Exhibit C
MUTUAL FUND CUSTODY AND
SERVICES AGREEMENT
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TABLE OF CONTENTS
SECTION PAGE
DEFINITIONS..................................................................2
ARTICLE I - CUSTODY PROVISIONS...............................................5
1. Appointment of Custodian...............................................5
2. Custody of Cash and Securities.........................................5
3. Settlement of Fund Transactions........................................9
4. Lending of Securities..................................................9
5. Persons Having Access to Assets of the Fund............................9
6. Standard of Care; Limit of Custodial Responsibilities.................10
7. Appointment of Subcustodians..........................................11
8. Overdraft Facility and Security for Payment...........................12
9. Tax Obligations.......................................................12
ARTICLE II - FOREIGN CUSTODY MANAGER SERVICES...............................14
1. Delegation............................................................14
2. Changes to Appendix B.................................................14
3. Reports to Board......................................................14
4. Monitoring System.....................................................14
5. Standard of Care......................................................14
6. Use of Securities Depositories........................................15
ARTICLE III - Information Services..........................................16
1. Risk Analysis........................................................16
2. Monitoring of Securities Depositories................................16
3. Use of Agents........................................................16
4. Exercise of Reasonable Care..........................................16
5. Liabilities and Warranties...........................................16
ARTICLE IV - GENERAL PROVISIONS.............................................17
1. Compensation..........................................................17
2. Insolvency of Foreign Custodians......................................17
3. Liability for Depositories............................................17
4. Damages...............................................................17
5. Indemnification; Liability of the Fund................................17
6. Force Majeure.........................................................17
7. Termination...........................................................18
8. Books and Records.....................................................18
9. Miscellaneous........................................................18
APPENDIX A List of Authorized Persons.....................................21
APPENDIX B Selected Countries..............................................2
APPENDIX C Self Custody Rider..............................................2
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MUTUAL FUND CUSTODY AND
SERVICES AGREEMENT
This AGREEMENT is effective as of May 21, 2001, and is between Dreyfus
Premier Equity Funds, Inc., (the "Fund") a corporation organized under the
laws of the State of Maryland having its principal office and place of
business at 000 Xxxx Xxxxxx, Xxx Xxxx, XX 00000, and MELLON BANK, N.A., (the
"Custodian"), a national banking association with its principal place of
business at Xxx Xxxxxx Xxxx Xxxxxx, Xxxxxxxxxx, Xxxxxxxxxxxx 00000.
W I T N E S S E T H:
WHEREAS, the Fund and the Custodian desire to set forth their agreement
with respect to the custody of the Fund's Securities and cash and the
processing of Securities transactions;
WHEREAS, the Board desires to delegate certain of its responsibilities
for performing the services set forth in paragraphs (c)(1), (c)(2) and (c)(3)
of Rule 17f-5 to the Custodian as a Foreign Custody Manager (as defined in
Rule 17f-5);
WHEREAS, the Custodian agrees to accept such delegation with respect to
Assets, including those held by Foreign Custodians in the Selected Countries;
and
WHEREAS, the Custodian meets the requirements of a Primary Custodian and
agrees to perform the function of a Primary Custodian under Rule 17f-7;
NOW THEREFORE, the Fund and the Custodian agree as follows:
DEFINITIONS
The following words and phrases, unless the context requires otherwise, shall
have the following meanings:
1. "ACT": the Investment Company Act of 1940 and the Rules and
Regulations thereunder, all as amended from time to time.
2. "AGREEMENT": this agreement and any amendments.
3. "ASSETS": any of the Fund's investments, including foreign
currencies and investments for which the primary market is
outside the United States, and such cash and cash equivalents as
are reasonably necessary to effect the Fund's transactions in
such investments.
4. "AUTHORIZED PERSON": any person, whether or not any such person
is an officer or employee of the Fund, duly authorized by the
Board to give Instructions on behalf of the Fund, who is listed
in the Certificate annexed hereto as APPENDIX A or such other
Certificate as may be received by the Custodian from time to time.
5. "BOARD": the Board of Directors (or the body authorized to
exercise authority similar to that of the board of directors of a
corporation) of the Fund.
6. "BOOK-ENTRY SYSTEM": the Federal Reserve/Treasury book-entry
system for United States and federal agency Securities, its
successor or successors and its nominee or nominees.
7. "BUSINESS DAY": each day on which the Fund is required to
determine its net asset value, and any other day on which the
Securities and Exchange Commission may require the Fund to be
open for business.
8. "CERTIFICATE": any notice, instruction or other instrument in
writing, authorized or required by this Agreement to be given to
the Custodian, which is actually received by the Custodian and
signed on behalf of the Fund by an Authorized Person.
9. "COUNTRY RISK": all factors reasonably related to the systemic
risk of holding assets in a particular country including, but not
limited to, such country's financial infrastructure (including
Securities Depositories), prevailing or developing custody and
settlement practices and laws applicable to the safekeeping and
recovery of Assets held in custody.
10. "ELIGIBLE SECURITIES DEPOSITORY": the meaning of the term set
forth in Rule 17f-7(b)(1).
11. "FOREIGN CUSTODIAN": (a) a banking institution or trust company
incorporated or organized under the laws of a country other than
the United States, that is regulated as such by the country's
government or an agency of the country's government; (b) a
majority-owned direct or indirect subsidiary of a U.S. Bank or
bank holding company; or (c) any entity other than a Securities
Depository with respect to which exemptive or no-action relief
has been granted by the Securities and Exchange Commission to
permit it to hold Assets of a registered investment company. For
the avoidance of doubt, the term "Foreign Custodian" shall not
include Euroclear, Clearstream, or any other transnational system
for the central handling of securities or equivalent book-entries
regardless of whether or not such entities or their service
providers are acting in a custodial capacity with respect to
Assets, Securities or other property of the Fund.
12. "INSTRUCTIONS": directions and instructions to the Custodian from
an Authorized Person in writing by facsimile or electronic
transmission subject to the Custodian's practices or any other
method specifically agreed upon, provided that the Custodian may,
in its discretion, accept oral directions and instructions from
an individual it reasonably believes to be an Authorized Person
and may require confirmation in writing.
13. "PRIMARY CUSTODIAN": the meaning set forth in Rule 17f-7(b)(2).
14. "PROSPECTUS": the Fund's current prospectus and statement of
additional information relating to the registration of the Fund's
Shares under the Securities Act of 1933, as amended.
15. "RISK ANALYSIS": the analysis required under Rule
17f-7(a)(1)(i)(A).
16. "RULES 17F-4, 17F-5 AND 17F-7": such Rules as promulgated under
Section 17(f) of the Act, as such rules (and any successor rules
or regulations) may be amended from time to time.
17. "SECURITY" or "SECURITIES": bonds, debentures, notes, stocks,
shares, evidences of indebtedness, options, futures, warrants and
other securities, commodities, interests and investments from
time to time owned by the Fund.
18. "SECURITIES DEPOSITORY": a system for the central handling of
securities as defined in Rule 17f-4.
19. "SELECTED COUNTRIES": the jurisdictions listed on APPENDIX B as
such may be amended from time to time in accordance with Article
II.
20. "SHARES" shares of the Fund, however designated.
21. "TRANSFER AGENT": the person which performs the transfer agent
functions for the Fund.
22. "U.S. BANK": the meaning set forth in Rule 17f-5(a)(7).
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ARTICLE I
CUSTODY PROVISIONS
1. APPOINTMENT OF CUSTODIAN. The Board appoints the Custodian, and the
Custodian accepts such appointment, as custodian of all the Securities and
monies at the time owned by or in the possession of the Fund during the
period of this Agreement.
2. CUSTODY OF CASH AND SECURITIES.
(a) RECEIPT AND HOLDING OF ASSETS. The Fund will deliver or cause
to be delivered to the Custodian all Securities and monies owned
by it at any time during the period of this Agreement. The
Custodian will not be responsible for such Securities and monies
until actually received. The Custodian shall establish and
maintain a separate account for the Fund and shall credit to the
separate account all Securities and monies so received. The
Board specifically authorizes the Custodian to hold Securities,
Assets or other property of the Fund with any domestic
subcustodian, or Securities Depository; and Foreign Custodians or
Eligible Securities Depositories in the Selected Countries as
provided in Article II. Securities and monies of the Fund
deposited in a Securities Depository or Eligible Securities
Depositories will be reflected in an account or accounts which
include only assets held by the Custodian or a Foreign Custodian
for its customers.
(b) DISBURSEMENTS OF CASH AND DELIVERY OF SECURITIES. The Custodian
shall disburse cash or deliver out Securities only for the
purposes listed below. Instructions must specify or evidence the
purpose for which any transaction is to be made and the Fund
shall be solely responsible to assure that Instructions are in
accord with any limitations or restrictions applicable to the
Fund.
(1) In payment for Securities purchased for the Fund, upon receipt of
such Securities in accord with market practice;
(2) In payment of dividends or distributions with respect to Shares;
(3) In payment for Shares which have been redeemed by the Fund;
(4) In payment of taxes;
(5) When Securities are called, redeemed, retired, or otherwise
become payable;
(6) In exchange for or upon conversion into other securities alone or
other securities and cash pursuant to any plan or merger,
consolidation, reorganization, recapitalization or readjustment;
(7) Upon conversion of Securities pursuant to their terms into other
securities;
(8) Upon exercise of subscription, purchase or other similar rights
represented by Securities;
(9) For the payment of interest, management or supervisory fees,
distributions or operating expenses;
(10) In payment of fees and in reimbursement of the expenses and
liabilities of the Custodian attributable to the Fund;
(11) In connection with any borrowings by the Fund or short sales of
securities requiring a pledge of Securities, but only against
receipt of amounts borrowed;
(12) In connection with any loans, but only against receipt of
adequate collateral as specified in Instructions which shall
reflect any restrictions applicable to the Fund;
(13) For the purpose of redeeming Shares of the Fund and the delivery
to, or the crediting to the account of, the Custodian or the
Fund's transfer agent, net amounts payable with respect to such
Shares to be redeemed;
(14) For the purpose of redeeming in kind Shares of the Fund against
delivery to the Custodian or the Transfer Agent of such Shares to
be so redeemed;
(15) For delivery in accordance with the provisions of any agreement
among the Fund, the Custodian and a broker-dealer registered
under the Securities Exchange Act of 1934 (the "Exchange Act")
and a member of The National Association of Securities Dealers,
Inc. ("NASD"), relating to compliance with the rules of The
Options Clearing Corporation and of any registered national
securities exchange, or of any similar organization or
organizations, regarding escrow or other arrangements in
connection with transactions by the Fund. The Custodian will act
only in accordance with Instructions in the delivery of
Securities to be held in escrow and will have no responsibility
or liability for any such Securities which are not returned
promptly when due other than to make proper requests for such
return;
(16) For spot or forward foreign exchange transactions to facilitate
security trading, receipt of income from Securities or related
transactions;
(17) When Securities are sold by the Fund, upon receipt of the total
amount payable to the Fund therefore, in accord with market
practice;
(18) Upon the termination of this Agreement; and
(19) Pursuant to a Certificate setting forth the name and address of
the person to whom the payment is to be made, the account from
which payment is to be made, the amount to be paid and the
purpose for which payment is to be made, provided that in the
event of disbursements pursuant to this paragraph 19 of Section
2(b), the Fund shall indemnify and hold the Custodian harmless
from any claims or losses arising out of such disbursements in
reliance on such Certificate.
(c) ACTIONS WHICH MAY BE TAKEN WITHOUT INSTRUCTIONS. Unless an
Instruction to the contrary is received, the Custodian shall:
(1) Collect all income due or payable, provided that the Custodian
shall not be responsible for the failure to receive payment of
(or late payment of) distributions or other payments with respect
to Securities or other property held in the account;
(2) Present for payment and collect the amount payable upon all
Securities which may mature or be called, redeemed, retired or
otherwise become payable. Notwithstanding the foregoing, the
Custodian shall have no responsibility to the Fund for monitoring
or ascertaining any call, redemption or retirement dates with
respect to put bonds or similar instruments which are owned by
the Fund and held by the Custodian or its nominees where such
dates are not published in sources routinely used by the
Custodian. The Custodian shall have no responsibility or
liability to the Fund for any loss by the Fund for any missed
payments or other defaults resulting therefrom when information
is not published in sources routinely used by the Custodian,
unless the Custodian received timely notification from the Fund
specifying the time, place and manner for the presentment of any
such put bond owned by the Fund and held by the Custodian or its
nominee. The Custodian shall not be responsible and assumes no
liability for the accuracy or completeness of any notification
the Custodian may furnish to the Fund with respect to put bonds
or similar instruments;
(3) Surrender Securities in temporary form for definitive Securities;
(4) Hold directly, or through a Securities Depository with respect to
Securities therein deposited, for the account of the Fund all
rights and similar Securities issued with respect to any
Securities held by the Custodian hereunder for the Fund;
(5) Submit or cause to be submitted to Fund or its investment
advisor, as designated by Fund, information actually received by
the Custodian regarding ownership rights pertaining to property
held for the Fund;
(6) Deliver or cause to be delivered any Securities held for the Fund
in exchange for other Securities or cash issued or paid in
connection with the liquidation, reorganization, refinancing,
merger, consolidation or recapitalization of any corporation, or
the exercise of any conversion privilege;
(7) Deliver Securities upon the receipt of payment in connection with
any repurchase agreement related to such Securities entered into
by the Fund;
(8) Deliver Securities owned by the Fund to the issuer thereof or its
agent when such Securities are called, redeemed, retired or
otherwise become payable; provided, however, that in any such
case the cash or other consideration is to be delivered to the
Custodian. Notwithstanding the foregoing, the Custodian shall
have no responsibility to the Fund for monitoring or ascertaining
any call, redemption or retirement dates with respect to put
bonds or similar instruments which are owned by the Fund and held
by the Custodian or its nominee where such dates are not
published in sources routinely used by the Custodian. The
Custodian shall have no responsibility or liability to the Fund
for any loss by the Fund for any missed payment or other default
resulting therefrom when information is not published in sources
routinely used by the Custodian, unless the Custodian received
timely notification from the Fund specifying the time, place and
manner for the presentment of any such put bond owned by the Fund
and held by the Custodian or its nominee. The Custodian shall not
be responsible and assumes no liability to the Fund for the
accuracy or completeness of any notification the Custodian may
furnish to the Fund with respect to put bonds or similar
investments;
(9) Endorse and collect all checks, drafts or other orders for the
payment of money received by the Custodian for the account of the
Fund; and
(10) Execute any and all documents, agreements or other instruments as
may be necessary or desirable for the accomplishment of the
purposes of this Agreement.
(d) CONFIRMATION AND STATEMENTS. Promptly after the close of
business on each day, the Custodian shall furnish the Fund with
confirmations and a summary of all transfers to or from the
account of the Fund during the day. Where securities purchased
by the Fund are in a fungible bulk of securities registered in
the name of the Custodian (or its nominee) or shown in the
Custodian's account on the books of a Securities Depository, the
Custodian shall by book-entry or otherwise identify the quantity
of those securities belonging to the Fund. At least monthly, the
Custodian shall furnish the Fund with a detailed statement of the
Securities and monies held for the Fund under this Agreement.
(e) REGISTRATION OF SECURITIES. The Custodian is authorized to hold
all Securities, Assets, or other property of the Fund in nominee
name, in bearer form or in book-entry form. The Custodian may
register any Securities, Assets or other property of the Fund in
the name of the Fund, in the name of the Custodian, any domestic
subcustodian, or Foreign Custodian, in the name of any duly
appointed registered nominee of such entity, or in the name of a
Securities Depository or its successor or successors, or its
nominee or nominees. The Fund agrees to furnish to the Custodian
appropriate instruments to enable the Custodian to hold or
deliver in proper form for transfer, or to register in the name
of its registered nominee or in the name of a Securities
Depository, any Securities which it may hold for the account of
the Fund and which may from time to time be registered in the
name of the Fund.
(f) SEGREGATED ACCOUNTS. Upon receipt of Instruction, the Custodian
will, from time to time establish segregated accounts on behalf
of the Fund to hold and deal with specified assets as shall be
directed.
3. SETTLEMENT OF FUND TRANSACTIONS.
(a) CUSTOMARY PRACTICES. Settlement of transactions may be effected
in accordance with trading and processing practices customary in
the jurisdiction or market where the transaction occurs. The Fund
acknowledges that this may, in certain circumstances, require the
delivery of cash or Securities (or other property) without the
concurrent receipt of Securities (or other property) or cash. In
such circumstances, the Custodian shall have no responsibility for
nonreceipt of payments (or late payment) or nondelivery of
Securities or other property (or late delivery) by the
counterparty.
(b) CONTRACTUAL INCOME. Unless the parties agree to the contrary, the
Custodian shall credit the Fund; in accordance with the
Custodian's standard operating procedure, with income and maturity
proceeds on securities on contractual payment date, net of any
taxes, or upon actual receipt. To the extent the Custodian
credits income on contractual payment date, the Custodian may
reverse such accounting entries with back value to the contractual
payment date if the Custodian reasonably believes that such amount
will not be received.
(c) CONTRACTUAL SETTLEMENT. Unless the parties agree to the contrary,
the Custodian will attend to the settlement of securities
transactions in accordance with the Custodian's standard operating
procedure, on the basis of either contractual settlement date
accounting or actual settlement date accounting. To the extent
the Custodian settles certain securities transactions on the basis
of contractual settlement date accounting, the Custodian may
reverse with back value to the contractual settlement date any
entry relating to such contractual settlement if the Custodian
reasonably believes that such amount will not be received.
4. LENDING OF SECURITIES. The Custodian may lend the assets of the Fund
in accordance
with the terms and conditions of a separate securities lending agreement.
5. PERSONS HAVING ACCESS TO ASSETS OF THE FUND.
(a) No trustee or agent of the Fund, and no officer, director,
employee or agent of the Fund's investment adviser, of any
sub-investment adviser of the Fund, or of the Fund's
administrator, shall have physical access to the assets of the
Fund held by the Custodian or be authorized or permitted to
withdraw any investments of the Fund, nor shall the Custodian
deliver any assets of the Fund to any such person.
No officer, director, employee or agent of the Custodian who
holds any similar position with the Fund's investment adviser,
with any sub-investment adviser of the Fund or with the Fund's
administrator shall have access to the assets of the Fund.
(b) Nothing in this Section 5 shall prohibit any duly authorized
officer, employee or agent of the Fund, or any duly authorized
officer, director, employee or agent of the investment adviser,
of any sub-investment adviser of the Fund or of the Fund's
administrator, from giving Instructions to the Custodian or
executing a Certificate so long as it does not result in delivery
of or access to assets of the Fund prohibited by paragraph (a) of
this Section 5.
6. STANDARD OF CARE; LIMIT OF CUSTODIAL RESPONSIBILITIES.
(a) STANDARD OF CARE. In connection with its duties and
responsibilities under this Article I, the Custodian shall not be
liable for any loss or damage, including counsel fees, resulting
from its action or omission to act or otherwise, except for any
such loss or damage arising out of the negligence or willful
misconduct of the Custodian, its employees, agents or domestic
subcustodians. The Custodian may, with respect to questions of
law, apply for and obtain the advice and opinion of counsel to
the Fund or of its own counsel, at the expense of the Fund, and
shall be fully protected with respect to anything reasonably done
or omitted by it in conformity with such advice or opinion.
(b) LIMIT OF DUTIES. Without limiting the generality of the
foregoing, the Custodian shall be under no duty or obligation to
inquire into, and shall not be liable for:
(1) The acts or omissions of any agent appointed pursuant to
Instructions of the Fund or its investment advisor including, but
not limited to, any broker-dealer or other entity to hold any
Securities or other property of the Fund as collateral or
otherwise pursuant to any investment strategy;
(2) The validity of the issue of any Securities purchased by the
Fund, the legality of the purchase thereof, or the propriety of
the amount paid therefor;
(3) The legality of the sale of any Securities by the Fund or the
propriety of the amount for which the same are sold;
(4) The legality of the issue or sale of any Shares, or the
sufficiency of the amount to be received therefor;
(5) The legality of the redemption of any Shares, or the propriety of
the amount to be paid therefor;
(6) The legality of the declaration or payment of any distribution of
the Fund;
(7) The legality of any borrowing for temporary or emergency
purposes.
(c) NO LIABILITY UNTIL RECEIPT. The Custodian shall not be liable
for, or considered to be the Custodian of, any money, whether or
not represented by any check, draft, or other instrument for the
payment of money, received by it on behalf of the Fund until the
Custodian actually receives and collects such money, directly or
by the final crediting of the account representing the Fund's
interest in the Book- Entry System or Securities Depository.
(d) AMOUNTS DUE FROM TRANSFER AGENT. The Custodian shall not be
required to effect collection of any amount due to the Fund from
the Transfer Agent nor be required to cause payment or
distribution by the Transfer Agent of any amount paid by the
Custodian to the Transfer Agent.
(e) COLLECTION WHERE PAYMENT REFUSED. The Custodian shall not be
required to take action to effect collection of any amount, if
the Securities upon which such amount is payable are in default,
or if payment is refused after due demand or presentation, unless
and until it shall be directed to take such action and it shall
be assured to its satisfaction of reimbursement of its related
costs and expenses.
(f) NO DUTY TO ASCERTAIN AUTHORITY. The Custodian shall not be under
any duty or obligation to ascertain whether any Securities at any
time delivered to or held by it for the Fund are such as may
properly be held by the Fund under the provisions of its
governing instruments or Prospectus.
(g) RELIANCE ON INSTRUCTIONS. The Custodian shall be
entitled to rely upon any Certificate, Instruction, notice or
other instrument in writing received by the Custodian and
reasonably believed by the Custodian to be genuine and to be
signed by an Authorized Person of the Fund. Where the Custodian
is issued Instructions orally, the Fund acknowledges that if
written confirmation is requested, the validity of the
transactions or enforceability of the transactions authorized by
the Fund shall not be affected if such confirmation is not
received or is contrary to oral Instructions given. The Custodian
shall be under no duty to question any direction of an Authorized
Person, to review any property held in the Fund's account, to
make any suggestions with respect to the investment of the Assets
in the Fund's account, or to evaluate or question the performance
of any Authorized Person. The Custodian shall not be responsible
or liable for any diminution of value of any Securities or other
property held by the Custodian, absent a breach of the
Custodian's duties under this Agreement.
7. APPOINTMENT OF SUBCUSTODIANS. The Custodian is hereby authorized to
appoint one or more domestic subcustodians (which may be an affiliate of the
Custodian) to hold Securities and monies at any time owned by the Fund. The
Custodian is also hereby authorized when acting pursuant to Instructions to:
1) place Assets with any Foreign Custodian located in a jurisdiction which is
not a Selected Country and with Euroclear, Clearstream, or any other
transnational depository; and 2) place Assets with a broker or other agent as
subcustodian in connection with futures, options, short selling or other
transactions. When acting pursuant to such Instructions, the Custodian shall
not be liable for the acts or omissions of any subcustodian so appointed.
8. OVERDRAFT FACILITY AND SECURITY FOR PAYMENT. In the event that the
Custodian receives Instructions to make payments or transfers of monies on
behalf of the Fund for which there would be, at the close of business on the
date of such payment or transfer, insufficient monies held by the Custodian
on behalf of the Fund, the Custodian may, in its sole discretion, provide an
overdraft (an "Overdraft") to the Fund in an amount sufficient to allow the
completion of such payment or transfer. Any Overdraft provided hereunder:
(a) shall be payable on the next Business Day, unless otherwise agreed by the
Fund and the Custodian; and (b) shall accrue interest from the date of the
Overdraft to the date of payment in full by the Fund at a rate agreed upon
from time to time, by the Custodian and the Fund or, in the absence of
specific agreement, at such rate as charged to other customers of Custodian
under procedures uniformly applied. The Custodian and the Fund acknowledge
that the purpose of such Overdraft is to temporarily finance the purchase of
Securities for prompt delivery in accordance with the terms hereof, to meet
unanticipated or unusual redemptions, to allow the settlement of foreign
exchange contracts or to meet other unanticipated Fund expenses. The
Custodian shall promptly notify the Fund (an "Overdraft Notice") of any
Overdraft. To secure payment of any Overdraft, the Fund hereby grants to the
Custodian a continuing security interest in and right of setoff against the
Securities and cash in the Fund's account from time to time in the full
amount of such Overdraft. Should the Fund fail to pay promptly any amounts
owed hereunder, the Custodian shall be entitled to use available cash in the
Fund's account and to liquidate Securities in the account as necessary to
meet the Fund's obligations under the Overdraft. In any such case, and
without limiting the foregoing, the Custodian shall be entitled to take such
other actions(s) or exercise such other options, powers and rights as the
Custodian now or hereafter has as a secured creditor under the Massachusetts
Uniform Commercial Code or any other applicable law.
9. TAX OBLIGATIONS. For purposes of this Agreement, "Tax Obligations"
shall mean taxes, withholding, certification and reporting requirements,
claims for exemptions or refund, interest, penalties, additions to tax and
other related expenses. To the extent that the Custodian has received
relevant and necessary information with respect to the Fund's account, the
Custodian shall perform the following services with respect to Tax
Obligations:
a. the Custodian shall file claims for exemptions or refunds with respect
to withheld foreign (non-U.S.) taxes in instances in which such claims are
appropriate;
b. the Custodian shall withhold appropriate amounts, as required by U.S.
tax laws, with respect to amounts received on behalf of nonresident aliens;
and
c. the Custodian shall provide to the Fund or an Authorized Person such
information received by the Custodian which could, in the Custodian's
reasonable belief, assist the Fund or the Authorized Person in the submission
of any reports or returns with respect to Tax Obligations. The Fund shall
inform the Custodian in writing as to which party or parties shall receive
information from the Custodian.
The Custodian shall provide such other services with respect to Tax
Obligations, including preparation and filing of tax returns and reports and
payment of amounts due (to the extent funded), as requested by the Fund and
agreed to by the Custodian in writing. The Custodian shall have no
independent obligation to determine the existence of any information with
respect to, or the extent of, any Tax Obligations now or hereafter imposed on
the Fund or its account by any taxing authority. Except as specifically
provided herein or agreed to in writing by the Custodian, the Custodian shall
have no obligations or liability with respect to Tax Obligations, including,
without limitation, any obligation to file or submit returns or reports with
any taxing authorities.
In making payments to service providers pursuant to Instructions, the
Fund acknowledges that the Custodian is acting as a paying agent and not as
the payor, for tax information reporting and withholding purposes.
(PAGE)
ARTICLE II
FOREIGN CUSTODY MANAGER SERVICES
1. DELEGATION. The Board delegates to the Custodian, and the Custodian
hereby agrees to accept, responsibility as the Fund's Foreign Custody Manager
for selecting, contracting with and monitoring Foreign Custodians in Selected
Countries set forth in Appendix B (except as noted therein) in accordance
with Rule 17f-5(c).
2. CHANGES TO APPENDIX B. Appendix B may be amended from time to time to
add or delete jurisdictions by written agreement signed by an Authorized
Person of the Fund and the Custodian, but the Custodian reserves the right to
delete jurisdictions upon reasonable notice to the Fund.
3. REPORTS TO BOARD. Custodian shall provide written reports notifying
the Board of the placement of Assets with a particular Foreign Custodian.
Such reports shall be provided to the Board quarterly, except as otherwise
agreed by the Custodian and the Fund. The Custodian shall promptly notify
the Board, in writing, of any material change in Fund's foreign custody
arrangements.
4. MONITORING SYSTEM. In each case in which the Custodian has exercised
delegated authority to place Assets with a Foreign Custodian, the Custodian
shall monitor the appropriateness of maintaining the Assets with such Foreign
Custodian, and the performance of the Foreign Custodian under its contract
with the Custodian, in accordance with Rule 17f-5(c)(3). The Custodian will
notify the Fund as soon as possible if an arrangement with a Foreign
Custodian no longer meets the requirements of Rule 17f-5, so that the Fund
may withdraw its Assets in accordance with Rule 17f-5(c)(3)(ii).
5. STANDARD OF CARE; INDEMNITY. In exercising the delegated authority
under this Article of the Agreement, the Custodian agrees to exercise
reasonable care, prudence and diligence such as a person having
responsibility for the safekeeping of the Assets would exercise in like
circumstances. Contracts with Foreign Custodians shall comply with Rule
17f-5(c)(2), and provide for reasonable care for Assets based on the
standards applicable to Foreign Custodians in the Selected Country. In
making this determination, the Custodian shall consider the factors set
forth in Rule 17f-5(c)(1). In addition, the Custodian shall hold the Fund
harmless from, and indemnify the Fund against, any loss, action, claim,
demand, expense and proceeding, including counsel fees, that occurs as a
result of the failure of any Foreign Custodian to exercise reasonable care
with respect to the safekeeping of Securities and monies of the Fund.
Notwithstanding the generality of the foregoing, however, the Custodian shall
not be liable for any losses resulting from Country Risk.
(PAGE)
6. USE OF SECURITIES DEPOSITORIES. In exercising its delegated authority,
Custodian may assume, unless instructed in writing to the contrary, that the
Board or the Fund's investment adviser has determined, pursuant to Rule
17f-7, to place and maintain foreign assets with any Securities Depository as
to which the Custodian has provided the Fund with a Risk Analysis.
[BALANCE OF PAGE INTENTIONALLY BLANK]
(PAGE)
ARTICLE III
INFORMATION SERVICES
1. RISK ANALYSIS. The Custodian will provide the Fund with a Risk
Analysis with respect to Securities Depositories operating in the countries
listed in Appendix B. If the Custodian is unable to provide a Risk Analysis
with respect to a particular Securities Depository, it will notify the Fund.
If a new Securities Depository commences operation in one of the Appendix B
countries, the Custodian will provide the Fund with a Risk Analysis in a
reasonably practicable time after such Securities Depository becomes
operational. If a new country is added to Appendix B, the Custodian will
provide the Fund with a Risk Analysis with respect to each Securities
Depository in that country within a reasonably practicable time after the
addition of the country to Appendix B.
2. MONITORING OF SECURITIES DEPOSITORIES. The Custodian will monitor, on
a continuing basis, the custody risks associated with maintaining assets with
each Securities Depository for which it has provided the Fund with a Risk
Analysis, as required under Rule 17f-7. The Custodian will promptly notify
Fund or its investment adviser of any material change in these risks, or if
the custody arrangements with a Securities Depository may no longer meet the
requirements of Rule 17f-7.
3. USE OF AGENTS. Subject to its standard of care in Section 4, below,
The Custodian may employ agents, including, but not limited to Foreign
Custodians, to perform its responsibilities under Sections 1 and 2 above.
4. EXERCISE OF REASONABLE CARE. The Custodian will exercise reasonable
care, prudence, and diligence in performing its responsibilities under this
Article III. With respect to the Risk Analyses provided or monitoring
performed by an agent, the Custodian will exercise reasonable care in the
selection of such agent, and shall be entitled to rely upon information
provided by agents so selected in the performance of its duties and
responsibilities under this Article III, unless the Custodian knows or should
have known such information to be incorrect, incomplete or misleading.
5. LIABILITIES AND WARRANTIES. While the Custodian will take
reasonable precautions to ensure that information provided is accurate, the
Custodian shall have no liability with respect to information provided to it
by third parties, unless the Custodian knows or should have known such
information to be incorrect, incomplete or misleading. Except as provided,
due to the nature and source of information, and the necessity of relying on
various information sources, most of which are external to the Custodian, the
Custodian shall have no liability for direct or indirect use of such
information.
ARTICLE IV
GENERAL PROVISIONS
1. COMPENSATION.
(a) The Fund will compensate the Custodian for its services rendered
under this Agreement in accordance with the fees, including out
of pocket disbursements, set forth in a separate Fee Schedule,
which schedule may be modified by the Custodian upon not less
than sixty days prior written notice to the Fund. The Custodian
shall also be entitled to reimbursement from the Fund for the
amount of any loss, damage, liability or expense incurred with
respect to the Fund, including counsel fees, for which it shall
be entitled to reimbursement under the provisions of this
Agreement.
(b) The Custodian will xxxx the Fund as soon as practicable after the
end of each calendar month. The Fund will promptly pay to the
Custodian the amount of such billing.
(c) If not paid timely by the Fund, and unless otherwise reasonably
disputed by the Fund, the Custodian may charge against assets
held on behalf of the Fund compensation and any expenses incurred
by the Custodian in the performance of its duties pursuant to
this Agreement.
2. INSOLVENCY OF FOREIGN CUSTODIANS. The Custodian shall be responsible
for losses or damages suffered by the Fund arising as a result of the
insolvency of a Foreign Custodian only to the extent that the Custodian
failed to comply with the standard of care set forth in Article II with
respect to the selection and monitoring of such Foreign Custodian.
3. LIABILITY FOR DEPOSITORIES. The Custodian shall not be responsible for
any losses resulting from the deposit or maintenance of Securities, Assets or
other property of the Fund with a Securities Depository. Nothing in this
provision shall preclude damages for a breach of duties under Article III.
4. DAMAGES. The Custodian shall not be liable for any indirect,
consequential or special damages with respect to its role as Foreign Custody
Manager, Custodian or information vendor, except as may arise from its bad
faith or willful misconduct in performing its responsibilities hereunder.
5. LIABILITY OF THE FUND. The Fund and the Custodian agree that the
obligations of the Fund under this Agreement shall not be binding upon any of
the Directors, Trustees, shareholders, nominees, officers, employees or
agents, whether past, present or future, of the Fund individually, but are
binding only upon the assets and property of the Fund.
6. FORCE MAJEURE. The Custodian shall not be liable for any losses
resulting from or caused by events or circumstances beyond its reasonable
control, including, but not limited to, losses resulting from
nationalization, strikes, expropriation, devaluation, revaluation,
confiscation, seizure, cancellation, destruction or similar action by any
governmental authority, de facto or de jure; or enactment, promulgation,
imposition or enforcement by any such governmental authority of currency
restrictions, exchange controls, taxes, levies or other charges affecting the
Fund's property; or the breakdown, failure or malfunction of any utilities or
telecommunications systems; or any order or regulation of any banking or
securities industry including changes in market rules and market conditions
affecting the execution or settlement of transactions; or acts of war,
terrorism, insurrection or revolution; or any other similar event.
7. TERMINATION.
(a) Either party may terminate this Agreement by giving the other
party two hundred seventy (270) days notice in writing,
specifying the date of such termination. In the event notice is
given by the Fund, it shall be accompanied by a Certificate
evidencing the vote of the Fund's Board to terminate this
Agreement.
(b) The Fund shall, on or before a specified termination date,
deliver to the Custodian a Certificate evidencing the vote of the
Board designating a successor custodian. In the absence of such
designation, the Custodian may designate a successor custodian,
which shall be a person qualified to so act under the Act, or the
Fund. If both the Custodian and the Fund fail to designate a
successor custodian, the Fund shall, upon the date specified in
the notice of termination, and upon the delivery by the Custodian
of all Securities and monies then owned by the Fund, be deemed to
be its own custodian and the Custodian shall thereby be relieved
of all duties and responsibilities under this Agreement, other
than the duty with respect to Securities held in the Book-Entry
System which cannot be delivered to the Fund.
(c) Upon termination of the Agreement, the Custodian shall, upon
receipt of a notice of acceptance by the successor custodian,
deliver to the successor all Securities and monies then held by
the Custodian on behalf of the Fund, after deducting all fees,
expenses and other amounts owed which have not been reasonably
disputed.
(d) In the event of a dispute following the termination of this
Agreement, all relevant provisions shall be deemed to continue to
apply to the obligations and liabilities of the parties with
respect thereto.
8. BOOKS AND RECORDS. The books and records pertaining to the Fund which
are in the possession of the Custodian shall be the property of the Fund.
(The Custodian may, however, to the extent required by law or regulation
retain copies of the same if the Fund requests the return of its books and
records.) Such books and records shall be prepared and maintained as
required by the Act, and other applicable securities laws, rules and
regulations. Such books and records shall be open to inspection and audit at
reasonable times by officers and auditors employed by the Fund at its own
expense and with prior written notice to the Custodian, and by the
appropriate employees of the Securities and Exchange Commission.
9. MISCELLANEOUS.
(a) APPENDIX A is a Certificate signed by the Secretary of the Fund
setting forth the names and the signatures of Authorized
Persons. The Fund shall furnish a new Certificate when the list
of Authorized Persons is changed in any way. Until a new
certification is received, the Custodian shall be fully protected
in acting upon Instructions from Authorized Persons as set forth
in the last delivered Certificate.
(b) Any required written notice or other instrument shall be
sufficiently given if addressed to the Custodian or the Fund as
the case may be and delivered to it at its offices at:
The Custodian:
Boston Safe Deposit and Trust Company
000 Xxxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxxxxx 00000
Attn: Xxxxx Xxxxxx
The Fund:
Dreyfus Premier Equity Funds, Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxx Xxxxxx
or at such other place as the parties may from time to time
designate to the other in writing.
(c) This Agreement may not be amended or modified except by a written
agreement executed by both parties.
(d) This Agreement shall extend to and shall be binding upon the
parties hereto, and their respective successors and assigns;
provided, however, that this Agreement shall not be assignable by
the Fund without the written consent of the Custodian, or by the
Custodian without the written consent of the Fund authorized or
approved by a vote of the Board, provided, however, that the
Custodian may assign the Agreement or any function thereof to any
corporation or entity which directly or indirectly is controlled
by, or is under common control with, the Custodian and any other
attempted assignment without written consent shall be null and
void.
(e) Nothing in this Agreement shall give or be construed to give or
confer upon any third party any rights hereunder.
(f) The Custodian represents that it is a U.S. Bank within the
meaning of paragraph (a)(7) of Rule 17f-5.
(g) The Fund acknowledges and agrees that, except as expressly set
forth in this Agreement, the Fund is solely responsible to assure
that the maintenance of the Fund's Securities and cash hereunder
complies with applicable laws and regulations, including without
limitation the Act and the rules and regulations promulgated
thereunder and applicable interpretations thereof or exemptions
therefrom. The Fund represents that it has determined that it is
reasonable to rely on the Custodian to perform the
responsibilities delegated pursuant to this Agreement.
(h) This Agreement shall be construed in accordance with the laws of
The Commonwealth of Pennsylvania.
(i) The captions of the Agreement are included for convenience of
reference only and in no way define or delimit any of the
provisions hereof or otherwise affect their construction or
effect.
(j) Each party represents to the other that it has all necessary
power and authority, and has obtained any consent or approval
necessary, to permit it to enter into and perform this Agreement
and that this Agreement does not violate, give rise to a default
or right of termination under or otherwise conflict with, any
applicable law, regulation, ruling, decree or other governmental
authorization or any contract to which it is a party or by which
any of its assets is bound.
(k) This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, but such
counterparts shall, together, constitute only one instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective representatives duly authorized as of the day
and year first above written.
DREYFUS PREMIER EQUITY FUNDS, INC.
By: /S/XXXXXX X. XXXXXX
Xxxxxx X. Xxxxxx
Title: Assistant Secretary
MELLON BANK, N.A.
By: /S/XXXXXXXXXXX XXXXX
Name: Xxxxxxxxxxx Xxxxx
Title: First Vice President
(PAGE)
APPENDIX A
DREYFUS PREMIER EQUITY FUNDS, INC.-
DREYFUS PREMIER AGGRESSIVE GROWTH FUND
DREYFUS PREMIER GROWTH AND INCOME FUND
AUTHORIZED SIGNATORIES:
CASH ACCOUNT AND/OR CUSTODIAN
ACCOUNT FOR PORTFOLIO SECURITIES
TRANSACTIONS
GROUP I GROUP II
Xxxxx Xxxxxxx, Xxxxxxx Xxxxxx, Xxxxxx Xxxxxxx X. Xxxxxxxx, Xx. Xxxxx Xxxxxxx
Xxxxxxxx, Xxxx Xxxxx, Xxxxx Xxxxxxxxx, Xxxxxx Xxxxxxxx Xxxxxxx XxXxxxxx
Xxxx XxXxx, Xxxxxx Xxxxxx, Xxxx Xxxxxxx Xxxxxx Xxxxxx Xxxxx
Dermezis, Xxxxx Xxxxxxx, Xxxxxx Xxxxxxx Xxxxxx
Xxxxx, Xxxx Xxxxxxxx and Xxxxxxxxxxx
Xxxxxxxx
CASH ACCOUNT
1. Fees payable to Mellon Bank, N.A. or Boston Safe Deposit and Trust
Company pursuant to written agreement with the Fund for services
rendered in its capacity as Custodian or agent of the Fund, or to
Dreyfus Transfer, Inc. in its capacity as Transfer Agent or agent of
the Fund:
Two (2) signatures required, one of which must be from
Group II, except that no individual shall be authorized to sign
more than once.
2. Other expenses of the Fund, $5,000 and under:
Any combination of two (2) signatures from either Group I
or Group II, or both such Groups, except that no individual shall
be authorized to sign more than once.
3. Other expenses of the Fund, over $5,000:
Two (2) signatures required, one of which must be from
Group II, except that no individual shall be authorized to sign
more than once.
CUSTODIAN ACCOUNT FOR PORTFOLIO SECURITIES TRANSACTIONS
Two (2) signatures required from any of the following:
Xxxx Xxxxx, Xxxxxx Xxx, Xxxx Xxxxxxxx, Xxxx Xxxxxxx and Xxxxx Xxxxx.
(PAGE)
APPENDIX B
SELECTED COUNTRIES
Argentina
Australia
Austria
Bangladesh
Belgium
Bermuda
Bolivia
Botswana
Brazil
Canada
Chile
China/Shenzhen
China/Shanghai
Colombia
Costa Rica *
Croatia
Czech Republic
Denmark
Ecuador
Egypt
Estonia*
Finland
France
Germany
Ghana
Greece
Hong Kong
Hungary
India
Indonesia
Ireland
Israel
Italy
Japan
Jordan
Kenya
Korea, Republic of
Luxembourg
Malaysia
Mauritius
Mexico
Morocco
Namibia
The Netherlands
New Zealand
Norway
Pakistan
Panama
Peru
The Philippines
Poland
Portugal
Romania
Russia*
Singapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Taiwan
Thailand
Trinidad*
Tunisia*
Turkey
United Kingdom
Uruguay
Venezuela
Vietnam
Zambia
Zimbabwe
(PAGE)
"*Note, Custodian will not act as a Foreign Custody Manager with respect to
assets held in this country. Holding assets and use of Mellon's usual
subcustodian in this country is subject to Instructions by the Fund and its
execution of a separate letter-agreement pertaining to custody and market
risks."
(PAGE)
APPENDIX C
SELF CUSTODY RIDER
Notwithstanding any other provisions of this Agreement to the contrary, the
following provisions shall apply to this Agreement as being subject to Rule
17f-2 under the Act.
1. PHYSICAL SEPARATIONS OF SECURITIES. Except as permitted by Rule 17f-2
or Rule 17f-4, the Custodian shall hold all Securities deposited with
it physically segregated at all times from those of any other person.
2. ACCESS TO SECURITIES. Except as otherwise provided by law, no person
shall be authorized or permitted to have access to the Securities
deposited with the Custodian except pursuant to a Board resolution.
Each such resolution shall designate not more than five persons who
shall be either officers or responsible employees of the Fund and shall
provide that access to such investments shall be had only by two or
more such persons jointly, at least one of whom shall be an officer;
except that access to such investments shall be permitted (1) to
properly authorized officers and employees of the Custodian and (2) to
the Fund's independent public accountant jointly with any two persons
so designated or with such officer or employee of the Custodian.
3. DEPOSITS AND WITHDRAWALS. Each person when depositing such securities
or similar investments in or withdrawing them from a Securities
Depository or when ordering their withdrawal and delivery from the
safekeeping of the Custodian, shall comply with the requirements of
Rule 17f-2(e).
4. EXAMINATION. The Fund shall comply with the requirements of Rule
17f-2(f) with regard to examinations by an independent public
accountant.
Acknowledged:
/S/XXXXXX X. XXXXXX /S/ XXXXXXXXXXX XXXXX
Dreyfus Premier Equity Funds, Inc. Mellon Bank, N.A.
