Exhibit (g)(iv) under Form N-1A
Exhibit 10 under Item 601/Reg. S-K
FOREIGN CUSTODY MANAGER AGREEMENT
AGREEMENT made as of December 21, 2005 among The Huntington Funds and
Huntington VA Funds, each a trust established under the laws of the Commonwealth
of Massachusetts (the "Trusts"), and The Bank of New York ("BNY").
W I T N E S S E T H:
WHEREAS, the Trusts desire to appoint BNY as a Foreign Custody Manager of
those portfolios listed on Exhibit A hereto (as it may be amended from time to
time) (the "Portfolios") on the terms and conditions contained herein;
WHEREAS, BNY desires to serve as a Foreign Custody Manager of the
Portfolios and perform the duties set forth herein on the terms and conditions
contained herein;
NOW THEREFORE, in consideration of the mutual promises hereinafter
contained in this Agreement, the Trusts and BNY hereby agree as follows:
ARTICLE I.
DEFINITIONS
Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:
1. "Board" shall mean the board of directors or board of trustees, as the case
may be, of the Trusts.
2. "Eligible Foreign Custodian" shall have the meaning provided in the Rule.
3. "Monitoring System" shall mean a system established by BNY to fulfill the
Responsibilities specified in clauses (d) and (e) of Section 1 of Article III of
this Agreement.
4. "Responsibilities" shall mean the responsibilities delegated to BNY under the
Rule as a Foreign Custody Manager with respect to each Specified Country and
each Eligible Foreign Custodian selected by BNY, as such responsibilities are
more fully described in Article III of this Agreement.
5. "Rule" shall mean Rule 17f-5 under the Investment Company Act of 1940, as it
may be amended from time to time.
6. "Specified Country" shall mean each country listed on Schedule I attached
hereto and each country, other than the United States, constituting the primary
market for a security with respect to which the Trusts have given settlement
instructions to The Bank of New York as sub-custodian (the "Custodian") under
The Huntington National Bank's Foreign Custody Agreement with BNY on behalf of
the Trusts.
ARTICLE II.
BNY AS A FOREIGN CUSTODY MANAGER
1. Each Trust, on behalf of its Board, hereby delegates to BNY, subject to
Section (b) of the Rule, the Responsibilities with respect to the foreign assets
of the Portfolio.
2. BNY accepts the Board's delegation of the Responsibilities and agrees in
performing the Responsibilities as a Foreign Custody Manager to exercise
reasonable care, prudence and diligence such as a person having responsibility
for the safekeeping of the Trusts' assets would exercise.
3. BNY shall provide to the Board at such times as the Board deems reasonable
and appropriate based on the circumstances of the Portfolios' foreign custody
arrangements, but in any event no less than quarterly, written reports notifying
the Board of the placement of assets of the Portfolios with a particular
Eligible Foreign Custodian within a Specified Country and of any material change
in the arrangements (including the contract governing such arrangements) with
respect to assets of the Portfolios with any such Eligible Foreign Custodian.
ARTICLE III.
RESPONSIBILITIES
1. Subject to the provisions of this Agreement, BNY shall with respect to each
Specified Country select an Eligible Foreign Custodian. In connection therewith,
BNY shall: (a) determine that assets of the Portfolios held by such Eligible
Foreign Custodian will be subject to reasonable care, based on the standards
applicable to custodians in the relevant market in which such Eligible Foreign
Custodian operates, after considering all factors relevant to the safekeeping of
such assets, including, without limitation, those contained in paragraph (c)(1)
of the Rule; (b) determine that the Trusts' foreign custody arrangements with
each Eligible Foreign Custodian are governed by a written contract with the
Custodian which will provide reasonable care for the Portfolios' assets based on
the standards specified in paragraph (c)(1) of the Rule; (c) determine that each
contract with an Eligible Foreign Custodian shall include the provisions
specified in paragraph (c)(2)(i)(A) through (F) of the Rule or, alternatively,
in lieu of any or all of such (c)(2)(i)(A) through (F) provisions, such other
provisions as BNY determines will provide, in their entirety, the same or a
greater level of care and protection for the assets of the Portfolios as such
specified provisions; (d) monitor pursuant to the Monitoring System the
appropriateness of maintaining the assets of the Portfolios with a particular
Eligible Foreign Custodian pursuant to paragraph (c)(1) of the Rule and the
performance of the contract governing such arrangement; and (e) advise the
Trusts whenever BNY determines under the Monitoring System that an arrangement
(including, any material change in the contract governing such arrangement)
described in preceding clause (d) no longer meets the requirements of the Rule.
2. For purposes of preceding Section 1 of this Article, BNY's determination of
appropriateness shall not include, nor be deemed to include, any evaluation of
Country Risks associated with investment in a particular country. For purposes
hereof, "Country Risks" shall mean systemic risks of holding assets in a
particular country including but not limited to (a) an Eligible Foreign
Custodian's use of any depositories that act as or operate a system or a
transnational system for the central handling of securities or any equivalent
book-entries; (b) such country's financial infrastructure; (c) such country's
prevailing custody and settlement practices; (d) nationalization, expropriation
or other governmental actions; (e) regulation of the banking or securities
industry; (f) currency controls, restrictions, devaluations or fluctuations; and
(g) market conditions which affect the orderly execution of securities
transactions or affect the value of securities.
ARTICLE IV.
REPRESENTATIONS
1. Each Trust hereby represents that: (a) this Agreement has been duly
authorized, executed and delivered by the Trust, constitutes a valid and legally
binding obligation of the Trust enforceable in accordance with its terms, and no
statute, regulation, rule, order, judgment or contract binding on the Trust
prohibits the Trust's execution or performance of this Agreement; (b) this
Agreement has been approved and ratified by the Board at a meeting duly called
and at which a quorum was at all times present, and (c) the Board, or at its
delegation, the Portfolios' investment advisor, has considered the Country Risks
associated with investment in each Specified Country and will have considered
such risks prior to any settlement instructions being given to the Custodian
with respect to any other country.
2. BNY hereby represents that: (a) BNY is a U. S. Bank as defined in the Rule
and is duly organized and existing under the laws of the State of New York, with
full power to carry on its businesses as now conducted, and to enter into this
Agreement and to perform its obligations hereunder; (b) this Agreement has been
duly authorized, executed and delivered by BNY, constitutes a valid and legally
binding obligation of BNY enforceable in accordance with its terms, and no
statute, regulation, rule, order, judgment or contract binding on BNY prohibits
BNY's execution or performance of this Agreement; and (c) BNY has established
the Monitoring System.
ARTICLE V.
CONCERNING BNY
1. BNY shall not be liable for any costs, expenses, damages, liabilities or
claims, including attorneys' and accountants' fees, sustained or incurred by, or
asserted against, the Trusts except to the extent the same arises out of BNY's
failure to exercise the care, prudence and diligence required by Section 2 of
Article II hereof. In no event shall BNY be liable to the Trusts, the Board, or
any third party for special, indirect or consequential damages, or for lost
profits or loss of business, arising in connection with this Agreement.
2. The Trusts shall indemnify BNY and hold it harmless from and against any and
all costs, expenses, damages, liabilities or claims, including attorneys' and
accountants' fees, sustained or incurred by, or asserted against, BNY by reason
or as a result of any action or inaction, arising out of BNY's performance
hereunder, provided that the Trusts shall not indemnify BNY to the extent any
such costs, expenses, damages, liabilities or claims arises out of BNY's failure
to exercise the reasonable care, prudence and diligence required by Section 2 of
Article II hereof.
3. The Trusts agree to reimburse BNY for reasonable out-of-pocket expenses it
incurs in connection with its performance of services hereunder.
4. BNY shall have only such duties as are expressly set forth herein. In no
event shall BNY be liable for any Country Risks associated with investments in a
particular country.
ARTICLE VI.
MISCELLANEOUS
1. This Agreement constitutes the entire agreement between the Trusts and BNY as
a foreign custody manager, and no provision in the Foreign Custody Agreement
between the Trusts and the Custodian shall affect the duties and obligations of
BNY hereunder, nor shall any provision in this Agreement affect the duties or
obligations of the Custodian under the Foreign Custody Agreement.
2. Any notice, instruction or other instrument required to be given hereunder
may be delivered in person to the offices of the parties as set forth herein
during normal business hours or delivered prepaid registered mail or by telex,
cable or telecopy to the parties at the following addresses or such other
addresses as may be notified by any party from time to time.
To a Trust: [Trust Name]
c/o The Huntington National Bank
0 Xxxxxx Xxxx
Xxxxxxxx, XX 00000
Attention: Xxxx Xxxx - Senior Vice President, Trust
Operations
Telephone:
Telecopy:
With a copy to: Xxxxxx X. Xxxxxxx, Secretary of the Trusts
c/o Xxxx Xxxxx LLP
Federated Investors Tower
0000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxxx, XX 00000-0000
Telephone: (000) 000-0000
Telecopy: (000) 000-0000
To the Custodian: The Bank of New York
000 Xxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention:
------------------------
Telephone:
------------------------
Telecopy:
------------------------
Such notice, instruction or other instrument shall be deemed to have been
sufficiently given to a party if received by that party at its address or
telecopy number as set forth above, or at such other address or telecopy number
as such party may designate from time to time to the other parties in writing.
3. In case any provision in or obligation under this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected
thereby. This Agreement may not be amended or modified in any manner except by a
written agreement executed by all parties. This Agreement shall extend to and
shall be binding upon the parties hereto, and their respective successors and
assigns; provided however, that this Agreement shall not be assignable by any
party without the written consent of the other parties.
4. This Agreement shall be construed in accordance with the substantive laws of
the State of New York, without regard to conflicts of laws principles thereof.
The Trusts and BNY hereby consent to the jurisdiction of a state or federal
court situated in New York City, New York in connection with any dispute arising
hereunder. The Trusts hereby irrevocably waive, to the fullest extent permitted
by applicable law, any objection they may now or hereafter have to the laying of
venue of any such proceeding brought in such a court and any claim that such
proceeding brought in such a court has been brought in an inconvenient forum.
The Trusts and BNY hereby irrevocably waive any and all rights to trial by jury
in any legal proceeding arising out of or relating to this Agreement.
5. The parties hereto agree that in performing hereunder, BNY is acting solely
on behalf of the Trusts and no contractual or service relationship shall be
deemed to be established hereby between BNY and any other person by reason of
this Agreement.
6. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but such counterparts shall, together,
constitute only one instrument.
7. This Agreement shall terminate simultaneously with the termination of the
Foreign Custody Agreement between the Trusts and the Custodian, and may
otherwise be terminated by either party giving to the other party a notice in
writing specifying the date of such termination, which shall be not less than
thirty (30) days after the date of such notice.
8. The terms of this Agreement shall govern the relationship between the parties
from July 31, 2002 until this Agreement is terminated, as if this Agreement were
entered into on July 31, 2002.
9. A copy of the Declaration of Trust of each Trust is on file with the
Secretary of the Commonwealth of Massachusetts, and notice is hereby given that
each such instrument is executed on behalf of the Board of Trustees of the Trust
as Trustees and not individually and that the obligations of this instrument are
not binding upon any of the Trustees or shareholders individually but are
binding only upon the assets and property of the Trusts; provided, however, that
each Declaration of Trust provides that the assets of a particular series of the
Trusts shall under no circumstances be charged with liabilities attributable to
any other series of the Trusts and that all persons extending credit to, or
contracting with or having any claim against a particular series of the Trusts
shall look only to the assets of that particular series for payment of such
credit, contract or claim.
IN WITNESS WHEREOF, the Trusts and BNY have caused this Agreement to be
executed by their respective officers, thereunto duly authorized, as of the date
first above written.
THE HUNTINGTON FUNDS
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------
Title: Vice President
Tax Identification No.:
HUNTINGTON VA FUNDS
By: /s/ Xxxxxx X. Xxxxxxx
---------------------------
Title: Vice President
Tax Identification No.:
THE BANK OF NEW YORK
By: /s/ Xxxxxx Xxxxxxxxxx
Title: Vice President
EXHIBIT A
Portfolios
as of _____________, 2005
Huntington Situs Small Cap Fund, a portfolio of The Huntington Funds
Huntington VA Situs Small Cap Fund, a portfolio of the Huntington VA Funds
SCHEDULE I
Specified Countries
See attached Global Custody Network Document
SECURITIES
SERVICING CUSTODY SERVICES Global Network Management
New York
September 30, 2005
Global Custody Network
The Bank of New York's network of subcustodians extends to 101 markets
worldwide. We continually review our network to ensure that it reflects the
changing global investment decisions of our clients. Our dedicated, regional
network management team monitors local economic, political, regulatory and
industry-related events and keeps clients apprised of changes in the investment
climate of each market through NetInfo(R), our daily news service.
Banks are selected for the network based on a variety of criteria, such as
compliance with worldwide regulatory requirements, competitive pricing, general
market reputation, SWIFT message capabilities, securities lending support,
credit ratings, overall banking relationship with The Bank of New York, and
ability to consistently meet our clients' needs. Each bank must meet a set of
stringent performance standards prior to selection, which are reexamined during
quarterly reviews and frequent on-site visits, ensuring that our clients are
uniformly provided with the best subcustodian in each market.
Our list of subcustodians is as follows:
------------------------------------
Country/Market Subcustodian(s)
------------------------------------
------------------------------------
Argentina Citibank, N.A.
------------------------------------
------------------------------------
Australia National Australia
Bank Ltd
------------------------------------
------------------------------------
Austria Bank Austria
Creditanstalt A.G.
------------------------------------
------------------------------------
Bahrain HSBC Bank Middle
East
------------------------------------
------------------------------------
Bangladesh HSBC
------------------------------------
------------------------------------
Belgium ING Belgium SA/NV
------------------------------------
------------------------------------
Benin Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Bermuda Xxxxxxxxxxx Trust
Bermuda Limited
------------------------------------
------------------------------------
Botswana Barclays Bank of
Botswana Ltd.
------------------------------------
------------------------------------
Brazil Citibank N.A
------------------------------------
------------------------------------
Country/Market Subcustodian(s)
------------------------------------
------------------------------------
Bulgaria ING Bank N.V.
------------------------------------
------------------------------------
Burkina Faso Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Canada Royal Bank of Canada
------------------------------------
------------------------------------
Cayman Islands The Bank of New York
------------------------------------
------------------------------------
Channel The Bank of New York
Islands
------------------------------------
------------------------------------
Chile Citibank N.A.
------------------------------------
------------------------------------
China Shanghai HSBC
------------------------------------
------------------------------------
China Shenzhen HSBC
------------------------------------
------------------------------------
Colombia Cititrust Colombia
S.A.
------------------------------------
------------------------------------
Costa Rica Banco BCT
------------------------------------
------------------------------------
Croatia Privredna banka
Zegreb d.d.
------------------------------------
------------------------------------
Cyprus Bank of Cyprus
Public Company Ltd.
------------------------------------
------------------------------------
Czech Republic ING Bank N.V. Prague
------------------------------------
------------------------------------
Denmark Danske Bank
------------------------------------
------------------------------------
Ecuador Banco de la
Produccion S.A.
------------------------------------
------------------------------------
Egypt Citibank,N.A.
------------------------------------
------------------------------------
Estonia Hansabank Limited
------------------------------------
------------------------------------
Euromarket Clearstream Banking
Luxembourg
------------------------------------
------------------------------------
Euromarket Euroclear Bank
------------------------------------
------------------------------------
Finland Nordea Bank Finland
plc
------------------------------------
------------------------------------
France BNP Paribas
Securities
Services/Credit
Agricole Investor
Services Bank
------------------------------------
------------------------------------
Germany BHF-BANK AG
------------------------------------
------------------------------------
Ghana Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Greece BNP Paribas
Securities Services
------------------------------------
------------------------------------
Guinea Bissau Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Hong Kong HSBC
------------------------------------
------------------------------------
Hungary HVB Bank Hungary
Rt./
ING Bank (Hungary)
Rt.
------------------------------------
------------------------------------
Iceland Landsbani Islands
------------------------------------
------------------------------------
India HSBC
------------------------------------
------------------------------------
Indonesia HSBC
------------------------------------
------------------------------------
Ireland The Bank of New York
------------------------------------
------------------------------------
Israel Bank Leimi
LE-Israel B.M.
------------------------------------
------------------------------------
Italy Banca Intesa
------------------------------------
------------------------------------
Ivory Coast Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Country/Market Subcustodian(s)
------------------------------------
------------------------------------
Jamaica FirstCaribbean
International
Securities Limited
------------------------------------
------------------------------------
Japan The Bank of
Tokyo-Mitsubishi
Ltd/Mizuho
Corporate Bank, Ltd.
------------------------------------
------------------------------------
Jordan HSBC Bank Middle
East
------------------------------------
------------------------------------
Kazakhstan HSBC
------------------------------------
------------------------------------
Kenya Barclays Bank of
Kenya Ltd
------------------------------------
------------------------------------
Latvia Hansabanka Limited
------------------------------------
------------------------------------
Lebanon HSBC Bank Middle
East
------------------------------------
------------------------------------
Lithuania Vilniaus Bankas
------------------------------------
------------------------------------
Luxembourg Banque et Caisse
e'Epargne de l'Etat
------------------------------------
------------------------------------
Malaysia HongKong Bank
Malaysia Berhad
------------------------------------
------------------------------------
Mali Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Malta HSBC Bank Malta
p.l.c.
------------------------------------
------------------------------------
Mauritius HSBC
------------------------------------
------------------------------------
Mexico Banco Nacional de
Mexico
------------------------------------
------------------------------------
Morocco Attijariwafa Bank
------------------------------------
------------------------------------
Namibia Standard Bank
Namibia Ltd
------------------------------------
------------------------------------
Netherlands ING Bank
------------------------------------
------------------------------------
New Zealand National Australia
Bank
------------------------------------
------------------------------------
Niger Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Nigeria Stanbic Bank Nigeria
------------------------------------
------------------------------------
Norway DnB NOR Bank ASA
------------------------------------
------------------------------------
Oman HSBC Bank Middle
East
------------------------------------
------------------------------------
Pakistan Standard Chartered
Bank
------------------------------------
------------------------------------
Palestinian HSBC Bank Middle
Autonomous East
Area
------------------------------------
------------------------------------
Peru Citibank de Peru
------------------------------------
------------------------------------
Philippines HSBC
------------------------------------
------------------------------------
Poland ING Bank Xxxxxx
------------------------------------
------------------------------------
Portugal Banco Comercial
Portugues
------------------------------------
------------------------------------
Qatar HSBC Bank Middle
East
------------------------------------
------------------------------------
Romania ING Bank Bucharest
------------------------------------
------------------------------------
Russia Vnestorgbank (Min
Fin Bonds only)/ING
Bank (Eurasia)
------------------------------------
------------------------------------
Senegal Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Singapore United Overseas
Bank Limited/DBS
Bank Ltd.
------------------------------------
------------------------------------
Slovak Ceskoslovenska
Republic Obchodni Banka,
a.s./ING Bank N.V.,
pobocka zahranicnej
banky
------------------------------------
------------------------------------
Country/Market Subcustodian(s)
------------------------------------
------------------------------------
Slovenia Bank Austria
Creditanstalt d.d.
Ljubljana
------------------------------------
------------------------------------
South Africa Standard Bank of
South Africa Limited
------------------------------------
------------------------------------
South Korea HSBC
------------------------------------
------------------------------------
Spain Banco Bilbao
Vizcaya Argentaria
S.A./Santander
Investment
Services, S.A.
------------------------------------
------------------------------------
Sri Lanka HSBC
------------------------------------
------------------------------------
Swaziland Standard Bank
Swaziland Limited
------------------------------------
------------------------------------
Sweden Skandinaviska
Enskilda Banken
------------------------------------
------------------------------------
Switzerland Credit Suisse,
Zurich
------------------------------------
------------------------------------
Taiwan HSBC
------------------------------------
------------------------------------
Thailand HSBC/Bangkok Bank
Public Company
Limited
------------------------------------
------------------------------------
Togo Societe Generale de
Banques en Cote
d'Ivoire
------------------------------------
------------------------------------
Trinidad & Republic Bank
Tobago Limited
------------------------------------
------------------------------------
Tunisia Banque
Internationale
Arabe de Tunisie
------------------------------------
------------------------------------
Turkey Turkye Garante
Bankasi A.S.
------------------------------------
------------------------------------
Ukraine ING Bank Ukraine
------------------------------------
------------------------------------
United Arab HSBC Bank Middle
Emirates East
------------------------------------
------------------------------------
United Kingdom The Bank of New
York/ JPMorgan
Chase Bank NA
(Depository and
Clearing Centre)
------------------------------------
------------------------------------
United States The Bank of New York
------------------------------------
------------------------------------
Uruguay BankBoston, N.A.
------------------------------------
------------------------------------
Venezuela Citibank, N.A.
------------------------------------
------------------------------------
Vietnam HSBC
------------------------------------
------------------------------------
Zambia Barclays Bank of
Zambia Ltd.
------------------------------------
------------------------------------
Zambabwe Barclays Bank of
Zimbabwe Ltd.
------------------------------------
For more information about our sub-custodian network, please contact:
New York
Xxxxxxx Xxxxxx, Managing Director
Global Network Management at 1 718 315 2020
Xxxxxx Xxxxxxx, Regional Manager
Americas, at 1 718 315 2017
Singapore
Xxxxx Xxxx, Regional Manager
Asia/Pacific, at 000 000 0000
Brussels
Xxxxxxx Xxxxxx, Regional Manager, Europe,
Middle East and Africa, at 32 2 545 4282
