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Exhibit (k(1)
BANKBOSTON, N.A.
STOCK TRANSFER AGENT SERVICES AGREEMENT FOR:
COLONIAL CALIFORNIA INSURED MUNICIPAL FUND
This Agreement sets forth the terms and conditions under which BankBoston, N.A.
(hereinafter referred to as "BankBoston") will serve as sole Transfer Agent,
Registrar, Dividend Disbursement and Dividend Reinvestment Agent for the Common
Stock of Colonial California Insured Municipal Fund (hereinafter referred to as
"CCIMF").
A. TERM
The term of this Agreement shall be for a period of three (3) years,
commencing from the effective date of this Agreement, October 25, 1999.
B. FEE FOR STANDARD SERVICES
For the standard services as stated in Section C provided by BankBoston
under this Agreement, CCIMF will be charged as follows:
$2,000.00 Monthly Administrative Fee
$2,500.00 One-Time Project Fee To Establish New Fun
Escalation: This Agreement shall be self renewing for additional three
year term and the fees to be paid under this agreement after the initial
three year term shall be readjusted upon agreement by both parties taking
into account a number of factors, including service mix, volumes and the
accumulated change in the National Employment Cost Index for Service
Producing Industries (Finance, Insurance, Real Estate) for the preceding
years of the contract, as published by the Bureau of Labor Statistics of
the United States Department of Labor. Fees will be increased or decreased
on this basis on each successive contract anniversary thereafter.
Open Accounts: The terms of this Agreement will cover up to 2,000 Open
Accounts per annum. Excess to be billed at $12.00 per Open Account.
C. STANDARD SERVICES
BankBoston agrees to provide the following services to CCIMF in accordance
with the standard fee set forth in Section B.
Account Maintenance:
1. Establish New Fund and annual services as Transfer Agent, Registrar,
Dividend Disbursement and Dividend Reinvestment Agent.
2. Maintaining shareholder accounts, including the processing of new
accounts, preparation and mailing W-9 certifications to new accounts
and closing accounts.
3. Posting and acknowledging address changes, tax ID number changes and
W-9 certification, and all other routine file maintenance
adjustments.
4. On-line remote access to shareholder and Fund database.
5. Posting all transactions, including routine and non-routine debit
and credit certificates. To include all book or unissued shareholder
transfer activity.
6. Issuance and registration of stock certificates annually. *
7. Researching and responding to all written shareholder and broker
inquiries and phone inquiries.
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8. Daily Transfer Activity Journals reflecting ownership changes to be
mailed to CCIMF at the close of each week if required.
9. Processing all New York Window items, mail items and legal
transfers.
10. Processing Indemnity Bonds, placing certificate stop transfer orders
and replacing lost certificates.
11. Coding multiple accounts at a single household to suppress duplicate
report mailings.
12. Maintaining closed accounts.
Mailing & Report Production Services:
1. Addressing and mailing four (4) registered shareholder reports or
letters via First Class Mail per annum.
2. Preparing two (2) full or partial shareholder reports (including
Statistical Reports) per annum.
3. Preparing twelve (12) sets of shareholder labels per annum.
4. Abandoned Property Reports provided at $1,000 per report and $3.00
per respondent.
Annual Meeting Services:
1. Preparing one (1) full stockholder list as of the Annual Meeting
record date.
2. Addressing proxy cards for registered shareholders.
3. Enclosing and mailing proxy cards with proxy statement, annual
report and postage paid return envelope to all registered
shareholders.
4. Preparing one (1) set of registered broker labels and one (1) list
of registered brokers for the Broker Search.
5. Receiving, opening and examining returned proxies.
6. Writing in connection with unsigned or improperly executed proxies.
7. Tabulating returned proxies to include an unlimited number of
proposals.
8. Providing summary reports on the Proxy Vote Tabulation status as
requested.
9. Interface with Solicitor appointed by CCIMF.
10. Preparing one (1) final Annual Meeting list reflecting how each
account has voted on each proposal.
11. Attending the Annual Meeting as Inspector of Election.
12. Respondent Bank Services to include:
- Processing each respondent bank omnibus proxy received.
- Mailing respondent bank search cards.
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Note: all out-of-pocket expenses including overprinting proxy cards, card
stock, envelopes, postage and telecopy charges will be billed as incurred.
Dividend Disbursement Services:
As Dividend Disbursing and Paying Agent, BankBoston will perform the
dividend related services listed, pursuant to the following terms and
conditions:
* All funds must be received by 1:00 p.m. Eastern Time on the Mail Date
via Federal Funds Wire or BankBoston Bank Demand Deposit account debit.
1. Preparing and mailing monthly dividend checks with an additional
enclosure.
2. Providing Automated Clearinghouse Funds (ACH) services.
3. Replacing lost dividend checks.
4. Providing photo copies of cashed dividend checks if requested.
5. Processing and record keeping of accumulated uncashed dividends.
6. Reconciling paid and outstanding dividend checks.
7. Coding RPO/SAUK accounts to suppress mailing dividend checks to
undeliverable addresses.
8. Effecting wire transfer of funds to Depository Trust Company on
payable date.
9. Preparing and filing Federal Information Returns (Form 1099-DIV) of
dividends paid during the year and mailing Forms 1099-DIV to each
shareholder.
10. Preparing and filing State Information Returns of dividends paid
during the year to shareholders resident within such State in
accordance with current State Filing regulations.
11. Preparing and filing annual withholding return (Form 1042) and
payments to the government of income taxes withheld from
Non-resident Aliens and mailing Forms 1042 to each foreign
shareholder.
12. Performing the following duties as required by the Interest and
Dividend Tax Compliance Act of 1983:
* Withholding tax from shareholder accounts not in
compliance with the provisions of the Act.
* Reconciling and reporting taxes withheld, including
additional 1099 reporting requirements, to the Internal
Revenue Service.
* Responding to shareholders regarding the regulations.
* Mailing to new accounts which have had taxes withheld,
to inform them of procedures to be followed to cease
future back-up withholding.
* Annual mailing to pre-1984 accounts for which Tax
Identification Numbers (TIN) have not yet been
certified.
* Performing shareholder file adjustments to reflect TIN
certifications.
Note: Depository Wire charges required to fund dividend payments will be
billed to CCIMF as an expense.
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Dividend Reinvestment Services:
1. As Administrator for the Open Market and/or Original Issue Dividend
Reinvestment Plans ("DRP"), BankBoston will perform the listed DRP
related services:
2. Reinvestment and/or optional cash investment transactions of DRP
participants. *
3. Processing DTC quarterly reinvestments at $250 per investment.
4. Preparing and mailing a year-to-date dividend reinvestment statement
with an additional enclosure to DRP participants upon completion of
each reinvestment.
5. Preparing and mailing a year-to-date optional cash investment
statement to participants upon the completion of each investment.
6. Maintaining DRP accounts and establishing new DRP accounts.
7. Processing sale/termination requests. *
8. Processing withdrawal requests.
9. Providing CCIMF with a Dividend Reinvestment Investment Summary
Report for each reinvestment and/or optional cash investment.
10. Providing Safekeeping for DRP participant stock certificates.
11. Researching and responding to shareholder inquiries regarding the
Plan.
12. Preparing and mailing Forms 1099 and Forms 1042 to DRP participants
and completing related filings with the IRS.
13. Preparing, mailing and filing Form 1099B relating to DRP sales.
D. LIMITATIONS
The fees as stated in Section B include:
* The issuance and registration of 2,000 stock certificates per
annum. Excess to be billed at $1.50 per stock certificate.
* A total of 20,000 DRP transactions (defined as a dividend
reinvestment and/or cash investment), per annum. Excess to be
billed at $1.25 each.
* ACH $250 per investment, per fund.
* DRP Redemptions (sales or withdrawals) to be billed at $10.00
each (shareholder paid)
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E. SERVICES NOT COVERED
Items not included in the fees set forth in this Agreement for "Standard
Services" Section B such as payment of stock dividends or splits or any
other services associated with a special project will be billed separately
on an appraisal basis.
Services required by legislation or regulatory fiat which become effective
after the date of this Agreement shall not be a part of the Standard
Services and shall be billed by appraisal.
All out-of-pocket expenses such as telephone line charges associated with
toll free telephone calls, overprinting, insurance, stationary, envelopes,
telecopy charges, excess material storage and disposal will be billed to
CCIMF as incurred.
F. OTHER TERMS & CONDITIONS
Good funds to cover postage expenses in relation to the mailing of Annual
Meeting materials by BankBoston by 1:00 p.m. Eastern Time on the scheduled
mailing date.
Overtime charges will be assessed in the event material is delivered late
for shareholder mailings unless the mail date is rescheduled to a later
date. Such material includes, but is not limited to: proxy statements,
annual, semi and quarterly reports, dividend enclosures and news releases.
Receipt of material for mailing to shareholders must be received three (3)
full business days in advance of the scheduled mail date.
G. BILLING DEFINITION OF ACCOUNT MAINTENANCE
For billing purposes, number of accounts will be based on open accounts on
file at the beginning of each billing period, plus any new accounts added
during the billing period.
H. TERMINATION
This Agreement may be terminated by either party upon sixty (60) days
written notice to the other. However, BankBoston may terminate this
Agreement upon written notice to CCIMF if CCIMF has breached its
obligation as described in Section I set forth below by failing to make
payment of invoices for a period of three (3) consecutive months and CCIMF
has failed to cure such breach within five (5) business days of receipt of
such notice.
Should CCIMF or BankBoston exercise its right to terminate this Agreement,
all reasonable out-of-pocket expenses associated with the transfer of
records and material will be borne by CCIMF. Out-of-pocket expenses may if
required, include costs associated with any year-end Federal and/or State
tax reporting responsibilities.
I. PAYMENT FOR SERVICES
It is agreed that invoices will be rendered and payable on a monthly
basis. Each billing period will, therefore, be for a one (1) month
duration. CCIMF agrees to pay all fees and reimbursable expenses within
thirty (30) days following the receipt of the respective billing invoice.
Interest charges may begin to accrue on unpaid balances for more than
forty-five (45) days.
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J. NON-ASSIGNABILITY
This Agreement, and duties, obligations and services to be provided
herein, may not be assigned or otherwise transferred without prior written
consent of CCIMF.
K. CONFIDENTIALITY
The information contained in this Agreement is confidential and
proprietary in nature. By receiving this Agreement, both parties agree
that none of its directors, officers, employees, or agents without the
prior written consent of the other party will divulge, furnish or make
accessible to any third party, except as permitted by the next sentence,
any part of this Agreement or information in connection therewith which
has been or may be made available to it. In this regard, both parties
agree that they will limit their access to the Agreement and such
information to only those officers and employees with responsibilities for
analyzing the Agreement and to such independent consultants hired
expressly for the purpose of assisting in such analysis. In addition, both
parties agree that any persons to whom such information is properly
disclosed shall be informed on the confidential nature of the Agreement
and the information relating thereto, and shall be directed to treat the
same appropriately.
L. CONTRACT ACCEPTANCE
In witness whereof, the parties hereto have caused this Agreement to be
executed by their respective officers, hereunto duly agreed and
authorized, as of the effective date of this Agreement.
M. LIMITATION OF LIABILITY OF THE TRUSTEES AND SHAREHOLDERS (RIDER)
A copy of the Agreement and Declaration of Trust of the Fund is on file
with the Secretary of The Commonwealth of Massachusetts, and notice is
hereby given that this Agreement is executed on behalf of the Trustees of
the Fund as Trustees and not individually and that the obligations of this
Agreement are not binding upon any of the Trustees, officers or
shareholders individually but are binding only upon the assets and
property of the fund.
BANKBOSTON, N.A. COLONIAL CALIFORNIA INSURED MUNICIPAL FUND
By: /s/ Xxxxx X. Xxxxx By: /s/ Xxxxx X. Xxxxxx
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Title: Vice President Title: Secretary
