AMENDMENT NO. 2 TO
CUSTODY AGREEMENT
AMENDMENT NO. 2 dated as of February 4, 2005, to the Custody Agreement,
dated as of July 22, 1988 and amended as of July 1, 1991, between THE XXXXX
AMERICAN FUND (the "Fund") and CUSTODIAL TRUST COMPANY (the "Custodian").
The Fund and the Custodian hereby agree as follows:
1. DEFINITIONS. Article I is amended by supplementing it with the following
additional definitions beginning with Article I.5 and renumbering the remaining
definitions accordingly:
"(5) 'DOMESTIC SECURITIES DEPOSITORY' means The Depository Trust Company
and (provided that Custodian has received a copy of a resolution of the
Board of Trustees, certified by an Officer, specifically approving the
use of such clearing agency as a depository for the Fund) any other
clearing agency registered with the Securities and Exchange Commission
under Section 17A of the Securities Exchange Act of 1934, which acts as a
system for the central handling of Securities where all Securities of any
particular class or series of any issuer deposited within the system are
treated as fungible and may be transferred or pledged by bookkeeping
entry without physical delivery of the Securities."
(6) 'ELIGIBLE DOMESTIC BANK' means a bank as defined in the 1940 Act.
(7) 'ELIGIBLE FOREIGN CUSTODIAN' means any banking institution, trust
company or other entity organized under the laws of a country other than
the United States which is eligible under the 1940 Act and Rule 17f-5
thereunder to act as a custodian for securities and other assets of a
Portfolio held outside the United States.
(8) 'ELIGIBLE FOREIGN SECURITIES DEPOSITORY' means an Eligible Securities
Depository as defined in Rule 17f-7 under the 1940 Act.
(9) 'FOREIGN CUSTODY MANAGER' has the same meaning as in Rule 17f-5 under
the 1940 Act.
(10) 'FOREIGN ASSETS' has the same meaning as in Rule 17f-5 under the
1940 Act."
In addition, the definition of "Securities Depository" (formerly Article I.12,
renumbered as Article I.18) is replaced by the following:
"(18) 'SECURITIES DEPOSITORY' means any Domestic Securities Depository or
Eligible Foreign Securities Depository."
2. ELIGIBLE SECURITIES DEPOSITORY. The Custody Agreement is amended by
replacing the term "Securities Depository" with the term "Domestic Securities
Depository" in Article III.5, 6(a), and 7(b).
3. ELIGIBLE DOMESTIC BANK. Article III.3 is amended by replacing the term
"domestic bank or trust company" with "Eligible Domestic Bank".
4. APPOINTMENT OF FOREIGN SUB-CUSTODIANS. Article III.3 is amended by
supplementing it with a new paragraph (d), as follows:
"(d)(A) Unless otherwise instructed in Written Instructions, Custodian is
authorized to hold any Foreign Asset of a Portfolio in any country in
which all or a portion of the primary market for such Foreign Asset is
situated.
(B) At any time and from time to time, Custodian in its discretion may
appoint and employ in accordance with the 1940 Act, and in its reasonable
discretion but with 30 days'prior written notice to the Fund (unless, in
Custodian's sole reasonable discretion, market, political or other
conditions do not permit the delay such notice entails) may also cease to
employ, (I) any overseas branch of any Eligible Domestic Bank, or (II)
any Eligible Foreign Custodian selected by the Foreign Custody Manager,
in each case as a foreign sub-custodian for Foreign Assets of a
Portfolio, provided, however, that the employment of any such overseas
branch has been approved by the Fund and, provided further, that, in the
case of any such Eligible Foreign Custodian, the Foreign Custody Manager
has approved the agreement pursuant to which Custodian employs such
Eligible Foreign Custodian.
(C) Set forth on Exhibit C hereto, with respect to each Portfolio, are
the foreign sub-custodians that Custodian may employ pursuant to Article
III.3(d)(B) above. Exhibit C shall be revised from time to time as
foreign sub-custodians are added or deleted.
(D) If the Fund proposes to have a Portfolio make an investment which is
to be held in a country in which Custodian does not have appropriate
arrangements in place with either an overseas branch of an Eligible
Domestic Bank or an Eligible Foreign Custodian selected by the Foreign
Custody Manager, then the Fund shall inform Custodian sufficiently in
advance of such investment to allow Custodian to make such arrangements.
(E) Notwithstanding anything to the contrary in Article IX.1 and Article
X.1 below and provided that Custodian has used reasonable commercial
efforts in good faith to obtain from a foreign sub-custodian appointed
pursuant to this Agreement such indemnification as is provided for in the
agreement pursuant to which Custodian employs such foreign sub-custodian,
Custodian shall have no greater liability to any Portfolio or the Fund
for the actions or omissions of such foreign sub-custodian than any such
foreign sub-custodian has to Custodian pursuant to such agreement, and
Custodian shall not be required to discharge any such liability which may
be imposed on it unless and until such foreign sub-custodian has
effectively indemnified Custodian against it or has otherwise discharged
its liability to Custodian in full. In the event that Custodian does not
institute legal proceedings based on a foreign sub-custodian's liability
to Custodian, the Fund shall, to the extent of any loss by the Fund and
to the extent permitted by applicable law and not prohibited by contract,
be subrogated to all of the rights of recovery of Custodian against such
foreign sub-custodian. To the extent permitted by law, Custodian shall
execute and deliver any and all such instruments and documents as the
Fund shall reasonably request and take such other actions
as necessary or appropriate to assist the Fund in the exercise of such
rights of recovery and to enable the Fund to recover against such foreign
sub-custodian, and the Fund shall reimburse the Custodian for any
reasonable out-of-pocket costs incurred in connection therewith.
(F) Upon the request of the Foreign Custody Manager, Custodian shall
furnish to the Foreign Custody Manager information concerning all foreign
sub-custodians employed pursuant to this Agreement which shall be similar
in kind and scope to any such information that may have been furnished to
the Foreign Custody Manager in connection with the initial approval by
the Foreign Custody Manager of the agreements pursuant to which Custodian
employs such foreign sub-custodians or as otherwise required by the 1940
Act."
5. ELIGIBLE FOREIGN SECURITIES DEPOSITORIES. Article III.5 is amended by
supplementing it with a new paragraph (g), as follows:
"(g)(A)(i) Unless otherwise instructed in Written Instructions, Custodian
may place and maintain Foreign Assets of a Portfolio with an Eligible
Foreign Securities Depository, provided that it has delivered to the Fund
an analysis of the custody risks associated with maintaining assets with
such Eligible Foreign Securities Depository. Custodian shall monitor such
custody risks on a continuing basis and promptly notify the Fund of any
material change in such risks.
(ii) In performing its obligations under Article III.5 (g)(A)(i) above,
Custodian shall exercise reasonable care, prudence and diligence. In the
exercise of such care, prudence and diligence, Custodian may rely upon
assessments, determinations and monitoring made and performed with
respect to an Eligible Foreign Securities Depository by Citibank, N.A. or
such other operator of a global custody system as from time to time may
be employed by Custodian and approved by the Fund."
6. RELATIONSHIP WITH SECURITIES DEPOSITORIES. Article III.5 is further
amended by supplementing it with a new paragraph (h), as follows:
"No Book-Entry System, Securities Depository, or other securities
depository or clearing agency (whether foreign or domestic) which it is
or may become standard market practice to use for the comparison and
settlement of trades in securities shall be an agent or sub-contractor of
Custodian for purposes of Article III.3(a) above or otherwise."
7. EFFECTIVE DATE. This Amendment No. 2 shall be effective as of the date
hereof.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment
No. 2 to be executed by its representative thereunto duly authorized, all as of
the day and year first above written.
THE XXXXX AMERICAN FUND CUSTODIAL TRUST COMPANY
By:_________________________________ By:________________________________
Xxxxxxxxx X. Xxxx Authorized Officer
Treasurer
CITIBANK SUB-CUSTODIAN NETWORK
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Branches/subsidiaries 44
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Third-party agents 28
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ICSDs 2
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TOTAL 74
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SUB-CUSTODIAN NETWORK
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COUNTRY SUB-CUSTODIAN STATUS
----------------- ------------------------------------------- ------------------
Argentina Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Australia Subsidiary
CITIBANK PTY LIMITED
----------------- ------------------------------------------- ------------------
Austria Citibank N.A (through Milan) Branch
----------------- ------------------------------------------- ------------------
Bahrain Agent
HSBC BANK MIDDLE EAST
----------------- ------------------------------------------- ------------------
Bangladesh Standard Chartered Bank Agent
----------------- ------------------------------------------- ------------------
Belgium Fortis Bank (Nederland) NV Agent
----------------- ------------------------------------------- ------------------
Bermuda Bank of Bermuda Agent
----------------- ------------------------------------------- ------------------
Botswana Barclays Bank of Botswana Limited Agent
----------------- ------------------------------------------- ------------------
Brazil Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Bulgaria ING NV Xxxxx Xxxxxx Agent
----------------- ------------------------------------------- ------------------
Canada Citibank Canada Subsidiary
----------------- ------------------------------------------- ------------------
Chile Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
China Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Colombia Cititrust Colombia S.A Subsidiary
----------------- ------------------------------------------- ------------------
Costa Rica Banco BCT Agent
----------------- ------------------------------------------- ------------------
Croatia Privredna Banka Zagreb Dd. Agent
----------------- ------------------------------------------- ------------------
Cyprus Hellenic Bank Ltd Agent
----------------- ------------------------------------------- ------------------
Czech Republic Citibank, AS Subsidiary
----------------- ------------------------------------------- ------------------
Denmark Nordea Bank Danmark A/S Agent
----------------- ------------------------------------------- ------------------
Dubai (U.A.E.) The Hongkong & Shanghai Banking Corp Agent
----------------- ------------------------------------------- ------------------
Egypt Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Estonia Hansabank Ltd Agent
----------------- ------------------------------------------- ------------------
Finland Nordea Bank Finland Plc Agent
----------------- ------------------------------------------- ------------------
France Citibank International Plc. Subsidiary
----------------- ------------------------------------------- ------------------
Germany Citigroup Global Markets
Deutschland AG & Co. KgaA Subsidiary
----------------- ------------------------------------------- ------------------
Greece Citibank International Plc. Subsidiary
----------------- ------------------------------------------- ------------------
Hong Kong Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Hungary Citibank Rt Subsidiary
----------------- ------------------------------------------- ------------------
Iceland Kaupthing Bank (Arion Custody Services) Agent
----------------- ------------------------------------------- ------------------
India Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
----------------- ------------------------------------------- ------------------
Indonesia Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Ireland Citibank International Plc Branch
----------------- ------------------------------------------- ------------------
Israel Bank Hapoalim Agent
----------------- ------------------------------------------- ------------------
Italy Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Japan Citibank N.A. Branch
----------------- ------------------------------------------- ------------------
Jordan Arab Bank. Agent
----------------- ------------------------------------------- ------------------
Kazakhstan SB HSBC Kazakhstan JSC Agent
----------------- ------------------------------------------- ------------------
Korea Citibank Korea, Inc. Subsidiary
----------------- ------------------------------------------- ------------------
Latvia Hansabank Agent
----------------- ------------------------------------------- ------------------
Lithuania HansaBank Agent
----------------- ------------------------------------------- ------------------
Malaysia Citibank Berhad Subsidiary
----------------- ------------------------------------------- ------------------
Malaysia Citibank Berhad Subsidiary
----------------- ------------------------------------------- ------------------
Malta HSBC Bank Malta plc Agent
----------------- ------------------------------------------- ------------------
Mexico Banamex S.A. Subsidiary
----------------- ------------------------------------------- ------------------
Morocco Banque Commerciale du Maroc Agent
----------------- ------------------------------------------- ------------------
Netherlands Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
New Zealand Citibank Nominees (New Zealand) Limited Subsidiary
----------------- ------------------------------------------- ------------------
Norway Nordea Bank Norge ASA Agent
----------------- ------------------------------------------- ------------------
Pakistan Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Peru Citibank del Peru S.A. Subsidiary
----------------- ------------------------------------------- ------------------
Philippines Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Poland Bank Handlowy w Warszawie S.A. Subsidiary
----------------- ------------------------------------------- ------------------
Portugal Citibank International Plc Subsidiary
----------------- ------------------------------------------- ------------------
Puerto Rico Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Romania Citibank Romania S.A Subsidiary
----------------- ------------------------------------------- ------------------
Russia ZAO Citibank Subsidiary
----------------- ------------------------------------------- ------------------
Singapore Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Slovak Republic Ceskoslovenska Obchodni Banka A.S (CSOB) Agent
----------------- ------------------------------------------- ------------------
Slovenia Bank Austria Agent
----------------- ------------------------------------------- ------------------
South Africa First National Bank of
South Africa Limited Agent
----------------- ------------------------------------------- ------------------
Spain Citibank International Plc Subsidiary
----------------- ------------------------------------------- ------------------
Sri Lanka Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Sweden SEB Agent
----------------- ------------------------------------------- ------------------
Switzerland Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Taiwan Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Thailand Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Turkey Citibank A.S. Subsidiary
----------------- ------------------------------------------- ------------------
Ukraine ING Bank Agent
----------------- ------------------------------------------- ------------------
United Kingdom Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
United States Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Venezuela Citibank, N.A. Branch
----------------- ------------------------------------------- ------------------
Zimbabwe Barclays Bank of Zimbabwe Limited Agent
----------------- ------------------------------------------- ------------------
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INTERNATIONAL CENTRAL SECURITIES DEPOSITORIES
----------------- ------------------------------------------- ------------------
Euroclear Depository
----------------- ------------------------------------------- ------------------
Clearstream Depository
----------------- ------------------------------------------- ------------------
