CUSTOMER AGREEMENT BETWEEN
XXXXXXX XXXXX FUTURES INC.
AND EACH TRUST ON BEHALF OF ITSELF OR ITS
SEPARATE PORTFOLIOS AS SET FORTH IN APPENDIX A
(EACH HEREINAFTER REFERRED TO
IN ITS INDIVIDUAL CAPACITY AS "CUSTOMER")
In consideration of acceptance by Xxxxxxx Xxxxx Futures Inc. ("Merrill") of an
account for each Trust on behalf of itself or its separate portfolios as set
forth in Appendix A (each hereinafter referred to in its individual capacity as
"Customer"), introduced by Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc. which is
an affiliated corporation authorized to enter into this agreement and provide
certain services pursuant to the agreement on behalf of Xxxxxxx, Xxxxxxx and
Customer agree as follows:
1. Customer authorizes Merrill to purchase and sell futures contracts, option
contracts thereon and foreign futures and foreign options (hereinafter referred
to collectively as "Contracts") traded on duly registered boards of trade for
Customer's account in accordance with Customer's oral and written instructions
from persons designated by Customer by resolution of Customer's Board of
Directors, managing Partner, Board of Trustees, or person(s) responsible for
the management of Customer's account, duly certified and delivered to Merrill.
Customer hereby waives any defense that any such instruction was not in writing
as may be required by the Statute of Frauds or any other law, rule or
regulation.
2. Customer shall in connection with Contract transactions pay Merrill (1)
brokerage and commission charges as agreed upon by Merrill and Customer from
time to time, (2) any charges imposed on any transaction undertaken for Customer
by the contract market, exchange or clearinghouse through which it is executed
and any tax or fee imposed on such transactions by any competent authority
or self-regulatory organization, (3) any margin required by Merrill for
Customer due to the variation in value of one or more outstanding Contracts
purchased or sold by Customer ("Variation Margin") in accordance with Paragraph
7 hereof, or as required by Merrill due to an increase in margin
requirements for new or existing positions, and (4) interest and service
charges on any Customer deficit balances at the rates customarily charged by
Merrill, together with Xxxxxxx'x costs and attorney's fees incurred in
collecting such deficit. Such payments shall be made in Federal funds to
Merrill at such address as Merrill may designate.
3. A detailed statement of all transactions for or on the Customer's behalf
shall be furnished to Customer on a daily and a monthly basis. Such statements
shall be conclusive and binding on the Customer unless the Customer notifies
Merrill of any objection within five business days from the day the Customer
receives such statement; provided however that with respect to monthly
statements only the Customer may make such objection within ten business days.
4. Customer shall timely deposit and maintain in the Safekeeping Account at all
times Initial Margin (including any additional original margin requirements for
Customer's short option positions) ("Initial Margin") for Customer's
account in accordance with the Procedural Agreement. Customer shall timely pay
to Merrill the amount of any additional or Variation Margin with respect to
Customer's open positions on Contracts in accordance with the Procedural
Agreement. If, upon notice given by Merrill as set forth in the Procedural
Agreement, Customer fails to provideadditional or Variation Margin or if
Customer fails to deposit or maintain in the Safekeeping Account the required
Initial Margin, Merrill may without further notice to Customer take any action,
set forth in Paragraphs 12 and 14 hereof.
5. Customer shall make timely delivery of or payment for financial instruments
in compliance with the terms of the Contracts purchased or sold by Customer
through Merrill unless such Contracts have been terminated by an offsetting
purchase or sale prior to the delivery date. Customer shall advise Merrill of
its intentions with respect to the delivery of or payment for such financial
instruments, and Merrill shall be entitled to receive appropriate assurances
with respect thereto.
6. Customer acknowledges that (a) any trading recommendations and market or
other information communicated to Customer by Merrill are incidental to the
conduct of Xxxxxxx'x business as a futures commission merchant and do not
constitute an offer to sell or the solicitation of any offer to buy any
Contracts or instrument that is the subject of any Contract; (b) such
recommendation and information, although based upon information obtained from
sources believed by Merrill to be reliable, may be incomplete, may not be
verified, and may be changed without notice to Customer; and (c) Merrill makes
no representation , warranty or guarantee as to the accuracy or completeness of
any market or other information or trading recommendation furnished to Customer.
Customer understands that officers, employees, or affiliates of Merrill may have
a position in, may intend to, and may, buy or sell, Contracts or instruments
that are the subject of Contracts, including Contracts which are the subject of
information or recommendations furnished to Customer, and that the position or
transactions of any such officer, employee, or affiliate may or may not be
consistent with the recommendations furnished by Merrill to Customer.
7. All transactions by Merrill on Customer's behalf shall be subject to the
applicable constitution, bylaws, rules, regulations, customs, usages, rulings,
and interpretations of the contract market and its clearinghouse on which such
transactions are executed or cleared by Merrill or its agents for Customer's
account, and to all applicable governmental acts and statutes (such as the
Commodity Exchange Act) and to rules and regulations made thereunder; Merrill
shall not be liable to Customer as a result of any action taken by Merrill or
its agents to comply with any such constitution, bylaw, rule, regulation,
custom, usage, ruling, interpretation, act or statue.
8. Merrill shall have no responsibility for delays in the transmission of orders
due to (a) breakdown or failure of transmission or communication facilities, or
(b) any other cause beyond Xxxxxxx'x control.
9. Merrill shall have no responsibility for compliance by Customer with any law
or regulation governing Customer's conduct as a fiduciary.
10. Merrill shall have no responsibility for compliance by any investment
adviser or commodity trading advisor of Customer with any law or regulation
governing the conduct of such investment adviser or commodity trading advisor as
a fiduciary to Customer.
11. Customer represents that (a) Customer is duly registered under the
Investment Company Act of 1940, as amended, and is validly existing and
empowered to enter into this agreement and to effectuate transactions in
financial futures contracts, and options on futures or cash contracts as
contemplated hereby; (b) Customer has reviewed the registration requirements
pertinent to commodity pool operators and commodity trading advisors of the
Commodity Futures Trading Commission and the National Futures Association in
accordance with the requirements of the Commodity Exchange Act and the
regulations of the Commodity Futures Trading Commission and has determined that
Customer and any investment adviser or commodity trading advisor of Customer are
in compliance with such requirements to the extent applicable.
12. In the event that (a) Customer shall be dissolved, become insolvent or in
any other way terminate; (b) fail to deposit or maintain Initial Margin or make
payment of additional or Variation Margin, as set forth in Paragraph 4 hereof;
or (c) in the event Merrill reasonably feels that it is necessary for its
protection, Merrill may close out Customer's open Contracts in whole or in part,
sell any or all of Customer's property held by Merrill, buy any securities
or other property for Customer's account, and cancel any outstanding orders
and commitments made by Merrill on behalf of Customer. Subject to
Xxxxxxx'x obligation to use its best efforts to obtain a fair and reasonable
price, any such sale, purchase, or cancellation may be made at Xxxxxxx'x
discretion on the contract or other market or through the clearinghouse where
such business is then transacted without advertising the same and without
notice to Customer, and without prior tender, demand or call upon Customer.
Customer shall remain liable for and shall pay to Merrill the amount of any
deficiency resulting from any transaction described above.
13. As used herein, the term insolvent means that (a) an order, judgment or
decree has been entered under the bankruptcy, reorganization, compromise,
arrangement, insolvency, readjustment or debt, dissolution or liquidation or
similar law (herein called the "Bankruptcy Law") or any jurisdiction
adjudicating the Customer insolvent; or (b) the Customer has petitioned or
applied to any tribunal for, or consented to, the appointment of, or taking
possession by, a trustee, receiver, liquidator or similar official, of the
Customer, or commenced a voluntary case under the Bankruptcy Law of the United
States or any proceedings related to the Customer under the Bankruptcy Law of
any other jurisdiction, whether now or hereafter in effect; or (c) any such
petition or application has been filed, or any such proceedings commenced,
against the Customer and the Customer by any act has indicated its approval
thereof, consent thereto or acquiescence therein, or an order for relief has
been entered in an involuntary case against Customer under the Bankruptcy Law of
the United States, as now or hereafter constituted, or an order, judgment or
decree has been entered therein appointing any such trustee, receiver,
liquidator or similar official, or approving the petition in any such
proceedings, and such order, judgment or decree remains unstayed and in effect
for more than 30 days.
14. If at any time Customer fails to deliver to Merrill any property previously
sold by Merrill on Customer's behalf or fails to deliver financial instruments
in compliance with Contracts, Customer authorizes Merrill in its discretion to
borrow or to buy any property necessary to make delivery thereof, and Customer
shall pay Merrill for any cost, loss and damage which Merrill may sustain from
its inability to borrow or buy any such property.
15. All communications to Customer shall be to: (Trust Name), Xxx Xxxxxxxxx
Xxxxxx, Xxxxxx, XX 00000, Attention: Xxxxxx Xxxx; with copies to: Colonial
Capital Management, Xxx Xxxxxxxxx Xxxxxx, Xxxxxx, XX 00000, Attention: Xxxxxx
Xxxxxxxxx; or to such other addresses as Customer may hereafter direct Merrill
in writing to use. All communications to Merrill shall be to: Xxx Xxxxxxxxx
Xxxxxx - 00xx Xxxxx, Xxxxxx, XX 00000, Attention: Xxxx Loughborough; with
copies to: Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc., World Financial
Center, Xxxxx Xxxxx-Xxxxxxxx X, 00xx Xxxxx, Xxx Xxxx, XX 00000-0000,
Attention: Xxxxxx X. Xxxxxxx; or at such other addresses as the parties may
designate.
16. This Agreement, the Procedural Agreement and the Safekeeping Agreement
referred to in the Procedural Agreement contain the entire agreement between the
parties and supersede any prior agreements between the parties as to the subject
matter of this Agreement. Subject to Paragraph 7 hereof, no provision of this
Agreement shall in any respect be waived, altered, modified, or amended unless
such waiver, alteration, modification, or amendment be committed to in writing
and signed by Customer and a duly authorized officer of Merrill.
17. THIS AGREEMENT SHALL BE CONSTRUED ACCORDING TO, AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO SHALL BE GOVERNED BY, THE LAWS OF THE STATE
OF NEW YORK.
18. This Agreement shall inure to the benefit of Merrill and Customer and their
respective successors and assigns.
19. If any term or provision hereof, or the application thereof to any person or
circumstances, shall to any extent be contrary to any contract market, exchange
or government regulation or otherwise invalid or unenforceable, the remainder of
this Agreement or the application of such term or provision to persons or
circumstances other than those as to which it is contrary, invalid, or
unenforceable, shall not be affected thereby, and it shall be enforced to the
fullest extent permitted by regulation and law.
20. The rights and remedies conferred upon the parties hereto shall be
cumulative, and the exercise or waiver of any thereof shall not preclude or
inhibit the exercise of additional rights and remedies.
21. This Agreement is executed on behalf of the Trustees of the Customer as
Trustees and not individually and the obligations of this Agreement are not
binding upon any of the Trustees but are binding upon the assets and property of
the Customer.
22. Customer represents that (a) Customer will promptly notify Merrill in
writing if any of the above representations shall materially change or cease to
be true and correct; (b) Customer has read and understands the Commodity Futures
Trading Commission Risk Disclosure Statement, the Options on Futures Risk
Disclosure Statement (under separate cover), Foreign Futures and Foreign Options
Risk Disclosure Statement and the Margin Disclosure Statement; and (c) no person
or entity has any interest in or control of the account to which entity has any
interest in or control of the account to which this Agreement pertains other
than Customer and the persons designated by Customer as set forth in Paragraph 1
hereof.
23. Customer and Merrill agree to promptly furnish appropriate financial
statements to each other to show any material changes in their financial
positions and to furnish such other information concerning each other as each
may reasonably request.
24. Where the context hereof requires, the singular shall import the plural and
the masculine shall import the feminine and neuter.
25. Merrill shall be entitled to rely on any instruction received from any
person identified in writing to Merrill by Customer and such instruction shall
bind Customer. Customer agrees to hold Merrill harmless against any action taken
by Merrill in reliance upon this provision.
26. This Agreement shall become a binding contract between Customer and Merrill
when signed by both parties.
Duly authorized for each Trust on behalf of itself or its separate portfolios as
set forth in Appendix A
By: Xxxxxx Xxxx
Title: Asst. Secretary
The undersigned Secretary of, or person serving in a similar capacity with
respect to each Trust on behalf of itself or itself or its separate portfolios
as set forth in Appendix A, the Customer which is a party to this Agreement, the
Procedural Agreement and the Safekeeping Agreement, hereby certifies that the
individual whose name appears above as the signatory of this Agreement, the
Procedural Agreement and the Safekeeping Agreement on behalf of the Customer
holds the position with the Customer as identified above and is authorized to
execute this Agreement on behalf of the Customer.
Duly authorized for each Trust on behalf of itself or its separate portfolios as
set forth in Appendix A
By: Xxxxx Xxxxxxxxxx
Title: Asst. Secretary
Approved:
XXXXXXX XXXXX, PIERCE, FENNER, & XXXXX, INC
By: Xxxx X. Xxxxx
Title: Director-DMG
XXXXXXX XXXXX FUTURES INC.
FUTURES CUSTOMER AGREEMENT
RISK DISCLOSURE STATEMENT
This statement is furnished to you because Regulation 1.55 of the Commodity
Futures Trading Commission requires it.
The risk of loss in trading commodity futures contracts can be substantial. You
should therefore carefully consider whether such trading is suitable for you in
light of your financial condition. In considering whether to trade, you should
be aware of the following:
(1) You may sustain a total loss of the Initial Margin funds and any additional
funds that you deposit with your broker to establish or maintain a position in
the commodity futures market. If the market moves against your position you may
be called upon by your broker to deposit a substantial amount of additional
margin funds, on short notice, in order to maintain your position. If you do not
provide the required funds within the prescribed time, your position may be
liquidated at a loss, and you will be liable for any resulting deficit in your
account.
(2) Under certain market conditions, you may find it difficult or impossible to
liquidate a position. This can occur, for example, when the market makes a
"limit move."
(3) Placing contingent orders, such as a "stop-loss" or "stop-limit" order, will
not necessarily limit your losses to the intended amounts since market
conditions may make it impossible to execute such orders.
(4) A "spread" position may not be less risky than a simple "long" or "short"
position.
(5) The high degree of leverage that is often obtainable in futures trading
because of the small margin requirements can work against you as well as for
you. The use of leverage can lead to large losses as well as gains.
This brief statement cannot, of course, disclose all the risks and other
significant aspects of the commodity markets. You should, therefore, carefully
study futures trading before you trade.
Customer acknowledges that it has received and that it understands the risk
disclosure document provided to it in compliance with Regulation 1.55 of the
Commodity Futures Trading Commission.
Duly authorized for each Trust on behalf of itself or its separate portfolios as
set forth in Appendix A
By: Xxxxxx Xxxx
Title: Asst. Secretary
Date: 6/10/92
PLEASE SIGN AND RETURN ONE COPY TO XXXXXXX XXXXX FUTURES INC.
RETAIN THE DUPLICATE COPY FOR YOU RECORDS.
XXXXXXX XXXXX FUTURES INC.
FUTURES CUSTOMER AGREEMENT
COMMODITY OPTIONS RISK DISCLOSURE STATEMENT
Customer acknowledges that it has received (delivered under separate cover) and
that it understands the options risk disclosure statement in compliance with
Regulation 33.7 of the Commodity Futures Trading Commission.
Duly authorized for each Trust on behalf of itself or its separate portfolios as
set forth in Appendix A
By: Xxxxxx Xxxx
Title: Asst. Secretary
Date: 6/10/92
PLEASE SIGN AND RETURN ONE COPY TO XXXXXXX XXXXX FUTURES INC.
RETAIN THE DUPLICATE COPY FOR YOU RECORDS
XXXXXXX XXXXX FUTURES INC.
FUTURES CUSTOMER AGREEMENT
HEDGE AGREEMENT
(To be signed by hedge customers only)
The undersigned represents that all transactions in this account are for hedging
purposes only in accordance with the definition in the requirements of CFTC
Regulation 1.3(z).
These transactions are not for speculation. In the event that the undersigned
intends to enter into any transactions in this account for speculative purposes,
we shall notify Xxxxxxx Xxxxx in writing prior to the entry of such
transactions.
The undersigned is familiar with all laws, rules and regulations concerning
hedging in such contracts.
Duly authorized for each Trust on behalf of itself or its separate portfolios as
set forth in Appendix A
By: Xxxxxx Xxxx
Title: Asst. Secretary
Date: 6/10/92
CFTC Regulation 190.06 requires that in the unlikely event of Xxxxxxx Xxxxx'x
bankruptcy, you be given the opportunity to give instructions to the bankruptcy
trustee regarding the disposition of your open futures positions. Unless you
indicate a contrary preference in the space provided below, the trustee would be
authorized to liquidate your open positions, without seeking further
instructions from you.
( ) Customer would prefer to be contacted by the
bankruptcy trustee for instructions regarding the disposition of its open
futures positions.
PLEASE SIGN AND RETURN ONE COPY TO XXXXXXX XXXXX FUTURES INC.
RETAIN THE DUPLICATE COPY FOR YOU RECORDS.
APPENDIX A
----------
Colonial Trust III
------------------
Colonial Federal Securities Fund (formerly CGSPT)
Colonial Trust IV
-----------------
Colonial High Yield Municipal Fund
Colonial Trust V
----------------
Colonial Connecticut Tax-Exempt Fund
Colonial Investment Grade Municipal Trust
Colonial High Income Municipal Trust
APPENDIX A
----------
Colonial Trust I
----------------
Colonial High Yield Securities Fund
Colonial Trust IV
-----------------
Colonial Tax-Exempt Fund
Colonial Tax-Exempt Insured Fund
Colonial Trust V
----------------
Colonial California Tax-Exempt
Colonial Massachusetts Tax-Exempt Fund
Colonial Michigan Tax-Exempt Fund
Colonial Minnesota Tax-Exempt Fund
Colonial New York Tax-Exempt Fund
Colonial Ohio Tax-Exempt Fund
Colonial Municipal Income Trust
Colonial InterMarket Income Trust I
Appendix A
----------
Colonial Trust V
----------------
Colonial Florida Tax-Exempt Fund
AMENDMENT TO PROCEDURAL AGREEMENT AND SAFEKEEPING AGREEMENT
-----------------------------------------------------------
("Collectively "Agreement")
---------------------------
WITNESSETH THAT:
This Amendment dated November 5, 1993 shall serve as an attachment to the
Agreements dated April 12th 1993 by and between United Missouri Bank, N.A.
("Bank"), Xxxxxxx Xxxxx Futures Inc.("Broker"), various Colonial Funds listed on
Appendix A ("Customer").
1) The Appendix to each of the Agreements shall be amended to add the following
Fund:
Colonial Trust V
----------------
Colonial North Carolina Tax Exempt Fund
IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be
executed in its name and on its behalf by a duly authorized representative as of
the aforementioned day and year.
Broker: Xxxxxxx Xxxxx Futures Inc.
By: Xxxx X. Xxxxx
Title:
Customer: Colonial North Carolina Tax Exempt Fund
By: Xxxxxxx X. Xxxxxx
Title: Assistant Secretary
Bank: United Missouri Bank N.A.
By: Xxxxxxxx Xxxxxxxx
Title: Sr. Vice President
AMENDMENT TO PROCEDURAL AGREEMENT AND SAFEKEEPING AGREEMENT (Collectively
"Agreements")
WITNESSETH THAT:
This Amendment dated March 7, 1994 shall serve as an attachment to the
Agreements dated April 12th 1993 by and between United Missouri Bank, N.A.
("Bank"), Xxxxxxx Xxxxx Futures Inc. ("Broker"), and various Colonial Funds
listed on Appendix A ("Customer").
1) The Appendix to each of the Agreements shall be amended to add the
following Funds:
Colonial Trust IV
Colonial Intermediate Tax-Exempt Fund
Colonial Short-Term Tax-Exempt Fund
IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be
executed in its name and on its behalf by a duly authorized representative as of
the aforementioned day and year.
Broker: Xxxxxxx Xxxxx Futures Inc.
By: Xxxx X. Xxxxx
Title:
Customer: Colonial Trust IV on behalf of
Colonial Intermediate Tax-Exempt Fund
Colonial Short-Term Tax-Exempt Fund
By: Xxxxxxx X. Xxxxxx
Title: Assistant Secretary
Bank: United Missouri Bank N.A.
By: Xxxxxxxx X. Xxxxxxxx
Title: Sr. Vice President
AMENDMENT TO CUSTOMER AGREEMENT
WITNESSETH THAT:
This Amendment dated March 7, 1994 shall serve as an attachment to the
Agreement dated April 12th 1993 by and between Xxxxxxx Xxxxx Futures Inc.
("Broker"), and various Colonial Funds listed on Appendix A ("Customer").
1) The Appendix to the Agreement shall be amended to add the following Funds:
Colonial Trust IV
Colonial Intermediate Tax-Exempt Fund
Colonial Short-Term Tax-Exempt Fund
IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be
executed in its name and on its behalf by a duly authorized representative as of
the aforementioned day and year.
Broker: Xxxxxxx Xxxxx Futures Inc.
By: Xxxx X. Xxxxx
Title:
Customer: Colonial Trust IV on behalf of
Colonial Intermediate Tax-Exempt Fund
Colonial Short-Term Tax-Exempt Fund
By: Xxxxxxx X. Xxxxxx
Title: Assistant Secretary
AMENDMENT TO CUSTOMER AGREEMENT
WITNESSETH THAT:
This Amendment dated November 5, 1993 shall serve as an attachment to the
Agreements dated April 12th 1993 by ad between Xxxxxxx Xxxxx Futures Inc.
("Broker") and various Colonial Funds listed on Appendix A ("Customer").
1) The Appendix to each of the Agreements shall be amended to add the
following Fund:
Colonial Trust V
----------------
Colonial North Carolina Tax Exempt Fund
IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be
executed in its name and on its behalf by a duly authorized representative as of
the aforementioned day and year.
Broker: Xxxxxxx Xxxxx Futures Inc.
By: Xxxx X. Xxxxx
Title:
Customer: Colonial North Carolina Tax Exempt Fund
By: Xxxxxxx X. Xxxxxx
Title: Assistant Secretary
