Common use of Monitoring Requirement Clause in Contracts

Monitoring Requirement. Nothing herein, nor any action by the Intermediary, shall be construed as, or infer that the Intermediary has, undertaken any duty or obligation, whether express or implied, at law or in equity, to detect trading activities inconsistent with or in violation of the Fund’s policies and/or procedures on limiting the dilution of the value of the outstanding Shares issued by the Fund. Notwithstanding the aforementioned, the Intermediary represents that it has adopted policies and procedures to detect market timing activity and other abusive trading activity by Shareholders in Shares issued by the Fund and in shares issued by other funds that are available as investment options under the Contracts and policies and procedures to take remedial action as Intermediary deems necessary to address such violations. The Intermediary agrees to promptly notify the Fund of material violations of such policies and procedures involving Shares issued by the Fund. For purposes of this section of the Agreement, whether a violation is material shall be determined in good faith by the Intermediary in its reasonable business judgment.