RESOLVED, that the Funds shall be covered under a joint insured bond issued by
Vigilant Insurance Company in the amount of $10 million; and
FURTHER RESOLVED, that the President or Vice President is authorized and
empowered to enter into an agreement with the other joint insureds which is to
provide that in the event recovery is received under the Joint Bond as a result
of a loss sustained by one or more other named insureds, that each Fund shall
receive an equitable and proportionate share of the recovery, but at least equal
to the amount which each Fund would have received had each Fund provided and
maintained a single insured bond with the minimum coverage required by paragraph
(d) (1) of Rule 17g-1; and
FURTHER RESOLVED, that the premium of $30,000 for said bond be allocated
proportionately to each insured party taking all relevant factors into
consideration including the extent to which the share of the premium allocated
to each Fund under the bond is less than the premium which each Fund would have
had to pay had it maintained a single insured bond; and
FURTHER RESOLVED, that the President of each Fund is authorized and directed to
take all action necessary or proper to carry into effect the foregoing
resolutions, and that David T. Henigson be and he hereby is designated as the
officer who shall make filings and give the notices on behalf of the Funds
required by Rule 17g-1.
Chubb Group of Insurance Companies DECLARATIONS
FINANCIAL INSTITUTION INVESTMENT
15 Mountain View Road, COMPANY ASSET PROTECTION BOND
Warren, New Jersey 07059
NAME OF ASSURED (including its
Subsidiaries): Bond Number: 81458759
VALUE LINE, INC.
VIGILANT INSURANCE COMPANY
Incorporated under the laws of New York
a stock insurance company herein called
the COMPANY
220 East 42nd Street
New York, NY 10017
55 Water Street, New York NY 10041-2899
--------------------------------------------------------------------------------
ITEM 1. BOND PERIOD: from 12:01 a.m. on March 15, 2006
to 12:01 a.m. on March 15, 2007
ITEM 2. LIMITS OF LIABILITY--DEDUCTIBLE AMOUNTS:
If "Not Covered" is inserted below opposite any specified INSURING
CLAUSE, such INSURING CLAUSE and any other reference shall be deemed to
be deleted. There shall be no deductible applicable to any loss under
INSURING CLAUSE 1. sustained by any Investment Company.
DEDUCTIBLE
INSURING CLAUSE LIMIT OF LIABILITY AMOUNT
------------------------------------------------- -------------------- ------------
1. Employee $ 10,000,000 $ 100,000
2. On Premises $ 10,000,000 $ 100,000
3. In Transit $ 10,000,000 $ 100,000
4. Forgery or Alteration $ 10,000,000 $ 100,000
5. Extended Forgery $ 10,000,000 $ 100,000
6. Counterfeit Money $ 10,000,000 $ 100,000
7. Threats to Person $ 10,000,000 $ 100,000
8. Computer System $ 10,000,000 $ 100,000
9. Voice Initiated Funds Transfer Instruction $ Not Covered $ N/A
10. Uncollectible Items of Deposit $ 100,000 $ 5,000
11. Audit Expense $ 25,000 $ 5,000
ITEM 3. THE LIABILITY OF THE COMPANY IS ALSO SUBJECT TO THE TERMS OF THE
FOLLOWING ENDORSEMENTS EXECUTED SIMULTANEOUSLY HEREWITH:
1 - 5
IN WITNESS WHEREOF, THE COMPANY has caused this Bond to be signed by its
authorized officers, but it shall not be valid unless also signed by an
authorized representative of the Company.
/s/ W. Andrew Macon /s/ Thomas F. Motamed
-------------------------------------- --------------------------------
Secretary President
Countersigned by /s/ Robert Hamburger
---------------------- --------------------------------
Authorized Representative
--------------------------------------------------------------------------------
ICAP Bond (5-98) - Vigilant
Form 17-02-1422 (Ed. 5-98) Page 1 of 1
The COMPANY, in consideration of payment of the required
premium, and in reliance on the APPLICATION and all
other statements made and information furnished to the
COMPANY by the ASSURED, and subject to the DECLARATIONS
made a part of this Bond and to all other terms and
conditions of this Bond, agrees to pay the ASSURED for:
--------------------------------------------------------------------------------
Insuring Clauses
Employee 1. Loss resulting directly from Larceny or
Embezzlement committed by any Employee, alone or
in collusion with others.
--------------------------------------------------------------------------------
On Premises 2. Loss of Property resulting directly from robbery,
burglary, false pretenses, common law or statutory
larceny, misplacement, mysterious unexplainable
disappearance, damage, destruction or removal,
from the possession, custody or control of the
ASSURED, while such Property is lodged or
deposited at premises located anywhere.
--------------------------------------------------------------------------------
In Transit 3. Loss of Property resulting directly from common
law or statutory larceny, misplacement, mysterious
unexplainable disappearance, damage or
destruction, while the Property is in transit
anywhere:
a. in an armored motor vehicle, including
loading and unloading thereof,
b. in the custody of a natural person acting as
a messenger of the ASSURED, or
c. in the custody of a Transportation Company
and being transported in a conveyance other
than an armored motor vehicle provided,
however, that covered Property transported
in such manner is limited to the following:
(1) written records,
(2) securities issued in registered form,
which are not endorsed or are
restrictively endorsed, or
(3) negotiable instruments not payable to
bearer,which are not endorsed or are
restrictively endorsed.
Coverage under this INSURING CLAUSE begins immediately on the
receipt of such Property by the natural person or Transportation
Company and ends immediately on delivery to the premises of the
addressee or to any representative of the addressee located
anywhere.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 1 of 19
--------------------------------------------------------------------------------
Insuring Clauses
(continued)
Forgery Or Alteration 4. Loss resulting directly from:
a. Forgery on, or fraudulent material
alteration of, any bills of exchange,
checks, drafts, acceptances, certificates of
deposits, promissory notes, due bills, money
orders, orders upon public treasuries,
letters of credit, other written promises,
orders or directions to pay sums certain in
money, or receipts for the withdrawal of
Property, or
b. transferring, paying or delivering any funds
or other Property, or establishing any
credit or giving any value in reliance on
any written instructions, advices or
applications directed to the ASSURED
authorizing or acknowledging the transfer,
payment, delivery or receipt of funds or
other Property, which instructions, advices
or applications fraudulently purport to bear
the handwritten signature of any customer of
the ASSURED, or shareholder or subscriber to
shares of an Investment Company, or of any
financial institution or Employee but which
instructions, advices or applications either
bear a Forgery or have been fraudulently
materially altered without the knowledge and
consent of such customer, shareholder,
subscriber, financial institution or
Employee;
excluding, however, under this INSURING CLAUSE any
loss covered under INSURING CLAUSE 5. of this
Bond, whether or not coverage for INSURING CLAUSE
5. is provided for in the DECLARATIONS of this
Bond.
For the purpose of this INSURING CLAUSE, a
mechanically reproduced facsimile signature is
treated the same as a handwritten signature.
--------------------------------------------------------------------------------
Extended Forgery 5. Loss resulting directly from the ASSURED having,
in good faith, and in the ordinary course of
business, for its own account or the account of
others in any capacity:
a. acquired, accepted or received, accepted or
received, sold or delivered, or given value,
extended credit or assumed liability, in
reliance on any original Securities,
documents or other written instruments which
prove to:
(1) bear a Forgery or a fraudulently
material alteration,
(2) have been lost or stolen, or
(3) be Counterfeit, or
b. guaranteed in writing or witnessed any
signatures on any transfer, assignment, bill
of sale, power of attorney, guarantee,
endorsement or other obligation upon or in
connection with any Securities, documents or
other written instruments.
Actual physical possession, and continued actual
physical possession if taken as collateral, of
such Securities, documents or other written
instruments by an Employee, Custodian, or a
Federal or State chartered deposit institution of
the ASSURED is a condition precedent to the
ASSURED having relied on such items. Release or
return of such collateral is an acknowledgment by
the ASSURED that it no longer relies on such
collateral.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 2 of 19
Insuring Clauses
Extended Forgery For the purpose of this INSURING CLAUSE, a
(continued) mechanically reproduced facsimile signature is
treated the same as a handwritten signature.
--------------------------------------------------------------------------------
Counterfeit Money 6. Loss resulting directly from the receipt by the
ASSURED in good faith of any Counterfeit money.
--------------------------------------------------------------------------------
Threats To Person 7. Loss resulting directly from surrender of Property
away from an office of the ASSURED as a result of
a threat communicated to the ASSURED to do bodily
harm to an Employee as defined in Section 1.e.
(1), (2) and (5), a Relative or invitee of such
Employee, or a resident of the household of such
Employee, who is, or allegedly is, being held
captive provided, however, that prior to the
surrender of such Property:
a. the Employee who receives the threat has
made a reasonable effort to notify an
officer of the ASSURED who is not involved
in such threat, and
b. the ASSURED has made a reasonable effort to
notify the Federal Bureau of Investigation
and local law enforcement authorities
concerning such threat.
It is agreed that for purposes of this INSURING
CLAUSE, any Employee of the ASSURED, as set forth
in the preceding paragraph, shall be deemed to be
an ASSURED hereunder, but only with respect to the
surrender of money, securities and other tangible
personal property in which such Employee has a
legal or equitable interest.
--------------------------------------------------------------------------------
Computer System 8. Loss resulting directly from fraudulent:
a. entries of data into, or
b. changes of data elements or programs within,
a Computer System, provided the fraudulent entry
or change causes:
(1) funds or other property to be
transferred, paid or delivered,
(2) an account of the ASSURED or of its
customer to be added, deleted, debited
or credited, or
(3) an unauthorized account or a
fictitious account to be debited or
credited.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 3 of 19
Insuring Clauses
(continued)
Voice Initiated Funds 9. Loss resulting directly from Voice Initiated Funds
Transfer Instruction Transfer Instruction to the ASSURED authorizing
the transfer of dividends or redemption directed
proceeds of Investment Company shares from a
Customer's account, provided such Voice Initiated
Funds Transfer Instruction was:
a. received at the ASSURED'S offices by those
Employees of the ASSURED specifically
authorized to receive the Voice Initiated
Funds Transfer Instruction,
b. made by a person purporting to be a
Customer, and
c. made by said person for the purpose of
causing the ASSURED or Customer to sustain a
loss or making an improper personal
financial gain for such person or any other
person.
In order for coverage to apply under this INSURING
CLAUSE, all Voice Initiated Funds Transfer
Instructions must be received and processed in
accordance with the Designated Procedures outlined
in the APPLICATION furnished to the COMPANY.
--------------------------------------------------------------------------------
Uncollectible Items of 10. Loss resulting directly from the ASSURED having
Deposit credited an account of a customer, shareholder or
subscriber on the faith of any Items of Deposit
which prove to be uncollectible, provided that the
crediting of such account causes:
a. redemptions or withdrawals to be permitted,
b. shares to be issued, or
c. dividends to be paid,
from an account of an Investment Company.
In order for coverage to apply under this INSURING
CLAUSE, the ASSURED must hold Items of Deposit for
the minimum number of days stated in the
APPLICATION before permitting any redemptions or
withdrawals, issuing any shares or paying any
dividends with respect to such Items of Deposit.
Items of Deposit shall not be deemed uncollectible
until the ASSURED'S standard collection procedures
have failed.
--------------------------------------------------------------------------------
Audit Expense 11. Expense incurred by the ASSURED for that part of
the cost of audits or examinations required by any
governmental regulatory authority or
self-regulatory organization to be conducted by
such authority, organization or their appointee by
reason of the discovery of loss sustained by the
ASSURED and covered by this Bond.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 4 of 19
General Agreements
Additional Companies A. If more than one corporation, or Investment
Included As Assured Company, or any combination of them is included as
the ASSURED herein:
(1) The total liability of the COMPANY under
this Bond for loss or losses sustained by
any one or more or all of them shall not
exceed the limit for which the COMPANY would
be liable under this Bond if all such loss
were sustained by any one of them.
(2) Only the first named ASSURED shall be deemed
to be the sole agent of the others for all
purposes under this Bond, including but not
limited to the giving or receiving of any
notice or proof required to be given and for
the purpose of effecting or accepting any
amendments to or termination of this Bond.
The COMPANY shall furnish each Investment
Company with a copy of the Bond and with any
amendment thereto, together with a copy of
each formal filing of claim by any other
named ASSURED and notification of the terms
of the settlement of each such claim prior
to the execution of such settlement.
(3) The COMPANY shall not be responsible for the
proper application of any payment made
hereunder to the first named ASSURED.
(4) Knowledge possessed or discovery made by any
partner, director, trustee, officer or
supervisory employee of any ASSURED shall
constitute knowledge or discovery by all the
ASSUREDS for the purposes of this Bond.
(5) If the first named ASSURED ceases for any
reason to be covered under this Bond, then
the ASSURED next named on the APPLICATION
shall thereafter be considered as the first
named ASSURED for the purposes of this Bond.
--------------------------------------------------------------------------------
Representation Made By B. The ASSURED represents that all information it has
Assured furnished in the APPLICATION for this Bond or
otherwise is complete, true and correct. Such
APPLICATION and other information constitute part
of this Bond.
The ASSURED must promptly notify the COMPANY of
any change in any fact or circumstance which
materially affects the risk assumed by the COMPANY
under this Bond.
Any intentional misrepresentation, omission,
concealment or incorrect statement of a material
fact, in the APPLICATION or otherwise, shall be
grounds for recision of this Bond.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 5 of 19
--------------------------------------------------------------------------------
General Agreements
(continued)
Additional Offices Or C. If the ASSURED, other than an Investment Company,
Employees - while this Bond is in force, merges or
Consolidation, Merger consolidates with, or purchases or acquires assets
Or Purchase Or or liabilities of another institution, the ASSURED
Acquisition Of Assets shall not have the coverage afforded under this
Or Liabilities - Bond for loss which has:
Notice To Company
(1) occurred or will occur on premises, or
(2) been caused or will be caused by an
employee, or
(3) arisen or will arise out of the assets or
liabilities,
of such institution, unless the ASSURED:
a. gives the COMPANY written notice of the
proposed consolidation, merger or purchase
or acquisition of assets or liabilities
prior to the proposed effective date of such
action, and
b. obtains the written consent of the COMPANY
to extend some or all of the coverage
provided by this Bond to such additional
exposure, and
c. on obtaining such consent, pays to the
COMPANY an additional premium.
--------------------------------------------------------------------------------
Change Of Control - D. When the ASSURED learns of a change in control
Notice To Company (other than in an Investment Company), as set
forth in Section 2(a) (9) of the Investment
Company Act of 1940, the ASSURED shall within
sixty (60) days give written notice to the COMPANY
setting forth:
(1) the names of the transferors and transferees
(or the names of the beneficial owners if
the voting securities are registered in
another name),
(2) the total number of voting securities owned
by the transferors and the transferees (or
the beneficial owners), both immediately
before and after the transfer, and
(3) the total number of outstanding voting
securities.
Failure to give the required notice shall result
in termination of coverage for any loss involving
a transferee, to be effective on the date of such
change in control.
--------------------------------------------------------------------------------
Court Costs And E. The COMPANY will indemnify the ASSURED for court
Attorneys' Fees costs and reasonable attorneys' fees incurred and
paid by the ASSURED in defense, whether or not
successful, whether or not fully litigated on the
merits and whether or not settled, of any claim,
suit or legal proceeding with respect to which the
ASSURED would be entitled to recovery under this
Bond. However, with respect to INSURING CLAUSE 1.,
this Section shall only apply in the event that:
(1) an Employee admits to being guilty of
Larceny or Embezzlement,
(2) an Employee is adjudicated to be guilty of
Larceny or Embezzlement, or
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 6 of 19
General Agreements
Court Costs And (3) in the absence of 1 or 2 above, an
Attorneys' Fees arbitration panel agrees, after a review of
(continued) an agreed statement of facts between the
COMPANY and the ASSURED, that an Employee
would be found guilty of Larceny or
Embezzlement if such Employee were
prosecuted.
The ASSURED shall promptly give notice to the
COMPANY of any such suit or legal proceeding and
at the request of the COMPANY shall furnish copies
of all pleadings and pertinent papers to the
COMPANY. The COMPANY may, at its sole option,
elect to conduct the defense of all or part of
such legal proceeding. The defense by the COMPANY
shall be in the name of the ASSURED through
attorneys selected by the COMPANY. The ASSURED
shall provide all reasonable information and
assistance as required by the COMPANY for such
defense.
If the COMPANY declines to defend the ASSURED, no
settlement without the prior written consent of
the COMPANY nor judgment against the ASSURED shall
determine the existence, extent or amount of
coverage under this Bond.
If the amount demanded in any such suit or legal
proceeding is within the DEDUCTIBLE AMOUNT, if
any, the COMPANY shall have no liability for court
costs and attorney's fees incurred in defending
all or part of such suit or legal proceeding.
If the amount demanded in any such suit or legal
proceeding is in excess of the LIMIT OF LIABILITY
stated in ITEM 2. of the DECLARATIONS for the
applicable INSURING CLAUSE, the COMPANY'S
liability for court costs and attorney's fees
incurred in defending all or part of such suit or
legal proceedings is limited to the proportion of
such court costs and attorney's fees incurred that
the LIMIT OF LIABILITY stated in ITEM 2. of the
DECLARATIONS for the applicable INSURING CLAUSE
bears to the total of the amount demanded in such
suit or legal proceeding.
If the amount demanded is any such suit or legal
proceeding is in excess of the DEDUCTIBLE AMOUNT,
if any, but within the LIMIT OF LIABILITY stated
in ITEM 2. of the DECLARATIONS for the applicable
INSURING CLAUSE, the COMPANY'S liability for court
costs and attorney's fees incurred in defending
all or part of such suit or legal proceedings
shall be limited to the proportion of such court
costs or attorney's fees that the amount demanded
that would be payable under this Bond after
application of the DEDUCTIBLE AMOUNT, bears to the
total amount demanded.
Amounts paid by the COMPANY for court costs and
attorneys' fees shall be in addition to the LIMIT
OF LIABILITY stated in ITEM 2. of the
DECLARATIONS.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 7 of 19
--------------------------------------------------------------------------------
Conditions And
Limitations
Definitions 1. As used in this Bond:
a. Computer System means a computer and all
input, output, processing, storage, off-line
media libraries, and communication
facilities which are connected to the
computer and which are under the control and
supervision of the operating system(s) or
application(s) software used by the ASSURED.
b. Counterfeit means an imitation of an actual
valid original which is intended to deceive
and be taken as the original.
c. Custodian means the institution designated
by an Investment Company to maintain
possession and control of its assets.
d. Customer means an individual, corporate,
partnership, trust customer, shareholder or
subscriber of an Investment Company which
has a written agreement with the ASSURED for
Voice Initiated Funds Transfer Instruction.
e. Employee means:
(1) an officer of the ASSURED,
(2) a natural person while in the regular
service of the ASSURED at any of the
ASSURED'S premises and compensated
directly by the ASSURED through its
payroll system and subject to the
United States Internal Revenue Service
Form W -2 or equivalent income
reporting plans of other countries,
and whom the ASSURED has the right to
control and direct both as to the
result to be accomplished and details
and means by which such result is
accomplished in the performance of
such service,
(3) a guest student pursuing studies or
performing duties in any of the
ASSURED'S premises,
(4) an attorney retained by the ASSURED
and an employee of such attorney while
either is performing legal services
for the ASSURED,
(5) a natural person provided by an
employment contractor to perform
employee duties for the ASSURED under
the ASSURED'S supervision at any of
the ASSURED'S premises,
(6) an employee of an institution merged
or consolidated with the ASSURED prior
to the effective date of this Bond,
(7) a director or trustee of the ASSURED,
but only while performing acts within
the scope of the customary and usual
duties of any officer or other
employee of the ASSURED or while
acting as a member of any committee
duly elected or appointed to examine
or audit or have custody of or access
to Property of the ASSURED, or
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 8 of 19
Conditions And
Limitations
Definitions (8) each natural person, partnership or
(continued) corporation authorized by written
agreement with the ASSURED to perform
services as electronic data processor
of checks or other accounting records
related to such checks but only while
such person, partnership or
corporation is actually performing
such services and not:
a. creating, preparing, modifying
or maintaining the ASSURED'S
computer software or programs,
or
b. acting as transfer agent or in
any other agency capacity in
issuing checks, drafts or
securities for the ASSURED,
(9) any partner, officer or employee of an
investment advisor, an underwriter
(distributor), a transfer agent or
shareholder accounting recordkeeper,
or an administrator, for an Investment
Company while performing acts coming
within the scope of the customary and
usual duties of an officer or employee
of an Investment Company or acting as
a member of any committee duly elected
or appointed to examine, audit or have
custody of or access to Property of an
Investment Company.
The term Employee shall not include
any partner, officer or employee of a
transfer agent, shareholder accounting
recordkeeper or administrator:
a. which is not an "affiliated
person" (as defined in Section
2(a) of the Investment Company
Act of 1940) of an Investment
Company or of the investment
advisor or underwriter
(distributor) of such Investment
Company, or
b. which is a "bank" (as defined in
Section 2(a) of the Investment
Company Act of 1940).
This Bond does not afford
coverage in favor of the
employers of persons as set
forth in e. (4), (5) and (8)
above, and upon payment to the
ASSURED by the COMPANY resulting
directly from Larceny or
Embezzlement committed by any of
the partners, officers or
employees of such employers,
whether acting alone or in
collusion with others, an
assignment of such of the
ASSURED'S rights and causes of
action as it may have against
such employers by reason of such
acts so committed shall, to the
extent of such payment, be given
by the ASSURED to the COMPANY,
and the ASSURED shall execute
all papers necessary to secure
to the COMPANY the rights
provided for herein.
Each employer of persons as set forth
in e.(4), (5) and (8) above and the
partners, officers and other employees
of such employers shall collectively
be deemed to be one person for all the
purposes of this Bond; excepting,
however, the fifth paragraph of
Section 13.
Independent contractors not specified
in e.(4), (5) or (8) above,
intermediaries, agents, brokers or
other representatives of the same
general character shall not be
considered Employees.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 9 of 19
--------------------------------------------------------------------------------
Conditions And
Limitations
Definitions f. Forgery means the signing of the name of
(continued) another natural person with the intent to
deceive but does not mean a signature which
consists in whole or in part of one's own
name, with or without authority, in any
capacity for any purpose.
g. Investment Company means any investment
company registered under the Investment
Company Act of 1940 and listed under the
NAME OF ASSURED on the DECLARATIONS.
h. Items of Deposit means one or more checks or
drafts drawn upon a financial institution in
the United States of America.
i. Larceny or Embezzlement means larceny or
embezzlement as defined in Section 37 of the
Investment Company Act of 1940.
j. Property means money, revenue and other
stamps; securities; including any note,
stock, treasury stock, bond, debenture,
evidence of indebtedness, certificate of
deposit, certificate of interest or
participation in any profit- sharing
agreement, collateral trust certificate,
preorganization certificate or subscription,
transferable share, investment contract,
voting trust certificate, certificate of
deposit for a security, fractional undivided
interest in oil, gas, or other mineral
rights, any interest or instruments commonly
known as a security under the Investment
Company Act of 1940, any other certificate
of interest or participation in, temporary
or interim certificate for, receipt for,
guarantee of, or warrant or right to
subscribe to or purchase any of the
foregoing; bills of exchange; acceptances;
checks; withdrawal orders; money orders;
travelers' letters of credit; bills of
lading; abstracts of title; insurance
policies, deeds, mortgages on real estate
and/or upon chattels and interests therein;
assignments of such policies, deeds or
mortgages; other valuable papers, including
books of accounts and other records used by
the ASSURED in the conduct of its business
(but excluding all electronic data
processing records); and, all other
instruments similar to or in the nature of
the foregoing in which the ASSURED acquired
an interest at the time of the ASSURED'S
consolidation or merger with, or purchase of
the principal assets of, a predecessor or
which are held by the ASSURED for any
purpose or in any capacity and whether so
held gratuitously or not and whether or not
the ASSURED is liable therefor.
k. Relative means the spouse of an Employee or
partner of the ASSURED and any unmarried
child supported wholly by, or living in the
home of, such Employee or partner and being
related to them by blood, marriage or legal
guardianship.
l. Securities, documents or other written
instruments means original (including
original counterparts) negotiable or
non-negotiable instruments, or assignments
thereof, which in and of themselves
represent an equitable interest, ownership,
or debt and which are in the ordinary course
of business transferable by delivery of such
instruments with any necessary endorsements
or assignments.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 10 of 19
Conditions And
Limitations
Definitions m. Subsidiary means any organization that, at
(continued) the inception date of this Bond, is named in
the APPLICATION or is created during the
BOND PERIOD and of which more than fifty
percent (50%) of the outstanding securities
or voting rights representing the present
right to vote for election of directors is
owned or controlled by the ASSURED either
directly or through one or more of its
subsidiaries.
n. Transportation Company means any
organization which provides its own or its
leased vehicles for transportation or which
provides freight forwarding or air express
services.
o. Voice Initiated Election means any election
concerning dividend options available to
Investment Company shareholders or
subscribers which is requested by voice over
the telephone.
p. Voice Initiated Redemption means any
redemption of shares issued by an Investment
Company which is requested by voice over the
telephone.
q. Voice Initiated Funds Transfer Instruction
means any Voice Initiated Redemption or
Voice Initiated Election.
For the purposes of these definitions, the
singular includes the plural and the plural
includes the singular, unless otherwise indicated.
--------------------------------------------------------------------------------
General Exclusions - 2. This bond does not directly or indirectly cover:
Applicable to All
Insuring Clauses a. loss not reported to the COMPANY in writing
within sixty (60) days after termination of
this Bond as an entirety;
b. loss due to riot or civil commotion outside
the United States of America and Canada, or
any loss due to military, naval or usurped
power, war or insurrection. This Section
2.b., however, shall not apply to loss which
occurs in transit in the circumstances
recited in INSURING CLAUSE 3., provided that
when such transit was initiated there was no
knowledge on the part of any person acting
for the ASSURED of such riot, civil
commotion, military, naval or usurped power,
war or insurrection;
c. loss resulting from the effects of nuclear
fission or fusion or radioactivity;
d. loss of potential income including, but not
limited to, interest and dividends not
realized by the ASSURED or by any customer
of the ASSURED;
e. damages of any type for which the ASSURED is
legally liable, except compensatory damages,
but not multiples thereof, arising from a
loss covered under this Bond;
f. costs, fees and expenses incurred by the
ASSURED in establishing the existence of or
amount of loss under this Bond, except to
the extent covered under INSURING CLAUSE
11.;
g. loss resulting from indirect or
consequential loss of any nature;
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 11 of 19
--------------------------------------------------------------------------------
Conditions And Limitations
General Exclusions - h. loss resulting from dishonest acts by any
Applicable to All member of the Board of Directors or Board of
Insuring Clauses Trustees of the ASSURED who is not an
(continued) Employee, acting alone or in collusion with
others;
i. loss, or that part of any loss, resulting
solely from any violation by the ASSURED or
by any Employee:
(1) of any law regulating:
a. the issuance, purchase or sale
of securities,
b. securities transactions on
security or commodity exchanges
or the over the counter market,
c. investment companies,
d. investment advisors, or
(2) of any rule or regulation made
pursuant to any such law; or
j. loss of confidential information, material
or data;
k. loss resulting from voice requests or
instructions received over the telephone,
provided however, this Section 2.k. shall
not apply to INSURING CLAUSE 7. or 9.
--------------------------------------------------------------------------------
Specific Exclusions - 3. This Bond does not directly or indirectly cover:
Applicable To All
Insuring Clauses Except a. loss caused by an Employee, provided,
Insuring Clause 1. however, this Section 3.a. shall not apply
to loss covered under INSURING CLAUSE 2. or
3. which results directly from misplacement,
mysterious unexplainable disappearance, or
damage or destruction of Property;
b. loss through the surrender of property away
from premises of the ASSURED as a result of
a threat:
(1) to do bodily harm to any natural
person, except loss of Property in
transit in the custody of any person
acting as messenger of the ASSURED,
provided that when such transit was
initiated there was no knowledge by
the ASSURED of any such threat, and
provided further that this Section
3.b. shall not apply to INSURING
CLAUSE 7., or
(2) to do damage to the premises or
Property of the ASSURED;
c. loss resulting from payments made or
withdrawals from any account involving
erroneous credits to such account;
d. loss involving Items of Deposit which are
not finally paid for any reason provided
however, that this Section 3.d. shall not
apply to INSURING CLAUSE 10.;
e. loss of property while in the mail;
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 12 of 19
Conditions And
Limitations
Specific Exclusions - f. loss resulting from the for any reason of a
Applicable To All Insuring financial or failure depository institution,
Clauses Except Insuring its receiver or other liquidator to pay or
Clause 1. deliver funds or other Property to the
(continued) ASSURED provided further that this Section
3.f. shall not apply to loss of Property
resulting directly from robbery, burglary,
misplacement, mysterious unexplainable
disappearance, damage, destruction removal
from the possession, custody or control of
the ASSURED.
g. loss of Property while in the custody of a
Transportation Company, provided however,
that this Section 3.g. shall not apply to
INSURING CLAUSE 3.;
h. loss resulting from entries or changes made
by a natural person with authorized access
to a Computer System who acts in good faith
on instructions, unless such instructions
are given to that person by a software
contractor or its partner, officer, or
employee authorized by the ASSURED to
design, develop, prepare, supply, service,
write or implement programs for the
ASSURED's Computer System; or
i. loss resulting directly or indirectly from
the input of data into a Computer System
terminal, either on the premises of the
customer of the ASSURED or under the control
of such a customer, by a customer or other
person who had authorized access to the
customer's authentication mechanism.
--------------------------------------------------------------------------------
Specific Exclusions - 4. This bond does not directly or indirectly cover:
Applicable To All
Insuring Clauses Except a. loss resulting from the complete or partial
Insuring Clauses 1., non-payment of or default on any loan
4., And 5. whether such loan was procured in good faith
or through trick, artifice, fraud or false
pretenses; provided, however, this Section
4.a. shall not apply to INSURING CLAUSE 8.;
b. loss resulting from forgery or any
alteration;
c. loss involving a counterfeit provided,
however, this Section 4.c. shall not apply
to INSURING CLAUSE 5. or 6.
--------------------------------------------------------------------------------
Limit Of Liability/ 5. At all times prior to termination of this Bond,
Non-Reduction And this Bond shall continue in force for the limit
Non-Accumulation Of stated in the applicable sections of ITEM 2. of
Liability the DECLARATIONS, notwithstanding any previous
loss for which the COMPANY may have paid or be
liable to pay under this Bond provided, however,
that the liability of the COMPANY under this Bond
with respect to all loss resulting from:
a. any one act of burglary, robbery or hold-up,
or attempt thereat, in which no Employee is
concerned or implicated, or
b. any one unintentional or negligent act on
the part of any one person resulting in
damage to or destruction or misplacement of
Property, or
c. all acts, other than those specified in a.
above, of any one person, or
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 13 of 19
Conditions And Limitations
Limit Of Liability/ d. any one casualty or event other than those
Non-Reduction And specified in a., b., or c. above,
Non-Accumulation Of
Liability shall be deemed to be one loss and shall be
(continued) limited to the applicable LIMIT OF LIABILITY
stated in ITEM 2. of the DECLARATIONS of this Bond
irrespective of the total amount of such loss or
losses and shall not be cumulative in amounts from
year to year or from period to period.
All acts, as specified in c. above, of any one
person which
i. directly or indirectly aid in any way
wrongful acts of any other person or
persons, or
ii. permit the continuation of wrongful acts of
any other person or persons
whether such acts are committed with or without
the knowledge of the wrongful acts of the person
so aided, and whether such acts are committed with
or without the intent to aid such other person,
shall be deemed to be one loss with the wrongful
acts of all persons so aided.
--------------------------------------------------------------------------------
Discovery 6. This Bond applies only to loss first discovered by
an officer of the ASSURED during the BOND PERIOD.
Discovery occurs at the earlier of an officer of
the ASSURED being aware of:
a. facts which may subsequently result in a
loss of a type covered by this Bond, or
b. an actual or potential claim in which it is
alleged that the ASSURED is liable to a
third party,
regardless of when the act or acts causing or
contributing to such loss occurred, even though
the amount of loss does not exceed the applicable
DEDUCTIBLE AMOUNT, or the exact amount or details
of loss may not then be known.
--------------------------------------------------------------------------------
Notice To Company - 7. a. The ASSURED shall give the COMPANY notice
Proof - Legal thereof at the earliest practicable moment,
Proceedings not to exceed sixty (60) days after
Against Company discovery of loss, in an amount that is in
excess of 50% of the applicable DEDUCTIBLE
AMOUNT, as stated in ITEM 2. of the
DECLARATIONS.
b. The ASSURED shall furnish to the COMPANY
proof of loss, duly sworn to, with full
particulars within six (6) months after such
discovery.
c. Securities listed in a proof of loss shall
be identified by certificate or bond
numbers, if issued with them.
d. Legal proceedings for the recovery of any
loss under this Bond shall not be brought
prior to the expiration of sixty (60) days
after the proof of loss is filed with the
COMPANY or after the expiration of
twenty-four (24) months from the discovery
of such loss.
e. This Bond affords coverage only in favor of
the ASSURED. No claim, suit, action or legal
proceedings shall be brought under this Bond
by anyone other than the ASSURED.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 14 of 19
Conditions And
Limitations
Notice To Company - f. Proof of loss involving Voice Initiated
Proof - Legal Funds Transfer Instruction shall include
Proceedings electronic recordings of such instructions.
Against Company
(continued)
--------------------------------------------------------------------------------
Deductible Amount 8. The COMPANY shall not be liable under any INSURING
CLAUSES of this Bond on account of loss unless the
amount of such loss, after deducting the net
amount of all reimbursement and/or recovery
obtained or made by the ASSURED, other than from
any Bond or policy of insurance issued by an
insurance company and covering such loss, or by
the COMPANY on account thereof prior to payment by
the COMPANY of such loss, shall exceed the
DEDUCTIBLE AMOUNT set forth in ITEM 3. of the
DECLARATIONS, and then for such excess only, but
in no event for more than the applicable LIMITS OF
LIABILITY stated in ITEM 2. of the DECLARATIONS.
There shall be no deductible applicable to any
loss under INSURING CLAUSE 1. sustained by any
Investment Company.
--------------------------------------------------------------------------------
Valuation 9. BOOKS OF ACCOUNT OR OTHER RECORDS
The value of any loss of Property consisting of
books of account or other records used by the
ASSURED in the conduct of its business shall be
the amount paid by the ASSURED for blank books,
blank pages, or other materials which replace the
lost books of account or other records, plus the
cost of labor paid by the ASSURED for the actual
transcription or copying of data to reproduce such
books of account or other records.
The value of any loss of Property other than books
of account or other records used by the ASSURED in
the conduct of its business, for which a claim is
made shall be determined by the average market
value of such Property on the business day
immediately preceding discovery of such loss
provided, however, that the value of any Property
replaced by the ASSURED with the consent of the
COMPANY and prior to the settlement of any claim
for such Property shall be the actual market value
at the time of replacement.
In the case of a loss of interim certificates,
warrants, rights or other securities, the
production of which is necessary to the exercise
of subscription, conversion, redemption or deposit
privileges, the value of them shall be the market
value of such privileges immediately preceding
their expiration if said loss is not discovered
until after their expiration. If no market price
is quoted for such Property or for such
privileges, the value shall be fixed by agreement
between the parties.
OTHER PROPERTY
The value of any loss of Property, other than as
stated above, shall be the actual cash value or
the cost of repairing or replacing such Property
with Property of like quality and value, whichever
is less.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 15 of 19
--------------------------------------------------------------------------------
Conditions And
Limitations
(continued)
Securities Settlement 10. In the event of a loss of securities covered under
this Bond, the COMPANY may, at its sole
discretion, purchase replacement securities,
tender the value of the securities in money, or
issue its indemnity to effect replacement
securities.
The indemnity required from the ASSURED under the
terms of this Section against all loss, cost or
expense arising from the replacement of securities
by the COMPANY'S indemnity shall be:
a. for securities having a value less than or
equal to the applicable DEDUCTIBLE AMOUNT -
one hundred (100%) percent;
b. for securities having a value in excess of
the DEDUCTIBLE AMOUNT but within the
applicable LIMIT OF LIABILITY - the
percentage that the DEDUCTIBLE AMOUNT bears
to the value of the securities;
c. for securities having a value greater than
the applicable LIMIT OF LIABILITY - the
percentage that the DEDUCTIBLE AMOUNT and
portion in excess of the applicable LIMIT OF
LIABILITY bears to the value of the
securities.
The value referred to in Section 10.a., b., and c.
is the value in accordance with Section 9,
VALUATION, regardless of the value of such
securities at the time the loss under the
COMPANY'S indemnity is sustained.
The COMPANY is not required to issue its indemnity
for any portion of a loss of securities which is
not covered by this Bond; however, the COMPANY may
do so as a courtesy to the ASSURED and at its sole
discretion.
The ASSURED shall pay the proportion of the
Company's premium charge for the Company's
indemnity as set forth in Section 10.a., b., and
c. No portion of the LIMIT OF LIABILITY shall be
used as payment of premium for any indemnity
purchased by the ASSURED to obtain replacement
securities.
--------------------------------------------------------------------------------
Subrogation - 11. In the event of a payment under this Bond, the
Assignment - COMPANY shall be subrogated to all of the
Recovery ASSURED'S rights of recovery against any person or
entity to the extent of such payment. On request,
the ASSURED shall deliver to the COMPANY an
assignment of the ASSURED'S rights, title and
interest and causes of action against any person
or entity to the extent of such payment.
Recoveries, whether effected by the COMPANY or by
the ASSURED, shall be applied net of the expense
of such recovery in the following order:
a. first, to the satisfaction of the ASSURED'S
loss which would otherwise have been paid
but for the fact that it is in excess of the
applicable LIMIT OF LIABILITY,
b. second, to the COMPANY in satisfaction of
amounts paid in settlement of the ASSURED'S
claim,
c. third, to the ASSURED in satisfaction of the
applicable DEDUCTIBLE AMOUNT, and
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 16 of 19
Conditions And
Limitations
Subrogation - d. fourth, to the ASSURED in satisfaction of
Assignment - any loss suffered by the ASSURED which was
Recovery not covered under this Bond.
(continued)
Recovery from reinsurance or indemnity of the
COMPANY shall not be deemed a recovery under this
section.
--------------------------------------------------------------------------------
Cooperation Of Assured 12. At the COMPANY'S request and at reasonable times
and places designated by the COMPANY, the ASSURED
shall:
a. submit to examination by the COMPANY and
subscribe to the same under oath,
b. produce for the COMPANY'S examination all
pertinent records, and
c. cooperate with the COMPANY in all matters
pertaining to the loss.
The ASSURED shall execute all papers and render
assistance to secure to the COMPANY the rights and
causes of action provided for under this Bond. The
ASSURED shall do nothing after loss to prejudice
such rights or causes of action.
--------------------------------------------------------------------------------
Termination 13. If the Bond is for a sole ASSURED, it shall not be
terminated unless written notice shall have been
given by the acting party to the affected party
and to the Securities and Exchange Commission,
Washington, D.C., not less than sixty (60) days
prior to the effective date of such termination.
If the Bond is for a joint ASSURED, it shall not
be terminated unless written notice shall have
been given by the acting party to the affected
party, and by the COMPANY to all ASSURED
Investment Companies and to the Securities and
Exchange Commission, Washington, D.C., not less
than sixty (60) days prior to the effective date
of such termination.
This Bond will terminate as to any one ASSURED,
other than an Investment Company:
a. immediately on the taking over of such
ASSURED by a receiver or other liquidator or
by State or Federal officials, or
b. immediately on the filing of a petition
under any State or Federal statute relative
to bankruptcy or reorganization of the
ASSURED, or assignment for the benefit of
creditors of the ASSURED, or
c. immediately upon such ASSURED ceasing to
exist, whether through merger into another
entity, disposition of all of its assets or
otherwise.
The COMPANY shall refund the unearned premium
computed at short rates in accordance with the
standard short rate cancellation tables if
terminated by the ASSURED or pro rata if
terminated for any other reason.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 17 of 19
--------------------------------------------------------------------------------
Conditions And
Limitations
Termination If any partner, director, trustee, or officer or
(continued) supervisory employee of an ASSURED not acting in
collusion with an Employee learns of any dishonest
act committed by such Employee at any time,
whether in the employment of the ASSURED or
otherwise, whether or not such act is of the type
covered under this Bond, and whether against the
ASSURED or any other person or entity, the
ASSURED:
a. shall immediately remove such Employee from
a position that would enable such Employee
to cause the ASSURED to suffer a loss
covered by this Bond; and
b. within forty-eight (48) hours of learning
that an Employee has committed any dishonest
act, shall notify the COMPANY, of such
action and provide full particulars of such
dishonest act.
The COMPANY may terminate coverage as respects any
Employee sixty (60) days after written notice is
received by each ASSURED Investment Company and
the Securities and Exchange Commission,
Washington, D.C. of its desire to terminate this
Bond as to such Employee.
--------------------------------------------------------------------------------
Other Insurance 14. Coverage under this Bond shall apply only as
excess over any valid and collectible insurance,
indemnity or suretyship obtained by or on behalf
of:
a. the ASSURED,
b. a Transportation Company, or
c. another entity on whose premises the loss
occurred or which employed the person
causing the loss or engaged the messenger
conveying the Property involved.
--------------------------------------------------------------------------------
Conformity 15. If any limitation within this Bond is prohibited
by any law controlling this Bond's construction,
such limitation shall be deemed to be amended so
as to equal the minimum period of limitation
provided by such law.
--------------------------------------------------------------------------------
Change or Modification 16. This Bond or any instrument amending or affecting
this Bond may not be changed or modified orally.
No change in or modification of this Bond shall be
effective except when made by written endorsement
to this Bond signed by an authorized
representative of the COMPANY.
If this Bond is for a sole ASSURED, no change or
modification which would adversely affect the
rights of the ASSURED shall be effective prior to
sixty (60) days after written notice has been
furnished to the Securities and Exchange
Commission, Washington, D.C., by the acting party.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 18 of 19
Conditions And
Limitations
Change or Modification If this Bond is for a joint ASSURED, no charge or
(continued) modification which would adversely affect the
rights of the ASSURED shall be effective prior to
sixty (60) days after written notice has been
furnished to all insured Investment Companies and
to the Securities and Exchange Commission,
Washington, D.C., by the COMPANY.
--------------------------------------------------------------------------------
ICAP Bond (5-98)
Form 17-02-1421 (Ed. 5-98) Page 19 of 19
VIGILANT INSURANCE COMPANY
Endorsement No: 1
Bond Number: 81458759
NAME OF ASSURED VALUE LINE, INC.
--------------------------------------------------------------------------------
NAME OF ASSURED ENDORSEMENT
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as
follows:
Value Line, Inc.
The Value Line Fund, Inc.
The Value Line Income and Growth Fund, Inc.
The Value Line Premier Growth Fund, Inc.
(formerly known as Value Line Special Situations Fund, Inc.)
Value Line Leveraged Growth Investors, Inc.
The Value Line Cash Fund, Inc.
Value Line U.S. Government Securities Fund, Inc.
Value Line Centurion Fund, Inc.
The Value Line Tax-Exempt Fund, Inc.
Value Line Convertible Fund, Inc.
Value Line Aggressive Income Trust
Value Line New York Tax-Exempt Trust
Value Line Strategic Asset Management Trust
Value Line Emerging Opportunities Fund, Inc.
Value Line Asset Allocation Fund, Inc.
This Endorsement applies to loss discovered after 12:01 a.m. on March 15, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: May 11, 2006 By /s/ Robert Hamburger
-------------------------
Authorized Representative
ICAP Bond
Form 17-02-0949 (Rev. 1-97) Page 1
VIGILANT INSURANCE COMPANY
Endorsement No.: 2
Bond Number: 81458759
NAME OF ASSURED: VALUE LINE, INC.
--------------------------------------------------------------------------------
NEW YORK AMENDATORY ENDORSEMENT
It is agreed that this Bond is amended as follows:
1. By adding to Section 13, Termination, the following:
Bonds In Effect Sixty (60) Days Or Less
If this Bond has been in effect for less than sixty (60) days and if it is
not a renewal Bond, the COMPANY may terminate it for any reason by mailing
or delivering to the ASSURED and to the authorized agent or broker, if
any, written notice of termination at least sixty (60) days before the
effective date of termination.
Bonds In Effect More Than Sixty (60) Days
If this Bond has been in effect for sixty (60) days or more, or if it is a
renewal of a Bond issued by the COMPANY, it may be terminated by the
COMPANY by mailing or delivering to the ASSURED and to the authorized
agent or broker, if any, written notice of termination at least sixty (60)
days before the effective date of termination. Furthermore, when the Bond
is a renewal or has been in effect for sixty (60) days or more, the
COMPANY may terminate only for one or more of the reasons stated in 1-7
below.
1. Nonpayment of premium;
2. Conviction of a crime arising out of acts increasing the hazard
insured against;
3. Discovery of fraud or material misrepresentation in the obtaining of
this Bond or in the presentation of a claim thereunder;
4. Violation of any provision of this Bond that substantially and
materially increases the hazard insured against, and which occurred
subsequent to inception of the current BOND PERIOD;
5. If applicable, material physical change in the property insured,
occurring after issuance or last annual renewal anniversary date of
this Bond, which results in the property becoming uninsurable in
accordance with the COMPANY's objective, uniformly applied
underwriting standards in effect at the time this Bond was issued or
last renewed; or material change in the nature or extent of this
Bond occurring after issuance or last annual renewal anniversary
date of this Bond, which causes the risk of loss to be substantially
and materially increased beyond that contemplated at the time this
Bond was issued or last renewed;
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 1
6. A determination by the Superintendent of Insurance that continuation
of the present premium volume of the COMPANY would jeopardize the
COMPANY's policyholders, creditors or the public, or continuing the
Bond itself would place the COMPANY in violation of any provision of
the New York Insurance Code; or
7. Where the COMPANY has reason to believe, in good faith and with
sufficient cause, that there is a probable risk or danger that the
Property will be destroyed by the ASSURED for the purpose of
collecting the insurance proceeds.
Notice Of Termination
Notice of termination under this SECTION shall be mailed to the ASSURED
and to the authorized agent or broker, if any, at the address shown on the
DECLARATIONS of this Bond. The COMPANY, however, may deliver any notice
instead of mailing it.
Return Premium Calculations
The COMPANY shall refund the unearned premium computed pro rata if this
Bond is terminated by the COMPANY."
2. By adding a new Section reading as follows:
"Section 13. Election To Conditionally Renew / Nonrenew This Bond
Conditional Renewal
If the COMPANY conditionally renews this Bond subject to:
1. Change of limits of liability;
2. Change in type of coverage;
3. Reduction of coverage;
4. Increased deductible;
5. Addition of exclusion; or
6. Increased premiums in excess of 10%, exclusive of any premium
increase due to and commensurate with insured value added; or as a
result of experience rating, retrospective rating or audit; the
COMPANY shall send notice as provided in Notices Of Nonrenewal And
Conditional Renewal immediately below.
Notices Of Nonrenewal And Conditional Renewal
1. If the COMPANY elects not to renew this Bond, or to conditionally
renew this Bond as provided herein, the COMPANY shall mail or
deliver written notice to the ASSURED at least sixty (60) but not
more than one hundred twenty (120) days before:
a. The expiration date; or
b. The anniversary date if this Bond has been written for a term
of more than one year.
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 2
2. Notice shall be mailed or delivered to the ASSURED at the address
shown on the DECLARATIONS of this Bond and the authorized agent or
broker, if any. If notice is mailed, proof of mailing shall be
sufficient proof of notice.
3. Paragraphs 1. and 2. immediately above shall not apply when the
ASSURED, authorized agent or broker, or another insurer has mailed
or delivered written notice to the COMPANY that the Bond has been
replaced or is no longer desired.
3. By adding to General Agreement B., Representations Made By Assured, the
following:
No misrepresentation shall be deemed material unless knowledge by the
COMPANY would have lead to the COMPANY'S refusal to write this Bond.
This Endorsement applies to loss discovered after 12:01 a.m. on March 15, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: May 11, 2006 By /s/ Robert Hamburger
--------------------------
Authorized Representative
ICAP Bond - New York
Form 17-02-2863 (Rev. 7-03) Page 3
VIGILANT INSURANCE COMPANY
Endorsement No.: 3
Bond Number: 81458759
NAME OF ASSURED: VALUE LINE, INC.
--------------------------------------------------------------------------------
DELETING VALUATION-OTHER PROPERTY ENDORSEMENT
It is agreed that this Bond is amended by deleting in its entirety the paragraph
titled Other Property in Section 9., Valuation.
This Endorsement applies to loss discovered after 12:01 a.m. on March 15, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: May 11, 2006 By /s/ Robert Hamburger
--------------------------
Authorized Representative
ICAP Bond
Form 17-02-2437 (Ed. 1-01)
Effective date of
this endorsement: March 15, 2006 VIGILANT INSURANCE COMPANY
Endorsement No.: 4
To be attached to and form a part of Bond
Number: 81458759
Issued to: VALUE LINE, INC.
--------------------------------------------------------------------------------
COMPLIANCE WITH APPLICABLE TRADE SANCTION LAWS RIDER
It is agreed that this insurance does not apply to the extent that trade or
economic sanctions or other laws or regulations prohibit the coverage provided
by this insurance.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: May 11, 2006 By /s/ Robert Hamburger
--------------------------
Authorized Representative
Form 14-02-9228 (Ed. 4/2004)
ENDORSEMENT/RIDER
Effective date of
this endorsement/rider: March 15, 2006 VIGILANT INSURANCE COMPANY
Endorsement/Rider No. 5
To be attached to and
form a part of Bond No. 81458759
Issued to: VALUE LINE, INC.
--------------------------------------------------------------------------------
SUBSIDIARY EXCLUSION RIDER
In consideration of the premium charged, it is agreed that the definition of
Subsidiary and any reference to Subsidiary is deleted in its entirety from the
Bond and Declarations.
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.
/s/ Robert Hamburger
--------------------------
Authorized Representative
Q06-855 (05/2006) Page 1
VIGILANT INSURANCE COMPANY
Endorsement No.: 6
Bond Number: 81458759
NAME OF ASSURED: VALUE LINE, INC.
--------------------------------------------------------------------------------
DELETE AN ENDORSEMENT
It is agreed that this Bond is amended by deleting Endorsement Number(s) 1 in
its entirety.
This Endorsement applies to loss discovered after 12:01 a.m. on March 15, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: June 7, 2006 By /s/ Robert Hamburger
--------------------------
Authorized Representative
ICAP Bond
Form 17-02-5647 (Ed. 11-03)
VIGILANT INSURANCE COMPANY
Endorsement No: 7
Bond Number: 81458759
NAME OF ASSURED VALUE LINE, INC.
--------------------------------------------------------------------------------
NAME OF ASSURED ENDORSEMENT
It is agreed that the NAME OF ASSURED in the DECLARATIONS is amended to read as
follows:
Value Line, Inc.
The Value Line Fund, Inc.
The Value Line Income and Growth Fund, Inc.
The Value Line Premier Growth Fund, Inc. (formerly known as Value Line Special
Situations Fund, Inc.)
Value Line Leveraged Growth Investors, Inc.
The Value Line Cash Fund, Inc.
Value Line U.S. Government Securities Fund, Inc.
Value Line Centurion Fund, Inc.
The Value Line Tax-Exempt Fund, Inc.
Value Line Convertible Fund, Inc.
Value Line Aggressive Income
Trust Value Line New York Tax-Exempt Trust
Value Line Strategic Asset Management Trust
Value Line Emerging Opportunities Fund, Inc.
Value Line Asset Allocation Fund, Inc.
Value Line Tax Exempt Fund, Inc. (National Bond)
This Endorsement applies to loss discovered after 12:01 a.m. on March 15, 2006.
ALL OTHER TERMS AND CONDITIONS OF THIS BOND REMAIN UNCHANGED.
Date: June 7, 2006 By /s/ Robert Hamburger
--------------------------
Authorized Representative
ICAP Bond
Form 17-02-0949 (Rev. 1-97) Page 1
Chubb & Son, div. of Federal Insurance Company
as manager of the member insurers of the
Chubb Group of Insurance Companies
POLICYHOLDER
DISCLOSURE NOTICE OF
TERRORISM INSURANCE COVERAGE
(for policies with no terrorism exclusion or sublimit)
You are hereby notified that, under the Terrorism Risk Insurance Act of 2002
(the "Act") effective November 26, 2002, this policy makes available to you
insurance for losses arising out of certain acts of international terrorism.
Terrorism is defined as any act certified by the Secretary of the Treasury, in
concurrence with the Secretary of State and the Attorney General of the United
States, to be an act of terrorism; to be a violent act or an act that is
dangerous to human life, property or infrastructure; to have resulted in damage
within the United States, or outside the United States in the case of an air
carrier or vessel or the premises of a United States Mission; and to have been
committed by an individual or individuals acting on behalf of any foreign person
or foreign interest, as part of an effort to coerce the civilian population of
the United States or to influence the policy or affect the conduct of the United
States Government by coercion.
You should know that the insurance provided by your policy for losses caused by
acts of terrorism is partially reimbursed by the United States under the formula
set forth in the Act. Under this formula, the United States pays 90% of covered
terrorism losses that exceed the statutorily established deductible to be paid
by the insurance company providing the coverage. The portion of your policy's
annual premium that is attributable to insurance for such acts of terrorism is:
$ -0-.
If you have any questions about this notice, please contact your agent or
broker.
Form 10-02-1281 (Ed. 1/2003)
FIDELITY BOND AGREEMENT AMONG INSURED
PURSUANT TO
Rule 17g-1 Under the Investment Company Act of 1940
March 16, 2006
WHEREAS, Rule 17g-1 under the Investment company Act of 1940 (the "Rule")
requires that each registered management investment company named as an insured
in a joint insured bond shall enter into an agreement with all of the other
named insureds, and
WHEREAS, The Value Line Fund, Inc., Value Line Income and Growth Fund, Inc.,
Value Line Premier Growth Fund, Inc., Value Line Leveraged Growth Investors,
Inc., The Value Line Cash Fund, Inc., Value Line U.S. Government Securities
Fund, Inc., Value Line Centurion Fund, Inc., The Value Line Tax Exempt Fund,
Inc., Value Line Convertible Fund, Inc., Value Line Aggressive Income Trust,
Value Line New York Tax Exempt Trust, Value Line Strategic Asset Management
Trust, Value Line Emerging Opportunities Fund, Inc. and Value Line Asset
Allocation Fund, Inc. (the "Funds"), management investment companies registered
under the Investment Company Act of 1940, are joint insureds under a joint
insured bond issued by Vigilant Insurance Company covering all parties to this
agreement.
NOW, THEREFORE, be it hereby agreed that in the event recovery is received under
the bond as a result of a loss sustained by one or more of the Funds and one or
more other named insured, the Fund or Funds shall receive an equitable and
proportionate share of the recovery, but at least equal to the amount which it
would have received had the Fund or Funds provided and maintained a single
insured bond with the minimum coverage required by the Rule.
Value Line, Inc.
By:/s/ David T. Henigson
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The Value Line Fund, Inc.
By:/s/ David T. Henigson
------------------------------------------------
The Value Line Income and Growth Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Premier Growth Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Leveraged Growth Investors, Inc.
By: /s/ David T. Henigson
------------------------------------------------
The Value Line Cash Fund, Inc.
By:/s/ David T. Henigson
------------------------------------------------
Value Line U.S. Government Securities Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Centurion Fund, Inc.
By:/s/ David T. Henigson
------------------------------------------------
The Value Line Tax Exempt Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Convertible Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Aggressive Income Trust
By: /s/ David T. Henigson
------------------------------------------------
Value Line New York Tax Exempt Trust
By: /s/ David T. Henigson
------------------------------------------------
Value Line Strategic Asset Management Trust
By: /s/ David T. Henigson
------------------------------------------------
Value Line Emerging Opportunities Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------
Value Line Asset Allocation Fund, Inc.
By: /s/ David T. Henigson
------------------------------------------------