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EXHIBIT M
VOYAGEUR MUTUAL FUNDS
PLAN OF DISTRIBUTION
This Plan of Distribution (the "Plan") is adopted pursuant to Rule
12b-1 (the "Rule") under the Investment Company Act of 1940 (as amended, the
"1940 Act") by Voyageur Mutual Funds, a Delaware business trust (the "Trust"),
for and on behalf of each series (each series is referred to hereinafter as a
"Fund") and, if applicable, each class thereof (each such class is referred to
hereinafter as a "Class"). The Funds and, if applicable, Classes thereof that
currently have adopted this Plan, and the effective dates of such adoptions, are
as follows:
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Delaware Tax-Free Iowa Fund, Class A November 1, 1993
Delaware Tax-Free Iowa Fund, Class B March 1, 1995
Delaware Tax-Free Iowa Fund, Class C December 1, 1994
Delaware Tax-Free Wisconsin Fund, Class A November 1, 1993
Delaware Tax-Free Wisconsin Fund, Class B March 1, 1995
Delaware Tax-Free Wisconsin Fund, Class C December 1, 1994
Delaware Tax-Free Idaho Fund, Class A December 1, 1994
Delaware Tax-Free Idaho Fund, Class B March 1, 1995
Delaware Tax-Free Idaho Fund, Class C December 1, 1994
Delaware Tax-Free Arizona Fund, Class A March 1, 1995
Delaware Tax-Free Arizona Fund, Class B March 1, 1995
Delaware Tax-Free Arizona Fund, Class C March 1, 1995
Delaware Tax-Free California Fund, Class A March 1, 1995
Delaware Tax-Free California Fund, Class B March 1, 1995
Delaware Tax-Free California Fund, Class C March 1, 1995
Delaware Minnesota High-Yield Municipal Bond Fund, Class A June 3, 1996
Delaware Minnesota High-Yield Municipal Bond Fund, Class B June 3, 1996
Delaware Minnesota High-Yield Municipal Bond Fund, Class C June 3, 1996
Delaware Tax-Free New York Fund, Class A November 20, 1996
Delaware Tax-Free New York Fund, Class B November 20, 1996
Delaware Tax-Free New York Fund, Class C November 20, 1996
Delaware National High-Yield Municipal Bond Fund, Class A November 13, 1996
Delaware National High-Yield Municipal Bond Fund, Class B November 13, 1996
Delaware National High-Yield Municipal Bond Fund, Class C November 13, 1996
Delaware Montana Municipal Bond Fund, Class A November 2, 1999
Delaware Montana Municipal Bond Fund, Class B November 2, 1999
Delaware Montana Municipal Bond Fund, Class C November 2, 1999
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1. Compensation
Class A of each Fund offering shares of such Class are each obligated
to pay the Underwriter a total fee in connection with the servicing of
shareholder accounts of such Class and in connection with distribution-related
services provided in respect of such Class, calculated and payable quarterly, at
the annual rate of .25% of the value of the average daily net assets of such
Class. All or any portion of such total fee may be payable as a Shareholder
Servicing Fee,
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and all or any portion of such total fee may be payable as a Distribution Fee,
as determined from time to time by the Trust's Board of Trustees. Until further
action by the Board of Trustees, all of such fee shall be designated and payable
as a Shareholder Servicing Fee.
Class B and Class C of each Fund offering shares of such Class are each
obligated to pay the Underwriter a total fee in connection with the servicing of
shareholder accounts of such Class in connection with distribution-related
services provided in respect of such Class, calculated and payable quarterly, at
the annual rate of 1.00% of the value of the average daily net assets of such
Class. All or any portion of such total fee may be payable as a Shareholder
Servicing Fee, and all or any portion of such total fee may be payable as a
Distribution Fee, as determined from time to time by the Trust's Board of
Trustees. Until further action by the Board of Trustees, a portion of such total
fee equal to .25% per annum of average daily net assets of each such Class shall
be designated and payable as a Shareholder Servicing Fee and the remainder of
such fee shall be designated as a Distribution Fee.
2. Expenses Covered by the Plan
(a) The Shareholder Servicing Fee may be used by the Underwriter to
provide compensation for ongoing servicing and/or maintenance of shareholder
accounts. Compensation may be paid by the Underwriter to persons, including
employees of the Underwriter, and institutions who respond to inquiries of Fund
shareholders regarding their ownership of shares or their accounts with the
Trust or who provide other administrative or accounting services not otherwise
required to be provided by the Trust's investment adviser, transfer agent or
other agent of the Trust.
(b) The Distribution Fee may be used by the Underwriter to provide
initial and ongoing sales compensation to its investment executives and to other
broker-dealers in respect of sales of Fund shares and to pay for other
advertising and promotional expenses in connection with the distribution of Fund
shares. These advertising and promotional expenses included, by way of example
but not by way of limitation, costs of printing and mailing prospectuses,
statements of additional information and shareholder reports to prospective
investors; preparation and distribution of sales literature; advertising of any
type; an allocation of overhead and other expenses of the Underwriter related to
the distribution of Fund shares; and payments to, and expenses of, officers,
employees or representatives of the Underwriter, of other broker-dealers, banks
or other financial institutions, and of any other persons who provide support
services in connection with the distribution of Fund shares, including travel,
entertainment, and telephone expenses.
(c) Payments under the Plan are not tied exclusively to the expenses
for shareholder servicing and distribution-related activities actually incurred
by the Underwriter, so that such payments may exceed expenses usually incurred
by the Underwriter. The Trust's Board of Trustees will evaluate the
appropriateness of the Plan and its payment terms on a continuing basis and in
doing so will consider all relevant factors, including expenses borne by the
Underwriter and amounts it receives under the Plan.
3. Additional Payments by Adviser and the Underwriter
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The Trust's investment adviser and the Underwriter may, at their option
and in their sole discretion, may payments from their own resources to cover the
costs of additional distribution and shareholder servicing activities.
4. Approval by Shareholders
The Plan will not take effect with respect to any Class of a Fund
offering multiple classes of shares or, if a Fund offers only one class of
shares, with respect to such Fund, and no fee will be payable in accordance with
Section 1 of the Plan, until the Plan has been approved by a vote of at least a
majority of the outstanding voting securities of such Class or Fund.
5. Approval by Trustees
Neither the Plan nor any related agreements will take effect until
approved by a majority vote of both (a) the full Board of Trustees of the Trust
and (b) those Trustees who are not interested persons of the Trust and who have
no direct or indirect financial interest in the operation of the Plan or in any
agreements related to it (the "Independent Trustees"), cast in person at a
meeting called for the purpose of voting the Plan and the related agreements.
6. Continuance of the Plan
The Plan will continue in effect from year to year so long as its
continuance is specifically approved annually by vote of the Trust's Board of
Trustees in the manner described in Section 5 above.
7. Termination
The Plan may be terminated at any time with respect to any Fund or, if
applicable, Class thereof, without penalty, by vote of a majority of the
Independent Trustees or by a vote of a majority of the outstanding voting
securities of such Fund or Class.
8. Amendments
The Plan may not be amended with respect to any Fund or, if applicable,
Class thereof, to increase materially the amount of the fees payable pursuant to
the Plan, as described in Section 1 above, unless the amendment is approved by a
vote of at least a majority of the outstanding voting securities of that Fund or
Class (and, if applicable, of any other affected Class or Classes), and all
material amendments to the Plan must also be approved by the Trust's Board of
Trustees in the manner described in Section 5 above.
9. Selection of Certain Trustees
While the Plan is in effect, the selection and nomination of the
Trust's Trustees who are not interested persons of the Trust will be committed
to the discretion of the Trustees then in office who are not interested persons
of the Trust.
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10. Written Reports
In each year during which the Plan remains in effect, the Underwriter
and any person authorized to direct the disposition of monies paid or payable by
the Trust pursuant to the Plan or any related agreement will prepare and furnish
to the Trust's Board of Trustees, and the Board will review, at least quarterly,
written reports, complying with the requirements of the Rule, which set out the
amounts expended under the Plan, on a Class by Class basis if applicable, and
the purposes for which those expenditures were made.
11. Preservation of Materials
The Trust will preserve copies of the Plan, any agreement relating to
the Plan and any report made pursuant to Section 10 above, for a period of not
less than six years (the first two years in an easily accessible place) from the
date of the Plan, agreement or report.
12. Meaning of Certain Terms
As used in the Plan, the terms "interested person" and "majority of the
outstanding voting securities" will be deemed to have the same meaning that
those terms have under the 1940 Act and the rules and regulations under the 1940
Act, subject to any exemption that may be granted to the Trust under the 1940
Act by the Securities and Exchange Commission.
