Second Amendment to the Custody Agreement
Exhibit
10 under Item 601/Reg. S-K
Second
Amendment to the Custody Agreement
This Amendment is made as of September
5, 2008 to the Custody Agreement (the “Agreement”) dated June 7, 2005 and
amended November 8, 2007 between the Funds listed on Schedule II attached hereto
(each a "Fund") and The Bank of New York Mellon (the "Custodian").
WHEREAS, each Fund and the Custodian
wish to modify the provisions of the Agreement as set forth below;
NOW THEREFORE, each the Fund and the
Custodian agree to the following amendments.
1. Section
14. “Internal Operating Account” to Article I of the Agreement shall be revised
as follows:
14. “Internal Operating
Account” shall mean accounts established by the Custodian at the direction of a
Fund to facilitate the intraday transfer of monies to or from the Custodian
representing aggregated subscriptions or redemptions for allocation to
individual Funds as indicated by the Fund or its agent.
And;
Each Fund
and the Custodian hereby amend Article V. Section 1 of the Agreement by
replacing the first sentence of the section as follows:
If
Custodian should in its sole discretion advance funds on behalf of any Fund
which results in an overdraft at the end of any day, because the money held by
Custodian in an Account, including an Internal Operating Account, for such Fund
shall be insufficient to pay the total amount payable upon a purchase of
Securities specifically allocated to such Fund, as set forth in a Certificate,
Instructions or Oral Instructions, or if an overdraft arises in the separate
account of a Fund for some other reason, including, without limitation, because
of a reversal of a conditional credit or the purchase of any currency, or if the
Fund is for any other reason indebted to Custodian with respect to a Fund, due
to borrowing by a Fund from the Custodian, (except a borrowing for investment or
for temporary or emergency purposes using Securities as collateral pursuant to a
separate agreement and subject to the provisions of Section 2 of this Article),
such overdraft or indebtedness shall be deemed to be a loan made by Custodian to
the Fund for such Fund payable on demand and shall bear interest from the date
incurred at a rate per annum as disclosed on the Fee Schedule between the Funds
and the Custodian as such Fee Exhibit may be amended from time to
time.
2. Within
Exhibit D, the section entitled “Compensating Balance Arrangement” is replaced
in its entirety with the following Amended and Restated section entitled
“Compensating Balance Arrangement” as attached hereto.
3. Within
Exhibit E, the section entitled “Compensating Balance Arrangement” is replaced
in its entirety with the following Amended and Restated section entitled
“Compensating Balance Arrangement” as attached hereto.
4. Each
Exhibit A, Exhibit B, and Schedule I to Exhibit C, the Foreign Custody Manager
Agreement, are updated to include the following new Funds:
Federated
California Municipal Income Fund
Federated
New York Municipal Income Fund
Federated
North Carolina Municipal Income Fund
Federated
Ohio Municipal Income Fund
Federated
Pennsylvania Municipal Income Fund
IN
WITNESS WHEREOF, this Amendment has been executed for and on behalf of the
undersigned as of the day and year first written above.
On
behalf of each of the Funds indicated on Schedule II attached
hereto
By: /s/ Xxxxxxx X.
Xxxxx
Name: Xxxxxxx
X. Xxxxx
Title: Treasurer
THE BANK
OF NEW YORK MELLON
By: /s/ Xxxxx X.
Xxxxxxx
Title: Vice
President
Amended and
Restated
Exhibit
D
Compensating Balance
Arrangement
Each of
the Funds listed below and The Bank of New York Mellon have entered into an
earnings credit balance arrangement pursuant to which it has been agreed that
90% of any positive balances will be compensated at the 90 day T-Xxxx rate and
100% of overdrawn balances will be charged at a rate of 1% over the Fed Funds
rate. Monthly, the net resultant credit or charge will be applied to
the each Funds’ respective safekeeping fees. Credits that exceed the safekeeping
fee may be carried over into the next billing period at the discretion of
Custodian.
FUNDS
Federated
Stock Trust
Federated
Market Opportunity Fund
Federated
California Municipal Income Fund
Federated
North Carolina Municipal Income Fund
Federated
New York Municipal Income Fund
Federated
Ohio Municipal Income Fund
Federated
Pennsylvania Municipal Income Fund
Amended and
Restated
Exhibit
E
Compensating Balance
Arrangement
Each Fund
listed below and The Bank of New York Mellon (the “Bank”) have entered into a
average compensating balance arrangement, which would allow the Funds to
compensate the Bank for any overdrafts by maintaining a positive cash balance
and conversely, on any day a Fund maintains a positive balance, the respective
Fund will be permitted to overdraw the account as compensation.
In each
instance, Federal Reserve requirements (currently 10%), will be
assessed. Therefore, all overdrafts must be compensated at 100% of
the total and all positive balances will allow for an overdraft of up to 90% of
the total (unless the positive balance is the result of an error on the part on
the Bank, in which case the positive balance would be assessed at
100%). The Funds shall maintain the average compensating balance over
quarterly periods (ending March, June, September and December for FGRF, FCRF and
FMUTR; and ending February, May, August, and November for AGCR, USTCR and
GOTMF). Average balances will be computed at the end of the
quarter. Net positive balances will receive an earnings credit
computed at the daily effective 90 – day T-Xxxx rate on the last day of a
period. Net negative balances will be charged at the Fed Funds rate
plus 1% on the last day of the period. Quarterly net credits or
charges will be applied to the safekeeping fees. Credits that exceed the
safekeeping fee will be carried over into the next billing period but must be
applied in a 12 month cycle; all accumulated unapplied credits will expire in
the final quarter of the cycle, i.e. in November or
December. However, upon specific request from Fund, Custodian at its
discretion may agree to carry forward into the next 12 month cycle any
accumulated credits, contingent on their application within a specified time
period.
Credits
are not redeemable for cash and will expire in the event the relationship with
the Funds is terminated.
FUNDS
Federated
Capital Reserves Fund (FCRF)
Federated
Government Reserve Fund (FGRF)
Federated
Municipal Trust Fund (FMUTR)
US
Treasury Cash Reserve Fund (USTCR)
Automated
Government Cash Reserves (AGCR)
Government
Obligations Tax Managed Fund (GOTMF)
