ITEM 77Q1a
Amendment to
Investment Advisory Contract
between
Federated Fund for U.S. Government Securities, Inc.
and
Federated Investment Management Company
This Amendment to the Investment Advisory Contract ("Agreement")
dated August 1, 1989, between Federated Fund for U.S. Government Securities,
Inc. ("Fund") and Federated Investment Management Company ("Service
Provider") is made and entered into as of the 1st day of June, 2001.
WHEREAS, the Fund has entered into the Agreement with the
Service Provider;
WHEREAS, the Securities and Exchange Commission has adopted
Regulation S-P at 17 CFR Part 248 to protect the privacy of individuals who
obtain a financial product or service for personal, family or household use;
WHEREAS, Regulation S-P permits financial institutions, such as
the Fund, to disclose "nonpublic personal information" ("NPI") of its
"customers" and "consumers" (as those terms are therein defined in
Regulation S-P) to affiliated and nonaffiliated third parties of the Fund,
without giving such customers and consumers the ability to opt out of such
disclosure, for the limited purposes of processing and servicing transactions
(17 CFR 248.14) ("Section 248.14 NPI"); for specified law enforcement
and miscellaneous purposes (17 CFR 248.15) ("Section 248.15 NPI") ;
and to service providers or in connection with joint marketing arrangements
(17 CFR 248.13) ("Section 248.13 NPI");
WHEREAS, Regulation S-P provides that the right of a customer
and consumer to opt out of having his or her NPI disclosed pursuant to 17
CFR 248.7 and 17 CFR 248.10 does not apply when the NPI is disclosed
to service providers or in connection with joint marketing arrangements,
provided the Fund and third party enter into a contractual agreement that
prohibits the third party from disclosing or using the information other
than to carry out the purposes for which the Fund disclosed the information
(17 CFR 248.13);
NOW, THEREFORE, the parties intending to be legally bound agree
as follows:
The Fund and the Service Provider hereby acknowledge that the Fund
may disclose shareholder NPI to the Service Provider as agent of the Fund
and solely in furtherance of fulfilling the Service Provider's contractual
obligations under the Agreement in the ordinary course of business to support
the Fund and its shareholders.
The Service Provider hereby agrees to be bound to use and redisclose
such NPI only for the limited purpose of fulfilling its duties and obligations
under the Agreement, for law enforcement and miscellaneous purposes as
permitted in 17 CFR 248.15, or in connection with joint marketing
arrangements that the Funds may establish with the Service Provider in
accordance with the limited exception set forth in 17 CFR 248.13.
The Service Provider further represents and warrants that, in
accordance with 17 CFR 248.30, it has implemented, and will
continue to carry out for the term of the Agreement, policies and
procedures reasonably designed to:
* insure the security and confidentiality of records and NPI
of Fund customers,
* protect against any anticipated threats or hazards to the
security or integrity of Fund customer records and NPI, and
* protect against unauthorized access to or use of such Fund
customer records or NPI that could result in substantial harm or
inconvenience to any Fund customer.
4. The Service Provider may redisclose Section 248.13 NPI only to:
(a) the Funds and affiliated persons of the Funds ("Fund Affiliates");
(b) affiliated persons of the Service Provider ("Service Provider
Affiliates") (which in turn may disclose or use the information
only to the extent permitted under the original receipt); (c) a third
party not affiliated with the Service Provider of the Funds
("Nonaffiliated Third Party") under the service and processing
(248.14) or miscellaneous (248.15) exceptions, but only in the
ordinary course of business to carry out the activity covered by
the exception under which the Service Provider received the
information in the first instance; and (d) a Nonaffiliated Third
Party under the service provider and joint marketing exception
(248.13), provided the Service Provider enters into a written
contract with the Nonaffiliated Third Party that prohibits the
Nonaffiliated Third Party from disclosing or using the
information other than to carry out the purposes for which
the Funds disclosed the information in the first instance.
5. The Service Provider may redisclose Section 248.14 NPI and Section 248.15
NPI to: (a) the Funds and Fund Affiliates; (b) Service Provider Affiliates
(which in turn may disclose the information to the same extent permitted under
the original receipt); and (c) a Nonaffiliated Third Party to whom the Funds
might lawfully have disclosed NPI directly.
6. The Service Provider is obligated to maintain beyond the termination
date of the Agreement the confidentiality of any NPI it receives from the
Fund in connection with the Agreement or any joint marketing arrangement,
and hereby agrees that this Amendment shall survive such termination.
WITNESS the due execution hereof this 1st day of June, 2001.
Federated Fund for U.S. Government Securities, Inc.
By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Name: J. Xxxxxxxxxxx Xxxxxxx
Title: President
Federated Investment Management Company
By: /s/ G. Xxxxxx Xxxxxxxxx
Name: G. Xxxxxx Xxxxxxxxx
Title: Vice President
Current as of: 8/18/94
