Common use of Securities, Indices and Futures Contracts Clause in Contracts

Securities, Indices and Futures Contracts. The Fund may purchase put options ("puts") that relate to municipal bonds (whether or not it holds such securities in its portfolio), indices or futures contracts. The Fund may also sell puts on municipal bonds, indices or futures contracts on such securities if the Fund's contingent obligations on such puts are secured by segregating or designating liquid assets on the Fund's books and records. The Fund's investment policies provide that it will not sell puts if, as a result, more than 50% of the Fund's assets would be required to cover its potential obligations under its hedging and other investment transactions. In selling puts, there is a risk that the Fund may be required to buy the underlying security at a price higher than the current market price.