JOINT INSURED BOND AGREEMENT
ELFUN FUNDS
GE S&S FUNDS
GE FUNDS
GE LIFESTYLE FUNDS
GE INSTITUTIONAL FUNDS
GE INVESTMENTS FUNDS, INC.
VARIABLE INVESTMENT TRUST
JOINT INSURED BOND AGREEMENT (the "Agreement"), dated as of December 12,
2002, by and among Elfun Trusts, Elfun International Equity Fund, Elfun
Diversified Fund, Elfun Tax-Exempt Income Fund, Elfun Income Fund, Elfun Money
Market Fund General Electric S&S Program Mutual Fund, General Electric S&S
Income Fund. GE Funds, on behalf of all of its series portfolios, GE LifeStyle
Funds, on behalf of all of its series portfolios, GE Institutional Funds, on
behalf of all of its series portfolios, GE Investments Funds, Inc., on behalf
of all of its series portfolios, and Variable Investment Trust, on behalf of
all of its series portfolios (each individually, a "Party" and collectively,
the "Panics").
Each Party is a managed investment company or series portfolio thereof
registered under the Investment Company Act of 1940, as amended (the "Act"). By
terms of Rule 17g-l promulgated by the Securities and Exchange Commission (the
"Commission") under the Act, the Parties are required to provide and to
maintain in effect a bond against larceny and embezzlement by their officers
and employees. By the terms of such rules, the Parties are authorized to secure
a joint insured bond, which names all of the Parties as insureds.
A majority of the members of the Board of each of the Parties have given due
consideration to the value of the aggregate assets of each Party, the type and
terms of the arrangements made for the safekeeping of such assets, and the
nature of the securities in each Party's portfolio, and have approved the form
and amount of the bond.
In addition, a majority of the members of the Board of each of the Parties
have given due consideration to the number of Parties named as insureds, the
nature of the business activities of the Panics, the amount of the joint
insured bond, the amount of the premium for such bond, the ratable allocation
of the premium allocated to each Party and (he extent to which the share of the
premium allocated to each Party is less than the premium each Party would have
to pay if it had provided and maintained a single insured bond and have
approved the portion of the premium to be paid by each Party.
The Parties have determined that the allocation of the proceeds payable
under the joint insured bond as set forth herein (which takes into account the
minimum amount of bond required for each party by Rule 17g- 1 and by federal
statutes or regulations if it maintained a single insured bond) is equitable.
Accordingly, the Parties, in consideration of the mutual covenants and
promises contained herein, agree as follows:
1. Intention to Procure Bond. The Parties will continue to procure from a
reputable fidelity insurance company a joint insured bond insuring each against
larceny and embezzlement of its securities and funds by such of its officers
and employees who may, singly or jointly with others, have access, directly or
indirectly, to such securities or funds.
The bond shall name each of the Parties as an insured, and shall comply with
the requirements for such bonds established by Rule I 7g- 1.
2. Amount. The bond shall be in the amount based upon the total assets of
each Party, which are equal to or in excess of the minimum coverage required
for each of the Parties under Rule I 7g-l and federal statutes and regulations.
3. Ratable Allocation of Premium. Each Party will pay the percentage of the
premium due under the bond which is proportionate to the coverage as described
in Paragraph 2.
4. Ratable Allocation of Proceeds.
(a) If more than one of the Parties is damaged in a single loss for
which recovery is received under the joint insured bond, each such Party shall
receive that portion of the recovery which represents the loss sustained by the
Party, but at least equal to the amount which it would have received had it
provided and maintained a single insured bond with the minimum coverage
required by Rule l7g-l. unless the recovery is inadequate fully to indemnify
each such Party sustaining a loss.
(b) If the recovery is inadequate fully to indemnify each such Party
sustaining a loss, the recovery shall be allocated among such Parties as
follows:
(i) Each Party sustaining a loss shall be allocated an amount equal
to the lesser of its actual loss or the amount of coverage maintained by
such Party as set forth under Paragraph 2.
(ii) The remaining portion of the proceeds shall be allocated to each
Party sustaining a loss not fully covered by the allocation under
subparagraph (i) in the proportion that each such Party's gross assets
as of the end of its fiscal quarter preceding the loss bears to the sum
of the gross assets of all such Parties. If such allocation would result
in any Party sustaining a loss receiving a portion of the recovery in
excess of the loss actually sustained by such Party, the aggregate of
such excess portions shall be allocated among the other parties whose
losses would not be fully indemnified in the same proportion as each
such Party's gross assets bear to the sum of the gross assets of all
Parties entitled to receive a share of the excess (both determined as of
the end of the fiscal quarter of each party preceding the loss). Any
allocation in excess of a loss actually sustained by any such Party
shall be reallocated in the same manner. It is the intent of this
paragraph 4 that none of the Parties hereto shall effectively receive
diminished insurance coverage by virtue of its purchase of joint, as
opposed to separate, insurance.
5. Claims and Settlements. Each Party shall, within five days after making
any claim under the bond, provide every other Party and the Commission with
written notice of the amount
and nature of such claims. Each Party effecting a settlement of any claim
shall, within five days after the settlement, provide the other parties and the
Commission with written notice of the terms of settlement of any claims by such
Party made under the bond. In the event that two or more Parties shall agree to
a settlement of a claim made under the bond with respect to a single loss,
notice of the settlement shall also include a calculation of the amounts to be
received under Paragraph 4 hereof. The officer to each Party designated as
responsible for filing notice required by paragraph (c) of Rule l7g-l under the
Act shall give and receive notice required hereby.
6. Modifications and Amendments. If a Party shall determine that the
coverage required by Rule I 7g- I for such Party has changed, or that the
amount of the total coverage allocated to such Party should otherwise be
modified, it shall so notify the other Parties setting forth the modification
which it believes to be appropriate, and the proposed treatment of any
increased or return premium. Within 60 days after such notice, the Parties
shall seek the approval required by Rule l7g-l, and if approvals are obtained,
shall effect an amendment to this Agreement and the bonds. Any party may
terminate this Agreement (except with respect to losses occurring prior to such
withdrawal) by giving at least 60 days' written notice to the other Parties.
Any Party terminating the Agreement shall thereafter be removed as named
insured in accordance with Rule l7g-l and shall be entitled to receive a pro
rata portion of any return of premium paid to the insurance company.
7. No Assignment. This agreement is not assignable.
8. Counterparts. This Agreement may be executed in any number of
counterparts which together shall constitute a single instrument.
IN WITNESS WHEREOF, each of the Panics hereto has caused this instrument to
be executed in its name and on its behalf by its duly authorized representative
as of the date first above written.
ELFUN TRUSTS
ELFUN INTERNATIONAL EQUITY FUND
ELFUN DIVERSIFIED FUND
ELFUN TAX-EXEMPI- INCOME FUND
ELFUN INCOME FUND
ELFUN MONEY MARKET FUND
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GENERAL ELECTRIC S&S PROGRAM MUTUALFUND
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GENERAL ELECTRIC S&S INCOME FUND
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GE FUNDS
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GE LIFESTYLE FUNDS
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GE INSTITUTIONAL FUNDS
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
GE INVESTMENTS FUNDS, INC.
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
VARIABLE INVESTMENT TRUST
BY: /S/ Xxxxxxx X. Xxxxxxxx
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Xxxxxxx X. Xxxxxxxx
