Common use of Liability for Payment in Advance of Receipt of Securities Clause in Contracts

Liability for Payment in Advance of Receipt of Securities. In any and every case where payment for purchase of securities for the account of the Fund is made by the Custodian in advance of receipt of the securities purchased, in the absence of specific written instructions from the Fund to so pay in advance, the Custodian shall be absolutely liable to the Fund for such securities to the same extent as if the securities had been received by the Custodian, except that in the case of repurchase agreements entered into by the Fund with a bank which is a member of the Federal Reserve System, the Custodian may transfer funds to the account of such bank prior to the receipt of (i) written evidence that the securities subject to such repurchase agreement have been transferred by book-entry into a segregated non-proprietary account of the Custodian maintained with The Federal Reserve Bank of Philadelphia or the safe-keeping receipt and (ii) the repurchase agreement, provided that such written evidence or documents are received prior to the close of business on the same day.