AMENDMENT TO THE
CUSTODIAN CONTRACT
AGREEMENT made this 27th day of October, 1988 by and between STATE
STREET BANK AND TRUST COMPANY ("Custodian") and FPA NEW INCOME, INC. (the
"Fund").
WITNESSETH THAT:
WHEREAS, the Custodian and the Fund are parties to a Custodian Contract
dated August 20, 1984 (as amended to date, the "Contract") which governs the
terms and conditions under which the Custodian maintains custody of the
securities and other assets of the Fund:
NOW THEREFORE, the Custodian and the Fund hereby amend the terms of the
Custodian Contract and mutually agree to the following:
Insert as the final paragraph under RESPONSIBILITY OF CUSTODIAN:
If the Fund requires the Custodian to advance cash or securities
for any purpose or in the event that the Custodian or its nominee
shall incur or be assessed any taxes, charges, expenses,
assessments, claims or liabilities in connection with the
performance of this Contract, except such as may arise from its
or its nominee's own negligent action, negligent failure to act
of willful misconduct, any property at any time held for the
account of the Fund shall be security therefor and should the
Fund fail to repay the Custodian promptly, the Custodian shall be
entitled to utilize available cash to the extent necessary to
obtain reimbursement, and if insufficient sell other Fund assets,
PROVIDED THAT Custodian shall, with respect to Fund assets as to
which Custodian has perfected its lien and which Custodian
proposes to dispose of pursuant to the foregoing right, give the
Fund notice identifying such assets and the Fund shall have three
business days from receipt of such notice to notify the Custodian
if the Fund wishes the Custodian to dispose of Fund assets of
equal value other than those identified in such notice; in the
absence of any contrary notification from the Fund, Custodian
shall be free to dispose of the Fund assets initially identified
to the extent necessary to realize the amounts to which it is
entitled hereunder.
Replace subsection 7. of Section II.B. DELIVERY OF SECURITIES with the
following new subsection 7.:
7. Upon the sale of such securities for the account of the
Fund, to the broker or its clearing agent, against a receipt for
examination in accordance with "street delivery" custom; provided
that in any such case, the Custodian shall have no responsibility
or liability for any loss arising from the delivery of such
securities prior to receiving payment for such securities except
as may arise from the Custodian's own negligence or willful
misconduct;
IN WITNESS WHEREOF, each of the parties has caused this Amendment to be
executed in its name and on its behalf by a duly authorized officer as of the
day and year first above written.
ATTEST FPA NEW INCOME, INC.
/s/ Xxxxxx Xxxxxx By /s/ Xxxxx X. xx Xxxx, Xx.
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Secretary Treasurer
ATTEST STATE STREET BANK AND TRUST COMPANY
/s/ X. XxXxxxx By /s/ X. X. Xxxxxx, Xx.
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Assistant Secretary Vice President
