AMENDMENT, dated December 2, 1998 to the November 1, 1991 Global
Custody Agreement ("Agreement"), between The Galaxy Fund ("Customer"), having a
place of business at 0000 Xxxxxxxx Xx., Xxxxxxxxxxx, XX 00000-0000, and The
Chase Manhattan Bank ("Bank"), having a place of business at 000 Xxxx Xxx., Xxx
Xxxx, X.X. 00000-0000.
It is hereby agreed as follows:
Section 1. Except as modified hereby, the Agreement is confirmed
in all respects. Capitalized terms used herein without definition shall have
the meanings ascribed to them in the Agreement.
Section 2. The Agreement is amended by deleting the mutual fund
rider thereto and inserting, in lieu thereof, the following investment company
rider:
"Add a new Section 15 to the Agreement as follows:
15. COMPLIANCE WITH SEC RULE 17f-5.
(a) Customer's board of trustees (or equivalent body) (hereinafter
"Board") hereby delegates to Bank, and Bank hereby accepts the delegation to it,
of the obligation to perform as Customer's "Foreign Custody Manager" (as that
term is defined in SEC rule 17f-5(a)(2)), both for the purpose of selecting
Eligible Foreign Custodians (as that term is defined in SEC rule 17f-5(a)(1)),
and as the same may be amended from time to time, or that have otherwise been
made exempt pursuant to an SEC exemptive order) to hold Assets and of evaluating
the contractual arrangements with such Eligible Foreign Custodians (as set forth
in SEC rule 17f-5(c)(2)); provided that, the term Eligible Foreign Custodian
shall not include any "Compulsory Depository." For each Compulsory Depository
used or intended to be used by Customer of which Bank is advised, Bank shall
provide Customer from time to time with information addressing the factors set
forth in SEC Rule 17f-5(c)(1) to the extent reasonably available to Bank,
together with Bank's analysis of the same (as an example of which is set forth
in Appendix 1 hereto) to assist Customer in determining the appropriateness of
placing Assets therein. A Compulsory Depository shall mean a securities
depository or clearing agency the use of which is compulsory because: (1) its
use is required by law or regulation, (2) securities cannot be withdrawn from
the depository, or (3) maintaining securities outside the depository is not
consistent with prevailing custodial practices in the country which the
depository serves. Compulsory Depositories used by Chase as of the date hereof
are set forth in Appendix 1-A hereto, and as the same may be amended on notice
to Customer from time to time.
(b) In connection with the foregoing, Bank shall:
(i) provide written reports notifying Customer's Board of the
placement of Assets with particular Eligible Foreign Custodians and of
any material change in the arrangements with such Eligible Foreign
Custodians, with such reports to be provided to Customer's Board at
such times as the Board deems reasonable and appropriate based on the
circumstances of Customer's foreign custody arrangements (and until
further notice from Customer such reports shall be
-1-
provided not less than quarterly with respect to the placement of
Assets with particular Eligible Foreign Custodians and with reasonable
promptness (but not less than quarterly) upon the occurrence of any
material change in the contracts, arrangements, procedures or
practices with such Eligible Foreign Custodians);
(ii) exercise such reasonable care, prudence and diligence in
performing as Customer's Foreign Custody Manager as a person having
responsibility for the safekeeping of Assets would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have
determined that Assets placed and maintained in the safekeeping of
such Eligible Foreign Custodian shall be subject to reasonable care,
based on the standards applicable to custodians in the relevant
market, after having considered all factors relevant to the
safekeeping of such Assets, including, without limitation, those
factors set forth in SEC rule 17f-5(c)(1)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign
Custodian (or, in the case of an Eligible Foreign Custodian that is a
securities depository or clearing agency, such contract, the rules or
established practices or procedures of the depository, or any
combination of the foregoing) requires that the Eligible Foreign
Custodian will provide reasonable care for Assets based on the
standards applicable to custodians in the relevant market; and
(v) have established a system to monitor the continued
appropriateness of maintaining Assets with particular Eligible Foreign
Custodians and of the governing contractual arrangements.
Subject to (b)(i)-(v) above, Bank is hereby authorized to place and maintain
Assets on behalf of Customer with Eligible Foreign Custodians pursuant to a
written contract deemed appropriate by Bank.
(c) Except as expressly provided herein, Customer shall be solely
responsible to assure that the maintenance of Assets hereunder complies with the
rules, regulations, interpretations and exemptive orders promulgated by or under
the authority of the SEC.
(d) Bank represents to Customer that it is a U.S. Bank as defined in
Rule 17f-5(a)(7). Customer represents to Bank that: (1) the Assets being placed
and maintained in Bank's custody are subject to the Investment Company Act of
1940, as amended (the " 1940 Act"), as the same may be amended from time to
time; (2) its Board has determined that it is reasonable to rely on Bank to
perform as Customer's Foreign Custody Manager; and (3) its Board or its
investment adviser shall have determined that Customer may maintain Assets in
each country in which Customer's Assets shall be held hereunder and determined
to accept the risks arising therefrom (including, but not limited to, a
country's financial infrastructure (and including any Compulsory Depository
operating in such country), prevailing custody and settlement practices, laws
applicable to the safekeeping and recovery of Assets held in custody, and the
likelihood of nationalization, currency controls and the like) (collectively
("Country Risk")). Nothing
-2-
contained herein shall require Bank to make any selection or to engage in any
monitoring on behalf of Customer that would entail consideration of Country
Risk.
(e) Bank shall provide to Customer such information relating to
Country Risk as is specified in Appendix 1-B hereto. Customer hereby
acknowledges that: (i) such information is solely designed to inform Customer of
market conditions and procedures and is not intended as a recommendation to
invest or not invest in particular markets; and (ii) Bank has gathered the
information from sources it considers reliable, but that Bank shall have no
responsibility for inaccuracies or incomplete information.
2. Add the following after the first sentence of Section 3 of the
Agreement:
At the request of Customer, Bank may, but need not, add to Schedule A
an Eligible Foreign Custodian that is either a bank or a non-
Compulsory Depository where Bank has not acted as Foreign Custody
Manager with respect to the selection thereof. Bank shall notify
Customer in the event that it elects to add any such entity.
3. Add the following language to the end of Section 3 of the
Agreement:
The term Subcustodian as used herein shall mean the following:
(a) a "U.S. Bank," which shall mean a U.S. bank as defined in SEC
rule 17f-5(a)(7); and
(b) an "Eligible Foreign Custodian," which shall mean (i) a banking
institution or trust company, incorporated or organized under the laws
of a country other then the United States, that is regulated as such
by that country's government or an agency thereof, (ii) a
majority-owned direct or indirect subsidiary of a U.S. bank or bank
holding company which subsidiary is incorporated or organized under
the laws of a country other than the United States; (iii) a securities
depository or clearing agency (other than a Compulsory Depository),
incorporated or organized under the laws of a country other than the
United States, that acts as a system for the central handling of
securities or equivalent book-entries in that country and that is
regulated by a foreign financial regulatory authority as defined under
section 2(a)(50) of the 1940 Act, (iv) a securities depository or
clearing agency organized under the laws of a country other than the
United States when acting as a transnational system ("Transnational
Depository") for the central handling of securities or equivalent
book-entries, and (v) any other entity that shall have been so
qualified by exemptive order, rule or other appropriate action of the
SEC.
-3-
(c) The term Subcustodian as used in Section 12(a)(i) (except the
last sentence thereof) shall not include any Eligible Foreign
Custodian as to which Bank has not acted as Foreign Custody Manager,
any Compulsory Depository and any Transnational Depository."
********************
IN WITNESS WHEREOF, the parties have executed this Amendment as of the
date first above written.
THE GALAXY FUND THE CHASE MANHATTAN BANK
By: /s/ Jylanne Xxxxx By: /s/ Xxxxx X. Xxxxxx, Xx.
-------------------------- --------------------------
Name: Jylanne Xxxxx Name: Xxxxx X. Xxxxxx, Xx.
Title: Vice President Title: Vice President
Date: December 2, 1998 Date: December 2, 1998
-4-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
ARGENTINA CAJA DE VALORES S.A. Equity, Corporate & Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
AUSTRALIA AUSTRACLEAR LTD. Corporate Debt, Money Market & Semi-Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CHESS Equity
(Clearing House Electronic Subregister System)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
RITS Government Debt
(Reserve Bank Information and Transfer System)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
AUSTRIA OSTERREICHISCHE KONTROLBANK AG Equity, Corporate + Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BELGIUM CIK Equity + Corporate Debt
(Caisse Interprofessionelle de Depots et de COMPULSORY
Virements de Titres s.a.
---------------------------------------------------------------------------------------------------------------------
BANQUE NATIONALE DE BELGIQUE Treasury Bills + Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BRAZIL CBLC Equity
(Companhia Brasileira de Liquidacao e
Custodia)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BVRJ Equity
(Bolsa de Valores de Rio de Janeiro)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BULGARIA BNB Government Debt
(Bulgaria National Bank)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CENTRAL DEPOSITORY A.D. Equity
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CANADA CDS Equity, Corporate + Government Debt
(The Canadian Depository for Securities Ltd.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CHINA, SSCCRC Equity
SHANGHAI (Shanghai Securities Central Clearing and
Registration Corporation) COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CHINA, SSCC Equity
SHENZHEN (Shenzhen Securities Clearing Company, Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
COLOMBIA DCV Government debt issued, guaranteed or administered
(Deposito Central de Valores) by the central bank.
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-5-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
CROATIA CDA Equity and listed government debt. (Created in
(Central Depository Agency) April 1997, the CDA is expected to be operational
in 1999)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CROATIA MINISTRY OF FINANCE REGISTRY & NATIONAL BANK Short-term debt issued by the Ministry of Finance
OF CROATIA REGISTRY and the National Bank of Croatia, respectively.
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CZECH SCP Equity + Long-Term Government Debt
REPUBLIC (Stredisko cennych papiru)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
DENMARK VP Equity, Corporate + Government Debt
(Vaerdipapircentralen)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
EGYPT MISR CLEARING, SETTLEMENT AND DEPOSITORY, Equity
S.A.E.
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
ESTONIA EVK Equity
(Estonian Central Depository for Securities
Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
EUROMARKET CEDEL & EUROCLEAR Euro-Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
FINLAND CSR Equity + Government Debt
(Central Share Registry Finland)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
FRANCE SICOVAM Equity + Corporate Debt
(Societe Interprofessioelle pour la
Compensation des Valeurs Mobilieres, S.A.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
GERMANY DBC Equity, Corporate + Government Debt
(Deutsche Boerse Clearing AG)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
GREECE APOTHETIRIO TITLON A.E. Equity
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BANK OF GREECE Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
HONG KONG CCASS Equity
(Central Clearing and Settlement System)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CMU Corporate + Government Debt
(Central Moneymarkets Unit)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
HUNGARY KELER LTD. Equity + Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-6-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
INDIA NSDL Equity + Corporate Debt
(National Securities Depository Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
IRELAND CRESTCo LIMITED Equity
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
GSO Government Debt
(Gilt Settlement Office)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
ISRAEL TASE CLEARING HOUSE Equity, Corporate + Government Debt
(Tel Aviv Stock Exchange Clearing House)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
ITALY MONTE TITOLI S.P.A. Equity Corporate Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BANK OF ITALY Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
JAPAN JASDEC Equity
(Japan Securities Depository Center)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BANK OF JAPAN Registered Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
KAZAHKSTAN CENTRAL SECURITIES DEPOSITORY Mandatory for all equity securities traded on the
Kazahkstan Stock Exchange. Currently all trading
is over the counter.
VOLUNTARY
---------------------------------------------------------------------------------------------------------------------
LATVIA LCD Equity + Government Debt
(Latvian Central Depository)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
LEBANON MIDCLEAR Equity
(Custodian and Clearing Center of Lebanon and
the Middle East)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
LITHUANIA CSDL Equity + Government Debt
(Central Securities Depository of Lithuania)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
LUXEMBOURG CEDEL BANK, S.A. Equity
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
MALAYSIA MCD Equity
(Malaysian Central Depository Snd Bhd) COMPULSORY
---------------------------------------------------------------------------------------------------------------------
MAURITIUS CDS Equity
(Central Depository and Settlement Company
Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-7-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
MEXICO INDEVAL Equity, Corporate + Government Debt
(Institucion para el Deposito de Valores)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
MOROCCO MAROCLEAR Equity + Corporate Debt (will be compulsory as of
March 21, 1999)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
NETHERLANDS NECIGEF Equity, Corp. + Govt. D
(Nederlands Centraal Insituut voor Giraal
Effectenverkeer B.V.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
NEW ZEALAND AUSTRACLEAR NEW ZEALAND Equity, Corporate + Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
NORWAY VPS Equity, Corporate + Government Debt
(Verdipapirsentralen)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
OMAN MSM Equity
(Muscat Securities Market)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
PAKISTAN CDC Equity
(Central Depository Company of Pakistan
Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
PERU CAVALI Equity
(Caja de Valores y Liquidaciones)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
PHILIPPINES PCD Equity
(Philippine Central Depository Inc.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
POLAND NDS Equity, Long-Term Government Debt + Vouchers
(National Securities Depository)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CRT Treasury-Bills
(Central Registry of Treasury Bills)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
PORTUGAL INTERBOLSA Equity, Corporate + Government Debt
(Central de Valores Mobiliarios e Sistema de
Liquidacao e Compensacao)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
ROMANIA SNCDD - RASDAQ Equity
(National Company for Clearing, Settlement and
Depository for Securities)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
BSE Equity
(Bucharest Stock Exchange Registry)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
NATIONAL BANK OF ROMANIA Treasury-Bills
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-8-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
RUSSIA VNESTORGBANK Ministry of Finance Bonds
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
NATIONAL DEPOSITORY CENTER GKOs are Treasury Bills with three months to one
year maturity; OFZs are Federal Loan bonds with one
to two years' maturity.
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SINGAPORE CDP Equity + Corporate Debt and Malaysian equities
(Central Depository (Pte.) Ltd.) traded on CLOB
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
MONETARY AUTHORITY OF SINGAPORE Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SLOVAK SCP Equity + Government Debt
REPUBLIC (Stredisko Cennych Papierov)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SLOVAK NATIONAL BANK OF SLOVAKIA Treasury-Bills
REPUBLIC
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SLOVENIA KDD Equity + Corporate Debt
(The Centralna Klirinsko Depotna Xxxxxx x.x.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SOUTH AFRICA CD Corporate + Government Debt
(Central Depository (Pty) Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SOUTH KOREA KSD Equity, Corporate + Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SPAIN SCLV Equity + Corporate Debt
(Servicio de Compensacion v Liquidacion de
Valores. S.A.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CBEO Government Debt
(Central Book Entry Office)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SRI LANKA CDS Equity
(Central Depository System (Pte) Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SWEDEN VPC Equity, Corporate + Government Debt
(Vardepapperscentralen AB)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
SWITZERLAND SEGA Equity, Corporate + Government Debt
(Schweizerische Effekten-Giro AG)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
TAIWAN TSCD Equity + Government Debt
(Taiwan Securities Central Depository Co., Ltd.)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-9-
---------------------------------------------------------------------------------------------------------------------
APPENDIX 1-A
CENTRAL DEPOSITORIES
AS OF NOVEMBER 1998
---------------------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENT
---------------------------------------------------------------------------------------------------------------------
THAILAND TSDC Equity, Corporate + Government Debt
(Thailand Securities Depository Company
Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
TUNISIA STICODEVAM Equity
(Societe Tunisienne Interprofesionnelle pour la
Compensation et le Depot des Valeurs Mobilieres)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
MINISTRY OF FINANCE Government Debt tradable on the stock exchange
(BTNBs)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CENTRAL BANK OR TUNISIA Government Debt not tradable on the stock exchange
(BTCs)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
TURKEY IMKB TAKAS VE SAKLAMA BANKASI A.S. Equity + Corporate Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CENTRAL BANK OF TURKEY Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
UNITED CRESTCo LIMITED Equity + Corp. Debt
KINGDOM
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CMO Sterline CDs & CP
(Central Moneymarket Office)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
CGO Gilts
(Central Gilts Office)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
UNITED STATES DTC Equity + Corporate Debt
(Depository Trust Company)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
PTC Mortgage Back Debt
(Participants Trust Company)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
FED BOOK-ENTRY SYSTEM Government Debt
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
ZAMBIA XXXX Equity + Government Debt
(XxXX Central Shares Depository Limited)
COMPULSORY
---------------------------------------------------------------------------------------------------------------------
-10-
Appendix 1-B
Information Regarding Country Risk
----------------------------------
1. To aid Customer's board in its determinations regarding Country
Risk, Bank shall furnish board annually and upon the initial placing of Assets
into a country the following information (check items applicable):
A Opinions of local counsel concerning:
X i. Whether applicable foreign law would restrict the access afforded
--- Customer's independent public accountants to books and records
kept by an eligible foreign custodian located in that country.
X ii. Whether applicable foreign law would restrict the Customer's
--- ability to recover its assets in the event of the bankruptcy of
an Eligible Foreign Custodian located in that country.
X iii. Whether applicable foreign law would restrict the Customer's
--- ability to recover assets that are lost while under the control
of an Eligible Foreign Custodian located in the country.
B. Written information concerning:
X i. The likelihood of expropriation, nationalization, freezes, or
--- confiscation of Customer's assets.
X ii. Whether difficulties in converting Customer's cash and cash
--- equivalents to U.S. dollars are reasonably foreseeable.
C. A market report with respect to the following topics:
(i) securities regulatory environment, (ii) foreign ownership
restrictions, (iii) foreign exchange, (iv) securities settlement and
registration, (v) taxation, and (vi) compulsory depositories
(including depository evaluation).
2. To aid Customer's board in monitoring Country Risk, Bank shall
furnish board the following additional information:
Market flashes, including with respect to changes in the information
in market reports.
-11-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
EQUITY, REGISTERED CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
EFFICIENCY MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TRADE There is no formal trade matching, although
MATCHING local custodian banks make every effort to 3 3
effect matching on behalf of their clients.
In addition, there is a numbering system
which facilitates matching, but does not
conform to the ISIN standard.
--------------------------------------------------------------------------------
SETTLEMENT Securities and cash settle on a gross basis.
TYPE 3 3
--------------------------------------------------------------------------------
SECURITIES Securities can be immobilized at the central
TYPE depository. However, over 80% of securities 3 3
are held in physical form of which 70% are
registered. (See separate assessment for
bearer physical debt: Physical Corporate +
Government Debt).
--------------------------------------------------------------------------------
DEPOSITORY Deposito Central de Valores (DECEVAL) is the
central depository for equities. It is not 3 3
mandatory to hold securities in DECEVAL and
most market participants, including Chase's
custodian bank, do not use it because of
market concerns about deficient practices at
the depository which include lack of
corporate action services. DECEVAL was
established in 1992, and is owned by the
three stock exchanges in Colombia and 57
financial institutions. At year end 1996,
equity was COP5 billion (approximately US$5
million). There are contingency plans in
place to address business continuity.
--------------------------------------------------------------------------------
FAILURE There are no defined failure provisions or
PROVISIONS buy-in requirements. In addition, securities 3 3
lending is not permitted.
--------------------------------------------------------------------------------
TRADE DATE/ For equities, settlement normally takes place
SETTLEMENT on T+3, but can be extended to T+6. For 1 1
DATE LAPSE debt, settlement takes place on trade date
but can be extended to T+1. Most foreigners
settle equity on T+3 and debt on T+1.
--------------------------------------------------------------------------------
REGULATORY The Superintendency of Securities regulates
OVERSIGHT the stock exchange and market participants. 2 2
The Superintendency of Banks and the central
bank oversee financial institutions and the
payment system. The regulators consistently
enforce existing rules and regulations, and
continue to develop regulations in
conjunction with new market activities.
--------------------------------------------------------------------------------
SECURITIES A number of regulations were established in
LEGAL 1991 and amended by Resolution 1.295 of 1996, 2 2
FRAMEWORK which govern investment and market practices.
The banking sector is covered by Resolution
663 from 1993. Although relatively new, the
securities legal framework continues to
evolve with developments in the capital
markets. In addition, there are no
arbitration procedures in place.
--------------------------------------------------------------------------------
EFFICIENCY AVERAGE 2.5 2.5
--------------------------------------------------------------------------------
-12-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
EQUITY, REGISTERED CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
FINALITY - BUY-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good title is effective on settlement date
RECEIPT OF upon receipt of a 'PAPELETA,' a stock 1 1
GOOD TITLE exchange receipt.
On settlement date, custodian banks only make
payment after receiving the 'PAPELETA' from
the broker, which represents legal title.
The broker delivers the share certificates,
or a previously traded 'PAPELETA' and a
transfer letter, to the stock exchange. The
stock exchange sends share certificates to
the registrar companies, which take 10-15
days to re-issue securities. The registrar
companies return the registered shares to the
stock exchange, who forwards them to the
custodian bank. Securities can be sold while
out for re-registration.
--------------------------------------------------------------------------------
INTERIM Registration is effected by the registrars,
EXPOSURE who receive the shares from the stock 2 2
TYPE exchange.
--------------------------------------------------------------------------------
DEFAULT There are minimal limited default protections
PROTECTION in the form of a stock exchange guaranty fund 3 3
of COP3.5 million (approximately US$3,276),
which covers brokers and is available to all
market participants. However, there are no
loss sharing provisions for participants in
the payment system.
--------------------------------------------------------------------------------
BUY-SIDE FINALITY AVERAGE 2.0 2.0
--------------------------------------------------------------------------------
-13-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
EQUITY, REGISTERED CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
FINALITY - BUY-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good funds are received on settlement date
RECEIPT OF or SD+1, depending on the method of payment, 2 2
GOOD FUNDS after securities are released.
On settlement date, the custodian bank
exchanges a 'PAPELETA' and transfer letter,
and/or share certificates for either a
cashier's check or a wire payment via the
central bank's electronic payment system,
SEBRA. Wires can be confined as received as
the electronic wire payments are effective
immediately, whereas payment by check settles
on SD+1. However, over 98% of payments are
made by cashier's check. This results in
overnight exposure to clearing banks, as
securities are released PRIOR to receipt of
good funds.
{Payment via wire transfer would eliminate
overnight exposure.}
--------------------------------------------------------------------------------
INTERIM Payment exposure is to clearing banks, until
EXPOSURE good funds are received. 2 2
TYPE
{There is no exposure with wire transfers.}
--------------------------------------------------------------------------------
DEFAULT There are minimal default protections and no
PROTECTION loss sharing provisions. For details, see 3 3
above.
--------------------------------------------------------------------------------
SELL-SIDE FINALITY AVERAGE 2.3 2.3
--------------------------------------------------------------------------------
-14-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
EQUITY, REGISTERED CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
FINALITY - TITLE VS. CASH SUMMARY
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TITLE Securities and cash settle separately. Good
title is received upon delivery of a Tc Tc
VS. 'PAPELETA,' the stock exchange receipt,
before payment is made. Good funds are
CASH received on settlement date or SD+1,
depending on the method of payment. Wire
payments via the central bank's payment
system are effective immediately, while a
clearing bank's cashier check clears on SD+1.
Sellers have overnight exposure to clearing
banks for payment by cashier check, as
securities are released before payment is
made.
--------------------------------------------------------------------------------
TITLE VS. CASH ASSESSMENT (BEST < - > WORST) 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TC Good title is exchanged with good funds simultaneously at settlement.
Tc Good title is received at settlement, but good funds lag settlement.
tC Good funds are received at settlement, but good title lags settlement.
tc The instruments exchanged on settlement date, if any, involve interim
exposures.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENTS HAVE BEEN DEVISED TO ASSIST
INVESTORS AS AN EXPOSURE IDENTIFICATION TOOL. THE ANALYSIS CONTAINED HEREIN
AND AS REVISED FROM TIME TO TIME IS INTENDED TO AUGMENT, RATHER THAN
SUBSTITUTE FOR, INVESTOR DUE DILIGENCE. WHILE WE MAKE EVERY EFFORT TO ENSURE
ACCURACY, CHASE ASSUMES NO LIABILITY FOR ANY LOSSES AND/OR DAMAGES,
CONSEQUENTIAL OR OTHERWISE, WHICH MAY RESULT FROM APPLICATION OF THE
INFORMATION CONTAINED HEREIN.
--------------------------------------------------------------------------------
-15-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
GOVERNMENT DEBT - DCV
--------------------------------------------------------------------------------
EFFICIENCY MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TRADE There is no formal trade matching, although
MATCHING local custodian banks make every effort to 3 3
effect matching on behalf of their clients.
In addition, there is a numbering system
which facilitates matching, but does not
conform to the ISIN standard.
--------------------------------------------------------------------------------
SETTLEMENT Securities and cash settle on a gross basis.
TYPE 3 3
--------------------------------------------------------------------------------
SECURITIES Securities are dematerialized.
TYPE 1 1
--------------------------------------------------------------------------------
DEPOSITORY DepOsito Central de Valores (DCV) is the
central registry for government debt issued, 1 1
guaranteed or administered by the central
bank. Although settlement is not mandatory
in the DCV, there is greater exposure to
sellers settling outside the DCV and
withdrawal of securities is difficult to
arrange. The DCV was established in 1990,
and is owned by the central bank. There are
contingency plans in place to address
business continuity.
--------------------------------------------------------------------------------
FAILURE There are no defined failure provisions or
PROVISIONS buy-in requirements. In addition, securities 3 3
lending is not permitted.
--------------------------------------------------------------------------------
TRADE DATE/ Settlement normally takes place on trade
SETTLEMENT date, but can be extended to T+5. Most 1 1
DATE LAPSE foreigners settle on T+1.
--------------------------------------------------------------------------------
REGULATORY The Superintendency of Securities (SDV)
OVERSIGHT regulates the stock exchanges and market 2 2
participants. The Superintendency of Banks
and the central bank oversee financial
institutions and the payment system, SEBRA.
The regulators consistently enforce existing
rules and regulations, and continue to
develop regulations in conjunction with new
market activities.
--------------------------------------------------------------------------------
SECURITIES A number of regulations were established in
LEGAL 1991 and amended by Resolution 1.295 of 1996, 2 2
FRAMEWORK which govern investment and market practices.
The banking sector is covered by Resolution
663 from 1993. Although relatively new, the
securities legal framework continues to
evolve with developments in the capital
markets. In addition, there are no
arbitration procedures in place.
--------------------------------------------------------------------------------
EFFICIENCY AVERAGE 2.0 2.0
--------------------------------------------------------------------------------
-16-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
GOVERNMENT DEBT - DCV
--------------------------------------------------------------------------------
FINALITY - BUY-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good title is effective on settlement date
RECEIPT OF upon receipt in DCV. 1 1
GOOD TITLE
On settlement date, the buyer's custodian
bank only makes payment after confirming
title electronically on their DCV account.
--------------------------------------------------------------------------------
INTERIM The central registry effects book-entry
EXPOSURE movement of title. 1 1
TYPE
--------------------------------------------------------------------------------
DEFAULT There are minimal limited default protections
PROTECTION in the form of a stock exchange guaranty fund 3 3
of COP3.5 million (approximately US$3,276)
which cover brokers and is available to all
market participants. However, there are no
loss sharing provisions for participants in
the payment system, SEBRA.
--------------------------------------------------------------------------------
BUY-SIDE FINALITY AVERAGE 1.7 1.7
--------------------------------------------------------------------------------
-17-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
GOVERNMENT DEBT - DCV
--------------------------------------------------------------------------------
FINALITY - SELL-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good funds are received on settlement date or
RECEIPT OF SD+1, depending on the method of payment, 2 2
GOOD FUNDS after securities are released.
On settlement date, the custodian bank
instructs movement of title in DCV after
receiving either a cashier's check or a wire
payment via the central bank's electronic
payment system, SEBRA. The seller's
custodian bank can confirm receipt of the
wire payments electronically, as they are
effective immediately, whereas payment by
check settles on SD+1. However, over 98% of
payments are made by cashier's check. This
results in overnight exposure to clearing
banks, as securities are released PRIOR to
receipt of good funds.
{Payment via wire transfer would eliminate
overnight exposure.}
--------------------------------------------------------------------------------
INTERIM Payment exposure is to clearing banks, until
EXPOSURE good funds are received. 2 2
TYPE
{There is no exposure with wire transfers.}
--------------------------------------------------------------------------------
DEFAULT There are minimal default protections, and no
PROTECTION loss sharing provisions. For details, see 3 3
above.
--------------------------------------------------------------------------------
SELL-SIDE FINALITY AVERAGE 2.3 2.3
--------------------------------------------------------------------------------
-18-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
GOVERNMENT DEBT - DCV
--------------------------------------------------------------------------------
FINALITY - TITLE VS. CASH SUMMARY
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TITLE Securities and cash settle separately. Good
title is received upon receipt in DCV, before Tc Tc
VS. payment is made. Good funds are received on
settlement date or SD+1, depending on the
CASH method of payment. Wire payments via the
central bank's payment system are effective
immediately, while a clearing bank's
cashier's check clears on SD+1. Sellers have
overnight exposure to clearing banks, as
securities are released before payment is
made.
--------------------------------------------------------------------------------
TITLE VS. CASH ASSESSMENT (BEST < - > WORST) 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TC Good title is exchanged with good funds simultaneously at settlement.
Tc Good title is received at settlement, but good funds lag settlement.
tC Good funds are received at settlement, but good title lags settlement.
tc The instruments exchanged on settlement date, if any, involve interim
exposures.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENTS HAVE BEEN DEVISED TO ASSIST
INVESTORS AS AN EXPOSURE IDENTIFICATION TOOL. THE ANALYSIS CONTAINED HEREIN
AND AS REVISED FROM TIME TO TIME IS INTENDED TO AUGMENT, RATHER THAN
SUBSTITUTE FOR, INVESTOR DUE DILIGENCE. WHILE WE MAKE EVERY EFFORT TO ENSURE
ACCURACY, CHASE ASSUMES NO LIABILITY FOR ANY LOSSES AND/OR DAMAGES,
CONSEQUENTIAL OR OTHERWISE, WHICH MAY RESULT FROM APPLICATION OF THE
INFORMATION CONTAINED HEREIN.
--------------------------------------------------------------------------------
-19-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
PHYSICAL CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
EFFICIENCY MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TRADE There is no formal trade matching, although
MATCHING local custodian banks make every effort to 3 3
effect matching on behalf of their clients.
In addition, there is a numbering system
which facilitates matching, but does not
conform to the ISIN standard.
--------------------------------------------------------------------------------
SETTLEMENT Securities and cash settle on a gross basis.
TYPE 3 3
--------------------------------------------------------------------------------
SECURITIES Securities can be immobilized at the central
TYPE depository. However, over 80% of securities 3 3
are held in physical form, of which 30% are
in bearer form. (See separate assessment for
registered physical debt: Equity, Registered
Corporate + Government Debt).
--------------------------------------------------------------------------------
DEPOSITORY Deposito Central de Valores (DECEVAL) is the
central depository. It is not mandatory to 3 3
hold securities in DECEVAL and most market
participants, including Chase's subcustodian
bank, do not use it because of market
concerns about deficient practices at the
depository, including lack of corporate
action services. DECEVAL was established in
1992, and is owned by the three stock
exchanges in Columbia and 57 financial
institutions. At year end 1996 equity was
COP5 billion (approximately US$5 million).
There are contingency plans in place to
address business continuity.
--------------------------------------------------------------------------------
FAILURE There are no defined failure provisions or
PROVISIONS buy-in requirements. In addition, securities 3 3
lending is not permitted
--------------------------------------------------------------------------------
TRADE DATE/ Settlement normally takes place on trade
SETTLEMENT date, but can be extended to T+5. Most 1 1
DATE LAPSE foreigners settle on T+1.
--------------------------------------------------------------------------------
REGULATORY The Superintendency of Securities (SDV)
OVERSIGHT regulates the stock exchanges and market 2 2
participants. The Superintendency of Banks
and the central bank oversee financial
institutions and the payment system, SEBRA.
The regulators consistently enforce existing
rules and regulations, and continue to
develop regulations in conjunction with new
market activities.
--------------------------------------------------------------------------------
SECURITIES A number of regulations were established in
LEGAL 1991 and amended by Resolution 1.295 of 1996, 2 2
FRAMEWORK which govern investment and market practices.
The banking sector is covered by Resolution
663 from 1993. Although relatively new, the
securities legal framework continues to
evolve with developments in the capital
markets. In addition, there are no
arbitration procedures in place.
--------------------------------------------------------------------------------
EFFICIENCY AVERAGE 2.5 2.5
--------------------------------------------------------------------------------
-20-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
PHYSICAL CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
FINALITY - BUY-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good title is effective on settlement date
RECEIPT OF upon receipt of the endorsed bearer 1 1
GOOD TITLE certificates.
On settlement date, custodian banks only make
payment after receiving endorsed bearer
certificates from the broker, which
represents legal title.
--------------------------------------------------------------------------------
INTERIM As securities are in bearer form, there is no
EXPOSURE exposure. 1 1
TYPE
--------------------------------------------------------------------------------
DEFAULT There are minimal default protections in the
PROTECTION form of a stock exchange guaranty fund of 3 3
COP3.5 million (approximately US$3,276) which
cover brokers and is available to all market
participants. However, there are no loss
sharing provisions for participants in the
payment system, SEBRA.
--------------------------------------------------------------------------------
BUY-SIDE FINALITY AVERAGE 1.7 1.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
FINALITY - SELL-SIDE MARKET PRACTICES
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TIMING OF Good funds are received on settlement date or
RECEIPT OF SD+1, depending on the method of payment, 2 2
GOOD FUNDS after securities are released.
On settlement date, the custodian bank
exchanges certificate for either a cashier's
check or a wire payment via the central
bank's electronic payment system, SEBRA. The
seller's custodian bank can confirm receipt
of the wire payments electronically, as they
are effective immediately, whereas payment by
check settles on SD+1. However, over 98% of
payments are made by cashier's check. This
results in overnight exposure to clearing
banks, as securities are released PRIOR to
receipt of good funds.
{Payment via wire transfer would eliminate
overnight exposure.}
--------------------------------------------------------------------------------
INTERIM Payment exposure is to clearing banks, until
EXPOSURE good funds are received. 2 2
TYPE
{There is no exposure with wire transfers.}
--------------------------------------------------------------------------------
DEFAULT There are minimal default protections, and no
PROTECTION loss sharing provisions. For details, see 3 3
above.
--------------------------------------------------------------------------------
SELL-SIDE FINALITY AVERAGE 2.3 2.3
--------------------------------------------------------------------------------
-21-
CHASE
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENT
COLOMBIA
PHYSICAL CORPORATE + GOVERNMENT DEBT
--------------------------------------------------------------------------------
FINALITY - TITLE VS. CASH SUMMARY
--------------------------------------------------------------------------------
SCALE: 1=BEST PRACTICE 2=MID-RANGE 3=WORST PRACTICE
--------------------------------------------------------------------------------
PRACTICE DESCRIPTION MARKET CHASE
PRACTICE PRACTICE
IMPACT
--------------------------------------------------------------------------------
TITLE Securities and cash settle separately. Good
title is received upon receipt of the Tc Tc
VS. endorsed bearer certificates. Good funds are
received on settlement date or SD+1,
CASH depending on the method of payment. Wire
payments via the central bank's payment
system are effective immediately, while a
clearing bank's cashier's check clears on
SD+1. Sellers have overnight exposure to
clearing banks, as securities are released
before payment is made.
--------------------------------------------------------------------------------
TITLE VS. CASH ASSESSMENT (BEST < - > WORST) 2 2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
TC Good title is exchanged with good funds simultaneously at settlement.
Tc Good title is received at settlement, but good funds lag settlement.
tC Good funds are received at settlement, but good title lags settlement.
tc The instruments exchanged on settlement date, if any, involve interim
exposures.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SETTLEMENT SYSTEM MARKET PRACTICE ASSESSMENTS HAVE BEEN DEVISED TO ASSIST
INVESTORS AS AN EXPOSURE IDENTIFICATION TOOL. THE ANALYSIS CONTAINED HEREIN
AND AS REVISED FROM TIME TO TIME IS INTENDED TO AUGMENT, RATHER THAN
SUBSTITUTE FOR, INVESTOR DUE DILIGENCE. WHILE WE MAKE EVERY EFFORT TO ENSURE
ACCURACY, CHASE ASSUMES NO LIABILITY FOR ANY LOSSES AND/OR DAMAGES,
CONSEQUENTIAL OR OTHERWISE, WHICH MAY RESULT FROM APPLICATION OF THE
INFORMATION CONTAINED HEREIN.
--------------------------------------------------------------------------------
-22-
