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EXHIBIT 99.(g).(3)
Amendment to Global Custody Tri-Party Agreement
AMENDMENT, dated April 21, 1998 to the 7/1/97 Global Custody Tri-Party
Agreement ("Agreement"), by and among Hotchkis and Wiley Variable Trust, having
a place of business at 000 Xxxx Xxxxx Xxxxxx, Xxxxx Xxxxx, Xxx Xxxxxxx,
Xxxxxxxxxx 00000, The Chase Manhattan Bank (as successor by operation of law to
The Chase Manhattan Bank, N.A.) ("Bank"), having a place of business at 000 Xxxx
Xxx., Xxx Xxxx, X.X. 00000-0000, and Firstar Trust Company, having a place of
business at 000 Xxxx Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000.
It is hereby agreed as follows:
A. Except as modified hereby, the Agreement is confirmed in all
respects. If any of the terms of this Amendment conflict with any of the terms
of the Agreement, the terms of this Amendment shall prevail. Capitalized terms
used herein without definition shall have the meanings ascribed to them in the
Agreement.
B. The Agreement is amended by deleting the amendments to Section 3 of
the Agreement contained in that certain Mutual Fund Rider to Global Custody
Tri-Party Agreement among the parties (the "Mutual Fund Rider").
C. Add a new Section 15 to the Agreement as follows:
15. COMPLIANCE WITH SEC RULE 17f-5.
(a) The Fund's board of trustees (hereinafter "Board") hereby delegates
to Bank, and, except as to the country or countries as to which Bank may, from
time to time, advise the Fund that it does not accept such delegation, Bank
hereby accepts the delegation to it, of the obligation to perform as the Fund's
"Foreign Custody Manager" (as that term is defined in SEC rule 17f-5(a)(2)),
both for the purpose of selecting Eligible Foreign Custodians (as that term is
defined in SEC rule 17f-5(a)(1), and as the same may be amended from time to
time, or that have otherwise been made exempt pursuant to an SEC exemptive
order) to hold Assets and of evaluating the contractual arrangements with such
Eligible Foreign Custodians (as set forth in SEC rule 17f-5(c)(2)); provided
that, the term Eligible Foreign Custodian shall not include any "Compulsory
Depository." A Compulsory Depository shall mean a securities depository or
clearing agency the use of which is compulsory because: (1) its use is required
by law or regulation, (2) securities cannot be withdrawn from the depository, or
(3) maintaining securities outside the depository is not consistent with
prevailing custodial practices in the country which the depository serves.
Compulsory Depositories used by Chase as of the date hereof are set forth in
Appendix 1-A hereto, and as the same may be amended on notice to the Fund from
time to time.
(b) In connection with the foregoing, Bank shall:
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(i) provide written reports notifying the Fund's Board of the placement
of Assets with particular Eligible Foreign Custodians and Compulsory
Depositories and of any material change in the arrangements with such
Eligible Foreign Custodians and, to the extent Bank is aware of the
same, any material change in the arrangements with Compulsory
Depositories, with such reports to be provided to the Fund's Board at
such times as the Board deems reasonable and appropriate based on the
circumstances of the Fund's foreign custody arrangements (and until
further notice from the Fund such reports shall be provided not less
than quarterly with respect to the placement of Assets with particular
Eligible Foreign Custodians and Compulsory Depositories (it being
understood that Bank shall not be responsible to make the Fund's
decision to place Assets with any Compulsory Depository) and with
reasonable promptness upon the occurrence of any material change in the
arrangements with such Eligible Foreign Custodians and, to the extent
Bank is aware of the same, any material change in the arrangements with
Compulsory Depositories);
(ii) exercise the reasonable care, prudence and diligence in performing
as the Fund's Foreign Custody Manager of a New York bank subject to a
New York standard of care having responsibility for the safekeeping of
Assets would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have determined
that Assets placed and maintained in the safekeeping of such Eligible
Foreign Custodian shall be subject to reasonable care, based on the
standards applicable to custodians in the relevant market, after having
considered all factors relevant to the safekeeping of such Assets,
including, without limitation, those factors set forth in SEC rule
17f-5(c)(1)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign
Custodian (or, in the case of an Eligible Foreign Custodian that is a
securities depository or clearing agency, such contract, the rules or
established practices or procedures of the depository, or any
combination of the foregoing) requires that the Eligible Foreign
Custodian will provide reasonable care for Assets based on the standards
applicable to custodians in the relevant market. In making this
determination, Bank shall consider the provisions of Rule 17f-5(c)(2),
together with whether Bank shall be liable to the Fund for any loss
which shall occur as the result of the failure of the Eligible Foreign
Custodian to exercise reasonable care with respect to the safekeeping of
such Assets to the same extent that Bank would be liable to the Fund if
Bank were holding such Assets in New York; and
(v) have established a system to monitor the continued appropriateness
of maintaining Assets with particular Eligible Foreign Custodians and of
the governing contractual arrangements; it being understood, however,
that in the event that Bank shall have determined that the existing
Eligible Foreign Custodian in a given country would no longer afford
Assets reasonable care and
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that no other Eligible Foreign Custodian in that country would afford
reasonable care, Bank shall promptly so advise the Fund and shall then
act in accordance with the Instructions of the Fund with respect to the
disposition of the affected Assets.
Subject to (b)(i)-(v) above, Bank is hereby authorized to place and maintain
Assets on behalf of the Fund with Eligible Foreign Custodians pursuant to a
written contract deemed appropriate by Bank.
(c) Except as expressly provided herein, the Fund shall be solely
responsible to assure that the maintenance of Assets hereunder complies with the
rules, regulations, interpretations and exemptive orders promulgated by or under
the authority of the SEC.
(d) Bank represents to Fund that it is a U.S. Bank as defined in Rule
17f-5(a)(7). The Fund represents to Bank that: (1) the Assets being placed and
maintained in Bank's custody are subject to the Investment Company Act of 1940,
as the same may be amended from time to time (the "1940 Act"); and (2) (i) its
Board has determined that it is reasonable to rely on Bank to perform as the
Fund's Foreign Custody Manager or (ii) its Foreign Custody Manager (other than
Bank) shall have determined that the Fund may maintain Assets in each country in
which the Fund's Assets shall be held hereunder and determined to accept the
risks arising therefrom (including, but not limited to, a country's financial
infrastructure (and including any Compulsory Depository operating in such
country), prevailing custody and settlement practices, laws applicable to the
safekeeping and recovery of Assets held in custody, and the likelihood of
nationalization, currency controls and the like).
D. Add the following after the first sentence of Section 3 of the
Agreement:
At the request of the Fund, Bank may, but need not, add to Schedule A an
Eligible Foreign Custodian that is either a bank or a non-Compulsory
Depository where Bank has not acted as Foreign Custody Manager with
respect to the selection thereof. Bank shall notify the Fund in the
event that it elects not to add any such entity.
E. Add the following language to the end of Section 3 of the Agreement:
The term Subcustodian as used herein shall mean the following:
(a) a "U.S. Bank," which shall mean a U.S. bank as defined in SEC rule
17f-5(a)(7); and
(b) an "Eligible Foreign Custodian," which shall mean (i) a banking
institution or trust company, incorporated or organized under the laws
of a country other than the United States, that is regulated as such by
that country's government or an agency thereof, (ii) a majority-owned
direct or indirect subsidiary of a U.S. bank or bank holding company
which subsidiary is incorporated or organized under the
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laws of a country other than the United States, (iii) a securities
depository or clearing agency, incorporated or organized under the laws
of a country other than the United States, that acts as a system for the
central handling of securities or equivalent book-entries in that
country and that is regulated by a foreign financial regulatory
authority as defined under Section 2(a)(50) of the 1940 Act, (iv) a
securities depository or clearing agency organized under the laws of a
country other than the United States to the extent acting as a
transnational system for the central handling of securities or
equivalent book-entries, and (v) any other entity that shall have been
so qualified by exemptive order, rule or other appropriate action of the
SEC.
For purposes of clarity, it is agreed that as used in Section 12(a)(i), the term
Subcustodian shall include neither any Eligible Foreign Custodian as to which
Bank has not acted as Foreign Custody Manager nor any Compulsory Depository.
F. Insert the following language in the first sentence of Section 4(d)
of the Agreement following the phrase "except for safe custody or
administration": "or, in the case of cash deposits, liens or rights in favor of
creditors of the Subcustodian arising under bankruptcy, insolvency or similar
laws,".
G. Insert the following language at the beginning of the second sentence
of Section 12(a)(i) of the Agreement:
"Except with respect to those countries as to which the parties may from
time to time agree in writing otherwise,".
G. The insert to Section 11 and the added subsection (c) [sic] to
Section 12 of the Agreement contained in the Mutual Fund Rider are deleted.
*********************
[SIGNATURES FOLLOW]
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first above written.
HOTCHKIS AND WILEY THE CHASE MANHATTAN BANK
VARIABLE TRUST
By: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxx X. Xxxxxx
Name: Xxxxx X. Xxxxxx Name: Xxxxx X. Xxxxxx
Title: President Title: Vice President
FIRSTAR TRUST COMPANY
By: /s/ Xxxxxxx X. XxXxx
Name: Xxxxxxx X. XxXxx
Title: Vice President
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APPENDIX 1-A
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COMPULSORY DEPOSITORIES
AS OF SEPTEMBER 12, 1997
----------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------
ARGENTINA CAJA DE VALORES Equity, Corporate & Government Debt
----------------------------------------------------------------------------------------------------------------------
AUSTRALIA AUSTRACLEAR LTD. Corporate Debt, Money Market +
Semi-Government Debt
----------------------------------------------------------------------------------------------------------------------
CHESS Equity
(Clearing House Electronic Sub-register System)
----------------------------------------------------------------------------------------------------------------------
RITS Government Debt
(Reserve Bank Information and Transfer Systems)
----------------------------------------------------------------------------------------------------------------------
AUSTRIA OESTERREICHISCHE KONTROLBANK AG Equity, Corporate Debt + Government Debt
-----------------------------------------------------------------------------------------------------------------------
BELGIUM CIK Equity + Corporate Debt
(Caisse Interprofessionnelle de Depots et de Virements
de Titres
----------------------------------------------------------------------------------------------------------------------
BANQUE NATIONALE DE BELGIQUE Treasury Bills + Government Debt
----------------------------------------------------------------------------------------------------------------------
BRAZIL BOVESPA Equity
(Bolsa de Valores de Sao Paolo)
----------------------------------------------------------------------------------------------------------------------
BVRJ Equity
(Bolsa de Valores de Rio de Janeiro)
----------------------------------------------------------------------------------------------------------------------
CANADA CDS Equity, Corporate + Government Debt
(Canadian Depository for Securities)
----------------------------------------------------------------------------------------------------------------------
CHINA, SHANGHAI SSCCRC Equity
(Shanghai Securities Central Clearing and Registration
Corp.)
----------------------------------------------------------------------------------------------------------------------
CHINA, SHENZHEN SSCC Equity
(Shenzhen Securities Registration Co., Ltd.)
----------------------------------------------------------------------------------------------------------------------
CZECH REPUBLIC SCP Equity + Long-Term Government Debt
(Securities Center)
----------------------------------------------------------------------------------------------------------------------
TKD Treasury Bills + Money Market
(Trh Kratkododich Diluhopisu or Short-Term Bond Market)
----------------------------------------------------------------------------------------------------------------------
DENMARK VP Equity, Corporate + Government Debt
(Vaerdipapircentralen)
----------------------------------------------------------------------------------------------------------------------
EGYPT MISR CLEARING & SEC. DEP. Equity
----------------------------------------------------------------------------------------------------------------------
ESTONIA EVK Equity
(Estonian Central Depository for Securities Ltd.)
----------------------------------------------------------------------------------------------------------------------
EUROMARKET CEDEL & EUROCLEAR Euro-Debt
----------------------------------------------------------------------------------------------------------------------
FINLAND CSR Equity + Government Debt
(Central Share Registry Finland)
----------------------------------------------------------------------------------------------------------------------
HELSINKI MONEY MARKET CENTER LTD. Money Market
----------------------------------------------------------------------------------------------------------------------
FRANCE SICOVAM Equity + Corporate Debt
(Banque de France)
----------------------------------------------------------------------------------------------------------------------
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COMPULSORY DEPOSITORIES
AS OF SEPTEMBER 12, 1997
COUNTRY DEPOSITORY INSTRUMENT
FRANCE SATURNE Government Debt.
(Banque de France)
GERMANY DKV Equity, Corporate + Government Debt
(Deutscher Kassenverein)
GREECE APOTHETIRIO TITLON A.E. Equity
BANK OF GREECE Government Debt
HONG KONG CCASS Equity
(Central Clearing and Settlement System)
CMU Corporate + Government Debt
(Central Moneymarkets Unit)
HUNGARY KELER LTD. Equity + Government Debt
IRELAND CREST Equity
GSO Government Debt
(Gilt Settlement Office)
ISRAEL TASE CLEARING HOUSE Equity, Corporate + Government Debt
(Tel Aviv Stock Exchange Clearing House)
ITALY MONTE TITOLI Equity + Corporate Debt
BANK OF ITALY Government Debt
JAPAN BANK OF JAPAN Registered Government Debt
LATVIA LCD Equity + Government Debt
(Latvian Central Depository)
LEBANON MIDCLEAR Equity
(Custodian and Clearing Center of Lebanon and the Middle
East)
LUXEMBOURG CEDEL Equity
MALAYSIA MCD Equity
(Malaysian Central Depository Snd Bhd)
MAURITIUS CDS Equity
(Central Depository System)
MEXICO INDEVAL Equity, Corporate + Government Debt.
(Institucion para el Deposito de Valores)
MOROCCO MAROCLEAR Equity + Corporate Debt
BANK AL'MAGHRIB Government Debt
NETHERLANDS NECIGEF/KAS ASSOCIATE NV Equity, Corp. + Govt. Debt
DE NEDERLANDSCHE BANK N.V. Money Market
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COMPUSORY DEPOSITORIES
AS OF SEPTEMBER 12, 1997
COUNTRY DEPOSITORY INSTRUMENT
NETHERLANDS NIEC Premium Bonds
(Nederlands Interprofessioneel Effectencentrum
B.V.)
NEW ZEALAND AUSTRACLEAR NEW ZEALAND Equity, Corporate + Government Debt
NORWAY VPS Equity, Corporate + Government Debt
(Verdipapirsentralen)
OMAN NONE
PAKISTAN CDC Equity
(Central Depository Company of Pakistan Ltd.)
PERU CAVALI Equity
(Caja de Valores)
PHILIPPINES PCD Equity
(Philippine Central Depository)
POLAND NDS Equity, Long-Term Government Debt +
(National Securities Depository) Vouchers
CRT TREASURY-BILLS
(Central Registry of Treasury-Bills)
PORTUGAL INTERBOLSA Equity, Corporate + Government Debt
ROMANIA SNCDD-RASDAQ Equity
(National Company for Clearing, Settlement and
Depository for Securities)
BUDAPEST STOCK EXCHANGE REGISTRY Equity
NATIONAL BANK OF ROMANIA Treasury-Bills
RUSSIA MICEX GKOs
(Moscow Interbank Currency Exchange) (Gosudartvennye Kratkosrochnye
Obyazatelstva [T-Bills])
OFZs
(Obligatsyi Federalnogo Zaima
[Federal Loan Bonds])s
SINGAPORE CDP Equity + Corporate Debt and
(Central Depository Pte, Ltd.) Malaysian equities traded on CLOB
MONETARY AUTHORITY OF SINGAPORE Government Debt
SLOVAK REPUBLIC SCP Equity + Government Debt
(Stredisko Cennych Papiru)
NATIONAL BANK OF SLOVAKIA Treasury-Bills
SO. AFRICA CD Corporate + Government Debt
(Central Depository)
SO. KOREA KSD Equity, Corporate + Government Debt
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COMPULSORY DEPOSITORIES
AS OF SEPTEMBER 12, 1997
-------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
-------------------------------------------------------------------------------------------------------------------------
SPAIN SCLV Equity + Corporate Debt.
(Servicio de compensacion y Liquidacion de Valores)
-------------------------------------------------------------------------------------------------------------------------
CBEO
(Central Book Entry Office) Government Debt
-------------------------------------------------------------------------------------------------------------------------
SRI LANKA CDS Equity
(Central Depository System (Private) Ltd.)
-------------------------------------------------------------------------------------------------------------------------
SWEDEN VPC Equity, Corporate + Government Debt
(Vardepapperscentralen AB)
-------------------------------------------------------------------------------------------------------------------------
SWITZERLAND SEGA
(Schweizerische Effekten-Giro AG) Equity, Corporate + Government Debt
-------------------------------------------------------------------------------------------------------------------------
TAIWAN TSCD Equity + Government Debt
(Taiwan Securities Central Depository Co., Ltd.)
-------------------------------------------------------------------------------------------------------------------------
THAILAND TSDC Equity, Corporate + Government Debt
(Thailand Securities Depository Company Ltd.)
-------------------------------------------------------------------------------------------------------------------------
TUNISIA STICODEVAM Equity
(Societe Tunisienne Interprofessionnelle pour la
Compensacion et le Depot des Valeurs Mobilieres)
-------------------------------------------------------------------------------------------------------------------------
MINISTRY OF FINANCE Government Debt tradable on the stock
exchange (BTNBs)
-------------------------------------------------------------------------------------------------------------------------
CENTRAL BANK OF TUNISIA Government Debt tradable on the stock
exchange (BTCs)
-------------------------------------------------------------------------------------------------------------------------
TURKEY TAKAS BANK Equity + Corporate Debt
-------------------------------------------------------------------------------------------------------------------------
CENTRAL BANK OF TURKEY Government Debt
-------------------------------------------------------------------------------------------------------------------------
UNITED KINGDOM CREST Equity + Corp. Debt
-------------------------------------------------------------------------------------------------------------------------
CMO Sterling CDs & CP
(Central Moneymarket Office)
-------------------------------------------------------------------------------------------------------------------------
CGO Gilts
(Central Gilts Offices)
-------------------------------------------------------------------------------------------------------------------------
UNITED STATES DTC Equity + Corporate Debt
(Depository Trust Company)
-------------------------------------------------------------------------------------------------------------------------
PTC Mortgage Back Debt
(Participants Trust Company)
-------------------------------------------------------------------------------------------------------------------------
FED BOOK-ENTRY Government Debt.
-------------------------------------------------------------------------------------------------------------------------
ZAMBIA XxXX Equity + Government Debt
(XxXX Central Shares Depository Ltd.)
-------------------------------------------------------------------------------------------------------------------------
