CUSTODIAN AND INVESTMENT ACCOUNTING AGREEMENT
This Agreement between EACH LEGAL ENTITY LISTED ON EXHIBIT A HERETO, each a
business trust or corporation organized and existing under the laws of the
jurisdiction indicated on Exhibit A (each a "FUND"), and STATE STREET BANK and
TRUST COMPANY, a Massachusetts trust company ("STATE STREET"),
WITNESSETH:
WHEREAS, each Fund is authorized to issue shares in separate series, with
each such series representing interests in a separate portfolio of securities
and other assets; and
WHEREAS, each Fund intends that this Agreement be applicable to each of its
series existing on the date hereof (such series together with all other series
subsequently established by the Fund and made subject to this Agreement in
accordance with Section 17, be referred to herein as the "PORTFOLIO(S)");
NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:
SECTION 1. APPOINTMENT OF STATE STREET AS CUSTODIAN AND RECORDKEEPER. Each Fund
hereby appoints State Street as the custodian of the assets of the Portfolios of
the Fund, including securities which the Fund, on behalf of the applicable
Portfolio, desires to be held in places within the United States ("DOMESTIC
SECURITIES") and securities it desires to be held outside the United States
("FOREIGN SECURITIES"). The Fund, on behalf of the Portfolio(s), agrees to
deliver to State Street all securities and cash of the Portfolios, and all
payments of income, payments of principal or capital distributions received by
it with respect to all securities owned by the Portfolio(s) from time to time,
and the cash consideration received by it for such new or treasury shares of
beneficial interest of the Fund representing interests in the Portfolios
("Shares") as may be issued or sold from time to time. State Street shall not be
responsible for any property of a Portfolio held or received by the Portfolio
and not delivered to State Street.
Upon receipt of "PROPER INSTRUCTIONS" (as such term is defined in Section 6
hereof), State Street shall on behalf of the applicable Portfolio(s) from time
to time appoint one or more sub-custodians located in the United States, but
only in accordance with an applicable vote by the Board of Trustees or Directors
of the Fund (the "BOARD") on behalf of the applicable Portfolio(s). State Street
may appoint as sub-custodian for the Fund's foreign securities on behalf of the
applicable Portfolio(s) the foreign banking institutions and foreign securities
depositories designated in Schedules A and B hereto, but only in accordance with
the applicable provisions of Sections 3 and 4 of this Agreement. State Street
shall use all reasonable efforts to include in each agreement whereby State
Street appoints any such sub-custodian a provision to the effect that the
sub-custodian will be liable to State Street for losses and liabilities caused
by the negligence, misfeasance, or willful misconduct of the sub-custodian.
State Street shall have no more or less responsibility or liability to the Fund
on account of any actions or omissions of any sub-custodian so appointed than
any such sub-custodian has to State Street.
The Fund hereby constitutes and appoints State Street to perform certain
accounting and recordkeeping functions relating to portfolio transactions
required of a duly registered investment company under Section 31(a) of the
Investment Company Act of 1940, as amended (the "1940 Act") and to calculate the
net asset value of the Portfolios.
1
SECTION 2. DUTIES OF STATE STREET WITH RESPECT TO PROPERTY OF EACH FUND HELD BY
STATE STREET IN THE UNITED STATES
SECTION 2.1 HOLDING SECURITIES. State Street shall hold and physically
segregate for the account of each Portfolio all non-cash property, to be held by
it in the United States, including all domestic securities owned by such
Portfolio other than securities which are maintained pursuant to Section 2.8 in
a clearing agency registered with the SEC and which acts as a securities
depository or in a book-entry system authorized by the U.S. Department of the
Treasury (each, a "U.S. SECURITIES SYSTEM").
SECTION 2.2 DELIVERY OF SECURITIES. State Street shall release and deliver
domestic securities owned by a Portfolio held by State Street or in a U.S.
Securities System account of State Street only upon receipt of Proper
Instructions on behalf of the applicable Portfolio, which may be continuing
instructions when deemed appropriate by the parties, and only in the following
cases:
1) Upon sale of such securities for the account of the Portfolio and
receipt of payment therefor;
2) Upon the receipt of payment in connection with any repurchase
agreement related to such securities entered into by the Portfolio;
3) In the case of a sale effected through a U.S. Securities System, in
accordance with the provisions of Section 2.8 hereof;
4) To the depository agent in connection with tender or other similar
offers for securities of the Portfolio;
5) To the issuer thereof or its agent when such securities are called,
redeemed, retired or otherwise become payable; provided that, in any
such case, the cash or other consideration is to be delivered to State
Street;
6) To the issuer thereof, or its agent, for transfer into the name of the
Portfolio or into the name of any nominee or nominees of State Street
or into the name or nominee name of any agent appointed pursuant to
Section 2.7 or into the name or nominee name of any sub-custodian
appointed pursuant to Section 1; or for exchange for a different
number of bonds, certificates or other evidence representing the same
aggregate face amount or number of units; provided that, in any such
case, the new securities are to be delivered to State Street;
7) Upon the sale of such securities for the account of the Portfolio, to
the broker or its clearing agent, against a receipt, for examination
in accordance with "street delivery" custom; provided that in any such
case, State Street 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 State Street's
own negligence or willful misconduct;
8) For exchange or conversion pursuant to any corporate action, including
without limitation, any calls for redemption, tender or exchange
offers, declarations, record and payment dates and amounts of any
dividends or income, plan of merger, consolidation, recapitalization,
reorganization, readjustment, split-up of shares, changes of par
value, or conversion ("CORPORATE ACTION") of the securities of the
2
issuer of such securities, or pursuant to provisions for conversion
contained in such securities, or pursuant to any deposit agreement;
provided that, in any such case, the new securities and cash, if any,
are to be delivered to State Street;
9) In the case of warrants, rights or similar securities, the surrender
thereof in the exercise of such warrants, rights or similar securities
or the surrender of interim receipts or temporary securities for
definitive securities; provided that, in any such case, the new
securities and cash, if any, are to be delivered to State Street;
10) For delivery in connection with any loans of securities made by the
Portfolio, but only against receipt of adequate collateral as agreed
upon from time to time by State Street and the Fund on behalf of the
Portfolio, which may be in the form of cash or obligations issued by
the United States government, its agencies or instrumentalities,
except that in connection with any loans for which collateral is to be
credited to State Street's account in the book-entry system authorized
by the U.S. Department of the Treasury, State Street will not be held
liable or responsible for the delivery of securities owned by the
Portfolio prior to the receipt of such collateral except as may arise
from State Street's own negligence or willful misconduct;
11) For delivery as security in connection with any borrowing by the Fund
on behalf of the Portfolio requiring a pledge of assets by the Fund on
behalf of the Portfolio, but only against receipt of amounts borrowed;
12) For delivery in accordance with the provisions of any agreement among
the Fund on behalf of the Portfolio, State Street 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
Portfolio of the Fund;
13) For delivery in accordance with the provisions of any agreement among
the Fund on behalf of the Portfolio, State Street, and a futures
commission merchant registered under the Commodity Exchange Act,
relating to compliance with the rules of the Commodity Futures Trading
Commission ("CFTC") and/or any contract market, or any similar
organization or organizations, regarding account deposits in
connection with transactions by the Portfolio of the Fund;
14) Upon receipt of instructions from the transfer agent for the Fund (the
"TRANSFER AGENT") for delivery to such Transfer Agent or to the
holders of Shares in connection with distributions in kind, as may be
described from time to time in the currently effective prospectus and
statement of additional information of the Fund related to the
Portfolio (the "Prospectus"), in satisfaction of requests by holders
of Shares for repurchase or redemption; and
15) For any other proper corporate purpose, but only upon receipt of
Proper Instructions from the Fund on behalf of the applicable
Portfolio specifying the securities of the Portfolio to be delivered
and naming the person or persons to whom delivery of such securities
shall be made.
3
SECTION 2.3 REGISTRATION OF SECURITIES. Domestic securities held by State
Street (other than bearer securities) shall be registered in the name of a
Portfolio or in the name of any nominee of a Fund on behalf of a Portfolio or of
any nominee of State Street which nominee shall be assigned exclusively to the
Portfolio, unless the applicable Fund has authorized in writing the appointment
of a nominee to be used in common with other registered investment companies
having the same investment advisor as the Portfolio, or in the name or nominee
name of any agent appointed pursuant to Section 2.7 or in the name or nominee
name of any sub-custodian appointed pursuant to Section 1. All securities
accepted by State Street on behalf of a Portfolio under the terms of this
Agreement shall be in "street name" or other good delivery form. If, however, a
Fund directs State Street to maintain securities in "street name", State Street
shall utilize all reasonable efforts to timely collect income due the Fund on
such securities and to notify the Fund using all reasonable efforts of relevant
information regarding securities such as maturities and pendency of calls and
Corporate Actions.
SECTION 2.4 BANK ACCOUNTS. State Street shall open and maintain a separate
bank account or accounts in the United States in the name of each Portfolio of
each Fund, subject only to draft or order by State Street acting pursuant to the
terms of this Agreement, and shall hold in such account or accounts, subject to
the provisions hereof, all cash received by it from or for the account of the
Portfolio, other than cash maintained by the Portfolio in a bank account
established and used in accordance with Rule 17f-3 under the 1940 Act. Funds
held by State Street for a Portfolio may be deposited by it to its credit as
Custodian in the banking department of State Street or in such other banks or
trust companies as it may in its discretion deem necessary or desirable;
provided, however, that every such bank or trust company shall be qualified to
act as a custodian under the 1940 Act and that each such bank or trust company
and the funds to be deposited with each such bank or trust company shall on
behalf of each applicable Portfolio be approved by vote of a majority of the
Board. Such funds shall be deposited by State Street in its capacity as
Custodian and shall be withdrawable by State Street only in that capacity.
SECTION 2.5 COLLECTION OF INCOME. Subject to the provisions of Xxxxxxx 0.0,
Xxxxx Xxxxxx shall collect on a timely basis all income and other payments with
respect to registered domestic securities held hereunder to which each Portfolio
shall be entitled either by law or pursuant to custom in the securities
business, and shall collect on a timely basis all income and other payments with
respect to bearer domestic securities if, on the date of payment by the issuer,
such securities are held by State Street or its agent thereof and shall credit
such income, as collected, to such Portfolio's custodian account. Without
limiting the generality of the foregoing, State Street shall detach and present
for payment all coupons and other income items requiring presentation as and
when they become due and shall collect interest when due on securities held
hereunder. Income due each Portfolio on securities loaned pursuant to the
provisions of Section 2.2 (10) shall be the responsibility of the Fund. State
Street will have no duty or responsibility in connection therewith, other than
to provide the Fund with such information or data as may be necessary to assist
the Fund in arranging for the timely delivery to State Street of the income to
which the Portfolio is properly entitled.
SECTION 2.6 PAYMENT OF FUND MONIES. Upon receipt of Proper Instructions on
behalf of the applicable Portfolio, which may be continuing instructions when
deemed appropriate by the parties, State Street shall pay out monies of a
Portfolio in the following cases only:
1) Upon the purchase of domestic securities, options, futures contracts
or options on futures contracts for the account of the Portfolio but
4
only (a) against the delivery of such securities or evidence of title
to such options, futures contracts or options on futures contracts to
State Street (or any bank, banking firm or trust company doing
business in the United States or abroad which is qualified under the
1940 Act to act as a custodian and has been designated by State Street
as its agent for this purpose) registered in the name of the Portfolio
or in the name of a nominee of State Street referred to in Section 2.3
hereof or in proper form for transfer; (b) in the case of a purchase
effected through a U.S. Securities System, in accordance with the
conditions set forth in Section 2.8 hereof; (c) in the case of
repurchase agreements entered into between the Fund on behalf of the
Portfolio and State Street, or another bank, or a broker-dealer which
is a member of NASD, (i) against delivery of the securities either in
certificate form or through an entry crediting State Street's account
at the Federal Reserve Bank with such securities or (ii) against
delivery of the receipt evidencing purchase by the Portfolio of
securities owned by State Street along with written evidence of the
agreement by State Street to repurchase such securities from the
Portfolio; or (d) for transfer to a time deposit account of the Fund
in any bank, whether domestic or foreign; such transfer may be
effected prior to receipt of a confirmation from a broker and/or the
applicable bank pursuant to Proper Instructions from the Fund as
defined herein;
2) In connection with conversion, exchange or surrender of securities
owned by the Portfolio as set forth in Section 2.2 hereof;
3) For the redemption or repurchase of Shares issued as set forth in
Section 5 hereof;
4) For the payment of any expense or liability incurred by the Portfolio,
including but not limited to the following payments for the account
of the Portfolio: interest, taxes, management, accounting, transfer
agent and legal fees, and operating expenses of the Fund whether or
not such expenses are to be in whole or part capitalized or treated
as deferred expenses;
5) For the payment of any dividends on Shares declared pursuant to the
governing documents of the Fund;
6) For payment of the amount of dividends received in respect of
securities sold short; and
7) For any proper corporate other purpose, but only upon receipt of
Proper Instructions from the Fund on behalf of the Portfolio
specifying the amount of such payment and naming the person or persons
to whom such payment is to be made.
SECTION 2.7 APPOINTMENT OF AGENTS. State Street may at any time or times in
its discretion appoint (and may at any time remove) any other bank or trust
company which is itself qualified under the 1940 Act to act as a custodian, as
its agent to carry out such of the provisions of this Section 2 as State Street
may from time to time direct; provided, however, that State Street shall notify
the applicable Fund of the appointment of any agent and that such appointment
shall not relieve State Street of its responsibilities or liabilities hereunder.
SECTION 2.8 DEPOSIT OF FUND ASSETS IN U.S. SECURITIES SYSTEMS. State Street
may deposit and/or maintain securities owned by a Portfolio in a U.S. Securities
System subject to the following provisions:
0
0) Xxxxx Xxxxxx may keep securities of the Portfolio in a U.S. Securities
System provided that such securities are represented in an account of
State Street in the U.S. Securities System (the "U.S. SECURITIES
SYSTEM ACCOUNT") which account shall not include any assets of State
Street other than assets held as a fiduciary, custodian or otherwise
for customers;
2) The records of State Street with respect to securities of the
Portfolio which are maintained in a U.S. Securities System shall
identify by book-entry those securities belonging to the Portfolio;
0) Xxxxx Xxxxxx shall pay for securities purchased for the account of the
Portfolio upon (i) receipt of advice from the U.S. Securities System
that such securities have been transferred to the U.S. Securities
System Account, and (ii) the making of an entry on the records of
State Street to reflect such payment and transfer for the account of
the Portfolio. State Street shall transfer securities sold for the
account of the Portfolio upon (i) receipt of advice from the U.S.
Securities System that payment for such securities has been
transferred to the U.S. Securities System Account, and (ii) the making
of an entry on the records of State Street to reflect such transfer
and payment for the account of the Portfolio. Copies of all advices
from the U.S. Securities System of transfers of securities for the
account of the Portfolio shall identify the Portfolio, be maintained
for the Portfolio by State Street and be provided to the Fund at its
request. Upon request, State Street shall furnish the Fund on behalf
of the Portfolio confirmation of each transfer to or from the account
of the Portfolio in the form of a written advice or notice and shall
furnish to the Fund on behalf of the Portfolio copies of daily
transaction sheets reflecting each day's transactions in the U.S.
Securities System for the account of the Portfolio;
0) Xxxxx Xxxxxx shall provide the Fund with any report obtained by State
Street on the U.S. Securities System's accounting system, internal
accounting control and procedures for safeguarding securities
deposited in the U.S. Securities System;
5) Anything to the contrary in this Agreement notwithstanding, State
Street shall be liable to the Fund for the benefit of the Portfolio
for any loss or damage to the Portfolio resulting from use of the U.S.
Securities System by reason of any negligence, misfeasance or
misconduct of State Street or any of its agents or of any of its or
their employees or from failure of State Street or any such agent to
enforce effectively such rights as it may have against the U.S.
Securities System; at the election of the Fund, it shall be entitled
to be subrogated to the rights of State Street with respect to any
claim against the U.S. Securities System or any other person which
State Street may have as a consequence of any such loss or damage if
and to the extent that the Portfolio has not been made whole for any
such loss or damage.
SECTION 2.9 SEGREGATED ACCOUNT. State Street shall upon receipt of Proper
Instructions on behalf of each applicable Portfolio establish and maintain a
segregated account or accounts for and on behalf of each such Portfolio, into
which account or accounts may be transferred cash and/or securities, including
securities maintained in an account by State Street pursuant to Section 2.8
hereof, (i) in accordance with the provisions of any agreement among the Fund on
behalf of the Portfolio, State Street and a broker-dealer registered under the
6
Exchange Act and a member of the NASD (or any futures commission merchant
registered under the Commodity Exchange Act), relating to compliance with the
rules of The Options Clearing Corporation and of any registered national
securities exchange (or the CFTC or any registered contract market), or of any
similar organization or organizations, regarding escrow or other arrangements in
connection with transactions by the Portfolio, (ii) for purposes of segregating
cash or government securities in connection with options purchased, sold or
written by the Portfolio or commodity futures contracts or options thereon
purchased or sold by the Portfolio, (iii) for the purposes of compliance by the
Portfolio with the procedures required by Investment Company Act Release No.
10666, or any subsequent release of the U.S. Securities and Exchange Commission
(the "SEC"), or interpretative opinion of the staff of the SEC, relating to the
maintenance of segregated accounts by registered investment companies, and (iv)
for any other proper corporate purpose upon receipt of Proper Instructions from
the Fund on behalf of the applicable Portfolio.
SECTION 2.10 OWNERSHIP CERTIFICATES FOR TAX PURPOSES. State Street shall
execute ownership and other certificates and affidavits for all federal and
state tax purposes in connection with receipt of income or other payments with
respect to domestic securities of each Portfolio held by it and in connection
with transfers of securities.
SECTION 2.11 PROXIES. State Street shall, with respect to the domestic
securities held hereunder, cause to be promptly executed by the registered
holder of such securities, if the securities are registered otherwise than in
the name of the Portfolio or a nominee of the Portfolio, all proxies, without
indication of the manner in which such proxies are to be voted, and shall
promptly deliver to the Portfolio such proxies, all proxy soliciting materials
and all notices relating to such securities.
SECTION 2.12 COMMUNICATIONS RELATING TO PORTFOLIO SECURITIES. Subject to
the provisions of Xxxxxxx 0.0, Xxxxx Xxxxxx shall transmit promptly to each Fund
for each Portfolio all written information received by State Street from issuers
of securities being held for the Portfolio with respect to Corporate Actions,
notices of exercise of call and put options written by the Fund on behalf of the
Portfolio and the maturity of futures contracts purchased or sold by the
Portfolio. With respect to tender or exchange offers, State Street shall
transmit promptly to the Portfolio all written information received by State
Street from issuers of the securities whose tender or exchange is sought and
from the party (or its agents) making the tender or exchange offer. If the
Portfolio desires to take action with respect to any Corporate Action, the
Portfolio shall notify State Street at least three business days prior to the
date on which State Street is to take such action.
SECTION 3. PROVISIONS RELATING TO RULES 17F-5 AND 17F-7
SECTION 3.1. DEFINITIONS. As used throughout this Agreement, the
capitalized terms set forth below shall have the indicated meanings:
"Country Risk" means all factors reasonably related to the systemic risk of
holding Foreign Assets in a particular country including, but not limited to,
such country's political environment, economic and financial infrastructure
(including any Eligible Securities Depository operating in the country),
prevailing or developing custody and settlement practices, and laws and
regulations applicable to the safekeeping and recovery of Foreign Assets held in
custody in that country; however, "Country Risk" does not include the custody or
settlement practices and procedures of an Eligible Foreign Custodian appointed
by the Foreign Custody Manager.
7
"Eligible Foreign Custodian" has the meaning set forth in section (a)(1) of Rule
17f-5, including a majority-owned or indirect subsidiary of a U.S. Bank (as
defined in Rule 17f-5), a bank holding company meeting the requirements of an
Eligible Foreign Custodian (as set forth in Rule 17f-5 or by other appropriate
action of the SEC, or a foreign branch of a Bank (as defined in Section 2(a)(5)
of the 0000 Xxx) meeting the requirements of a custodian under Section 17(f) of
the 1940 Act; the term does not include any Eligible Securities Depository.
"Eligible Securities Depository" has the meaning set forth in section (b)(1) of
Rule 17f-7.
"Foreign Assets" means any of the Portfolios' investments (including foreign
currencies) for which the primary market is outside the United States and such
cash and cash equivalents as are reasonably necessary to effect the Portfolios'
transactions in such investments.
"Foreign Custody Manager" has the meaning set forth in section (a)(3) of Rule
17f-5.
"Rule 17f-5" means Rule 17f-5 promulgated under the 1940 Act.
"Rule 17f-7" means Rule 17f-7 promulgated under the 1940 Act.
SECTION 3.2. STATE STREET AS FOREIGN CUSTODY MANAGER.
3.2.1 DELEGATION TO STATE STREET AS FOREIGN CUSTODY MANAGER. Each Fund, by
resolution adopted by its Board, hereby delegates to State Street, subject to
Section (b) of Rule 17f-5, the responsibilities set forth in this Section 3.2
with respect to Foreign Assets of the Portfolios held outside the United States,
and State Street hereby accepts such delegation as Foreign Custody Manager with
respect to the Portfolios.
3.2.2 COUNTRIES COVERED. The Foreign Custody Manager shall be responsible
for performing the delegated responsibilities defined below only with respect to
the countries and custody arrangements for each such country listed on Schedule
A to this Agreement, which list of countries may be amended from time to time by
a Fund with the agreement of the Foreign Custody Manager. The Foreign Custody
Manager shall list on Schedule A the Eligible Foreign Custodians selected by the
Foreign Custody Manager to maintain the assets of the Portfolios, which list of
Eligible Foreign Custodians may be amended from time to time in the sole
discretion of the Foreign Custody Manager. The Foreign Custody Manager will
provide amended versions of Schedule A in accordance with Section 3.2.5 hereof.
Upon the receipt by the Foreign Custody Manager of Proper Instructions to open
an account or to place or maintain Foreign Assets in a country listed on
Schedule A, and the fulfillment by the Fund, on behalf of the Portfolios, of the
applicable account opening requirements for such country, the Foreign Custody
Manager shall be deemed to have been delegated by the Board on behalf of the
Portfolios responsibility as Foreign Custody Manager with respect to that
country and to have accepted such delegation. Execution of this Agreement by the
Fund shall be deemed to be a Proper Instruction to open an account, or to place
or maintain Foreign Assets, in each country listed on Schedule A in which State
Street has previously placed or currently maintains Foreign Assets pursuant to
the terms of the contract governing the custody arrangement. Following the
receipt of Proper Instructions directing the Foreign Custody Manager to close
the account of a Portfolio with the Eligible Foreign Custodian selected by the
Foreign Custody Manager in a designated country, the delegation by the Board on
behalf of the Portfolios to State Street as Foreign Custody Manager for that
country shall be deemed to have been withdrawn and State Street shall
8
immediately cease to be the Foreign Custody Manager of the Portfolios with
respect to that country.
The Foreign Custody Manager may withdraw its acceptance of delegated
responsibilities with respect to a designated country upon written notice to the
Fund. Thirty days (or such longer period to which the parties agree in writing)
after receipt of any such notice by the Fund, State Street shall have no further
responsibility in its capacity as Foreign Custody Manager to the Fund with
respect to the country as to which State Street's acceptance of delegation is
withdrawn.
3.2.3 SCOPE OF DELEGATED RESPONSIBILITIES:
(a) SELECTION OF ELIGIBLE FOREIGN CUSTODIANS. Subject to the provisions of
this Section 3.2, the Foreign Custody Manager may place and maintain the Foreign
Assets in the care of the Eligible Foreign Custodian selected by the Foreign
Custody Manager in each country listed on Schedule A, as amended from time to
time. In performing its delegated responsibilities as Foreign Custody Manager to
place or maintain Foreign Assets with an Eligible Foreign Custodian, the Foreign
Custody Manager shall determine that the Foreign Assets will be subject to
reasonable care, based on the standards applicable to custodians in the relevant
market, after considering all factors relevant to the safekeeping of such
assets, including, without limitation the factors specified in Rule 17f-5(c)(1).
(b) CONTRACTS WITH ELIGIBLE FOREIGN CUSTODIANS. The Foreign Custody Manager
shall determine that the contract governing the foreign custody arrangements
with each Eligible Foreign Custodian selected by the Foreign Custody Manager
will satisfy the requirements of Rule 17f-5(c)(2).
(c) MONITORING. In each case in which the Foreign Custody Manager maintains
Foreign Assets with an Eligible Foreign Custodian selected by the Foreign
Custody Manager, the Foreign Custody Manager shall establish a system to monitor
(i) the appropriateness of maintaining the Foreign Assets with such Eligible
Foreign Custodian and (ii) the contract governing the custody arrangements
established by the Foreign Custody Manager with the Eligible Foreign Custodian.
In the event the Foreign Custody Manager determines that the custody
arrangements with an Eligible Foreign Custodian it has selected are no longer
appropriate or no longer meet the requirements of Rule 17f-5, the Foreign
Custody Manager shall promptly notify the Board in accordance with Section 3.2.5
hereunder.
3.2.4 GUIDELINES FOR THE EXERCISE OF DELEGATED AUTHORITY. For purposes of
this Section 3.2, the Board of the applicable Fund, or the Fund's investment
adviser, shall be deemed to have considered and determined to accept such
Country Risk as is incurred by placing and maintaining the Foreign Assets in
each country for which State Street is serving as Foreign Custody Manager of the
Portfolios.
3.2.5 REPORTING REQUIREMENTS. The Foreign Custody Manager shall report the
withdrawal of the Foreign Assets from an Eligible Foreign Custodian and the
placement of such Foreign Assets with another Eligible Foreign Custodian by
providing to the Board an amended Schedule A at the end of the calendar quarter
in which an amendment to such Schedule has occurred. The Foreign Custody Manager
shall make written reports notifying the Board of any other material change in
the foreign custody arrangements of the Portfolios described in this Section 3.2
after the occurrence of the material change.
3.2.6 STANDARD OF CARE AS FOREIGN CUSTODY MANAGER OF A PORTFOLIO. In
performing the responsibilities delegated to it, the Foreign Custody Manager
9
agrees to exercise reasonable care, prudence and diligence such as a person
having responsibility for the safekeeping of assets of management investment
companies registered under the 1940 Act would exercise.
3.2.7 REPRESENTATIONS WITH RESPECT TO RULE 17F-5. The Foreign Custody
Manager represents that it is a U.S. Bank as defined in section (a)(7) of Rule
17f-5. Each Fund represents to State Street that its Board has determined that
it is reasonable for the Board to rely on State Street to perform the
responsibilities delegated pursuant to this Agreement to State Street as the
Foreign Custody Manager of the Portfolios.
3.2.8 EFFECTIVE DATE AND TERMINATION OF STATE STREET AS FOREIGN CUSTODY
MANAGER. The Board's delegation to State Street as Foreign Custody Manager of
the Portfolios shall be effective as of the date hereof and shall remain in
effect until terminated at any time, without penalty, by written notice from the
terminating party to the non-terminating party. Termination will become
effective thirty (30) days after receipt by the non-terminating party of such
notice. The provisions of Section 3.2.2 hereof shall govern the delegation to
and termination of State Street as Foreign Custody Manager of the Portfolios
with respect to designated countries.
SECTION 3.3 ELIGIBLE SECURITIES DEPOSITORIES.
3.3.1 ANALYSIS AND MONITORING. State Street shall (a) provide each Fund (or
its duly-authorized investment manager or investment advisor) with an analysis
of the custody risks associated with maintaining assets with the Eligible
Securities Depositories set forth on Schedule B hereto in accordance with
section (a)(1)(i)(A) of Rule 17f-7, and (b) monitor such risks on a continuing
basis, and promptly notify a Fund (or its duly-authorized investment manager or
investment advisor) of any material change in such risks, in accordance with
section (a)(1)(i)(B) of Rule 17f-7.
3.3.2 STANDARD OF CARE. State Street agrees to exercise reasonable care,
prudence and diligence in performing the duties set forth in Section 3.3.1.
SECTION 4. DUTIES OF STATE STREET WITH RESPECT TO PROPERTY OF THE PORTFOLIOS
HELD OUTSIDE THE UNITED STATES
SECTION 4.1 DEFINITIONS. As used throughout this Agreement, the capitalized
terms set forth below shall have the indicated meanings:
"Foreign Securities System" means an Eligible Securities Depository listed on
Schedule B hereto.
"Foreign Sub-Custodian" means a foreign banking institution serving as an
Eligible Foreign Custodian.
SECTION 4.2. HOLDING SECURITIES. State Street shall identify on its books
as belonging to the Portfolios the foreign securities held by each Foreign
Sub-Custodian or Foreign Securities System. State Street may hold foreign
securities for all of its customers, including the Portfolios, with any Foreign
Sub-Custodian in an account that is identified as belonging to State Street for
the benefit of its customers, provided however, that (i) the records of State
Street with respect to foreign securities of the Portfolios which are maintained
in such account shall identify those securities as belonging to the Portfolios
and (ii), to the extent permitted and customary in the market in which the
account is maintained, State Street shall require that securities so held by the
Foreign Sub-Custodian be held separately from any assets of such Foreign
Sub-Custodian or of other customers of such Foreign Sub-Custodian.
10
SECTION 4.3. FOREIGN SECURITIES SYSTEMS. Foreign securities shall be
maintained in a Foreign Securities System in a designated country through
arrangements implemented by State Street or a Foreign Sub-Custodian, as
applicable, in such country.
SECTION 4.4. TRANSACTIONS IN FOREIGN CUSTODY ACCOUNT.
4.4.1. DELIVERY OF FOREIGN ASSETS. State Street or a Foreign Sub-Custodian
shall release and deliver foreign securities of the Portfolios held by State
Street or such Foreign Sub-Custodian, or in a Foreign Securities System account,
only upon receipt of Proper Instructions, which may be continuing instructions
when deemed appropriate by the parties, and only in the following cases:
(i) upon the sale of such foreign securities for the Portfolio in
accordance with commercially reasonable market practice in the country
where such foreign securities are held or traded, including, without
limitation: (A) delivery against expectation of receiving later
payment; or (B) in the case of a sale effected through a Foreign
Securities System, in accordance with the rules governing the
operation of the Foreign Securities System;
(ii) in connection with any repurchase agreement related to foreign
securities;
(iii)to the depository agent in connection with tender or other similar
offers for foreign securities of the Portfolios;
(iv) to the issuer thereof or its agent when such foreign securities are
called, redeemed, retired or otherwise become payable;
(v) to the issuer thereof, or its agent, for transfer into the name of
State Street (or the name of the respective Foreign Sub-Custodian or
of any nominee of State Street or such Foreign Sub-Custodian) or for
exchange for a different number of bonds, certificates or other
evidence representing the same aggregate face amount or number of
units;
(vi) to brokers, clearing banks or other clearing agents for examination or
trade execution in accordance with market custom; provided that in any
such case the Foreign Sub-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 Foreign Sub-Custodian's own negligence or willful misconduct;
(vii)for exchange or conversion pursuant to any plan of merger,
consolidation, recapitalization, reorganization or readjustment of the
securities of the issuer of such securities, or pursuant to provisions
for conversion contained in such securities, or pursuant to any
deposit agreement;
(viii) in the case of warrants, rights or similar foreign securities, the
surrender thereof in the exercise of such warrants, rights or similar
securities or the surrender of interim receipts or temporary
securities for definitive securities;
(ix) for delivery as security in connection with any borrowing by the
Portfolios requiring a pledge of assets by the Portfolios;
11
(x) in connection with trading in options and futures contracts, including
delivery as original margin and variation margin;
(xi) in connection with the lending of foreign securities; and
(xii)for any other proper corporate purpose, but only upon receipt of
Proper Instructions specifying the foreign securities to be delivered
and naming the person or persons to whom delivery of such securities
shall be made.
4.4.2. PAYMENT OF PORTFOLIO MONIES. Upon receipt of Proper Instructions,
which may be continuing instructions when deemed appropriate by the parties,
State Street shall pay out, or direct the respective Foreign Sub-Custodian or
the respective Foreign Securities System to pay out, monies of a Portfolio in
the following cases only:
(i) upon the purchase of foreign securities for the Portfolio, unless
otherwise directed by Proper Instructions, by (A) delivering money to
the seller thereof or to a dealer therefor (or an agent for such
seller or dealer) against expectation of receiving later delivery of
such foreign securities; or (B) in the case of a purchase effected
through a Foreign Securities System, in accordance with the rules
governing the operation of such Foreign Securities System;
(ii) in connection with the conversion, exchange or surrender of foreign
securities of the Portfolio;
(iii)for the payment of any expense or liability of the Portfolio,
including but not limited to the following payments: interest, taxes,
investment advisory fees, transfer agency fees, fees under this
Agreement, legal fees, accounting fees, and other operating expenses;
(iv) for the purchase or sale of foreign exchange or foreign exchange
contracts for the Portfolio, including transactions executed with or
through State Street or its Foreign Sub-Custodians; (v) in connection
with trading in options and futures contracts, including delivery as
original margin and variation margin;
(vi) for payment of part or all of the dividends received in respect of
securities sold short;
(vii)in connection with the borrowing or lending of foreign securities;
and
(viii)for any other proper corporate purpose, but only upon receipt of
Proper Instructions specifying the amount of such payment and naming
the person or persons to whom such payment is to be made.
4.4.3. MARKET CONDITIONS. Notwithstanding any provision of this Agreement
to the contrary, settlement and payment for Foreign Assets received for the
account of the Portfolios and delivery of Foreign Assets maintained for the
account of the Portfolios may be effected in accordance with the customary
established securities trading or processing practices and procedures in the
country or market in which the transaction occurs, including, without
limitation, delivering Foreign Assets to the purchaser thereof or to a dealer
therefor (or an agent for such purchaser or dealer) with the expectation of
receiving later payment for such Foreign Assets from such purchaser or dealer.
State Street shall provide to the Board the information with respect to custody
12
and settlement practices in countries in which State Street appoints a Foreign
Sub-Custodian described on Schedule C hereto at the time or times set forth on
such Schedule. State Street may revise Schedule C from time to time, provided
that no such revision shall result in the Board being provided with
substantively less information than had been previously provided hereunder.
SECTION 4.5. REGISTRATION OF FOREIGN SECURITIES. The foreign securities
maintained in the custody of a Foreign Sub-Custodian (other than bearer
securities) shall be registered in the name of the applicable Portfolio or in
the name of State Street or in the name of any Foreign Sub-Custodian or in the
name of any nominee of the foregoing, and the applicable Fund on behalf of such
Portfolio agrees to hold any such nominee harmless from any liability as a
holder of record of such foreign securities. State Street or a Foreign
Sub-Custodian shall not be obligated to accept securities on behalf of a
Portfolio under the terms of this Agreement unless the form of such securities
and the manner in which they are delivered are in accordance with reasonable
market practice.
SECTION 4.6 BANK ACCOUNTS. State Street shall identify on its books as
belonging to each Fund cash (including cash denominated in foreign currencies)
deposited with State Street. Where State Street is unable to maintain, or market
practice does not facilitate the maintenance of, cash on the books of State
Street, a bank account or bank accounts shall be opened and maintained outside
the United States on behalf of a Portfolio with a Foreign Sub-Custodian. All
accounts referred to in this Section shall be subject only to draft or order by
State Street (or, if applicable, such Foreign Sub-Custodian) acting pursuant to
the terms of this Agreement to hold cash received by or from or for the account
of the Portfolio. Cash maintained on the books of State Street (including its
branches, subsidiaries and affiliates), regardless of currency denomination, is
maintained in bank accounts established under, and subject to the laws of, The
Commonwealth of Massachusetts.
SECTION 4.7. COLLECTION OF INCOME. State Street shall use reasonable
commercial efforts to collect all income and other payments with respect to the
Foreign Assets held hereunder to which the Portfolios shall be entitled and
shall credit such income, as collected, to the applicable Portfolio. In the
event that extraordinary measures are required to collect such income, the Fund
and State Street shall consult as to such measures and as to the compensation
and expenses of State Street relating to such measures.
SECTION 4.8 SHAREHOLDER RIGHTS. With respect to the foreign securities held
pursuant to this Xxxxxxx 0, Xxxxx Xxxxxx will use reasonable commercial efforts
to facilitate the exercise of voting and other shareholder rights, subject
always to the laws, regulations and practical constraints that may exist in the
country where such securities are issued. The Fund acknowledges that local
conditions, including lack of regulation, onerous procedural obligations, lack
of notice and other factors may have the effect of severely limiting the ability
of the Fund to exercise shareholder rights.
SECTION 4.9. COMMUNICATIONS RELATING TO FOREIGN SECURITIES. State Street
shall transmit promptly to each Fund written information with respect to
Corporate Actions received by State Street via the Foreign Sub-Custodians from
issuers of the foreign securities being held for the account of the Portfolios.
With respect to tender or exchange offers, State Street shall transmit promptly
to a Fund written information with respect to materials so received by State
Street from issuers of the foreign securities whose tender or exchange is sought
or from the party (or its agents) making the tender or exchange offer. Absent
State Street's negligence, misfeasance, or misconduct, State Street shall not be
liable for any untimely exercise of any action, right or power in connection
13
with a Corporate Action unless (i) State Street or the respective Foreign
Sub-Custodian is in actual possession of such foreign securities or property and
(ii) State Street receives Proper Instructions with regard to the Corporate
Action, and both (i) and (ii) occur at least three business days prior to the
date on which State Street is to take action to exercise such right or power.
SECTION 4.10. LIABILITY OF FOREIGN SUB-CUSTODIANS. Each agreement pursuant
to which State Street appoints a Foreign Sub-Custodian shall, to the extent
possible, require the Foreign Sub-Custodian to exercise reasonable care in the
performance of its duties, and to indemnify, and hold harmless, State Street
from and against any loss, damage, cost, expense, liability or claim arising out
of or in connection with the Foreign Sub-Custodian's performance of such
obligations. At the Fund's election, the Portfolios shall be entitled to be
subrogated to the rights of State Street with respect to any claims against a
Foreign Sub-Custodian as a consequence of any such loss, damage, cost, expense,
liability or claim if and to the extent that the Portfolios have not been made
whole for any such loss, damage, cost, expense, liability or claim.
SECTION 4.11 TAX LAW. State Street shall have no responsibility or
liability for any obligations now or hereafter imposed on a Fund, the Portfolios
or State Street as custodian of the Portfolios by the tax law of the United
States or of any state or political subdivision thereof. It shall be the
responsibility of each Fund to notify State Street of the obligations imposed on
the Fund with respect to the Portfolios or State Street as custodian of the
Portfolios by the tax law of countries other than those mentioned in the above
sentence, including responsibility for withholding and other taxes, assessments
or other governmental charges, certifications and governmental reporting. The
sole responsibility of State Street with regard to such tax law shall be to use
reasonable efforts to assist a Fund with respect to any claim for exemption or
refund under the tax law of countries for which the Fund has provided such
information.
SECTION 4.12. LIABILITY OF CUSTODIAN. State Street shall be liable for the
acts or omissions of a Foreign Sub-Custodian to the same extent as set forth
with respect to sub- custodians generally in this Agreement and, regardless of
whether assets are maintained in the custody of a Foreign Sub-Custodian or a
Foreign Securities System, State Street shall not be liable for any loss,
damage, cost, expense, liability or claim resulting from nationalization,
expropriation, currency restrictions, or acts of war or terrorism, or any other
loss where the Sub- Custodian has otherwise acted with reasonable care.
SECTION 5. PAYMENTS FOR SALES OR REPURCHASES OR REDEMPTIONS OF SHARES. State
Street shall receive from the distributor for the Shares or from the Transfer
Agent and deposit into the account of the appropriate Portfolio such payments as
are received for Shares thereof issued or sold from time to time by the Fund.
State Street will provide timely notification to the Fund on behalf of each such
Portfolio and the Transfer Agent of any receipt by it of payments for Shares of
such Portfolio.
From such funds as may be available for the purpose, State Street shall, upon
receipt of instructions from the Transfer Agent, make funds available for
payment to holders of Shares who have delivered to the Transfer Agent a request
for redemption or repurchase of their Shares. In connection with the redemption
or repurchase of Shares, State Street is authorized upon receipt of instructions
from the Transfer Agent to wire funds to or through a commercial bank designated
by the redeeming shareholders. In connection with the redemption or repurchase
of Shares, State Street shall honor checks drawn on State Street by a holder of
Shares, which checks have been furnished by the Fund to the holder of Shares,
when presented to State Street in accordance with such procedures and controls
14
as are mutually agreed upon from time to time between the Fund and State Street.
SECTION 6. PROPER INSTRUCTIONS. Proper Instructions as used throughout this
Agreement means a writing signed or initialed by one or more person or persons
as the Board shall have from time to time authorized. Each such writing shall
set forth the specific transaction or type of transaction involved, including a
specific statement of the purpose for which such action is requested. Each Fund
shall provide State Street with a list of persons authorized to give oral
instructions. Oral instructions will be considered Proper Instructions if State
Street reasonably believes them to have been given by a person authorized to
give such instructions with respect to the transaction involved. State Street
shall give a Fund prompt notice of the receipt of an oral instruction and the
Fund shall cause all oral instructions to be confirmed in writing. Proper
Instructions may include communications effected directly between
electro-mechanical or electronic devices provided that each Fund and State
Street agree to security procedures, including but not limited to, the security
procedures selected by a Fund in the Funds Transfer Addendum attached hereto.
For purposes of this Section, Proper Instructions shall include instructions
received by State Street pursuant to any three-party agreement which requires a
segregated asset account in accordance with Section 2.10.
SECTION 7. ACTIONS PERMITTED WITHOUT EXPRESS AUTHORITY. State Street may in its
discretion, without express authority from a Fund on behalf of each applicable
Portfolio: 1) make payments to itself or others for minor expenses of handling
securities or other similar items relating to its duties under this Agreement,
provided that all such payments shall be accounted for to a Fund on behalf of
the Portfolio; 2) surrender securities in temporary form for securities in
definitive form; 3) endorse for collection, in the name of the Portfolio,
checks, drafts and other negotiable instruments; and 4) in general, attend to
all non-discretionary details in connection with the sale, exchange,
substitution, purchase, transfer and other dealings with the securities and
property of the Portfolio except as otherwise directed by the Board.
SECTION 8. EVIDENCE OF AUTHORITY State Street shall be protected in acting upon
any instructions, notice, request, consent, certificate or other instrument or
paper reasonably believed by it to be genuine and to have been properly executed
by or on behalf of a Fund. State Street may receive and accept a copy of a
resolution certified by the Secretary or an Assistant Secretary of a Fund
("CERTIFIED RESOLUTION") as conclusive evidence (a) of the authority of any
person to act in accordance with such resolution or (b) of any determination or
of any action by the Board as described in such resolution, and such resolution
may be considered as in full force and effect until receipt by State Street of
written notice to the contrary.
SECTION 9. DUTIES OF STATE STREET WITH RESPECT TO THE BOOKS OF ACCOUNT AND
CALCULATION OF NET ASSET VALUE AND NET INCOME
SECTION 9.1 DELIVERY OF ACCOUNTS AND RECORDS. Fund will turn over or cause
to be turned over to State Street all accounts and records needed by State
Street to perform its duties and responsibilities hereunder fully and properly.
State Street may rely conclusively on the completeness and correctness of such
accounts and records.
SECTION 9.2 ACCOUNTS AND RECORDS. State Street will prepare and maintain,
under the direction of and as interpreted by each Fund, each Fund's or
Portfolio's accountants and/or other advisors, in complete, accurate and current
form such accounts and records: (1) required to be maintained by a Fund with
respect to portfolio transactions under Section 31(a) of the 1940 Act and the
rules and regulations from time to time adopted thereunder; (2) required as a
15
basis for calculation of each Portfolio's net asset value; and (3) as otherwise
agreed upon by the parties. Fund will advise State Street in writing of all
applicable record retention requirements, other than those set forth in the 1940
Act. State Street will preserve such accounts and records in the manner and for
the periods prescribed in the 1940 Act or for such longer period as is agreed
upon by the parties. Each Fund will furnish, in writing or its electronic or
digital equivalent, accurate and timely information needed by State Street to
complete such accounts and records when such information is not readily
available from generally accepted securities industry services or publications.
Upon notification from State Street, a Fund will prepare and maintain the books
and records as set forth above on a "back-up" basis from the date hereof until
completion of the conversion period in the event that State Street is unable to
do so as a result of events or circumstances beyond the reasonable control of
State Street, including, without limitation, power or other mechanical or
technological failures or interruptions, computer viruses or communications
disruptions, work stoppages, natural disasters, or other similar events or acts.
SECTION 9.3 ACCOUNTS AND RECORDS PROPERTY OF EACH FUND. State Street
acknowledges that all of the accounts and records maintained by State Street
pursuant hereto are the property of a Fund, and will be made available to that
Fund for inspection or reproduction within a reasonable period of time, upon
demand. State Street will assist a Fund's independent auditors, or upon the
prior written approval of a Fund, or upon demand, any regulatory body, in any
requested review of that Fund's accounts and records but the Fund will reimburse
State Street for all expenses and employee time invested in any such review
outside of routine and normal periodic reviews. Upon receipt from a Fund of the
necessary information or instructions, State Street will supply information from
the books and records it maintains for the Fund that the Fund may reasonably
request for tax returns, questionnaires, periodic reports to shareholders and
such other reports and information requests as the Fund and State Street may
agree upon from time to time.
SECTION 9.4 ADOPTION OF PROCEDURES. State Street and each Fund may from
time to time adopt such procedures as they agree upon, and State Street may
conclusively assume that no procedure approved or directed by a Fund, a Fund's
or Portfolio's accountants or other advisors conflicts with or violates any
requirements of the prospectus, articles of incorporation, bylaws, declaration
of trust, any applicable law, rule or regulation, or any order, decree or
agreement by which the Fund may be bound. Each Fund will be responsible for
notifying State Street of any changes in statutes, regulations, rules,
requirements or policies which may impact State Street responsibilities or
procedures under this Agreement.
SECTION 9.5 VALUATION OF ASSETS. State Street will value the assets of each
Portfolio in accordance with a Fund's Instructions utilizing the pricing sources
designated by that Fund ("Pricing Sources") on the Price Source and Methodology
Authorization Matrix, incorporated herein by this reference.
SECTION 10. RECORDS State Street shall with respect to each Portfolio create and
maintain all records relating to its activities and obligations under this
Agreement in such manner as will meet the obligations of a Fund under the 1940
Act, with particular attention to Section 31 thereof and Rules 31a-1 and 31a-2
thereunder. All such records shall be the property of the Fund and shall at all
times during the regular business hours of State Street be open for inspection
by duly authorized officers, employees or agents of the Fund and employees and
agents of the SEC. State Street shall, at a Fund's request, supply the Fund with
a tabulation of securities owned by each Portfolio and held by State Street and
shall, when requested to do so by the Fund and for such compensation as shall be
agreed upon between the Fund and State Street, include certificate numbers in
16
such tabulations.
SECTION 11. OPINION OF FUND'S INDEPENDENT ACCOUNTANT State Street shall take all
reasonable action, as a Fund on behalf of each applicable Portfolio may from
time to time request, to obtain from year to year favorable opinions from the
Fund's independent accountants with respect to its activities hereunder in
connection with the preparation of the Fund's Form N-1A, and Form N-SAR or other
annual reports to the SEC and with respect to any other requirements thereof.
SECTION 12. REPORTS TO FUND BY INDEPENDENT PUBLIC ACCOUNTANTS State Street shall
provide each Fund, on behalf of each of the applicable Portfolios at such times
as the Fund may reasonably require, with reports by independent public
accountants on the accounting system, internal accounting control and procedures
for safeguarding securities, futures contracts and options on futures contracts,
including securities deposited and/or maintained in a U.S. Securities System or
a Foreign Securities System, relating to the services provided by State Street
under this Agreement; such reports, shall be of sufficient scope and in
sufficient detail, as may reasonably be required by a Fund to provide reasonable
assurance that any material inadequacies would be disclosed by such examination,
and, if there are no such inadequacies, the reports shall so state.
SECTION 13. COMPENSATION OF STATE STREET State Street shall be entitled to
reasonable compensation for its services and expenses as custodian and
recordkeeper, as agreed upon from time to time between each Fund on behalf of
each applicable Portfolio and State Street. The initial Fee Schedule is attached
hereto as Exhibit B.
SECTION 14. RESPONSIBILITY OF CUSTODIAN So long as and to the extent that it is
in the exercise of reasonable care, State Street shall not be responsible for
the title, validity or genuineness of any property or evidence of title thereto
received by it or delivered by it pursuant to this Agreement and shall be held
harmless in acting upon any notice, request, consent, certificate or other
instrument reasonably believed by it to be genuine and to be signed by the
proper party or parties, including any futures commission merchant acting
pursuant to the terms of a three-party futures or options agreement. State
Street shall be held to the exercise of reasonable care in carrying out the
provisions of this Agreement, but shall be kept indemnified by and shall be
without liability to a Fund for any action taken or omitted by it in good faith
without negligence, including, without limitation, acting in accordance with any
Proper Instruction. It shall be entitled to rely on and may act upon advice of
counsel (who may be counsel for the Fund) on all matters, and shall be without
liability for any action reasonably taken or omitted pursuant to such advice.
State Street shall be without liability to a Fund and the applicable Portfolios
for any loss, liability, claim or expense resulting from or caused by anything
which is part of Country Risk (as defined in Section 3 hereof), including
without limitation nationalization, expropriation, currency restrictions, or
acts of war, revolution, riots or terrorism.
Except as may arise from State Street's own negligence or willful misconduct or
the negligence or willful misconduct of a sub-custodian or agent, State Street
shall be without liability to a Fund for any loss, liability, claim or expense
resulting from or caused by; (i) events or circumstances beyond the reasonable
control of State Street or any sub-custodian or Securities System or any agent
or nominee of any of the foregoing, including, without limitation, the
interruption, suspension or restriction of trading on or the closure of any
securities market, power or other mechanical or technological failures or
interruptions, computer viruses or communications disruptions, work stoppages,
natural disasters, or other similar events or acts; (ii) errors by the Fund or
its duly-authorized investment manager or investment advisor in their
17
instructions to State Street provided such instructions have been in accordance
with this Agreement; (iii) the insolvency of or acts or omissions by a
Securities System; (iv) any delay or failure of any broker, agent or
intermediary, central bank or other commercially prevalent payment or clearing
system to deliver to State Street's sub-custodian or agent securities purchased
or in the remittance or payment made in connection with securities sold; (v) any
delay or failure of any company, corporation, or other body in charge of
registering or transferring securities in the name of State Street, the Fund,
State Street's sub-custodians, nominees or agents or any consequential losses
arising out of such delay or failure to transfer such securities including
non-receipt of bonus, dividends and rights and other accretions or benefits;
(vi) delays or inability to perform its duties due to any disorder in market
infrastructure with respect to any particular security or Securities System; and
(vii) any provision of any present or future law or regulation or order of the
United States of America, or any state thereof, or any other country, or
political subdivision thereof or of any court of competent jurisdiction.
State Street shall be liable for the acts or omissions of a Foreign
Sub-Custodian (as defined in Section 4 hereof) to the same extent as set forth
with respect to sub-custodians generally in this Agreement.
If a Fund on behalf of a Portfolio requires State Street to take any action with
respect to securities, which action involves the payment of money or which
action may, in the opinion of State Street, result in State Street or its
nominee assigned to the Fund or the Portfolio being liable for the payment of
money or incurring liability of some other form, the Fund on behalf of the
Portfolio, as a prerequisite to requiring State Street to take such action,
shall provide indemnity to State Street in an amount and form satisfactory to
it.
If a Fund requires State Street, its affiliates, subsidiaries or agents, to
advance cash or securities for any purpose (including but not limited to
securities settlements, foreign exchange contracts and assumed settlement) or in
the event that State Street or its nominee shall incur or be assessed any taxes,
charges, expenses, assessments, claims or liabilities in connection with the
performance of this Agreement, except such as may arise from its or its
nominee's own negligent action, negligent failure to act or willful misconduct,
any property at any time held for the account of the applicable Portfolio shall
be security therefor and should the Fund fail to repay State Street promptly,
State Street shall be entitled to utilize available cash and to dispose of such
Portfolio's assets to the extent necessary to obtain reimbursement.
State Street is not responsible or liable for, and each Fund will indemnify and
hold State Street harmless from and against, any and all costs, expenses,
losses, damages, charges, counsel fees (including, without limitation,
disbursements and the allocable cost of in-house counsel), payments and
liabilities which may be asserted against or incurred by State Street or for
which State Street may be held to be liable, arising out of or attributable to
any error, omission, inaccuracy or other deficiency in any Portfolio's accounts
and records or other information provided to State Street by or on behalf of a
Portfolio, including the accuracy of the prices quoted by the Pricing Sources or
for the information supplied by that Fund to value the assets, or the failure of
that Fund to provide, or provide in a timely manner, any accounts, records, or
information needed by State Street to perform its duties hereunder
State Street shall only be liable for direct damages that are the result of
State Street's action or failure to act.
State Street agrees to maintain commercially reasonable back-up and disaster
18
recovery procedures and plans designed to minimize any loss of data or service
interruption. Such procedures and plans include each Fund's provision of certain
services as set forth more specifically in Section 9.2 above.
SECTION 15. EFFECTIVE PERIOD, TERMINATION AND AMENDMENT This Agreement shall
become effective as of its execution, shall continue in full force and effect
until terminated as hereinafter provided, may be amended at any time by mutual
agreement of the parties hereto and may be terminated by either party by an
instrument in writing delivered or mailed, postage prepaid to the other party,
such termination to take effect not sooner than sixty (60) days after the date
of such delivery or mailing; provided, however, that the Fund shall not amend or
terminate this Agreement in contravention of any applicable federal or state
regulations, or any provision of the Fund's Declaration of Trust, Articles of
Incorporation, or other governing documents, and further provided, that a Fund
on behalf of one or more of the Portfolios may at any time by action of its
Board (i) substitute another bank or trust company for State Street by giving
notice as described above to State Street, or (ii) immediately terminate this
Agreement in the event of the appointment of a conservator or receiver for State
Street by the Comptroller of the Currency or upon the happening of a like event
at the direction of an appropriate regulatory agency or court of competent
jurisdiction. Upon termination of the Agreement:
1) each Fund on behalf of each applicable Portfolio shall (a) pay to
State Street such compensation as may be due as of the date of such
termination and shall likewise reimburse State Street for its
reasonable costs, expenses and disbursements, (b) designate a
successor recordkeeper (which may be the Fund) by Proper Instructions;
and (c) designate a successor custodian by Proper Instruction.
2) Upon payment of all sums due to it from a Fund, State Street shall (a)
deliver all accounts and records to the successor recordkeeper (or, if
none, to that Fund) at the office of State Street, and (b) deliver to
such successor custodian at the office of State Street, duly endorsed
and in the form for transfer, all securities of each applicable
Portfolio then held by it hereunder and shall transfer to an account
of the successor custodian all of the securities of each such
Portfolio held in a Securities System.
If no such successor custodian shall be appointed, State Street shall, in like
manner, upon receipt of a Certified Resolution, deliver at the office of State
Street and transfer such securities, funds and other properties in accordance
with such resolution.
In the event that no written order designating a successor custodian or
Certified Resolution shall have been delivered to State Street on or before the
date when such termination shall become effective, then State Street shall have
the right to deliver to a bank or trust company, which is a "bank" as defined in
the 1940 Act, doing business in Boston, Massachusetts, or New York, New York, of
its own selection, having an aggregate capital, surplus, and undivided profits,
as shown by its last published report, of not less than $25,000,000, all
securities, funds and other properties held by State Street on behalf of each
applicable Portfolio and all instruments held by State Street relative thereto
and all other property held by it under this Agreement on behalf of each
applicable Portfolio, and to transfer to an account of such successor custodian
all of the securities of each such Portfolio held in any Securities System.
Thereafter, such bank or trust company shall be the successor of State Street
under this Agreement.
In the event that accounts, records, securities, funds and other properties
19
remain in the possession of State Street after the date of termination hereof
owing to failure of a Fund to procure the Certified Resolution to appoint a
successor custodian, State Street shall be entitled to fair compensation for its
services during such period as State Street retains possession of such accounts,
records, securities, funds and other properties and the provisions of this
Agreement relating to the duties and obligations of State Street shall remain in
full force and effect.
SECTION 16. INTERPRETIVE AND ADDITIONAL PROVISIONS. In connection with the
operation of this Agreement, State Street and each Fund, on behalf of each of
the applicable Portfolios, may from time to time agree on such provisions
interpretive of or in addition to the provisions of this Agreement as may in
their joint opinion be consistent with the general tenor of this Agreement. Any
such interpretive or additional provisions shall be in a writing signed by both
parties and shall be annexed hereto, provided that no such interpretive or
additional provisions shall contravene any applicable federal or state
regulations or any provision of the Fund's Declaration of Trust, Articles of
Incorporation, or other governing documents. No interpretive or additional
provisions made as provided in the preceding sentence shall be deemed to be an
amendment of this Agreement.
SECTION 17. ADDITIONAL FUNDS. In the event that a Fund establishes one or more
series with respect to which it desires to have State Street render services as
custodian and recordkeeper under the terms hereof, it shall so notify State
Street in writing, and if State Street agrees in writing to provide such
services, such series of Shares shall become a Portfolio hereunder.
SECTION 18. MASSACHUSETTS LAW TO APPLY. This Agreement shall be construed and
the provisions thereof interpreted under and in accordance with laws of The
Commonwealth of Massachusetts.
SECTION 19. PRIOR AGREEMENTS. This Agreement supersedes and terminates, as of
the date hereof, all prior Agreements between each Fund on behalf of each of the
Portfolios and State Street relating to the custody or recordkeeper of a Fund's
assets.
SECTION 20. NOTICES. Any notice, instruction or other instrument required to be
given hereunder may be delivered in person to the offices of the parties as set
forth herein during normal business hours or delivered prepaid registered mail
or by telex, cable or telecopy to the parties at the following addresses or such
other addresses as may be notified by any party from time to time.
To a Fund: FUND NAME
00 Xxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000-0000
Attention: Xxxxxx Xxxxxxx
Telephone: 000 000-0000
Telecopy: 000-000-0000
To State Street: STATE STREET BANK AND TRUST COMPANY
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attention: Vice President, Custody
Telephone: 000-000-0000
Telecopy: 000-000-0000
Such notice, instruction or other instrument shall be deemed to have been served
in the case of a registered letter at the expiration of five business days after
posting, in the case of cable twenty-four hours after dispatch and, in the case
20
of telex, immediately on dispatch and if delivered outside normal business hours
it shall be deemed to have been received at the next time after delivery when
normal business hours commence and in the case of cable, telex or telecopy on
the business day after the receipt thereof. Evidence that the notice was
properly addressed, stamped and put into the post shall be conclusive evidence
of posting.
SECTION 21. REPRODUCTION OF DOCUMENTS. This Agreement and all schedules,
addenda, exhibits, attachments and amendments hereto may be reproduced by any
photographic, photostatic, microfilm, micro-card, miniature photographic or
other similar process. The parties hereto all/each agree that any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding, whether or not the original is in
existence and whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.
SECTION 22. REMOTE ACCESS SERVICES ADDENDUM. State Street and each Fund agree to
be bound by the terms of the Remote Access Services Letter, incorporated herein
by this reference.
SECTION 23. NO ASSIGNMENT. Neither a Fund nor State Street shall assign any
rights or obligations under this Agreement to any other party without the
written consent to such assignment signed by both the Fund and State Street.
State Street further agrees that its Kansas City location will be primarily
responsible for the performance of the services rendered hereunder unless the
Fund agrees otherwise.
SECTION 24. TRUST NOTICE. If a Fund is a Trust, notice is hereby given that this
Agreement has been executed on behalf of Fund by the undersigned duly authorized
representative of Fund in his/her capacity as such and not individually; and
that the obligations of this Agreement are binding only upon the assets and
property of Fund and not upon any trustee, officer of shareholder of Fund
individually, and, if the Fund is a Massachusetts business trust, that a copy of
Fund's Trust Agreement and all amendments thereto is on file with the Secretary
of State of Massachusetts.
SECTION 25. SHAREHOLDER COMMUNICATIONS ELECTION. SEC Rule 14b-2 requires banks
which hold securities for the account of customers to respond to requests by
issuers of securities for the names, addresses and holdings of beneficial owners
of securities of that issuer held by the bank unless the beneficial owner has
expressly objected to disclosure of this information. In order to comply with
the rule, State Street needs the Fund to indicate whether it authorizes State
Street to provide the Fund's name, address, and share position to requesting
companies whose securities the Fund owns. If a Fund tells Xxxxx Xxxxxx "xx",
Xxxxx Xxxxxx will not provide this information to requesting companies. If a
Fund tells State Street "yes" or does not check either "yes" or "no" below,
State Street is required by the rule to treat the Fund as consenting to
disclosure of this information for all securities owned by the Fund or any funds
or accounts established by the Fund. For each Fund's protection, the Rule
prohibits the requesting company from using the Fund's name and address for any
purpose other than corporate communications. Please indicate below whether each
Fund consents or objects by checking one of the alternatives below.
YES [ ] State Street is authorized to release the Fund's name, address, and
share positions.
NO [X] State Street is not authorized to release the Fund's name, address, and
share positions.
21
SECTION 26. LIABILITY OF PORTFOLIOS SEVERAL AND NOT JOINT. The obligations of a
Portfolio under this Agreement are enforceable solely against that Portfolio and
its assets
IN WITNESS WHEREOF, each of the parties has caused this instrument to be
executed in its name and behalf by its duly authorized representative and its
seal to be hereunder affixed as of November 1, 2001.
ON BEHALF OF EACH OF THE LEGAL ENTITIES
LISTED ON EXHIBIT A, ATTACHED HERETO SIGNATURE ATTESTED TO BY:
By: /s/ XXXX X. XXXXXXXX By: /s/ XXXXXX X. XXXXXXX
Name: Xxxx X. Xxxxxxxx Name: Xxxxxx X. Xxxxxxx
Title: Vice President Title: Vice President
STATE STREET BANK AND TRUST COMPANY SIGNATURE ATTESTED TO BY:
By: /s/ W. XXXXXX XXX By: /s/ XXXXXXX XXXXXXXX
Name: W. Xxxxxx Xxx Name: Xxxxxxx Xxxxxxxx
Title: Senior Vice President Title: Senior Vice President
22
EXHIBIT 99(g)
EXHIBIT A (amended as of December 30, 2004)
TYPE OF
ENTITY AND SERIES ENTITY JURISDICTION
Lord Xxxxxx Developing Growth Fund, Inc. Corporation Maryland
Lord Xxxxxx Affiliated Fund, Inc. Corporation Maryland
Lord Xxxxxx Bond-Debenture Fund, Inc. Corporation Maryland
Lord Xxxxxx Mid-Cap Value Fund, Inc. Corporation Maryland
Lord Xxxxxx Large-Cap Growth Fund Business Trust Delaware
Lord Xxxxxx Blend Trust Business Trust Delaware
Lord Xxxxxx Small-Cap Blend Fund
Lord Xxxxxx Securities Trust Business Trust Delaware
Alpha Series
Lord Xxxxxx All Value Fund
Lord Xxxxxx International Opportunities Fund
Lord Xxxxxx Micro-Cap Growth Fund
Lord Xxxxxx Micro-Cap Value Fund
Lord Xxxxxx Large-Cap Value Fund
Lord Xxxxxx International Core Equity Fund
Lord Xxxxxx Research Fund, Inc. Corporation Maryland
Lord Xxxxxx Growth Opportunities Fund
Lord Xxxxxx Large-Cap Core Fund
Small-Cap Value Series
Lord Xxxxxx America's Value Fund
Lord Xxxxxx Investment Trust Business Trust Delaware
Balanced Series
Lord Xxxxxx Core Fixed Income Fund
Lord Xxxxxx High Yield Fund
Lord Xxxxxx Limited Duration U.S. Government &
Government Sponsored Enterprises Fund
Lord Xxxxxx Total Return Fund
Lord Xxxxxx U.S. Government & Government Sponsored
Enterprises Fund
Lord Xxxxxx Convertible Fund
Lord Xxxxxx Series Fund, Inc. Corporation Maryland
All Value Portfolio
America's Value Portfolio
Bond-Debenture Portfolio
Growth and Income Portfolio
Growth Opportunities Portfolio
International Portfolio
Mid-Cap Value Portfolio
Lord Xxxxxx Global Fund, Inc. Corporation Maryland
Equity Series
Income Series
Lord Xxxxxx Tax-Free Income Fund, Inc. Corporation Maryland
Lord Xxxxxx California Tax-Free Income Fund
Lord Xxxxxx Connecticut Tax-Free Income Fund
Lord Xxxxxx Hawaii Tax-Free Income Fund
Lord Xxxxxx Minnesota Tax-Free Income Fund
Lord Xxxxxx Missouri Tax-Free Income Fund
Lord Xxxxxx National Tax-Free Income Fund
Lord Xxxxxx New Jersey Tax-Free Income Fund
Lord Xxxxxx New York Tax-Free Income Fund
Lord Xxxxxx Texas Tax-Free Income Fund
Lord Xxxxxx Washington Tax-Free Income Fund
23
Lord Xxxxxx Municipal Income Trust Business Trust Delaware
Florida Series
Georgia Series
Michigan Series
Pennsylvania Series
Lord Xxxxxx Insured Intermediate Tax-Free Fund
Lord Xxxxxx High Yield Municipal Bond Fund
Lord Xxxxxx U.S. Government & Government Sponsored Enterprises Corporation Maryland
Money Market Fund, Inc.
24
EXHIBIT B
FEE SCHEDULE
25
REMOTE ACCESS SERVICES ADDENDUM
To Custody and Investment Accounting Agreement by and between
State Street Bank and Trust Company and the Lord, Xxxxxx Fund Family
dated November 1, 0000
Xxxxx Xxxxxx has developed proprietary accounting and other systems, and
has acquired licenses for other such systems, which it utilizes in conjunction
with the services we provide to you (the "Systems"). In this regard, we maintain
certain information in databases under our control and ownership that we make
available on a remote basis to our customers (the "Remote Access Services").
The Services. This addendum shall govern use of all Systems that State
Street may from time to time agree to provide you, the Customer, and your
designated investment advisors, consultants or other third parties authorized by
State Street who agree to abide by the terms of this Addendum ("Authorized
Designees") in order to provide Remote Access Services for the purpose of
obtaining and analyzing reports and information.
Security Procedures. You agree to comply, and to cause your Authorized
Designees to comply, with remote access operating standards and procedures and
with user identification or other password control requirements and other
security procedures as may be issued from time to time by State Street for use
of the Systems and access to the Remote Access Services. You agree to advise
State Street immediately in the event that you learn or have reason to believe
that any person to whom you have given access to the Systems or the Remote
Access Services has violated or intends to violate the terms of this Addendum
and you will cooperate with State Street in seeking injunctive or other
equitable relief. You agree to discontinue use of the Systems and Remote Access
Services, if requested, for any security reasons cited by State Street.
Fees. Fees and charges (if any) for the use of the Systems and the Remote Access
Services and related payment terms shall be as set forth in the fee schedule in
effect from time to time between the parties (the "Fee Schedule"). You shall be
responsible for any tariffs, duties or taxes imposed or levied by any government
or governmental agency by reason of the transactions contemplated by this
Agreement, including, without limitation, federal, state and local taxes, use,
value added and personal property taxes (other than income, franchise or similar
taxes which may be imposed or assessed against State Street). Any claimed
exemption from such tariffs, duties or taxes shall be supported by proper
documentary evidence delivered to State Street.
Proprietary Information/Injunctive Relief. The Systems and Remote Access
Services and the databases, computer programs, screen formats, report formats,
interactive design techniques, formulae, processes, systems, software, know-how,
algorithms, programs, training aids, printed materials, methods, books, records,
files, documentation and other information made available to you by State Street
as part of the Remote Access Services and through the use of the Systems and all
copyrights, patents, trade secrets and other proprietary rights of State Street
and its relevant licensors related thereto are the exclusive, valuable and
confidential property of State Street and its relevant licensors, as applicable
(the "Proprietary Information"). You agree on behalf of yourself and your
Authorized Designees to keep the Proprietary Information confidential and to
limit access to your employees and Authorized Designees (under a similar duty of
confidentiality) who require access to the Systems for the purposes intended.
The foregoing shall not apply to Proprietary Information in the public domain or
required by law to be made public.
You agree to use the Remote Access Services only in connection with the
proper purposes of this Addendum. You will not, and will cause your employees
and Authorized Designees not to, (i) permit any third party to use the Systems
or the Remote Access Services, (ii) sell, rent, license or otherwise use the
Systems or the Remote Access Services in the operation of a service bureau or
for any purpose other than as expressly authorized under this Addendum, (iii)
use the Systems or the Remote Access Services for any fund, trust or other
investment vehicle without the prior written consent of State Street, or (iv)
26
allow or cause any information transmitted from State Street's databases,
including data from third party sources, available through use of the Systems or
the Remote Access Services, to be redistributed or retransmitted for other than
use for or on behalf of yourself, as our Customer.
You agree that neither you nor your Authorized Designees will modify the
Systems in any way, enhance or otherwise create derivative works based upon the
Systems, nor will you or your Authorized Designees reverse engineer, decompile
or otherwise attempt to secure the source code for all or any part of the
Systems.
You acknowledge that the disclosure of any Proprietary Information, or of
any information which at law or equity ought to remain confidential, will
immediately give rise to continuing irreparable injury inadequately compensable
in damages at law, and that State Street and its licensor, if applicable, shall
be entitled to obtain immediate injunctive relief against the breach or
threatened breach of any of the foregoing undertakings, in addition to any other
legal remedies which may be available.
LIMITED WARRANTIES. State Street represents and warrants that it has the
right to grant access to the Systems and to provide the Remote Access Services
contemplated herein. Because of the nature of computer information technology,
including but not limited to the use of the Internet, and the necessity of
relying upon third-party sources, and data and pricing information obtained from
third parties, the Systems and Remote Access Services are provided "AS IS", and
you and your Authorized Designees shall be solely responsible for the investment
decisions, results obtained, regulatory reports and statements produced using
the Remote Access Services. State Street and its relevant licensors will not be
liable to you or your Authorized Designees for any direct or indirect, special,
incidental, punitive or consequential damages arising out of or in any way
connected with the Systems or the Remote Access Services, nor shall either party
be responsible for delays or nonperformance under this Addendum arising out of
any cause or event beyond such party's control.
EXCEPT AS EXPRESSLY SET FORTH IN THIS ADDENDUM, STATE STREET FOR ITSELF AND
ITS RELEVANT LICENSORS EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
CONCERNING THE SYSTEM AND THE SERVICES TO BE RENDERED HEREUNDER, WHETHER
EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF
MERCHANTIBILITY OR FITNESS FOR A PARTICULAR PURPOSE.
INFRINGEMENT. State Street will defend or, at our option, settle any claim
or action brought against you to the extent that it is based upon an assertion
that access to any proprietary System developed and owned by State Street or use
of the Remote Access Services through any such proprietary System by you under
this Addendum constitutes direct infringement of any United States patent or
copyright or misappropriation of a trade secret, provided that you notify State
Street promptly in writing of any such claim or proceeding and cooperate with
State Street in the defense of such claim or proceeding. Should any such
proprietary System or the Remote Access Services accessed thereby or any part
thereof become, or in State Street's opinion be likely to become, the subject of
a claim of infringement or the like under the patent or copyright or trade
secret laws of the United States, State Street shall have the right, at State
Street's sole option, to (i) procure for you the right to continue using such
System or Remote Access Services, (ii) replace or modify such System or Remote
Access Services so that the System or the Remote Access Services becomes
noninfringing, or (iii) terminate access to the Remote Access Services without
further obligation.
TERMINATION. Either party may terminate access to the Remote Access
27
Services (i) for any reason by giving the other party at least one-hundred and
eighty (180) days' prior written notice in the case of notice of termination by
State Street to you or thirty (30) days' notice in the case of notice from you
to State Street of termination, or (ii) immediately for failure of the other
party to comply with any material term and condition of the Addendum by giving
the other party written notice of termination. In the event of termination, you
will return to State Street all Proprietary Information in your possession or in
the possession of your Authorized Designees. The foregoing provisions with
respect to confidentiality and infringement will survive termination for a
period of three (3) years.
MISCELLANEOUS. Except as provided in the next sentence, this Addendum
constitutes our entire understanding with respect to access to the Systems and
the Remote Access Services. If any State Street custody, accounting or other
services agreement with you contains terms and conditions relating to computer
systems or data access, this Addendum shall constitute an amendment and
supplement to them, and in the event of any inconsistency the provisions
providing the greatest benefit to State Street shall control. This Addendum
cannot be modified or altered except in a writing duly executed by both of us
and shall be governed by and construed in accordance with the laws of the
Commonwealth of
Massachusetts.
00
XXXXX XXXXXX
SCHEDULE A
GLOBAL CUSTODY NETWORK
SUBCUSTODIANS AND NON-MANDATORY DEPOSITORIES
Country Subcustodian Non-Mandatory
Depositories
Argentina Citibank, N.A. --
Australia Westpac Banking Corporation --
Austria Erste Bank der Oesterreichischen --
Sparkassen AG
Bahrain British Bank of the Middle East --
(as delegate of The Hongkong and
Shanghai Banking Corporation Limited)
Bangladesh Standard Chartered Bank --
Belgium Generale de Banque --
Bermuda The Bank of Bermuda Limited --
Bolivia Banco Boliviano Americano S.A. --
Botswana Barclays Bank of Botswana Limited --
Brazil Citibank, N.A. --
Bulgaria ING Bank N.V. --
Canada State Street Trust Company Canada --
Chile Citibank, N.A. Deposito Central
de Valores S.A.
People's Republic The Hongkong and Shanghai --
of China Banking Corporation Limited,
Shanghai and Shenzhen branches
Colombia Cititrust Colombia S.A. --
Sociedad Fiduciaria
Costa Rica Banco BCT S.A. --
Croatia Privredna Banka Zagreb d.d --
Cyprus The Cyprus Popular Bank Ltd. --
Czech Republic Ceskoslovenska Obchodni --
Banka, A.S.
Denmark Den Danske Bank --
Ecuador Citibank, N.A. --
Egypt National Bank of Egypt --
Estonia Hansabank --
Finland Xxxxxx Bank Limited --
France Banque Paribas --
Germany Dresdner Bank AG --
00
Xxxxx Xxxxxxxx Xxxx xx Xxxxx Xxxxxxx --
Xxxxxx National Bank of Greece S.A. The Bank of Greece,
System for Monitoring
Transactions in
Securities in Book-
Entry Form
Hong Kong Standard Chartered Bank --
Hungary Citibank Budapest Rt. --
Iceland Icebank Ltd.
India Deutsche Bank AG --
The Hongkong and Shanghai
Banking Corporation Limited
Indonesia Standard Chartered Bank --
Ireland Bank of Ireland --
Israel Bank Hapoalim B.M. --
Italy Banque Paribas --
Ivory Coast Societe Generale de Banques --
en Cote d'Ivoire
Jamaica Scotiabank Jamaica Trust and Merchant --
Bank Ltd.
Japan The Fuji Bank, Limited Japan Securities
Depository Center
Sumitomo Bank, Ltd.
Jordan British Bank of the Middle East --
(as delegate of The Hongkong and
Shanghai Banking Corporation Limited)
Kenya Barclays Bank of Kenya Limited --
30
Republic of Korea The Hongkong and Shanghai Banking
Corporation Limited
Latvia JSC Hansabank-Latvija --
Lebanon British Bank of the Middle East
(as delegate of The Hongkong and
Shanghai Banking Corporation Limited)
Lithuania Vilniaus Bankas AB --
Malaysia Standard Chartered Bank --
Malaysia Berhad
Mauritius The Hongkong and Shanghai --
Banking Corporation Limited
Mexico Citibank Mexico, S.A. --
Morocco Banque Commerciale du Maroc --
Namibia (via) Standard Bank of South Africa -
The Netherlands MeesPierson N.V. --
New Zealand ANZ Banking Group --
(New Zealand) Limited
Norway Christiania Bank og --
Kreditkasse
Oman British Bank of the Middle East --
(as delegate of The Hongkong and
Shanghai Banking Corporation Limited)
Pakistan Deutsche Bank AG --
Peru Citibank, N.A. --
Philippines Standard Chartered Bank --
Poland Citibank (Poland) S.A. --
Bank Polska Kasa Opieki S.A.
31
Portugal Banco Comercial Portugus --
Romania ING Bank N.V. --
Russia Credit Suisse First Boston AO, Moscow --
(as delegate of Credit Suisse
First Boston, Zurich)
Singapore The Development Bank --
of Singapore Limited
Slovak Republic Ceskoslovenska Obchodni Banka, A.S. --
Slovenia Bank Austria d.d. Ljubljana --
South Africa Standard Bank of South Africa Limited --
Spain Banco Santander, S.A. --
Sri Lanka The Hongkong and Shanghai --
Banking Corporation Limited
Swaziland Standard Bank Swaziland Limited --
Sweden Skandinaviska Enskilda Banken --
Switzerland UBS AG --
Taiwan - R.O.C. Central Trust of China --
Thailand Standard Chartered Bank --
Trinidad & Tobago Republic Bank Limited --
Tunisia Banque Internationale Arabe de Tunisie --
Turkey Citibank, N.A. --
Ottoman Bank
Ukraine ING Bank, Ukraine --
00
Xxxxxx Xxxxxxx Xxxxx Xxxxxx Bank and Trust Company, --
London Branch
Uruguay Citibank, N.A. --
Venezuela Citibank, N.A. --
Zambia Barclays Bank of Zambia Limited --
Zimbabwe Barclays Bank of Zimbabwe Limited --
Euroclear (The Euroclear System)/State Street London Limited
Cedel, S.A. (Cedel Bank, socit anonyme)/State Street London Limited
INTERSETTLE (for EASDAQ Securities)
00
XXXXX XXXXXX
SCHEDULE B
GLOBAL CUSTODY NETWORK
MANDATORY* DEPOSITORIES
Country Mandatory Depositories
Argentina Caja de Valores S.A.
Australia Austraclear Limited
Reserve Bank Information and Transfer System
Austria Oesterreichische Kontrollbank AG
(Wertpapiersammelbank Division)
Belgium Caisse Interprofessionnelle de Depot et
de Virement de Titres S.A.
Banque Nationale de Belgique
Brazil Companhia Brasileira de Liquidacao e
Custodia (CBLC)
Bolsa de Valores de Rio de Janeiro
All SSB clients presently use CBLC
34
Central de Custodia e de Liquidacao Financeira
de Titulos
Bulgaria Central Depository AD
Bulgarian National Bank
Canada The Canadian Depository for Securities Limited
People's Republic Shanghai Securities Central Clearing and
of China Registration Corporation
Shenzhen Securities Central Clearing Co., Ltd.
Costa Rica Central de Valores S.A. (CEVAL)
Croatia Ministry of Finance
National Bank of Croatia
Czech Republic Stredisko cennych papiru
Czech National Bank
Denmark Vaerdipapircentralen (the Danish Securities Center)
Egypt Misr Company for Clearing, Settlement,
and Central Depository
Estonia Eesti Vaartpaberite Keskdepositoorium
Finland The Finnish Central Securities Depository
France Societe Interprofessionnelle pour la Compensation des
Valeurs Mobilires (SICOVAM)
Germany Deutsche Borse Clearing AG
Greece The Central Securities Depository
(Apothetirion Titlon AE)
Hong Kong The Central Clearing and Settlement System
Central Money Markets Unit
Hungary The Central Depository and Clearing
35
House (Budapest) Ltd. (KELER)
[Mandatory for Gov't Bonds only;
SSB does not use for other securities]
India The National Securities Depository Limited
Indonesia Bank Indonesia
Ireland Central Bank of Ireland
Securities Settlement Office
Israel The Tel Aviv Stock Exchange Clearing House Ltd.
Bank of Israel
Italy Monte Titoli S.p.A.
Banca d'Italia
Ivory Coast Depositaire Central - Banque de Reglement
Jamaica The Jamaican Central Securities Depository
Japan Bank of Japan Net System
Kenya Central Bank of Kenya
Republic of Korea Korea Securities Depository Corporation
Latvia The Latvian Central Depository
Lebanon The Custodian and Clearing Center of
Financial Instruments for Lebanon
and the Middle East (MIDCLEAR) X.X.X.
The Central Bank of Lebanon
Lithuania The Central Securities Depository of Lithuania
Malaysia The Malaysian Central Depository Sdn. Bhd.
Bank Negara Malaysia,
Scripless Securities Trading and Safekeeping System
36
Mauritius The Central Depository & Settlement Co. Ltd.
Mexico S.D. INDEVAL, S.A. de C.V.
(Instituto para el Deposito de Valores)
Morocco Maroclear
The Netherlands Nederlands Centraal Instituut voor
Giraal Effectenverkeer B.V. (NECIGEF)
De Nederlandsche Bank N.V.
New Zealand New Zealand Central Securities Depository Limited
Norway Verdipapirsentralen (the Norwegian
Registry of Securities)
Oman Muscat Securities Market
Pakistan Central Depository Company of Pakistan Limited
Peru Caja de Valores y Liquidaciones S.A. (CAVALI)
Philippines The Philippines Central Depository, Inc.
The Registry of Scripless Securities
(XXXX) of the Bureau of the Treasury
Poland The National Depository of Securities
(Krajowy Depozyt Papierow Wartos'ciowych)
Central Treasury Bills Registrar
Portugal Central de Valores Mobiliarios (Central)
Romania National Securities Clearing, Settlement and
Depository Co.
Bucharest Stock Exchange Registry Division
Singapore The Central Depository (Pte)
Limited
Monetary Authority of Singapore
Xxxxxx Xxxxxxxx Xxxxxxxxx Xxxxxxx Xxxxxxxx
00
National Bank of Slovakia
Slovenia Klirinsko Depotna Xxxxxx x.x.
South Africa The Central Depository Limited
Spain Servicio de Compensacion y
Liquidacion de Valores, S.A.
Banco de Espana,
Central de Anotaciones en Cuenta
Sri Lanka Central Depository System (Pvt) Limited
Sweden Vardepapperscentralen AB
(the Swedish Central Securities Depository)
Switzerland Schweizerische Effekten - Giro AG
Taiwan - R.O.C. The Taiwan Securities Central
Depository Co., Ltd.
Thailand Thailand Securities Depository Company Limited
Tunisia Societe Tunisienne Interprofessionelle de
Compensation et de Depot de Valeurs Mobilieres
Central Bank of Tunisia
Tunisian Treasury
Turkey Takas ve Saklama Bankasi A.S. (TAKASBANK)
Central Bank of Turkey
Ukraine The National Bank of Ukraine
United Kingdom The Bank of England,
The Central Gilts Office and
The Central Moneymarkets Office
Uruguay Central Bank of Uruguay
Venezuela Central Bank of Venezuela
Zambia Lusaka Central Depository Limited
Bank of Zambia
* Mandatory depositories include entities for which use is mandatory as a
matter of law or effectively mandatory as a matter of market practice.
38
SCHEDULE C
MARKET INFORMATION
Publication/Type of Information Brief Description
(Frequency)
The Guide to Custody in World Markets An overview of safekeeping and
(annually) settlement practices and procedures
in each market in which State Street
Bank and Trust Company offers
custodial services.
Global Custody Network Review Information relating to the operating
(annually) history and structure of depositories
and subcustodians located in the
markets in which State Street Bank
and Trust Company offers custodial
services, including transnational
depositories.
Global Legal Survey With respect to each market in which
(annually) State Street Bank and Trust Company
offers custodial services, opinions
relating to whether local law
restricts (i) access of a fund's
independent public accountants to
books and records of a Foreign Sub-
Custodian or Foreign Securities
System, (ii) the Fund's ability to
recover in the event of bankruptcy or
insolvency of a Foreign Sub-Custodian
or Foreign Securities System, (iii)
the Fund's ability to recover in the
event of a loss by a Foreign Sub-
Custodian or Foreign Securities
System, and (iv) the ability of a
foreign investor to convert cash and
cash equivalents to U.S. dollars.
Subcustodian Agreements Copies of the subcustodian contracts
(annually) State Street Bank and Trust Company
has entered into with each
subcustodian in the markets in which
State Street Bank and Trust Company
offers subcustody services to its US
mutual fund clients.
39
Network Bulletins (weekly): Developments of interest to investors
in the markets in which State Street
Bank and Trust Company offers
custodial services.
Foreign Custody Advisories (as necessary): With respect to markets in which
State Street Bank and Trust Company
offers custodial services which
exhibit special custody risks,
developments which may impact State
Street's ability to deliver expected
levels of service.
40
[Lord Xxxxxx Letterhead]
December 21, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Research Fund, Inc. ("the Fund"), as a party to the
Custodian
and Investment Accounting Agreement between various Lord Xxxxxx-sponsored mutual
funds and State Street Bank and the Agreement pursuant to Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on December 17, 2001, the Fund filed Articles Supplementary with the
State of Maryland Department of Assessments and Taxation establishing a new
desire to have State Street render services as custodian and recordkeeper to the
Lord Xxxxxx America's Value Fund under the terms of the Agreement; therefore,
the Fund requests that State Street agree, in writing, to provide such services
to the Lord Xxxxxx America's Value Fund a Portfolio under the terms of the
Agreement.
It is currently anticipated that the registration statement for the Lord
Xxxxxx America's Value Fund will become effective on December 27, 2001.
Accordingly, we appreciate your prompt attention to this matter. Please indicate
State Street's acceptance by signing below.
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/Xxxxx Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
[Lord Xxxxxx Letterhead]
July 22, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Tax-Free Income Trust, a
Massachusetts business trust
("
Massachusetts Trust"), as a party to the
Custodian and Investment Accounting
Agreement between various Lord Xxxxxx-sponsored mutual funds and State Street
Bank and Trust Company ("State Street") dated November 1, 2001 (the
"Agreement"), requests an interpretation to the Agreement pursuant to Section
16. As of July 22, 2002, the Massachusetts Trust has reorganized as a Delaware
business trust under an Agreement and Plan of Reorganization.
The new trust's legal name is the Lord Xxxxxx Tax-Free Income Trust
("Delaware Trust"). It is the Delaware Trust's desire to have State Street
render services as custodian and recordkeeper to the Delaware Trust under the
terms of the Agreement; therefore, the Delaware Trust requests that State Street
agree in writing, to provide such services to the Delaware Trust thereby making
the Delaware Trust a Fund under the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each Fund that participates in the Agreement as of the close
of business on July 22, 2002 (the closing date of the reorganization).
We appreciate your prompt attention to the matter. Please indicate State
Street's acceptance by signing below.
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/ Xxxxx Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
[Lord Xxxxxx Letterhead]
April 11, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Series Fund, Inc. (the "Fund"), as a party to the
Custodian
and Investment Accounting Agreement between various Lord Xxxxxx-sponsored mutual
funds and State Street Bank and Trust Company ("State Street") dated November 1,
2001 (the "Agreement"), requests an amendment to the Agreement pursuant to
Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on April 3, 2003, the Fund filed Articles Supplementary with the
State of Maryland Department of Assessments and Taxation establishing three new
classes of shares of the Fund, (the "Portfolios") the legal names of which are
as follows: All Value Portfolio, America's Value Portfolio and Growth
Opportunities Portfolio. It is the Fund's desire to have State Street render
services as custodian and recordkeeper to the Portfolios under the terms of the
Agreement; therefore, the Fund requests that State Street agree, in writing, to
provide such services to the Portfolios thereby making each of the Portfolios a
Portfolio under the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on April 30, 2003.
It is currently anticipated that the registration statement for the
Portfolios will become effective on April 30, 2003. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Series Fund, Inc.
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/ Xxxxxx Xxxxxxxxx
Xx. Vice President, Custody
State Street Bank and Trust Company
Enclosures
[Lord Xxxxxx Letterhead]
June 30, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Investment Trust (the "Fund"), as a party to the
Custodian
and Investment Accounting Agreement between various Lord Xxxxxx-sponsored mutual
funds and State Street Bank and Trust Company ("State Street") dated November 1,
2001 (the "Agreement"), requests an amendment to the Agreement pursuant to
Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on April 22, 2003, the Fund's Board executed an Amendment to the
Declaration and Agreement of Trust establishing a new Portfolio of the Fund,
(the "Portfolio") the legal name of which is as follows: Lord Xxxxxx Convertible
Fund. It is the Fund's desire to have State Street render services as custodian
and recordkeeper to the Portfolio under the terms of the Agreement; therefore,
the Fund requests that State Street agree, in writing, to provide such services
to the Portfolio thereby making the Portfolio a Portfolio under the terms of the
Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on June 30, 2003.
It is currently anticipated that the registration statement for the
Portfolio will become effective on June 30, 2003. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Investment Trust
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/ Xxxxx Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
Enclosures
[Lord Xxxxxx Letterhead]
June 30, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Securities Trust (the "Fund"), as a party to the
Custodian
and Investment Accounting Agreement between various Lord Xxxxxx-sponsored mutual
funds and State Street Bank and Trust Company ("State Street") dated November 1,
2001 (the "Agreement"), requests an amendment to the Agreement pursuant to
Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on April 22, 2003, the Fund's Board executed an Amendment to the
Declaration and Agreement of Trust establishing a new Portfolio of the Fund,
(the "Portfolio") the legal name of which is as follows: Lord Xxxxxx Large-Cap
Value Fund. It is the Fund's desire to have State Street render services as
custodian and recordkeeper to the Portfolio under the terms of the Agreement;
therefore, the Fund requests that State Street agree, in writing, to provide
such services to the Portfolio thereby making the Portfolio a Portfolio under
the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on June 30, 2003.
It is currently anticipated that the registration statement for the
Portfolio will become effective on June 30, 2003. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Securities Trust
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
Xxxxx Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
Enclosures
[Lord Xxxxxx Letterhead]
June 30, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Tax-Free Income Trust (the "Fund"), as a party to the
Custodian and Investment Accounting Agreement between various Lord
Xxxxxx-sponsored mutual funds and State Street Bank and Trust Company ("State
Street") dated November 1, 2001 (the "Agreement"), requests an amendment to the
Agreement pursuant to Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on April 22, 2003, the Fund's Board executed an Amendment to the
Declaration and Agreement of Trust establishing a new Portfolio of the Fund,
(the "Portfolio") the legal name of which is as follows: Lord Xxxxxx Insured
Intermediate Tax-Free Fund. It is the Fund's desire to have State Street render
services as custodian and recordkeeper to the Portfolio under the terms of the
Agreement; therefore, the Fund requests that State Street agree, in writing, to
provide such services to the Portfolio thereby making the Portfolio a Portfolio
under the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on June 30, 2003.
It is currently anticipated that the registration statement for the
Portfolio will become effective on June 30, 2003. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Tax-Free Income Trust
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
Xxxxx Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
Enclosures
[LORD, XXXXXX Letterhead]
December 4, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Securities Trust (the "Fund"), as a party to the
Custodian
and Investment Accounting Agreement between various Lord Xxxxxx-sponsored mutual
funds and State Street Bank and Trust Company ("State Street") dated November 1,
2001 (the "Agreement"), requests an amendment to the Agreement pursuant to
Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeping under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on October 23, 2003, the Fund's Board executed an Amendment to the
Declaration and Agreement of Trust establishing a new Portfolio of the Fund,
(the "Portfolio") the legal name of which is as follows: Lord Xxxxxx
International Core Equity Fund. It is the Fund's desire to have State Street
render services as custodian and recordkeeper to the Portfolio under the terms
of the Agreement; therefore, the Fund requests that State Street agree, in
writing, to provide such services to the Portfolio thereby making the Portfolio
a Portfolio under the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on December 15, 2003.
It is currently anticipated that the registration statement for the
Portfolio will become effective on December 15, 2003. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Securities Trust
/s/ Xxxx X. Xxxxxxx
--------------------------------
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/ Xxxxx X. Xxxxxxx
Vice President, Custody
State Street Bank and Trust Company
Enclosures
[Lord Xxxxxx Letterhead]
December 30, 0000
Xxxxx Xxxxxx Xxxx and Trust Company
000 Xxxxxxxxxxxx Xxxxxx
Xxxxxx Xxxx, XX 00000
Attn: Vice President, Custody
Dear Sir or Madam:
Lord Xxxxxx Municipal Income Trust, (formerly known as Lord Xxxxxx
Tax-Free Income Trust (the "Fund")), as a party to the
Custodian and Investment
Accounting Agreement between various Lord Xxxxxx-sponsored mutual funds and
State Street Bank and Trust Company ("State Street") dated November 1, 2001 (the
"Agreement"), requests an amendment to the Agreement pursuant to Section 17.
Section 17 of the Agreement provides that, "in the event that a Fund
establishes one or more series with respect to which it desires to have State
Street render services as custodian and recordkeeper under the terms [of the
Agreement], it shall so notify State Street in writing, and if State Street
agrees in writing to provide such services, such series of Shares shall become a
Portfolio [under the terms of the Agreement]." This letter is to notify State
Street that on November 19, 2004, the Fund's Board executed an Amendment to the
Declaration and Agreement of Trust establishing a new Portfolio of the Fund,
(the "Portfolio") the legal name of which is as follows: Lord Xxxxxx High Yield
Municipal Bond Fund. It is the Fund's desire to have State Street render
services as custodian and recordkeeper to the Portfolio under the terms of the
Agreement; therefore, the Fund requests that State Street agree, in writing, to
provide such services to the Portfolio thereby making the Portfolio a Portfolio
under the terms of the Agreement.
Attached is an Amended Exhibit A to the Agreement that shows the entity
names and series of each fund that participates in the Agreement as of the close
of business on December 30, 2004.
It is currently anticipated that the registration statement for the
Portfolio will become effective on December 30, 2004. Accordingly, we appreciate
your prompt attention to this matter. Please indicate State Street's acceptance
by signing below.
Lord Xxxxxx Municipal Income Trust
/s/ Xxxx X. Xxxxxxx
-------------------
Xxxx X. Xxxxxxx
Vice President and Secretary
Accepted:
/s/ Xxxxx Xxxxxx
Vice President, Custody
State Street Bank and Trust Company
Enclosures
