enter into a joint fidelity bond, which bond is intended to meet the applicable standards of Rule 17g-1 under the Investment Company Act of 1940, as amended (the 1940 Act); and
WHEREAS, Rule 17g-1 under the 1940 Act requires that each registered management company entering into a joint fidelity bond shall agree with the other named insureds as to the allocation of the recovery received under the joint bond as a result of the loss sustained by the registered management investment company and one or more other named insureds;
NOW THEREFORE, in consideration of the foregoing and of other good and valuable consideration, the undersigned parties hereby agree as follows:
1. | In the event recovery is received under the policy as a result of a loss sustained by one of the registered management investment companies named below and one or more other named insureds, the registered management investment company shall receive an equitable and proportionate share of the recovery, but at least equal to the amount it would have received had it provided and maintained a single insured bond with the minimum coverage required under rule 17g-1 under the 1940 Act. |
2. | This Agreement shall be governed by and construed in accordance with the laws of The Commonwealth of Massachusetts. |
IN WITNESS WHEREOF, each of the undersigned registered management investment companies has caused this Agreement to be executed by a duly authorized officer as of the 5th day of June, 2012.
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