Amendment to the
CUSTODY AGREEMENT
THIS AMENDMENT is made as of February 14, 2000, to the Custody
Agreement dated as of October 19, 1998 (the "Agreement"), by and between The
Bank of New York ("Custodian") and Nations Fund, Inc. (the "Company"), on behalf
of its respective portfolios listed on Schedule I attached thereto.
RECITALS
WHEREAS, the parties hereto desire to amend certain provisions of the
Agreement.
NOW THEREFORE, the Custodian and the Company agree that the Agreement
shall be amended as follows:
1. Paragraph 25 is hereby amended by deleting subsection (a) in its
entirety and inserting the following:
"(a) Custodian shall advance funds under this Agreement with
respect to any Fund which results in an overdraft because the moneys
held by Custodian in the separate account for such Fund shall be
insufficient to pay the total amount payable upon a purchase of
securities by such Fund, as set forth in an Officer's Certificate or
Oral or Written Instructions, or which results in an overdraft in the
separate account of such Fund for some other reason, or if the Company
is for any other reason indebted to Custodian, including any
indebtedness to The Bank of New York under the Company's Cash
Management and Related Services Agreement, (except a borrowing for
investment or for temporary or emergency purposes using securities as
collateral pursuant to a separate agreement and subject to the
provisions of Paragraph 25(b) hereof), such overdraft or indebtedness
shall be deemed to be a loan made by Custodian to the Company for such
Fund payable on demand and shall bear interest from the date incurred
at a rate per annum (based on a 360-day year for the actual number of
days involved) equal to the overdraft rate specified in Schedule III to
this Agreement. In addition, the Company hereby agrees that to the
extent of such overdraft or indebtedness, Custodian shall have a
continuing lien, security entitlement and security interest in and to
any property at any time held by it for the benefit of such Fund or in
which the Fund may have an interest which is then in Custodian's
possession or control or in possession or control of any third party
acting on Custodian's behalf. The Company authorizes Custodian, in its
sole discretion, at any time to charge any such overdraft or
indebtedness together with interest due thereon against any balance of
account standing to such Fund's credit on Custodian's books. In
addition, the Company hereby covenants that on each Business Day on
which either it intends to enter a Reverse Repurchase Agreement and/or
otherwise borrow from a third party, or which next succeeds a Business
Day on which at the close of business the Company had outstanding a
Reverse Repurchase Agreement or such a borrowing, it shall prior to
1:00 p.m., New York City time, advise Custodian, in writing, of each
such borrowing, shall specify the Fund to which the same relates, and
shall not incur any indebtedness not so specified other than from
Custodian."
The terms and provisions of this Amendment shall be deemed a part of
the Agreement for all purposes. To the extent that any provisions of the
Amendment modify or are otherwise inconsistent with any provisions of the
Agreement, the terms of this Amendment shall control. In all other respects, the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first written
above.
THE BANK OF NEW YORK
By: /s/ Xxxxxxx X. Grunston
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Xxxxxxx X. Grunston
Vice President
NATIONS FUND, INC.
By: /s/ Xxxxx X. Xxxxx, Xx.
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Xxxxx X. Xxxxx, Xx.
Assistant Secretary