ACCOUNTING SERVICES AGREEMENT
WHEREAS, the Ehrenkrantz Fund (Fund) desires to appoint Ameritor
Financial Corporation (Company) as its Accounting Services Agent to maintain
and keep current the books, accounts, records, journals or other records of
original entry relating to the business of the Fund as set forth in Section
2 of this Agreement and to perform certain other functions in connection
with such Accounts and Records: and
WHEREAS, the Company is willing to perform such functions upon the terms
and conditions set forth below: and
WHEREAS, the Fund will cause to be provided certain information to the
Company as set forth below;
NOW, THEREFORE, in consideration of the premises and mutual covenants
herein contained, the parties hereto, intending to be legally bound, do
hereby agree as follows:
Section 1. Scope of the Engagement
The Fund shall promptly turn over to the Company or request that its
previous accounting services agent turn over to the Company originals or
copies of any Accounts and Records previously maintained by or for it.
The Fund authorizes the Company to rely on Accounts and Records turned
over to it, and information provided to it, by the Fund or its agents.
The Company shall make reasonable efforts to isolate and correct any
inaccuracies, omissions, discrepancies, or other deficiencies in the Accounts
and Records delivered to the Company. The Fund shall provide the Company
with such assistance as it may reasonably request in connection with its
efforts to correct such matters.
Section 2. Identification of Services
Upon receipt of the necessary information from the Fund or its agents,
the Company shall maintain and keep current the following Accounts and
Records relating to the business of the Fund, in such form as may be mutually
agreed to between the Fund and the Company, and as may be required by the
Investment Company Act of 1940 (the "Act"):
Trial Balance including
(1) Cash Receipts
(2) Cash Disbursements
(3) Dividends Paid
(4) Daily Expense Accruals
(5) Daily Interest Accruals
(6) Daily Trial Balance
(7) Portfolio Interest Receivable and Income
(8) Assets, Liabilities, and Capital
(9) Shares outstanding
(10) Net Assets
(11) NAV
Listing of Portfolio Holdings and showing cost, market value and percentage
of portfolio comprised of each security
When requested or for auditor
Purchase and Sales Journals - Portfolio Securities
Subscription and Redemption Journals
Security Ledgers - Transaction Report and Tax Lot Report
Broker Ledger - Commission Report
Fund management will monitor the expense accrual procedures for accuracy
and adequacy based on outstanding liabilities monthly, and promptly
communicate to the Company any adjustment needed, provided, however, that
this will not eliminate the responsibility of the Company to establish and
concurrently monitor such accounts.
Section 3. Pricing
The Company shall perform ministerial calculations necessary to
calculate the Fund's net asset value daily, in accordance with the Fund's
current prospectus and utilizing the information described in the Section.
Portfolio investments for which market quotations are available to the
Company by use of an automated financial service (a "Pricing Service") shall
be valued based on the closing prices of the portfolio investment report by
such Pricing Service.
Section 4. Reconciliation with Fund's Custodian
At the end of each month, the Fund shall cause its Custodian Bank to
forward to the Company a monthly statement of cash and portfolio transactions,
which will be reconciled with the Company's Accounts and Records maintained
for the Fund.
Section 5. Reports to Fund
The Company shall promptly supply daily and periodic reports to the Fund
as requested by the Fund and agreed upon by the Company. See attached
exhibits.
Section 6. Information from Fund
The Fund, directly or by instructions to its agents (including without
limitations its Transfer Agent and its Custodian), shall provide to the
Company as of the close of each Business Day (or on such other schedule as
the Fund determines is necessary), all data and information necessary for
the Company to maintain the Fund's Accounts and Records. It is agreed that
the information provided by the Fund or its agents shall include reports of
share purchases, redemptions or repurchases, and total shares outstanding at
the end of each business day after the determination of the net asset value.
Section 7. Ownership of and Access to Fund Records
It is agreed that the Accounts and Records maintained by the Company
for the Fund are the property of the Fund.
The Company shall assist the Fund's independent auditors or, upon lawful
demand, an authorized regulatory body, in any authorized inspection or review
of the Fund's Accounts and Records.
The Company shall be reimbursed for all expenses and employee time
required to assist with any review of the Fund's Accounts and Records outside
of routine and normal periodic review and audits, which shall include, but
not be limited to, the annual and semi-annual review of the Fund's financial
statements by the Fund's accountants, and routine examinations from
regulators having jurisdiction over the Fund. Upon receipt from the Fund,
or its agents, of the necessary information, the Company shall supply data
to the Fund's accountants to allow them to complete any necessary tax
returns, questionnaires, periodic reports to shareholders and such other
reports and information requests as the Fund and the company shall agree
upon from time to time.
Section 8. Indemnification
The Company, its directors, officer, employees, shareholders and agents
shall not be liable for nay error or judgment or mistake of law or for any
loss suffered by the Fund in connection with the performance of this
Agreement, except losses resulting from willful malfeasance, bad faith, or
negligence on the part of the Company, or neglect by the Company in the
performance of its obligations and duties under this Agreement.
Section 9. Holidays
Nothing contained in this Agreement is intended to or shall require the
Company, in any capacity hereunder, to perform any functions or duties on any
holiday, day of special observance or any other day on which the Custodian
or the New York Stock Exchange is closed.
Section 10. Termination
Either Party hereto may give written notice to the other party (the
"Termination Notice") of the termination of this Agreement, which shall be
not less than sixty (60) days after the date of the giving of the notice
unless otherwise agreed by the parties hereto in writing.
Upon the Termination date, subject to payment to the Company by the Fund
of all amounts due to the Company as of said date, the Company shall make
available to the Fund or its designated record-keeping successor, all of the
records of the Fund maintained under the Agreement which are then the
Company's possession.
The Company will be responsible for the account services that will be
administered by Commonwealth Fund Services.
IN WITNESS WHEREOF, the parties have caused this Agreement to be signed
by their duly authorized officers and their corporate seals hereunto duly
affixed and attested, as of the day and year first above written.
AMERITOR FINANCIAL CORPORATION
Attest:
___________________ /S/ Xxxxxx Xxxxxx
_________________________________
NAME: Xxxxxx Xxxxxx
TITLE: President
DATE: 2-15-05
Attest:
EHRENKRANTZ FUND
/s/
By:_______________________________
NAME:
TITLE:
DATE:
