TBC Shareholder Services, Inc. (Mass.)
June 9, 1989
Board of Trustees
The Xxxxxx Managed Bond Trust
00 Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Gentlemen:
Reference is made to the Transfer Agency Agreement entered into between
The Xxxxxx Managed Bond Trust and Boston Safe Deposit and Trust Company ("Boston
Safe") on June 7, 1989, and to consent of The Xxxxxx Managed Bond Trust to
Boston Safe's assignment of said agreement to TBC Shareholder Services, Inc.,
which was signed by a duly authorized officer of The Xxxxxx Managed Bond Trust
on June 7, 1989.
The undersigned, a duly authorized officer of TBC Shareholder Services,
Inc., herein acknowledged to the Board of Trustees for The Xxxxxx Managed Bond
Trust that TBC Shareholder Services, Inc. has assented to the assignment of the
Transfer Agency Agreement to TBC Shareholder Services, Inc., and represents that
TBC Shareholder Services, Inc. fully intends to comply with the terms of said
agreement in providing transfer agency services to The Xxxxxx Managed Bond
Trust.
TBC SHAREHOLDER SERVICES, INC.
By:/s/ Xxxxxx X. Xxxxx
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Xxxxxx X. Xxxxx
Senior Vice President
TRANSFER AGENCY AGREEMENT
AGREEMENT dated as of June 7, 1989, between The Xxxxxx Managed Bond
Trust (the "Trust"), having its principal office and place of business at 00
Xxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000 and BOSTON SAFE DEPOSIT AND TRUST
COMPANY (the "Transfer Agent"), a Massachusetts trust company with principal
offices at Xxx Xxxxxx Xxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000.
W I T N E S S E T H:
That for and in consideration of the mutual promises hereinafter set
forth, the Trust and the Transfer Agent agree as follows:
1. Definitions. Whenever used in this Agreement, the following words and
phrases, unless the context otherwise requires, shall have the following
meanings:
(a) "Authorized Person" shall be deemed to include the President, any
Vice President, the Secretary and Treasurer of the Trust, the persons listed in
Appendix A hereto, and any other person, whether or not such person is an
Officer or employee of the Trust, duly authorized to give Oral Instructions or
Written Instructions on behalf of the Trust as indicated in a certificate
furnished to the Transfer Agent pursuant to Section 5(d) or 5(e) hereof as may
be received by the Transfer Agent from time to time;
(b) "Commission" shall have the meaning given it in the 1940 Act;
(c) "Custodian" refers to the custodian and any sub-custodian of all
securities and other property which the Trust may from time to time deposit, or
cause to be deposited or held under the name or account of such custodian
(pursuant to the Custodian Agreement between the Trust and Investors Bank &
Trust Company);
(d) "Declaration of Trust" shall mean the Declaration of Trust of
the Trust as the same may be amended from time to time;
(e) "Officer" shall mean the President, any Vice President,
Secretary and Treasurer;
(f) "Oral Instructions" shall mean instructions, other than written
instructions, actually received by the Transfer Agent from a person reasonably
believed by the Transfer Agent to be an Authorized Person;
(g) "Portfolio" refers to the Xxxxxx Government Obligations Fund,
Xxxxxx Near Term Bond Fund, Xxxxxx Insured Tax Free Bond Fund, Xxxxxx Tax Free
Income Fund and Xxxxxx Current Income Fund or any such other separate and
distinct Portfolio as may from time to time be established and designated by the
Trust in accordance with the provisions of the Declaration of Trust;
(h) "Prospectus" shall mean the Trust's current prospectus and
statement of additional information relating to the registration of the Trust's
Shares under the Securities Act of 1933, as amended, and the 1940 Act;
(i) "Shares" refers to the Shares of beneficial interest of each
Portfolio of the Trust;
(j) "Shareholder" means a record owner of Shares;
(k) "Trustees" or "Board of Trustees" refers to the duly elected
Trustees of the Trust;
(l) "Written Instructions" shall mean written communication
signed by an Authorized Person and actually received by the Transfer Agent; and
(m) The "1940 Act" refers to the Investment Company Act of 1940 and the
Rules and Regulations promulgated thereunder, all as amended from time to time.
2. Appointment of the Transfer Agent. The Trust hereby appoints and
constitutes the Transfer Agent as transfer agent for its Shares and as
shareholder servicing agent for the Trust, and the Transfer agent accepts such
appointment and agrees to perform the duties hereinafter set forth. If the Board
of Directors, pursuant to the Declaration of Trust, hereafter establishes and
designates a new Portfolio, the Transfer Agent agrees that it will act as
transfer agent and shareholder servicing agent for such new Portfolio in
accordance with the terms set forth herein. The Trustees shall cause a written
notice to be sent to the Transfer Agent to the effect that it has established a
new Portfolio and that it appoints the Transfer Agent as transfer agent and
shareholder servicing agent for the new Portfolio. Such written notice must be
received by the Transfer Agent in a reasonable period of time prior to the
commencement of operations of the new Portfolio to allow the Transfer Agent in
the ordinary course of its business, to prepare to perform its duties for such
new Portfolio.
3. Compensation
(a) The Trust will compensate the Transfer Agent for the
performance of its obligations hereunder in accordance with the fees set forth
in the written schedule of fees annexed hereto as Schedule A and incorporated
herein. Schedule A does not include out-of-pocket disbursements of the Transfer
Agent for which the Transfer Agent shall be entitled to bill the Trust
separately.
The Transfer Agent will bill the Trust as soon as practicable
after the end of each calendar month, and said xxxxxxxx will be detailed in
accordance with the Schedule A. The Trust will promptly pay to the Transfer
Agent the amount of such billing.
Out-of-pocket disbursements shall mean the items specified in
the written schedule of out-of-pocket charges annexed hereto as Schedule B and
incorporated herein. Reimbursement by the Trust for such out-of-pocket
disbursements incurred by the Transfer Agent in any month shall be made as soon
as practicable after the receipt of an itemized bill from the Transfer Agent.
Reimbursement by the Trust for expenses other than those specified in Schedule B
shall be upon mutual agreement of the parties as provided in Schedule B.
(b) The parties hereto will agree upon the compensation for
acting as transfer agent for any Portfolio hereafter established and designated
at or before the time that the Transfer Agent commences serving as such for said
Portfolio, and such agreement shall be reflected in a written schedule of fees
for that Portfolio, dated and signed by an Officer of each party hereto, which
shall be attached to Schedule A of this Agreement and incorporated herein.
(c) Any compensation agreed to hereunder may be adjusted from
time to time by attaching to Schedule A of this Agreement a revised Fee
Schedule, dated and signed by an Officer of each party hereto.
4. Documents. In connection with the appointment of the Transfer Agent,
the Trust shall upon request, on or before the date this Agreement goes into
effect, but in any case within a reasonable period of time for the Transfer
Agent to prepare to perform its duties hereunder, furnish the Transfer agent
with the following documents.
(a) certified copy of the Declaration of Trust, as amended;
(b) A certified copy of the By-laws of the Trust, as amended;
(c) A copy of the resolution of the Trustees authorizing the
execution and delivery of this Agreement;
(d) If applicable, a specimen of the certificate for Shares of
each Portfolio of the Trust in the form approved by the Trustees, with a
certificate of the Secretary of the Trust as to such approval;
(e) All account application forms and other documents relating
to Shareholder accounts or to any plan, program or service offered by the
Trust;
(f) A signature card bearing the signatures of any Officer of
the Trust or other Authorized Person who will sign Written Instructions.
5. Further Documentation. The Trust will also furnish from time to time
the following documents:
(a) Each resolution of the Trustees authorizing the
establishment and designation of any new Portfolio;
(b) Certified copies of each vote of the Trustees designating
Authorized Persons;
(c) The current Prospectus and Statement of Additional
Information of the Trust.
(d) Certificates as to any change in any Officer or Trustee
of the Trust.
6. Representations of the Trust. The Trust represents to the Transfer
Agent that all outstanding Shares are validly issued, fully paid and
non-assessable by the Trust. When Shares are hereafter issued in accordance with
the terms of the Trust's of Declaration of Trust and its Prospectus, such Shares
shall be validly issued, fully paid and non-assessable by the Trust.
In the event that the Trustees shall declare a distribution
payable in Shares, the Trust shall deliver to the Transfer Agent written notice
of such declaration signed on behalf of the Trust by an Officer thereof, upon
which the Transfer Agent shall be entitled to rely for all purposes, certifying
(i) the number of Shares involved and (ii) that all appropriate action has been
taken.
7. Duties of the Transfer Agent. The Transfer Agent shall be
responsible for administering and/or performing transfer agent functions; for
acting as service agent in connection with dividend and distribution functions;
and for performing shareholder account and administrative agent functions in
connection with the issuance, transfer and redemption or repurchase (including
coordination with the
Custodian) of Shares. The operating standards and procedures to be followed
shall be determined from time to time by agreement between the Transfer Agent
and the Trust and shall be expressed in a written schedule of duties of the
Transfer Agent annexed hereto as Schedule C and incorporated herein.
8. Recordkeeping and Other Information. The Transfer Agent shall create
and maintain all necessary records in accordance with all applicable laws, rules
and regulations, including but not limited to records required by Section 31 (a)
of the 1940 Act, as amended, and the Rules thereunder, as the same may be
amended from time to time, and those records pertaining to the various functions
performed by it hereunder which are set forth in Schedule C and Exhibit 1 to
Schedule C attached hereto. All records and other data established and
maintained by the Transfer Agent pursuant to this Agreement shall be the
property of the Trust, shall be available for inspection and use by the Trust
and shall be surrendered promptly upon request. Where applicable, such records
shall be maintained by the Transfer Agent for the periods and in the places
required by Rule 31a-2 under the 1940 Act, as the same may be amended from time
to time. Disposition of such records after such prescribed periods shall be as
mutually agreed upon from time to time by the Trust and the Transfer Agent.
9. Audit, Inspection and Visitation. The Transfer Agent shall make
available during regular business hours all records and other data created and
maintained pursuant to this Agreement for reasonable audit and inspection by the
Trust, or any person retained by the Trust. Upon reasonable notice by the Trust,
the Transfer Agent shall make available during regular business hours its
facilities and premises employed in connection with its performance of this
Agreement for reasonable visitation by the Trust, or any person retained by the
Trust, to inspect its operating capabilities or for any other reason.
10. Confidentiality of Records. The Transfer Agent agrees to treat all
records and other information relative to the Trust and its prior, present or
potential Shareholders in confidence except that, after prior notification to
and approval in writing by the Trust, which approval shall not be unreasonably
withheld and may not be withheld where the Transfer Agent may be exposed to
civil or criminal contempt proceedings for failure to comply, when requested to
divulge such information by duly constituted authorities, or when so requested
by the Trust.
11. Reliance by the Transfer Agent; Instructions
(a) The Transfer Agent will be protected in acting upon
Written or Oral Instructions which it may reasonably have believed to have been
executed or orally communicated by an Authorized Person and will not be held to
have any notice of any change of authority or any person until receipt of a
Written Instruction thereof from the Trust. The Transfer Agent will also be
protected in processing Share certificates which it reasonably believes to bear
the proper manual or facsimile signatures of the Officers of the Trust and the
proper countersignature of the Transfer Agent.
(b) At any time the Transfer Agent may apply to any Authorized
Person of the Trust for Written Instructions and may, after obtaining prior oral
or written approval by an Authorized Person, seek advice from legal counsel for
the Trust, or its own legal counsel, with respect to any matter arising in
connection with this Agreement, and it shall not be liable for any action taken
or not taken or suffered by it in good faith in accordance with such Written
Instructions or in accordance with the opinion of counsel for the Trust or for
the Transfer Agent. Written Instructions requested by the Transfer Agent will be
provided by the Trust within a reasonable period of time. In addition, the
Transfer Agent, its officers, agents or employees, shall accept Oral
Instructions or Written Instructions given to them by any
person representing or acting on behalf of the Trust only if said representative
is known by the Transfer Agent, or its officers, agents or employees, to be an
Authorized Person. The Transfer Agent shall have no duty or obligation to
inquire into, nor shall the Transfer Agent be responsible for, the legality of
any act done by it upon the request or direction of an Authorized Person.
(c) Notwithstanding any of the foregoing provisions of this
Agreement, the Transfer Agent shall be under no duty or obligation to inquire
into, and shall not be liable for: (i) the legality of the issuance or sale of
any Shares or the sufficiency of the amount to be received therefor; (ii) the
propriety of the amount per share to be paid on any redemption; (iii) the
legality of the declaration of any dividend by the Trustees, or the legality of
the issuance of any Shares in payment of any dividend; or (iv) the legality of
any recapitalization or readjustment of the Shares.
12. Acts of God, etc. The Transfer Agent will not be liable or
responsible for delays or errors by reason or circumstances beyond its control,
including acts of civil or military authority, national emergencies, fire,
mechanical breakdown beyond its control, flood, acts of God, insurrection, war,
riots, and loss of communication or power supply.
13. Duty of Care and Indemnification. The Trust will indemnify the
Transfer Agent against and hold it harmless from any and all losses, claims,
damages, liabilities or expenses (including reasonable counsel fees and
expenses) resulting from any claim, demand, action or suit not resulting from
the bad faith or negligence of the Transfer Agent, and arising out of, or in
connection with, its duties on behalf of the Trust hereunder. In addition, the
Trust will indemnify the Transfer Agent against and hold it harmless from any
and all losses, claims, damages, liabilities or expenses (including reasonable
counsel fees and expenses) resulting from any claim, demand action or suit as a
result of: (i) any action taken in accordance with Written or Oral Instructions,
or any other instructions, or share certificates reasonably believed by the
Transfer Agent to be genuine and to be signed, countersigned or executed, or
orally communicated by an Authorized Person; (ii) any action taken in accordance
with written or oral advice reasonably believed by the Transfer Agent to have
been given by counsel for the Trust or its own counsel; or (iii) any action
taken as a result of any error or omission in any record which the Transfer
Agent had no reason to believe was inaccurate (including but not limited to
magnetic tapes, computer printouts, hard copies and microfilm copies) and was
delivered, or caused to be delivered, by the Trust to the Transfer Agent in
connection with this Agreement.
In any case in which the Trust may be asked to indemnify or hold the
Transfer Agent harmless, the Trust shall be advised of all pertinent facts
concerning the situation in question and the Transfer Agent shall notify the
Trust promptly concerning any situation which presents or appears likely to
present a claim for indemnification against the Trust. The Trust shall have the
option to defend the Transfer Agent against any claim which may be the subject
of this indemnification and, in the event that the Trust so elects, such defense
shall be conducted by counsel chosen by the Trust, and thereupon the Trust shall
take over complete defense of the claim and the Transfer Agent shall sustain no
further legal or other expenses in such situation for which it seeks
indemnification under this Section 13. The Transfer Agent will not confess any
claim or make any compromise in any case in which the Trust will be asked to
provide indemnification, except with the Trust's prior written consent. The
obligations of the parties hereto under this Section shall survive the
termination of this Agreement.
14. Terms and Termination. This Agreement shall become effective on the
date first set forth above (the "Effective date") and shall continue in effect
from year to year thereafter as the parties may mutually agree; provided,
however, that either party hereto may terminate this Agreement by giving to the
other party a notice in writing specifying the date of such termination, which
shall not be less than 60 days after the date of receipt of such notice. In the
event such notice is given by the Trust, it shall be accompanied by a resolution
of the Board of Trustees, certified by a Secretary, electing to terminate this
Agreement and designating a successor transfer agent or transfer agents. Upon
such termination the Transfer Agent will deliver to such successor a certified
list of shareholders of the Trust (with names, addresses and taxpayer
identification or Social Security numbers and such other federal tax information
as the Transfer Agent may be required to maintain), an historical record of the
account of each shareholder and the status thereof, and all other relevant
books, records, correspondence, and other data established or maintained by the
Transfer Agent under this Agreement in the form reasonably acceptable to the
Trust, and will cooperate in the transfer of such duties and responsibilities,
including provisions for assistance from the Transfer Agent's personnel in the
establishment of books, records and other data by such successor or successors.
If this Agreement is terminated, the Transfer Agent shall deliver all
records and data established or maintained under this Agreement without
compensation or other fees except that the Transfer Agent shall be entitled to
incidental out-of-pocket expenses as limited by and provided for in Schedule B
to this Agreement incurred in the delivery of such records and data.
15.Amendment. This Agreement may not be amended or modified in
any manner except by a written agreement executed by both parties.
16. Subcontracting. The Trust agrees that the Transfer Agent may, in
its discretion, subcontract for certain of the services described under this
Agreement or the Schedules hereto; provided that the appointment of any such
Agent shall not relieve the Transfer Agent of its responsibilities hereunder and
provided that the Transfer Agent has given 30 days prior written notice to an
Authorized Person.
17. Use of Transfer Agent's Name. The Transfer Agent shall approve all
reasonable uses of its name which merely refer in accurate terms to its
appointment hereunder or which are required by the Commission or a state
securities commission.
18. Use of the Trust's Name. The Transfer Agent shall not use the name
of the Trust or material relating to the Trust on any documents or forms for
other than internal use in a manner not approved prior thereto in writing;
provided, that the Trust shall approve all reasonable uses of its name which
merely refer in accurate terms to the appointment of the Transfer Agent or which
are required by the Commission or a state securities commission.
19. Security. The Transfer Agent represents and warrants that, to best
of its knowledge, the various procedures and systems which the Transfer Agent
has implemented or will implement with regard to safeguarding from loss or
damage attributable to fire, theft or any other cause (including provision for
24 hours-a-day restricted access) of the Trust's records and other data and the
Transfer Agent's records, data, equipment, facilities and other property used in
the performance of its obligations hereunder are adequate and that it will make
such changes therein from time to time as in its judgement are required for the
secure performance of its obligations hereunder. The parties shall review such
systems and procedures on a periodic basis.
20. Insurance. The Transfer Agent shall notify the Trust should any of
its insurance coverage as set forth in Schedule D attached hereto be changed for
any reason. Such notification shall include the date of change and reason or
reasons therefor. The Transfer Agent shall notify the Trust of any claims
against it whether or not they may be covered by insurance and shall notify the
Trust from time to time as may be appropriate, and at least within 30 days
following the end of each fiscal year of the Transfer Agent, of the total
outstanding claims made by the Transfer Agent under its insurance coverage.
21. Miscellaneous
(a) Any notice or other instrument authorized or required by
this Agreement to be given in writing to the Trust or the Transfer Agent, shall
be sufficiently given if addressed to that party and received by it at its
office set forth below or at such other place as it may from time to time
designate in writing.
To the Trust:
The Xxxxxx Managed Bond Trust
00 Xxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: X. Xxx Xxxxxxx, Xx., Esq.
To the Transfer Agent:
Boston Safe Deposit and Trust Company
Xxx Xxxxxx Xxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attn: Xxxxx Xxxx
(b) This Agreement shall extend to and shall be binding upon
the parties hereto, and their respective successors and assigns; provided,
however, that this Agreement shall be assignable without the written consent of
the other party.
(c) This Agreement shall be construed in accordance with the
laws of the Commonwealth of Massachusetts.
(d) This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original; but such
counterparts shall, together, constitute only one instrument.
(e) The captions of this Agreement are included for
convenience or reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or effect.
22. Liability of Directors, Officers and Shareholders. The execution
and delivery of this Agreement have been authorized by the Trustees of the Trust
and signed by an authorized Officer of the Trust, acting as such, and neither
such authorization by such Trustees nor such execution and delivery by such
Officer shall be deemed to have been made by any of them individually or to
impose any liability on any of them personally, and the obligations of this
Agreement are not are not binding upon any of the Trustees or shareholders of
the Trust, but bind only the trust property of the Trust as provided in the
Declaration of Trust.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunder duly authorized as of the day
and year first above written.
The Xxxxxx Managed Bond Trust
Attest: /s/ Xxxx X. Xxxxxxx, Xx. By: /s/ Xxxxx X. X'Xxxxxx
------------------------ ---------------------
BOSTON SAFE DEPOSIT AND
TRUST COMPANY
Attest: By: /s/ Xxxxx Xxxx
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Appendix A
AUTHORIZED PERSONS
Xxxxxxxx X. Xxxxxxx, Xx.
Xxxxxxx X. Xxxxxxxx
Xxxxxx X. XxxXxxxxx
Xxxxxx X. Xxxxxxxx
Schedule A
SCHEDULE OF FEES
Transfer Agent fees are paid monthly based upon a monthly fee of $625 per
Portfolio.
Schedule B
OUT-OF-POCKET EXPENSES
The Trust shall reimburse the Transfer Agent monthly for the following
out-of-pocket expenses:
o Postage and mailing
o forms
o outgoing wire charges
o telephone
o if applicable, magnetic tape and freight
o retention of records
o microfilm/microfiche
o stationery
o if applicable, terminals, transmitting lines and any
expenses incurred in connection with such terminals
and lines
The Trust agrees that an estimate of the postage and mailing expenses
of the Transfer Agent will be paid on the day of or prior to a mailing if
requested reasonably in advance by the Transfer Agent. In addition, the Trust
will reimburse the Transfer Agent for any other expenses incurred by the
Transfer Agent as to which the Trust and the Transfer Agent mutually agree are
not otherwise properly borne by the Transfer Agent as part of its duties and
obligations under the Agreement.
Schedule C
DUTIES OF THE TRANSFER AGENT (See Exhibit 1 for Summary of Services)
1. Shareholder Information. The Transfer Agent shall maintain a record
of the number of Shares held by each holder of record which shall include their
addresses and taxpayer identification numbers and which shall indicate whether
such Shares are held in certificated or uncertificated form.
2. Shareholder Services. The Transfer Agent will investigate all
Shareholder inquiries relating to Shareholder accounts and will answer all
correspondence from Shareholders and others relating to its duties hereunder
between the Transfer Agent and the Trust. The Transfer Agent shall keep records
of Shareholder correspondence and replies thereto, and of the lapse of time
between the receipt of such correspondence and the mailing of such replies.
3. State Registration Reports. The Transfer Agent shall furnish the
Trust, on a state-by-state basis, sales reports, such periodic and special
reports as the Trust may reasonably request, and such other information,
including Shareholder lists and statistical information concerning accounts, as
may be agreed upon from time to time between the Trust and the Transfer Agent.
4. Share Certificates
(a) At the expenses of the Trust, the Transfer Agent shall
maintain an adequate supply of blank Share certificates for each Portfolio to
meet the Transfer Agent's requirements therefor. Such Share certificates shall
be properly signed by facsimile. The Trust agrees that, notwithstanding the
death, resignation, or removal of any Officer of the Trust whose signature
appears on such certificates, the Transfer Agent may continue to countersign
certificates which bear such signatures until otherwise directed by the Trust.
(b) The Transfer Agent shall issue replacement Share
certificates in lieu of certificates which have been lost, stolen or destroyed
without any further action by the Board of Trustees or any Officer of the Trust,
upon receipt by the Transfer Agent of properly executed affidavits and lost
certificate bonds, in form satisfactory to the Transfer Agent, with the Trust
and the Transfer Agent as obligees under the bond.
(c) The Transfer Agent shall also maintain a record of each
certificate issued, the number of Shares represented thereby and the holder of
record. With respect to Shares held in open accounts or uncertificated forms,
i.e., no certificate being issued with respect thereto, the Transfer Agent shall
maintain comparable records of the record holders thereof, including their
names, addresses and taxpayer identification numbers. The Transfer Agent shall
further maintain separately for the Trust a stop transfer record on lost and/or
replaced certificates.
5. Mailing Communications to Shareholders; Proxy Materials. The Transfer
Agent will address and mail to Shareholders of the Trust all reports to
Shareholders, dividend and distribution notices and proxy material for the
Trust's meetings of Shareholders, and such other communications as the Trust may
authorize. In connection with meetings of Shareholders, the Transfer Agent will
prepare Shareholder
lists, mail and certify as to the mailing of proxy materials, process and
tabulate returned proxy cards, report on proxies voted prior to meetings, act as
inspector of election at meetings and certify Shares voted at meetings.
6. Sales of Shares
(a) Processing of Investment Checks or Other Investments. Upon
receipt of any check or other instrument drawn or endorsed to it as agent for,
or identified as being for the account of, the Trust, or drawn or endorsed to
the Distributor of the Trust's Shares for the purchase of Shares, the Transfer
Agent shall stamp the check with the date of receipt, shall forthwith process
the same for collection and shall record the number of Shares sold, the trade
date and price per Share, and the amount of money to be delivered to the
Custodian of the Trust for the sale of such Shares.
Upon receipt of an order to purchase shares from a broker or
dealer pursuant to procedures approved by the Trust, the Transfer Agent shall
record the number of Shares sold for the account of such broker or dealer, the
trade date and price per share, the amount of money to be delivered to the
Custodian of the Trust for the sale of such Shares, and shall confirm such order
and amount to the broker or dealer promptly in accordance with good industry
practice.
(b) Issuance of Shares. Upon receipt of notification that the
Custodian has received the amount of money specified in the first paragraph of
section (a) above, the Transfer Agent shall issue to and hold in the account of
the purchaser/Shareholder, or if no account is specified therein, in a new
account established in the name of the purchaser, the number of Shares such
purchaser is entitled to receive, as determined in accordance with applicable
Federal law or regulation.
(c) Confirmation. The Transfer Agent shall send to the
purchaser/Shareholder a confirmation of each purchase which will show the new
Share balance, the Shares held under a particular plan, if any, for withdrawing
investments, the amount invested and the price paid for the newly purchased
Shares, or will be in such other form as the Trust and the Transfer Agent may
agree from time to time.
(d) Suspension of Sales of Shares. The Transfer Agent shall
not be required to issue any Shares of the Trust where it has received a Written
Instruction from the Trust or written notice from any appropriate Federal or
state authority that the sale of the Shares of the Trust has been suspended or
discontinued, and the Transfer Agent shall be entitled to rely upon such Written
Instructions or written notification.
(e) Taxes in Connection with Issuance of Shares. Upon the
issuance of any Shares in accordance with the foregoing provisions of this
Section, the Transfer Agent shall not be responsible for the payment of any
original issue or other taxes required to be paid in connection with such
issuance.
(f) Returned Checks. In the event that any check or other
order for the payment of money is returned unpaid for any reason, the Transfer
Agent will: (i) give prompt notice of such return to the Trust or its designee;
(ii) place a stop transfer order against all Shares issued as a result of such
check or order; and (iii) take such actions as the Transfer Agent may from time
to time deem appropriate.
7. Redemptions
(a) Requirements for transfer or Redemption of Shares. The
Transfer Agent shall process all requests from Shareholders to transfer or
redeem Shares in accordance with the procedures set forth in the Trust's
Prospectus, or as authorized by the Trust pursuant to Written Instructions,
including, but not limited to, all requests from Shareholders to redeem Shares
of each Portfolio, all determinations of the number of Shares required to be
redeemed to fund designated monthly payments and automatic payments or any such
distribution or withdrawal plan.
The Transfer Agent reserves the right to refuse to transfer or
redeem Shares until it is satisfied that the instructions to do so are valid and
genuine, in accordance with procedures set forth in the Trust's Prospectus. The
Transfer Agent shall incur no liability for the refusal, in good faith, to make
transfer or redemptions which the Transfer Agent, in its good judgment deems
improper or unauthorized based upon such procedures, or until it is reasonably
satisfied that there is no basis for any claim adverse to such transfer or
redemption.
The Transfer Agent may in effecting transactions, rely upon
the provisions of the Uniform Act for the Simplification of Fiduciary Security
Transfers or the provisions of Article 8 of the Uniform Commercial Code, as the
same may be amended from time to time in the Commonwealth of Massachusetts,
which in the opinion of legal counsel for the Trust or of its own legal counsel
protect it in not requiring certain documents in connection with the transfer or
redemption of Shares. The Trust may authorize the Transfer Agent to waive the
signature guarantee in certain cases by Written Instructions.
For the purpose of the redemption of Shares of each Portfolio
which have been purchased within 15 days of a redemption request, the Trust
shall provide the Transfer Agent with written Instructions (see Exhibit
2 hereto) concerning the time within which such requests may be honored.
(b) Notice to Custodian. When Shares are redeemed, the
Transfer Agent shall, upon receipt of the instructions and documents in proper
form, deliver to the Custodian a notification setting forth the applicable
Portfolio and the number of Shares to be redeemed. Such redemptions shall be
reflected on appropriate accounts maintained by the Transfer Agent reflecting
outstanding Shares of the Trust and Shares attributed to individual accounts
and, if applicable, any individual withdrawal or distribution plan.
(c) Payment of Redemption Proceeds. The Transfer Agent shall,
upon receipt of the money paid to it by the Custodian for the redemption of
Shares, pay to the Shareholder, or his authorized agent or legal representative,
such moneys as are received from the Custodian, all in accordance with the
redemption procedures described in the Trust's Prospectus; provided, however,
that the Transfer Agent shall pay the proceeds of any redemption of Shares
purchased within a period of time agreed upon in writing by the Transfer Agent
and the Trust only in accordance with procedures agreed to in writing by the
Transfer Agent and the Trust for determining that good funds have been collected
for the purchase of such Shares, such written procedures being attached to this
Schedule as Exhibit 2. The Trust shall indemnify the Transfer Agent for any
payment of redemption proceeds or refusal or make such payment if the payment or
refusal to pay is in accordance with said written procedures.
The Transfer Agent shall not process or effect any redemptions
pursuant to a plan of distribution or redemption or in accordance with any other
Shareholder request upon the receipt by the Transfer Agent of notification of
the suspension of the determination of the Trust's net asset value.
(d) The Transfer Agent shall send to the Shareholder a
confirmation of each redemption showing the amount (and price) of shares
redeemed, the new Share balance, and such other information as the Trust may
request from time to time.
8. Dividends
(a) Notice to Transfer Agent and Custodian. Upon the
declaration of each dividend and each capital gains distribution by the Board of
Trustees of the Trust with respect to Shares of a Portfolio, the Trust shall
furnish to the Transfer Agent Written Instructions setting forth, with respect
to Shares of such Portfolio the date of the declaration of such dividend or
distribution, the ex-dividend date, the date of payment thereof, the record date
as of which Shareholders entitled to payment shall be determined, the amount
payable per Share to the Shareholders of record as of that date, the total
amount payable to the Transfer Agent on the payment date and whether such
dividend or distribution is to be paid in Shares of such class at net asset
value.
On or before the payment date specified in such resolution of
the Board of Trustees, the Trust will cause the Custodian of the Trust to pay to
the Transfer Agent sufficient cash to make payment to the Shareholders of record
as of such payment date.
(b) Payment of Dividends by the Transfer Agent. The Transfer
Agent will, on the designated payment date, automatically reinvest all dividends
in additional Shares at net asset value (determined on the record date of such
dividend with respect to Shareholders who have elected such reinvestment), and
promptly mail to each Shareholder at his address of record, or such other
address as the Shareholder may have designated, a statement showing the number
of full and fractional Shares (rounded to three decimal places) then currently
owned by the Shareholder and the net asset value of the Shares so credited to
the Shareholder's account. All other dividends shall be paid in cash, or by
check, to Shareholders or their designees, for shareholders who have so elected.
(c) Insufficient Funds for Payments. If the Transfer Agent
does not receive sufficient cash from the Custodian to make total dividend
and/or distribution payments to all Shareholders of a Portfolio of the Trust as
of the record date, the Transfer Agent will, upon notifying the Trust, withhold
payment to all Shareholders of record as of the record date until such
sufficient cash is provided to the Transfer Agent.
(d) Information Returns. It is understood that the Transfer
Agent shall file in a timely manner such appropriate information returns
concerning the payment of dividends, return of capital, capital gains
distributions and special information returns for retirement plan accounts with
the proper Federal, state, local and other authorities as are required by law to
be filed and shall be responsible for the withholding of taxes, if any, due on
such dividends or distributions to Shareholders when required to withhold taxes
under applicable law. The Transfer Agent shall also mail copies of such
information returns to the appropriate Shareholders.
Exhibit 1
to
Schedule C
Summary of Services
The services to be performed by the Transfer Agent shall be as follows:
A. DAILY RECORDS
Maintain daily on disk, tape or other magnetic media the following
information with respect to each shareholder account as received:
o Name and Address (Zip Code)
o Balance of Shares held by Transfer Agent
o State of residence code
o Beneficial owner code: i.e, male, female, joint tenant, etc.
o Dividend code (reinvestment)
o Number of Shares held in certificate form
o Tax information (certified tax identification number, any
TEFRA and backup withholding)
o Other special coding for retirement plan accounts
B. OTHER DAILY ACTIVITY
o Answer written inquiries relating to Shareholder accounts
(matters relating to portfolio management, distribution of
Shares and other management policy questions will be referred
to the Trust).
o Furnish a Statement of Additional Information to any
Shareholder who requests (in writing or by telephone) such
statement from the Transfer Agent.
o Examine and process Share purchase applications in accordance
with the Prospectus.
o Furnish Forms W-9 to all shareholders whose initial
subscriptions for Shares did not include certified taxpayer
identification numbers.
o Process additional payments into established Shareholder
accounts in accordance with the Prospectus.
o Upon receipt of proper instructions and all required
documentation, process requests for redemption of Shares.
o In accordance with procedures outlined in the Trust's
Prospectus, process and effect telephone exchanges among funds
with similar distribution plans.
o Maintain records of Letter of Intent escrow shares.
o Maintain records necessary to properly invoke the contingent
deferred sales charge.
o Identify redemption requests made with respect to accounts in
which Shares have been purchased within an agreed-upon period
of time for determining whether good funds have been collected
with respect to such purchase and process as agreed by the
Transfer Agent and the Trust in accordance with written
procedures set forth in the Trust's Prospectus.
o Examine and process all transfers of Shares, ensuring that all
transfer requirements and legal documents have been supplied.
o Issue and mail replacement checks.
o Maintain and execute share purchases with respect to Rights
of Accumulation.
C. SPECIAL REQUIREMENTS WITH RESPECT TO DAILY FUNDING
The Transfer Agent shall provide the Custodian on or before 9:30 A.M.
each day reports summarizing the previous day's transaction activity,
subtotaled by transaction type and trade date, and showing the balance
of the Trust's shares outstanding and other pertinent information.
These reports shall indicate all cash amounts to be paid or received by
the Trust for such purposes as settling sales and redemption of Trust
Shares or making distributions to Shareholders. Providing that the
Transfer Agent has reported the daily settlement amounts in a timely
manner with appropriate back-up documentation, the Trust will cause to
be wired monies due the Transfer Agent by the Trust on or before the
close of business that day. All monies due the Trust from the Transfer
agent shall be wired by the Transfer Agent on or before 2:00 P.M.
D. REPORTS PROVIDED TO THE TRUST AND/OR THE CUSTODIAN
Furnish the following reports to the Fund:
o Daily financial totals
o Monthly form N-SAR information (sales/redemptions)
o Monthly report of outstanding Shares
o Monthly analysis of accounts by beneficial owner code
o Monthly analysis of accounts by share range
o Bi-monthly analysis of sales by state; provide a "warning
system" that informs the Fund when sales of Shares in certain
states are within a specified percentage of the Shares
registered in the state.
E. DIVIDEND AND REDEMPTION ACTIVITY
o Calculate and process Share dividends and distributions as
instructed by the Trust.
o Compute; prepare and mail all necessary reports to
Shareholders, federal and/or state authorities as requested by
the Trust.
o On the payable date of a distribution to shareholders, the
Transfer Agent shall deliver to the Custodian a complete
dividend reconciliation, including the record date shares,
total amount distributed, amount reinvested and cash due the
Transfer Agent. Payment of the cash by the Custodian upon
receipt of the reconciliation shall be contingent upon the
Custodian's assent that the figures in such reconciliation
appear to be reasonable.
o The Transfer Agent shall deliver a final dividend
reconciliation to the Custodian no later than 30 days after
the payable date which will reflect any adjustments made
subsequent to the payable date. After the final dividend
reconciliation is prepared, no further adjustments shall be
made to affect the total amount of the distribution without
the written approval of the Trust.
F. MEETINGS OF SHAREHOLDERS
o Cause to be mailed proxy and related material for all meetings
of Shareholders. Tabulate returned proxies (proxies must be
adaptable to mechanical equipment of the Transfer Agent or its
agents) and supply daily reports when sufficient proxies have
been received.
o Prepare and submit to the Trust an Affidavit of Mailing.
o At the time of the meeting, if requested, furnish a certified
list of Shareholders in hard copy, microfilm or microfiche and
Inspectors of Election.
G. PERIODIC ACTIVITIES
o Cause to be mailed reports, Prospectuses, and any other
enclosures requested by the Trust (material must be adaptable
to the mechanical equipment of Transfer Agent or its agents).
o Produce and mail periodic statements as requested to
Shareholders and broker/dealers.
H. AS OF TRANSACTIONS
o The Transfer Agent shall make every effort to minimize the
occurrence of "as of" transactions. For those that do occur,
the Transfer Agent shall maintain records as to the reason for
the delay in processing. In the event the delayed processing
is the fault of the Transfer Agent, and the Trust sustains a
loss, the Trust shall be entitled to compensation from the
Transfer Agent.
Exhibit 2
to
Schedule C
It is hereby agreed between the Trust and the Transfer Agent that
Shares purchased by personal check may be redeemed only after they are deemed to
have been collected in accordance with the attached check-aging schedule. The
check-aging schedule, which is based upon a Shareholder's address of record,
designates the number of days between the receipt of an investment check by the
Transfer Agent and the date on which funds provided by such checks will be
deemed to have been collected.
CHECK-AGING SCHEDULE
STATE STATE NUMBER
CODE ABBREV. STATE DESCRIPTION OF DAYS
----- -------- ----------------- --------
01 AL Alabama 9
02 AK Alaska 15
03 AZ Arizona 12
04 AR Arkansas 9
05 CA California 13
06 CO Colorado 11
07 CT Connecticut 7
08 DE Delaware 7
09 DC District of Columbia 8
10 FL Florida 9
11 GA Georgia 9
12 HI Hawaii 15
13 ID Idaho 11
14 IL Illinois 10
15 IN Indiana 10
16 IA Iowa 10
17 KS Kansas 10
18 KY Kentucky 9
19 LA Louisiana 9
20 ME Maine 7
21 MD Maryland 8
22 MA Massachusetts 7
23 MI Michigan 10
24 MN Minnesota 10
25 MS Mississippi 10
26 MO Missouri 10
27 MT Montana 11
STATE STATE NUMBER
CODE ABBREV. STATE DESCRIPTION OF DAYS
---- ------- ----------------- -------
28 NE Nebraska 10
29 NV Nevada 11
30 NH New Hampshire 7
31 NJ New Jersey 8
32 NM New Mexico 11
33 NY New York 8
34 NC North Carolina 9
35 ND North Dakota 11
36 OH Ohio 10
37 OK Oklahoma 11
38 OR Oregon 12
39 PA Pennsylvania 8
40 RI Rhode Island 7
41 SC South Carolina 9
42 SD South Dakota 11
43 TN Tennessee 9
44 TX Texas 11
45 UT Utah 12
46 VT Vermont 7
47 VA Virginia 9
48 WA Washington 12
49 WV West Virginia 9
50 WI Wisconsin 10
51 WY Wyoming 11
52 PR Puerto Rico 16
53 53 APO, FPO New York
54 54 APO, FPO California
55 55 Other U.S. Possessions
56 56 Foreign Addresses
SCHEDULE D
SCHEDULE OF INSURANCE COVERAGE
Boston Safe Deposit and Trust Company ("Boston Safe"), and its New York clearing
facility, Boston Safe Clearing Corporation, are named insureds under the
following insurance policies presently in force covering assets held in custody
at either company.
BANKERS BLANKET BOND
Basic Coverage: $22,500,000
Carrier: Continental Insurance Company #BND1619079, et al.,
policy dated April 7, 1985 and effective until
cancelled.
Deductible: $250,000
This coverage relates to any dishonest act of any employee of Boston
Safe and to any loss by burglary or mysterious unexplainable
disappearance of securities. The bond provides coverage for forgery
losses up to $2,500,000 and losses for Boston Safe's acceptance of
counterfeited securities in good faith up to $1,000,000.
Additional Coverage;
In addition, both companies are named insureds for $57,500,000 of
excess bond coverage through American Express, bringing the total
blanket bond coverage to $80,000,000.
Also, through American Express, Boston Safe has $245,000,000 of Lost
Instrument Bond coverage in addition to the $80.0 million blanket bond
coverage.
ERRORS AND OMISSIONS & FIDUCIARY LIABILITY INSURANCE POLICY
Coverage: $5,000,000
Carrier First State Insurance Company, policy dated November 14, 1988, and
effective until November 14, 1989
Deductible: $250,000
Protection under the Errors and Omissions Policy for an account would
be in the area of any alleged negligent act, error, or omission
committed by Boston Safe in the course of its performance of its duties
as Custodian.
As a participant in the Depository Trust Company ("DTC"), Boston Safe is insured
under policies made available by DTC with respect to securities deposited.
