Common use of Credit Determination Clause in Contracts

Credit Determination. The Investment Adviser will follow the practices described in this Section 3 to determine that the repurchase agreement transactions entered into by the Fund represent minimal credit risks. The Investment Adviser shall consider both the credit worthiness of the counterparty and the quality of the collateral received under the repurchase agreement in making its determination, with such considerations, as appropriate to the type of repurchase agreement being entered into. Examples of information that may, but need not in every case, be used to assess the creditworthiness of the counterparty, include annual audited financial statements, semi-annual financial statements, Focus reports, ratings, rating agency reports, external research, and financial Repurchase Agreement Guidelines news services. The Investment Adviser may also consider the counterparty’s reputation, ownership, management and the Investment Adviser’s past experience in dealing with the counterparty.

Credit Determination. The Investment Adviser will follow the practices described in this Section 3 to determine that the repurchase agreement transactions entered into by the Fund represent minimal credit risks. The Investment Adviser shall consider both the credit worthiness of the counterparty and the quality of the collateral received under the repurchase agreement in making its determination, with such considerations, as appropriate to the type of repurchase agreement being entered into. Examples of information that may, but need not in every case, be used to assess the creditworthiness of the counterparty, include annual audited financial statements, semi-annual financial statements, Focus reports, ratings, rating agency reports, external research, and financial Table of Contents Repurchase Agreement Guidelines news services. The Investment Adviser may also consider the counterparty’s reputation, ownership, management and the Investment Adviser’s past experience in dealing with the counterparty.