<PAGE>
ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND, INC.
We, the undersigned incorporators, hereby associate ourselves together
to form and establish a corporation for profit under the laws of the State of
Kansas.
FIRST: The name of the corporation is:
SECURITY BOND FUND, INC.
SECOND: The location of its registered office in Kansas is Security
Benefit Life Building, 700 Harrison Street, Topeka, Kansas 66603.
THIRD: The name and address of its registered agent in Kansas is Will
J. Miller, Jr., Security Benefit Life Building, 700 Harrison Street, Topeka,
Kansas 66603.
FOURTH: This corporation is organized for profit and the nature of its
business, objects and purposes to be transacted, promoted and carried on, is:
(1) To engage in the business of an investment company and mutual fund
and to hold, invest and reinvest its funds, and in connection therewith to
hold part or all of its funds in cash, and to purchase or otherwise
acquire, hold for investment or otherwise, trade, purchase on margin, sell,
sell short, assign, pledge, hypothecate, negotiate, transfer, exchange or
otherwise dispose of or turn to account or realize upon, securities (which
term "securities" shall for the purposes of this Article, without
limitation of the generality thereof, be deemed to include any stocks,
bonds, shares, debentures, notes, mortgages or other obligations, and any
certificates, receipts, warrants or other instruments representing rights
to receive, purchase or subscribe for the same, or evidencing or
representing any other rights or interests therein, or in any property or
assets) created or issued by any persons, firms, associations,
corporations, syndicates, combinations, organizations, governments or
subdivisions thereof; and to exercise, as owner or holder of any
securities, all rights, powers and privileges in respect thereof; and to do
any and all acts and things for the preservation, protection, improvement
and enhancement in value of any and all such securities.
(2) To issue and sell shares of its own capital stock in such amounts
and on such terms and conditions, for such purposes and for such amount or
kind of consideration (including, without limitation thereof, securities)
now or hereafter permitted by the laws of Kansas, by these Articles of
Incorporation and the Bylaws of the corporation, as its Board of Directors
may determine.
(3) To purchase or otherwise acquire, redeem, hold, dispose of,
resell, transfer, or reissue (all without any vote or consent of
stockholders of the corporation) shares of its capital stock, in any manner
and to the extent now or hereafter permitted by the laws of the State of
Kansas, by these Articles of Incorporation and by the Bylaws of the
corporation, provided that shares of its own capital stock belonging to it
shall not be voted directly or indirectly.
(4) To conduct its business in all its branches at one or more offices
in Kansas and elsewhere in any part of the world, without restriction or
limit as to extent.
(5) To carry out all or any of the foregoing purposes as principal or
agent, and alone or with associates or, to the extent now or hereafter
permitted by the laws of Kansas, as a member of, or as the owner or holder
of any stock of, or shares of interest in, any firm, association,
corporation, trust or syndicate; and in connection therewith to make or
enter into such deeds or contracts with any persons, firms, associations,
corporations, syndicates, governments or sub-divisions thereof, and to do
such acts and things and to exercise such powers as a natural person could
lawfully make, enter into, do or exercise.
(6) To do any and all such further acts and things and to exercise any
and all such further powers as may be necessary, incidental, relative,
conducive, appropriate or desirable for the accomplishment, carrying out or
attainment of all or any of the foregoing purposes.
It is the intention that each of the purposes, specified in each of
the paragraphs of this Article FOURTH, shall be in no wise limited or restricted
by reference to or inference from the terms of any other paragraph, but that the
purposes specified in each of the paragraphs of this Article FOURTH shall be
regarded as independent objects, purposes and powers. The enumeration of the
specific purposes of this Article FOURTH shall not be construed to restrict in
any manner the general objects, purposes and powers of this corporation, nor
shall the expression of one thing be deemed to exclude another, although it be
of like nature. The enumeration of purposes herein shall not be deemed to
exclude or in any way limit by inference any objects, purposes or powers which
this corporation has power to exercise, whether expressly or by force of the
laws of the State of Kansas, now or hereafter in effect, or impliedly by any
reasonable construction of such laws.
FIFTH: The total number of shares which the corporation shall have
authority to issue shall be 3,000,000 shares of capital stock, each of the par
value of $1.00. The Board of Directors shall have the power to fix the
consideration to be received by the corporation for any and all shares of stock
issued by the corporation, but at not less than the par value thereof.
The following provisions are hereby adopted for the purpose of setting
forth the powers, rights, qualifications, limitations or restrictions of the
capital stock of the corporation:
(1) At all meetings of stockholders each stockholder of the
corporation shall be entitled to one vote in person or by proxy on each
matter submitted to a vote at such meeting for each share of capital stock
standing in this name on the books of the corporation on the date, fixed in
accordance with the Bylaws, for determination of stockholders entitled to
vote at such meeting. At all elections of directors each stockholder shall
be entitled to as many votes as shall equal the number of shares of stock
multiplied by the number of directors to be elected, and he may cast all of
such votes for a single director or may distribute them among the number to
be voted for, on any two or more of them as he may see fit.
(2) No holder of any shares of stock of the corporation shall be
entitled as such, as a matter of right, to purchase or subscribe for any
shares of stock of the corporation of any class, whether now or hereafter
authorized or whether issued for cash, property or services or as a
dividend or otherwise, or to purchase or subscribe for any obligations,
bonds, notes, debentures, other securities or stock convertible into shares
of stock of the corporation or carrying or evidencing any right to purchase
shares of stock of any class.
(3) All persons who shall acquire stock in the corporation shall
acquire the same subject to the provisions of these Articles of
Incorporation.
SIXTH: The minimum amount of capital with which the corporation will
commence business is One Thousand Dollars.
SEVENTH: The name and places of residence for each of the
incorporators are as follows:
NAMES PLACES OF RESIDENCE
Dean L. Smith 1800 W. 26th
Topeka, Kansas 66611
Will J. Miller, Jr. 2824 Plass Street
Topeka, Kansas 66611
Everett S. Gille 2832 Plass Street
Topeka, Kansas 66611
EIGHTH: The duration of the corporate existence of the corporation is
one hundred years.
NINTH: The number of directors to constitute the Board of Directors of
the corporation, which shall be a minimum of three and a maximum of nine, may be
varied from time to time by the Board of Directors or stockholders of the
corporation between said minimum and maximum. Unless otherwise provided by the
Bylaws of the corporation, the directors of the corporation need not be
stockholders therein.
TENTH:
(1) Except as may be otherwise specifically provided by (i) statute,
(ii) the Articles of Incorporation of the corporation as from time to time
amended or (iii) bylaw provisions adopted from time to time by the
stockholders or directors of the corporation, all powers of management,
direction and control of the corporation shall be, and hereby are, vested
in the Board of Directors.
(2) If the Bylaws so provide, the Board of Directors, by resolution
adopted by a majority of the whole board, may designate two or more
directors to constitute an executive committee, which committee, to the
extent provided in said resolution or in the Bylaws of the corporation,
shall have and exercise all of the authority of the Board of Directors in
the management of the corporation.
(3) Shares of stock in other corporations shall be voted by the
President or a Vice President, or such officer or officers of the
corporation as the Board of Directors shall from time to time designate for
the purpose, or by a proxy or proxies thereunto duly authorized by the
Board of Directors, except as otherwise ordered by vote of the holders of a
majority of the shares of the capital stock of the corporation outstanding
and entitled to vote in respect thereto.
(4) Subject only to the provisions of the federal Investment Company
Act of 1940 and the rules and regulations promulgated thereunder, any
director, officer or employee individually, or any partnership of which any
director, officer or employee may be a member, or any corporation or
association of which any director, officer or employee may be an officer,
director, trustee, employee or stockholder, may be a party to, or may be
pecuniarily or otherwise interested in, any contract or transaction of the
corporation, and in the absence of fraud no contract or other transaction
shall be thereby affected or invalidated; provided that in case a director,
or a partnership, corporation or association of which a director is a
member, officer, director, trustee, employee or stockholder is so
interested, such fact shall be disclosed or shall have been known to the
Board of Directors or a majority thereof; and any director of the
corporation who is so interested, or who is also a director, officer,
trustee, employee or stockholder of such other corporation or association
or a member of such partnership which is so interested, may be counted in
determining the existence of a quorum at any meeting of the Board of
Directors of the corporation which shall authorize any such contract or
transaction, and may vote thereat to authorize any such contract or
transaction, with like force and effect as if he were not such director,
officer, trustee, employee or stockholder of such other corporation or
association or not so interested or a member of a partnership so
interested.
(5) The Board of Directors is hereby empowered to authorize the
issuance and sale, from time to time, of shares of the capital stock of the
corporation, whether for cash at not less than the par value thereof or for
such other consideration including securities as the Board of Directors may
deem advisable in the manner and to the extent now or hereafter permitted
by the Bylaws of the corporation and by the laws of Kansas.
ELEVENTH: The private property of the stockholders shall not be a
subject to the payment of the debts of the corporation.
TWELFTH: Insofar as permitted under the laws of Kansas, the
stockholders and directors shall have power to hold their meetings, if the
Bylaws so provide, and to keep the books and records of the corporation outside
of the State of Kansas, and to have one or more offices, within or without the
State of Kansas, at such places as may be from time to time designated in the
Bylaws or by resolution of the stockholders or directors.
THIRTEENTH: Whenever a compromise or arrangement is proposed between
this corporation and its creditors or any class of them, secured or unsecured,
or between this corporation and its stockholders, or any class of them, any
court, state or federal, of competent jurisdiction within the State of Kansas
may on the application in a summary way of this corporation, or of any creditor,
secured or unsecured, or stockholders thereof, or on the application of trustees
in dissolution, or on the application of any receiver or receivers appointed for
this corporation by any court, state or federal, of competent jurisdiction,
order a meeting of the creditors of class of creditors secured or unsecured or
of the stockholders or class of stockholders of the corporation, as the case may
be, to be summoned in such manner as said court directs. If a majority in number
representing three-fourths in value of the creditors or class of creditors, or
of the stockholders, or class of stockholders of this corporation, as the case
may be, agree to any compromise or arrangement and to any reorganization of this
corporation as a consequence of such compromise or arrangement, the said
compromise or arrangement and the said reorganization shall, if sanctioned by
the court to which the said application has been made, be binding on all the
creditors or class of creditors, or on all the stockholders or class of
stockholders, of this corporation, as the case may be, and also on this
corporation.
FOURTEENTH: The corporation reserves the right to alter, amend or
repeal any provision contained in its Articles of Incorporation in the manner
now or hereafter prescribed by the statutes of Kansas, and all rights and powers
conferred herein are granted subject to this reservation; and, in particular,
the corporation reserves the right and privilege to amend its Articles of
Incorporation from time to time so as to authorize other or additional classes
of shares (including preferential shares), to increase or decrease the number of
shares of any class now or hereafter authorized, to establish, limit or deny to
stockholders of any class the right to purchase or subscribe for any shares of
stock of the corporation of any class, whether now or hereafter authorized or
whether issued for cash, property or services or as a dividend or otherwise, or
to purchase or subscribe for any obligations, bonds, notes, debentures, or
securities or stock convertible into shares of stock of the corporation or
carrying or evidencing any right to purchase shares of stock of any class, and
to vary the preferences, designations, priorities, special powers,
qualifications, limitations, restrictions and the special, participating,
optional or relative rights or other characteristics in respect of the shares of
each class, and to accept and avail itself of, or subject itself to, the
provisions of any statutes of Kansas hereafter enacted pertaining to private
corporations, to exercise all the rights, powers and privileges conferred upon
corporations organized thereunder or accepting the provisions thereof and to
assume the obligations and duties imposed therein, upon the affirmative vote of
the holders of a majority of the shares of stock entitled to vote thereon, or,
in the event the statutes of Kansas then in effect require a separate vote by
classes of shares, upon the affirmative vote of the holders of a majority of the
shares of each class whose separate vote is required thereon, or, in the event
the statutes of Kansas then in effect require a larger vote, upon such larger
vote of the stockholders entitled to vote thereon as may then be required by
such statutes.
IN WITNESS WHEREOF, we have hereunto subscribed our names this 9th day
of September, 1970.
DEAN L. SMITH
-----------------------------------
Dean L. Smith
WILL J. MILLER
-----------------------------------
Will J. Miller, Jr.
EVERETT S. GILLE
-----------------------------------
Everett S. Gille
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Personally appeared before me, a notary public in and for Shawnee County,
Kansas, the above named DEAN L. SMITH, WILL J. MILLER and EVERETT S. GILLE, who
are personally known to me to be the same persons who executed the foregoing
instrument of writing, and such persons duly acknowledged the execution of the
same.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name and affixed my official
seal this 9th day of September, 1970.
LOIS J. HEDRICK
-----------------------------------
Notary Public
My commission expires January 8, 1972
<PAGE>
Topeka, Kansas September 9, 1970
-----------------
Date
OFFICE OF SECRETARY OF STATE
RECEIVED OF SECURITY BOND FUND, INC.
and deposited in the State Treasury, fees on these Articles of Incorporation as
follows:
Application Fee $25.00
Filing and Recording Fee $2.50
Capitalization Fee $1,550.00
ELWILL M. SHANAHAN
-----------------------------------
Secretary of State
<PAGE>
CHANGE OF LOCATION OF REGISTERED OFFICE
AND/OR
CHANGE OF RESIDENT AGENT
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, Everett S. Gille, Vice President and Larry D. Armel, Secretary of
Security Bond Fund, Inc. a corporation organized and existing under and by
virtue of the laws of the State of Kansas, do hereby certify that a regular
meeting of the Board of Directors of said corporation held on the 11th day of
July, 1975, the following resolution was duly adopted.
Be it further resolved that the RESIDENT AGENT of said corporation in
the State of Kansas be changed from Will J. Miller, Jr., 700 Harrison Street,
Topeka, Shawnee, Kansas the same being of record in the office of Secretary of
State of Kansas to Security Management Company, Inc. 700 Harrison Street,
Topeka, Shawnee, Kansas 66636.
The President and Secretary are hereby authorized to file and record
the same in the manner as required by law:
EVERETT S. GILLE
-----------------------------------
Everett S. Gille, Vice-President
LARRY D. ARMEL
-----------------------------------
Larry D. Armel, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered that before me Lois J. Hedrick a Notary Public in and for the
County and State aforesaid, came Everett S. Gille, Vice-President and Larry D.
Armel, Secretary, of Security Bond Fund, Inc. a corporation personally known to
me to be the persons who executed the foregoing instrument of writing as vice
president and secretary respectively, and duly acknowledged the execution of the
same this 11th day of July, 1975.
LOIS J. HEDRICK
-----------------------------------
Notary Public
My commission expires January 8, 1976
NOTE: This form must be filed in duplicate.
Address of Resident Agent and Registered Office, as set forth above,
must be the same.
The statutory fee for filing is $20.00 and must accompany this form.
<PAGE>
CERTIFICATE OF AMENDMENT TO ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND, INC.
--------------------------------------------------------------------------------
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Lois J. Hedrick, Assistant Secretary
of Security Bond Fund, Inc., a corporation organized and existing under the laws
of the State of Kansas, and whose registered office is Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee, Kansas, do hereby certify that
at the regular meeting of the Board of Directors of said corporation held on the
7th day of January, 1977 said board adopted a resolution setting forth the
following amendment to the Articles of Incorporation and declared its
advisability, to wit:
RESOLVED, that whereas the board of directors deems it advisable and
in the best interests of the corporation to increase the authorized
capitalization of the corporation, that the articles of incorporation
of the Fund be amended by deleting the first paragraph of Article
FIFTH in its entirety, and by inserting, in lieu thereof, the
following new first paragraph of Article FIFTH:
FIFTH: The total number of shares which the corporation
shall have authority to issue shall be 6,000,000 shares of
capital stock, each of the par valueof $1.00. The board of
directors shall have the power to fix the consideration to be
received by the corporation for any and all shares of stock
issued by the corporation, but at not less than the par value
thereof.
FURTHER RESOLVED, that the foregoing proposed amendment to the
Articles of Incorporation of the Fund be presented to the stockholders
of the Fund for consideration at the annual meeting of stockholders to
be held on March 25, 1977.
That thereafter, pursuant to said resolution and in accordance with the
by-laws and the laws of the State of Kansas, said directors called a
meeting of stockholders for the consideration of said amendment, and
thereafter, pursuant to said notice and in accordance with the statutes of
the State of Kansas, on the 25th day of March, 1977, said stockholders met
and convened and considered said proposed amendment.
That at said meeting the stockholders entitled to vote did vote upon said
amendment, and the majority of voting stockholders of the corporation had
voted for the proposed amendment certifying that the votes were 534,468
(common) shares in favor of the proposed amendment and 9,925 (common)
against the amendment.
That said amendment was duly adopted in accordance with the provisions of
K.S.A. 17-6602.
That the capital of said corporation will not be reduced under or by reason
of said amendment.
IN WITNESS WHEREOF we have hereunto set out hands and affixed the seal of
said corporation this 30th day of March, 1977.
EVERETT S. GILLE
------------------------------------
Everett S. Gille, Vice-President
LOIS J. HEDRICK
------------------------------------
Lois J. Hedrick, Assistant Secretary
STATE OF KANSAS )
) ss
COUNTY OF SHAWNEE)
Be it remembered, that before me, Janet M. Ladd a Notary Public in and for
the County and State aforesaid, came Everett S. Gille, President and Lois J.
Hedrick, Assistant Secretary of Security Bond Fund, Inc. a corporation,
personally known to me to be the persons who executed the foregoing instrument
of writing as president and assistant secretary respectively, and duly
acknowledged the execution of the same this 30th day of March, 1977.
JANET M. LADD
------------------------------------
Notary Public
My commission expires September 3, 1980.
<PAGE>
CERTIFICATE OF AMENDMENT TO ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND, INC.
--------------------------------------------------------------------------------
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Larry D. Armel, Secretary of Security
Bond Fund, Inc. a corporation organized and existing under the laws of the State
of Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee, Kansas, do hereby certify that at the regular
meeting of the Board of Directors of said corporation held on the 5th day of
January, 1979, said board adopted a resolution setting forth the following
amendment to the Articles of Incorporation and declared its advisability, to
wit:
RESOLVED, that whereas the board of directors deems it advisable and
in the best interests of the corporation to increase the authorized
capitalization of the corporation, that the articles of incorporation
of the Fund be amended by deleting the first paragraph of Article
FIFTH in its entirety, and by inserting, in lieu thereof, the
following new first paragraph of Article FIFTH:
FIFTH: The total number of shares which the corporation shall
have authority to issue shall be 10,000,000 shares of capital stock,
each of the par value of $1.00. The board of directors shall have the
power to fix the consideration to be received by the corporation for
any and all shares of stock issued by the corporation, but at not less
than the par value thereof.
FURTHER RESOLVED, that the foregoing proposed amendment to the
Articles of Incorporation of the Fund be presented to the stockholders
of the Fund for consideration at the annual meeting of stockholders to
be held on March 23, 1979.
That thereafter, pursuant to said resolution and in accordance with the
by-laws and the laws of the State of Kansas, said directors called a meeting of
stockholders for the consideration of said amendment, and thereafter, pursuant
to said notice and in accordance with the statutes of the State of Kansas, on
the 23rd day of March, 1979, said stockholders met and convened and considered
said proposed amendment.
That at said meeting the stockholders entitled to vote did vote upon said
amendment, and the majority of voting stockholders of the corporation had voted
for the proposed amendment certifying that the votes were 1,987,933 (common)
shares in favor of the proposed amendment and 95,636 (common) shares against the
amendment.
That said amendment was duly adopted in accordance with the provisions of
K.S.A. 17-6602.
That the capital of said corporation will not be reduced under or by reason
of said amendment.
IN WITNESS WHEREOF we have hereunto set out hands and affixed the seal of
said corporation this 23rd day of March, 1979.
EVERETT S. GILLE
-----------------------------------
Everett S. Gille, President
LARRY D. ARMEL
-----------------------------------
Larry D. Armel, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Lois J. Hedrick a Notary Public in
and for the County and State aforesaid, came Everett S. Gille, President and
Larry D. Armel, Secretary of Security Bond Fund, Inc. a corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as president and assistant secretary respectively, and duly acknowledged the
execution of the same this 23rd day of March, 1979.
LOIS J. HEDRICK
-----------------------------------
Notary Public
My commission expires January 8, 1980.
<PAGE>
CERTIFICATE OF AMENDMENT TO ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND, INC.
We, Everett S. Gille, President, and Larry D. Armel, Secretary of
Security Bond Fund, Inc., a corporation organized and existing under the laws of
the State of Kansas, and whose registered office is Security Benefit Life
Building, 700 Harrison Street, Topeka, Kansas, 66636, do hereby certify that at
the regular meeting of the board of directors of said corporation held on the
9th day of January, 1981, said board adopted resolutions setting forth the
following amendments to the articles of incorporation and declared their
advisability:
"RESOLVED, that the articles of incorporation of Security Bond Fund,
Inc. as heretofore amended, be further amended by deleting Article
FIRST in its entirety and by inserting, in lieu thereof, the following
new Article FIRST:
`FIRST: The name of the corporation is:
SECURITY BOND FUND.'"
"RESOLVED, that the articles of incorporation of Security Bond Fund,
Inc., as heretofore amended, be further amended by deleting the first
paragraph of Article FIFTH and by inserting, in lieu thereof, the
following:
`FIFTH: The total number of shares which the corporation shall
have authority to issue is 100,000,000 shares of capital stock,
each of the par value of $1.00 per share. The board of directors
shall have the power to fix the consideration to be received by
the corporation for any and all shares of stock issued by the
corporation, but at not less than the par value thereof'.
FURTHER RESOLVED, that the board of directors of this corporation
hereby declares the advisability of the foregoing amendments to
the articles of incorporation of this corporation and hereby
recommends that the stockholders of this corporation adopt said
amendments.
FURTHER RESOLVED, that at the annual meeting of the stockholders
of this corporation to be held at the offices of the corporation
in Topeka, Kansas, on March 27, 1981, beginning at 10:00 a.m. on
that day, the matter of the aforesaid proposed amendments to the
articles of incorporation of this corporation shall be submitted
to the stockholders entitled to vote thereon.
FURTHER RESOLVED, that in the event the stockholders of this
corporation shall approve and adopt the proposed amendments to
the articles of incorporation of this corporation as heretofore
adopted and recommended by this board of directors, the
appropriate officers of this corporation be, and they hereby are
authorized and directed, for and in behalf of this corporation,
to make, execute, verify, acknowledge and file or record in any
and all appropriate governmental offices any and all certificates
and other instruments, and to take any and all other action as
may be necessary to effectuate the said proposed amendments to
the articles of incorporation of this corporation."
That thereafter, pursuant to said resolutions and in accordance with
the bylaws and the laws of the State of Kansas, said directors called
a meeting of stockholders for the consideration of said amendments and
thereafter, pursuant to said notice and in accordance with the
statutes of the State of Kansas, on the 27th day of March, 1981, said
stockholders met and convened and considered said proposed amendments.
That at said meeting the stockholders entitled to vote did vote upon
the amendment to Article FIRST, and the majority of voting
stockholders of the corporation had voted for the proposed amendment
certifying that the votes were (Common Stock) 2,559,350 shares in
favor of the proposed amendment, (Common Stock) 223,217 shares against
the amendment, and (Common Stock) 477 shares abstained; and
That at said meeting the stockholders entitled to vote did vote upon
the amendment to Article FIFTH, and the majority of voting stockholders of the
corporation had voted for the proposed amendment certifying that the votes were
(Common Stock) 2,546,301 shares in favor of the proposed amendment, (Common
Stock) 236,266 shares against the amendment, and (Common Stock) 477 shares
abstained.
That said amendments were duly adopted in accordance with the
provisions of K.S.A. 16-6602, as amended.
That the capital of said corporation will not be reduced under or by
reason of said amendments.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the
seal of said corporation, this 30th day of March, 1981.
[Seal]
EVERETT S. GILLE
-----------------------------------
Everett S. Gille, President
LARRY D. ARMEL
-----------------------------------
Larry D. Armel, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Lois J. Hedrick, a Notary Public in
and for the County and State aforesaid, came Everett S. Gille, President, and
Larry D. Armel, Secretary, of Security Bond Fund, Inc., a corporation,
personally known to me to be the persons who executed the foregoing instrument
of writing as president and secretary, respectively, and duly acknowledged the
execution of the same this 30th day of March, 1981.
LOIS J. HEDRICK
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: January 8, 1984.
Submit in duplicate
A fee of $20.00 must accompany this form.
<PAGE>
CERTIFICATE OF AMENDMENT TO ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Larry D. Armel, Secretary of
Security Bond Fund, Inc., a corporation organized and existing under the laws of
the State of Kansas, and whose registered office is Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee, Kansas, do hereby certify that
at the regular meeting of the Board of Directors of said Corporation held on the
7th day of January, 1983, said board adopted resolutions setting forth the
following amendments to the Articles of Incorporation and declared their
advisability, to wit:
"RESOLVED, that the articles of incorporation of Security Bond Fund,
as heretofore amended, be further amended by deleting Article FIFTH in
its entirety and by inserting, in lieu thereof, the following new
Article FIFTH:
`FIFTH: The total number of shares of stock which the Corporation
shall have authority to issue is Five Hundred Million (500,000,000) shares
of common stock, of the par value of One Dollar ($1.00) per share. The
board of directors of the corporation is expressly authorized to cause
shares of common stock of the corporation authorized herein to be issued in
one or more series and to increase or decrease the number of shares so
authorized to be issued in any such series.
The following provisions are hereby adopted for the purpose of setting
forth the powers, rights, qualifications, limitations or restrictions of the
capital stock of the corporation:
(1) At all meetings of stockholders each stockholder of the corporation of
any class or series shall be entitled to one vote in person or by proxy on
each matter submitted to a vote at such meeting for each share of capital
stock of any class or series standing in his name on the books of the
corporation on the date, fixed in accordance with the Bylaws, for
determination of stockholders entitled to vote at such meeting. At all
elections of directors each stockholder of any class or series shall be
entitled to as many votes as shall equal the number of shares of stock of
any class or series multiplied by the number of directors to be elected,
and he may cast all of such votes for a single director or may distribute
them among the number to be voted for, or any two or more of them as he may
see fit.
(2) All shares of stock of the corporation of any class or series shall be
nonassessable.
(3) No holder of any shares of stock of the corporation of any class or
series shall be entitled as such, as a matter of right, to subscribe for or
purchase any shares of stock of the corporation of any class or series,
whether now or hereafter authorized or whether issued for cash, property or
services or as a dividend or otherwise, or to subscribe for or purchase any
obligations, bonds, notes, debentures, other securities or stock
convertible into shares of stock of the corporation of any class or series
or carrying or evidencing any right to purchase shares of stock of any
class or series.
(4) All persons who shall acquire stock in the corporation shall acquire
the same subject to the provisions of these articles of incorporation".
FURTHER RESOLVED, that the board of directors of this corporation
hereby declares the advisability of the foregoing amendment to the
articles of incorporation of this corporation and hereby recommends
that the stockholders of this corporation adopt said amendment.
FURTHER RESOLVED, that at the annual meeting of the stockholders of
this corporation to be held at the offices of the corporation in
Topeka, Kansas, on March 25, 1983, beginning at 10:00 a.m. on that
day, the matter of the aforesaid proposed amendment to the articles of
incorporation of this corporation shall be submitted to the
stockholders entitled to vote thereon.
FURTHER RESOLVED, that in the event the stockholders of this
corporation shall approve and adopt the proposed amendment to the
articles of incorporation of this corporation as heretofore adopted
and recommended by this board of directors, the appropriate officers
of this corporation be, and they hereby are authorized and directed,
for and in behalf of this corporation, to make, execute, verify,
acknowledge and file or record in any and all appropriate governmental
offices any and all certificates and other instruments, and to take
any and all other action as may be necessary to effectuate the
proposed amendment to the articles of incorporation of this
corporation.
That thereafter, pursuant to said resolution and in accordance with
the by-laws and the laws of the State of Kansas, said directors called a meeting
of stockholders for the consideration of said amendment, and thereafter,
pursuant to said notice and in accordance with the statutes of the State of
Kansas, on the 25th day of March, 1983, said stockholders met and convened and
considered said proposed amendment.
That at said meeting the stockholders entitled to vote did vote upon
said amendment, and the majority of voting stockholders of the corporation had
voted for the proposed amendment certifying that the votes were
3,242,059 Common Stock shares in favor of the proposed amendment,
170,544 Common Stock shares against the amendment, and
3,642 Common Stock shares abstained from voting on the amendment.
That said amendment was duly adopted in accordance with the provisions
of K.S.A. 17-6602, as amended.
That the capital of said corporation will not be reduced under or by
reason of said amendment.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the
seal of said Corporation, this 30th day of March, 1983.
[Seal]
EVERETT S. GILLE
-----------------------------------
Everett S. Gille, President
LARRY D. ARMEL
-----------------------------------
Larry D. Armel, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Lois J. Hedrick, a Notary Public in
and for the County and State aforesaid, came Everett S. Gille, President, and
Larry D. Armel, Secretary, of Security Bond Fund, a corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 30th day of March, 1983.
LOIS J. HEDRICK
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: January 8, 1984.
Submit to this office in duplicate.
A fee of $20.00 must accompany this form.
<PAGE>
CERTIFICATE OF AMENDMENT TO ARTICLES OF INCORPORATION
OF
SECURITY BOND FUND
We, Everett S. Gille, President, and Barbara W. Rankin, Secretary, of
Security Bond Fund, a corporation organized and existing under the laws of the
State of Kansas, and whose registered office is at 700 Harrison Street, in the
city of Topeka, county of Shawnee, 66636, Kansas, do hereby certify that at the
special meeting of the Board of Directors of said corporation held on the 3rd
day of May, 1985, said board adopted a resolution setting forth the following
amendments to the Articles of Incorporation and declared its advisability:
"RESOLVED, that the articles of incorporation of Security Bond
Fund, as heretofore amended, be further amended by deleting
Article FIRST in its entirety and by inserting, in lieu thereof,
the following new Article FIRST:
"FIRST: The name of the corporation (hereinafter called the
Corporation) is SECURITY INCOME FUND."
FURTHER RESOLVED, that the board of directors of this corporation
hereby declares the advisability of the foregoing amendment to
the articles of incorporation of this corporation and hereby
recommends that the stockholders of this corporation adopt said
amendment.
FURTHER RESOLVED, that in the event the stockholders of this
corporation shall approve and adopt the proposed amendment to the
articles of incorporation of this corporation as heretofore
adopted and recommended by this board of directors, the
appropriate officers of this corporation be, and they hereby are
authorized and directed, for and in behalf of this corporation,
to make, execute, verify, acknowledge and file or record in any
and all appropriate governmental offices any and all certificates
and other instruments, and to take any and all other action as
may be necessary to effectuate the proposed amendment to the
articles of incorporation of this corporation."
We further certify that thereafter, pursuant to said resolution, and
in accordance with the by-laws of the corporation and the laws of the State of
Kansas, the Board of Directors called a meeting of stockholders for
consideration of the proposed amendment, and thereafter, pursuant to notice and
in accordance with the statutes of the State of Kansas, on the 12th day of July,
1985, said stockholders convened and considered the proposed amendment.
We further certify that at said meeting a majority of the stockholders
entitled to vote voted in favor of the proposed amendment, and that the votes
were 2,996,852 common shares in favor of the proposed amendment and 406,842
common shares against the amendment.
We further certify that the amendment was duly adopted in accordance
with the provisions of K.S.A. 17-6602, as amended.
We further certify that the capital of said corporation will not be
reduced under or by reason of said amendment.
IN WITNESS WHEREOF we have hereunto set our hands and affixed the seal
of said corporation this 23rd day of July, 1985.
[Seal]
EVERETT S. GILLE
-----------------------------------
Everett S. Gille, President
BARBARA W. RANKIN
-----------------------------------
Barbara W. Rankin, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, a Notary Public in and for the
aforesaid county and state, personally appeared Everett S. Gille, President, and
Barbara W. Rankin, Secretary, of Security Bond Fund, a corporation, who are
known to me to be the same persons who executed the foregoing Certificate of
Amendment to Articles of Incorporation, and duly acknowledged the execution of
the same this 23rd day of July, 1985.
LOIS J. HEDRICK
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: June 1, 1988
THIS FORM MUST BE SUBMITTED TO THIS OFFICE IN DUPLICATE.
THE FILING FEE OF $20 MUST ACCOMPANY THIS DOCUMENT.
MAIL THIS DOCUMENT, WITH FEE, TO:
Secretary of State
Capitol, 2nd Floor
Topeka, KS 66612
<PAGE>
CERTIFICATE OF
DESIGNATION OF SERIES
OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
)ss.:
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Barbara W. Rankin, Secretary, of
Security Income Fund, a corporation organized and existing under the laws of the
State of Kansas, and whose registered office is the Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify
that pursuant to the authority expressly vested in the board of directors by the
provisions of the corporation's articles of incorporation, the board of
directors of said corporation at its regular meeting duly convened and held on
the 3rd day of May, 1985, adopted resolutions establishing two separate series
of common stock of the corporation and setting forth the preferences, rights,
privileges and restrictions of such series, which resolutions provided in their
entirety as follows:
RESOLVED, that, pursuant to Article FIFTH of the Fund's articles of
incorporation, the Fund shall be authorized to issue 200,000 shares of
common stock of the Fund, each of the par value of One Dollar ($1.00)
per share, in the Corporate Bond Series, the investment objective of
which shall be identical to that of current investment objective of
the Fund, to wit: to conserve principal while generating interest
income by investing in upper medium to high-grade debt securities,
primarily those issued by U.S. and Canadian corporations and
securities which are obligations of or guaranteed by the U.S.
Government or any of its agencies. The Fund shall also be authorized
to issue 200,000 shares of common stock of the Fund, each of the par
value of One Dollar ($1.00) per share, in the U.S. Government Series,
the investment objective of which is to provide a high level of
interest income with security of principal by investing in securities
which are guaranteed or issued by the U.S. Government, its agencies or
instrumentalities.
FURTHER RESOLVED, that the powers, rights, qualifications, limitations
and restrictions of the shares of the Fund's series of common stock,
as set forth in the minutes of the January 7, 1983 meeting of this
board of directors, are hereby reaffirmed and incorporated by
reference in the minutes of this meeting.
FURTHER RESOLVED, that the issuance of shares in the above described
series shall take place upon the effectiveness of the Fund's
post-effective amendment, filed with the Securities and Exchange
Commission, updating the material contained in the Fund's registration
statement and reflecting the conversion of the Fund into an investment
company of the Series type, as further authorized below.
FURTHER RESOLVED, that, the appropriate officers of the corporation
be, and they hereby are authorized and directed, for and in behalf of
this corporation, to make, execute, verify, acknowledge and file or
record in any and all appropriate governmental offices any and all
other action as may be necessary to effectuate the proposed
conversion.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the
seal of the corporation this 26th day of July, 1985.
EVERETT S. GILLE
-----------------------------------
EVERETT S. GILLE, President
BARBARA W. RANKIN
-----------------------------------
BARBARA W. RANKIN, Secretary
STATE OF KANSAS )
) ss.:
COUNTY OF SHAWNEE)
Be it remembered, that before me, Lois J. Hedrick, a Notary Public in
and for the County and State aforesaid, came EVERETT S. GILLE, President, and
BARBARA W. RANKIN, Secretary, of Security Income Fund, a Kansas corporation,
personally known to me to be the persons who executed the foregoing instrument
of writing as president and secretary, respectively, and duly acknowledged the
execution of the same this 26th day of July, 1985.
LOIS J. HEDRICK
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: June 1, 1988.
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.:
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Barbara W. Rankin, Secretary of
Security Income Fund, a corporation organized and existing under the laws of the
State of Kansas, and whose registered office is the Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify
that pursuant to the authority expressly vested in the board of directors by the
provisions of the corporation's articles of incorporation, the board of
directors of said corporation at its regular meeting duly convened and held on
the 10th day of January, 1986, adopted resolutions establishing a third separate
series of common stock of the corporation and setting forth the preferences,
rights, privileges and restrictions of such series, which resolutions provided
in their entirety as follows:
RESOLVED, that, pursuant to the Article FIFTH of the Fund's articles
of incorporation, the Fund shall be authorized to issue 100,000,000
shares of common stock of the Fund, each of the par value of One
Dollar ($1.00) per share, in the High-Yield Series, the investment
objective of which is to seek high current income by investing in
higher yielding, long-term securities.
FURTHER RESOLVED, that, the powers, rights, qualifications,
limitations and restrictions of the shares of the Fund's series of
common stock, as set forth in the minutes of the January 7, 1983
meeting of this board of directors, are hereby reaffirmed and
incorporated by reference into the minutes of this meeting.
FURTHER RESOLVED, that, the issuance of shares in the above described
series shall take place upon the effectiveness of the Fund's
post-effective amendment, filed with the Securities and Exchange
Commission, updating the material contained in the Fund's registration
statement and reflecting the conversion of the Fund into an investment
company of the Series type, as further authorized below.
FURTHER RESOLVED, that the appropriate officers of the corporation be,
and they hereby are authorized and directed, for and in behalf of this
corporation, to make, execute, verify, acknowledge and file or record
in any and all appropriate governmental offices any and all
appropriate governmental offices any and all other action as may be
necessary to effectuate the proposed conversion.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the
seal of the corporation this 6th day of February, 1986.
EVERETT S. GILLE
-----------------------------------
EVERETT S. GILLE, President
BARBARA W. RANKIN
-----------------------------------
BARBARA W. RANKIN, Secretary
STATE OF KANSAS )
) ss.:
COUNTY OF SHAWNEE)
Be it remembered, that before me, Glenda J. Overstreet, a Notary Public in
and for the County and State aforesaid, came EVERETT S. GILLE, President, and
BARBARA W. RANKIN,Secretary, of Security Income Fund, a Kansas corporation,
personally known to me to be the persons who executed the foregoing instrument
of writing as president and secretary, respectively, and duly acknowledged the
execution of the same this 6th day of February, 1986.
GLENDA J. OVERSTREET
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: February 1, 1990
<PAGE>
AMENDED
CERTIFICATE OF DESIGNATION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.:
COUNTY OF SHAWNEE)
We, Everett S. Gille, President, and Barbara W. Rankin, Secretary, of
Security Income Fund, a corporation organized and existing under the laws of the
State of Kansas, and whose registered office is the Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify
that pursuant to the authority expressly vested in the board of directors by the
provisions of the corporation's articles of incorporation, the board of
directors of said corporation at its regular meeting duly convened and held on
the 10th day of January, 1986, adopted resolutions establishing two separate
series of common stock of the corporation and setting forth the preferences,
rights, privileges and restrictions of such series, which resolutions provided
in their entirety as follows:
RESOLVED, that, pursuant to the Article FIFTH of the Fund's articles
of incorporation, the Fund shall be authorized to issue 200,000,000
shares of common stock of the Fund, each of the par value of One
Dollar ($1.00) per share, in the Corporate Bond Series, the investment
objective of which shall be identical to that of current investment
objective of the Fund, to wit: to conserve principal while generating
interest income by investing in upper medium to high-grade debt
securities primarily those issued by U.S. and Canadian corporations
and securities which are obligations of or guaranteed by the U.S.
Government or any of its agencies. The Fund shall also be authorized
to issue 200,000,000 shares of common stock of the Fund, each of the
par value of One Dollar ($1.00) per share, in the U.S. Government
Series, the investment objective of which is to provide a high level
of interest income with security of principal by investing in
securities which are guaranteed or issued by the U.S. Government, its
agencies or instrumentalities.
FURTHER RESOLVED, that, the powers, rights, qualifications,
limitations and restrictions of the shares of the Fund's series of
common stock, as set forth in the minutes of the January 7, 1983
meeting of this board of directors, are hereby reaffirmed and
incorporated by reference into the minutes of this meeting.
FURTHER RESOLVED, that, the issuance of shares in the above described
series shall take place upon the effectiveness of the Fund's
post-effective amendment, filed with the Securities and Exchange
Commission, updating the material contained in the Fund's registration
statement and reflecting the conversion of the Fund into an investment
company of the Series type, as further authorized below.
FURTHER RESOLVED, that the appropriate officers of the corporation be,
and they hereby are authorized and directed, for and in behalf of this
corporation, to make, execute, verify, acknowledge and file or record
in any and all appropriate governmental offices any and all
appropriate governmental offices any and all other action as may be
necessary to effectuate the proposed conversion.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the
seal of the corporation this 6th day of February, 1986.
EVERETT S. GILLE
-----------------------------------
EVERETT S. GILLE, President
BARBARA W. RANKIN
-----------------------------------
BARBARA W. RANKIN, Secretary
STATE OF KANSAS )
) ss.:
COUNTY OF SHAWNEE)
Be it remembered, that before me, Glenda J. Overstreet, a Notary
Public in and for the County and State aforesaid, came EVERETT S. GILLE,
President, and BARBARA W. RANKIN, Secretary, of Security Income Fund, a Kansas
corporation, personally known to me to be the persons who executed the foregoing
instrument of writing as president and secretary, respectively, and duly
acknowledged the execution of the same this 6th day of February, 1986.
GLENDA J. OVERSTREET
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: February 1, 1990
<PAGE>
CERTIFICATE OF AMENDMENT TO THE ARTICLES OF INCORPORATION
OF
SECURITY INCOME FUND
We, Michael J Provines, President , and Amy J. Lee, Secretary of the
above named corporation, a corporation organized and existing under the laws of
the State of Kansas, do hereby certify that at a meeting of the Board of
Directors of said corporation, the board adopted a resolution setting forth the
following amendment to the Articles of Incorporation and declaring its
advisability;
"A director shall not be personally liable to the corporation or to
its stockholders for monetary damages for breach of fiduciary duty as a
director, provided that this sentence shall not eliminate nor limit the
liability of a director:
A. for any breach of his or her duty of loyalty to the corporation or
to itstockholders:
B. for acts or omissions not in good faith or which involve
intentional misconduct or a knowing violation of law;
C. for an unlawful dividend, stock purchase or redemption under the
provisions of Kansas Statutes Annotated (K.S.A.) 17-6424 and
amendments thereto; or
D. for any transaction from which the director derived an improper
personal benefit."
We further certify that thereafter, pursuant to said resolution, and in
accordance with the by-laws of the corporation and the laws of the State of
Kansas, the Board of Directors called a meeting of stockholders for
consideration of the proposed amendment, and thereafter, pursuant to notice and
in accordance with the statutes of the State of Kansas, the stockholders
convened and considered the proposed amendment.
We further certify that at the meeting a majority of the stockholders entitled
to vote voted in favor of the proposed amendment.
We further certify that the amendment was duly adopted in accordance with the
provisions of K.S.A. 17-6602, as amended.
We further certify that the capital of said corporation will not be reduced
under or by reason of said amendment.
IN WITNESS WHEREOF, we have hereunto set out hands and affixed the seal of said
corporation this 19th day of April, 1988.
MICHAEL J. PROVINES
-----------------------------------
Michael J. Provines, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, a Notary Public in and for the
aforesaid county and state, personally appeared Michael J. Provines, President,
and Amy J. Lee, Secretary, of the corporation named in this document, who are
known to me to be the same persons who executed the foregoing certificate, and
duly acknowledged the execution of the same this 19th day of April, 1988.
CONNIE BRUNGARDT
-----------------------------------
Notary Public
My Commission Expires: November 30, 1991.
PLEASE SUBMIT THIS DOCUMENT IN DUPLICATE,
WITH $20.00 FILING FEE, TO:
Secretary of State
Capitol. 2nd Floor
Topeka, KS 66612
(913) 296-2236
<PAGE>
CERTIFICATE OF DISSOLUTION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
PURSUANT TO K.S.A. SECTION 17-6401(g)
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, Michael J. Provines, President, and Amy J. Lee, Secretary, of Security
Income Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is the Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to the authority expressly vested in the Board of Directors by the provisions of
the corporation's Articles of Incorporation, the Board of Directors of said
corporation by unanimous written consent dated December 9, 1991, adopted a
resolution dissolving the High Yield Series of common stock of the corporation,
which resolution provided in its entirety as follows:
RESOLVED, that as of December 9, 1991, there are no authorized shares
of the High Yield Series of Security Income Fund outstanding and none
will be issued in the future.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 9th day of December, 1991.
MICHAEL J. PROVINES
-----------------------------------
Michael J. Provines, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
Be it remembered, that on this 9th day of December, 1991, before me, the
undersigned a notary public in and for the county and state aforesaid, came
Michael J. Provines, President, and Amy J. Lee, Secretary of Security Income
Fund, a Kansas corporation, personally known to me to be the persons who
executed the foregoing instrument of writing as President and Secretary,
respectively, and duly acknowledged the execution of the same to be the act and
deed of said corporation.
In testimony whereof, I have hereunto set my hand and affixed my notarial seal
the day and year last above written.
LINDA K. GIFFORD
-----------------------------------
Notary Public
My Commission Expires: November 1, 1993.
<PAGE>
CERTIFICATE OF AMENDMENT TO THE
ARTICLES OF INCORPORATION
OF
SECURITY INCOME FUND
We, Michael J Provines, President , and Amy J. Lee, Secretary of the above named
corporation, a corporation organized and existing under the laws of the State of
Kansas, do hereby certify that at a meeting of the Board of Directors of said
corporation, the board adopted a resolution setting forth the following
amendment to the Articles of Incorporation and declaring its advisability:
See attached amendment
We further certify that thereafter, pursuant to said resolution, and in
accordance with the by-laws of the corporation and the laws of the State of
Kansas, the Board of Directors called a meeting of stockholders for
consideration of the proposed amendment, and thereafter, pursuant to notice and
in accordance with the statutes of the State of Kansas, the stockholders
convened and considered the proposed amendment.
We further certify that at a meeting a majority of the stockholders entitled to
vote voted in favor of the proposed amendment.
We further certify that the amendment was duly adopted in accordance with the
provisions of K.S.A. 17-6602, as amended.
IN WITNESS WHEREOF, we have hereunto set out hands and affixed the seal of said
corporation this 27th day of July, 1993.
MICHAEL J. PROVINES
-----------------------------------
Michael J. Provines, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered that before me, a Notary Public in and for the aforesaid county
and state, personally appeared Michael J. Provines, President, and Amy J. Lee,
Secretary, the corporation named in this document, who are known to me to be the
same persons who executed the foregoing certificate, and duly acknowledged the
execution of the same this 27th day of July, 1993.
PEGGY S. AVEY
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: November 21, 1996.
PLEASE SUBMIT THIS DOCUMENT IN DUPLICATE,
WITH $20 FILING FEE, TO:
Secretary of State
2nd Floor, State Capitol
Topeka, KS 66612-1594
(913) 296-4564
<PAGE>
SECURITY INCOME FUND
The Board of Directors of Security Income Fund recommends that the Articles of
Incorporation be amended by deleting Article Fifth in its entirety and by
inserting, in lieu therefor, the following new Article:
FIFTH: The total number of shares of stock which the corporation shall have
authority to issue shall be Four Hundred Million (400,000,000) shares of common
stock, each of the par value of One Dollar ($1.00) per share. The board of
directors of the corporation is expressly authorized to cause shares of common
stock of the corporation authorized herein to be issued in one or more classes
or series as may be established from time to time by setting or changing in one
or more respects the voting powers, rights, qualifications, limitations or
restrictions of such shares of stock and to increase or decrease the number of
shares so authorized to be issued in any such class or series.
The following provisions are hereby adopted for the purpose of setting forth the
powers, rights, qualifications, limitations or restrictions of the capital stock
of the corporation (unless provided otherwise by the board of directors with
respect to any such additional class or series at the time of establishing and
designating such additional class or series):
(1) At all meetings of stockholders each stockholder of the corporation of any
class or series shall be entitled to one vote in person or by proxy on each
matter submitted to a vote at such meeting for each share of capital stock
of any class or series standing in the stockholder's name on the books of
the corporation on the date, fixed in accordance with the Bylaws, for
determination of stockholders entitled to vote at such meeting. At all
elections of directors each stockholder of any class or series shall be
entitled to as many votes as shall equal the number of shares of stock of
any class or series multiplied by the number of directors to be elected,
and stockholders may cast all of such votes for a single director or may
distribute them among the number to be voted for, or any two or more of
them as they may see fit.
(2) All shares of stock of the corporation of any class or series shall be
nonassessable.
(3) No holder of any shares of stock of the corporation of any class or series
shall be entitled as such, as a matter of right, to subscribe for or
purchase any shares of stock of the corporation of any class or series,
whether now or hereafter authorized or whether issued for cash, property or
services or as a dividend or otherwise, or to subscribe for or purchase any
obligations, bonds, notes, debentures, other securities or stock
convertible into shares of stock of the corporation of any class or series
or carrying or evidencing any right to purchase shares of stock of any
class or series.
(4) All persons who shall acquire stock in the corporation shall acquire the
same subject to the provisions of these articles of incorporation.
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES AND CLASSES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
)ss.
COUNTY OF SHAWNEE)
We, Michael J. Provines, President, and Brenda M. Luthi, Assistant Secretary, of
Security Income Fund, a corporation organized and existing under the laws of the
State of Kansas, and whose registered office is the Security Benefit Life
Building, 700 Harrison Street, Topeka, Shawnee, Kansas, do hereby certify that
pursuant to the authority expressly vested in the Board of Directors by the
provisions of the corporation's Articles of Incorporation, the Board of
Directors of said corporation at a meeting duly convened and held on the 23rd
day of July, 1993, adopted resolutions establishing two new series of common
stock in addition to those series of common stock currently being issued by the
corporation. Resolutions were also adopted which set forth the preferences,
rights, privileges and restrictions of the separate series of stock of Security
Income Fund, which resolutions are provided in their entirety as follows:
RESOLVED that, pursuant to the authority vested in the Board of Directors of
Security Income Fund by its Articles of Incorporation, the officers of the Fund
are hereby directed and authorized to establish two new series of the Fund and
to redesignate the existing series. The existing series shall be known as
Corporate Bond Series A and U.S. Government Series A. The new series hereby
established shall be known as Corporate Bond Series B and U.S. Government Series
B. The officers of the Fund are hereby directed and authorized to allocate
100,000,000 $1.00 par value shares of the Fund's authorized capital stock of
400,000,000 shares to each series.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless of
series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall be
entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled to
as many votes as shall equal the number of shares of stock multiplied by the
number of directors to be elected, and he or she may cast all of such votes
for a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit. Notwithstanding
the foregoing, (i) if any matter is submitted to the stockholders which does
not affect the interest of all series, then only stockholders of the
affected series shall be entitled to vote and (ii) in the event the
Investment Company Act of 1940, as amended, or the rules and regulations
promulgated thereunder shall require a greater or different vote than would
otherwise be required herein or by the Articles of Incorporation of the
corporation, such greater or different voting requirement shall also be
satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset value
thereof, such redemption and the valuation and payment in connection
therewith to be made in compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as from time to time
amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available thereof.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A and B shall represent
a stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B and the U.S. Government
Series A and B, respectively, all securities and other property held as
a result of the investment and reinvestment of such cash and other
property, all revenues and income received or receivable with respect
to such cash, other property, investments and reinvestments, and all
proceeds derived from the sale, exchange, liquidation or other
disposition of any of the foregoing, shall be allocated to the
Corporate Bond Series A and B or U.S. Government Series A and B to
which they relate and held for the benefit of the stockholders owning
shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and charged
to the series to which such loss, liability or expense relates. Where
any loss, liability or expense relates to more than one series, the
Board of Directors shall allocate the same between or among such series
pro rata based on the respective net asset values of such series or on
such other basis as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors out
of funds legally available therefor. Shares of Corporate Bond Series A and B
represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and B
represent a stockholder interest in a particular fund of assets held by the
corporation and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
shall be paid at the same dividend rate, except that expenses attributable
to a particular series and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected U.S.
Government Series. Stockholders of the U.S. Government Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Whenever dividends are declared
and paid with respect to the Corporate Bond Series A and B or the U.S.
Government Series A and B, the holders of shares of the other series shall
have no rights in or to such dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B or the U.S. Government Series B (except those purchased through the
reinvestment of dividends and other distributions) will automatically
convert to Corporate Bond Series A or U.S. Government Series A,
respectively, at the relative net asset values of each of the series without
the imposition of any sales load, fee or other charge. All shares in a
stockholder's account that were purchased through the reinvestment of
dividends and other distributions will be considered to be held in a
separate sub-account. Each time Series B shares are converted to Series A
shares, a pro rata portion of the Series B shares held in the sub-account
will also convert to Series A shares.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
Corporation this 19th day of October, 1993.
MICHAEL J. PROVINES
------------------------------------
Michael J. Provines, President
BRENDA M. LUTHI
------------------------------------
Brenda M. Luthi, Assistant Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Peggy S. Avey, a Notary Public in and for the
County and State aforesaid, came Michael J. Provines, President, and Brenda M.
Luthi, Assistant Secretary, of Security Income Fund, a Kansas Corporation,
personally known to me to be the persons who executed the foregoing instrument
of writing as President and Secretary, respectively, and duly acknowledged the
execution of the same this 19th day of October, 1993.
PEGGY S. AVEY
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: November 21, 1996
<PAGE>
CERTIFICATE OF AMENDMENT TO THE
ARTICLES OF INCORPORATION
OF
SECURITY INCOME FUND
We, John D. Cleland, President , and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, do hereby certify that at a meeting of the Board of Directors of said
corporation, the board adopted a resolution setting forth the following
amendment to the Articles of Incorporation and declaring its advisability:
See attached amendment
We further certify that thereafter, pursuant to said resolution, and in
accordance with the by-laws of the corporation and the laws of the State of
Kansas, the Board of Directors called a meeting of stockholders for
consideration of the proposed amendment, and thereafter, pursuant to notice and
in accordance with the statutes of the State of Kansas, the stockholders
convened and considered the proposed amendment.
We further certify that at a meeting a majority of the stockholders entitled to
vote, voted in favor of the proposed amendment.
We further certify that the amendment was duly adopted in accordance with the
provisions of K.S.A. 17-6602, as amended.
IN WITNESS WHEREOF, we have hereunto set out hands and affixed the seal of the
corporation this 21st day of December, 1994.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, a Notary Public in and for the aforesaid
county and state, personally appeared John D. Cleland, President, and Amy J.
Lee, Secretary, of Security Income Fund, who are known to me to be the same
persons who executed the foregoing certificate and duly acknowledged the
execution, of the same this 21st day of December, 1994
JUDITH M. RALSTON
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: January 1, 1995.
PLEASE SUBMIT THIS DOCUMENT IN DUPLICATE,
WITH $20 FILING FEE, TO:
Secretary of State
2nd Floor, State Capitol
Topeka, KS 66612-1594
(913) 296-4564
<PAGE>
SECURITY INCOME FUND
The Board of Directors of Security Income Fund recommends that the Articles of
Incorporation be amended by deleting the first paragraph of Article Fifth and by
inserting, in lieu therefor, the following new Article:
FIFTH: The total number of shares of stock which the corporation shall have
authority to issue shall be one billion (1,000,000,000) shares of common
stock, each of the par value of one dollar ($1.00) per share. The board of
directors of the corporation is expressly authorized to cause shares of
common stock of the corporation authorized herein to be issued in one or
more classes or series as may be established from time to time by setting
or changing in one or more respects the voting powers, rights,
qualifications, limitations or restrictions of such shares of stock and to
increase or decrease the number of shares so authorized to be issued in any
such class or series.
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES AND CLASSES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
)ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 21st day of October,
1994, adopted resolutions (i) establishing two new series of common stock in
addition to those four series of common stock currently being issued by the
corporation, and (ii) allocating the corporation's authorized capital stock
among the six separate series of common stock of the corporation. Resolutions
were also adopted which for the two new series set forth and for the existing
four series reaffirmed, the preferences, rights, privileges and restrictions of
separate series of stock of Security Income Fund, which resolutions are provided
in their entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of two new series
of common stock of Security Income Fund in addition to the four separate series
of common stock presently issued by the fund designated as U.S. Government
Series A, U.S. Government Series B, Corporate Bond Series A and Corporate Bond
Series B.
WHEREAS, the corporation's shareholders will consider an amendment to the
corporation's articles of incorporation to increase the authorized capital stock
of the corporation from 400,000,000 to 1,000,000,000 shares, at a meeting of
shareholders to be held December 21, 1994; and
WHEREAS, upon approval by shareholders of the proposed amendment to the
corporation's articles of incorporation, the Board of Directors wishes to
reallocate the 1,000,000,000 shares of authorized capital stock among the
series.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to establish two new series of the Security Income Fund
designated as Limited Maturity Bond Series A and Limited Maturity Bond Series B.
FURTHER RESOLVED, that, upon approval by shareholders of an amendment increasing
the corporation's authorized capital stock from 400,000,000 to 1,000,000,000
shares, the officers of the corporation are hereby directed and authorized to
allocate the corporation's authorized capital stock of 1,000,000,000 shares as
follows: 200,000,000 $1.00 par value shares to each of Corporate Bond Series A
and B; 100,000,000 $1.00 par value shares to each of U.S. Government
Series A and B; 100,000,000 $1.00 par value shares to each of Limited Maturity
Bond Series A and B; and 200,000,000 $1.00 par value shares shall remain
unallocated.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless of
series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall be
entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled to
as many votes as shall equal the number of shares of stock multiplied by the
number of directors to be elected, and he or she may cast all of such votes
for a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit. Notwithstanding
the foregoing, (i) if any matter is submitted to the stockholders which does
not affect the interests of all series, then only stockholders of the
affected series shall be entitled to vote and (ii) in the event the
Investment Company Act of 1940, as amended, or the rules and regulations
promulgated thereunder shall require a greater or different vote than would
otherwise be required herein or by the Articles of Incorporation of the
corporation, such greater or different voting requirement shall also be
satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset value
thereof, such redemption and the valuation and payment in connection
therewith to be made in compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as from time to time
amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of Limited Maturity Bond Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B, the U.S. Government Series
A and B, and Limited Maturity Bond Series A and B, respectively, all
securities and other property held as a result of the investment and
reinvestment of such cash and other property, all revenues and income
received or receivable with respect to such cash, other property,
investments and reinvestments, and all proceeds derived from the sale,
exchange, liquidation or other disposition of any of the foregoing,
shall be allocated to the Corporate Bond Series A and B, U.S.
Government Series A and B, or Limited Maturity Bond Series A and B, to
which they relate and held for the benefit of the stockholders owning
shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and charged
to the series to which such loss, liability or expense relates. Where
any loss, liability or expense relates to more than one series, the
Board of Directors shall allocate the same between or among such series
pro rata based on the respective net asset values of such series or on
such other basis as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors out
of funds legally available therefor. Shares of Corporate Bond Series A and B
represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and B
represent a stockholder interest in a particular fund of assets held by the
corporation and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
shall be paid at the same dividend rate, except that expenses attributable
to a particular series and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected U.S.
Government Series. Stockholders of the U.S. Government Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Limited Maturity Bond
Series A and B represent a stockholder interest in a particular fund of
assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and will
be paid at the same dividend rate except that expenses attributable to
Limited Maturity Bond Series A or B and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the affected
Limited Maturity Bond Series. Stockholders of the Limited Maturity Bond
Series shall share in dividends declared and paid with respect to such
series pro rata based on their ownership of shares of such series. Whenever
dividends are declared and paid with respect to the Corporate Bond Series A
and B, U.S. Government Series A and B, or Limited Maturity Bond Series A and
B, the holders of shares of the other series shall have no rights in or to
such dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B, U.S. Government Series B, or Limited Maturity Bond Series B,
(except those purchased through the reinvestment of dividends and other
distributions), such shares will automatically convert to shares of
Corporate Bond Series A, U.S. Government Series A, Limited Maturity Bond
Series A, respectively, at the relative net asset values of each of the
series without the imposition of any sales load, fee or other charge. All
shares in a stockholder's account that were purchased through the
reinvestment of dividends and other distributions paid with respect to
Series B shares will be considered to be held in a separate sub-account.
Each time Series B shares are converted to Series A shares, a pro rata
portion of the Series B shares held in the sub-account will also convert to
Series A shares.
We hereby certify that pursuant to said resolution, and in accordance with the
by-laws of the corporation and the laws of the State of Kansas, the Board of
Directors called a meeting of stockholders for consideration of the proposed
amendment to the articles of incorporation, and thereafter, pursuant to notice
and in accordance with the statutes of the State of Kansas, the stockholders
convened and considered the proposed amendment. We further certify that at the
meeting a majority of the stockholders entitled to vote voted in favor of the
proposed amendment which was duly adopted in accordance with the provisions of
K.S.A. 17-6602, as amended.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 21st day of December, 1994.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
JUDITH M. RALSTON
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: January 1, 1995.
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES AND CLASSES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
)ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 3rd day of February,
1995, adopted resolutions (i) establishing two new series of common stock in
addition to those six series of common stock currently being issued by the
corporation, and (ii) allocating the corporation's authorized capital stock
among the eight separate series of common stock of the corporation. Resolutions
were also adopted which for the two new series set forth and for the existing
six reaffirmed the preferences, rights, privileges and restrictions of separate
series of stock of Security Income Fund, which resolutions are provided in their
entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of two new series
of common stock of Security Income Fund in addition to the six separate series
of common stock presently issued by the fund designated as U.S. Government
Series A, U.S. Government Series B, Corporate Bond Series A, Corporate Bond
Series B, Limited Maturity Bond Series A and Limited Maturity Bond Series B.
WHEREAS, the Board of Directors wishes to reallocate the 1,000,000,000 shares of
authorized capital stock among the series.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to establish two new series of the Security Income Fund
designated as Global Aggressive Bond Series A and Global Aggressive Bond Series
B.
FURTHER RESOLVED, that, the officers of the corporation are hereby directed and
authorized to allocate the corporation's authorized capital stock of
1,000,000,000 shares as follows: 200,000,000 $1.00 par value shares to each of
Corporate Bond Series A and B; 100,000,000 $1.00 par value shares to each of
U.S. Government Series A and B; 100,000,000 $1.00 par value shares to each of
Limited Maturity Bond Series A and B; and 100,000,000 $1.00 par value shares to
each of Global Aggressive Bond Series A and B.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless of
series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall be
entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled to
as many votes as shall equal the number of shares of stock multiplied by the
number of directors to be elected, and he or she may cast all of such votes
for a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit. Notwithstanding
the foregoing, (i) if any matter is submitted to the stockholders which does
not affect the interests of all series, then only stockholders of the
affected series shall be entitled to vote and (ii) in the event the
Investment Company Act of 1940, as amended, or the rules and regulations
promulgated thereunder shall require a greater or different vote than would
otherwise be required herein or by the Articles of Incorporation of the
corporation, such greater or different voting requirement shall also be
satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset value
thereof, such redemption and the valuation and payment in connection
therewith to be made in compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as from time to time
amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of Limited Maturity Bond Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Global Aggressive Bond Series A and B
shall represent a stockholder interest in a particular fund of assets
held by the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B, the U.S. Government Series
A and B, Limited Maturity Bond Series A and B, and Global Aggressive
Bond Series A and B respectively, all securities and other property
held as a result of the investment and reinvestment of such cash and
other property, all revenues and income received or receivable with
respect to such cash, other property, investments and reinvestments,
and all proceeds derived from the sale, exchange, liquidation or other
disposition of any of the foregoing, shall be allocated to the
Corporate Bond Series A and B, U.S. Government Series A and B, or
Limited Maturity Bond Series A and B, or Global Aggressive Bond Series
A and B, to which they relate and held for the benefit of the
stockholders owning shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and charged
to the series to which such loss, liability or expense relates. Where
any loss, liability or expense relates to more than one series, the
Board of Directors shall allocate the same between or among such series
pro rata based on the respective net asset values of such series or on
such other basis as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors out
of funds legally available therefor. Shares of Corporate Bond Series A and B
represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and B
represent a stockholder interest in a particular fund of assets held by the
corporation and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
shall be paid at the same dividend rate, except that expenses attributable
to a particular series and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected U.S.
Government Series. Stockholders of the U.S. Government Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Limited Maturity Bond
Series A and B represent a stockholder interest in a particular fund of
assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and will
be paid at the same dividend rate except that expenses attributable to
Limited Maturity Bond Series A or B and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the affected
Limited Maturity Bond Series. Stockholders of the Limited Maturity Bond
Series shall share in dividends declared and paid with respect to such
series pro rata based on their ownership of shares of such series. Shares of
Global Aggressive Bond Series A and B represent a stockholder interest in a
particular fund of assets and accordingly, dividends shall be calculated and
declared for these series in the same manner, at the same time, on the same
day, and will be paid at the same dividend rate except that expenses
attributable to Global Aggressive Bond Series A or B and payments made
pursuant to a 12b-1 Plan or Shareholder Services Plan shall be born
exclusively by the affected Global Aggressive Bond Series. Stockholders of
the Global Aggressive Bond Series A and B shall share in dividends declared
and paid with respect to such series pro rata based on their ownership of
shares of such series. Whenever dividends are declared and paid with respect
to the Corporate Bond Series A and B, U.S. Government Series A and B,
Limited Maturity Bond Series A and B, or Global Aggressive Bond Series A and
B, the holders of shares of the other series shall have no rights in or to
such dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B, U.S. Government Series B, Limited Maturity Bond Series B, or
Global Aggressive Bond Series B, (except those purchased through the
reinvestment of dividends and other distributions), such shares will
automatically convert to shares of Corporate Bond Series A, U.S. Government
Series A, Limited Maturity Bond Series A, or Global Aggressive Bond Series A
respectively, at the relative net asset values of each of the series without
the imposition of any sales load, fee or other charge. All shares in a
stockholder's account that were purchased through the reinvestment of
dividends and other distributions paid with respect to Series B shares will
be considered to be held in a separate sub-account. Each time Series B
shares are converted to Series A shares, a pro rata portion of the Series B
shares held in the sub-account will also convert to Series A shares.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 3rd day of February, 1995.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Connie Brungardt a Notary Public in and for
the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J. LEE,
Secretary, of Security Income Fund, a Kansas corporation, personally known to me
to be the persons who executed the foregoing instrument of writing as President
and Secretary, respectively, and duly acknowledged the execution, of the same
this 3rd day of February, 1995.
CONNIE BRUNGARDT
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: November 30, 1998
<PAGE>
CERTIFICATE OF DESIGNATIONS
OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 2nd day of February,
1996, adopted resolutions authorizing the corporation to issue an indefinite
number of shares of capital stock of each of the eight series of common stock of
the corporation. Resolutions were also adopted which reaffirmed the preferences,
rights, privileges and restrictions of separate series of stock of Security
Income Fund, which resolutions are provided in their entirety as follows:
WHEREAS, K.S.A. 17-6602 has been amended to allow the board of directors of a
corporation that is registered as an open-end investment company under the
Investment Company Act of 1940 (the "1940 Act") to approve, by resolution, an
amendment of the corporation's Articles of Incorporation, to allow the issuance
of an indefinite number of shares of the capital stock of the corporation;
WHEREAS, the corporation is registered as an open-end investment company under
the 1940 Act; and
WHEREAS, the Board of Directors desire to authorize the issuance of an
indefinite number of shares of capital stock of each of the eight series of
common stock of the corporation;
NOW THEREFORE BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to issue an indefinite number of $1.00 par value shares
of capital stock of each series of the corporation, which consist of U.S.
Government Series A, U.S. Government Series B, Corporate Bond Series A,
Corporate Bond Series B, Limited Maturity Bond Series A, Limited Maturity Bond
Series B, Global Aggressive Bond Series A, and Global Aggressive Bond Series B;
FURTHER RESOLVED, that, the preferences, rights, privileges and restrictions of
the shares of each of the corporation's series of common stock, as set forth in
the minutes of the February 3, 1995, meeting of this Board of Directors, are
hereby reaffirmed and incorporated by reference into the minutes of this
meeting; and
FURTHER RESOLVED, that, the appropriate officers of the corporation be, and they
hereby are, authorized and directed to take such action as may be necessary
under the laws of the State of Kansas or as they deem appropriate to cause the
foregoing resolutions to become effective.
The undersigned do hereby certify that the foregoing amendment to the
corporation's Articles of Incorporation has been duly adopted in accordance with
the provisions of K.S.A. 17-6602.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 2nd day of February, 1996.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, L. Charmaine Lucas, a Notary Public in and for
the aforesaid County and State, came John D. Cleland, President, and Amy J. Lee,
Secretary, of Security Income Fund, a Kansas corporation, personally known to me
to be the same persons who executed the foregoing instrument of writing and duly
acknowledged the execution of the same this 2nd day of February, 1996.
L. CHARMAINE LUCAS
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: April 1, 1998
<PAGE>
CERTIFICATE OF AMENDMENT TO THE
ARTICLES OF INCORPORATION
OF
SECURITY INCOME FUND
We, John D. Cleland, President , and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, do hereby certify that at a regular meeting of the Board of Directors of
said corporation, held on the 2nd day of February, 1996, the board adopted a
resolution setting forth the following amendment to the Articles of
Incorporation and declaring its advisability:
RESOLVED
The Board of Directors of Security Income Fund recommends that the Articles of
Incorporation be amended by deleting Article Fifth in its entirety and by
inserting, in lieu thereof, the following new Article:
FIFTH: The corporation shall have authority to issue an indefinite number of
shares of common stock, of the par value of one dollar ($1.00) per share. The
board of directors of the Corporation is expressly authorized to cause shares of
common stock of the Corporation authorized herein to be issued in one or more
series as may be established from time to time by setting or changing in one or
more respects the voting powers, rights, qualifications, limitations or
restrictions of such shares of stock and to increase or decrease the number of
shares so authorized to be issued in any such series.
We further certify that the amendment was duly adopted in accordance with the
provisions of K.S.A. 17-6602, as amended.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of said
corporation this 2nd day of February, 1996.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
BE IT REMEMBERED, that before me, L. Charmaine Lucas, a Notary Public in and for
the aforesaid county and state, personally appeared John D. Cleland, President,
and Amy J. Lee, Secretary, of Security Income Fund, who are known to me to be
the same persons who executed the foregoing certificate and duly acknowledged
the execution of the same this 2nd day of February, 1996.
L. CHARMAINE LUCAS
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: April 1, 1998
PLEASE SUBMIT THIS DOCUMENT IN DUPLICATE,
WITH $20 FILING FEE, TO:
Secretary of State
2nd Floor, State Capitol
Topeka, KS 66612-1594
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES AND CLASSES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
)ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 3rd day of May, 1996,
adopted resolutions (i) establishing two new series of common stock in addition
to those eight series of common stock currently being issued by the corporation,
and (ii) allocating the corporation's authorized capital stock among the ten
separate series of common stock of the corporation. Resolutions were also
adopted which for the two new series set forth and for the existing eight
reaffirmed the preferences, rights, privileges and restrictions of separate
series of stock of Security Income Fund, which resolutions are provided in their
entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of two new series
of common stock of Security Income Fund in addition to the eight separate series
of common stock presently issued by the fund designated as Corporate Bond Series
A, Corporate Bond Series B, U.S. Government Series A, U.S. Government Series B,
Limited Maturity Bond Series A, Limited Maturity Bond Series B, Global
Aggressive Bond Series A and Global Aggressive Bond Series B; and
WHEREAS, the Board of Directors desires to authorize the issuance of an
indefinite number of shares of capital stock of each of the ten series of common
stock of the corporation.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to establish two new series of the Security Income Fund
designated as High Yield Series A and High Yield Series B.
FURTHER RESOLVED, that, the officers of the corporation are hereby directed and
authorized to issue an indefinite number of $1.00 par value shares of capital
stock of each series of the corporation, which consist of Corporate Bond Series
A, Corporate Bond Series B, U.S. Government Series A, U.S. Government Series B,
Limited Maturity Bond Series A, Limited Maturity Bond Series B, Global
Aggressive Bond Series A, Global Aggressive Bond Series B, High Yield Series A
and High Yield Series B.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless of
series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall be
entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled to
as many votes as shall equal the number of shares of stock multiplied by the
number of directors to be elected, and he or she may cast all of such votes
for a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit. Notwithstanding
the foregoing, (i) if any matter is submitted to the stockholders which does
not affect the interests of all series, then only stockholders of the
affected series shall be entitled to vote and (ii) in the event the
Investment Company Act of 1940, as amended, or the rules and regulations
promulgated thereunder shall require a greater or different vote than would
otherwise be required herein or by the Articles of Incorporation of the
corporation, such greater or different voting requirement shall also be
satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset value
thereof, such redemption and the valuation and payment in connection
therewith to be made in compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as from time to time
amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of Limited Maturity Bond Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Global Aggressive Bond Series A and B
shall represent a stockholder interest in a particular fund of assets
held by the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of High Yield Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B, the U.S. Government Series
A and B, Limited Maturity Bond Series A and B, Global Aggressive Bond
Series A and B, and High Yield Series A and B, respectively, all
securities and other property held as a result of the investment and
reinvestment of such cash and other property, all revenues and income
received or receivable with respect to such cash, other property,
investments and reinvestments, and all proceeds derived from the sale,
exchange, liquidation or other disposition of any of the foregoing,
shall be allocated to the Corporate Bond Series A and B, U.S.
Government Series A and B, or Limited Maturity Bond Series A and B,
Global Aggressive Bond Series A and B, or High Yield Series A and B, to
which they relate and held for the benefit of the stockholders owning
shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and charged
to the series to which such loss, liability or expense relates. Where
any loss, liability or expense relates to more than one series, the
Board of Directors shall allocate the same between or among such series
pro rata based on the respective net asset values of such series or on
such other basis as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors out
of funds legally available therefor. Shares of Corporate Bond Series A and B
represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and B
represent a stockholder interest in a particular fund of assets held by the
corporation and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
shall be paid at the same dividend rate, except that expenses attributable
to a particular series and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected U.S.
Government Series. Stockholders of the U.S. Government Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Limited Maturity Bond
Series A and B represent a stockholder interest in a particular fund of
assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and will
be paid at the same dividend rate except that expenses attributable to
Limited Maturity Bond Series A or B and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the affected
Limited Maturity Bond Series. Stockholders of the Limited Maturity Bond
Series shall share in dividends declared and paid with respect to such
series pro rata based on their ownership of shares of such series. Shares of
Global Aggressive Bond Series A and B represent a stockholder interest in a
particular fund of assets and accordingly, dividends shall be calculated and
declared for these series in the same manner, at the same time, on the same
day, and will be paid at the same dividend rate except that expenses
attributable to Global Aggressive Bond Series A or B and payments made
pursuant to a 12b-1 Plan or Shareholder Services Plan shall be born
exclusively by the affected Global Aggressive Bond Series. Stockholders of
the Global Aggressive Bond Series A and B shall share in dividends declared
and paid with respect to such series pro rata based on their ownership of
shares of such series. Shares of High Yield Series A and B represent a
stockholder interest in a particular fund of assets and, accordingly,
dividends shall be calculated and declared for these series in the same
manner, at the same time, on the same day, and will be paid at the same
dividend rate except that expenses attributable to High Yield Series A or B
and payments made pursuant to a 12b-1 Plan or Shareholder Services Plan
shall be borne exclusively by the affected High Yield Series. Stockholders
of the High Yield Series shall share in dividends declared and paid with
respect to such series pro rata based on their ownership of shares of such
series. Whenever dividends are declared and paid with respect to the
Corporate Bond Series A and B, U.S. Government Series A and B, Limited
Maturity Bond Series A and B, Global Aggressive Bond Series A and B, or High
Yield Series A and B, the holders of shares of the other series shall have
no rights in or to such dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B, U.S. Government Series B, Limited Maturity Bond Series B, Global
Aggressive Bond Series B, or High Yield Series B, (except those purchased
through the reinvestment of dividends and other distributions), such shares
will automatically convert to shares of Corporate Bond Series A, U.S.
Government Series A, Limited Maturity Bond Series A, Global Aggressive Bond
Series A, or High Yield Series A, respectively, at the relative net asset
values of each of the series without the imposition of any sales load, fee
or other charge. All shares in a stockholder's account that were purchased
through the reinvestment of dividends and other distributions paid with
respect to Series B shares will be considered to be held in a separate
sub-account. Each time Series B shares are converted to Series A shares, a
pro rata portion of the Series B shares held in the sub-account will also
convert to Series A shares.
FURTHER RESOLVED, that, the appropriate officers of the corporation be, and they
hereby are, authorized and directed to take such action as may be necessary
under the laws of the State of Kansas or as they deem appropriate to cause the
foregoing resolutions to become effective.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 13th day of May, 1996.
JOHN D. CLELAND
-----------------------------------
John D. Cleland, President
AMY J. LEE
-----------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Jana R. Selley a Notary Public in and for the
County and State aforesaid, came JOHN D. CLELAND, President, and AMY J. LEE,
Secretary, of Security Income Fund, a Kansas corporation, personally known to me
to be the persons who executed the foregoing instrument of writing as President
and Secretary, respectively, and duly acknowledged the execution of the same
this 13th day of May, 1996.
JANA R. SELLEY
-----------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires: June 14, 1996
<PAGE>
CERTIFICATE CHANGING NAME OF
SERIES OF STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 7th day of February,
1997, adopted resolutions changing the name of Global Aggressive Bond Series A
and Global Aggressive Bond Series B, existing series of common stock of Security
Income Fund, which resolutions are provided in their entirety as follows:
WHEREAS, the Board of Directors has approved the change in name of an existing
series of common stock, from Global Aggressive Bond Series A and B to Global
High Yield Series A and B to more accurately reflect the investment objectives
of the series.
WHEREAS, there are no changes in the voting powers, designations, preferences
and relative, participating, optional or other rights, if any, or the
qualifications, limitations or restrictions of the series requiring stockholder
approval;
NOW, THEREFORE, BE IT RESOLVED, that, the name of Global Aggressive Bond Series
A and Global Aggressive Bond Series B of Security Income Fund is hereby changed
to Global High Yield Series A and Global High Yield Series B, respectively;
FURTHER RESOLVED, that, the appropriate officers of the corporation be, and they
hereby are, authorized and directed to take such action as may be necessary
under the laws of the State of Kansas or as they deem appropriate to cause the
foregoing resolutions to become effective.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 12th day of March, 1997.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, L. Charmaine Lucas, a Notary Public in and for
the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J. LEE,
Secretary, of the Security Income Fund, a Kansas corporation, personally known
to me to be the persons who executed the foregoing instrument of writing as
President and Secretary, respectively, and duly acknowledged the execution of
the same this 12th day of March, 1997.
L. CHARMAINE LUCAS
------------------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires April 1, 1998
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 7th day of February,
1997, adopted resolutions (i) establishing four new series of common stock in
addition to those ten series of common stock currently being issued by the
corporation, and (ii) allocating the corporation's authorized capital stock
among the fourteen separate series of common stock of the corporation.
Resolutions were also adopted, which for the four new series set forth and for
the existing ten reaffirmed the preferences, rights, privileges and restrictions
of separate series of stock of Security Income Fund, which resolutions are
provided in their entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of four new
series of common stock of Security Income Fund in addition to the ten separate
series of common stock presently issued by the fund designated as Corporate Bond
Series A, Corporate Bond Series B, U.S. Government Series A, U.S. Government
Series B, Limited Maturity Bond Series A, Limited Maturity Bond Series B, Global
Aggressive Bond Series A, Global Aggressive Bond Series B, High Yield Series A
and High Yield Series B; and
WHEREAS, the Board of Directors desires to authorize the issuance of an
indefinite number of shares of capital stock of each of the fourteen series of
common stock of the corporation.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to establish four new series of Security Income Fund
designated as Emerging Markets Total Return Series A, Emerging Markets Total
Return Series B, Global Asset Allocation Series A and Global Asset Allocation
Series B.
FURTHER RESOLVED, that, the officers of the corporation are hereby directed and
authorized to issue an indefinite number of $1.00 par value shares of capital
stock of each series of the corporation, which consist of Corporate Bond Series
A, Corporate Bond Series B, U.S. Government Series A, U.S. Government Series B,
Limited Maturity Bond Series A, Limited Maturity Bond Series B, Global
Aggressive Bond Series A, Global Aggressive Bond Series B, High Yield Series A,
High Yield Series B, Emerging Markets Total Return Series A, Emerging Markets
Total Return Series B, Global Asset Allocation Series A and Global Asset
Allocation Series B.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless
of series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall
be entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled
to as many votes as shall equal the number of shares of stock multiplied by
the number of directors to be elected, and he or she may cast all of such
votes for a single director or may distribute them among the number to be
voted for, or any two or more of them as he or she may see fit.
Notwithstanding the foregoing, (i) if any matter is submitted to the
stockholders which does not affect the interests of all series, then only
stockholders of the affected series shall be entitled to vote and (ii) in
the event the Investment Company Act of 1940, as amended, or the rules and
regulations promulgated thereunder shall require a greater or different
vote than would otherwise be required herein or by the Articles of
Incorporation of the corporation, such greater or different voting
requirement shall also be satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset
value thereof, such redemption and the valuation and payment in
connection therewith to be made in compliance with the provisions of
the Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Rules of Fair Practice of the
National Association of Securities Dealers, Inc., as from time to time
amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of Limited Maturity Bond Series A and B shall
represent a stockholder interest in a particular fund of assets held
by the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Global Aggressive Bond Series A and B
shall represent a stockholder interest in a particular fund of assets
held by the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of High Yield Series A and B shall
represent a stockholder interest in a particular fund of assets held
by the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Emerging Markets Total Return Series
A and B shall represent a stockholder interest in a particular fund of
assets held by the corporation which fund shall be invested and
reinvested in accordance with policies and objectives established by
the Board of Directors. Outstanding shares of Global Asset Allocation
Series A and B shall represent a stockholder interest in a particular
fund of assets held by the corporation which fund shall be invested
and reinvested in accordance with policies and objectives established
by the Board of Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B, U.S. Government Series A
and B, Limited Maturity Bond Series A and B, Global Aggressive Bond
Series A and B, High Yield Series A and B, Emerging Markets Total
Return Series A and B, and Global Asset Allocation Series A and B,
respectively, all securities and other property held as a result of
the investment and reinvestment of such cash and other property, all
revenues and income received or receivable with respect to such cash,
other property, investments and reinvestments, and all proceeds
derived from the sale, exchange, liquidation or other disposition of
any of the foregoing, shall be allocated to the Corporate Bond Series
A and B, U.S. Government Series A and B, Limited Maturity Bond Series
A and B, Global Aggressive Bond Series A and B, High Yield Series A
and B, Emerging Markets Total Return Series A and B, or Global Asset
Allocation Series A and B, to which they relate and held for the
benefit of the stockholders owning shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and
charged to the series to which such loss, liability or expense
relates. Where any loss, liability or expense relates to more than one
series, the Board of Directors shall allocate the same between or
among such series pro rata based on the respective net asset values of
such series or on such other basis as the Board of Directors deems
appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors
out of funds legally available therefor. Shares of Corporate Bond Series A
and B represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and
B represent a stockholder interest in a particular fund of assets held by
the corporation and, accordingly, dividends shall be calculated and
declared for these series in the same manner, at the same time, on the same
day, and shall be paid at the same dividend rate, except that expenses
attributable to a particular series and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the
affected U.S. Government Series. Stockholders of the U.S. Government Series
shall share in dividends declared and paid with respect to such series pro
rata based on their ownership of shares of such series. Shares of Limited
Maturity Bond Series A and B represent a stockholder interest in a
particular fund of assets and, accordingly, dividends shall be calculated
and declared for these series in the same manner, at the same time, on the
same day, and will be paid at the same dividend rate except that expenses
attributable to Limited Maturity Bond Series A or B and payments made
pursuant to a 12b-1 Plan or Shareholder Services Plan shall be borne
exclusively by the affected Limited Maturity Bond Series. Stockholders of
the Limited Maturity Bond Series shall share in dividends declared and paid
with respect to such series pro rata based on their ownership of shares of
such series. Shares of Global Aggressive Bond Series A and B represent a
stockholder interest in a particular fund of assets and, accordingly,
dividends shall be calculated and declared for these series in the same
manner, at the same time, on the same day, and will be paid at the same
dividend rate except that expenses attributable to Global Aggressive Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Global Aggressive
Bond Series. Stockholders of the Global Aggressive Bond Series A and B
shall share in dividends declared and paid with respect to such series pro
rata based on their ownership of shares of such series. Shares of High
Yield Series A and B represent a stockholder interest in a particular fund
of assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
will be paid at the same dividend rate except that expenses attributable to
High Yield Series A or B and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected High
Yield Series. Stockholders of the High Yield Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Emerging Markets Total
Return Series A and B represent a stockholder interest in a particular fund
of assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
will be paid at the same dividend rate except that expenses attributable to
Emerging Markets Total Return Series A or B and payments made pursuant to a
12b-1 Plan or Shareholder Services Plan shall be borne exclusively by the
affected Emerging Markets Total Return Series. Stockholders of the Emerging
Markets Total Return Series shall share in dividends declared and paid with
respect to such series pro rata based on their ownership of shares of such
series. Shares of Global Asset Allocation Series A and B represent a
stockholder interest in a particular fund of assets and, accordingly,
dividends shall be calculated and declared for these series in the same
manner, at the same time, on the same day, and will be paid at the same
dividend rate except that expenses attributable to Global Asset Allocation
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Global Asset
Allocation Series. Stockholders of the Global Asset Allocation Series shall
share in dividends declared and paid with respect to such series pro rata
based on their ownership of shares of such series. Whenever dividends are
declared and paid with respect to the Corporate Bond Series A and B, U.S.
Government Series A and B, Limited Maturity Bond Series A and B, Global
Aggressive Bond Series A and B, High Yield Series A and B, Emerging Markets
Total Return Series A and B, or Global Asset Allocation Series A and B, the
holders of shares of the other series shall have no rights in or to such
dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B, U.S. Government Series B, Limited Maturity Bond Series B, Global
Aggressive Bond Series B, High Yield Series B, Emerging Markets Total
Return Series B, or Global Asset Allocation Series B, (except those
purchased through the reinvestment of dividends and other distributions),
such shares will automatically convert to shares of Corporate Bond Series
A, U.S. Government Series A, Limited Maturity Bond Series A, Global
Aggressive Bond Series A, High Yield Series A, Emerging Markets Total
Return Series A, or Global Asset Allocation Series A, respectively, at the
relative net asset values of each of the series without the imposition of
any sales load, fee or other charge. All shares in a stockholder's account
that were purchased through the reinvestment of dividends and other
distributions paid with respect to Series B shares will be considered to be
held in a separate sub-account. Each time Series B shares are converted to
Series A shares, a pro rata portion of the Series B shares held in the
sub-account will also convert to Series A shares.
FURTHER RESOLVED, that, the appropriate officers of the corporation be, and they
hereby are, authorized and directed to take such action as may be necessary
under the laws of the State of Kansas or as they deem appropriate to cause the
foregoing resolutions to become effective.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 12th day of March, 1997.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, L. Charmaine Lucas, a Notary Public in and for
the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J. LEE,
Secretary, of the Security Income Fund, a Kansas corporation, personally known
to me to be the persons who executed the foregoing instrument of writing as
President and Secretary, respectively, and duly acknowledged the execution of
the same this 12th day of March, 1997.
L. CHARMAINE LUCAS
------------------------------------------
Notary Public
(NOTARIAL SEAL)
My commission expires April 1, 1998
<PAGE>
CERTIFICATE OF DESIGNATION
OF SERIES AND CLASSES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 10th day of February,
1999, adopted resolutions (i) establishing three new series of common stock in
addition to those fourteen series of common stock currently being issued by the
corporation, and (ii) allocating the corporation's authorized capital stock
among the seventeen separate series of common stock of the corporation.
Resolutions were also adopted, which for the three new series set forth and for
the existing fourteen reaffirmed the preferences, rights, privileges and
restrictions of separate series of stock of Security Income Fund, which
resolutions are provided in their entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of three new
series of common stock of Security Income Fund in addition to the fourteen
separate series of common stock presently issued by the fund designated as
Corporate Bond Series A, Corporate Bond Series B, U.S. Government Series A, U.S.
Government Series B, Limited Maturity Bond Series A, Limited Maturity Bond
Series B, Global High Yield Series A, Global High Yield Series B, High Yield
Series A, High Yield Series B, Emerging Markets Total Return Series A, Emerging
Markets Total Return Series B, Global Asset Allocation Series A and Global Asset
Allocation Series B; and
WHEREAS, the Board of Directors desires to authorize the issuance of an
indefinite number of shares of capital stock of each of the seventeen series of
common stock of the corporation.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are hereby
directed and authorized to establish three new series of Security Income Fund
designated as Capital Preservation Series A, Capital Preservation Series B and
Capital Preservation Series C.
FURTHER RESOLVED, that, the officers of the corporation are hereby directed and
authorized to issue an indefinite number of $1.00 par value shares of capital
stock of each series of the corporation, which consist of Corporate Bond Series
A, Corporate Bond Series B, Corporate Bond Series C, U.S. Government Series A,
U.S. Government Series B, Limited Maturity Bond Series A, Limited Maturity Bond
Series B, Global High Yield Series A, Global High Yield Series B, High Yield
Series A, High Yield Series B, Emerging Markets Total Return Series A, Emerging
Markets Total Return Series B, Global Asset Allocation Series A, Global Asset
Allocation Series B, Capital Preservation Series A, Capital Preservation Series
B and Capital Preservation Series C.
FURTHER RESOLVED, that the preferences, rights, privileges and restrictions of
the shares of each series of Security Income Fund shall be as follows:
1. Except as set forth below and as may be hereafter established by the Board
of Directors of the corporation all shares of the corporation, regardless of
series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation shall be
entitled to one vote in person or by proxy on each matter submitted to a
vote at such meeting for each share of common stock standing in his or her
name on the books of the corporation on the date, fixed in accordance with
the bylaws, for determination of stockholders entitled to vote at such
meeting. At all elections of directors each stockholder shall be entitled to
as many votes as shall equal the number of shares of stock multiplied by the
number of directors to be elected, and he or she may cast all of such votes
for a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit. Notwithstanding
the foregoing, (i) if any matter is submitted to the stockholders which does
not affect the interests of all series, then only stockholders of the
affected series shall be entitled to vote and (ii) in the event the
Investment Company Act of 1940, as amended, or the rules and regulations
promulgated thereunder shall require a greater or different vote than would
otherwise be required herein or by the Articles of Incorporation of the
corporation, such greater or different voting requirement shall also be
satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation on
any date after the issue date of any such shares at the net asset value
thereof, such redemption and the valuation and payment in connection
therewith to be made in compliance with the provisions of the
Investment Company Act of 1940 and the Rules and Regulations
promulgated thereunder and with the Conduct Rules of the National
Association of Securities Dealers, Inc., as from time to time amended.
(b) From and after the close of business on the day when the shares are
properly tendered for repurchase the owner shall, with respect of said
shares, cease to be a stockholder of the corporation and shall have
only the right to receive the repurchase price in accordance with the
provisions hereof. The shares so repurchased may, as the Board of
Directors determines, be held in the treasury of the Corporation and
may be resold, or, if the laws of Kansas shall permit, may be retired.
Repurchase of shares is conditional upon the corporation having funds
or property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully paid,
nonassessable and redeemable. Within the respective series of the
corporation, all shares have equal voting, participation and liquidation
rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of Corporate Bond Series A, and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of U.S. Government Series A and B shall represent a
stockholder interest in a particular fund of assets held by the
corporation which fund shall be invested and reinvested in accordance
with policies and objectives established by the Board of Directors.
Outstanding shares of Limited Maturity Bond Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Global High Yield Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of High Yield Series A and B shall
represent a stockholder interest in a particular fund of assets held by
the corporation which fund shall be invested and reinvested in
accordance with policies and objectives established by the Board of
Directors. Outstanding shares of Emerging Markets Total Return Series A
and B shall represent a stockholder interest in a particular fund of
assets held by the corporation which fund shall be invested and
reinvested in accordance with policies and objectives established by
the Board of Directors. Outstanding shares of Global Asset Allocation
Series A and B shall represent a stockholder interest in a particular
fund of assets held by the corporation which fund shall be invested and
reinvested in accordance with policies and objectives established by
the Board of Directors. Outstanding shares of Capital Preservation
Series A, B and C shall represent a stockholder interest in a
particular fund of assets held by the corporation which fund shall be
invested and reinvested in accordance with policies and objectives
established by the Board of Directors.
(b) All cash and other property received by the corporation from the sale
of shares of Corporate Bond Series A and B, U.S. Government Series A
and B, Limited Maturity Bond Series A and B, Global High Yield Series A
and B, High Yield Series A and B, Emerging Markets Total Return Series
A and B, Global Asset Allocation Series A and B and Capital
Preservation Series A, B and C respectively, all securities and other
property held as a result of the investment and reinvestment of such
cash and other property, all revenues and income received or receivable
with respect to such cash, other property, investments and
reinvestments, and all proceeds derived from the sale, exchange,
liquidation or other disposition of any of the foregoing, shall be
allocated to the Corporate Bond Series A and B, U.S. Government Series
A and B, Limited Maturity Bond Series A and B, Global High Yield Series
A and B, High Yield Series A and B, Emerging Markets Total Return
Series A and B, Global Asset Allocation Series A and B, or Capital
Preservation Series A, B and C to which they relate and held for the
benefit of the stockholders owning shares of such series.
(c) All losses, liabilities and expenses of the corporation (including
accrued liabilities and expenses and such reserves as the Board of
Directors may determine are appropriate) shall be allocated and charged
to the series to which such loss, liability or expense relates. Where
any loss, liability or expense relates to more than one series, the
Board of Directors shall allocate the same between or among such series
pro rata based on the respective net asset values of such series or on
such other basis as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the corporation.
6. Each share of stock of a series shall have the same preferences, rights,
privileges and restrictions as each other share of stock of that series.
Each fractional share of stock of a series proportionately shall have the
same preferences, rights, privileges and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of Directors out
of funds legally available therefor. Shares of Corporate Bond Series A and B
represent a stockholder interest in a particular fund of assets and,
accordingly, dividends shall be calculated and declared for these series in
the same manner, at the same time, on the same day, and will be paid at the
same dividend rate except that expenses attributable to Corporate Bond
Series A or B and payments made pursuant to a 12b-1 Plan or Shareholder
Services Plan shall be borne exclusively by the affected Corporate Bond
Series. Stockholders of the Corporate Bond Series shall share in dividends
declared and paid with respect to such series pro rata based on their
ownership of shares of such series. Shares of U.S. Government Series A and B
represent a stockholder interest in a particular fund of assets held by the
corporation and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and
shall be paid at the same dividend rate, except that expenses attributable
to a particular series and payments made pursuant to a 12b-1 Plan or
Shareholder Services Plan shall be borne exclusively by the affected U.S.
Government Series. Stockholders of the U.S. Government Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Limited Maturity Bond
Series A and B represent a stockholder interest in a particular fund of
assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and will
be paid at the same dividend rate except that expenses attributable to
Limited Maturity Bond Series A or B and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the affected
Limited Maturity Bond Series. Stockholders of the Limited Maturity Bond
Series shall share in dividends declared and paid with respect to such
series pro rata based on their ownership of shares of such series. Shares of
Global High Yield Series A and B represent a stockholder interest in a
particular fund of assets and, accordingly, dividends shall be calculated
and declared for these series in the same manner, at the same time, on the
same day, and will be paid at the same dividend rate except that expenses
attributable to Global High Yield Series A or B and payments made pursuant
to a 12b-1 Plan or Shareholder Services Plan shall be borne exclusively by
the affected Global High Yield Series. Stockholders of the Global High Yield
Series A and B shall share in dividends declared and paid with respect to
such series pro rata based on their ownership of shares of such series.
Shares of High Yield Series A and B represent a stockholder interest in a
particular fund of assets and, accordingly, dividends shall be calculated
and declared for these series in the same manner, at the same time, on the
same day, and will be paid at the same dividend rate except that expenses
attributable to High Yield Series A or B and payments made pursuant to a
12b-1 Plan or Shareholder Services Plan shall be borne exclusively by the
affected High Yield Series. Stockholders of the High Yield Series shall
share in dividends declared and paid with respect to such series pro rata
based on their ownership of shares of such series. Shares of Emerging
Markets Total Return Series A and B represent a stockholder interest in a
particular fund of assets and, accordingly, dividends shall be calculated
and declared for these series in the same manner, at the same time, on the
same day, and will be paid at the same dividend rate except that expenses
attributable to Emerging Markets Total Return Series A or B and payments
made pursuant to a 12b-1 Plan or Shareholder Services Plan shall be borne
exclusively by the affected Emerging Markets Total Return Series.
Stockholders of the Emerging Markets Total Return Series shall share in
dividends declared and paid with respect to such series pro rata based on
their ownership of shares of such series. Shares of Global Asset Allocation
Series A and B represent a stockholder interest in a particular fund of
assets and, accordingly, dividends shall be calculated and declared for
these series in the same manner, at the same time, on the same day, and will
be paid at the same dividend rate except that expenses attributable to
Global Asset Allocation Series A or B and payments made pursuant to a 12b-1
Plan or Shareholder Services Plan shall be borne exclusively by the affected
Global Asset Allocation Series. Stockholders of the Global Asset Allocation
Series shall share in dividends declared and paid with respect to such
series pro rata based on their ownership of shares of such series. Shares of
Capital Preservation Series A, B and C represent a stockholder interest in a
particular fund of assets and, accordingly, dividends shall be calculated
and declared for these series in the same manner, at the same time, on the
same day, and will be paid at the same dividend rate except that expenses
attributable to Capital Preservation Series A, B or C and payments made
pursuant to a 12b-1 Plan or Shareholder Services Plan shall be borne
exclusively by the affected Capital Preservation Series. Stockholders of the
Capital Preservation Series shall share in dividends declared and paid with
respect to such series pro rata based on their ownership of shares of such
series. Whenever dividends are declared and paid with respect to the
Corporate Bond Series A and B, U.S. Government Series A and B, Limited
Maturity Bond Series A and B, Global High Yield Series A and B, High Yield
Series A and B, Emerging Markets Total Return Series A and B, Global Asset
Allocation Series A and B, or Capital Preservation Series A, B and C the
holders of shares of the other series shall have no rights in or to such
dividends.
8. In the event of liquidation, stockholders of each series shall be entitled
to share in the assets of the corporation that are allocated to such series
and that are available for distribution to the stockholders of such series.
Liquidating distributions shall be made to the stockholders of each series
pro rata based on their share ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Corporate Bond
Series B, U.S. Government Series B, Limited Maturity Bond Series B, Global
High Yield Series B, High Yield Series B, Emerging Markets Total Return
Series B, Global Asset Allocation Series B, or Capital Preservation Series B
(except those purchased through the reinvestment of dividends and other
distributions), such shares will automatically convert to shares of
Corporate Bond Series A, U.S. Government Series A, Limited Maturity Bond
Series A, Global High Yield Series A, High Yield Series A, Emerging Markets
Total Return Series A, Global Asset Allocation Series A, or Capital
Preservation Series A, respectively, at the relative net asset values of
each of the series without the imposition of any sales load, fee or other
charge. All shares in a stockholder's account that were purchased through
the reinvestment of dividends and other distributions paid with respect to
Series B shares will be considered to be held in a separate sub-account.
Each time Series B shares are converted to Series A shares, a pro rata
portion of the Series B shares held in the sub-account will also convert to
Series A shares.
FURTHER RESOLVED, that, the appropriate officers of the corporation be, and they
hereby are, authorized and directed to take such action as may be necessary
under the laws of the State of Kansas or as they deem appropriate to cause the
foregoing resolutions to become effective.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 22nd day of April, 1999.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Annette E. Cripps, a Notary Public in and
for the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J.
LEE, Secretary, of the Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 22nd day of April, 1999.
ANNETTE E. CRIPPS
------------------------------------------
Notary Public
My commission expires 7-8-2001.
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
OF GLOBAL HIGH YIELD SERIES
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, file this Amended Certificate
of Designation in accordance with Section 17-6401 of the Kansas Statutes
Annotated and do hereby declare the following:
WHEREAS, the Board of Directors of Security Income Fund approved the liquidation
and dissolution of the Global High Yield Series A and B of the Fund pursuant to
the Plan of Liquidation and Dissolution for the Series; and
WHEREAS, the Plan of Liquidation and Dissolution was approved by the vote of the
holders of a majority of outstanding voting securities of Global High Yield
Series A and B of Security Income Fund at the Fund's special meeting of
stockholders held on April 26, 1999; and
WHEREAS, the assets of the Global High Yield Series A and Global High Yield
Series B of the Security Income Fund were liquidated on May 6, 1999; and
WHEREAS, a pro rata share of the liquidation proceeds was sent to each
shareholder of record of the Series as of the date of liquidation;
NOW, THEREFORE, BE IT RESOLVED, that, there are no shares outstanding of Global
High Yield Series A or Global High Yield Series B and no shares of the Series
will be issued.
FURTHER RESOLVED, that the officers of the Fund are hereby authorized to file an
Amended Certificate of Designation pursuant to K.S.A. 17-6401 in order to
eliminate Global High Yield Series A and Global High Yield Series B from
Security Income Fund's Articles of Incorporation.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 6th day of May, 1999.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Annette E. Cripps, a Notary Public in and
for the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J.
LEE, Secretary, of the Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 6th day of May, 1999.
ANNETTE E. CRIPPS
------------------------------------------
Notary Public
My commission expires 7-8-2001.
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
OF EMERGING MARKETS TOTAL RETURN SERIES
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary, of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, file this Amended Certificate
of Designation in accordance with Section 17-6401 of the Kansas Statutes
Annotated and do hereby declare the following:
WHEREAS, the Board of Directors of Security Income Fund approved the liquidation
and dissolution of the Emerging Markets Total Return Series A and B of the Fund
pursuant to the Plan of Liquidation and Dissolution for the Series; and
WHEREAS, the Plan of Liquidation and Dissolution was approved by the vote of the
holders of a majority of outstanding voting securities of Emerging Markets Total
Return Series A and B of Security Income Fund at the Fund's special meeting of
stockholders held on April 26, 1999; and
WHEREAS, substantially all of the assets of the Emerging Markets Total Return
Series A and Series B of the Security Income Fund were distributed ratably to
shareholders of record as of May 6, 1999; and
WHEREAS, all remaining assets of the Emerging Markets Total Return Series A and
Series B of the Security Income Fund were distributed ratably to each
shareholder of record of the Series as of the date of liquidation, September 2,
1999;
NOW, THEREFORE, BE IT RESOLVED, that, there are no shares outstanding of
Emerging Markets Total Return Series A or Emerging Markets Total Return Series B
and no shares of the Series will be issued.
FURTHER RESOLVED, that the officers of the Fund are hereby authorized to file an
Amended Certificate of Designation pursuant to K.S.A. 17-6401 in order to
eliminate Emerging Markets Total Return Series A and Emerging Markets Total
Return Series B from Security Income Fund's Articles of Incorporation.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 13th day of September, 1999.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Annette E. Cripps, a Notary Public in and
for the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J.
LEE, Secretary, of the Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 13th day of September, 1999.
ANNETTE E. CRIPPS
------------------------------------------
Notary Public
My commission expires 7-8-2001.
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
OF GLOBAL ASSET ALLOCATION SERIES
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, John D. Cleland, President, and Amy J. Lee, Secretary, of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, file this Amended Certificate
of Designation in accordance with Section 17-6401 of the Kansas Statutes
Annotated and do hereby declare the following:
WHEREAS, the Board of Directors of Security Income Fund approved the liquidation
and dissolution of the Global Asset Allocation Series A and B of the Fund
pursuant to the Plan of Liquidation and Dissolution for the Series; and
WHEREAS, the Plan of Liquidation and Dissolution was approved by the vote of the
holders of a majority of outstanding voting securities of Global Asset
Allocation Series A and B of Security Income Fund at the Fund's special meeting
of stockholders held on April 26, 1999; and
WHEREAS, substantially all of the assets of the Global Asset Allocation Series A
and Series B of the Security Income Fund were distributed ratably to
shareholders of record as of May 6, 1999; and
WHEREAS, all remaining assets of the Global Asset Allocation Series A and Series
B were distributed ratably to each shareholder of record of the Series as of the
date of liquidation, September 2, 1999;
NOW, THEREFORE, BE IT RESOLVED, that, there are no shares outstanding of Global
Asset Allocation Series A or Global Asset Allocation Series B and no shares of
the Series will be issued.
FURTHER RESOLVED, that the officers of the Fund are hereby authorized to file an
Amended Certificate of Designation pursuant to K.S.A. 17-6401 in order to
eliminate Global Asset Allocation Series A and Global Asset Allocation Series B
from Security Income Fund's Articles of Incorporation.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 13th day of September, 1999.
JOHN D. CLELAND
------------------------------------------
John D. Cleland, President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me, Annette E. Cripps, a Notary Public in and
for the County and State aforesaid, came JOHN D. CLELAND, President, and AMY J.
LEE, Secretary, of the Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 13th day of September, 1999.
ANNETTE E. CRIPPS
------------------------------------------
Notary Public
My commission expires 7-8-2001.
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
CHANGING NAME OF
SERIES OF STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, James R. Schmank, Vice President, and Amy J. Lee, Secretary, of Security
Income Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 4th day of February,
2000, adopted resolutions changing the name of U.S. Government Series A and U.S.
Government Series B, existing series of common stock of Security Income Fund,
which resolutions are provided in their entirety as follows:
WHEREAS, the Board of Directors has approved the change in name of the
series of common stock, from U. S. Government Series A and B to
Diversified Income Series A and B to more accurately reflect the
investment policies of the Series;
WHEREAS, there are no changes in the voting powers, designations,
preferences and relative, participating, optional or other rights, if any,
or the qualifications, limitations or restrictions of the series requiring
stockholder approval;
NOW, THEREFORE, BE IT RESOLVED, that, the name of U. S. Government Series
A and U. S. Government Series B of Security Income Fund is hereby changed
to Diversified Income Series A and Diversified Income Series B;
FURTHER RESOLVED, that, the appropriate officers of the corporation be,
and they hereby are, authorized and directed to take such action as may be
necessary under the laws of the State of Kansas or as they deem
appropriate to cause the foregoing resolutions to become effective,
including but not limited to filing with the Kansas Secretary of State's
Office the corporation's amended certificate of designation.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 28th day of February, 2000.
JAMES R. SCHMANK
------------------------------------------
James R. Schmank, Vice President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me Marcia J. Johnson, a Notary Public in and for
the County and State aforesaid, came James R. Schmank, Vice President, and Amy
J. Lee, Secretary, of Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 28th day of February, 2000.
MARCIA J. JOHNSON
------------------------------------------
Notary Public
My commission expires: March 23, 2001
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, James R. Schmank, Vice President, and Amy J. Lee, Secretary, of Security
Income Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 4th day of February,
2000, adopted resolutions establishing two new series of common stock in
addition to those series of common stock currently being issued by the
corporation. Resolutions were also adopted which reaffirmed the preferences,
rights, privileges and restrictions of the separate series of stock of Security
Income Fund, which resolutions are provided in their entirety as follows:
RESOLVED, that the officers of Security Income Fund are hereby directed
and authorized to establish two new series of the Security Income Fund
designated as Diversified Income Series C and High Yield Series C.
FURTHER RESOLVED, that, the officers of Security Income Fund are hereby
directed and authorized to issue an indefinite number of $1.00 par value
shares of capital stock of each new series of the corporation, which
consist of Diversified Income Series C and High Yield Series C.
FURTHER RESOLVED, that the preferences, rights, privileges and
restrictions of the shares of each of the series of Security Income Fund
shall be as set forth in the resolution adopted by the Board of Directors
of Security Income Fund on February 10, 1999, which resolution is hereby
incorporated by reference.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 1st day of May, 2000.
JAMES R. SCHMANK
------------------------------------------
James R. Schmank, Vice President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me Marcia J. Johnson, a Notary Public in and for
the County and State aforesaid, came James R. Schmank, Vice President, and Amy
J. Lee, Secretary, of Security Income Fund, a Kansas corporation, personally
known to me to be the persons who executed the foregoing instrument of writing
as President and Secretary, respectively, and duly acknowledged the execution of
the same this 1st day of May, 2000.
MARCIA J. JOHNSON
------------------------------------------
Notary Public
My commission expires: March 23, 2001
<PAGE>
AMENDED CERTIFICATE OF DESIGNATION
OF SERIES OF COMMON STOCK
OF
SECURITY INCOME FUND
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
We, James R. Schmank, President, and Amy J. Lee, Secretary, of Security Income
Fund, a corporation organized and existing under the laws of the State of
Kansas, and whose registered office is Security Benefit Life Building, 700
Harrison Street, Topeka, Shawnee County, Kansas, do hereby certify that pursuant
to authority expressly vested in the Board of Directors by the provisions of the
corporation's Articles of Incorporation, the Board of Directors of said
corporation at a meeting duly convened and held on the 21st day of July, 2000,
adopted resolutions establishing three new series of common stock in addition to
those series of common stock currently being issued by the corporation.
Resolutions were also adopted which reaffirmed the preferences, rights,
privileges and restrictions of the separate series of stock of Security Income
Fund, which resolutions are provided in their entirety as follows:
WHEREAS, the Board of Directors has approved the establishment of three
new series of common stock of Security Income Fund in addition to the
separate series of common stock presently issued by the corporation;
WHEREAS, Security Income Fund presently issues its shares in the following
Series: Diversified Income Series A, B, C and S ("Diversified Income
Fund"), High Yield Series A, B, C and S ("High Yield Fund"), and Capital
Preservation Series A, B, C and S ("Capital Preservation Fund"), (each
referred to herein as a "Fund" and collectively the "Funds"); and
WHEREAS, the Board of Directors desires to authorize the issuance of an
indefinite number of shares of capital stock of each of the new series of
common stock of the corporation.
NOW, THEREFORE, BE IT RESOLVED, that, the officers of the corporation are
hereby directed and authorized to establish three new series of the
Security Income Fund designated as Diversified Income Series S, High Yield
Series S, and Capital Preservation Series S.
FURTHER RESOLVED, that, the officers of the corporation are hereby
directed and authorized to issue an indefinite number of $1.00 par value
shares of capital stock of each new series of the corporation.
FURTHER RESOLVED, that the preferences, rights, privileges and
restrictions of the shares of each series of Security Income Fund shall be
as follows:
1. Except as set forth below and as may be hereafter established by the
Board of Directors of the corporation all shares of the corporation,
regardless of series, shall be equal.
2. At all meetings of stockholders each stockholder of the corporation
shall be entitled to one vote in person or by proxy on each matter
submitted to a vote at such meeting for each share of common stock
standing in his or her name on the books of the corporation on the
date, fixed in accordance with the bylaws, for determination of
stockholders entitled to vote at such meeting. At all elections of
directors each stockholder shall be entitled to as many votes as shall
equal the number of shares of stock multiplied by the number of
directors to be elected, and he or she may cast all of such votes for
a single director or may distribute them among the number to be voted
for, or any two or more of them as he or she may see fit.
Notwithstanding the foregoing, (i) if any matter is submitted to the
stockholders which does not affect the interests of all series, then
only stockholders of the affected series shall be entitled to vote and
(ii) in the event the Investment Company Act of 1940, as amended, or
the rules and regulations promulgated thereunder shall require a
greater or different vote than would otherwise be required herein or
by the Articles of Incorporation of the corporation, such greater or
different voting requirement shall also be satisfied.
3. (a) The corporation shall redeem any of its shares for which it has
received payment in full that may be presented to the corporation
on any date after the issue date of any such shares at the net
asset value thereof, such redemption and the valuation and
payment in connection therewith to be made in compliance with the
provisions of the Investment Company Act of 1940 and the Rules
and Regulations promulgated thereunder and with the Conduct Rules
of the National Association of Securities Dealers, Inc., as from
time to time amended.
(b) From and after the close of business on the day when the shares
are properly tendered for repurchase the owner shall, with
respect of said shares, cease to be a stockholder of the
corporation and shall have only the right to receive the
repurchase price in accordance with the provisions hereof. The
shares so repurchased may, as the Board of Directors determines,
be held in the treasury of the Corporation and may be resold, or,
if the laws of Kansas shall permit, may be retired. Repurchase of
shares is conditional upon the corporation having funds or
property legally available therefor.
4. All shares of the corporation, upon issuance and sale, shall be fully
paid, nonassessable and redeemable. Within the respective series of
the corporation, all shares have equal voting, participation and
liquidation rights, but have no subscription or preemptive rights.
5. (a) Outstanding shares of each Fund shall represent a stockholder
interest in a particular fund of assets held by the corporation
which fund shall be invested and reinvested in accordance with
policies and objectives established by the Board of Directors.
(b) All cash and other property received by the corporation from the
sale of shares of a Fund, all securities and other property held
as a result of the investment and reinvestment of such cash and
other property, all revenues and income received or receivable
with respect to such cash, other property, investments and
reinvestments, and all proceeds derived from the sale, exchange,
liquidation or other disposition of any of the foregoing, shall
be allocated to the Fund, to which they relate and held for the
benefit of the stockholders owning shares of such Fund.
(c) All losses, liabilities and expenses of the corporation
(including accrued liabilities and expenses and such reserves as
the Board of Directors may determine are appropriate) shall be
allocated and charged to the series to which such loss, liability
or expense relates. Where any loss, liability or expense relates
to more than one series, the Board of Directors shall allocate
the same between or among such series pro rata based on the
respective net asset values of such series or on such other basis
as the Board of Directors deems appropriate.
(d) All allocations made hereunder by the Board of Directors shall be
conclusive and binding upon all stockholders and upon the
corporation.
6. Each share of stock of a series shall have the same preferences,
rights, privileges and restrictions as each other share of stock of
that series. Each fractional share of stock of a series
proportionately shall have the same preferences, rights, privileges
and restrictions as a whole share.
7. Dividends may be paid when, as and if declared by the Board of
Directors out of funds legally available therefor. Shares of a Fund
represent a stockholder interest in a particular fund of assets held
by the corporation and, accordingly, dividends shall be calculated and
declared for each series of that Fund in the same manner, at the same
time, on the same day, and will be paid at the same dividend rate
except that expenses attributable to a particular series and payments
made pursuant to a 12b-1 Plan or Shareholder Services Plan shall be
borne exclusively by the affected series. Stockholders of each Fund
shall share in dividends declared and paid with respect to such Fund
pro rata based on their ownership of shares of such Fund.
8. In the event of liquidation, stockholders of each series shall be
entitled to share in the assets of the corporation that are allocated
to such series and that are available for distribution to the
stockholders of such series. Liquidating distributions shall be made
to the stockholders of each series pro rata based on their share
ownership of such series.
9. On the eighth anniversary of the purchase of shares of the Diversified
Income Series B, High Yield Series B, and Capital Preservation Series
B, (except those purchased through the reinvestment of dividends and
other distributions), such shares will automatically convert to shares
of Diversified Income Series A, High Yield Series A, Capital
Preservation Series A, respectively, at the relative net asset values
of each of the series without the imposition of any sales load, fee or
other charge. All shares in a stockholder's account that were
purchased through the reinvestment of dividends and other
distributions paid with respect to Series B shares will be considered
to be held in a separate sub-account. Each time Series B shares are
converted to Series A shares, a pro rata portion of the Series B
shares held in the sub-account will also convert to Series A shares.
IN WITNESS WHEREOF, we have hereunto set our hands and affixed the seal of the
corporation this 14th day of August, 2000.
JAMES R. SCHMANK
------------------------------------------
James R. Schmank, Vice President
AMY J. LEE
------------------------------------------
Amy J. Lee, Secretary
STATE OF KANSAS )
) ss.
COUNTY OF SHAWNEE)
Be it remembered, that before me Marcia J. Johnson, a Notary Public in and for
the County and State aforesaid, came James R. Schmank, President, and Amy J.
Lee, Secretary, of Security Income Fund, a Kansas corporation, personally known
to me to be the persons who executed the foregoing instrument of writing as
President and Secretary, respectively, and duly acknowledged the execution of
the same this 14th day of August, 2000.
MARCIA J. JOHNSON
------------------------------------------
Notary Public
My commission expires: March 23, 2001
