Common use of Deposit and Maintenance of Collateral for Securities not Received Clause in Contracts

Deposit and Maintenance of Collateral for Securities not Received. In accordance with the provisions of the Fund’s prospectus, shares of the Fund may be issued to an authorized participant in advance of receipt of all the designated portfolio of securities (“Deposit Securities”) subject to various conditions, including a requirement for the authorized participant to maintain cash on deposit with the Custodian for the account of the Fund in an amount as determined by the Fund in its sole discretion. On a daily basis, by 2:00 p.m. New York time, the Custodian will deliver to the Fund a list of the missing Deposit Securities. The Fund will instruct the Custodian, by 3:00 p.m. New York time as to the amount of collateral or daily marked to market value of the missing Deposit Securities (“Variation Margin Call”) to be received from the authorized participant and instruct the authorized participant as to the amounts to be delivered to the Custodian. The Fund shall ensure that the Authorized Participant satisfies the Variation Margin Call on the same day, by the close of the Federal Reserve wire for money transactions.