Common use of COLLECTION OF INCOME AND SHORT TERM Clause in Contracts

COLLECTION OF INCOME AND SHORT TERM. INVESTMENTS Custodian shall collect all income and other payments with respect to registered Securities held hereunder to which each Portfolio shall be entitled by law or pursuant to custom in the securities business, and shall collect all income and principal and other payments with respect to bearer Securities if, on the date of payment by the issuer, such Securities are held by Custodian or agent thereof, and shall deposit such income and principal, as collected, into such Portfolio's account. Without limiting the generality of the foregoing, Custodial shall detach and present for payment all coupons and other income and principal items requiring presentation as and when they become due, shall collect dividends and interest when due on Securities held hereunder, and shall endorse and deposit for collection, in the name of the Portfolio, checks, drafts, and other negotiable instruments within a reasonable period of time. The Custodian is further authorized, empowered and directed to invest, said proceeds and any other monies not directed by the Fund or Fund's agent to be invested in short term interest bearing or short term discount obligations to the best of Custodian's ability. It is contemplated that the Fund will, from time to time, provide Custodian with certain written guidelines setting forth specific short term interest bearing and short term discount obligations which are acceptable to Fund, and Custodian agreed to act within said guidelines. Unless provided otherwise in written instructions from the Fund to the Custodian, the Custodian is specifically authorized, empowered and directed to invest any short term monies in securities of The One Group U.S. Treasury Securities Money Market Fund and The One Group Prime Money Market Fund. The One Group is an open-end investment company registered under the '40 Act. The fact that the Custodian, any affiliate of the Custodian, or any affiliate of BANC ONE CORPORATION is providing services to and receiving remuneration from the foregoing investment company or investment trust as investment advisor, custodian, transfer agent, registrar, or otherwise shall not preclude the Custodian from investing in the securities of such investment company or investment trust. With respect to Securities of foreign issuers, while Custodian will use its best efforts to collect any monies which may to its knowledge become collectible arising from such Securities including dividends, interest and other income and principal, and to notify the Fund of any call for redemption, offer of exchange, right of subscription, reorganization or other proceedings affecting such Securities, it is understood that Custodian shall be under no responsibility for any failure or delay in effecting such collections or giving such notices. Custodian shall not be under any obligation or duty to take action to effect collection of any amount, if the Securities (domestic or foreign) on which such amount is payable are in default and payment is refused after due demand or presentation. Custodian will, however, promptly notify the Fund in writing of such default and refusal to pay.