EXHIBIT NO. EX-99.H.1.C
ADDENDUM TO TRANSFER AGENCY AGREEMENT
THIS ADDENDUM, dated effective as of November 1, 2006, modifies the
Transfer Agency Agreement by and between UMB Fund Services, Inc. ("UMBFS") and
UMB Scout Funds (the "Fund"), such Agreement being hereinafter referred to as
the "Agreement."
WHEREAS, in its capacity as transfer agent, UMBFS assists the Fund with
the operation of its anti-money laundering program by monitoring certain
shareholder activity and implementing the Fund's customer identification program
(collectively, the "Monitoring Activities"); and
WHEREAS, in connection with the Monitoring Activities, UMBFS may
encounter shareholder activity that would require it to file a Suspicious
Activity Report ("SAR") with the Department of the Treasury's Financial Crimes
Enforcement Network ("FinCEN"); and
WHEREAS, FinCEN recently adopted a rule (the "Rule") under the Bank
Secrecy Act (the "Act") requiring mutual funds to report suspicious
transactions, effective for any transactions occurring after October 31, 2006
(the "Effective Date"); and
WHEREAS, the Fund desires to delegate to UMBFS the day-to-day
responsibility for filing SARs on its behalf based on suspicious transactions
observed during the course of UMBFS' Monitoring Activities, on and after the
Effective Date.
NOW THEREFORE, the parties agree, and the Agreement is hereby modified, as
follows:
1. The Fund hereby delegates to UMBFS the authority to report
suspicious transactions encountered during the course of UMBFS' Monitoring
Activities ("Suspicious Activity") to FinCEN, on and after the Effective Date.
For purposes of this Addendum, the term Suspicious Activity shall mean and
include any transaction which requires reporting under 31 CFR ss.103.15(a)(2).
2. When UMBFS observes any Suspicious Activity, UMBFS shall prepare a
draft of a SAR on Form SAR-SF, and shall send a copy to the Fund's AML officer
for review. UMBFS shall complete each SAR in accordance with the procedures set
forth in 31 CFR ss.103.15(a)(3), with the intent to satisfy the reporting
obligation of both UMBFS and the Fund. Accordingly, the SAR shall include the
name of both UMBFS and the Fund, and shall include the words, "joint filing" in
the narrative section.
3. The Fund's AML officer shall review the SAR and provide comments, if
any, to UMBFS within a time frame sufficient to permit UMBFS to file the SAR in
accordance with the deadline set forth in 31 CFR ss.103.15(b)(3). Upon receipt
of final approval, UMBFS shall file the SAR in accordance with the procedures
set forth in 31 CFR ss.103.15(b).
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4. UMBFS shall provide to the Fund a copy of each SAR filed, together
with supporting documentation. In addition, UMBFS shall maintain a copy of the
same for a period of five (5) years from the date of the SAR filing.
5. Nothing in this Addendum shall prevent either party from making a
determination that such party has an obligation under the Act to file a SAR
relating to any Suspicious Activity, and from making such filing independent of
the other party hereto.
6. Fees and expenses for SAR filing services to be provided by UMBFS
hereunder are already set forth in the Agreement.
7. This Addendum constitutes the written instructions of the Fund
pursuant to the terms of the Agreement. Except to the extent supplemented
hereby, the Agreement shall remain in full force and effect.
IN WITNESS HEREOF, the undersigned have executed this Addendum as of the
date and year first above written.
UMB SCOUT FUNDS
(the "Fund")
By: /S/ XXXX XXXXXXX
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Authorized Officer
UMB FUND SERVICES, INC.
("UMBFS")
By: /S/ XXXXXXX X. XXXXX
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Authorized Officer
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