EX-99.g3
2/1/01
AMENDED AND RESTATED
MUTUAL FUND CUSTODY AND
SERVICES AGREEMENT
TABLE OF CONTENTS
SECTION PAGE
DEFINITIONS ................................................................3
ARTICLE I - CUSTODY ........................................................5
1. Appointment of Custodian............................................5
2. Custody of Cash and Securities......................................5
3. Settlement of Fund Transactions.....................................9
4. Lending of Securities..............................................10
5. Persons Having Access to Assets of the Funds.......................10
6. Standard of Care; Scope of Custodial Responsibilities..............11
7. Appointment of Subcustodians......................................13
8. Overdraft Facility and Security for Payment........................13
9. Tax Obligations....................................................13
ARTICLE II - FOREIGN CUSTODY MANAGER SERVICES......................... ....14
1. Delegation.........................................................14
2. Changes to Appendix C..............................................14
3. Reports to Board...................................................14
4. Monitoring System..................................................14
5. Standard of Care...................................................14
6. Use of Securities Depositories.....................................14
ARTICLE III - Information Services.........................................16
1. Risk Analysis......................................................16
2. Monitoring of Securities Depositories..............................16
3. Use of Agents......................................................16
4. Exercise of Reasonable Care........................................16
5. Liabilities and Warranties.........................................16
ARTICLE IV - GENERAL PROVISIONS............................................17
1. Compensation.......................................................17
2. Insolvency of Foreign Custodians...................................17
3. Liability for Depositories.........................................17
4. Damages............................................................17
5. Indemnification; Liability of the Funds............................17
6. Force Majeure......................................................18
7. Termination........................................................18
8. Inspection of Books and Records....................................19
9. Miscellaneous......................................................19
APPENDIX A - Authorized Persons............................................22
APPENDIX B - Trust Officers................................................23
APPENDIX C - Selected Countries............................................24
APPENDIX D - Information Services Agreement................................25
APPENDIX E - List of Series................................................27
AMENDED AND RESTATED
MUTUAL FUND CUSTODY AND
SERVICES AGREEMENT
This AGREEMENT is effective as of May 1, 2001, and is between JNL SERIES
TRUST and JNL INVESTORS SERIES TRUST (each individually the "Trust"), a business
trust organized under the laws of the Commonwealth of Massachusetts having its
principal office and place of business at 000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000,
Xxxxxxx, XX 00000, and BOSTON SAFE DEPOSIT AND TRUST COMPANY, (the "Custodian")
a Massachusetts trust company with its principal place of business at Xxx Xxxxxx
Xxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000.
W I T N E S S E T H:
WHEREAS, the Trust is authorized to issue shares in separate series with
each such series representing interests in a separate portfolio of securities
and other assets, and the Trust has made the Series listed on Appendix E subject
to this Agreement (each such series, together with all other series subsequently
established by the Trust and made subject to the Agreement in accordance with
the terms hereof, shall be referred to as a "Fund" and collectively as the
"Funds");
WHEREAS, the Trust and the Custodian desire to restate the terms of
their existing custody agreement to reflect the changes to Rules 17f-5 and Rule
17f-7, and to set forth their agreement with respect to the custody of the
Funds' Securities and cash and the processing of Securities transactions;
WHEREAS, the Board desires to delegate certain of its responsibilities
for performing the services set forth in paragraphs (c)(1), (c)(2) and (c)(3) of
Rule 17f-5 to the Custodian as a Foreign Custody Manager; and
WHEREAS, the Custodian agrees to accept such delegation with respect to
Assets, including those held by Foreign Custodians in the Selected Countries as
set forth in jurisdictions listed on Appendix C as set forth in Article II;
WHEREAS, the Custodian agrees to perform the function of a Primary
Custodian under Rule 17f-7;
NOW THEREFORE, the Trust and the Custodian agree as follows:
DEFINITIONS
The following words and phrases, unless the context requires otherwise, shall
have the following meanings:
1. "Act": the Investment Company Act of 1940 and the Rules and
Regulations thereunder, all as amended from time to time.
2. "Agreement": this agreement and any amendments.
3. "Assets": any of the Funds' investments, including foreign
currencies and investments for which the primary market is
outside the United States, and such cash and cash equivalents
as are reasonably necessary to effect the Funds' transactions
in such investments.
4. "Authorized Person": the Chairman of the Trust's Board, its
President, and any Vice President, Secretary, Treasurer or any
other person, whether or not any such person is an officer or
employee of the Trust, duly authorized by the Board to add or
delete jurisdictions pursuant to Article II and to give
Instructions on behalf of a Fund which is listed in the
Certificate annexed hereto as Appendix A or such other
Certificate as may be received by the Custodian from time to
time.
5. "Board": the Board of Trustees (or the body authorized to
exercise authority similar to that of the board of directors
of a corporation) of the Trust.
6. "Book-Entry System": the Federal Reserve/Treasury book-entry
system for United States and federal agency Securities, its
successor or successors and its nominee or nominees.
7. "Business Day": any day on which the Fund, the Custodian,
the Book-Entry System and appropriate clearing corporation(s)
are open for business.
8. "Certificate": any notice, instruction or other instrument in
writing, authorized or required by this Agreement to be given
to the Custodian, which is actually received by the Custodian
and signed on behalf of a Fund by an Authorized Person or
Persons designated by the Board to issue a Certificate.
9. "Eligible Securities Depository": the meaning of the term set
forth in Rule 17f-7(b)(1).
10. "Foreign Custodian": (a) a banking institution or trust
company incorporated or organized under the laws of a country
other than the United States, that is regulated as such by the
country's government or an agency of the country's government;
(b)a majority-owned direct or indirect subsidiary of a U.S.
Bank or bank-holding company; or (c) any entity other than a
Securities Depository with respect to which exemptive or
no-action relief has been granted by the Securities and
Exchange Commission. For the avoidance of doubt, the term
"Foreign Custodian" shall not include Euroclear, Clearstream,
Bank One or any other transnational system for the central
handling of securities or equivalent book-entries regardless
of whether or not such entities or their service providers are
acting in a custodial capacity with respect to Assets,
Securities or other property of the Fund.
11. "Instructions": directions and instructions to the Custodian
from an Authorized Person in writing by facsimile or electronic
transmission subject to the Custodian's practices or any other
method specifically agreed upon, provided that the Custodian
may, in its discretion, accept oral directions and instructions
from an individual it reasonably believes to be an Authorized
Person and may require confirmation in writing.
12. "Primary Custodian": the meaning set forth in Rule 17f-7(b)(2).
13. "Prospectus": a Fund's current prospectus and statement of
additional information relating to the registration of the
Fund's Shares under the Securities Act of 1933, as amended.
14. "Risk Analysis": the analysis required under
Rule 17f-7(a)(1)(A).
15. "Rules 17f-4, 17f-5 and 17f-7": such Rules as promulgated
under Section 17(f) of the Act, as such rules (and any
successor rules or regulations) may be amended from time to
time.
16. "Security" or "Securities": bonds, debentures, notes, stocks,
shares, evidences of indebtedness, and other securities,
commodities, interests and investments from time to time owned
by the Funds.
17. "Securities Depository": a system for the central handling of
securities as defined in Rule 17f-4.
18. "Selected Countries": the jurisdictions listed on Appendix C as
such may be amended from time to time in accordance with
Article II.
19. "Shares": shares of each Fund, however designated.
20. "Transfer Agent": the person which performs the transfer agent
functions for a Fund.
ARTICLE I
CUSTODY PROVISIONS
1. Appointment of Custodian. The Board appoints, and the Custodian
accepts appointment as custodian of all the Securities and monies at the time
owned by or in the possession of the Funds during the period of this Agreement.
2. Custody of Cash and Securities.
(a) Receipt and Holding of Assets. The Funds will deliver
or cause to be delivered to the Custodian all
Securities and monies owned by it at any time during the
period of this Custody Agreement. The Custodian will not be
responsible for such Securities and monies until actually
received. The Board specifically authorizes the Custodian
to hold Securities, Assets or other property of the Funds
with any domestic subcustodian, or Securities Depository,
and Foreign Custodians or Eligible Securities Depositories
in the Selected Countries as provided in Article II.
Securities and monies of the Funds deposited in a
Securities Depository or Eligible Securities Depositories
will be reflected in an account or accounts which include
only assets held by the Custodian or a Foreign Custodian for
its customers.
(b) Disbursements of Cash and Delivery of Securities. The
Custodian shall disburse cash or deliver out Securities only
for the purposes listed below. Instructions must specify or
evidence the purpose for which any transaction is to be made
and the Funds shall be solely responsible to assure that
Instructions are in accord with any limitations or
restrictions applicable to the Funds
(1) In payment for Securities purchased for the applicable
Fund;
(2) In payment of dividends or distributions with respect
to Shares;
(3) In payment for Shares which have been redeemed by the
applicable Fund;
(4) In payment of taxes;
(5) When Securities are called, redeemed, retired, or
otherwise become payable;
(6) In exchange for or upon conversion into other
securities alone or other securities and cash pursuant
to any plan or merger, consolidation, reorganization,
recapitalization or readjustment;
(7) Upon conversion of Securities pursuant to their terms
into other securities;
(8) Upon exercise of subscription, purchase or other
similar rights represented by Securities;
(9) For the payment of interest, management or supervisory
fees, distributions or operating expenses;
(10) In payment of fees and in reimbursement of the expenses
and liabilities of the Custodian attributable to
the applicable Fund;
(11) In connection with any borrowings by the applicable
Fund or short sales of securities requiring a pledge
of Securities, but only against receipt of amounts
borrowed;
(12) In connection with any loans, but only against receipt
of adequate collateral as specified in Instructions
which shall reflect any restrictions applicable to the
Funds.
(13) For the purpose of redeeming shares of the capital
stock of the applicable Fund and the delivery to, or
the crediting to the account of, the Custodian or the
applicable Fund's transfer agent, such shares to be
purchased or redeemed;
(14) For the purpose of redeeming in kind shares of the
applicable Fund against delivery to the Bank, its
Subcustodian or the Customer's transfer agent of such
shares to be so redeemed;
(15) For delivery in accordance with the provisions of any
agreement among the Trust, the Custodian and a
broker-dealer registered under the Securities Exchange
Act of 1934 (the "Exchange Act") and a member of The
National Association of Securities Dealers, Inc.
("NASD"), relating to compliance with the rules of The
Options Clearing Corporation and of any registered
national securities exchange, or of any similar
organization or organizations, regarding escrow or
other arrangements in connection with transactions by
the Trust. The Custodian will act only in accordance
with Instructions in the delivery of Securities to be
held in escrow and will have no responsibility or
liability for any such Securities which are not
returned promptly when due other than to make proper
requests for such return;
(16) For spot or forward foreign exchange transactions to
facilitate security trading, receipt of income from
Securities or related transactions;
(17) Upon the termination of this Agreement; and
(18) For other proper purposes as may be specified in
Instructions issued by an officer of the Trust which
shall include a statement of the purpose for which the
delivery or payment is to be made, the amount of the
payment or specific Securities to be delivered, the
name of the person or persons to whom delivery or
payment is to be made, and a Certificate stating that
the purpose is a proper purpose under the instruments
governing the Trust.
(c) Actions Which May be Taken Without Instructions. Unless an
Instruction to the contrary is received, the Custodian shall:
(1) Collect all income due or payable, provided that the
Custodian shall not be responsible for the failure to
receive payment of (or late payment of) distributions
or other payments with respect to Securities or other
property held in the account;
(2) Present for payment and collect the amount payable
upon all Securities which may mature or be called,
redeemed, retired or otherwise become payable.
Notwithstanding the foregoing, the Custodian shall
have no responsibility to the Funds for monitoring or
ascertaining any call, redemption or retirement dates
with respect to put bonds or similar instruments where
such dates are not published in sources routinely used
by the Custodian which are owned by the Funds and held
by the Custodian or its nominees. Nor shall the
Custodian have any responsibility or liability to the
Funds for any loss by the Funds for any missed
payments or other defaults resulting therefrom, unless
the Custodian received timely notification from the
Funds specifying the time, place and manner for the
presentment of any such put bond owned by the Funds
and held by the Custodian or its nominee. The
Custodian shall not be responsible and assumes no
liability for the accuracy or completeness of any
notification the Custodian may furnish to the Funds
with respect to put bonds or similar instruments;
(3) Surrender Securities in temporary form for definitive
Securities;
(4) Hold directly, or through a Securities Depository with
respect to Securities therein deposited, for the
account of the applicable Fund all rights and similar
Securities issued with respect to any Securities held
by the Custodian hereunder for that Fund;
(5) Submit or cause to be submitted to the applicable Fund
or its investment advisor as designated by the
applicable Fund information actually received by the
Custodian regarding ownership rights pertaining to
property held for the applicable Fund;
(6) Deliver or cause to be delivered any Securities held
for the applicable Fund in exchange for other
Securities or cash issued or paid in connection with
the liquidation, reorganization, refinancing, merger,
consolidation or recapitalization of any corporation,
or the exercise of any conversion privilege;
(7) Deliver or cause to be delivered any Securities held
for the applicable Fund to any protective committee,
reorganization committee or other person in connection
with the reorganization, refinancing, merger,
consolidation or recapitalization or sale of assets of
any corporation, and receive and hold under the terms
of this Agreement such certificates of deposit,
interim receipts or other instruments or documents as
may be issued to it to evidence such delivery;
(8) Make or cause to be made such transfers or exchanges
of the assets specifically allocated to the applicable
Fund and take such other steps as shall be stated in
Instructions to be for the purpose of effectuating any
duly authorized plan of liquidation, reorganization,
merger, consolidation or recapitalization of the Fund;
(9) Deliver Securities upon the receipt of payment in
connection with any repurchase agreement related to
such Securities entered into by the applicable Fund;
(10) Deliver Securities owned by the applicable Fund to the
issuer thereof or its agent when such Securities are
called, redeemed, retired or otherwise become payable;
provided, however, that in any such case the cash or
other consideration is to be delivered to the
Custodian. Notwithstanding the foregoing, the
Custodian shall have no responsibility to the Fund for
monitoring or ascertaining any call, redemption or
retirement dates with respect to the put bonds or
similar instruments where such dates are not published
in sources routinely used by the Custodian which are
owned by the Fund and held by the Custodian or its
nominee. Nor shall the Custodian have any
responsibility or liability to the Fund for any loss
by the Fund for any missed payment or other default
resulting therefrom unless the Custodian received
timely notification from the Fund specifying the time,
place and manner for the presentment of any such put
bond owned by the Fund and held by the Custodian or
its nominee. The Custodian shall not be responsible
and assumes no liability to the Fund for the accuracy
or completeness of any notification the Custodian may
furnish to the Fund with respect to put bonds or
similar investments;
(11) Endorse and collect all checks, drafts or other orders
for the payment of money received by the Custodian for
the account of the applicable Fund; and
(12) Execute any and all documents, agreements or other
instruments as may be necessary or desirable for the
accomplishment of the purposes of this Agreement.
(d) Confirmation and Statements. Promptly after the close of
business on each day, the Custodian shall furnish each
Fund with confirmations and a summary of all transfers to or
from the account of the Fund during the day. Where securities
purchased by a Fund are in a fungible bulk of securities
registered in the name of the Custodian (or its nominee) or
shown on the Custodian's account on the books of a Securities
Depository, the Custodian shall by book-entry or otherwise
identify the quantity of those securities belonging to that
Fund. At least monthly, the Custodian shall furnish each Fund
with a detailed statement of the Securities and monies held
for the Fund under this Custody Agreement.
(e) Registration of Securities. The Custodian is authorized to
hold all Securities, Assets, or other property of each Fund in
nominee name, in bearer form or in book-entry form. The
Custodian may register any Securities, Assets or other
property of each Fund in the name of the Trust or the Fund,
in the name of the Custodian, any domestic subcustodian,
or Foreign Custodian, in the name of any duly appointed
registered nominee of such entity, or in the name of a
Securities Depository or its successor or successors,
or its nominee or nominees. The Trust agrees to furnish to
the Custodian appropriate instruments to enable the Custodian
to hold or deliver in proper form for transfer, or to register
in the name of its registered nominee or in the name of a
Securities Depository, any Securities which it may hold for
the account of the applicable Fund and which may from time to
time be registered in the name of the Trust or the applicable
Fund.
(f) Segregated Accounts. Upon receipt of Instruction, the
Custodian will, from time to time establish segregated
accounts on behalf of the applicable Fund to hold and deal
with specified assets as shall be directed.
3. Settlement of Funds Transactions.
(a) Customary Practices. Settlement of transactions may be effected
in accordance with trading and processing practices customary in
the jurisdiction or market where the transaction occurs. The
Trust acknowledges that this may, in certain circumstances,
require the delivery of cash or Securities (or other property)
without the concurrent receipt of Securities (or other property)
or cash. In such circumstances, the Custodian shall have no
responsibility for nonreceipt of payments (or late payment) or
nondelivery of Securities or other property (or late delivery)
by the counterparty.
(b) Contractual Income. Unless the parties agree to the contrary,
the Custodian shall credit the applicable Fund in accordance
with the Custodian's standard operating procedure, with income
and maturity proceeds on securities on contractual payment date
net of any taxes or upon actual receipt. To the extent the
Custodian credits income on contractual payment date, the
Custodian may reverse such accounting entries with back value to
the contractual payment date if the Custodian reasonably
believes that such amount will not be received.
(c) Contractual Settlement. Unless the parties agree to the
contrary, the Custodian will attend to the settlement of
securities transactions in accordance with the Custodian's
standard operating procedure, on the basis of either contractual
settlement date accounting or actual settlement date accounting.
To the extent the Custodian settles certain securities
transactions on the basis of contractual settlement date
accounting, the Custodian may reverse with back value to the
contractual settlement date any entry relating to such
contractual settlement if the Custodian reasonably believes that
such amount will not be received.
4. Lending of Securities. The Custodian may lend the assets of the Funds
in accordance with the terms and conditions of a separate securities
lending agreement, approved by the Trust.
5. Persons Having Access to Assets of the Funds.
(a) No trustee or agent of the Trust, and no officer,
director, employee or agent of the Trust's investment adviser,
of any sub-investment adviser of the Trust, or of the Trust's
administrator, shall have physical access to the assets of the
Funds held by the Custodian or be authorized or permitted to
withdraw any investments of the Funds, nor shall the Custodian
deliver any assets of the Funds to any such person. No
officer, director, employee or agent of the Custodian who
holds any similar position with the Trust's investment
adviser, with any sub-investment adviser of the Trust or with
the Trust's administrator shall have access to the assets of
the Funds.
(b) Nothing in this Section 5 shall prohibit any duly authorized
officer, employee or agent of the Trust, or any duly
authorized officer, director, employee or agent of the
investment adviser, of any sub-investment adviser of the Fund
or of the Funds' administrator, from giving Instructions to
the Custodian or executing a Certificate so long as it does
not result in delivery of or access to assets of the Funds
prohibited by paragraph (a) of this Section 5.
6. Standard of Care; Scope of Custodial Responsibilities.
(a) Standard of Care. Custodian shall be required to exercise
reasonable care with respect to its duties under this
Agreement unless otherwise provided.
(1) Notwithstanding any other provision of this Custody
Agreement, the Custodian shall not be liable for any
loss or damage, including counsel fees, resulting from
its action or omission to act or otherwise, except for
any such loss or damage arising out of the negligence
or willful misconduct of the Custodian.
(2) The Custodian may, with respect to questions of law,
apply for and obtain the advice and opinion of counsel
to the Trust or of its own counsel, at the expense of
the Trust, and shall be fully protected with respect to
anything done or omitted by it in good faith in
conformity with such advice or opinion.
(b) Scope of Duties. Without limiting the generality of the
foregoing, the Custodian shall be under no duty or obligation
to inquire into, and shall not be liable for:
(1) The acts or omissions of any agent appointed pursuant
to Instructions of the Trust or its investment
advisor including, but not limited to, any
broker-dealer or other entity to hold any Securities
or other property of the Trust as collateral or
otherwise pursuant to any investment strategy.
(2) The validity of the issue of any Securities
purchased by the Funds, the legality of the
purchase thereof, or the propriety of the amount
paid therefor;
(3) The legality of the sale of any Securities by the
Funds or the propriety of the amount for which the
same are sold;
(4) The legality of the issue or sale of any Shares, or
the sufficiency of the amount to be received
therefor;
(5) The legality of the redemption of any Shares, or the
propriety of the amount to be paid therefor;
(6) The legality of the declaration or payment of any
distribution of the Funds;
(7) The legality of any borrowing for temporary
administrative or emergency purposes.
(c) No Liability Until Receipt. The Custodian shall not be liable
for, or considered to be the Custodian of, any money, whether
or not represented by any check, draft, or other instrument
for the payment of money, received by it on behalf of the
Funds until the Custodian actually receives and collects such
money.
(d) Amounts Due from Transfer Agent. The Custodian shall not be
required to effect collection of any amount due to the Funds
from the Transfer Agent nor be required to cause payment or
distribution by the Transfer Agent of any amount paid by the
Custodian to the Transfer Agent.
(e) Collection Where Payment Refused. The Custodian shall not be
required to take action to effect collection of any amount, if
the Securities upon which such amount is payable are in
default, or if payment is refused after due demand or
presentation, unless and until it shall be directed to take
such action and it shall be assured to its satisfaction of
reimbursement of its related costs and expenses.
(f) No Duty to Ascertain Authority. The Custodian shall not be
under any duty or obligation to ascertain whether any
Securities at any time delivered to or held by it for the
Funds are such as may properly be held by the Funds under the
provisions of its governing instruments or Prospectus.
(g) Reliance on Instructions. The Custodian shall be entitled to
rely upon any Instruction, notice or other instrument in
writing received by the Custodian and reasonably believed by
the Custodian to be genuine and to be signed by an officer or
Authorized Person of the Funds. Where the Custodian is issued
Instructions orally, the Funds acknowledge that if written
confirmation is requested, the validity of the transactions or
enforceability of the transactions authorized by the Funds
shall not be affected if such confirmation is not received or
is contrary to oral Instructions given. The Custodian shall
be under no duty to question any direction of an Authorized
Person to review any property held in the account, to make any
suggestions with respect to the investment of the assets in
the account, or to evaluate or question the performance of any
Authorized Person. The Custodian shall not be responsible or
liable for any diminution of value of any securities or other
property held by the Custodian.
7. Appointment of Subcustodians. The Custodian is hereby authorized to appoint
one or more domestic subcustodians (which may be an affiliate of the Custodian)
to hold Securities and monies at any time owned by the Funds. The Custodian is
also hereby authorized when acting pursuant to Instructions to: 1) place assets
with any Foreign Custodian located in a jurisdiction which is not a Selected
Country and with Euroclear, Clearstream, Banc One or any other transnational
depository; and 2) place assets with a broker or other agent as subcustodian in
connection with futures, options, short selling or other transactions. When
acting pursuant to such Instructions, the Custodian shall not be liable for the
acts or omissions of any subcustodian so appointed.
8. Overdraft Facility and Security for Payment. In the event that the Custodian
receives Instructions to make payments or transfers of monies on behalf of the
Funds for which there would be, at the close of business on the date of such
payment or transfer, insufficient monies held by the Custodian on behalf of the
Funds, the Custodian may, in its sole discretion, provide an overdraft (an
"Overdraft") to the Funds in an amount sufficient to allow the completion of
such payment or transfer. Any Overdraft provided hereunder: (a) shall be payable
on the next Business Day, unless otherwise agreed by the Funds and the
Custodian; and (b) shall accrue interest from the date of the Overdraft to the
date of payment in full by the Funds at a rate agreed upon from time to time, by
the Custodian and the Funds or, in the absence of specific agreement, by such
rate as charged to other customers of Custodian under procedures uniformly
applied. The Custodian and the Funds acknowledge that the purpose of such
Overdraft is to temporarily finance the purchase of Securities for prompt
delivery in accordance with the terms hereof, to meet unanticipated or unusual
redemptions, to allow the settlement of foreign exchange contracts or to meet
other unanticipated Funds expenses. The Custodian shall promptly notify the
Funds (an "Overdraft Notice") of any Overdraft. To secure payment of any
Overdraft, the Funds hereby grant to the Custodian a continuing security
interest in and right of setoff against the Securities and cash in the Fund's
account from time to time in the full amount of such Overdraft. Should the Funds
fail to pay promptly any amounts owed hereunder, the Custodian shall be entitled
to use available cash in the Fund's account and to liquidate Securities in the
account as necessary to meet the Fund's obligations under the Overdraft. In any
such case, and without limiting the foregoing, the Custodian shall be entitled
to take such other actions(s) or exercise such other options, powers and rights
as the Custodian now or hereafter has as a secured creditor under the
Massachusetts Uniform Commercial Code or any other applicable law.
9. Tax Obligations. To the extent an Authorized Person has provided necessary
information to the Custodian, the Custodian shall use reasonable efforts to
assist the Trust with respect to the Trust's tax obligations, including the
payment of taxes, withholding requirements, certification and reporting
requirements, and claims for exemptions or refunds, interest, penalties and
other related expenses of the Trust. The Trust shall notify the Custodian in
writing of any such tax obligations. The Custodian shall have no responsibility
or liability for any tax obligations now or hereafter imposed on the Trust by
any taxing authorities, domestic or foreign.
To the extent the Custodian may be responsible under any applicable law for any
tax obligation, the Trust shall direct the Custodian with respect to the
performance of such obligations, and shall provide the Custodian with the
necessary funds and all information required by the Custodian to meet such
obligations. All such tax obligations shall be paid from the Trust unless paid
by the Company.
In making payments to service providers pursuant to Instructions, the Trust
acknowledges that the Custodian is acting as a paying agent and not as the
payor, for tax information reporting and withholding purposes.
ARTICLE II
FOREIGN CUSTODY MANAGER SERVICES
1.Delegation. The Board delegates to, and the Custodian hereby agrees to accept
responsibility as the Trust's Foreign Custody Manager for selecting, contracting
with and monitoring Foreign Custodians in Selected Countries set forth in
Appendix C in accordance with Rule 17f-5(c).
2.Changes to Appendix C. Appendix C may be amended by written agreement from
time to time to add or delete jurisdictions by written agreement signed by an
Authorized Person of the Trust and the Custodian, but the Custodian reserves the
right to delete jurisdictions upon reasonable notice to the Fund.
3. Reports to Board. Custodian shall provide written reports notifying Board of
the placement of Assets with a particular Foreign Custodian and of any material
change in a Fund's foreign custody arrangements. Such reports shall be provided
to the Board quarterly, except as otherwise agreed by the Custodian and the
Trust.
4. Monitoring System. In each case in which the Custodian has exercised
delegated authority to place Assets with a Foreign Custodian, the Custodian
shall establish a system, to re-assess or re-evaluate selected Foreign
Custodians, at least annually in accordance with Rule 17f-5(c)(3).
5. Standard of Care. In exercising the delegated authority under this Article of
the Agreement, the Custodian agrees to exercise reasonable care, prudence and
diligence such as a person having responsibility for the safekeeping of the
Assets would exercise in like circumstances. Contracts with Foreign Custodians
shall provide for reasonable care for Assets based on the standards applicable
to Foreign Custodians in the Selected Country. In making this determination, the
Custodian shall consider the provisions of Rule 17f-5(c)(2).
6. Use of Securities Depositories. In exercising its delegated authority,
Custodian may assume that the Fund and its investment adviser have determined,
pursuant to Rule 17f-7, that the depository provides reasonable safeguards
against custody risks, if a Fund decides to place and maintain foreign assets
with any Securities Depository as to which the Custodian has provided the Trust
on behalf of such Fund with a Risk Analysis.
ARTICLE III
Information Services
1. Risk Analysis. The Custodian will provide the Trust on behalf of the Funds
with a Risk Analysis with respect to Securities Depositories operating in the
countries listed in Appendix C. If the Custodian is unable to provide a Risk
Analysis with respect to a particular Securities Depository, it will notify the
Trust on behalf of the Funds. If a new Securities Depository commences operation
in one of the Appendix C countries, the Custodian will provide the Trust on
behalf of the Funds with a Risk Analysis in a reasonably practicable time after
such Securities Depository becomes operational. If a new country is added to
Appendix C, the Custodian will provide the Trust on behalf of the Funds with a
Risk Analysis with respect to each Securities Depository in that country within
a reasonably practicable time after the addition of the country to Appendix C.
2. Monitoring of Securities Depositories. The Custodian will monitor the custody
risks associated with maintaining assets with each Securities Depository for
which it has provided the Trust on behalf of the Funds with a Risk Analysis as
required under Rule 17f-7. The Custodian will promptly notify the Trust on
behalf of the Funds or its investment adviser of any material change in these
risks.
3. Use of Agents. The Custodian may employ agents, including, but not limited
to Foreign Custodians, to perform its responsibilities under Sections 1 and 2
above.
4. Exercise of Reasonable Care. The Custodian will exercise reasonable care,
prudence, and diligence in performing its responsibilities under this Article
III. With respect to the Risk Analyses provided or monitoring performed by an
agent, the Custodian will exercise reasonable care in the selection of such
agent, and shall be entitled to rely upon information provided by agents so
selected in the performance of its duties and responsibilities under this
Article III.
5. Liabilities and Warranties. While the Custodian will take reasonable
precautions to ensure that information provided is accurate, the Custodian shall
have no liability with respect to information provided to it by third parties.
Due to the nature and source of information, and the necessity of relying on
various information sources, most of which are external to the Custodian, the
Custodian shall have no liability for direct or indirect use of such
information.
ARTICLE IV
GENERAL PROVISIONS
1. Compensation.
(a) The Trust will compensate the Custodian for its services
rendered under this Agreement in accordance with the fees set
forth in a separate Fee Schedule which schedule may be
modified by the Custodian upon not less than sixty days prior
written notice to the Trust.
(b) The Custodian will xxxx the Trust as soon as practicable after
the end of each calendar month. The Trust will promptly pay to
the Custodian the amount of such billing.
(c) If not paid directly or timely by the Trust, the Custodian
may charge against assets held on behalf of the Funds
compensation and any expenses incurred by the Custodian in
the performance of its duties pursuant to this Agreement.
The Custodian shall also be entitled to charge against
assets of the Funds the amount of any loss, damage,
liability or expense incurred with respect to the Funds,
including counsel fees, for which it shall be entitled to
reimbursement under the provisions of this Agreement.
The expenses which the Custodian may charge include,
but are not limited to, the expenses of domestic subcustodians
and Foreign Custodians incurred in settling transactions.
2. Insolvency of Foreign Custodians. The Custodian shall be responsible for
losses or damages suffered by the Funds arising as a result of the insolvency of
a Foreign Custodian only to the extent that the Custodian failed to comply with
the standard of care set forth in Article II with respect to the selection and
monitoring of such Foreign Custodian.
3. Liability for Depositories. The Custodian shall not be responsible for any
losses resulting from the deposit or maintenance of Securities, Assets or other
property of the Funds with a Securities Depository.
4. Damages. Under no circumstances shall the Custodian be liable for any
indirect, consequential or special damages with respect to its role as Foreign
Custody Manager, Custodian or information vendor.
5. Indemnification; Liability of the Funds.
(a) The Trust shall indemnify and hold the Custodian harmless from
all liability and expense, including reasonable counsel fees and
expenses, arising out of the performance of the Custodian's
obligations under this Agreement except as a result of the
Custodian's negligence or willful misconduct.
(b) The Funds and the Custodian agree that the obligations of the
Trust under this Agreement shall not be binding upon any of the
Trustees, shareholders, nominees, officers, employees or agents,
whether past, present or future, of the Funds, individually, but
are binding only upon the assets and property of the Trust.
6. Force Majeure. Notwithstanding anything in this Agreement to the contrary,
the Custodian shall not be liable for any losses resulting from or caused by
events or circumstances beyond its reasonable control, including, but not
limited to, losses resulting from nationalization, strikes, expropriation,
devaluation, revaluation, confiscation, seizure, cancellation, destruction or
similar action by any governmental authority, de facto or de jure; or enactment,
promulgation, imposition or enforcement by any such governmental authority of
currency restrictions, exchange controls, taxes, levies or other charges
affecting the Fund's property; or the breakdown, failure or malfunction of any
utilities or telecommunications systems; or any order or regulation of any
banking or securities industry including changes in market rules and market
conditions affecting the execution or settlement of transactions; or acts of
war, terrorism, insurrection or revolution; or any other similar event.
7. Termination.
(a) Either party may terminate this Agreement by giving the other
party sixty (60) days notice in writing, specifying the date
of such termination. In the event notice is given by the
Trust, it shall be accompanied by a Certificate evidencing the
vote of the Trust's Board to terminate this Agreement and
designating a successor.
(b) In the event notice of termination is given by the Custodian,
the Trust shall, on or before the termination date, deliver to
the Custodian a Certificate evidencing the vote of the Board
designating a successor custodian. In the absence of such
designation, the Custodian may designate a successor
custodian, which shall be a person qualified to so act under
the Act or the Fund. If the Trust fails to designate a
successor custodian, the Trust shall, upon the date
specified in the notice of termination, and upon the delivery
by the Custodian of all Securities and monies then owned by
the Funds, be deemed to be its own custodian and the
Custodian shall thereby be relieved of all duties and or the
Fund responsibilities under this Agreement other than the
duty with respect to Securities held in the Book-Entry System
which cannot be delivered to the Funds.
(c) Upon termination of the Agreement, the Custodian shall, upon
receipt of a notice of acceptance by the successor custodian,
deliver to the successor all Securities and monies then held
by the Custodian on behalf of the Funds, after deducting all
fees, expenses and other amounts owed.
(d) In the event of a dispute following the termination of this
Agreement, all relevant provisions shall be deemed to continue
to apply to the obligations and liabilities of the parties.
8. Inspection of Books and Records. The books and records of the Custodian shall
be open to inspection and audit at reasonable times by officers and auditors
employed by the Trust at its own expense and with prior written notice to the
Custodian, and by the appropriate employees of the Securities and Exchange
Commission.
9. Miscellaneous.
(a) Appendix A is a Certificate signed by the Secretary of the
Trust setting forth the names and the signatures of Authorized
Persons. The Trust shall furnish a new Certificate when the
list of Authorized Persons is changed in any way. Until a new
certification is received, the Custodian shall be fully
protected in acting upon Instructions from Authorized Persons
as set forth in the last delivered Certificate.
(b) Appendix B is a Certificate signed by the Secretary of the
Trust setting forth the names and the signatures of the
present officers of the Trust. The Trust agrees to furnish to
the Custodian a new Certificate when any changes are made.
Until a new Certificate is received, the Custodian shall be
fully protected in relying upon the last delivered
Certificate.
(c) Any required written notice or other instrument shall be
sufficiently given if addressed to the Custodian or the Trust
as the case may be and delivered to it at its offices at:
The Custodian:
Boston Safe Deposit and Trust Company
000 Xxxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
Attn: Xxxxx Xxxxxxxxx
The Trust:
JNL Series Trust
JNL Investors Series Trust
000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxx
or at such other place as the parties may from time to time
designate to the other in writing.
(d) This Agreement may not be amended or modified except by a
written agreement executed by both parties.
(e) 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 not be assignable by the Trust without the written
consent of the Custodian, or by the Custodian without the
written consent of the Trust authorized or approved by
a vote of the Board, provided, however, that the Custodian
may assign the Agreement or any function thereof to any
corporation or entity which directly or indirectly is
controlled by, or is under common control with, the Custodian
and any other attempted assignment without written consent
shall be null and void.
(f) Nothing in this Agreement shall give or be construed to give
or confer upon any third party any rights hereunder.
(g) The Custodian represents that it is a U.S. Bank within the
meaning of paragraph (a)(7) of Rule 17f-5.
(h) The Trust acknowledges and agrees that, except as expressly
set forth in this Agreement, the Trust is solely responsible
to assure that the maintenance of the Funds' Securities and
cash hereunder complies with applicable laws and regulations,
including without limitation the Act and the rules and
regulations promulgated thereunder and applicable
interpretations thereof or exemptions therefrom. The Trust
represents that it has determined that it is reasonable to
rely on Custodian to perform the responsibilities delegated
pursuant to this Agreement.
(i) This Agreement shall be construed in accordance with the laws
of The Commonwealth of Massachusetts.
(j) The captions of the Agreement are included for convenience of
reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or
effect.
(k) Each party represents to the other that it has all necessary
power and authority, and has obtained any consent or approval
necessary to permit it, to enter into and perform this
Agreement and that this Agreement does not violate, give rise
to a default or right of termination under or otherwise
conflict with any applicable law, regulation, ruling, decree
or other governmental authorization or any contract to which
it is a party or by which any of its assets is bound.
(l) 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.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective representatives duly authorized as of the day and year first
above written.
JNL SERIES TRUST
JNL INVESTORS SERIES TRUST
By:
-----------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: President
BOSTON SAFE DEPOSIT AND TRUST COMPANY
By:
-----------------------------------
Name:
Title:
APPENDIX A
LIST OF AUTHORIZED PERSONS
I, Xxxxxx X. Xxxxx, the Secretary of the JNL Series Trust and the JNL
Investors Series Trust, a business trust organized under the laws of the
Commonwealth of Massachusetts (each individually, the "Trust"), do hereby
certify that:
The following individuals have been duly authorized as Authorized
Persons to give Instructions on behalf of the Trust and each Fund thereof and
the specimen signatures set forth opposite their respective names are their true
and correct signatures:
Name Signature
Xxxxxx X. Xxxxxxx
--------------------------------------------
Xxxxxx X. Xxxxx
--------------------------------------------
Xxxxxx X. Xxxxxx
--------------------------------------------
Xxxx X. Xxxxx
--------------------------------------------
Xxxxx X. Xxxx
--------------------------------------------
Xxxxxxx X. Xxxxx
--------------------------------------------
Xxxxx Xxxxx
--------------------------------------------
JNL SERIES TRUST
JNL INVESTORS SERIES TRUST
By:
--------------------------------------------
Secretary
APPENDIX B
TRUST OFFICERS
I, Xxxxxx X. Xxxxx, the Secretary of the JNL Series Trust and the JNL
Investors Series Trust, a business trust organized under the laws of the
Commonwealth of Massachusetts (each individually, the "Trust"), do hereby
certify that:
The following individuals serve in the following positions with the Fund
and each individual has been duly elected or appointed to each such position and
qualified therefor in conformity with the Trust's governing instrument and the
specimen signatures set forth opposite their respective names are their true and
correct signatures:
Name Position Signature
Xxxxxx X. Xxxxxxx Chairman of the Board
and President ---------------------------
Xxxxxx X. Xxxxxx Vice President, Treasurer
and Chief Financial Officer ---------------------------
Xxxxxx X. Xxxxx Vice President, Secretary
and Counsel ---------------------------
Xxxx X. Xxxxx Vice President and
Assistant Treasurer ---------------------------
Xxxxx X. Xxxx Assistant Secretary
---------------------------
JNL SERIES TRUST
JNL INVESTORS SERIES TRUST
By:
---------------------------------
Secretary
Dated:
APPENDIX C
Selected Countries
Argentina
Australia
Austria
Bangladesh
Belgium
Bermuda
Bolivia
Botswana
Brazil
Canada
Chile
China/Shenzhen China/Shanghai
Colombia
Croatia
Czech Republic
Denmark
Ecuador
Egypt
Finland
France
Germany
Ghana
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Jordan
Kenya
Korea
Republic of Luxembourg
Malaysia
Mauritius
Mexico
Morocco
Namibia
The Netherlands
New Zealand
Norway
Pakistan
Panama
Peru
The Philippines
Poland
Portugal
Romania
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Taiwan
Thailand
Turkey
United Kingdom
Uruguay
Venezuela
Zambia
Zimbabwe
APPENDIX D
ANCILLARY INFORMATION SERVICES AGREEMENT
Until Custodian provides a Risk Analysis pursuant to Article III of the
Agreement with respect to a Securities Depository operating in a particular
country as set forth on Appendix C, the following sets forth our agreement with
respect to the delivery of certain information to the Board or its agents as
requested by the Board from time to time. These terms shall control over the
provisions of Article III of this Agreement but shall cease to apply as to any
country for which Custodian provides a Risk Analysis for one or more Securities
Depositories operating therein. Otherwise, unless continued as provided below,
these provisions shall expire on July 2, 2001.
After expiration, the information set forth in Sections 2, A and B
below may be provided as agreed upon from time to time in writing between the
Trust and the Custodian subject to Section 3 hereof.
1. Provision of Information. In accordance with the provisions of this
Information Services Agreement, the Custodian agrees to provide to the Board, or
at the direction of the Board, the Trust's investment advisors, the information
set forth in Section 2, below, with respect to Foreign Custodians and Securities
Depositories which hold Securities, Assets, or other property of the Funds and
the systems and environment for securities processing in the jurisdiction in
which such Foreign Custodians or Securities Depositories are located. The
Custodian shall provide only that portion of such information as is reasonably
available to it.
2. Information to be Provided.
A. Country Information
o Settlement Environment
o Depository
o Settlement Period
o Trading
o Security Registration
o Currency
o Foreign Investment Restrictions
o Entitlements
o Proxy Voting
o Foreign Taxation
B. Subcustodian Information
o Financial Information
o Regulator
o External Auditor
o How Securities are Held
o Operational Capabilities
o Insurance Coverage
C. Depository Information (if applicable to the Country)
o Name
o Information relative to Determining Compulsory or Voluntary Status
of the Facility
o Type of Entity
o Ownership Structure
o Operating History
o Eligible Instruments
o Security Form
o Financial Data
o Regulator
o External Auditor
D. Information on the Following Legal Questions
o Would the applicable foreign law restrict the access afforded the
independent public accountants of the Funds to books and records
kept by a Foreign Custodian?
o Would the applicable foreign law restrict the ability of the Funds
to recover its assets in the event of bankruptcy of the Foreign
Custodian?
o Would the applicable foreign law restrict the ability of the Funds to
recover assets that are lost while under the control of the Foreign
Custodian?
o What are the foreseeable difficulties in converting the Fund's cash
into U.S. dollars?
3. Liability and Warranties. While the Custodian will take reasonable
precautions to ensure that information provided is accurate the Custodian shall
have no liability with respect to information provided to it by third parties.
Due to the nature and source of information, and the necessity of relying on
various information sources, most of which are external to the Custodian,
the Custodian shall have no liability for direct or indirect use of such
information. The Custodian makes no other warranty or representation, either
express or implied, as to the merchantability or fitness for any particular
purpose of the information provided under this Appendix D
Acknowledged:
---------------------------- ---------------------------
JNL Series Trust Boston Safe Deposit and Trust Company
JNL Investors Series Trust
APPENDIX E
LIST OF SERIES
JNL SERIES TRUST JNL INVESTORS SERIES TRUST
Funds: Funds:
------ ------
JNL/X.X. Xxxxxx Enhanced S&P 500 JNL Money Market Fund
Stock Index Series
JNL/Janus Aggressive Growth Series
JNL/Janus Capital Growth Series
JNL/Janus Global Equities Series
JNL/Xxxxx Growth Series
JNL/Eagle Core Equity Series
JNL/Eagle SmallCap Equity Series
JNL/Xxxxxx Growth Series
JNL/Xxxxxx Value Equity Series
PPM America/JNL Balanced Series
PPM America/JNL High Yield Series
PPM America/JNL Money Market Series
Salomon Brothers/JNL Balanced Series
Salomon Brothers/JNL High Yield Bond Series
Salomon Brothers/JNL Global Bond Series
Salomon Brothers/JNL U.S. Government & Quality Bond Series
T Xxxx Price/JNL Established Growth Series
JNL/Xxxxxx International Equity Series
T Xxxx Price/JNL Mid-Cap Growth Series
JNL/Alliance Growth Series
JNL/X.X. Xxxxxx International & Emerging Market Series
JNL/PIMCO Total Return Bond Series
JNL/Janus Growth & Income Series
Lazard/JNL Small Cap Value Series
Lazard/JNL Mid Cap Value Series
JNL/Xxxxxx Xxxxxx Growth Series
X.Xxxx Price/JNL Value Series
JNL/Janus Balanced Series
JNL/Xxxxxxxxxxx Global Growth Series
JNL/Xxxxxxxxxxx Growth Series
