EX-99 (9)(iii)
AMENDMENT, dated as of May 1, 2001 to the custody agreements (each an
"Agreement"), between the Franklin Xxxxxxxxx funds listed on Schedule A hereto
(each a "Fund"), having a place of business at 000 Xxxxxxxx' Xxxxxx Xxxx, Xxx
Xxxxx, XX 00000, and The Chase Manhattan Bank ("Bank"), having a place of
business at 000 Xxxx Xxx., Xxx Xxxx, X.X. 00000-0000.
It is hereby agreed as follows:
Section 1. Except as modified hereby, the Agreement is confirmed in all
respects. Capitalized terms used herein without definition shall have the
meanings ascribed to them in the Agreement.
Section 2. The Agreement is amended by deleting the Mutual Fund Rider
thereto and inserting, in lieu thereof, the following Rider:
I. Add the following after the first sentence of Section 3 of the
Agreement:
At the request of Fund, Bank may, but need not, add to Schedule B an
Eligible Foreign Custodian where Bank has not acted as Foreign Custody
Manager with respect to the selection thereof. Bank shall notify Fund
in the event that it elects to add any such entity.
II. Add the following language to the end of Section 3 of the
Agreement:
(i) The term Subcustodian as used herein shall mean the following:
(a) a "U.S. Bank," which shall mean a U.S. bank as defined in
rule 17f-5(a)(7) under the Investment Company Act of 1940, a
amended (the "1940 Act"); and
(b) an "Eligible Foreign Custodian," which, as defined in 1940 Act
rule 17f-5(a)(1) and (5), shall mean (i) 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 that
country's government or an agency thereof, and (ii) a majority-owned
direct or indirect subsidiary of a U.S. Bank or bank holding company
which subsidiary is incorporated or organized under the laws of a
country other than the United States. In addition, an Eligible Foreign
Custodian shall also mean any other entity that shall have been so
qualified by exemptive order, rule or other appropriate action of the
SEC.
(ii) The term "securities depository" as used herein shall mean the
following when referring to a securities depository located:
(a) outside the U.S,. an "Eligible Securities Depository" which, in
turn, shall have the same meaning as in 1940 Act rule
17f-7(b)(1)(i)-(vi) as the same may be amended from time to time, or
that has otherwise been made exempt by an SEC exemptive order, rule
other appropriate SEC action, except that prior to the compliance date
with rule 17f-7 for a particular securities depository the term
"securities depository" shall be as defined in (a)(1)(ii)-(iii) of the
1997 amendments to rule 17f-5.
(b) in the U.S., a "securities depository" as defined in 1940 Act
rule 17f-4(a).
(iii) For purposes of clarity, it is understood and agreed that the
term Subcustodian shall not include any securities depository. For purposes of
the provisions of the Agreement imposing liability on Bank, the term
Subcustodian shall not include any Eligible Foreign Custodian as to which Bank
has not acted as Foreign Custody Manager.
III. Add new Section 15 to the Agreement as follows:
15. Compliance with 1940 Act rule 17f-5 ("rule 17f-5").
---------------------------------------------------
(a) Fund's board of directors (or equivalent body) (hereinafter
"Board") hereby delegates to Bank, and Bank hereby accepts the delegation to it
of, the obligation to perform as Fund's "Foreign Custody Manager" (as that term
is defined in rule 17f-5(a)(3)), including for the purposes of: (i) selecting
"Eligible Foreign Custodians" (as that term is defined in rule 17f-5(a)(1), as
the same may be amended from time to time, or that have otherwise been exempted
by SEC exemptive order, rule other appropriate SEC action) to hold Fund's
"Foreign Assets," (as that term is defined in rule 17f-5 (a)(2)) and (ii)
evaluating the contractual arrangements with such Eligible Foreign Custodians
(as set forth in rule 17f-5(c)(2)), and (iii) monitoring such foreign custody
arrangements (as set forth in rule 17f-5(c)(3)).
(b) In connection with the foregoing, Bank shall:
(i) provide written reports notifying Fund's Board of the placement
of Foreign Assets with particular Eligible Foreign Custodians and of
any material change in the arrangements with such Eligible Foreign
Custodians, with such reports to be provided to Fund's Board at such
times as the Board deems reasonable and appropriate based on the
circumstances of Fund's foreign custody arrangements but until further
notice from Fund requesting a different schedule, such reports shall
be provided not less than quarterly in summary form, with a more
detailed report annually.
(ii) exercise such reasonable care, prudence and diligence in
performing as Fund's Foreign Custody Manager as a person having
responsibility for the safekeeping of Foreign Assets would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have determined
that Foreign Assets placed and maintained in the safekeeping of such
Eligible Foreign Custodian shall be subject to reasonable care, based
on the standards applicable to custodians in the relevant market, after
having considered all factors relevant to the safekeeping of such
Assets, including, without limitation, those factors set forth in rule
17f-5(c)(1)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign
Custodian requires that the Eligible Foreign Custodian will provide
reasonable care for Foreign Assets based on the standards applicable to
custodians in the relevant market as provided in rule 17f-5(c)(2); and
(v) have established a system to monitor the continued
appropriateness of maintaining Foreign Assets with particular Eligible
Foreign Custodians and performance of the governing contractual
arrangements; it being understood, however, that in the event that
Bank shall have determined that the existing Eligible Foreign
Custodian in a given country would no longer afford Foreign Assets
reasonable care and that no other Eligible Foreign Custodian in that
country would afford reasonable care, Bank shall promptly so advise
Fund and shall then act in accordance with the Instructions of Fund
with respect to the disposition of the affected Foreign Assets.
Subject to (b)(i)-(v) above, Bank is hereby authorized to place and maintain
Foreign Assets on behalf of Fund with Eligible Foreign Custodians pursuant to a
written contract deemed appropriate by Bank.
(c) Except as expressly provided herein and in Section 16 hereof,
Fund shall be solely responsible to assure that the maintenance of Foreign
Assets hereunder complies with the rules, regulations, interpretations and
exemptive orders promulgated by or under the authority of the SEC.
(d) Bank represents to Fund that it is a U.S. Bank as defined in rule
17f-5(a)(7). Fund represents to Bank that: (1) the Assets being placed and
maintained in Bank's custody are subject to the Investment Company Act of 1940,
as amended (the "1940 Act") as the same may be amended from time to time; (2)
its Board (or other governing body) has determined that it is reasonable to rely
on Bank to perform as Fund's
Foreign Custody Manager; and (3) its Board (or other governing body) or its
investment adviser shall have determined that Fund may maintain Foreign Assets
in each country in which Fund's Foreign Assets shall be held hereunder and
determined to accept the risks arising therefrom (including, but not limited to,
a country's financial infrastructure, prevailing custody and settlement
practices, laws applicable to the safekeeping and recovery of Foreign Assets
held in custody, and the likelihood of nationalization, currency controls and
the like) (collectively ("Country Risk")). Nothing contained herein shall
require Bank to make any selection on behalf of Fund that would entail
consideration of Country Risk and, except as may be provided in (e) below, to
engage in any monitoring of Country Risk.
(e) Bank shall provide to Fund such information relating to Country
Risk as is specified in Schedule C hereto. Fund hereby acknowledges that: (i)
such information is solely designed to inform Fund of market conditions and
procedures and is not intended as a recommendation to invest or not invest in
particular markets; and (ii) Bank has gathered the information from sources it
considers reliable, but that Bank shall have no responsibility for inaccuracies
or incomplete information.
IV. Add the following language to the end of the first sentence of
Section 4(d) of the Agreement: "or, in the case of cash deposits, except for
liens or rights in favor of creditors of the Subcustodian arising under
bankruptcy, insolvency or similar laws."
V. Add a new Section 16 to the Agreement as follows:
16. Compliance with 1940 Act rule 17f-7 ("rule 17f-7").
--------------------------------------------------
(a) Bank shall, for consideration by Fund, provide an analysis in
accordance with rule 17f-7(a)(1)(i)(A) of the custody risks associated with
maintaining Fund's Foreign Assets with each Eligible Securities Depository used
by Bank as of the date hereof (or, in the case of an Eligible Securities
Depository not used by Bank as of the date hereof, prior to the initial
placement of Fund's Foreign Assets at such Depository) and at which any Foreign
Assets of Fund are held or are expected to be held. The foregoing analysis will
be provided to Fund and its investment adviser(s) ("Adviser") at Bank's Website.
In connection with the foregoing, either Fund or Adviser shall notify Bank of
any Eligible Securities Depositories at which it does not choose to have its
Foreign Assets held. Bank shall monitor the custody risks associated with
maintaining Fund's Foreign Assets at each such Eligible Securities Depository on
a continuing basis and shall promptly notify Fund or Adviser of any material
changes in such risks.
(b) Bank shall exercise reasonable care, prudence and diligence in
performing the requirements set forth in Section 16(a) above.
(c) Based on the information available to it in the exercise of
diligence, Bank shall determine the eligibility under rule 17f-7 of each
depository before including it on Appendix 1-B hereto and shall promptly advise
Fund if any Eligible Securities Depository ceases to be eligible. (Eligible
Securities Depositories used by Bank as of the date hereof are set forth in
Appendix 1-B hereto, and as the same may be amended on notice to Fund and
Adviser from time to time.)
(d) Bank need not commence performing any of the duties set forth in
this Section 16 prior to March 31, 2001, but Bank shall advise Fund and Adviser
if it is prepared to commence such duties prior to such date as to particular
depositories.
*********************
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first above written.
[Fund] THE CHASE MANHATTAN BANK
By /s/ Xxxxxx X. Xxxxxxx By: /s/ Xxxx X. Xxxxx
----------------------- -------------------------
Name: Xxxxxx X. Xxxxxxx Name: Xxxx X. Xxxxx
Title: Vice President Title: Vice President
Date: 5/1/01 Date: 5/3/01
Schedule A
Fund List
Franklin Xxxxxxxxx International Trust (7/28/95)
- Templeton Pacific Growth Fund
- Xxxxxxxxx Foreign Smaller companies Fund
Franklin Xxxxxxxxx Global Trust (11/15/93)
- Franklin Xxxxxxxxx Global Currency Fund
- Franklin Xxxxxxxxx Hard currency Fund
Franklin Global Trust (12/29/00)
- Franklin Global Growth Fund
- Franklin Global Aggressive Growth Fund
Franklin Xxxxxxxxx Variable Insurance Products Trust ( 3/15/94)
- Templeton Developing Market Securities Fund (P49157)
- Templeton Growth Securities Fund (P49156)
- Templeton Asset Strategy Fund (P81002)
- Xxxxxxxxx International Securities Fund (P81021)
- Xxxxxxxxx International Smaller Companies Fund (P83428)
Schedule B
ELIGIBLE SECURITIES DEPOSITORIES
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Country Depository Instruments
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Argentina CVSA Equity, Corporate + Government Debt
(Caja de Valores S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Argentina CRYL Government Debt
(Central de Registration y Liquidacion de
Instrumentos de Endeudamiento Publico)
----------------------------------------------------------------------------------------------------------------------------------
Australia Austraclear Limited Corporate Debt, Money Market + Semi-Government Debt
----------------------------------------------------------------------------------------------------------------------------------
Australia CHESS Equity
(Clearing House Electronic Sub-register System)
----------------------------------------------------------------------------------------------------------------------------------
Australia RITS Government Debt
(Reserve Bank of Australia/Reserve Bank
Information and Transfer System)
----------------------------------------------------------------------------------------------------------------------------------
Austria OeKB Equity, Corporate + Government Debt
(Oesterreichische Kontrollbank AG)
----------------------------------------------------------------------------------------------------------------------------------
Belgium CIK Equity + Corporate Debt
(Caisse Interprofessionnelle de Depots et de
Virements de Titres S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Xxxxxxx XXX Government Debt
(National Bank of Belgium)
----------------------------------------------------------------------------------------------------------------------------------
Brazil CBLC Equity
(Companhia Brasileira de Liquidacao e Custodia)
----------------------------------------------------------------------------------------------------------------------------------
Brazil CETIP Corporate Debt
(Central de Custodia e Liquidacao Financiera
de Titulos Privados)
----------------------------------------------------------------------------------------------------------------------------------
Brazil SELIC Government Debt
(Sistema Especial de Liquidacao e Custodia)
----------------------------------------------------------------------------------------------------------------------------------
Bulgaria BNB Government Debt
(Bulgaria National Bank)
----------------------------------------------------------------------------------------------------------------------------------
Bulgaria CDAD Equity
(Central Depository A.D.)
----------------------------------------------------------------------------------------------------------------------------------
Canada CDS Equity, Corporate + Government Debt
(The Canadian Depository for Securities
Limited)
----------------------------------------------------------------------------------------------------------------------------------
Chile DCV Equity, Corporate + Government Debt
(Deposito Central de Valores S.A.)
-------------------------- ------------------------------------------------- -----------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
----------------------------------------------------------------------------------------------------------------------------------
China, Shanghai SSCCRC Equity
(Shanghai Securities Central Clearing and
Registration Corporation)
----------------------------------------------------------------------------------------------------------------------------------
China, Shenzhen SSCC Equity
(Shenzhen Securities Clearing Company, Limited)
----------------------------------------------------------------------------------------------------------------------------------
Colombia DCV Government Debt
(Deposito Central de Valores)
----------------------------------------------------------------------------------------------------------------------------------
Colombia DECEVAL Equity, Corporate + Government Debt
(Deposito Centralizado de Valores de Colombia
S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Croatia SDA Equity + Government Debt
(Central Depository Agency Inc. - Stredisnja
depozitarna agencija d.d.)
----------------------------------------------------------------------------------------------------------------------------------
Croatia Ministry of Finance of the Republic of Croatia Short-term debt issued by the Ministry of Finance.
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Croatia CNB Short-term debt issued by the National Bank of
(Croatian National Bank) Croatia.
----------------------------------------------------------------------------------------------------------------------------------
Czech Republic SCP Equity, Corporate + Government Debt
(Stredisko cennych papiru)
----------------------------------------------------------------------------------------------------------------------------------
Czech Republic CNB Government Debt
(Czech National Bank)
----------------------------------------------------------------------------------------------------------------------------------
Denmark VP Equity, Corporate + Government Debt
(Vaerdipapircentralen A/S)
----------------------------------------------------------------------------------------------------------------------------------
Egypt MCSD Equity + Corporate Debt
(Misr for Clearing, Settlement and Depository,
S.A.E.)
----------------------------------------------------------------------------------------------------------------------------------
Estonia ECDS Equity
(Estonian Central Depository for Securities
Limited - Eesti Vaatpaberite Keskdepositoorium)
---------------------------------------------------------------------------------------------------------------------------------
Euromarket DCC Euro-CDs
(The Depository and Clearing Centre)
----------------------------------------------------------------------------------------------------------------------------------
Euromarket Clearstream Euro-Debt
(Clearstream Banking, S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Euromarket Euroclear Euro-Debt
----------------------------------------------------------------------------------------------------------------------------------
Finland APK Equity, Corporate + Government Debt
(Finnish Central Securities Depository Limited)
----------------------------------------------------------------------------------------------------------------------------------
France SICOVAM Equity, Corporate + Government Debt
(Societe Interprofessionnelle pour la
Compensation des Valeurs Mobilieres, S.A.)
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
----------------------------------------------------------------------------------------------------------------------------------
Germany Clearstream Equity, Corporate + Government Debt
(Clearstream Banking AG)
----------------------------------------------------------------------------------------------------------------------------------
Greece CSD Equity + Corporate Debt
(Central Securities Depository S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Greece BoG Government Debt
(Bank of Greece)
----------------------------------------------------------------------------------------------------------------------------------
Hong Kong HKSCC Equity
(Hong Kong Securities Clearing Company Limited)
----------------------------------------------------------------------------------------------------------------------------------
Hong Kong CMU Corporate + Government Debt
(Central Moneymarkets Unit)
----------------------------------------------------------------------------------------------------------------------------------
Hungary KELER Equity, Corporate + Government Debt
(Central Depository and Clearing House -
Kosponti Elszamolohaz es Ertektar (Budapest)
Rt.)
----------------------------------------------------------------------------------------------------------------------------------
India NSDL Equity
(National Securities Depository Limited)
----------------------------------------------------------------------------------------------------------------------------------
India CDSL Equity
(Central Depository Services (India) Limited)
----------------------------------------------------------------------------------------------------------------------------------
India RBI Government Debt
(Reserve Bank of India)
----------------------------------------------------------------------------------------------------------------------------------
Indonesia KSEI Equity
(PT Kustodian Sentral Efek Indonesia)
----------------------------------------------------------------------------------------------------------------------------------
Ireland CREST Equity + Corporate Debt
(CRESTCo Limited)
----------------------------------------------------------------------------------------------------------------------------------
Ireland CBISSO Government Debt
(Central Bank of Ireland Securities
Settlements Office)
----------------------------------------------------------------------------------------------------------------------------------
Israel TASE Clearing House Equity, Corporate + Government Debt
(Tel Aviv Stock Exchange Clearing House)
----------------------------------------------------------------------------------------------------------------------------------
Italy Monte Titoli S.p.A. Equity + Corporate Debt
----------------------------------------------------------------------------------------------------------------------------------
Italy Banca d'Italia Government Debt
----------------------------------------------------------------------------------------------------------------------------------
Ivory Coast DC/BR Equity
(Le Depositaire Central / Banque de Reglement)
----------------------------------------------------------------------------------------------------------------------------------
Japan JASDEC Equity + Convertible Debt
(Japan Securities Depository Center)
----------------------------------------------------------------------------------------------------------------------------------
Japan BoJ Registered Government Debt
(Bank of Japan)
----------------------------------------------------------------------------------------------------------------------------------
Kazakhstan CSD Equity
(Central Securities Depository CJSC)
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Country Depository Instruments
----------------------------------------------------------------------------------------------------------------------------------
Latvia LCD Equity, Corporate + Government Debt
(Latvian Central Depository)
----------------------------------------------------------------------------------------------------------------------------------
Lebanon Midclear X.X.X. Equity
(Custodian and Clearing Center of Financial
Instruments for Lebanon and the Middle East
X.X.X.)
----------------------------------------------------------------------------------------------------------------------------------
Lithuania CSDL Equity + Government Debt
(Central Securities Depository of Lithuania)
----------------------------------------------------------------------------------------------------------------------------------
Luxembourg Clearstream Equity
(Clearstream Banking S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Malaysia MCD Equity + Corporate Debt
(Malaysian Central Depository Sdn. Bhd.)
----------------------------------------------------------------------------------------------------------------------------------
Mauritius CDS Equity + Corporate Debt
(Central Depository and Settlement Company
Limited)
----------------------------------------------------------------------------------------------------------------------------------
Mexico INDEVAL Equity, Corporate + Government Debt
(S.D. INDEVAL S.A. de C.V.)
----------------------------------------------------------------------------------------------------------------------------------
Morocco Maroclear Equity, Corporate + Government Debt
----------------------------------------------------------------------------------------------------------------------------------
Netherlands NECIGEF Equity, Corporate + Government Debt
(Nederlands Centraal Insituut voor Giraal
Effectenverkeer B.V.)
----------------------------------------------------------------------------------------------------------------------------------
New Zealand NZCSD Equity, Corporate + Government Debt
-----
(New Zealand Central Securities Depository)
-------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
Nigeria CSCS Equity, Corporate + Government Debt
(Central Securities Clearing System Limited)
----------------------------------------------------------------------------------------------------------------------------------
Norway VPS Equity, Corporate + Government Debt
(Verdipapirsentralen)
----------------------------------------------------------------------------------------------------------------------------------
Oman MDSRC Equity
(The Muscat Depository and Securities
Registration Company, S.A.O.C.)
----------------------------------------------------------------------------------------------------------------------------------
Pakistan CDC Equity + Corporate Debt
(Central Depository Company of Pakistan
Limited)
----------------------------------------------------------------------------------------------------------------------------------
Pakistan SBP Government Debt
(State Bank of Pakistan)
----------------------------------------------------------------------------------------------------------------------------------
Peru CAVALI Equity, Corporate + Government Debt
(CAVALI ICLV S.A.)
-------------------------- ------------------------------------------------- -----------------------------------------------------
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COUNTRY DEPOSITORY INSTRUMENTS
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Philippines PCD Equity
(Philippine Central Depository Inc.)
----------------------------------------------------------------------------------------------------------------------------------
Philippines ROSS Government Debt
(Bangko Sentral ng Pilipinas / Register of
Scripless Securities)
---------------------------------------------------------------------------------------------------------------------------------
Poland NDS Equity + Long-Term Government Debt
(National Depository for Securities S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Poland CRT Short-Term Government Debt
(Central Registry of Treasury-Bills)
----------------------------------------------------------------------------------------------------------------------------------
Portugal CVM Equity, Corporate + Government Debt
(Central de Valores Mobiliarios e Sistema de
Liquidacao e Compensacao)
----------------------------------------------------------------------------------------------------------------------------------
Romania SNCDD Equity
(National Company for Clearing, Settlement and
Depository for Securities)
----------------------------------------------------------------------------------------------------------------------------------
Romania BSE Equity
(Bucharest Stock Exchange Registry)
-----------------------------------------------------------------------------------------------------------------------------------
Russia VTB Government Debt (Ministry of Finance Bonds)
(Vneshtorgbank)
----------------------------------------------------------------------------------------------------------------------------------
Russia NDC Equity, Corporate + Government Debt
(National Depository Centre)
----------------------------------------------------------------------------------------------------------------------------------
Russia DCC Equity
(Depository Clearing Company)
----------------------------------------------------------------------------------------------------------------------------------
Singapore CDP Equity + Corporate Debt
(The Central Depository (Pte) Limited)
----------------------------------------------------------------------------------------------------------------------------------
Singapore SGS Government Debt
(Monetary Authority of Singapore / Singapore
Government Securities Book-Entry System)
----------------------------------------------------------------------------------------------------------------------------------
Slovak Republic SCP Equity, Corporate + Government Debt
(Stredisko cennych papierov SR Bratislava,
a.s.)
----------------------------------------------------------------------------------------------------------------------------------
Slovak Republic NBS Government Debt
(National Bank of Slovakia)
----------------------------------------------------------------------------------------------------------------------------------
Slovenia KDD Equity + Corporate Debt (Centralna klirinsko
depotna xxxxxx x.x.)
----------------------------------------------------------------------------------------------------------------------------------
South Africa CDL Corporate + Government Debt
(Central Depository (Pty) Limited)
----------------------------------------------------------------------------------------------------------------------------------
South Africa STRATE Equity
(Share Transactions Totally Electronic)
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Country Depository Instruments
----------------------------------------------------------------------------------------------------------------------------------
South Korea KSD Equity, Corporate + Government Debt
(Korea Securities Depository)
----------------------------------------------------------------------------------------------------------------------------------
Spain SCLV Equity + Corporate Debt
(Servicio de Compensacion y Liquidacion de Valores,
S.A.)
----------------------------------------------------------------------------------------------------------------------------------
Spain CBEO Government Debt
(Banco de Espana / Central Book Entry Office)
----------------------------------------------------------------------------------------------------------------------------------
Sri Lanka CDS Equity
(Central Depository System (Private) Limited)
---------------------------------------------------------------------------------------------------------------------------------
Sweden VPC Equity, Corporate + Government Debt
(Vardepapperscentralen AB)
----------------------------------------------------------------------------------------------------------------------------------
Switzerland SIS Equity, Corporate + Government Debt
(SIS SegaInterSettle AG)
----------------------------------------------------------------------------------------------------------------------------------
Taiwan TSCD Equity + Government Debt
(Taiwan Securities Central Depository Co.,
Ltd.)
----------------------------------------------------------------------------------------------------------------------------------
Thailand TSD Equity, Corporate + Government Debt
(Thailand Securities Depository Company
Limited)
----------------------------------------------------------------------------------------------------------------------------------
Tunisia STICODEVAM Equity + Corporate Debt
(Societe Tunisienne Interprofessionnelle pour
la Compensation et le Depot des Valeurs
Mobilieres)
----------------------------------------------------------------------------------------------------------------------------------
Turkey TAKASBANK Equity + Corporate Debt
(IMKB Takas ve Saklama Bankasi A.S.)
----------------------------------------------------------------------------------------------------------------------------------
Turkey CBT Government Debt
(Central Bank of Turkey)
----------------------------------------------------------------------------------------------------------------------------------
United Kingdom CREST Equity + Corporate Debt
(CRESTCo Limited)
----------------------------------------------------------------------------------------------------------------------------------
United Kingdom CMO Sterling & Euro CDs + CP
(Central Moneymarkets Office)
----------------------------------------------------------------------------------------------------------------------------------
United States DTC Equity + Corporate Debt
(Depository Trust Company)
----------------------------------------------------------------------------------------------------------------------------------
United States PTC Mortgage Back Debt
(Participants Trust Company)
----------------------------------------------------------------------------------------------------------------------------------
United States FED Government Debt
(The Federal Reserve Book-Entry System)
----------------------------------------------------------------------------------------------------------------------------------
Uruguay BCU Government Debt
----------------------------------------------------------------------------------------------------------------------------------
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Country Depository Instruments
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(Banco Central del Uruguay)
----------------------------------------------------------------------------------------------------------------------------------
Venezuela BCV Government Debt
(Banco Central de Venezuela)
----------------------------------------------------------------------------------------------------------------------------------
Zambia CSD Equity + Government Debt
(XxXX Central Shares Depository Limited)
----------------------------------------------------------------------------------------------------------------------------------
Zambia BoZ Government Debt
(Bank of Zambia)
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Schedule C
Information Regarding Country Risk
----------------------------------
1. To aid Fund in its determinations regarding Country Risk, Bank shall
furnish annually and upon the initial placing of Foreign Assets into a country
the following information (check items applicable):
A Opinions of local counsel concerning:
___ i. Whether applicable foreign law would restrict the access afforded Fund's
independent public accountants to books and records kept by an Eligible Foreign
Custodian located in that country.
___ ii. Whether applicable foreign law would restrict the Fund's
ability to recover its assets in the event of the bankruptcy of an Eligible
Foreign Custodian located in that country.
___ iii. Whether applicable foreign law would restrict the Fund's ability to
recover assets that are lost while under the control of an Eligible Foreign
Custodian located in the country.
B. Written information concerning:
___ i. The likelihood of expropriation, nationalization, freezes, or
cofiscation of Fund's assets.
___ ii. Whether difficulties in converting Fund's cash and cash
equivalents to U.S. dollars are reasonably foreseeable.
C. A market report with respect to the following topics:
(i) securities regulatory environment, (ii) foreign ownership restrictions,
(iii) foreign exchange, (iv) securities settlement and registration, (v)
taxation, (vi) market settlement risk, (vii) Eligible Securities Depositories
(including Depository evaluation), if any.
2. Bank shall furnish the following additional information:
Market flashes, including with respect to changes in the
information in market reports.
