CUSTODIAN CONTRACT
Between
ALLIANCE INSTITUTIONAL FUNDS, INC.
and
STATE STREET BANK AND TRUST COMPANY
Page
TABLE OF CONTENTS
1. Employment of Custodian and Property to be
Held By It.............................................. 1
2. Duties of the Custodian with Respect to
Property of the Fund Held by the Custodian
in the United States ................................... 2
2.1 Holding Securities................................. 2
2.2 Delivery of Securities ............................ 2
2.3 Registration of Securities......................... 4
2.4 Bank Accounts...................................... 5
2.5 Availability of Federal Funds...................... 5
2.6 Collection of Income............................... 5
2.7 Payment of Fund Monies............................. 5
2.8 Liability for Payment in Advance of
Receipt of Securities Purchased.................... 7
2.9 Appointment of Agents.............................. 7
2.10 Deposit of Fund Assets in U.S.
Securities System.................................. 7
2.11 Fund Assets Held in the Custodian's
Direct Paper System................................ 8
2.12 Segregated Account................................. 9
2.13 Ownership Certificates for Tax Purposes............ 10
2.14 Proxies............................................ 10
2.15 Communications Relating to Portfolio
Securities......................................... 10
3. Duties of the Custodian with Respect to
Property of the Fund Held Outside of the
United States .......................................... 11
3.1 Appointment of Foreign Sub-Custodians.............. 11
3.2 Assets to be Held.................................. 11
3.3 Foreign Securities Systems......................... 11
3.4 Holding Securities................................. 11
3.5 Agreements with Foreign Banking
Institutions....................................... 12
3.6 Access of Independent Accountants of
the Fund........................................... 12
3.7 Reports by Custodian............................... 12
3.8 Transactions in Foreign Custody Account............ 12
3.9 Liability of Foreign Sub-Custodians................ 13
3.10 Liability of Custodian............................. 13
3.11 Reimbursement for Advances......................... 13
3.12 Monitoring Responsibilities........................ 14
3.13 Branches of U.S. Banks............................. 14
3.14 Tax Law............................................ 14
4. Payments for Sales or Repurchase or
Redemptions of Shares of the Fund ...................... 14
5. Proper Instructions .................................... 15
6. Actions Permitted Without Express Authority............. 15
7. Evidence of Authority .................................. 16
8. Duties of Custodian With Respect to the
Books of Account and Calculation of Net
Asset Value and Net Income ............................. 16
9. Records................................................. 16
10. Opinion of Fund's Independent Accountants............... 17
11. Reports to Fund by Independent Public
Accountants ............................................ 17
12. Compensation of Custodian............................... 17
13. Responsibility of Custodian............................. 17
14. Effective Period, Termination and Amendment............. 19
15. Successor Custodian .................................... 19
16. Interpretive and Additional Provisions.................. 20
17. Additional Funds........................................ 20
18. Massachusetts Law to Apply ............................. 21
19. Prior Contracts......................................... 21
20. Reproduction of Documents .............................. 21
21. Shareholder Communications.............................. 21
CUSTODIAN CONTRACT
This Custodian Contract between Alliance Institutional
Funds, Inc., a corporation organized and existing under the
laws of Maryland, having its principal place of business at
X.X. Xxx 0000 Xxxxxxxx, Xxx Xxxxxx 00000-0000 hereinafter
called the "Fund", and State Street Bank and Trust Company,
a Massachusetts trust company, having its principal place of
business at 000 Xxxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx,
00000, hereinafter called the "Custodian",
WITNESSETH:
WHEREAS, the Fund is authorized to issue shares in
separate series, with each such series representing
interests in a separate portfolio of securities and other
assets; and
WHEREAS, the Fund intends to initially offer shares in
three series, the Alliance Premier Growth Institutional
Fund, Alliance Quasar Institutional Fund, Alliance Real
Estate Investment Institutional Fund (such series together
with all other series subsequently established by the Fund
and made subject to this Contract in accordance with
paragraph 17, being herein referred to as the
"Portfolio(s)");
NOW THEREFORE, in consideration of the mutual covenants
and agreements hereinafter contained, the parties hereto
agree as follows:
1. Employment of Custodian and Property to be Held by It
The Fund hereby employs the Custodian as the custodian
of the assets of the Portfolios of the Fund, including
securities which the Fund, on behalf of the applicable
Portfolio desires to be held in places within the United
States ("domestic securities") and securities it desires to
be held outside the United States ("foreign securities")
pursuant to the provisions of the Articles of Incorporation.
The Fund on behalf of the Portfolio(s) agrees to deliver to
the Custodian all securities and cash of the Portfolios, and
all payments of income, payments of principal or capital
distributions received by it with respect to all securities
owned by the Portfolio(s) from time to time, and the cash
consideration received by it for such new or treasury shares
of capital stock of the Fund representing interests in the
Portfolios, ("Shares") as may be issued or sold from time to
time. The Custodian shall not be responsible for any
property of a Portfolio held or received by the Portfolio
and not delivered to the Custodian.
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Upon receipt of "Proper Instructions" (within the
meaning of Article 5), the Custodian shall on behalf of the
applicable Portfolio(s) from time to time employ one or more
sub-custodians, located in the United States but only in
accordance with an applicable vote by the Board of Directors
of the Fund on behalf of the applicable Portfolio(s), and
provided that the Custodian shall have no more or less
responsibility or liability to the Fund on account of any
actions or omissions of any sub-custodian so employed than
any such sub-custodian has to the Custodian. The Custodian
may employ as sub-custodian for the Fund's foreign
securities on behalf of the applicable Portfolio(s) the
foreign banking institutions and foreign securities
depositories designated in Schedule A hereto but only in
accordance with the provisions of Article 3.
2. Duties of the Custodian with Respect to Property of
the Fund Held By the Custodian in the United States
2.1 Holding Securities. The Custodian shall hold and
physically segregate for the account of each
Portfolio all non-cash property, to be held by it
in the United States including all domestic
securities owned by such Portfolio, other than (a)
securities which are maintained pursuant to Section
2.10 in a clearing agency which acts as a
securities depository or in a book-entry system
authorized by the U.S. Department of the Treasury
and certain federal agencies (each, a "U.S.
Securities System") and (b) commercial paper of an
issuer for which State Street Bank and Trust
Company acts as issuing and paying agent ("Direct
Paper") which is deposited and/or maintained in the
Direct Paper System of the Custodian (the "Direct
Paper System") pursuant to Section 2.11.
2.2 Delivery of Securities. The Custodian shall release
and deliver domestic securities owned by a
Portfolio held by the Custodian or in a U.S.
Securities System account of the Custodian or in
the Custodian's Direct Paper book entry system
account ("Direct Paper System Account") only upon
receipt of Proper Instructions from the Fund on
behalf of the applicable Portfolio, which may be
continuing instructions when deemed appropriate by
the parties, and only in the following cases:
1) Upon sale of such securities for the account
of the Portfolio and receipt of payment
therefor;
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2) Upon the receipt of payment in connection with
any repurchase agreement related to such
securities entered into by the Portfolio;
3) In the case of a sale effected through a U.S.
Securities System, in accordance with the
provisions of Section 2.10 hereof;
4) To the depository agent in connection with
tender or other similar offers for securities
of the Portfolio;
5) To the issuer thereof or its agent when such
securities are called, redeemed, retired or
otherwise become payable; provided that, in
any such case, the cash or other
consideration is to be delivered to the
Custodian;
6) To the issuer thereof, or its agent, for
transfer into the name of the Portfolio or
into the name of any nominee or nominees of
the Custodian or into the name or nominee name
of any agent appointed pursuant to Section 2.9
or into the name or nominee name of any sub-
custodian appointed pursuant to Article 1; or
for exchange for a different number of bonds,
certificates or other evidence representing
the same aggregate face amount or number of
units; provided that, in any such case, the
new securities are to be delivered to the
Custodian;
7) Upon the sale of such securities for the
account of the Portfolio, to the broker or its
clearing agent, against a receipt, for
examination in accordance with "street
delivery" custom; provided that in any such
case, the Custodian shall have no
responsibility or liability for any loss
arising from the delivery of such securities
prior to receiving payment for such securities
except as may arise from the Custodian's own
negligence or willful misconduct;
8) For exchange or conversion pursuant to any
plan of merger, consolidation,
recapitalization, reorganization or
readjustment of the securities of the issuer
of such securities, or pursuant to provisions
for conversion contained in such securities,
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or pursuant to any deposit agreement; provided
that, in any such case, the new securities and
cash, if any, are to be delivered to the
Custodian;
9) In the case of warrants, rights or similar
securities, the surrender thereof in the
exercise of such warrants, rights or similar
securities or the surrender of interim
receipts or temporary securities for
definitive securities; provided that, in any
such case, the new securities and cash, if
any, are to be delivered to the Custodian;
10) For delivery in connection with any loans of
securities made by the Portfolio, but only
against receipt of adequate collateral as
agreed upon from time to time by the Custodian
and the Fund on behalf of the Portfolio, which
may be in the form of cash or obligations
issued by the United States government, its
agencies or instrumentalities, except that in
connection with any loans for which collateral
is to be credited to the Custodian's account
in the book-entry system authorized by the
U.S. Department of the Treasury, the Custodian
will not be held liable or responsible for the
delivery of securities owned by the Portfolio
prior to the receipt of such collateral;
11) For delivery as security in connection with
any borrowings by the Fund on behalf of the
Portfolio requiring a pledge of assets by the
Fund on behalf of the Portfolio, but only
against receipt of amounts borrowed;
12) For delivery in accordance with the provisions
of any agreement among the Fund on behalf of
the Portfolio, 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 Portfolio
of the Fund;
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13) For delivery in accordance with the provisions
of any agreement among the Fund on behalf of
the Portfolio, the Custodian, and a Futures
Commission Merchant registered under the
Commodity Exchange Act, relating to compliance
with the rules of the Commodity Futures
Trading Commission and/or any Contract Market,
or any similar organization or organizations,
regarding account deposits in connection with
transactions by the Portfolio of the Fund;
14) Upon receipt of instructions from the transfer
agent ("Transfer Agent") for the Fund, for
delivery to such Transfer Agent or to the
holders of shares in connection with
distributions in kind, as may be described
from time to time in the currently effective
prospectus and statement of additional
information of the Fund, related to the
Portfolio ("Prospectus"), in satisfaction of
requests by holders of Shares for repurchase
or redemption; and
15) For any other proper corporate purpose, but
only upon receipt of, in addition to proper
instructions from the Fund on behalf of the
applicable Portfolio from a person authorized
to give same, specifying the securities of the
Portfolio to be delivered, setting forth the
purpose for which such delivery is to be made,
declaring such purpose to be a proper
corporate purpose, and naming the person or
persons to whom delivery of such securities
shall be made.
2.3 Registration of Securities. Domestic securities
held by the Custodian (other than bearer
securities) shall be registered in the name of the
Portfolio or in the name of any nominee of the Fund
on behalf of the Portfolio or of any nominee of the
Custodian which nominee shall be assigned
exclusively to the Portfolio, unless the Fund has
authorized in writing the appointment of a nominee
to be used in common with other registered
investment companies having the same investment
adviser as the Portfolio, or in the name or nominee
name of any agent appointed pursuant to Section 2.9
or in the name or nominee name of any sub-custodian
appointed pursuant to Article 1. All securities
accepted by the Custodian on behalf of the
Portfolio under the terms of this Contract shall be
5
in "street name" or other good delivery form. If,
however, the Fund directs the Custodian to maintain
securities in "street name", the Custodian shall
utilize its best efforts only to timely collect
income due the Fund on such securities and to
notify the Fund on a best efforts basis only of
relevant corporate actions including, without
limitation, pendency of calls, maturities, tender
or exchange offers.
2.4 Bank Accounts. The Custodian shall open and
maintain a separate bank account or accounts in the
United States in the name of each Portfolio of the
Fund, subject only to draft or order by the
Custodian acting pursuant to the terms of this
Contract, and shall hold in such account or
accounts, subject to the provisions hereof, all
cash received by it from or for the account of the
Portfolio, other than cash maintained by the
Portfolio in a bank account established and used in
accordance with Rule 17f-3 under the Investment
Company Act of 1940. Funds held by the Custodian
for a Portfolio may be deposited by it to its
credit as Custodian in the Banking Department of
the Custodian or in such other banks or trust
companies as it may in its discretion deem
necessary or desirable; provided, however, that
every such bank or trust company shall be qualified
to act as a custodian under the Investment Company
Act of 1940 and that each such bank or trust
company and the funds to be deposited with each
such bank or trust company shall on behalf of each
applicable Portfolio be approved by vote of a
majority of the Board of Directors of the Fund.
Such funds shall be deposited by the Custodian in
its capacity as Custodian and shall be withdrawable
by the Custodian only in that capacity.
2.5 Availability of Federal Funds. Upon mutual
agreement between the Fund on behalf of each
applicable Portfolio and the Custodian, the
Custodian shall, upon the receipt of Proper
Instructions from the Fund on behalf of a
Portfolio, make federal funds available to such
Portfolio as of specified times agreed upon from
time to time by the Fund and the Custodian in the
amount of checks received in payment for Shares of
such Portfolio which are deposited into the
Portfolio's account.
6
2.6 Collection of Income. Subject to the provisions of
Section 2.3, the Custodian shall collect on a
timely basis all income and other payments with
respect to registered domestic securities held
hereunder to which each Portfolio shall be entitled
either by law or pursuant to custom in the
securities business, and shall collect on a timely
basis all income and other payments with respect to
bearer domestic securities if, on the date of
payment by the issuer, such securities are held by
the Custodian or its agent thereof and shall credit
such income, as collected, to such Portfolio's
custodian account. Without limiting the generality
of the foregoing, the Custodian shall detach and
present for payment all coupons and other income
items requiring presentation as and when they
become due and shall collect interest when due on
securities held hereunder. Income due each
Portfolio on securities loaned pursuant to the
provisions of Section 2.2 (10) shall be the
responsibility of the Fund. The Custodian will have
no duty or responsibility in connection therewith,
other than to provide the Fund with such
information or data as may be necessary to assist
the Fund in arranging for the timely delivery to
the Custodian of the income to which the Portfolio
is properly entitled.
2.7 Payment of Fund Monies. Upon receipt of Proper
Instructions from the Fund on behalf of the
applicable Portfolio, which may be continuing
instructions when deemed appropriate by the
parties, the Custodian shall pay out monies of a
Portfolio in the following cases only:
1) Upon the purchase of domestic securities,
options, futures contracts or options on
futures contracts for the account of the
Portfolio but only (a) against the delivery of
such securities or evidence of title to such
options, futures contracts or options on
futures contracts to the Custodian (or any
bank, banking firm or trust company doing
business in the United States or abroad which
is qualified under the Investment Company Act
of 1940, as amended, to act as a custodian and
has been designated by the Custodian as its
agent for this purpose) registered in the name
of the Portfolio or in the name of a nominee
of the Custodian referred to in Section 2.3
hereof or in proper form for transfer; (b) in
7
the case of a purchase effected through a U.S.
Securities System, in accordance with the
conditions set forth in Section 2.10 hereof;
(c) in the case of a purchase involving the
Direct Paper System, in accordance with the
conditions set forth in Section 2.11; (d) in
the case of repurchase agreements entered into
between the Fund on behalf of the Portfolio
and the Custodian, or another bank, or a
broker-dealer which is a member of NASD, (i)
against delivery of the securities either in
certificate form or through an entry crediting
the Custodian's account at the Federal Reserve
Bank with such securities or (ii) against
delivery of the receipt evidencing purchase by
the Portfolio of securities owned by the
Custodian along with written evidence of the
agreement by the Custodian to repurchase such
securities from the Portfolio or (e) for
transfer to a time deposit account of the Fund
in any bank, whether domestic or foreign; such
transfer may be effected prior to receipt of a
confirmation from a broker and/or the
applicable bank pursuant to Proper
Instructions from the Fund as defined in
Article 5;
2) In connection with conversion, exchange or
surrender of securities owned by the Portfolio
as set forth in Section 2.2 hereof;
3) For the redemption or repurchase of Shares
issued by the Portfolio as set forth in
Article 4 hereof;
4) For the payment of any expense or liability
incurred by the Portfolio, including but not
limited to the following payments for the
account of the Portfolio: interest, taxes,
management, accounting, transfer agent and
legal fees, and operating expenses of the Fund
whether or not such expenses are to be in
whole or part capitalized or treated as
deferred expenses;
5) For the payment of any dividends on Shares of
the Portfolio declared pursuant to the
governing documents of the Fund;
8
6) For payment of the amount of dividends
received in respect of securities sold short;
and
7) For any other proper purpose, but only upon
receipt of Proper Instructions from the Fund
on behalf of the applicable Portfolio, from a
person authorized to give same, specifying the
amount of such payment, setting forth the
purpose for which such payment is to be made,
declaring such purpose to be a proper purpose,
and naming the person or persons to whom such
payment is to be made.
2.8 Liability for Payment in Advance of Receipt of
Securities Purchased. Except as specifically stated
otherwise in this Contract, in any and every case
where payment for purchase of domestic securities
for the account of a Portfolio is made by the
Custodian in advance of receipt of the securities
purchased in the absence of specific written
instructions from the Fund on behalf of such
Portfolio to so pay in advance, the Custodian shall
be absolutely liable to the Fund for such
securities to the same extent as if the securities
had been received by the Custodian.
2.9 Appointment of Agents. The Custodian may at any
time or times in its discretion appoint (and may at
any time remove) any other bank or trust company
which is itself qualified under the Investment
Company Act of 1940, as amended, to act as a
custodian, as its agent to carry out such of the
provisions of this Article 2 as the Custodian may
from time to time direct; provided, however, that
the appointment of any agent shall not relieve the
Custodian of its responsibilities or liabilities
hereunder.
2.10 Deposit of Fund Assets in U.S. Securities Systems.
The Custodian may deposit and/or maintain
securities owned by a Portfolio in a clearing
agency registered with the Securities and Exchange
Commission under Section 17A of the Securities
Exchange Act of 1934, which acts as a securities
depository, or in the book-entry system authorized
by the U.S. Department of the Treasury and certain
federal agencies, collectively referred to herein
as "U.S. Securities System" in accordance with
applicable Federal Reserve Board and Securities and
9
Exchange Commission rules and regulations, if any,
and subject to the following provisions:
1) The Custodian may keep securities of the
Portfolio in a U.S. Securities System provided
that such securities are represented in an
account ( for the purposes of this Section
2.10, the "Account") of the Custodian in the
U.S. Securities System which shall not include
any assets of the Custodian other than assets
held as a fiduciary, custodian or otherwise
for customers;
2) The records of the Custodian with respect to
securities of the Portfolio which are
maintained in a U.S. Securities System shall
identify by book-entry those securities
belonging to the Portfolio;
3) The Custodian shall pay for securities
purchased for the account of the Portfolio
upon (i) receipt of advice from the U.S.
Securities System that such securities have
been transferred to the Account, and (ii) the
making of an entry on the records of the
Custodian to reflect such payment and transfer
for the account of the Portfolio. The
Custodian shall transfer securities sold for
the account of the Portfolio upon (i) receipt
of advice from the U.S. Securities System that
payment for such securities has been
transferred to the Account, and (ii) the
making of an entry on the records of the
Custodian to reflect such transfer and payment
for the account of the Portfolio. Copies of
all advices from the U.S. Securities System of
transfers of securities for the account of the
Portfolio shall identify the Portfolio, be
maintained for the Portfolio by the Custodian
and be provided to the Fund at its request.
Upon request, the Custodian shall furnish the
Fund on behalf of the Portfolio confirmation
of each transfer to or from the account of the
Portfolio in the form of a written advice or
notice and shall furnish to the Fund on behalf
of the Portfolio copies of daily transaction
sheets reflecting each day's transactions in
the U.S. Securities System for the account of
the Portfolio;
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4) The Custodian shall provide the Fund for the
Portfolio with any report obtained by the
Custodian on the U.S. Securities System's
accounting system, internal accounting control
and procedures for safeguarding securities
deposited in the U.S. Securities System;
5) The Custodian shall have received from the
Fund on behalf of the Portfolio the initial or
annual certificate, as the case may be,
required by Article 14 hereof; and
6) Anything to the contrary in this Contract
notwithstanding, the Custodian shall be liable
to the Fund for the benefit of the Portfolio
for any loss or damage to the Portfolio
resulting from use of the U.S. Securities
System by reason of any negligence,
misfeasance or misconduct of the Custodian or
any of its agents or of any of its or their
employees or from failure of the Custodian or
any such agent to enforce effectively such
rights as it may have against the U.S.
Securities System; at the election of the
Fund, it shall be entitled to be subrogated to
the rights of the Custodian with respect to
any claim against the U.S. Securities System
or any other person which the Custodian may
have as a consequence of any such loss or
damage if and to the extent that the Portfolio
has not been made whole for any such loss or
damage.
2.11 Fund Assets Held in the Custodian's Direct Paper
System. The Custodian may deposit and/or maintain
securities owned by a Portfolio in the Direct Paper
System of the Custodian subject to the following
provisions:
1) No transaction relating to securities in the
Direct Paper System will be effected in the
absence of Proper Instructions from the Fund
on behalf of the Portfolio;
2) The Custodian may keep securities of the
Portfolio in the Direct Paper System only if
such securities are represented in the Direct
Paper system Account, which Account shall not
include any assets of the Custodian other than
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assets held as a fiduciary, custodian or
otherwise for customers;
3) The records of the Custodian with respect to
securities of the Portfolio which are
maintained in the Direct Paper System shall
identify by book-entry those securities
belonging to the Portfolio;
4) The Custodian shall pay for securities
purchased for the account of the Portfolio
upon the making of an entry on the records of
the Custodian to reflect such payment and
transfer of securities to the account of the
Portfolio. The Custodian shall transfer
securities sold for the account of the
Portfolio upon the making of an entry on the
records of the Custodian to reflect such
transfer and receipt of payment for the
account of the Portfolio;
5) The Custodian shall furnish the Fund on behalf
of the Portfolio confirmation of each transfer
to or from the account of the Portfolio, in
the form of a written advice or notice, of
Direct Paper on the next business day
following such transfer and shall furnish to
the Fund on behalf of the Portfolio copies of
daily transaction sheets reflecting each day's
transaction in the U.S. Securities System for
the account of the Portfolio; and
6) The Custodian shall provide the Fund on behalf
of the Portfolio with any report on its system
of internal accounting control as the Fund may
reasonably request from time to time.
2.12 Segregated Account. The Custodian shall upon
receipt of Proper Instructions from the Fund on
behalf of each applicable Portfolio establish and
maintain a segregated account or accounts for and
on behalf of each such Portfolio, into which
account or accounts may be transferred cash and/or
securities, including securities maintained in an
account by the Custodian pursuant to Section 2.10
hereof, (i) in accordance with the provisions of
any agreement among the Fund on behalf of the
Portfolio, the Custodian and a broker-dealer
registered under the Exchange Act and a member of
the NASD (or any futures commission merchant
registered under the Commodity Exchange Act),
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relating to compliance with the rules of The
Options Clearing Corporation and of any registered
national securities exchange (or the Commodity
Futures Trading Commission or any registered
contract market), or of any similar organization or
organizations, regarding escrow or other
arrangements in connection with transactions by the
Portfolio, (ii) for purposes of segregating cash or
government securities in connection with options
purchased, sold or written by the Portfolio or
commodity futures contracts or options thereon
purchased or sold by the Portfolio, (iii) for the
purposes of compliance by the Portfolio with the
procedures required by Investment Company Act
Release No. 10666, or any subsequent release or
releases of the Securities and Exchange Commission
relating to the maintenance of segregated accounts
by registered investment companies and (iv) for
other proper corporate purposes, but only, in the
case of clause (iv), upon receipt of, Proper
Instructions on behalf of the applicable Portfolio
from a person authorized to give same, setting
forth the purpose or purposes of such segregated
account and declaring such purposes to be proper
corporate purposes.
2.13 Ownership Certificates for Tax Purposes. The
Custodian shall execute ownership and other
certificates and affidavits for all federal and
state tax purposes in connection with receipt of
income or other payments with respect to domestic
securities of each Portfolio held by it and in
connection with transfers of securities.
2.14 Proxies. The Custodian shall, with respect to the
domestic securities held hereunder, cause to be
promptly executed by the registered holder of such
securities, if the securities are registered
otherwise than in the name of the Portfolio or a
nominee of the Portfolio, all proxies, without
indication of the manner in which such proxies are
to be voted, and shall promptly deliver to the
Portfolio such proxies, all proxy soliciting
materials and all notices relating to such
securities.
2.15 Communications Relating to Portfolio Securities.
Subject to the provisions of Section 2.3, the
Custodian shall transmit promptly to the Fund for
each Portfolio all written information (including,
without limitation, pendency of calls and
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maturities of domestic securities and expirations
of rights in connection therewith and notices of
exercise of call and put options written by the
Fund on behalf of the Portfolio and the maturity of
futures contracts purchased or sold by the
Portfolio) received by the Custodian from issuers
of the securities being held for the Portfolio.
With respect to tender or exchange offers, the
Custodian shall transmit promptly to the Portfolio
all written information received by the Custodian
from issuers of the securities whose tender or
exchange is sought and from the party (or his
agents) making the tender or exchange offer. If the
Portfolio desires to take action with respect to
any tender offer, exchange offer or any other
similar transaction, the Portfolio shall notify the
Custodian at least three business days prior to the
date on which the Custodian is to take such action.
3. Duties of the Custodian with Respect to Property of
the Fund Held Outside of the United States
3.1 Appointment of Foreign Sub-Custodians. The Fund
hereby authorizes and instructs the Custodian to
employ as sub-custodians for the Portfolio's
securities and other assets maintained outside the
United States the foreign banking institutions and
foreign securities depositories designated on
Schedule A hereto ("foreign sub-custodians"). Upon
receipt of "Proper Instructions", as defined in
Section 5 of this Contract, together with a
certified resolution of the Fund's Board of
Directors, the Custodian and the Fund may agree to
amend Schedule A hereto from time to time to
designate additional foreign banking institutions
and foreign securities depositories to act as sub-
custodian. Upon receipt of Proper Instructions, the
Fund may instruct the Custodian to cease the
employment of any one or more such sub-custodians
for maintaining custody of the Portfolio's assets.
3.2 Assets to be Held. The Custodian shall limit the
securities and other assets maintained in the
custody of the foreign sub-custodians to: (a)
"foreign securities", as defined in paragraph
(c)(1) of Rule 17f-5 under the Investment Company
Act of 1940, and (b) cash and cash equivalents in
such amounts as the Custodian or the Fund may
determine to be reasonably necessary to effect the
Portfolio's foreign securities transactions. The
Custodian shall identify on its books as belonging
14
to the Fund, the foreign securities of the Fund
held by each foreign sub-custodian.
3.3 Foreign Securities Systems. Except as may otherwise
be agreed upon in writing by the Custodian and the
Fund, assets of the Portfolios shall be maintained
in a clearing agency which acts as a securities
depository or in a book-entry system for the
central handling of securities located outside of
the United States (each a "Foreign Securities
System") only through arrangements implemented by
the foreign banking institutions serving as sub-
custodians pursuant to the terms hereof (Foreign
Securities Systems and U.S. Securities Systems are
collectively referred to herein as the "Securities
Systems"). Where possible, such arrangements shall
include entry into agreements containing the
provisions set forth in Section 3.5 hereof.
3.4 Holding Securities. The Custodian may hold
securities and other non-cash property for all of
its customers, including the Fund, with a foreign
sub-custodian in a single account that is
identified as belonging to the Custodian for the
benefit of its customers, provided however, that
(i) the records of the Custodian with respect to
securities and other non-cash property of the Fund
which are maintained in such account shall identify
by book-entry those securities and other non-cash
property belonging to the Fund and (ii) the
Custodian shall require that securities and other
non-cash property so held by the foreign sub-
custodian be held separately from any assets of the
foreign sub-custodian or of others.
3.5 Agreements with Foreign Banking Institutions. Each
agreement with a foreign banking institution shall
provide that: (a) the assets of each Portfolio will
not be subject to any right, charge, security
interest, lien or claim of any kind in favor of the
foreign banking institution or its creditors or
agent, except a claim of payment for their safe
custody or administration; (b) beneficial ownership
for the assets of each Portfolio will be freely
transferable without the payment of money or value
other than for custody or administration; (c)
adequate records will be maintained identifying the
assets as belonging to each applicable Portfolio;
(d) officers of or auditors employed by, or other
representatives of the Custodian, including to the
extent permitted under applicable law the
15
independent public accountants for the Fund, will
be given access to the books and records of the
foreign banking institution relating to its actions
under its agreement with the Custodian; and (e)
assets of the Portfolios held by the foreign sub-
custodian will be subject only to the instructions
of the Custodian or its agents.
3.6 Access of Independent Accountants of the Fund. Upon
request of the Fund, the Custodian will use its
best efforts to arrange for the independent
accountants of the Fund to be afforded access to
the books and records of any foreign banking
institution employed as a foreign sub-custodian
insofar as such books and records relate to the
performance of such foreign banking institution
under its agreement with the Custodian.
3.7 Reports by Custodian. The Custodian will supply to
the Fund from time to time, as mutually agreed
upon, statements in respect of the securities and
other assets of the Portfolio(s) held by foreign
sub-custodians, including but not limited to an
identification of entities having possession of the
Portfolio(s) securities and other assets and
advices or notifications of any transfers of
securities to or from each custodial account
maintained by a foreign banking institution for the
Custodian on behalf of each applicable Portfolio
indicating, as to securities acquired for a
Portfolio, the identity of the entity having
physical possession of such securities.
3.8 Transactions in Foreign Custody Account. (a) Except
as otherwise provided in paragraph (b) of this
Section 3.8, the provision of Sections 2.2 and 2.7
of this Contract shall apply, mutatis mutandis to
the foreign securities of the Fund held outside the
United States by foreign sub-custodians. (b)
Notwithstanding any provision of this Contract to
the contrary, settlement and payment for securities
received for the account of each applicable
Portfolio and delivery of securities maintained for
the account of each applicable Portfolio may be
effected in accordance with the customary
established securities trading or securities
processing practices and procedures in the
jurisdiction or market in which the transaction
occurs, including, without limitation, delivering
securities to the purchaser thereof or to a dealer
therefor (or an agent for such purchaser or dealer)
16
against a receipt with the expectation of receiving
later payment for such securities from such
purchaser or dealer. (c) Securities maintained in
the custody of a foreign sub-custodian may be
maintained in the name of such entity's nominee to
the same extent as set forth in Section 2.3 of this
Contract, and the Fund agrees to hold any such
nominee harmless from any liability as a holder of
record of such securities.
3.9 Liability of Foreign Sub-Custodians. Each agreement
pursuant to which the Custodian employs a foreign
banking institution as a foreign sub-custodian
shall require the institution to exercise
reasonable care in the performance of its duties
and to indemnify, and hold harmless, the Custodian
and Fund from and against any loss, damage, cost,
expense, liability or claim arising out of or in
connection with the institution's performance of
such obligations. At the election of the Fund, it
shall be entitled to be subrogated to the rights of
the Custodian with respect to any claims against a
foreign banking institution as a consequence of any
such loss, damage, cost, expense, liability or
claim if and to the extent that the Fund has not
been made whole for any such loss, damage, cost,
expense, liability or claim.
3.10 Liability of Custodian. The Custodian shall be
liable for the acts or omissions of a foreign
banking institution to the same extent as set forth
with respect to sub-custodians generally in this
Contract and, regardless of whether assets are
maintained in the custody of a foreign banking
institution, a foreign securities depository or a
branch of a U.S. bank as contemplated by paragraph
3.13 hereof, the Custodian shall not be liable for
any loss, damage, cost, expense, liability or claim
resulting from nationalization, expropriation,
currency restrictions, or acts of war or terrorism
or any loss where the sub-custodian has otherwise
exercised reasonable care. Notwithstanding the
foregoing provisions of this paragraph 3.10, in
delegating custody duties to State Street London
Ltd., the Custodian shall not be relieved of any
responsibility to the Fund for any loss due to such
delegation, except such loss as may result from (a)
political risk (including, but not limited to,
exchange control restrictions, confiscation,
expropriation, nationalization, insurrection, civil
strife or armed hostilities) or (b) other losses
17
(excluding a bankruptcy or insolvency of State
Street London Ltd. not caused by political risk)
due to Acts of God, nuclear incident or other
losses under circumstances where the Custodian and
State Street London Ltd. have exercised reasonable
care.
3.11 Reimbursement for Advances. If the Fund requires
the Custodian to advance cash or securities for any
purpose for the benefit of a Portfolio including
the purchase or sale of foreign exchange or of
contracts for foreign exchange, or in the event
that the Custodian or its nominee shall incur or be
assessed any taxes, charges, expenses, assessments,
claims or liabilities in connection with the
performance of this Contract, except such as may
arise from its or its nominee's own negligent
action, negligent failure to act or willful
misconduct, any property at any time held for the
account of the applicable Portfolio shall be
security therefor and should the Fund fail to repay
the Custodian promptly, the Custodian shall be
entitled to utilize available cash and to dispose
of such Portfolio's assets to the extent necessary
to obtain reimbursement.
3.12 Monitoring Responsibilities. The Custodian shall
furnish annually to the Fund, during the month of
June, information concerning the foreign sub-
custodians employed by the Custodian. Such
information shall be similar in kind and scope to
that furnished to the Fund in connection with the
initial approval of this Contract. In addition, the
Custodian will promptly inform the Fund in the
event that the Custodian learns of a material
adverse change in the financial condition of a
foreign sub-custodian or any material loss of the
assets of the Fund or in the case of any foreign
sub-custodian not the subject of an exemptive order
from the Securities and Exchange Commission is
notified by such foreign sub-custodian that there
appears to be a substantial likelihood that its
shareholders' equity will decline below $200
million (U.S. dollars or the equivalent thereof) or
that its shareholders' equity has declined below
$200 million (in each case computed in accordance
with generally accepted U.S. accounting
principles).
3.13 Branches of U.S. Banks. (a) Except as otherwise set
forth in this Contract, the provisions hereof shall
18
not apply where the custody of the Portfolios
assets are maintained in a foreign branch of a
banking institution which is a "bank" as defined by
Section 2(a)(5) of the Investment Company Act of
1940 meeting the qualification set forth in Section
26(a) of said Act. The appointment of any such
branch as a sub-custodian shall be governed by
paragraph 1 of this Contract. (b) Cash held for
each Portfolio of the Fund in the United Kingdom
shall be maintained in an interest bearing account
established for the Fund with the Custodian's
London branch, which account shall be subject to
the direction of the Custodian, State Street London
Ltd. or both.
3.14 Tax Law. The Custodian shall have no responsibility
or liability for any obligations now or hereafter
imposed on the Fund or the Custodian as custodian
of the Fund by the tax law of the United States of
America or any state or political subdivision
thereof. It shall be the responsibility of the Fund
to notify the Custodian of the obligations imposed
on the Fund or the Custodian as custodian of the
Fund by the tax law of jurisdictions other than
those mentioned in the above sentence, including
responsibility for withholding and other taxes,
assessments or other governmental charges,
certifications and governmental reporting. The sole
responsibility of the Custodian with regard to such
tax law shall be to use reasonable efforts to
assist the Fund with respect to any claim for
exemption or refund under the tax law of
jurisdictions for which the Fund has provided such
information.
4. Payments for Sales or Repurchases or Redemptions of
Shares of the Fund
The Custodian shall receive from the distributor for the
Shares or from the Transfer Agent of the Fund and deposit
into the account of the appropriate Portfolio such payments
as are received for Shares of that Portfolio issued or sold
from time to time by the Fund. The Custodian will provide
timely notification to the Fund on behalf of each such
Portfolio and the Transfer Agent of any receipt by it of
payments for Shares of such Portfolio.
From such funds as may be available for the purpose but
subject to the limitations of the Articles of Incorporation
and any applicable votes of the Board of Directors of the
Fund pursuant thereto, the Custodian shall, upon receipt of
19
instructions from the Transfer Agent, make funds available
for payment to holders of Shares who have delivered to the
Transfer Agent a request for redemption or repurchase of
their Shares. In connection with the redemption or
repurchase of Shares of a Portfolio, the Custodian is
authorized upon receipt of instructions from the Transfer
Agent to wire funds to or through a commercial bank
designated by the redeeming shareholders. In connection with
the redemption or repurchase of Shares of the Fund, the
Custodian shall honor checks drawn on the Custodian by a
holder of Shares, which checks have been furnished by the
Fund to the holder of Shares, when presented to the
Custodian in accordance with such procedures and controls as
are mutually agreed upon from time to time between the Fund
and the Custodian.
5. Proper Instructions
Proper Instructions as used throughout this Contract
means a writing signed or initialed by one or more person or
persons as the Board of Directors shall have from time to
time authorized. Each such writing shall set forth the
specific transaction or type of transaction involved,
including a specific statement of the purpose for which such
action is requested. Oral instructions will be considered
Proper Instructions if the Custodian reasonably believes
them to have been given by a person authorized to give such
instructions with respect to the transaction involved. The
Fund shall cause all oral instructions to be confirmed in
writing. Upon receipt of a certificate of the Secretary or
an Assistant Secretary as to the authorization by the Board
of Directors of the Fund accompanied by a detailed
description of procedures approved by the Board of
Directors, Proper Instructions may include communications
effected directly between electro-mechanical or electronic
devices provided that the Board of Directors and the
Custodian are satisfied that such procedures afford adequate
safeguards for the Portfolios' assets. For purposes of this
Section, Proper Instructions shall include instructions
received by the Custodian pursuant to any three-party
agreement which requires a segregated asset account in
accordance with Section 2.12.
6. Actions Permitted without Express Authority
The Custodian may in its discretion, without express
authority from the Fund on behalf of each applicable
Portfolio:
1) make payments to itself or others for minor
expenses of handling securities or other similar
20
items relating to its duties under this Contract,
provided that all such payments shall be accounted
for to the Fund on behalf of the Portfolio;
2) surrender securities in temporary form for
securities in definitive form;
3) endorse for collection, in the name of the
Portfolio, checks, drafts and other negotiable
instruments; and
4) in general, attend to all non-discretionary details
in connection with the sale, exchange,
substitution, purchase, transfer and other dealings
with the securities and property of the Portfolio
except as otherwise directed by the Board of
Directors of the Fund.
7. Evidence of Authority
The Custodian shall be protected in acting upon any
instructions, notice, request, consent, certificate or other
instrument or paper believed by it to be genuine and to have
been properly executed by or on behalf of the Fund. The
Custodian may receive and accept a certified copy of a vote
of the Board of Directors of the Fund as conclusive evidence
(a) of the authority of any person to act in accordance with
such vote or (b) of any determination or of any action by
the Board of Directors pursuant to the Articles of
Incorporation as described in such vote, and such vote may
be considered as in full force and effect until receipt by
the Custodian of written notice to the contrary.
8. Duties of Custodian with Respect to the Books of Account
and Calculation of Net Asset Value and Net Income
The Custodian shall cooperate with and supply necessary
information to the entity or entities appointed by the Board
of Directors of the Fund to keep the books of account of
each Portfolio and/or compute the net asset value per share
of the outstanding shares of each Portfolio or, if directed
in writing to do so by the Fund on behalf of the Portfolio,
shall itself keep such books of account and/or compute such
net asset value per share. If so directed, the Custodian
shall also calculate daily the net income of the Portfolio
as described in the Fund's currently effective prospectus
related to such Portfolio and shall advise the Fund and the
Transfer Agent daily of the total amounts of such net income
and, if instructed in writing by an officer of the Fund to
do so, shall advise the Transfer Agent periodically of the
division of such net income among its various components.
21
The calculations of the net asset value per share and the
daily income of each Portfolio shall be made at the time or
times described from time to time in the Fund's currently
effective prospectus related to such Portfolio.
9. Records
The Custodian shall with respect to each Portfolio
create and maintain all records relating to its activities
and obligations under this Contract in such manner as will
meet the obligations of the Fund under the Investment
Company Act of 1940, with particular attention to Section 31
thereof and Rules 3la-1 and 3la-2 thereunder. All such
records shall be the property of the Fund and shall at all
times during the regular business hours of the Custodian be
open for inspection by duly authorized officers, employees
or agents of the Fund and employees and agents of the
Securities and Exchange Commission. The Custodian shall, at
the Fund's request, supply the Fund with a tabulation of
securities owned by each Portfolio and held by the Custodian
and shall, when requested to do so by the Fund and for such
compensation as shall be agreed upon between the Fund and
the Custodian, include certificate numbers in such
tabulations.
10. Opinion of Fund's Independent Accountant
The Custodian shall take all reasonable action, as the
Fund on behalf of each applicable Portfolio may from time to
time request, to obtain from year to year favorable opinions
from the Fund's independent accountants with respect to its
activities hereunder in connection with the preparation of
the Fund's Form N-1A, and Form N-SAR or other annual reports
to the Securities and Exchange Commission and with respect
to any other requirements of such Commission.
11. Reports to Fund by Independent Public Accountants
The Custodian shall provide the Fund, on behalf of each
of the Portfolios at such times as the Fund may reasonably
require, with reports by independent public accountants on
the accounting system, internal accounting control and
procedures for safeguarding securities, futures contracts
and options on futures contracts, including securities
deposited and/or maintained in a Securities System, relating
to the services provided by the Custodian under this
Contract; such reports, shall be of sufficient scope and in
sufficient detail, as may reasonably be required by the Fund
to provide reasonable assurance that any material
inadequacies would be disclosed by such examination, and, if
there are no such inadequacies, the reports shall so state.
22
12. Compensation of Custodian
The Custodian shall be entitled to reasonable
compensation for its services and expenses as Custodian, as
agreed upon from time to time between the Fund on behalf of
each applicable Portfolio and the Custodian.
13. Responsibility of Custodian
So long as and to the extent that it is in the exercise
of reasonable care, the Custodian shall not be responsible
for the title, validity or genuineness of any property or
evidence of title thereto received by it or delivered by it
pursuant to this Contract and shall be held harmless in
acting upon any notice, request, consent, certificate or
other instrument reasonably believed by it to be genuine and
to be signed by the proper party or parties, including any
futures commission merchant acting pursuant to the terms of
a three-party futures or options agreement. The Custodian
shall be held to the exercise of reasonable care in carrying
out the provisions of this Contract, but shall be kept
indemnified by and shall be without liability to the Fund
for any action taken or omitted by it in good faith without
negligence. It shall be entitled to rely on and may act upon
advice of counsel (who may be counsel for the Fund) on all
matters, and shall be without liability for any action
reasonably taken or omitted pursuant to such advice.
Except as may arise from the Custodian's own negligence
or willful misconduct or the negligence or willful
misconduct of a sub-custodian or agent, the Custodian shall
be without liability to the Fund for any loss, liability,
claim or expense resulting from or caused by; (i) events or
circumstances beyond the reasonable control of the Custodian
or any sub-custodian or Securities System or any agent or
nominee of any of the foregoing, including, without
limitation, nationalization or expropriation, imposition of
currency controls or restrictions, the interruption,
suspension or restriction of trading on or the closure of
any securities market, power or other mechanical or
technological failures or interruptions, computer viruses or
communications disruptions, acts of war or terrorism, riots,
revolutions, work stoppages, natural disasters or other
similar events or acts; (ii) errors by the Fund or the
Investment Advisor in their instructions to the Custodian
provided such instructions have been in accordance with this
Contract; (iii) the insolvency of or acts or omissions by a
Securities System; (iv) any delay or failure of any broker,
agent or intermediary, central bank or other commercially
prevalent payment or clearing system to deliver to the
Custodian's sub-custodian or agent securities purchased or
23
in the remittance or payment made in connection with
securities sold; (v) any delay or failure of any company,
corporation, or other body in charge of registering or
transferring securities in the name of the Custodian, the
Fund, the Custodian's sub-custodians, nominees or agents or
any consequential losses arising out of such delay or
failure to transfer such securities including non-receipt of
bonus, dividends and rights and other accretions or
benefits; (vi) delays or inability to perform its duties due
to any disorder in market infrastructure with respect to any
particular security or Securities System; and (vii) any
provision of any present or future law or regulation or
order of the United States of America, or any state thereof,
or any other country, or political subdivision thereof or of
any court of competent jurisdiction.
The Custodian shall be liable for the acts or omissions
of a foreign banking institution to the same extent as set
forth with respect to sub-custodians generally in this
Contract.
If the Fund on behalf of a Portfolio requires the
Custodian to take any action with respect to securities,
which action involves the payment of money or which action
may, in the opinion of the Custodian, result in the
Custodian or its nominee assigned to the Fund or the
Portfolio being liable for the payment of money or incurring
liability of some other form, the Fund on behalf of the
Portfolio, as a prerequisite to requiring the Custodian to
take such action, shall provide indemnity to the Custodian
in an amount and form satisfactory to it.
If the Fund requires the Custodian, its affiliates,
subsidiaries or agents, to advance cash or securities for
any purpose (including but not limited to securities
settlements, foreign exchange contracts and assumed
settlement) or in the event that the Custodian or its
nominee shall incur or be assessed any taxes, charges,
expenses, assessments, claims or liabilities in connection
with the performance of this Contract, except such as may
arise from its or its nominee's own negligent action,
negligent failure to act or willful misconduct, any property
at any time held for the account of the applicable Portfolio
shall be security therefor and should the Fund fail to repay
the Custodian promptly, the Custodian shall be entitled to
utilize available cash and to dispose of such Portfolios
assets to the extent necessary to obtain reimbursement.
In no event shall the Custodian be liable for indirect,
special or consequential damages.
24
14. Effective Period Termination and Amendment
This Contract shall become effective as of its
execution, shall continue in full force and effect until
terminated as hereinafter provided, may be amended at any
time by mutual agreement of the parties hereto and may be
terminated by either party by an instrument in writing
delivered or mailed, postage prepaid to the other party,
such termination to take effect not sooner than thirty (30)
days after the date of such delivery or mailing; provided,
however that the Custodian shall not with respect to a
Portfolio act under Section 2.l0 hereof in the absence of
receipt of an initial certificate of the Secretary or an
Assistant Secretary that the Board of Directors of the Fund
has approved the initial use of a particular Securities
System by such Portfolio, as required by Rule 17f-4 under
the Investment Company Act of 1940, as amended and that the
Custodian shall not with respect to a Portfolio act under
Section 2.11 hereof in the absence of receipt of an initial
certificate of the Secretary or an Assistant Secretary that
the Board of Directors has approved the initial use of the
Direct Paper System by such Portfolio; provided further,
however, that the Fund shall not amend or terminate this
Contract in contravention of any applicable federal or state
regulations, or any provision of the Articles of
Incorporation, and further provided, that the Fund on behalf
of one or more of the Portfolios may at any time by action
of its Board of Directors (i) substitute another bank or
trust company for the Custodian by giving notice as
described above to the Custodian, or (ii) immediately
terminate this Contract in the event of the appointment of a
conservator or receiver for the Custodian by the Comptroller
of the Currency or upon the happening of a like event at the
direction of an appropriate regulatory agency or court of
competent jurisdiction.
Upon termination of the Contract, the Fund on behalf of
each applicable Portfolio shall pay to the Custodian such
compensation as may be due as of the date of such
termination and shall likewise reimburse the Custodian for
its costs, expenses and disbursements.
15. Successor Custodian
If a successor custodian for the Fund, of one or more of
the Portfolios shall be appointed by the Board of Directors
of the Fund, the Custodian shall, upon termination, deliver
to such successor custodian at the office of the Custodian,
duly endorsed and in the form for transfer, all securities
of each applicable Portfolio then held by it hereunder and
shall transfer to an account of the successor custodian all
25
of the securities of each such Portfolio held in a
Securities System.
If no such successor custodian shall be appointed, the
Custodian shall, in like manner, upon receipt of a certified
copy of a vote of the Board of Directors of the Fund,
deliver at the office of the Custodian and transfer such
securities, funds and other properties in accordance with
such vote.
In the event that no written order designating a
successor custodian or certified copy of a vote of the Board
of Directors shall have been delivered to the Custodian on
or before the date when such termination shall become
effective, then the Custodian shall have the right to
deliver to a bank or trust company, which is a "bank" as
defined in the Investment Company Act of 1940, doing
business in Boston, Massachusetts, of its own selection,
having an aggregate capital, surplus, and undivided profits,
as shown by its last published report, of not less than
$25,000,000, all securities, funds and other properties held
by the Custodian on behalf of each applicable Portfolio and
all instruments held by the Custodian relative thereto and
all other property held by it under this Contract on behalf
of each applicable Portfolio and to transfer to an account
of such successor custodian all of the securities of each
such Portfolio held in any Securities System. Thereafter,
such bank or trust company shall be the successor of the
Custodian under this Contract.
In the event that securities, funds and other properties
remain in the possession of the Custodian after the date of
termination hereof owing to failure of the Fund to procure
the certified copy of the vote referred to or of the Board
of Directors to appoint a successor custodian, the Custodian
shall be entitled to fair compensation for its services
during such period as the Custodian retains possession of
such securities, funds and other properties and the
provisions of this Contract relating to the duties and
obligations of the Custodian shall remain in full force and
effect.
16. Interpretive and Additional Provisions
In connection with the operation of this Contract, the
Custodian and the Fund on behalf of each of the Portfolios,
may from time to time agree on such provisions interpretive
of or in addition to the provisions of this Contract as may
in their joint opinion be consistent with the general tenor
of this Contract. Any such interpretive or additional
provisions shall be in a writing signed by both parties and
26
shall be annexed hereto, provided that no such interpretive
or additional provisions shall contravene any applicable
federal or state regulations or any provision of the
Articles of Incorporation of the Fund. No interpretive or
additional provisions made as provided in the preceding
sentence shall be deemed to be an amendment of this
Contract.
17. Additional Funds
In the event that the Fund establishes one or more
series of Shares in addition to the Alliance Premier Growth
Institutional Fund, Alliance Quasar Institutional Fund,
Alliance Real Estate Investment Institutional Fund with
respect to which it desires to have the Custodian render
services as custodian under the terms hereof, it shall so
notify the Custodian in writing, and if the Custodian agrees
in writing to provide such services, such series of Shares
shall become a Portfolio hereunder.
18. Massachusetts Law to Apply
This Contract shall be construed and the provisions
thereof interpreted under and in accordance with laws of The
Commonwealth of Massachusetts.
19. Prior Contracts
This Contract supersedes and terminates, as of the date
hereof, all prior contracts between the Fund on behalf of
each of the Portfolios and the Custodian relating to the
custody of the Fund's assets.
20. Reproduction of Documents
This Contract and all schedules, exhibits, attachments
and amendments hereto may be reproduced by any photographic,
photostatic, microfilm, micro-card, miniature photographic
or other similar process. The parties hereto all/each agree
that any such reproduction shall be admissible in evidence
as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and
whether or not such reproduction was made by a party in the
regular course of business, and that any enlargement,
facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.
27
21. Shareholder Communications
Securities and Exchange Commission Rule 14b-2 requires
banks which hold securities for the account of customers to
respond to requests by issuers of securities for the names,
addresses and holdings of beneficial owners of securities of
that issuer held by the bank unless the beneficial owner has
expressly objected to disclosure of this information. In
order to comply with the rule, the Custodian needs the Fund
to indicate whether the Fund authorizes the Custodian to
provide the Fund's name, address, and share position to
requesting companies whose stock the Fund owns. If the Fund
tells the Custodian "no", the Custodian will not provide
this information to requesting companies. If the Fund tells
the Custodian "yes" or do not check either "yes" or "no"
below, the Custodian is required by the rule to treat the
Fund as consenting to disclosure of this information for all
securities owned by the Fund or any funds or accounts
established by the Fund. For the Fund's protection, the Rule
prohibits the requesting company from using the Fund's name
and address for any purpose other than corporate
communications. Please indicate below whether the Fund
consent or object by checking one of the alternatives below.
YES [ ] The Custodian is authorized to release the
Fund's name, address, and share positions.
NO [ x ] The Custodian is not authorized to release the
Fund's name, address, and share positions.
28
IN WITNESS WHEREOF, each of the parties has caused this
instrument to be executed in its name and behalf by its duly
authorized representative and its seal to be hereunder
affixed as of the 10th day of December, 1997.
ATTEST ALLIANCE INSTITUTIONAL FUND
/s/ Xxxxxxxx Xxxxxxxx By: /s/ Xxxxxx X. Xxxxxx, Xx.
Name: Xxxxxxxx Xxxxxxxx Name: Xxxxxx X. Xxxxxx, Xx.
Title: Secretary
ATTEST STATE STREET BANK AND TRUST COMPANY
/s/ Xxxxx Xxxxxx By: /s/ Xxxxxx X. Xxxxx
Xxxxx Xxxxxx Xxxxxx X. Xxxxx
Vice President and Executive Vice President
Associate Counsel
29
Schedule A
17f-5 Approval
The Board of Directors/Trustees of ALLIANCE
INSTITUTIONAL FUNDS, INC., has approved certain foreign banking
institutions and foreign securities depositories within State
Street's Global Custody Network for use as subcustodians for the
Fund's securities, cash and cash equivalents held outside of the
United States. Board approval is as indicated by the Fund's
Authorized Officer:
Fund
Officer
Initials Country Subcustodian Central Depository
________ ______ ____________ ___________________
_______ State Street's entire Global Custody Network listed below
_______ Argentina Citibank, N.A. Caja de Valores S.A.
_______ Australia Westpac Banking Corporation Austraclear Limited;
Reserve Bank Information
and Transfer System
(RITS)
_______ Austria Erste Bank der Oesterreichische
oesterreichischen Kontrollbank AG
Sparkasen AG (Wertpapiersammelbank
Division)
_______ Bahrain The British Bank of the Middle None
East (as delegate of the
Hongkong Shanghai Banking
Corporation Limited)
_______ Bangladesh Standard Chartered Bank None
_______ Belgium Generale Bank Caisse
Interprofessionnelle de
Depots et de Virements
de Titres S.A. (CIK);
Banque Nationale de
Belgique
_______ Bermuda The Bank of Bermuda Limited None
_______ Botswana Barclays Bank of Botswana None
Limited
_______ Brazil Citibank, N.A. Camera de Liquidacao de
Sao Xxxxx;
Banco Central do Brasil,
Systema Especial de
Liquidacao e Custodia
(SELIC)
_______ Bulgaria ING Bank N.V. Central Depository AD
_______ Canada Canada Trustco Mortgage Company The Canadian Depository
for Securities Limited
(CDS)
_______ Chile Citibank, N.A. None
_______ People's The Hongkong and Shanghai Shanghai Securities
Republic Banking Corporation Limited, Central Clearing and
of China Shanghai and Shenzhen branches Registration Corporation
(SSCCRC)
Shenzhen Securities
Central Clearing Co.,
Ltd. (SSCC)
________ Colombia Cititrust Colombia S.A. None
Sociedad Fiduciaria
________ Croatia Privredna Banka Zagreb d.d. Ministry of Finance
________ Cyprus Barclays Bank PLC None
Cyprus Offshore Banking Unit
________ Czech Ceskoslovenska Obchodni Stredisko cennych
Republic Banka A.S. papira (SCP)
Czech National Bank
(CNB)
________ Denmark Den Danske Bank Vaerdipapircentralen -
The Danish Securities
Center (VP)
________ Ecuador Citibank, N.A. None
________ Egypt National Bank of Egypt Misr Company for
Clearing, Settlement,
and Central Depository
(MCSD)
2
________ Finland Xxxxxx Bank Ltd. The Finnish Central
Securities Depository
(CSD)
________ France Banque Paribas Societe
Interprofessionnelle
pour la Compensation des
Valeurs Mobilieres
(SICOVAM)
Banque de France,
Saturne System
________ Germany Dresdner Bank AG The Deutscher
Kassenverein AG
________ Ghana Barclays Bank of Ghana Limited None
________ Greece National Bank of Greece S.A The Central Securities
Depository (Apothetirion
Titlon A.E.);
Bank of Greece
________ Hong Kong Standard Chartered Bank The Central Clearing and
Settlement System
(CCASS); The Central
Money Markets Unit (CMU)
________ Hungary Citibank Rt., Budapest The Central Depository
and Clearing House
(Budapest) Ltd. (KELER
Ltd.)
________ India Deutsche Bank AG The National Securities
Depository Limited
The Hongkong and Shanghai The National Securities
Banking Corporation Limited Depository Limited
________ Indonesia Standard Chartered Bank None
________ Ireland Bank of Ireland None;
The Central Bank of
Ireland, The Gilt
Settlement Office (GSO)
________ Israel Bank Hapoalim B.M. The Clearing House of
the Tel Aviv Stock
Exchange;
3
Bank of Israel
________ Italy Banque Paribas Monte Titoli S.p.A.;
Banca d'Italia
________ Ivory Coast Societe Generale de Banques None
en Cote d'lvoire
________ Japan The Daiwa Bank, Limited Japan Securities
Depository Center
(JASDEC);
Bank of Japan Net System
The Fuji Bank, Limited Japan Securities
Depository Center
(JASDEC);
Bank of Japan Net System
________ The Sumitomo Trust & Banking Japan Securities
Co., Ltd. Depository Center
(JASDEC);
Bank of Japan Net System
________ Jordan The British Bank of the Middle None
East (as delegate of the
Hongkong and Shanghai Banking
Corporation Limited)
________ Kenya Barclays Bank of Kenya Limited None
________ Republic of SEOULBANK Korea Securities
Korea Depository (KSD)
________ Lebanon The British Bank of the Middle Custodian and Clearing
East (as delegate of the Center of Financial
Hongkong and Shanghai Banking Instruments for Lebanon
Corporation Ltd.) (MIDCLEAR) X.X.X.;
The Central Bank of
Lebanon
________ Malaysia Standard Chartered Bank Malaysian Central
Malaysia Berhad Depository Sdn. (MCD);
Bank Negara Malaysia,
Scripless Securities
4
Trading and Safekeeping
Systems (SSTS)
________ Mauritius The Hongkong and Shanghai The Central Depository &
Banking Corporation Limited Settlement System (CDS)
________ Mexico Citibank Mexico, S.A. S.D. INDEVAL, S.A. de
C.V. (Instituto para el
Deposito de Valores)
________ Morocco Banque Commerciale du Maroc None
________ The MeesPierson N.V. Nederlands Centraal
Netherlands Instituut voor Giraal
Effectenverkeer B.V.
(NECIGEF)
________ New Zealand ANZ Banking Group New Zealand Central
(New Zealand) Limited Securities Depository
Limited (NZCSD)
________ Norway Christiania Bank og Verdipapirsentralen -
Kreditkasse The Norwegian Registry
of Securities (VPS)
________ Oman The British Bank of the Middle Muscat Securities Market
East (as delegate of the (MSM)
Hongkong and Shanghai Banking
Corporation Limited
________ Pakistan Deutsche Bank AG Central Depository
Company of Pakistan Ltd.
________ Peru Citibank, N.A. Caja de Valores y
Liquidaciones (CAVALI,
S.A.)
________ Philippines Standard Chartered Bank The Philippines Central
Depository Inc. (PCD);
The Book-Entry-System
(BES) of Bangko Sentral
ng Pilipinas; The
Registry of Scripless
Securities (XXXX) of the
Bureau of Treasury
________ Poland Citibank Poland S.A. The National Depository
of Securities (Krajowy
Depozyt Papierow
Wartosciowych);
5
National Bank of Poland
________ Portugal Banco Comercial Portugues Central de Valores
Mobiliarios (Central)
________ Romainia ING Bank N.V. - Bucharest National Securities
Clearing, Settlement and
Depository Company
________ Russia Credit Suisse First Boston, None
Zurich via Credit Suisse
First Boston Limited, Moscow
________ Singapore The Development Bank The Central Depository
of Singapore Ltd. (Pte) Limited (CDP)
________ Slovak Ceskoslovenska Obchodna Stredisko Cennych
Republic Banka S.A. Papierov (SCP);
National Bank of
Slovakia
________ Slovenia Banka Creditanstalt d.d. Klirinsko Depotna Bruzba
________ South Standard Bank of South Africa The Central Depository
Africa Limited Limited
________ Spain Banco Santander, S.A. Servicio de Compensacion
y Liquidacion de
Valores, S.A. (SCLV);
Banco de Espana,
Anotaciones en Cuenta
________ Sri Lanka The Hongkong and Shanghai Central Depository
Banking Corporation Limited System (Pvt) Limited
________ Swaziland Barclays Bank of Swaziland None
Limited
________ Sweden Skandinaviska Enskilda Banken Vardepapperscentralen
VPC AB - The Swedish
Central Securities
Depository
________ Switzerland Union Bank of Switzerland Schweizerische
Effekten - Giro AG
(SEGA);
INTERSETTLE
6
________ Taiwan - Central Trust of China The Taiwan Securities
R.O.C. or Central Depository
Company, Ltd. (TSCD)
_________________________
(Client Designated Subcustodian
________ Thailand Standard Chartered Bank Thailand Securities
Depository Company
Limited (TSD)
________ Turkey Citibank, X.X. Xxxxx ve Saklama Bankasi
A.S. (TAKASBANK);
Central Bank of Turkey
________ United State Street Bank and Trust None;
Kingdom Company
The Bank of England,
The Central Gilts Office
(CGO);
The Central Moneymarkets
Office (CMO);
________ Uruguay Citibank, N.A. None
________ Venezeula Citibank, N.A. None
________ Zambia Barclays Bank of Zambia Limited Lusaka Central
Depository (LCD)
________ Zimbabwe Barclays Bank of Zimbabwe None
Limited
________ Euroclear (The Euroclear System)/State Street London Limited
________ Cedel (Cedel Bank, societe anonyme)/State Street London Limited
Certified By:
/s/ February 10, 1998
Fund's Authorized Officer Date
7
00250237.AJ2
