Exhibit 23(g)
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GCA 98
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THE CHASE MANHATTAN BANK
GLOBAL CUSTODY AGREEMENT
between
THE FLEX PARTNERS INTERNATIONAL EQUITY FUND
and
THE CHASE MANHATTAN BANK
(LONDON BRANCH)
CONTENTS
Xxxxxx Xxxx
------ ----
1. INTENTION OF THE PARTIES ---------------------------------------------- 1
2. WHAT CHASE IS REQUIRED TO DO ------------------------------------------ 1
3. INSTRUCTIONS AND AUTHORISED PERSONS ----------------------------------- 5
4. BORROWINGS AND FOREIGN EXCHANGE --------------------------------------- 6
5. FEES EXPENSES AND OTHER AMOUNTS OWING TO CHASE ------------------------ 7
6. SUB-CUSTODIANS AND SECURITIES DEPOSITORIES ---------------------------- 7
7. BROKERS AND OTHER THIRD PARTIES --------------------------------------- 8
8. OMNIBUS ACCOUNTS ------------------------------------------------------ 8
9. ABOUT THE CUSTOMER ---------------------------------------------------- 8
10. CONFLICTS OF INTEREST ------------------------------------------------- 9
11. WHEN CHASE IS NOT LIABLE TO THE CUSTOMER ------------------------------ 9
12. INDEMNITY ------------------------------------------------------------- 10
13. UNITED KINGDOM REGULATORY MATTERS ------------------------------------- 11
14. TERMINATION ----------------------------------------------------------- 12
15. MISCELLANEOUS---------------------------------------------------------- 12
SCHEDULE 1: List of Sub-Custodians and markets used by Chase ---------- 16
SCHEDULE 2: Persons authorised to give Instructions ------------------- 19
SCHEDULE 3: Authorised Fund Managers/Advisers and Specimen Fund
Manager Mandate ------------------------------------------- 20
SCHEDULE 4: Form of Board Resolution ---------------------------------- 22
THIS CUSTODY AGREEMENT is made on the 8 day of June 1999* between THE CHASE
MANHATTAN BANK, London Branch ("Chase") of 125 London Wall, London EC2Y 5AJ,
regulated by The Securities and Futures Authority Limited; and THE FLEX PARTNERS
INTERNATIONAL EQUITY FUND (the "Customer") whose registered office/principal
place of business is at 0000 Xxxxxxxx Xxxxx, Xxxxxx, Xxxx 00000, XXX
1. INTENTION OF THE PARTIES
This Agreement sets out the terms governing custodial, settlement and other
associated services offered by Chase to the Customer.
2. WHAT CHASE IS REQUIRED TO DO
SET UP ACCOUNTS
A. (i) Subject to clause 2(A)(iii) Chase shall open in its books and
records in the name of the Customer, or at its reasonable request
in any other name, the following accounts (together the
"Accounts"):
(a) one or more securities accounts (the "SECURITIES ACCOUNTS")
evidencing any shares, stocks, debentures, bonds, notes,
mortgages or other like obligations and any certificates,
receipts, warrants or other instruments representing rights to
receive, purchase or subscribe for the same ("SECURITIES") held
by Chase or any branch of Chase on behalf of the Customer or
held, as described and defined in clause 6, by a Sub-Custodian or
Securities Depository for Chase on behalf of the Customer; and
(b) one or more cash accounts (the "CASH ACCOUNTS") for all cash
in any currency received by Chase or any Sub-Custodian or
Securities Depositary or other agents for the account of the
Customer.
(ii) At the request of the Customer, further Accounts may be opened in
the future, which will be subject to the terms of this Agreement,
unless agreed in writing otherwise at the time the further
Account is opened.
(iii)Xxxxx'x obligation to open Accounts pursuant to clause 2(A)(i)
is conditional upon Chase receiving such of the following
documents as Chase may require:
(a) a certified copy of the Customer's constitutional documents
as currently in force;
(b) a certified copy of a resolution of the Customer's board of
directors or equivalent governing body, substantially in the
form set out in Schedule 4;
(c) Xxxxx'x standard form fund manager mandate (in the form set
out in Appendix A), completed by any persons designated in
Schedule 3; and
(d) in the case of a Customer incorporated or established
outside England and Wales, a legal opinion from legal
counsel in the Customer's jurisdiction of incorporation or
establishment which is acceptable to Chase.
MAINTENANCE OF
SECUJUTIES AND CASH
AT BANK AND SUB-
CUSTODIAN
LOCATIONS
B. (i) Unless Instructions (as detailed in clause 3) require another
location acceptable to Chase:
(a) securities will be held in the country or jurisdiction in
which the principal trading market for the relevant
Securities is located, where such Securities may be
presented for payment, where such Securities were acquired,
or where such Securities are held; and
(b) cash will be held on the books of Chase or be credited to
accounts of institutions chosen by Chase in the country or
jurisdiction where such cash is the legal currency for
payment of public or private debts.
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* Date to be completed only when agreement is executed by Chase.
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(ii) Chase reserves the right to refuse to accept delivery of
Securities or cash in countries and jurisdictions other than
those referred to in Schedule I to this Agreement, which may be
amended by Chase from time to time, prior notice being given to
the Customer where practicable, and in any event notice being
given to the Customer as soon as reasonably practicable
thereafter.
SETTLEMENT OF TRADES
C. When Chase receives an Instruction which includes all information
required by Chase requesting settlement of a trade in Securities,
Chase shall use reasonable endeavours to effect such settlement as
instructed, save where Chase reasonably believes that such settlement
would be contrary to applicable law, regulation or market practice.
SEGREGATION OF
ASSETS
D. (i) Chase will identify in its books that the Securities belong to
the Customer (save as otherwise agreed by Chase and the
Customer).
(ii) Chase will require that Sub-Custodians identify in their own
books that the Securities belong to the customers of Chase (to
the extent permitted by applicable law, regulation, or market
practice), such that it is readily apparent that the Securities
do not belong to Chase.
CONTRACTUAL
SETTLEMENT DATE
ACCOUNTING
E. (i) Chase may, at its discretion, effect the following book entries
with respect to the settlement of trades:
(a) On sales: on the settlement day for the sale, credit the
Cash Account with the sale proceeds of the sale and transfer
the relevant Securities to an account pending settlement of
the trade if not already delivered.
(b) On purchases: on or before the settlement day for the
purchase, debit the Cash Account with the settlement monies
and credit a separate account. At the same time Chase will
post the Securities Account with the expected Securities
with a note to the effect that Chase is awaiting receipt,
pending actual receipt of such Securities. The Customer
shall not be entitled to the delivery of Securities which
are awaiting receipt until they have actually been received
by Chase or a Sub-Custodian.
(ii) Chase may (in its absolute discretion) reverse any debit or
credit made pursuant to clause 2(E)(i) and the Customer shall be
responsible for any direct or indirect costs or liabilities
resulting from such reversal. The Customer acknowledges that the
procedures described in this sub-clause are of an administrative
nature and do not amount to an agreement by Chase to make loans
and/or Securities available to the Customer.
ACTUAL SETTLEMENT
DATE ACCOUNTING
F. With respect to any sale or purchase transaction for which the Cash
Account or Securities Account is not credited on the contractual
settlement date as referred to in clause 2(E), Chase shall credit the
Cash Account or Securities Account with the proceeds of any sale or
exchange of Securities on the date on which such proceeds or
Securities are received by Chase.
INCOME COLLECTIONI
AUTOCREDIT
G. (i) Chase will credit the Cash Account with income and redemption
proceeds on Securities in accordance with the times notified by
Chase from time to time on or after the anticipated payment date,
net of any taxes which are withheld by Chase or any third party.
Where no time is specified for a particular market, income and
redemption proceeds on Securities will only be credited after
actual receipt and reconciliation.
(ii) Chase may reverse such entries upon oral or written notification
to the Customer that Chase believes that such amount will not be
received by Chase within a reasonable period.
(iii)Neither Chase nor its Sub-Custodians shall be obliged to
institute legal proceedings, file a claim or proof of claim in
any insolvency proceeding or take any action with respect to
collection of interest, dividends or redemption proceeds.
FRACTIONS/
REDEMPTIONS BY LOT
H. The Customer shall not be entitled to any fraction or other
entitlement arising as a result of Chase
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holding Securities in omnibus accounts, as described in clause 8,
which is not directly referable solely to the holding of the Customer,
and such fractions or entitlements shall be at the disposal of Chase.
On partial redemptions, Chase shall use whatever method it deems fair
to determine how shares will be redeemed.
PRESENTATION OF
COUPONS1
ISSUE OF
STATEMENTS ETC
I. Until Chase receives Instructions to the contrary, Chase is authorised
to and shall:
(i) present, upon notice to Chase, all Securities called for
redemption or otherwise matured, and all income and interest
coupons and other income items which call for payment upon
presentation;
(ii) execute in the name of the Customer such ownership and other
certificates as may be required to obtain payment in respect of
Securities;
(iii)exchange interim or temporary documents of title held in the
Securities Account for definitive ones.
CORPORATE ACTIONS
J. (i) Chase will use reasonable endeavours to obtain information
concerning the Securities which requires discretionary action by
the beneficial owner of the Securities (other than a proxy - see
clause 2(K)), including subscription rights, bonus issues, stock
repurchase plans and rights offerings, or legal notices or other
material intended to be transmitted to securities holders
("CORPORATE ACTIONS"), and Chase will use reasonable endeavours
to give the Customer notice of such Corporate Actions to the
extent that Xxxxx'x corporate actions department has actual
knowledge of a Corporate Action in time to notify its customers.
(ii) When a fights entitlement or a fractional interest resulting from
a rights issue, stock dividend, stock split, or similar Corporate
Action requiring discretionary action by the beneficial owner of
the Securities, is received which bears an expiration date, Chase
will endeavour to obtain instructions from the Customer, but if
Instructions are not received in time for Chase to take timely
action, or actual notice of such Corporate Action is received too
late to seek Instructions, Chase is authorised to sell the rights
entitlement or fractional interest and credit the proceeds to the
Cash Account (or a suspense account) or take such other action
with respect to the relevant Corporate Action as is notified to
the Customer from time to time.
(iii)Corporate Actions notices dispatched to the Customer may have
been obtained from sources which Chase does not control and may
have been translated or summarised. Although Chase believes such
sources to be reliable, Chase has no duty to verify the
information contained in such notices nor the faithfulness of any
translation or summary and therefore does not guarantee its
accuracy, completeness or timeliness, and shall not be liable to
the Customer for any loss that may result from relying on such
notice.
(iv) Neither Chase nor its Sub-Custodians or nominees shall execute
any form of proxy, or give any consent or take any action, in
relation to any Securities (other than as authorised under Clause
2(J)(ii)) except upon the Instructions of an Authorised Person.
PROXY VOTING
K. (i) Subject to and upon the terms of this sub-clause, Chase will
provide the Customer with information which it receives on
resolutions to be voted upon at meetings of holders of Securities
("NOTIFICATIONS"), and Chase will act in accordance with the
Customer's Instructions in relation to such Notifications ("THE
ACTIVE PROXY VOTING SERVICE").
(ii) The active proxy voting service is only available in certain
markets, details of which are available from Chase on request.
Provision of the active proxy voting service is conditional upon
receipt by Chase of a duly completed enrolment form, (including
an indication by the Customer of the markets in which the active
proxy voting service is to be provided) and in certain markets
additional documentation copies of which are also available from
Chase on request.
(iii)Chase will use reasonable endeavours to act upon Instructions to
vote on resolutions referred to in a Notification, provided
Instructions are received by Chase at its proxy voting
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department by the deadline referred to in the relevant
Notification. Further notice will not be given, nor will Chase
solicit Instructions from the Customer. It is the Customer's
obligation to monitor the agreed means of providing Notifications
to determine if new Notifications have been received. The
Customer acknowledges that in some cases the time to respond to
Notifications may be very limited. If information is received by
Chase at its proxy voting department too late to permit timely
voting by the Customer, Xxxxx'x only obligation is to provide, so
far as reasonably practicable, a Notification (or summary
information concerning a Notification) on an "information only"
basis.
(iv) Chase reserves the right to provide Notifications or parts
thereof in the language received. Chase will attempt in good
faith to provide accurate and complete Notifications, whether or
not translated. Upon request by the Customer, so far as the same
is available to Chase, backup information relating to
Notifications (such as annual reports, explanatory material
concerning resolutions, management recommendations or other
material relevant to the exercise of proxy voting fights) will be
provided to the Customer, but without translation.
(v) The Customer acknowledges that Notifications and other
information furnished pursuant to the active proxy voting service
("INFORMATION") are proprietary and may be subject to various
copyrights. Accordingly, the Customer shall not make any use of
such information except in connection with the active proxy
voting service.
(vi) In markets where the active proxy voting service is not available
or where Chase has not received a duly completed enrolment form
or other relevant documentation, Chase will not provide
Notifications to the Customer but will endeavour to act upon
Instructions to vote on resolutions at meetings of holders of
Securities where it is reasonably practicable for Chase (or its
Sub-Custodians or nominees as the case may be) to do so and where
such Instructions are received in time for Chase to take timely
action (the "passive proxy voting service").
(vii)The Customer acknowledges that the provision of any proxy voting
service (whether active or passive) may be precluded or
restricted under a variety of circumstances, including the
following;
(a) Securities are on loan;
(b) Securities are out for registration;
(c) Securities conversion or another corporate action is
pending;
(d) Securities are not held in a name subject to the control of
Chase or its Sub-Custodian, or are otherwise held in a
manner which precludes voting;
(e) local market regulations or practices or restrictions by the
issuer;
(f) Securities are held in a margin or collateral account at
Chase or another bank or broker;
(g) in certain countries Chase may be unable to vote proxies
except on a net basis (i.e. a net yes or no vote based on
voting instructions received from all its customers). Chase
will inform the Customer where this is the case.
TAX RECLAIMS
L. (i) Subject to the provisions of this sub-clause, Chase will apply
for a reduction of withholding tax and any refund of any tax paid
or tax credits which apply in each applicable market in respect
of income payments on Securities for the benefit of the Customer
which Chase believes may be available to that Customer.
(ii) The provision of a tax reclaim service by Chase in accordance
with this sub-clause is conditional upon Chase receiving from the
Customer or, to the extent the Securities are beneficially owned
by someone else, the beneficial owner of the Securities (a) a
declaration of its identity and place of residence and (b)
certain other documentation (pro forma copies of which are
available from Chase). The Customer acknowledges that, if Chase
does not receive such declarations, documentation and information
Chase will be unable to perform tax reclaim services, and
additional United Kingdom taxation will be deducted from all
income received in respect of the Securities issued outside the
United Kingdom and that USA non-resident alien tax will be
deducted from USA source income. The Customer shall provide to
Chase such documentation and information as it may require in
connection with
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taxation, and warrants that, when given, this information is true
and correct in every respect, not misleading in any way, and
contains all material information. The Customer undertakes to
notify Chase immediately if any information requires updating or
correcting.
(iii)The Customer is responsible for the payment of all taxes
relating to the Securities. Chase shall not be liable to the
Customer or any third party for any tax, fines or penalties
payable by the Customer, and shall be indemnified accordingly,
whether these result from the inaccurate completion of documents
by the Customer or any other person, or as a result of the
provision to Chase or any third party of inaccurate or misleading
information or the withholding of material information by the
Customer or any other person, or as a result from any delay of
any revenue authority or any other matter beyond the control of
Chase.
(iv) The Customer confirms that Chase is authorised to deduct from any
cash received or credited to the Cash Account any taxes or levies
required by any revenue or governmental authority for whatever
reason in respect of the Customer's Securities or Cash Accounts.
(v) Chase shall perform the services set out in this sub-clause only
with respect to taxation levied by the revenue authorities of the
countries notified to the Customer from time to time and Chase
may, by notification in writing, at its absolute discretion,
supplement or amend the markets in which the tax reclaim services
are offered. Other than as expressly provided in this sub-clause,
Chase shall have no responsibility with regard to the Customer's
tax position or status in any jurisdiction.
(vi) The Customer confirms that Chase is authorised to disclose any
information requested by any revenue authority or any
governmental body in relation to the Customer or the Securities
and/or Cash held for the Customer.
3. INSTRUCTIONS AND AUTHORISED PERSONS
AUTHORISED
PERSONS
A. As used in this Agreement the term "AUTHORISED PERSONS" means the
individuals designated in Schedule 2 by the Customer, and/or the fund
managers or advisers (the "FUND MANAGERS") designated in Schedule 3 by
the Customer and the individuals designated by each Fund Manager using
a mandate acceptable to Chase to act on behalf of the Customer. The
Customer confirms that each Fund Manager may designate individuals to
act on behalf of the Customer under this Agreement as if such
individuals had been designated by the Customer. Chase shall continue
to treat as Authorised Persons persons designated as such in
accordance with this clause until such time as Chase receives
Instructions from the Customer (or the Fund Manager in the case of
individuals designated by the Fund Manager) that any such individual
is no longer an Authorised Person. The Customer confirms that, unless
specified otherwise in the Schedules or the mandate from the Fund
Manager, each Authorised Person shall be authorised to give any
Instructions (as defined in clause 3(13)(ii)) in relation to all
Securities and Cash Accounts and in relation to foreign exchange
transactions and shall be authorised to give Instructions
notwithstanding that they may result in an overdraft on any Cash
Account.
INSTRUCTIONS
B. As used in this Agreement, the term "INSTRUCTIONS" means instructions
which (i) contain all necessary information required by Chase to
enable Chase to carry out the Instructions; (ii) are received by Chase
in writing or via Chase's electronic instruction system, SWIFT,
telephone, tested telex, facsimile or such other methods as are for
the time being agreed by the Customer (or an Authorised Person) and
Chase; and (iii) Chase believes in good faith have been given by an
Authorised Person or are transmitted with proper testing or
authentication pursuant to terms and conditions which Chase may
specify. Unless otherwise expressly provided, all Instructions shall
continue in full force and effect until cancelled or superseded.
ELECTRONIC
INSTRUCTIONS
C. The acceptance of any Instructions via Xxxxx'x electronic instruction
system is subject to the receipt by Chase of an electronic banking
agreement and software licence ("ELECTRONIC BANKING AGREEMENT") in
form and substance satisfactory to Chase. Chase shall have no
obligation to accept electronic Instructions unless it receives an
electronic banking agreement. Where the electronic banking agreement
is to be executed by a Fund Manager, Chase shall not be liable to the
Customer for any action taken or not taken by the Fund Manager
pursuant to, nor for the Fund
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Manager's administration of security devices provided to it under, the
electronic banking agreement and reserves the right to terminate the
electronic banking agreement with the Fund Manager without any
liability to the Customer therefor.
CONFIRMATION OF
ORAL INSTRUCTIONS1
SECURITY DEVICES
D. Any Instructions delivered to Chase by telephone or facsimile shall
promptly thereafter be confirmed in writing by an Authorised Person.
Each confirmation is to be clearly marked "Confirmation". Chase is
authorised to follow such Instructions notwithstanding the failure of
an Authorised Person to send such confirmation in writing or the
failure of such confirmation to conform to the telephone or facsimile
Instructions received. Either party may electronically record any
Instructions given by telephone, and any other telephone discussions.
The Customer shall be responsible for safeguarding any testkeys,
identification codes or other security devices which Chase shall make
available to the Customer or any Authorised Person.
ACTING ON
INSTRUCTIONS1
UNCLEAR
INSTRUCTIONS
E. Subject to the terms of this Agreement, Chase will only withdraw or
release Securities from the Securities Account in accordance with
Instructions. The Customer authorises Chase to accept and act upon any
Instructions received by it without enquiry. Chase may (without
prejudice to the foregoing) seek clarification or confirmation of an
Instruction from an Authorised Person and may decline to act upon an
Instruction if it does not receive clarification or confirmation
satisfactory to it. Chase shall not be liable for any loss arising
from any delay whilst it obtains such clarification or confirmation or
from exercising its right to decline to act in the absence of such
clarification or confirmation.
INSTRUCTIONS
CONTRARY TO
LAW/MARKET
PRACTICE
X. Xxxxx need not act upon Instructions which it reasonably believes to
be contrary to law, regulation or market practice and is under no duty
to investigate whether any Instructions comply with any applicable
law, regulation or market practice. Chase shall be entitled (but not
bound), if it deems possible to do so to amend an Instruction in such
a manner to comply with what Chase reasonably believes to be
applicable law, regulation or market practice.
CUT-OFF TIMES
X. Xxxxx has established cut-off times for receipt of some categories of
Instruction, which will be made available on request. If Chase
receives an Instruction after its established cut-off time, it will
endeavour to act upon the Instruction on the day requested, or
otherwise as soon as practicable after that day.
4. BORROWINGS AND FOREIGN EXCHANGE
OVERDRAFTS BEAR
INTEREST AT NORMAL
RATES
A. OVERDRAFTS
If a debit to any currency in the Cash Account results in a debit
balance in that currency then Chase may, at its discretion, advance an
amount equal to the overdraft and such an advance shall be deemed a
loan to the Customer, payable on demand, bearing interest at the rate
charged by Chase for similar overdrafts from time to time from the
date of such advance to the date of payment (both after as well as
before judgement) and otherwise on the terms on which Chase makes
similar overdrafts available from time to time.
FX FACILITIES MAY BE
GIVEN AT CHASE'S
DISCRETION
B. FOREIGN EXCHANGE TRANSACTIONS
To facilitate the administration of the Customer's trading and
investment activity, Chase is authorised, but shall not be obliged, to
enter into spot or forward foreign exchange contracts with the
Customer, or an Authorised Person for the Customer, and may also
provide foreign exchange contracts and facilities through its
affiliates or Sub-Custodians. Instructions, including standing
instructions, may be issued with respect to such contracts but Chase
may establish rules or limitations concerning any foreign exchange
facility made available. In all cases where Chase, its affiliates or
Sub-Custodians enter into a foreign exchange contract related to
Accounts, the terms and conditions then current for foreign exchange
contracts of Chase, its affiliate or Sub-Custodians and, to the extent
not inconsistent, this Agreement, shall apply to such transaction.
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5. FEES, EXPENSES AND OTHER AMOUNTS OWING TO CHASE
FEES -CHASE
AUTHORISED TO
DEDUCT FEES
A. The Customer agrees to pay Chase for its services under this Agreement
such amount as may be agreed upon in writing, together with Xxxxx'x
reasonable out-of-pocket or incidental expenses, including, but not
limited to, legal fees. Chase may increase such fees by not less than
thirty days' notice in writing to the Customer. Chase is authorised to
deduct amounts owing to it from the Cash Account monthly in arrears.
CHASE'S RIGHTIS OVER
SECURITIES
B. Without prejudice to Xxxxx'x rights under applicable law, until
satisfaction of all liabilities outstanding from time to time (whether
actual or contingent) of the Customer under or in connection with this
AGREEMENT ("LIABILITIES"), Chase shall have, and the Customer shall
grant to Chase, a charge, pledge and lien over the Securities credited
to the Securities Account and Chase shall be entitled without notice
to the Customer, to withhold delivery of such Securities, sell or
otherwise realise any such Securities and to apply the proceeds and
any other monies credited to the Cash Account in satisfaction of such
Liabilities. For this purpose, Chase may make such currency
conversions as may be necessary at its then current rates for the sale
and purchase of the relevant currencies.
CHASE HAS A RIGHT
OF SETOFF
C. Without prejudice to Xxxxx'x rights under applicable law, Chase may
set off against any amount owing by the Customer under this Agreement
any amount in any currency standing to the credit of any of the
Customer's accounts (whether current, deposit or otherwise) with Chase
anywhere. For this purpose, Chase shall be entitled to accelerate the
maturity of any fixed term deposits and to effect such currency
conversions as may be necessary at its current rates for the sale and
purchase of the relevant currencies.
6. SUB-CUSTODIANS AND SECURITIES DEPOSITORIES
APPOINTMEA7
X. Xxxxx is authorised under this Agreement to act through and hold the
Customer's Securities with sub-custodians, being at the date of this
Agreement the entities listed in Schedule I and/or such other entities
as Chase may appoint as sub-custodians ("SUB-CUSTODIANS"). Chase shall
use reasonable care in the selection and continued appointment of such
Sub-Custodians. In addition, Chase and each Sub-Custodian may deposit
Securities with, and hold Securities in, any securities depository,
settlement system, dematerialised book entry system or similar system
(together a "SECURITIES DEPOSITORY") on such terms as such systems
customarily operate. References to Sub Custodians in this Agreement
shall include branches and affiliates of Chase.
LIABILITY FOR SUB-
CUSTODIANS
B. (i) Chase shall be liable for any loss resulting from:
(a) the insolvency of any Sub-Custodian which is a branch or
subsidiary of Chase; or
(b) any act or omission of any Sub-Custodian, where such loss
results directly from the failure by the Sub-Custodian to
use reasonable care in the provision of custodial services
by it in accordance with the standards prevailing in the
relevant market or from the fraud or wilful default of such
Sub-Custodian in the provision of custodial services by it.
(ii) Chase shall not be liable for any act, omission or insolvency of
any Securities Depository.
(iii)Chase reserves the right to add, replace or remove
Sub-Custodians. Chase shall give notice, if practicable, of any
such act.
HOLDING OF
REGISTERED AND
BEARER SECURITIES
C. (i) Chase is authorised to hold:
(a) in bearer form, such Securities as are customarily held in
bearer form; and
(b) registered in the name of (at Xxxxx'x discretion) the
Customer or Chase or a Sub Custodian or any nominee of Chase
or a Sub-Custodian or a Securities Depository,
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such Securities as are customarily held in registered form.
(ii) Chase shall not be obliged to follow an Instruction to hold
Securities with, or have them registered or recorded in the name
of, any person not chosen by Chase.
7. BROKERS AND OTHER THIRD PARTIES
BROKER/THIRD PARTY
DEFAULT
X. Xxxxx shall not be responsible for any loss as a result of a failure
by any broker or any other third party beyond the control of Chase. In
particular, if a broker or any third party defaults in any obligation
to deliver Securities or pay cash, Chase shall have no liability to
the Customer for such non-delivery or payment. Payments of income and
settlement proceeds are at the risk of the account. If Chase, at the
Customer's request, appoints a broker or agent to effect any
transaction on behalf of a Customer, Chase shall have no liability
whatsoever in respect of such broker's duties or its actions,
omissions or solvency.
DELIVERY TO
BROKERS
X. Xxxxx shall not be liable for losses arising from an Instruction to
deliver Securities or cash to a broker, even if Chase might have
information tending to show that this course of action, or the choice
of a particular broker for a transaction, was unwise.
8. OMNIBUS ACCOUNTS
The Customer authorises Chase or its Sub-Custodian to hold Securities in omnibus
accounts on a fungible basis and will accept delivery of Securities of the same
class and denomination as those deposited with Chase or its Sub-Custodian.
9. ABOUT THE CUSTOMER
THE CUSTOMER
STATES THAT IT HAS
FULL AUTHORITY
TO PERFORM
UNDER THIS
AGREEMENT
A. The Customer represents and warrants that:
(i) it has full authority and power, and has obtained all necessary
authorisations and consents, to deposit and control the
Securities and cash in the Accounts, to use Chase as its
custodian in accordance with the terms of this Agreement and to
borrow money and enter into foreign exchange transactions;
(ii) this Agreement is its legal, valid and binding obligation,
enforceable in accordance with its terms and it has full power
and authority to enter into and has taken all necessary corporate
action to authorise the execution of this Agreement;
(iii)it has not relied on any oral or written representation made by
Chase or any person on its behalf, and acknowledges that this
Agreement sets out to the fullest extent the duties of Chase; and
(iv) the Securities and cash deposited in the Accounts are not subject
to any encumbrance or security interest whatsoever and the
Customer undertakes that, so long as Liabilities are outstanding,
it will not create or permit to subsist any encumbrance or
security interest over such Securities or cash.
CUSTOMER IS
LIABLE TO CHASE
EVEN IF IT IS
ACTING FOR
ANOTHER PERSON
B. Even if the Customer is acting as an agent in respect of any
transaction, without affecting any rights Chase might have against the
Customer's principal, Chase shall treat the Customer as a principal in
respect of such transactions.
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10. CONFLICTS OF INTEREST
CHASE PROVIDES
DIVERSE FINANCIAL
SERVICES AND MAY
GENERATE PROFITS
AS A RESULT
The Customer hereby authorises Chase to act hereunder notwithstanding
that:
(i) Chase or any of its divisions, branches or affiliates may have a
material interest in the transaction or that circumstances are
such that Chase may have a potential conflict of duty or interest
including the fact that Chase or any of its affiliates may:
(a) act as a market maker in the Securities to which the
Instructions relate;
(b) provide broking services to other customers;
(c) act as financial adviser to the issuer of such Securities;
(d) act in the same transaction as agent for more than one
customer;
(e) have a material interest in the issue of the Securities; or
(f) earn profits from any of the activities listed herein;
CHASE NO DUTY TO
ADVISE IF IT IS AWARE
THAT INSTRUCTIONS
MAY BE UNWISE
(ii) Chase or any of its divisions, branches or affiliates may be in
possession of information tending to show that the Instructions
received may not be in the best interests of the Customer. Chase
is not under any duty to disclose any such information.
11. WHEN CHASE IS NOT LIABLE TO THE CUSTOMER
MARKET AND
COUNTRY RISK
A. Investing in foreign markets may be a risky enterprise. The holding of
assets and cash in foreign jurisdictions may involve risks of loss or
other special features. Chase accepts no liability whatsoever for any
loss which results from:
(i) the general risks of investing; or
(ii) investing or owning assets in a particular country, including,
but not limited to, losses arising from nationalisation,
expropriation or other governmental actions; regulations of the
banking or securities industries, including changes in market
rules; currency restrictions, devaluations or fluctuations;
market conditions affecting the orderly execution of securities
transactions or affecting the value of assets.
FORCEMAJEURE
X. Xxxxx shall have no liability for any damage, loss, expense or
liability of any nature which the Customer may suffer or incur, caused
by an act of God, fire, flood, civil or labour disturbance, act of any
governmental authority or other act or threat of any authority (de
jure or de facto), legal constraint, fraud or forgery, malfunction of
equipment (including, without limitation. any computer or related
software), failure of or the effect of rules or operations of any
funds transfer system, inability to obtain or interruption of
communications facilities, or any cause beyond the reasonable control
of Chase (including without limitation, the non-availability of
appropriate foreign exchange).
ACTING IN GOOD
XXXXX
X. Xxxxx shall not be liable for acting on what it in good faith believes
to be Instructions or in relation to notices, requests, waivers,
consents, receipts, corporate actions or other documents which Chase
in good faith believes to be genuine and to have been given or signed
by the appropriate parties.
CHASE CAN TAKE
ADVICE
X. Xxxxx shall be entitled to rely on, and may act upon the advice of
professional advisers in relation to matters of law, regulation or
market practice (which may be the professional advisers of the
Customer), and shall not be liable to the Customer for any action
reasonably taken or omitted pursuant to such advice, save to the
extent that Chase is able to recover from such professional advisers
in respect of negligent advice given.
INVALID SECURITIES
X. Xxxxx shall not be liable to the Customer for the collection, deposit
or credit of invalid, fraudulent
9
or forged Securities.
DELIVERIES
X. Xxxxx shall not be liable for losses arising out of effecting delivery
or payment against an expectation of receipt, save where such delivery
or payment was contrary to local market practice.
CHASE'S LIABILITY
X. Xxxxx shall use reasonable care in performing its obligations under
this Agreement. Chase shall only be liable to the Customer to the
extent Chase has been negligent, fraudulent or is in wilful default,
of its duties as set out in this Agreement and to the extent provided
for in clause 6(13)(i). Chase and the Customer agree that, as a
genuine pre-estimate of loss, Xxxxx'x liability to the Customer shall
be determined based upon the value of any property as at the date of
the discovery of loss.
INDIRECT LOSSES
H. (i) Chase shall have no liability arising from this Agreement or from
any obligations which relate to this Agreement (including, but
not limited to, obligations in tort) for any indirect, special,
punitive or consequential loss or damage.
(ii) Clause 11 H(i) above does not apply to any loss or damage caused
by fraud on the part of Chase or to death or personal injury
arising from any failure on the part of Chase to take reasonable
care or exercise reasonable skill.
(iii) For the purposes of this Clause 11 H:
"consequential loss or damage" means loss or damage of a kind or
extent which was not reasonably foreseeable at the time this Agreement
was entered into as a serious possibility in the event of the breach
of obligation in question.
"special loss or damage" means loss or damage of a kind or extent
which arises from circumstances special to the Customer and not from
the ordinary course of things, whether or not those circumstances were
known to Chase either at the time this Agreement was entered into or
later.
12. INDEMNITY
A. The Customer undertakes to indemnify Chase and its Sub-Custodians and their
respective nominees, directors, officers, agents and employees (the
"indemnitees"), and to keep them indemnified, from any costs, claims,
losses, liabilities, damages, expenses, fines, penalties, taxes and other
matters ("Losses") that may be imposed on, incurred by or asserted against
the indemnitees or any of them:
(i) in respect of the following of any Instructions or other directions
upon which the indemnitee is authorised to act or rely pursuant to the
terms of this Agreement; or
(ii) arising as a result of their status as a holder of record of
Securities.
B. In addition to and without limitation to Clause 12A the Customer also
agrees to indemnify the indemnitees or any of them against all and any
Losses that may be imposed on, incurred by or asserted against the
indemnitees:
(i) arising as a result of a breach of the obligations, warranties and
representations of the Customer (or its agent) under this Agreement,
or
(ii) otherwise arising under or in connection with this Agreement
including, without limitation, the costs of Chase defending itself
successfully against alleged fraud, negligence or wilful default of
itself or a Sub-Custodian
save in respect of the fraud, negligence or wilful default of Chase and
save in respect of loss arising from the action indemnitee for which Chase
is liable pursuant to, and in accordance with, this Agreement.
10
13. UNITED KINGDOM REGULATORY MATTERS
MEANING OF TERMS
A. As used in this clause:
(i) the term "SFA" means The Securities and Futures Authority
Limited, and the term "IMRO" means the Investment Management
Regulatory Organisation Limited and (in each case) any other
self-regulating organisation (including any successor or
replacement organisation following amalgamation, merger or
otherwise) recognised under the Financial Services Act, 1986
(including any statutory modification or re-enactment thereof or
any regulations or orders made thereunder) of which, as the case
may be, Chase or the Customer is for the time being a member and
to whose regulatory authority it is subject; and
(ii) the term "Rules" means the rules and regulations of the SFA or
IMRO (as appropriate) as amended, varied or substituted from time
to time.
CHASE -APPLICABLE
SRO RULES
B. (i) Chase is regulated by the SFA in the provision of services
pursuant to this Agreement (including without limitation, in
relation to the appointment of Sub-Custodians, Securities
Depositories and agents). Accordingly, the rights and obligations
of Chase under the provisions of this Agreement shall be read and
construed as subject to and permitted by the SFA's Rules.
(ii) For the purposes of the SFA's Rules, Chase shall treat the
Customer as a non-private customer and, notwithstanding that the
Customer may be acting as agent on behalf of another person, the
Customer alone shall be treated as Xxxxx'x customer.
SFA NOTIFICATIONS
C. The Rules of the SFA require Chase to inform the Customer that:
(i) where Securities are held overseas there may be different
settlement legal and regulatory requirements from those applying
in the LJK, together with different practices for the separate
identification of Securities. Chase will from time to time inform
the Customer of matters relevant to each jurisdiction referred to
in Schedule I as amended in accordance with this Agreement;
(ii) in providing the services described in this Agreement, Chase
intends holding Securities with Sub-Custodians who are in the
same group as Chase. The Sub-Custodians who are in the same group
as Chase are identified by an asterisk (*) next to their name in
Schedule 1;
(iii)although Securities will ordinarily be registered in the name of
a nominee, Chase may from time to time (due to the nature of law
or market practice or where it is in the Customer's best
interests or it is not feasible to do otherwise) register or
record securities in the name of a Sub-Custodian or Chase itself
If Securities are registered in Chase's name, the Securities in
question may not be segregated from assets of Chase and in the
event of default by Chase, customers' assets may not be as well
protected. However, arrangements with the SubCustodians are such
that our customer securities with them shall be in a separate
account containing assets belonging only to the customers of
Chase and not Xxxxx'x proprietary assets. In any event, Chase
will notify the Customer of the registration name used in respect
of Securities;
(iv) Chase accepts the same level of liability for any nominee company
controlled by Chase or an affiliate as for itself,
(v) the omnibus accounts referred to in Clause 8 above are a form of
pooling;
(vi) if the Customer instructs Chase to hold Securities with or
register or record Securities in the name of a person not chosen
by Chase, the consequences of doing so are at the Customer's own
risk and Chase shall not be liable therefor.
CUSTOMER -
APPLICABLE SRO
D. (i) Where the Customer is regulated by the SFA and Chase is appointed
by the Customer as an eligible custodian for the purposes of the
SFA's Rules, it is agreed that:
11
RULES
(a) the title of the Securities Account is such that it
indicates that any Securities credited to it do not belong
to the Customer;
(b) Chase will hold or record Securities in the Securities
Account, which belong to the Customer's own customer,
separate from Xxxxx'x own securities;
(c) the statement referred to in Clause 15G will be delivered to
the Customer within 20 business days of the date of the
statement and will detail the description and amount of
Securities credited to the Securities Account;
(d) Chase will not claim any lien, right of retention or sale
over the Securities except where the beneficial owner (or
the Customer where it has the capacity to do so) has
consented or in respect of any charges relating to the
administration or custody of the Securities, and Clause 5B
shall be limited accordingly.
(ii) Where the Customer is regulated by IMRO and Chase is appointed by
the Customer as an eligible custodian for the purposes of IMRO's
Rules, you are notified that:
(a) Securities will be registered collectively in the same name
for all of Xxxxx'x customers and therefore your entitlements
may not be identifiable by separate certificates or other
physical documents of title, and that, should Chase default,
any shortfall in Securities so registered may be shared pro
rata among all customers of Chase;
(b) Securities may not be lent to, or deposited by way of
collateral with, a third party and money will not be
borrowed on the Customer's behalf against security of
Securities;
(c) Chase will maintain records of Securities which meet the
requirements of IMRO Rule 5.1(6);
(d) Chase will not have or claim any lien or right of retention
over, or any fight to sell, any Securities, except in
relation to any unpaid sum due to Chase in connection with
services rendered the provision of which has been authorised
by the Customer, and Clause 5B will be limited accordingly.
14. TERMINATION
Either party may terminate this Agreement on sixty days' notice in writing to
the other party. If the Customer gives notice of termination, it must provide
full details of the persons to whom Chase must deliver Securities and cash. If
Chase gives notice of termination, then the Customer must, within sixty days,
notify Chase of details of its new custodian, failing which Chase may elect (at
any time after the sixty day notice period) either to retain the Securities and
cash until such details are given, continuing to charge fees due, or deliver the
Securities and cash to the Customer. Chase shall in any event be entitled to
deduct any amounts owing to it prior to delivery of the Securities and cash
(and, accordingly, Chase shall be entitled to sell Securities and apply the sale
proceeds in satisfaction of amounts owing to it). Termination shall not affect
any of the liabilities either party owes to the other arising under this
Agreement prior to such termination.
15. MISCELLANEOUS
NOTICES
A. Notices (other than Instructions) shall be served by registered mail
or hand delivery to the address of the respective parties as set out
on the first page of this Agreement, unless notice of a new address is
given to the other party in writing. Notice shall not be deemed to be
given unless it has been received.
SUCCESSORS AND
ASSIGNS
B. This Agreement shall be binding on each of the parties' successors and
assigns, but the parties agree that neither party can assign its
rights and obligations under this Agreement without the prior written
consent of the other party, which consent shall not be unreasonably
withheld.
INTERPRETATION
C. Headings, marginal notes and paragraphs are for convenience only and
are not intended to affect
12
interpretation. References to clauses are to clauses of this Agreement
and references to subclauses and paragraphs are to sub-clauses of the
clauses and paragraphs of the sub-clauses in which they appear.
EATIRE AGREEMENT
D. This Agreement, including the Schedules hereto, sets out the entire
Agreement between the parties and this Agreement supersedes any other
agreement relating to custody, whether oral or written. Amendments
must be in writing and signed by both parties.
INTERPLEADER
CLAUSE. WHAT
HAPPENS IF THERE IS
A DISPUTE IN
RELATION TO THE
ASSETS HELD IN THE
ACCOUNT
E. In the event of any dispute between or conflicting claims by any
person or persons with respect to Securities held in the Securities
Account or cash in the Cash Account, Chase shall be entitled to apply
to a court of law to determine the rights of such persons and
meanwhile at its option to refuse to comply with any and all claims,
demands or Instructions with respect to such Securities or cash and
other property related thereto so long as such dispute or conflict
shall continue. Chase shall not be liable or become liable in any way
for its refusal to comply with such conflicting claims, or demands or
Instructions. Chase shall be entitled to refuse to act until either:
(i) such conflicting or adverse claims or demands shall have been:
(a) finally determined in a court of competent jurisdiction; or
(b) settled by agreement between the conflicting parties and
Chase shall have received evidence in writing satisfactory
to Chase of such agreement; or
(ii) Chase shall have received an indemnity and/or security
satisfactory to Chase sufficient to save it harmless from and
against any or all loss, liability or expense which Chase may
incur by reason of its actions.
LONDON ACCOUNTS
F. Any amount standing to the credit of the Cash Accounts held with Chase
is held by it as a banker and is payable exclusively by the London
branch of Chase in its stated currency, subject to compliance with any
applicable laws, regulations, governmental decrees or similar orders.
Chase is a member of the United Kingdom Deposit Protection Scheme
("the Scheme") established under the Banking Act 1987 (as amended).
The Scheme provides that in the event of Xxxxx'x insolvency payments
may be made to certain customers of Chase's London branch. Payments
under the Scheme are limited to 90% of a depositor's total cash
deposits subject to a maximum payment to any one depositor of E18,000
(or ECU 20,000 if greater). Most deposits denominated in sterling and
other European Economic Area Currencies and ECU made with Chase within
the United Kingdom are covered. Further details of the Scheme are
available on request
STATEMENTS
X. Xxxxx shall issue statements to the Customer at times mutually agreed
identifying the Securities and cash in the Accounts, and otherwise on
request. A certificate or statement by Chase as to any Liabilities or
any Securities or cash held in any account shall be conclusive in the
absence of manifest error. Prices and other information contained in
any statement sent to the Customer have been obtained from sources
Chase believes to be reliable. Chase does not, however, make any
representation as to the accuracy of such information, nor that the
prices specified necessarily reflect the proceeds that would be
received on a disposal of the relevant Securities. References in this
Agreement to statements include any statements in electronic form.
DISCLOSURE OF
INFORMATION
X. Xxxxx shall only disclose any information relating to the Customer or
the Securities and/or cash held for the Customer as required by law or
regulation or otherwise with the consent of the Customer.
CONFIDENTIALITY
I. The Customer agrees to keep this Agreement confidential and other than
where disclosure is required by law or regulation will only disclose
it (or any part of it) with the prior written consent of Chase.
CHASE IS NOT AN
ADVISER
J. In providing the services hereunder the Customer acknowledges that
Chase is not providing any legal, tax or investment advice.
INSURANCE
X. Xxxxx need not maintain any insurance cover for the benefit of the
Customer.
13
USE OF THIRD
PARTIES
X. Xxxxx may provide services under this Agreement through third parties
who may be subsidiaries or affiliates of Chase provided (subject to
the terms of this Agreement) that Chase will be liable for the
performance of any third party to the same extent as Chase would have
been if it performed. such services itself.
ACCESS TO XXXXX'X
RECORDS
X. Xxxxx shall, on written request, allow the auditors of the Customer
such reasonable access to its records relating to the Accounts as such
auditors may reasonably require in connection with the audit of the
Customer.
GLOBAL CUSTODY
AGREEMENT AND
MANDATE
N. If and to the extent that there is any inconsistency between the
provisions of any mandate between Chase and the Customer and this
Agreement, the provisions of this Agreement shall prevail.
AFFILIATE AND
SUBSIDIARY
O. In this Agreement the term "AFFILIATE" of Chase means an entity that
is a subsidiary or holding company, or a subsidiary of a holding
company, of Chase and the terms "SUBSIDIARY" and "HOLDING COMPANY"
have the meanings given them in Section 736 of the Companies Act 1985
(or any statutory modification or re-enactment thereof).
GOVERNING LAW
AND JURISDICTION
P. This Agreement shall be governed by and construed in accordance with
English law. The Customer hereby appoints Xxxxxxx Xxxxxxx* of
Commercial Union** as its agent for service of process. If the agent
referred to in this sub-clause (or any replacement agent appointed
pursuant to this sub-clause) at any time ceases for any reason to act
as such, the Customer shall appoint a replacement agent to accept
service having an address for service in England or Wales and shall
notify Chase of the name and address of the replacement agent; failing
such appointment and notification, Chase shall be entitled by notice
to the Customer to appoint such a replacement agent to act on the
Customer's behalf.
AS WITNESS the hand of the duly authorised officers of the parties hereto:
[PLEASE TURN TO PAGE 22 TO SIGN]
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Non-English customers please complete the name of a person within England
and Wales willing to accept service of any process on your behalf. In
respect of English customers, N/A should be inserted.
** Please complete address of Agent.
14
SCHEDULE I
List of Sub-Custodians and markets used by Chase
--------------------------------------------------------------------------------
COUNTRIES/MARKETS SUB-CUSTODIAN
--------------------------------------------------------------------------------
Argentina *The Chase Manhattan Bank
Buenos Aires
--------------------------------------------------------------------------------
Australia *The Chase Manhattan Bank
Sydney
--------------------------------------------------------------------------------
Austria Creditanstalt - Bankverein
Vienna
--------------------------------------------------------------------------------
Bahrain The British Bank of the Middle East
Manama
--------------------------------------------------------------------------------
Bangladesh Standard Chartered Bank
Dhaka
--------------------------------------------------------------------------------
Belgium Generale Bank
Brussels
--------------------------------------------------------------------------------
Bermuda The Bank of Bermuda Ltd
Xxxxxxxx
--------------------------------------------------------------------------------
Botswana Barclays Bank of Botswana Limited
Gaborone
--------------------------------------------------------------------------------
Brazil Citibank N.A.
Sao Paulo
--------------------------------------------------------------------------------
Bulgaria ING Bank
Sofia
--------------------------------------------------------------------------------
Canada The Royal Bank of Canada, Toronto
Canada Trust, Toronto
--------------------------------------------------------------------------------
Chile Citibank X.X.
Xxxxxxxx
--------------------------------------------------------------------------------
China (Shenzhen and Shanghai) The Hong Kong and Shanghai Banking Corporation
Ltd
--------------------------------------------------------------------------------
Colombia Cititrust Colombia S.A. Sociedad Fiduciaria
Santafe de Bogota
--------------------------------------------------------------------------------
Croatia Privredna Banka Zagreb d.d.
Zagreb
--------------------------------------------------------------------------------
Cyprus Barclays Bank plc
Nicosia
--------------------------------------------------------------------------------
Czech Republic Ceskoslovenska Obchodni Banka, A.S.
Prague
--------------------------------------------------------------------------------
Denmark Den Danske Bank
Copenhagen
--------------------------------------------------------------------------------
Ecuador Citibank N.A.
Quito
--------------------------------------------------------------------------------
Egypt Nationale Bank of Egypt
Cairo
--------------------------------------------------------------------------------
Estonia HansaBank
Tallinn (not available for mutual funds)
--------------------------------------------------------------------------------
Eurobonds Cedel S.A., Luxembourg
A/C The Chase Manhattan Bank London
--------------------------------------------------------------------------------
Euro CDs First Chicago Clearing Centre
London
--------------------------------------------------------------------------------
Finland Xxxxxx Bank KOP
Helsinki
--------------------------------------------------------------------------------
France Banque Paribas
Paris
Societe Generale
Paris
--------------------------------------------------------------------------------
Germany Dresdner Bank A.G.
Frankfurt
--------------------------------------------------------------------------------
15
--------------------------------------------------------------------------------
Ghana Barclays Bank of Ghana
Accra
--------------------------------------------------------------------------------
Greece Barclays Bank plc
Athens
--------------------------------------------------------------------------------
Hong Kong *The Chase Manhattan Bank
Hong Kong
--------------------------------------------------------------------------------
Hungary Citibank Budapest Rt.
Budapest
--------------------------------------------------------------------------------
India The Hong Kong and Shanghai Banking Corporation
Limited Bombay
Deutsche Bank AG, Bombay
--------------------------------------------------------------------------------
Indonesia The Hong Kong and Shanghai Banking Corporation
Limited
Jakarta
--------------------------------------------------------------------------------
Ireland Bank of Ireland
Dublin
--------------------------------------------------------------------------------
Israel Bank Leumi Le-Israel B.M.
Tel Aviv
--------------------------------------------------------------------------------
Italy Banque Paribas
Milan
--------------------------------------------------------------------------------
Ivory Coast Societe Generale De Banques En Cote D'Ivoire
(SGBCI)
Abidjan
--------------------------------------------------------------------------------
Japan The Fuji Bank Limited
Tokyo
--------------------------------------------------------------------------------
Jordan Arab Bank Limited
Amman
--------------------------------------------------------------------------------
Kenya Barclays Bank of Kenya
Nairobi
--------------------------------------------------------------------------------
Latvia HansaBank - Latvija
Riga
--------------------------------------------------------------------------------
Lebanon The British Bank of the Middle East
Ras-Beirut
--------------------------------------------------------------------------------
Lithuania Vilniaus Bankas AB
Vilnius
--------------------------------------------------------------------------------
Luxembourg Banque Generale du Luxembourg S.A.
Luxembourg
--------------------------------------------------------------------------------
Malaysia *The Chase Manhattan Bank
Kuala Lumpur
--------------------------------------------------------------------------------
Mauritius The Hong Kong & Shanghai Banking Corporation
Limited
Mauritius
--------------------------------------------------------------------------------
Mexico *The Chase Manhattan Bank (Equities) Mexico S.A.
Banco National de Mexico (Goverment bonds)
Mexico
--------------------------------------------------------------------------------
Morocco Banque Commerciale du Maroc
Casablanca
--------------------------------------------------------------------------------
Namibia Standard Bank Namibia Limited
Windhoek
--------------------------------------------------------------------------------
Netherlands ABN Amro N.V.
De Breda
--------------------------------------------------------------------------------
New Zealand National Nominees Limited
Auckland
--------------------------------------------------------------------------------
Norway Den Norske Bank
Oslo
--------------------------------------------------------------------------------
Oman The British Bank of the Middle East
Muscat
--------------------------------------------------------------------------------
Pakistan Citibank N.A., Karachi
Deutsche Bank, Karachi
--------------------------------------------------------------------------------
16
--------------------------------------------------------------------------------
Peru Citibank N.A.
Lima
--------------------------------------------------------------------------------
Philippines The Hong Kong and Shanghai Banking Corporation
Limited
Manila
--------------------------------------------------------------------------------
Poland Bank Handlowy X. Xxxxxxxx S.A. (Mutual Fund)
Bank Polska Kasa Opieki S.A.
Warsaw
--------------------------------------------------------------------------------
Portugal Banco Espirito Santo e Comercial de Lisboa
Lisbon
--------------------------------------------------------------------------------
Romania ABN-AMRO Bank (Romania) S.A.
Bucharest
ING Bank
Bucharest
--------------------------------------------------------------------------------
Singapore Standard Chartered Bank
Singapore
--------------------------------------------------------------------------------
Slovak Republic Ceskoslovenska Obchodni Banka, A.S.
Bratislava
--------------------------------------------------------------------------------
Slovenia Banka Creditanstalt d.d. Ljubljana
Ljubljana
--------------------------------------------------------------------------------
South Africa Standard Bank of South Africa
Johannesburg
--------------------------------------------------------------------------------
South Korea The Hong Kong and Shanghai Banking Corporation
Limited
Seoul
--------------------------------------------------------------------------------
Spain *The Chase Manhattan Bank
Madrid
--------------------------------------------------------------------------------
Sri Lanka The Hong Kong and Shanghai Banking Corporation
Limited
Colombo
--------------------------------------------------------------------------------
Swailand Stanbic Bank of Swaziland Limited
Mbabane
--------------------------------------------------------------------------------
Sweden Skandinaviska Enskilda Banken
Stockholm
--------------------------------------------------------------------------------
Switzerland Union Bank of Switzerland
Zurich
--------------------------------------------------------------------------------
Taiwan *The Chase Manhattan Bank
Taipei
--------------------------------------------------------------------------------
Thailand *The Chase Manhattan Bank
Bangkok
--------------------------------------------------------------------------------
Tunisia Banque Internationale Arabe de Tunisie
Tunis
--------------------------------------------------------------------------------
Turkey *The Chase Manhattan Bank
Istanbul
--------------------------------------------------------------------------------
United Kingdom *The Chase Manhattan Bank
London
--------------------------------------------------------------------------------
Uruguay The First National Bank of Boston
Montevideo
--------------------------------------------------------------------------------
United States *The Chase Manhattan Bank
New York
--------------------------------------------------------------------------------
Venezuela Citibank N.A.
Caracas
--------------------------------------------------------------------------------
Zambia Barclays Bank of Zambia,
Lusaka
--------------------------------------------------------------------------------
Zimbabwe Barclays Bank of Zimbabwe Limited
Harare
--------------------------------------------------------------------------------
N.B. ADDITIONAL OPERATIONAL/LEGAL DOCUMENTATION MAY BE REQUIRED IN CERTAIN
MARKETS. PLEASE REFER TO YOUR RELATIONSHIP MANAGER.
17
SCHEDULE 2
Persons authorised to give Instructions
--------------------------------------------------------------------------------------------------------------
INITIAL IF AUTHORISED
TO GIVE ORAL LIMITATION IN
FULL NAME AND OFFICIAL POSITION INSTRUCTIONS* AUTHORITY** SPECIMEN SIGNATURE
--------------------------------------------------------------------------------------------------------------
Xxxxxx X. Xxxx, Treasurer TEL Fax only /s/ Xxx Xxxx
--------------------------------------------------------------------------------------------------------------
Xxxxx X. XxXxxxxx, Asst. Treasurer BEM Fax only /s/ Xxxxx X. XxXxxxxx
--------------------------------------------------------------------------------------------------------------
Xxxxxx Xxxxxx, Xx. Fund Acct. GJH Fax only /s/ Xxxxxx X. Xxxxxx
--------------------------------------------------------------------------------------------------------------
Xxxxxxx X. Xxxxxx, Xx. Financial Analyst DRC Fax only /s/ Xxxxxxx X. Xxxxxx
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------
Signed for and on behalf of the Customer by:
/s/ Xxx Xxxx
----------------------------------------
Name (print): /s/ Xxx Line
Position: Treasurer
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Rule out box if not authorised to give oral instructions.
** "All", "No limit" or similar phrases would include authority to issue
instructions relating to foreign exchange.
18
SCHEDULE 3
AUTHORISED FUND MANAGERS/ADVISERS
Persons authorised as fund managers will also have to complete an authority in
similar form to Schedule 2, but with some additional wording. A specimen copy is
attached as Appendix A.
------------------------------------------------------------------------------------------------
FULL NAME OF FUND ADDRESS ACCOUNTS FOR WHICH ANY LIMITATIONS ON
MANAGER/ADVISER AUTHORISED* AUTHORITY-
------------------------------------------------------------------------------------------------
Commercial Union Investment St. Helen's The Flex Partners None
Management Limited I Undershaft International Equity
London. EC3P 3DQ Fund
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------
Signed for and on behalf of the Customer by:
----------------------------------------
Name (print):
Position:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* If left blank, the Fund Manager is authorised to give instructions on ALL
accounts.
** "All" or "No limit" or similar phrases would include authority to issue
instructions relating to foreign exchange,
19
Appendix A
SPECIMEN FUND MANAGER MANDATE
TO: THE CHASE MANHATTAN BANK
GLOBAL CUSTODY DIVISION
DATE:_________________________
Dear Sirs,
Re: Global Custody for ______________________________(the "Customer").
We _____________ warrant that we have been appointed by the Customer as its fund
manager for the account(s) detailed below and that we have full authority from
the Customer to give instructions in respect of all transactions relating to the
account(s) including for foreign exchange and notwithstanding that the
instructions may result in an overdraft on any cash account. We agree to
indemnify and hold Chase harmless for any losses, costs or liabilities it or its
agents incur as a result of any breach of this warranty.
We set out the names and specimen signatures of those individuals authorised by
us to operate accounts and give instructions on behalf of the Customer in
respect of the accounts.
Any instructions given to Chase by telephone or facsimile shall promptly
thereafter be confirmed by ourselves in writing or other authenticated means
acceptable to Chase and each confirmation shall be clearly marked
"Confirmation". We agree to indemnify and hold Chase harmless for any failure to
send such confirmation or the failure of such confirmation to conform to the
telephone or facsimile instructions received.
This mandate supersedes any previous mandate provided by us to The Chase
Manhattan Bank in our capacity as fund manager for the Customer. This mandate is
governed by English Law.
Yours faithfully
Signed by: _____________________________
Duly authorised signatory
for and on behalf of
Account(s) covered by this Mandate:
AUTHORISED INDIVEDUALS
----------------------
--------------------------------------------------------------------------------
LIMITATION IN
INSTRUCTION AUTHORITY
METHOD VALUE/
FULL NAME AND WRITTEN AND/OR TRANSACTION SPECIMEN
OFFICIAL POSITION ORAL TYPE SIGNATURE
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
20
PROPOSED RESOLUTION
THE FLEX-PARTNERS TRUSTEES
MAY 20,1999
WHEREAS, the Board of Trustees of The Flex-Partners has determined that it
is reasonable to rely on The Chase Manhattan Bank ("Chase") to perform the
responsibilities to be delegated to Chase as the "Foreign Custody Manager" of
the International Equity Fund (the "Fund") pursuant to paragraphs (c)(1), (c)(2)
and (c)(3) of Rule 17f-5 promulgated under the Investment Company Act of 1940;
NOW, THEREFORE, BE IT:
RESOLVED, that the Board of Trustees hereby delegates to Chase with respect
to the Fund, subject to paragraph (b) of Rule 17f-5, the responsibilities as
Foreign Custody Manager set forth in paragraphs (c)(1), (c)(2) and (c)(3) of
Rule 17f-5, with respect to foreign assets of the Fund held outside the United
States.
FURTHER RESOLVED, that subject to the condition that Chase accept such
delegation and its appointment as Foreign Custody Manager of the Fund, as
provided in Rule 17f-5(b) and (c) promulgated under the Investment Company Act
of 1940, the Fund enter into a Global Custody Agreement (the "Agreement") with
Chase substantially in the form of the Agreement presented to this meeting, with
any amendments necessary to reflect such delegation and appointment, and with
such other amendments, consistent with these resolutions, as may be recommended
or approved by counsel; that the terms of the Agreement as so amended are hereby
approved; that the President, any Vice President or the Secretary/Treasurer of
the Trust is hereby authorized to execute and deliver the Agreement as so
amended on behalf of the Fund; and that a copy of the Agreement, as so amended
and executed, is to be filed with the permanent records of the Trust.
FURTHER RESOLVED, that the appropriate officers of the Trust be, and each
of them hereby is, authorized to take such other actions, and to execute,
certify and deliver such other instruments, certificates, agreements, and
documents, including without limitation, any (i) power of attorney to be given
by the Fund to Chase to provide tax reclaim services and (ii) electronic banking
agreement to be executed by the Fund to enable it to give Chase instructions by
electronic means, as they or any of them deem necessary or appropriate to enable
the Fund to carry out the intent and to accomplish the purpose of the foregoing
resolutions and to consummate the contemplated transactions.
/s/ Xxxxxx X. Xxxxxx
-----------------------------------
Secretary
21
SIGNED by
/s/ Xxxx X. Xxxxxx
For and on behalf of
THE CHASE MANHATTAN BANK
Name: Xxxx X. Xxxxxx
Position: Vice President
SIGNED by
/s/ Xxx Line
For and on behalf of
The Flex Partners International Equity Fund
*Name: Xxx Xxxx
*Position: Treasurer
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
* Please complete name and position in block capitals. If two signatures
required, please sign side by side.
22
UK Regulatory Matters - For Your Information
--------------------------------------------
SFA Compliance
--------------
Rule 409 of the SFA Rules requires customer agreements between custodians and
their customers to contain certain provisions and Rule 4-110 requires certain
risk disclosures to be made. For your information the relevant matters may be
found in the Agreement as follows:
--------------------------------------------------------------------------------
SFA RULE/GUIDANCE RELEVANT CLAUSE
--------------------------------------------------------------------------------
4-109(l)(a) 13C(iii)
--------------------------------------------------------------------------------
4-109(l)(b) 2G, 21
--------------------------------------------------------------------------------
4-109(i)(c) 2J
--------------------------------------------------------------------------------
4-109(l)(d) 2J
--------------------------------------------------------------------------------
4-109(l)(e) 2K
--------------------------------------------------------------------------------
4-109(l)(f) 613, 1 IF 13 C(iv),
--------------------------------------------------------------------------------
4-109(2) 13(v)
--------------------------------------------------------------------------------
4-109(3) 3
--------------------------------------------------------------------------------
4-109(4) 5B, 131)(i)(d), 13D(ii)(d)
--------------------------------------------------------------------------------
4-110(l) 13C(i)
--------------------------------------------------------------------------------
4-110(2) 13C(vi)
--------------------------------------------------------------------------------
Where the Customer is a member of the SFA and Chase is appointed as an eligible
custodian for the purposes of the SFA's Rules, Rule 4-111 requires that the
Customer agrees certain matters with its eligible custodian. For your
information the relevant matters may be found in this Agreement as follows:
--------------------------------------------------------------------------------
SFA RULE/GUIDANCE RELEVANT CLAUSE
--------------------------------------------------------------------------------
4-111 (a) 13D(i)(a)
--------------------------------------------------------------------------------
4-111 (b) 3E
--------------------------------------------------------------------------------
4-111 (c) 13D(i)(b)
--------------------------------------------------------------------------------
4-111 (d) 13D(i)(c)
--------------------------------------------------------------------------------
4-111 (e) 13D(i)(d)
--------------------------------------------------------------------------------
4-111(f) 6B, 11G
--------------------------------------------------------------------------------
4-111 (g) 13C(iii)
--------------------------------------------------------------------------------
4-111 (h) 3
--------------------------------------------------------------------------------
UK Regulatory Matters - For Your Information
--------------------------------------------
IMRO Compliance
---------------
Where the Customer is a member of IMRO and Chase is appointed as an Eligible
Custodian for the purposes of the IMRO Rules, Rule 5.1(5) requires the Customer
to have a written agreement with the custodian that that sets out in adequate
detail the parties' respective responsibilities. For your information the
relevant matters may be found in this Agreement as follows:
--------------------------------------------------------------------------------
IMRO RULE/GUIDANCE RELEVANT CLAUSE
--------------------------------------------------------------------------------
Appendix 2.4(l)(a)
--------------------------------------------------------------------------------
Paragraph 13 (b) (i) 213(i)(b)
--------------------------------------------------------------------------------
Paragraph 13 (b)(ii) 2A(i)(a), 6C, 13C(iii), (iv)
--------------------------------------------------------------------------------
Paragraph 13 (b)(iii) 613, 1 IG
--------------------------------------------------------------------------------
Paragraph 13 (b)(iv) 513, 13D(ii)(d)
--------------------------------------------------------------------------------
Paragraph 13 (b)(v) 13D(ii)(a)
--------------------------------------------------------------------------------
Paragraph 13 (b)(vi) 13D(ii)(b)
--------------------------------------------------------------------------------
Paragraph 13 (b)(vii) 2G
--------------------------------------------------------------------------------
Paragraph 13 (b)(viii) 2K
--------------------------------------------------------------------------------
Paragraph 13 (b)(ix) 13C(i)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Rule 5.1(5) Guidance
--------------------------------------------------------------------------------
(a) 3E
--------------------------------------------------------------------------------
(b) 2D(ii)
--------------------------------------------------------------------------------
(c) 15G
--------------------------------------------------------------------------------
(d) 13D(ii)(d)
--------------------------------------------------------------------------------
(e) 13(ii)(c)
--------------------------------------------------------------------------------
Investment Company Rider to Global Custody
Between The Chase Manhattan Bank and
-------------------------------------
effective
-------------------------------------
The following modifications are made to the Agreement:
A Add a new Clause 16 to the Agreement as follows:
"16. Compliance with SEC rule l7f-5.
(a) Customer's board of directors (or equivalent body) (hereinafter
'Board') hereby delegates to Chase, and, except as to the country or countries
as to which Chase may, from time to time, advise obligation to perform as
Customer's 'Foreign Custody Manager' (as that term is defined in SEC rule
17f-5(a)(2) s promulgated under the Investment Company Act of 1940, as amended
(" 1940 Act")), Customer that it does not accept such delegation, Chase hereby
accepts the delegation to it, of the both for the purpose of selecting Eligible
Foreign Custodians (as that term is defined in SEC rule l7f5(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 Securities and cash and of
evaluating the contractual arrangements with such Eligible Foreign Custodians
(as set forth in SEC rule l7f-5(c)(2)); provided that, the term Eligible Foreign
Custodian shall not include any 'Eligible Securities Depository.' An Eligible
Securities Depository for purposes hereof shall have the same meaning as in SEC
rule 17f-7 as proposed on April 29, 1999. (Eligible Securities Depositories used
by Chase as of the date hereof are set forth in Appendix I -A hereto, and as the
same may be amended on notice to Customer from time to time.)
(b) In connection with the foregoing, Chase shall:
(i) provide written reports notifying Customer's Board of the placement of
Securities and cash with particular Eligible Foreign Custodians and of any
material change in the arrangements with such Eligible Foreign Custodians, with
such reports to be provided to Customer's Board at such times as the Board deems
reasonable and appropriate based on the circumstances of Customer's foreign
custody arrangements (and until further notice from Customer such reports shall
be provided not less than quarterly with respect to the placement of Securities
and cash with particular Eligible Foreign Custodians and with reasonable
promptness upon the occurrence of any material change in the arrangements with
such Eligible Foreign Custodians);
(ii) exercise such reasonable care, prudence and diligence in performing as
Customer's Foreign Custody Manager as a person having responsibility for the
safekeeping of Securities and cash would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have determined that
Securities and cash 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 Securities and Cash, including,
without limitation, those factors set forth in SEC rule l7f-5(c)(l)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign Custodian
requires that the Eligible Foreign Custodian will provide reasonable care for
Securities and cash based on the standards applicable to custodians in the
relevant market.
(v) have established a system to monitor the continued appropriateness of
maintaining Securities and cash with particular Eligible Foreign Custodians and
of the governing contractual arrangements; it being understood, however, that in
the event that Chase shall have determined that the existing Eligible Foreign
Custodian in a given country would no longer afford Securities and Cash
reasonable care and that no other Eligible Foreign Custodian in that country
would afford reasonable care, Chase shall promptly so advise Customer and shall
then act in accordance with the Instructions of Customer with respect to the
disposition of the affected Securities and cash.
Subject to (b)(i)-(v) above, Chase is hereby authorized to place and maintain
Securities and cash on behalf of Customer with Eligible Foreign Custodians
pursuant to a written contract deemed appropriate by Chase.
(c) Except as expressly provided herein, Customer shall be solely
responsible to assure that the maintenance of Securities and cash hereunder
complies with the rules, regulations, interpretations and exemptive orders
promulgated by or under the authority of the SEC.
(d) Chase represents to Customer that it is a U.S. Bank as defined in Rule
l7f-5(a)(7). Customer represents to Chase that: (1) the Securities and cash
being placed and maintained in Xxxxx'x custody are subject to the 1940 Act, as
the same may be amended from time to time; (2) its Board: (i) has determined
that it is reasonable to rely on Chase to perform as Customer's Foreign Custody
Manager (ii) or its investment adviser shall have determined that Customer may
maintain Securities and Cash in each country in which Customer's Securities and
Cash shall be held hereunder and determined to accept the risks arising
therefrom (including, but not limited to, a country's financial infrastructure),
prevailing custody and settlement practices, laws applicable to the safekeeping
and recovery of Securities and Cash held in custody, and the likelihood of
nationalization, currency controls and the like) (collectively ("Country
Risk")). Nothing contained herein shall require Chase to make any selection or
to engage in any monitoring on behalf of Customer that would entail
consideration of Country Risk.
(e) Chase shall provide to Customer such information relating to Country
Risk as is specified in Appendix I -B hereto. Customer hereby acknowledges that:
(i) such information is solely designed to inform Customer of market conditions
and procedures and is not intended as a recommendation to invest or not invest
in particular markets; and (ii) Chase has gathered the information from sources
it considers reliable, but that Chase shall have no responsibility for
inaccuracies or incomplete information.
B. Add the following after the first sentence of Clause 6A of the
Agreement: "At the request of Customer, Chase may, but need not, add to Schedule
A an Eligible Foreign Custodian where Chase has not acted as Foreign Custody
Manager with respect to the selection thereof. Chase shall notify Customer in
the event that it elects to add any such entity."
C. Add the following language to the end of Clause 6A of the Agreement:
"The term Sub-custodian 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);
(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 laws of a country other than the United
States; and (iii) any other entity (other than an Eligible Securities
Depository) 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 Clause 6B(i), the term
Sub-custodian shall not include any Eligible Foreign Custodian as to which Chase
has not acted as Foreign Custody Manager or any Eligible Securities Depository."
APPENDIX I -A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Argentina Caja de Valores S.A. Equity, Corporate & Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Australia Austraclear Ltd. Corporate Debt, Money Market & Semi-Government
Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Australia CHESS Equity
(Clearing House Electronic Subregister System)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Australia RITS Government Debt
(Reserve Bank Information and Transfer System)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Austria Osterreichische Kontrolbank AG Equity, Corporate + Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Belgium CIK Equity + Corporate Debt
(Caisse Interprofessionnelle de Depots et de Virements de
Titres s.a.) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Belgium Banque Nationale de Belgique Treasury Bills + Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Brazil CBLC Equity
(Companhia Brasileira de Liquidacao e Custodia)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Brazil CLC Equity
(Camara de Liquidacao e Custodia
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Brazil CETIP Corporate Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Bulgaria BNB Government Debt
(Bulgaria National Bank)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Bulgaria Central Depository A.D. Equity
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Canada CDs Equity, Corporate + Government Debt
(The Canadian Depository for Securities Ltd.)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Chile DCV Equity, Corporate + Government Debt
(Deposito Central de Valores) Compulsory for government debt securities and for
brokers as of November 1998; will be compulsory for all
market participants during 1999.
----------------------------------------------------------------------------------------------------------------------------
China, SSCCRC Equity
Shanghai (Shanghai Securities Central Clearing and Registration
Corporation) Compulsory
----------------------------------------------------------------------------------------------------------------------------
China, SSCC Equity
Shenzhen (Shenzhen Securities Clearing Company, Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
1
APPENDIX I-A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Colombia DCV Government debt issued, guaranteed or administered
(Dep6sito Central de Valores) by the central bank.
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Colombia DECEVAL Equity, Corporate + Government Debt
(Dep6sito Central de Valores) Voluntary. Due to change in tax status of DECEVAL,
use of DECEVAL is becoming market standard.
----------------------------------------------------------------------------------------------------------------------------
Croatia CDA Equity and listed government debt. (Created in April
(Central Depository Agency) 1997, the CDA is expected to be operational in 1999)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Croatia Ministry of Finance Registry & Short-term debt issued by the Ministry of Finance
National Bank of Croatia Registry and the National Bank of Croatia, respectively.
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Czech SCP Equity + Long-Term Government Debt
Republic (Stredisko cennych papiru) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Denmark VP Equity, Corporate + Government Debt
(Vaerdipapircentmlen) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Egypt Misr Clearing, Settlement and Depository, Equity
S.A.E. Compulsory
----------------------------------------------------------------------------------------------------------------------------
Estonia EVK Equity
(Estonian Central Depository for Securities Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Euromarket Cedel & Euroclear Euro-Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Finland CSR Equity + Government Debt
(Central Share Registry Finland) Compulsory
----------------------------------------------------------------------------------------------------------------------------
France SICOVAM Equity + Corporate Debt
(Societe Interprofessionnelle pour la Compensation des
Valeurs Mobilieres, S.A.) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Germany DBC Equity, Corporate + Government Debt
(Deutsche Boerse Clearing AG) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Greece Apothetirio Titlon A.E. Equity
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Greece Bank of Greece Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Hong Kong CCASS Equity
(Central Clearing and Settlement System) Compulsory
----------------------------------------------------------------------------------------------------------------------------
2
APPENDIX I -A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Hong Kong CMU Corporate + Government Debt
(Central Moneymarkets Unit)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Hungary Keler Ltd. Equity + Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
India NSDL Equity + Corporate Debt
(National Securities Depository Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Ireland CRESTCo Limited Equity
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Ireland GSO Government Debt
(Gilt Settlement Office)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Israel TASE Clearing House Equity, Corporate + Government Debt
(Tel Aviv Stock Exchange Clearing House)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Italy Monte Titoli S.p.a. Equity + Corporate Debt
Compulsory
Italy Bank of Italy Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Japan JASDEC Equity
(Japan Securities Depository Center)
Voluntary
----------------------------------------------------------------------------------------------------------------------------
Japan Bank of Japan Registered Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Kazahkstan Central Securities Depository Mandatory for all equity securities traded on the
Kazahkstan Stock Exchange. Currently all trading is
over the counter.
Voluntary
----------------------------------------------------------------------------------------------------------------------------
Latvia LCD Equity + Government Debt
(Latvian Central Depository)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Lebanon Midelear Equity
(Custodian and Clearing Center of Lebanon and the
Middle East) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Lithuania CSDL Equity + Government Debt
(Central Securities Depository of Lithuania)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Luxembourg Cedel Bank, s.a. Equity
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Malaysia MCD Equity
(Malaysian Central Depository Snd Bhd)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
3
APPENDIX I -A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Mauritius CDS Equity
(Central Depository and Settlement Company Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Mexico Indeval Equity, Corporate + Government Debt.
(Institucion para el Deposito de Valores)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Morocco Maroclear Equity + Corporate Debt (will be compulsory as of
March 21, 1999)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Netherlands NECIGEF Equity, Corp. + Govt. D
(Nederlands Centraal Insituut voor Giraal Effectenverkeer
B.V.) Compulsory
----------------------------------------------------------------------------------------------------------------------------
New Zealand Austraclear New Zealand Equity, Corporate + Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Norway VPS Equity, Corporate + Govertiment Debt
(Verdipapirsentralen)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Oman MSM Equity
(Muscat Securities Market)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Pakistan CDC Equity
(Central Depository Company of Pakistan Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Peru CAVALI Equity
(Caja de Valores y Liquidaciones)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Philippines PCD Equity
(Philippine Central Depository Inc.)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Poland NDS Equity, Long-Term Government Debt + Vouchers
(National Securities Depository)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Poland CRT Treasury-Bills
(Central Registry of Treasury-Bills)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Portugal Interbolsa Equity, Corporate + Government Debt
(Central de Valores Mobiliarios e Sistema de Liquidacao e
Compensacao) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Romania SNCDD - RASDAQ Equity
(National Company for Clearing, Settlement and
Depository for Securities) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Romania BSE Equity
(Bucharest Stock Exchange Registry)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Romania National Bank of Romania Treasury-Bills
Compulsory
----------------------------------------------------------------------------------------------------------------------------
4
APPENDIX I -A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
Russia Vnestorgbank Ministry of Finance Bonds
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Russia National Depository Center GKOs are Treasury Bills with three months to one
year maturity; OFZs are Federal Loan bonds with
one to two years' maturity.
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Singapore CDP Equity + Corporate Debt and Malaysian equities
(Central Depository (Pte,) Ltd.) traded on CLOB
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Singapore Monetary Authority of Singapore Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Slovak SCP Equity + Government Debt
Republic (Stredisko Cennych Papierov)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Slovak National Bank of Slovakia Treasury-Bills
Republic Compulsory
----------------------------------------------------------------------------------------------------------------------------
Slovenia KDD Equity + Corporate Debt
(The Centralna Klirinsko Depotna Druzba d.d-
Compulsory
----------------------------------------------------------------------------------------------------------------------------
South Africa CD Corporate + Government Debt
(Central Depository (Pty) Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
South Korea KSD Equity, Corporate + Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Spain SCLV Equity + Corporate Debt.
(Servicio de Compensacion y Liquidacion de Valores,
S.A.) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Spain CBEO Government Debt
(Central Book Entry Office)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Sri Lanka CDS Equity
(Central Depository System (Pte) Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Sweden VPC Equity, Corporate + Government Debt
(Vardepapperscentralen AB)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Switzerland SEGA Equity, Corporate + Government Debt
(Schweizerische Effekten-Giro AG)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Taiwan TSCD Equity + Government Debt
(Taiwan Securities Central Depository Co., Ltd.)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Thailand TSDC Equity, Corporate + Government Debt
----------------------------------------------------------------------------------------------------------------------------
5
APPENDIX I -A
SECURITIES DEPOSITORIES
----------------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------
(Thailand Securities Depository Company Limited) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Tunisia STICODEVAM Equity
(Soci6t6 Tunisienne Interprofessionnelle pour la
Compensation et le D6pot des Valeurs Mobilieres) Compulsory
----------------------------------------------------------------------------------------------------------------------------
Tunisia Ministry of Finance Government Debt tradable on the stock exchange
(BTNBs)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Tunisia Central Bank of Tunisia Government Debt not tradable on the stock exchange
(BTCs)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Turkey IMKB; Takas ve Saklarna Bankasi A.S. Equity + Corporate Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Turkey Central Bank of Turkey Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
United CRIESTCo Limited Equity + Corp. Debt
Kingdom Compulsory
----------------------------------------------------------------------------------------------------------------------------
United CM0 Sterling CDs & CP
Kingdom (Central Moneymarket Office)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
United CGO Gilts
Kingdom (Central Gilts Office)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
United States DTC Equity + Corporate Debt
(Depository Trust Company)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
United States PTC Mortgage Back Debt
(Participants Trust Company)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
United States Fed Book-Entry System Government Debt
Compulsory
----------------------------------------------------------------------------------------------------------------------------
Zambia XxXX Equity + Government Debt
(XxXX Central Shares Depository Limited)
Compulsory
----------------------------------------------------------------------------------------------------------------------------
6
Appendix 1 -B
Information Regarding Country Risk
1. To aid Customer in its determinations regarding Country Risk, Chase
shall furnish annually and upon the initial placing of Securities and cash into
a country the following information (check items applicable):
A Opinions of local counsel concerning:
___ i. Whether applicable foreign law would restrict the access afforded
Customer's independent public accountants to books and records kept by an
eligible foreign custodian located in that country.
___ ii. Whether applicable foreign law would restrict the Customer's ability to
recover its Securities and cash in the event of the bankruptcy of an Eligible
Foreign Custodian located in that country.
___ iii. Whether applicable foreign law would restrict the Customer's ability
to recover Securities that are lost while under the control of an Eligible
Foreign Custodian located in the country.
B. Written information concerning:
___ i. The foreseeability of expropriation, nationalization, freezes, or
confiscation of Customer's Securities and cash.
___ ii. Whether difficulties in converting Customer's cash and cash equivalents
to U.S. dollars are reasonably foreseeable.]
C. A market report with respect to the following topics:
(i) securities regulatory environment, (ii) foreign ownership restrictions,
(iii) foreign exchange, (iv) securities settlement and registration, (v)
taxation, and (vi) compulsory depositories (including depository evaluation).
2. To aid Customer in monitoring Country Risk, Chase shall furnish board
the following additional information:
Market flashes, including with respect to changes in the information in
market reports.
