SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549












                 NOTIFICATION OF ELECTION PURSUANT TO RULE 18f-1
                    UNDER THE INVESTMENT COMPANY ACT OF 1940












                                 CONESTOGA FUNDS
                                 ---------------
                            Exact Name of Registrant




                            NOTIFICATION OF ELECTION

      The undersigned registered open-end investment company hereby notifies the
Securities and Exchange Commission that it elects to commit itself to pay in
cash all redemptions by a shareholder of record as provided by Rule 18f-1 under
the Investment Company Act of 1940, as amended (the "1940 Act"). It is
understood that this election is irrevocable while such Rule is in effect unless
the Commission order upon application permits the withdrawal of this
Notification of Election.

                                    SIGNATURE

      Pursuant to the requirements of Rule 18f-1 under the 1940 Act, the
Registrant has caused this notification of election to be duly executed on its
behalf in the City of New York and the State of New York on the 15th day of
July, 2002.



                                    CONESTOGA FUNDS
                                    (Name of Registrant)


                                    By: /s/ Carl Frischling
                                       ----------------------------------
                                    Name: Carl Frischling
                                    Title: Trustee



Attest:  /s/ Omar A. Karim
       -------------------------------
Name: Omar A. Karim
Title: Trustee