ITEM 77Q1e - Amendment to Investment Advisory Contract between
Federated Municipal Securities Income Trust and Federated
Investment Management Company
This Amendment to the Investment Advisory Contract
("Agreement") dated September 9, 1991, between Federated
Municipal Securities Income Trust ("Fund") and Federated
Investment Management Company ("Service Provider") is made
and entered into as of the 1st day of June, 2001.
WHEREAS, the Fund has entered into the Agreement
with the Service Provider;
WHEREAS, the Securities and Exchange Commission has
adopted Regulation S-P at 17 CFR Part 248 to protect the
privacy of individuals who obtain a financial product or
service for personal, family or household use;
WHEREAS, Regulation S-P permits financial institutions,
such as the Fund, to disclose "nonpublic personal
information" ("NP") of its "customers" and "consumers"
(as those terms are therein defined in Regulation S-P)
to affiliated and nonaffiliated third parties of the Fund,
without giving such customers and consumers the ability
to opt out of such disclosure, for the limited purposes
of processing and servicing transactions (17 CFR 248.14)
("Section 248.14 NPI"); for specified law enforcement and
miscellaneous purposes (17 CFR 248.15) ("Section 248.15 NPI")
; and to service providers or in connection with joint
marketingarrangements (17 CFR 248.13) ("Section 248.13 NPI");
WHEREAS, Regulation S-P provides that the right of a customer
and consumer to opt out of having his or her NPI disclosed
pursuant to 17 CFR 248.7 and 17 CFR 248.10 does not
apply when the NPI is disclosed to service providers or in
connection with joint marketing arrangements, provided the
Fund and third party enter into a contractual agreement
that prohibits the third party from disclosing or using the
information other than to carry out the purposes for which
the Fund disclosed the information (17 CFR 248.13);
NOW, THEREFORE, the parties intending to be
legally bound agree as follows:
The Fund and the Service Provider hereby acknowledge
that the Fund may disclose shareholder NPI to the Service
Provider as agent of the Fund and solely in furtherance of
fulfilling the Service Provider's contractual obligations
under the Agreement in the ordinary course of business to
support the Fund and its shareholders.
The Service Provider hereby agrees to be bound to
use and redisclose such NPI only for the limited purpose of
fulfilling its duties and obligations under the Agreement, for
law enforcement and miscellaneous purposes as permitted in 17
CFR 248.15, or in connection with joint marketing
arrangements that the Funds may establish with the Service
Provider in accordance with the limited exception set forth
in 17 CFR 248.13.
The Service Provider further represents and warrants
that, in accordance with 17 CFR 248.30, it has implemented,
and will continue to carry out for the term of the Agreement,
policies and procedures reasonably designed to:
? insure the security and confidentiality of records
and NPI of Fund customers,
? protect against any anticipated threats or hazards
to the security or integrity of Fund customer records and
NPI, and
? protect against unauthorized access to or use of
such Fund customer records or NPI that could result in
substantial harm or inconvenience to any Fund customer.
4. The Service Provider may redisclose Section 248.13
NPI only to: (a) the Funds and affiliated persons of the
Funds ("Fund Affiliates"); (b) affiliated persons of the
Service Provider ("Service Provider Affiliates") (which
in turn maydisclose or use the information only to the
extent permitted under the original receipt); (c) a third
party not affiliatedwith the Service Provider of the Funds
("Nonaffiliated Third Party") under the service and processing
(248.14) or miscellaneous (248.15) exceptions, but only in
the ordinary course of business to carry out the activity
covered by the exception under which the Service Provider
received the information in the first instance; and (d) a
Nonaffiliated Third Party under the service provider and joint
marketing exception (248.13), provided the Service Provider
enters into a written contract with the Nonaffiliated Third
Party that prohibits the Nonaffiliated Third Party from
disclosing or using the information other than to carry out
the purposes for which the Funds disclosed the information
in the first instance.
5. The Service Provider may redisclose Section 248.14
NPI and Section 248.15 NPI to: (a) the Funds and Fund Affiliates;
(b) Service Provider Affiliates (which in turn may disclose the
information to the same extent permitted under the original
receipt); and (c) a Nonaffiliated Third Party to whom the Funds
might lawfully have disclosed NPI directly. 6. The Service
Provider is obligated to maintain beyond the termination date
of the Agreement the confidentiality of any NPI it receives
from the Fund in connection with the Agreement or any joint
marketing arrangement, and hereby agrees that this Amendment
shall survive such termination.
WITNESS the due execution hereof this 1st day of June, 2001.
Federated Municipal Securities Income Trust
By: /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: President
Federated Investment Management Company
By: /s/ G. Xxxxxx Xxxxxxxxx
Name: G. Xxxxxx Xxxxxxxxx
Title: Vice President
