American Skandia Trust
Xxx Xxxxxxxxx Xxxxx
Xxxxxxx, Xxxxxxxxxxx 00000-0000
Re: Foreign Custody Manager Delegation Amendment
Dear Sirs:
Reference is made to a Custody Agreement dated as of April 10, 1998,
(the "Agreement") by and between the Custodian and the Client for the
safekeeping of securities and cash received by the Custodian for the account of
the Client. Unless otherwise defined herein, terms defined in the Agreement are
used herein with their defined meanings.
1. In addition to the duties of the Custodian under the Agreement, with
respect to the Property in such jurisdictions as the Client and the Custodian
shall agree from time to time, the Client hereby delegates to the Custodian, and
the Custodian hereby accepts and assumes, the following duties of a "Foreign
Custody Manager" as permitted by Rule 17f-5 of the Investment Company of 1940
Act, as amended ("Rule 17f-5"):
a. selecting Eligible Foreign Custodians (as defined in Rule 17f-5) and
placing and maintaining Property with such Eligible Foreign Custodians;
b. entering into written contracts with such Eligible Foreign Custodians
or, in the case of a Securities Depository (as defined in Rule 17f-5), entering
into a contract or agreeing to be bound by the rules or established procedures
of such depository, or some combination of the foregoing; and
c. establishing a system for and monitoring the appropriateness of
maintaining the Property with each Eligible Foreign Custodian and the custody
contracts or arrangements with such Eligible Foreign Custodian.
The procedures the Custodian and the Client will use in performing the
activities under this Amendment are set forth in the Agreement and the Client
Services Guide. Notwithstanding anything to the contrary in this Amendment or
the Agreement, the Custodian shall not be responsible for the duties described
in a., b. and c. with respect to any Compulsory Securities Depository. A
"Compulsory Securities Depository" shall mean a securities depository or
clearing agency listed on Exhibit B to the Agreement, as such Exhibit may be
amended from time to time by the Custodian by written notice to the Client, or
upon Authorized Instructions.
2. Section 2 of the Agreement shall be removed and replaced with the
following:
"The Property may be held (i) in custody and deposit accounts that have
been established by the Custodian with one or more domestic or foreign banks,
depositories, clearing agencies, or other institutions as listed on Exhibit A,
as such Exhibit may be amended from time to time by the Custodian by written
notice to the Client (the "Subcustodians"), (ii) through the facilities of one
or more Compulsory Securities Depositories, or (iii) upon Authorized
Instructions, through the facilities of any other securities depository or
clearing agency. Each of the Subcustodians listed on Exhibit A and each of the
Compulsory Securities Depositories listed on Exhibit B is an Eligible Foreign
Custodian. The Custodian shall hold Property through a Subcustodian only if (a)
neither such Subcustodian nor any of its creditors may assert any right, charge,
security interest, lien, encumbrance or other claim of any kind to the Property
except a claim of payment for their safe custody or administration or, in the
case of cash deposits, liens or rights in favor of creditors of the Subcustodian
arising under bankruptcy, insolvency, or similar laws, and (b) beneficial
ownership of such Property may be freely transferred without the payment of
money or value other than for safe custody or administration. Any Subcustodian
may hold Property in a securities depository and may utilize a clearing agency."
3. In acting as a Foreign Custody Manager, the Custodian shall exercise
reasonable care, prudence and diligence such as a person having responsibility
for the safekeeping of fund assets would exercise.
4. The Custodian shall provide the Board of Directors of the Client
with written quarterly reports for use at the Client's quarterly Board of
Directors meetings regarding the placement of the Property with a particular
Eligible Foreign Custodian and any material changes to the arrangements with any
Eligible Foreign Custodian holding any Property.
5. In acting as a Foreign Custody Manager, the Custodian shall not
supervise, recommend or advise the Client relative to the investment, purchase,
sale, retention or disposition of any Property in any particular country,
including with respect to prevailing country risks.
6. (a) The Client represents that it (i) has the authority and power to
delegate to the Custodian the duties set forth herein and (ii) has taken all
requisite action (corporate or otherwise) to authorize the execution and
delivery of this Amendment.
(b) The Custodian represents that it (i) is a U.S. Bank (as
defined in Rule 17f-5) and (ii) has taken all requisite action (corporate or
otherwise) to authorize the execution and delivery of this Amendment.
7. Except as expressly amended hereby, all terms and provisions of the
Agreement are and shall continue to be in full force and effect. This Amendment
shall be construed in accordance with the applicable laws of the State of New
York. This Amendment may be executed by one or both of the parties hereto on any
number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.
If the foregoing corresponds to your understanding of our agreement,
please indicate your acceptance by the signature of your authorized
representative below.
Yours truly,
XXXXXX XXXXXXX TRUST COMPANY
By: /s/ X. Xxxxxxxx
Name:
Title:
Agreed and accepted:
AMERICAN SKANDIA TRUST
By: /s/ Xxxx Xxxxx
Name: Xxxx Xxxxx
Title: Vice President
Date: April 10, 1998
