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 Trust (the "Trust"), 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 Trust 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 Trust is
for any other reason indebted to Custodian, including any indebtedness
to The Bank of New York under the Trust'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 Trust 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 Trust 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 Trust 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 Trust 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 Trust 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 TRUST
By: /s/ Xxxxx X. Xxxxx, Xx.
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Xxxxx X. Xxxxx, Xx.
Assistant Secretary
