1
Exhibit (9)(h)
SECURITIES LENDING AGREEMENT
FOR THE ONE GROUP(R) INVESTMENT TRUST
This Securities Lending Agreement (the "Agreement") is entered into as
of June 15, 1998 by and between The One Group Investment Trust, an open-end
management investment company formed under the Investment Company Act of 1940
(the "Lender"), Banc One Investment Advisors Corporation, an investment adviser
under the Investment Advisers Act of 1940 (the "Advisor"), and Bank One Trust
Company, N.A., a national banking association (the "Subcustodian").
BACKGROUND INFORMATION
A. The Advisor serves as investment Advisor to the Lender
pursuant to an Investment Advisory Agreement dated August 1,
1994, as amended from time to time.
B. The Advisor in conjunction with the Subcustodian has developed
a securities lending program (the "Securities Lending
Program"), (the exact terms and conditions of which are
contained in, and subject to this Agreement) pursuant to which
Advisor will provide lending agent services to Lender for
purposes of lending Lender's securities.
C. The Lender desires to appoint the Advisor as its lending agent
and Subcustodian as its custodian for the purpose of lending
securities. The Advisor has agreed to act as agent for the
Lender and the Subcustodian has agreed to act as custodian for
the Lender in accordance with the terms of this Agreement. The
Lender has established a securities lending account for each
fund of the Lender (collectively, the "Accounts") with the
Subcustodian which will, from time to time, hold the
securities which are the subject of, and can be loaned
pursuant to the terms and conditions of this Agreement.
STATEMENT OF AGREEMENT
The parties hereby acknowledge the accuracy of the foregoing background
information and hereby agree as follows:
Section l. APPOINTMENT. The Lender hereby appoints the Advisor as its
agent to act as set forth in this Agreement and the Advisor hereby accepts the
appointment as agent and agrees to so act. The Lender agrees that the Advisor is
acting as a fully disclosed agent and not as principal in connection with the
Securities Lending Program. The Advisor and the Subcustodian shall have the
right to disclose the identity of the Lender to any Borrower as defined herein
or give notice that such identity is available upon request.
Lender is a series investment company consisting of a variety of
investment portfolios and is entering this Agreement on behalf of the investment
portfolios identified on EXHIBIT A attached hereto and incorporated hereby by
reference ("Funds"). Any reference to Lender in this Agreement shall be deemed a
reference solely to the particular Fund to which a given lending transaction
under this Agreement relates. Under no circumstances shall the rights,
obligations, or remedies with respect to a particular Fund constitute a right,
obligation or remedy applicable to any other Fund. In particular and without
limiting the generality of the foregoing: (a) any event of default regarding one
Fund shall not create any right or obligation with respect to any other Fund,
(b) Advisor and the Subcustodian shall have no right to set off claims of a Fund
by applying property of any other Fund, and (c) no Fund shall have the right to
set off against assets or property held by a Borrower or Subcustodian for any
other Fund.
Lender was created under as a Massachusetts Business Trust under a
Declaration of Trust filed on June 7, 1993 as amended by the Amended Declaration
of Trust (the "Trust Agreement"). The Trust Agreement provides, among other
things, that trustees of Lender are responsible for the actions of Lender in
their capacity as trustees and not personally. Advisor expressly acknowledges
and agrees that the obligations of Lender hereunder shall not be binding upon
any of the shareholders, trustees, officers, employees or agents of Lender, but
shall only bind the trust property of Lender, as provided in the Trust
Agreement. The execution and delivery of this Agreement by an officer of the
Lender has been approved by the trustees of the Lender, and neither the
authorization nor the execution and
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delivery shall be deemed to have been made by any of them individually or to
impose any liability on any of them personally, but shall bind only the trust
property of the Lender as provided in the Trust Agreement.
Section 2. AUTHORIZATION AND APPROVAL OF BORROWERS. The Advisor has
reviewed and approved the standard form of Master Securities Loan Agreement
attached hereto as EXHIBIT B and substantially similar agreements heretofore
executed by the Subcustodian for the lending of customer securities and
substantially similar agreements hereafter approved by Advisor and executed by
the Subcustodian (the "Loan Agreement" or "Loan Agreements"). The Lender hereby
authorizes the Advisor to lend securities delivered to the Subcustodian in
accordance with the Loan Agreements to any of the Borrowers specified by Advisor
on the list attached hereto as EXHIBIT C as amended from time to time by the
Advisor (each a "Borrower").
The Advisor is authorized to negotiate rebates with the Borrower to be paid to
the Borrower for the use of Cash Collateral (as defined in section 8(c)) as well
as the fees to be paid to the Lender for the loan of securities collateralized
by Collateral other than Cash Collateral.
Section 3. LENDER'S REPRESENTATIONS. In order to permit the Advisor and
the Subcustodian to make such representations as may be required by the Loan
Agreement, the Lender hereby represents and warrants to the Advisor, which
representations and warranties shall be deemed to be continuing and to be
reaffirmed on any day that a loan under this Agreement is outstanding, that:
(a) This Agreement is, and each loan will be, legally and validly
entered into, does not, and will not, violate any statute, regulation, rule,
order, or judgment binding on the Lender, or any agreement binding on the Lender
or affecting its property, and is enforceable against the Lender in accordance
with its terms, except as may be limited by bankruptcy, insolvency, or similar
laws, or by equitable principles relating to or limiting creditors' rights
generally;
(b) The person executing this Agreement and any other persons
designated from time to time by the Lender in writing (each such person, an
"Authorized Person") are duly and properly authorized to act on behalf of the
Lender or the Advisor, respectively;
(c) The Lender owns the securities held in each Account or subject to a
loan under this Agreement free and clear of all liens, claims, security
interests and encumbrances and no such security has been sold. Lender agrees to
immediately notify the Advisor and identify any of the Securities which are no
longer subject to the representations set forth in this paragraph (c) or which
are otherwise being withdrawn from participation in the Securities Lending
Program;
(d) The Lender is acting as principal with respect to loans made under
this Agreement; and
(e) The Lender is not subject to the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") with respect to this Agreement and
the securities held in the Account.
Section 4. LOAN OPPORTUNITIES. The Lender acknowledges and agrees that
the Advisor or the Subcustodian may lend securities owned by other of the
Advisor's or the Subcustodian's customers to Borrowers. The Lender agrees that
it shall have no claim against the Advisor or the Subcustodian based on, or
relating to, loans made for other customers or loan opportunities refused
hereunder, whether or not the Advisor has made fewer or more loans for any other
customer than for the Lender, and whether or not any loan for another customer,
or the opportunity refused, could have resulted in loans made under this
Agreement.
Section 5. MAKING OF LOANS. The Advisor will notify Borrowers that it
is prepared to lend securities of the Lender held in the Account. If the Advisor
determines, in response to a Borrower's orally advising the Advisor of its
desire to borrow securities, to lend securities of the Lender pursuant to a Loan
Agreement, the Advisor will instruct the Subcustodian to deliver the securities,
and is hereby authorized to take such actions to effect the loan
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as are required by the Loan Agreement; provided, however, that the Advisor shall
lend no more than 33-1/3% of the Fund's total assets. For each Borrower, the
Advisor shall establish a maximum limit on the amount of securities that will be
delivered to each Borrower in connection with loans of the Lender's securities
(the "Borrower Limit"). The Subcustodian shall not deliver Lender's securities
to a Borrower when the value of the loan exceeds the Borrower Limit.
Section 6. LOAN TERMINATION. The Advisor shall, subject to the terms of
the Loan Agreement, terminate a loan made to a Borrower whenever the Advisor
shall actually receive:
(a) oral or written instructions to terminate the loan from a
person believed by the Advisor to be an Authorized Person of
the Lender;
(b) oral or written notice from the Lender that the loaned
security is no longer subject to the representations set form
in section 3(c) or that the securities are no longer eligible
for participation in the Securities Lending Program;
(c) a written instruction from an Authorized Person or a person
believed by the Advisor to be an Authorized Person of the
Lender that the Borrower with whom the loan is outstanding is
to be deleted from the list referred to in Section 2 hereof;
(d) actual notice of a default under any Loan Agreement pursuant
to which securities have been loaned; or
(e) termination of this Agreement.
Notwithstanding the foregoing or any other provision in this Agreement,
the Advisor may at any time terminate any loan in its absolute discretion.
Section 7. OUTSTANDING LOANS. Subject to the supervision of the
Advisor, the Subcustodian shall perform the following acts in connection with
loans of securities hereunder:
(a) enter into Loan Agreements on such terms as approved by the
Advisor;
(b) receive and release Collateral as provided in the applicable
Loan Agreement;
(c) receive distributions on loaned securities;
(d) accept substitutions of Collateral and execute and deliver or
send any receipts required under the Loan Agreement in
connection therewith;
(e) deliver and receive securities in accordance with instructions
from the Advisor;
(f) make investments of Cash Collateral in accordance with
instructions of the Advisor;
(g) take such action upon termination of a loan as may be directed
by the Advisor; and
(h) within a reasonable time after learning of a default, give
notice thereof to the Advisor, and thereafter take such
actions, if any, as may be specified by the Advisor.
The Advisor shall perform the following acts in connection with loans of
securities hereunder:
(a) select Borrowers with whom loans of securities may be made
hereunder;
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(b) negotiate the terms of the loans;
(c) invest Cash Collateral in accordance with Section 8 hereof;
(d) prepare each business day a xxxx-to-market valuation of the
then fair market value of the loaned securities, including
income accrued but unpaid thereon and instruct the
Subcustodian to receive and release Collateral as provided in
the applicable Loan Agreement;
(e) within a reasonable time after learning of a default, give
notice thereof to the Lender, and thereafter take such
actions, if any, as may be specified in written instructions
actually received from a person believed by the Advisor to be
an Authorized Person of the Lender. In the absence of
instructions from the Lender to the Advisor, Advisor is
authorized, without notice to Lender, to exercise such rights
of Lender and to pursue such available remedies of Lender
under the appropriate Loan Agreement as it deems appropriate;
provided, however, nothing herein shall require Advisor or the
Subcustodian to expend their own funds to exercise such rights
or pursue such remedies; and
(f) take such action upon termination of a loan as may be required
by the Loan Agreement.
Section 8. COLLATERAL.
(a) In connection with loans of securities made on behalf of the Lender
that are secured by collateral other than letters of credit, the Advisor agrees
to limit collateral accepted and investments of cash collateral to those
securities in which the Fund of the Lender owning the loaned securities could
invest and, subject to this requirement, the Lender authorizes the Advisor: (i)
to accept collateral of the types which are designated on EXHIBIT D with such
changes as recommended from time to time by the Advisor with the approval of the
Lender (the "Collateral"); and (ii) to invest cash received as collateral for a
loan of securities in any of the types of investments specified on EXHIBIT D as
modified from time to time. Where a loan of securities is to be collateralized
by a letter of credit, the Advisor shall instruct the Subcustodian to accept
only an irrevocable letter of credit that contains an immediate draw-down
capability from a financial institution listed on the Advisor's Bank Approved
List(s), a copy of which is attached hereto as EXHIBIT F, with such additions
and deletions as are approved by the Advisor. The Lender hereby authorizes the
Advisor to purchase or sell investments of Cash Collateral to or from other
accounts advised by the Advisor or held by its affiliates.
(b) All uncertificated U.S. government or agency securities, and any
other securities received by the Subcustodian as Collateral in connection with
any transactions involving Cash Collateral (as defined below), shall be
segregated by a separate recordation hereunder on the books of the Subcustodian,
and may be held as the Subcustodian may determine in any form or manner in which
the Subcustodian is permitted to hold securities including, without limitation,
by depositing the same with a subcustodian or agent as have been approved by the
Lender or in the Federal Reserve/Treasury Book-Entry System (the "Book-Entry
System") or the Depository Trust Company (the "Depository"), or their respective
successors or nominees. Subcustodian is hereby authorized to enter into such
agreements as are necessary to appoint such agents, subcustodians, and
Depositories.
(c) All money received as, or with respect to, Collateral, including
money received with respect to investment of the same, or upon the maturity,
sale, or liquidation of any such investments ("Cash Collateral"), may, in the
Advisor's sole discretion, be invested and reinvested in the types of
investments listed in EXHIBIT D as modified from time to time.
(d) Notwithstanding the foregoing, or any other provision contained in
this Agreement, the Advisor shall at all times have: (i) the right to cause the
Subcustodian to hold in the Collateral Account (as defined in section 10) a
portion of the Cash Collateral uninvested without any obligation to pay interest
thereon whenever the Advisor, in its sole discretion, deems it advisable,
provided the Advisor uses its best efforts to minimize such amount, and (ii)
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the absolute right, without obtaining any approval of the Lender, to liquidate
any investment or reinvestment and cause the net proceeds to be credited to the
Account.
(e) The Subcustodian shall maintain the notifications required by
applicable law with respect to securities transactions involving Cash Collateral
and shall furnish monthly activity statements. The Subcustodian shall comply
with all applicable legal requirements regarding the custody of the Lender's
securities under the Investment Company Act of 1940 and the rules and
regulations promulgated thereunder including, if applicable, Rule 17f-2.
(f) The Subcustodian shall execute, as agent for the Lender, any
certificates of ownership, declarations or other certificates required under the
tax laws or pursuant to any other law or governmental regulation now or
hereafter in effect with respect to securities held as Collateral. The
Subcustodian shall, in addition, supply any information regarding Collateral
transactions required by any applicable law or governmental regulation without
first giving notice to the Lender or the Advisor.
(g) The Advisor shall take such actions with respect to the Collateral
as are required from time to time pursuant to any Loan Agreement.
(h) All investments of Cash Collateral made in accordance with this
Agreement shall be for the account and risk of the Lender. To the extent that
any loss arising out of such investments of Cash Collateral results in a
deficiency in the amount of Cash Collateral available for return to a Borrower
pursuant to the Loan Agreement, the Lender agrees to pay the Subcustodian on
demand cash in an amount equal to such deficiency. In addition, the Subcustodian
shall be entitled to charge the Lender's accounts for such deficiency in
accordance with Section 10 of this Agreement.
(i) All Collateral and securities or other property acquired through
the investment of Cash Collateral shall be controlled by, and subject to the
instructions of, the Advisor; provided, however, that the Advisor shall comply
with any instructions of the Lender with respect to the same.
Section 9. SUBCUSTODIAN'S FEES. The Lender shall in connection with
each loan hereunder pay to the Subcustodian the fee (the "Subcustodian's Fee")
as specified on EXHIBIT E, which Subcustodian's Fee shall accrue daily.
Section 10. THE COLLATERAL ACCOUNT. The Advisor and the Subcustodian
shall act as follows with respect to the account in which the Subcustodian holds
Collateral on behalf of the Lender (the "Collateral Account"):
(a) The Subcustodian shall monthly: (i) credit the Collateral Account
with all amounts, if any, paid by a Borrower in connection with a loan
collateralized in whole or in part with Collateral other than Cash Collateral;
(ii) credit the Collateral Account with the earnings, if any, arising from the
investment of Cash Collateral; (iii) debit the Collateral Account by an amount
equal to the amounts to be paid to the Borrower pursuant to the Loan Agreement;
and (iv) debit the Collateral Account in an amount equal to the accrued
Subcustodian's Fee described in Section 9 hereof;
(b) Whenever the Loan Agreement requires a return of Cash Collateral,
the Subcustodian shall debit the Collateral Account by the amount so returned;
(c) In the event debits to the Collateral Account pursuant to the
foregoing subsections 10(a) and 10(b) produce a deficit therein, the
Subcustodian shall sell or otherwise liquidate investments made with Cash
Collateral and credit the net proceeds of such sale or liquidation to satisfy
the deficit. In the event the foregoing does not eliminate the deficit, the
Subcustodian shall have the right to charge the deficiency to any other account
or accounts
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maintained by the Lender with the Subcustodian; provided, however, that the
Subcustodian shall not have the right to charge any accounts maintained for one
Fund (as defined in section 1 hereof) for the obligations of another Fund.
(d) If the Subcustodian, in its sole discretion, advances funds on
behalf of the Lender in order to eliminate a deficiency created under the
foregoing subsections 10(a), 10(b), or 10(c), the Subcustodian shall notify the
Advisor. Upon receipt of such notice by the Advisor, the Lender agrees to repay
the Subcustodian upon demand the amount of any advance described herein plus
accrued interest at a rate per annum (based on a 360-day year for the actual
number of days involved) not to exceed the fed funds rate as publicly announced
to be in effect from time to time, such rate to be adjusted on the effective
date of any change in the fed funds rate.
(e) Except with respect to amounts representing the crediting of a Loan
Fee as defined in the Loan Agreement, if any, paid by a Borrower, money from
time to time held in the Collateral Account shall be controlled by, and subject
to the instructions of, the Advisor; provided, however, that the Advisor shall
comply with any instructions of the Lender with respect to the same.
Section 11. RIGHTS OF BORROWERS WITH RESPECT TO LOANED SECURITIES.
Until a loan is terminated in accordance with Section 6, the Borrower shall
exercise all of the incidents of ownership of the loaned securities, including
the right to transfer the loaned securities to others; provided, however, that
the Lender shall be entitled to receive distributions, dividends, and other
payments made on or in connection with the loaned securities to the extent
provided and in accordance with the terms of the applicable Loan Agreement. The
Lender hereby expressly waives the right to vote any securities that are subject
to a loan.
Section 12. RESPONSIBILITY. The Advisor and the Subcustodian undertake
to perform such duties and only such duties as are specifically set forth in
this Agreement. The Advisor and the Subcustodian shall not be liable for any
loss or damage, including counsel fees and court costs, whether or not resulting
from their acts or omissions to act hereunder or otherwise, unless the loss or
damage arises out of the Advisor's or the Subcustodian's own negligence. Except
for any liability, loss, or expense arising from or connected with the Advisor's
or the Subcustodian's own negligence, the Lender agrees to reimburse and hold
the Advisor and the Subcustodian harmless from and against any liability, loss
and expense, including counsel fees and expenses and court costs, arising in
connection with this Agreement or any Loan Agreement or arising from or
connected with claims of any third parties, including any Borrower, from and
against all taxes and other governmental charges, and from and against any
out-of-pocket or incidental expenses. The Subcustodian may charge any amounts to
which it or the Advisor is entitled hereunder against the Account. Without
limiting the generality of the foregoing, the Lender agrees: (i) that the
Advisor and the Subcustodian shall not be responsible for any statements,
representations, or warranties which any Borrower makes in connection with any
securities loans hereunder, if reasonably relied upon in good faith, or for the
performance by any Borrower of the terms of the Loan Agreement, or any agreement
related thereto; (ii) that the Advisor and the Subcustodian shall be fully
protected in acting in accordance with the oral or written instructions of any
person reasonably believed by them to be an Authorized Person; (iii) that in the
event of a default by a Borrower under the Loan Agreement, the Advisor and the
Subcustodian shall be fully protected in acting in accordance with this
Agreement; and (iv) that the Advisor and the Subcustodian shall not be under any
duty or obligation to advance or expend their own funds to take action to effect
payment by a Borrower of any amounts owed by the Borrower pursuant to the Loan
Agreement, provided the Subcustodian timely advises the Advisor of the
non-payment by the Borrower of any such amount. The indemnification provided to
Advisor and the Subcustodian hereunder shall survive termination of this
Agreement. The Lender acknowledges and agrees that all investments of Cash
Collateral shall be for the account of the Lender and any reinvestment risk
associated with Cash Collateral shall be borne solely by the Lender and that
neither the Advisor nor the Subcustodian shall provide indemnification to the
Lender in connection with this Agreement or the Securities Lending Program.
Section 13. SEVERABILITY. If any provisions of this Agreement shall be
held or made invalid by a statute, rule, regulation, decision of a tribunal or
otherwise, the remainder of this Agreement shall not be affected thereby and, to
this extent, the provisions of this Agreement shall be deemed to be severable.
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Section 14. EXCLUSIVITY. The Lender agrees that it shall not enter into
any other securities loan agreement with any other bank or securities
broker/dealer whereby the other bank or broker/dealer is permitted to make loans
on behalf of the Lender of securities held by the Subcustodian as the Lender's
custodian.
Section 15. CONFLICTS OF INTEREST AND DISCLOSURE. NOTHING IN THIS
AGREEMENT SHALL PRECLUDE THE ADVISOR, THE SUBCUSTODIAN, OR THEIR AFFILIATES FROM
ENTERING INTO SEPARATE ARRANGEMENTS OR AGREEMENTS WITH BORROWERS INVOLVING THE
PROVISION OF PRODUCTS OR SERVICES INCLUDING, WITHOUT LIMITATION, DEPOSITS,
LOANS, OR BROKERAGE SERVICES. THE ADVISOR AND THE SUBCUSTODIAN HEREBY DISCLOSE
THAT THEY OR THEIR AFFILIATES MAY RECEIVE COMPENSATION OR REMUNERATION FROM THE
BORROWERS IN CONNECTION WITH SUCH SEPARATE ARRANGEMENTS OR AGREEMENTS,
INCLUDING, WITHOUT LIMITATION, VOLUME DISCOUNTS AND DISCOUNTED PERIODICAL
SUBSCRIPTIONS. THE ADVISOR AND THE SUBCUSTODIAN FURTHER DISCLOSE THAT
INVESTMENTS OF CASH COLLATERAL MADE PURSUANT TO SECTION 8 MAY HAVE THEIR OWN
FEES AND EXPENSES WHICH MAY REDUCE THE EARNINGS PAYABLE TO LENDER PURSUANT TO
THIS AGREEMENT.
Section 16. STATEMENTS. The Subcustodian will at least monthly furnish
the Lender with statements relating to loans hereunder, and other information
reasonably requested by the Lender.
Section 17. NOTICES, ASSIGNMENTS, AMENDMENT, CONSTRUCTION.
(a) Any notice, instruction, other instrument or writing, authorized or
required to be given hereunder to the Subcustodian shall be sufficiently given
only if and when actually received by the Subcustodian, including receipt by
telefax, at its offices at:
Bank One Trust Company, NA
000 Xxxx Xxxxxxx Xxxx
Xxxxxxxx, XX 00000-0000
Attn: Securities Lending
or at such other place as the Subcustodian may, from time to time, designate in
writing and, except as expressly provided to the contrary herein, signed by an
Authorized Person; and any notice, other instrument, writing, report or advice
authorized or required by the Agreement to be given to the Lender shall be
sufficiently given only if and when actually received by the Lender, including
receipt by telefax, at its offices at:
The One Group Investment Trust
c/o Nationwide Advisory Services, Inc.
Three Xxxxxxxxxx Xxxxx
Xxxxxxxx, Xxxx 00000
or at such other place as the Lender may from time to time designate in writing;
and any notice, instruction, other instrument or writing authorized or required
by the Agreement to be given to the Advisor shall be sufficiently given only if
and when actually received by the Advisor, including receipt by telefax, at its
offices at:
Banc One Investment Advisors Corporation
0000 Xxxxxxx Xxxxxxx
Xxxxxxxx, Xxxx 00000
Attn.: Xxxxxx X. Xxxxxx
or at such other place as the Advisor may from time to time designate in
writing.
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(b) This Agreement shall not be assignable by the parties hereto
without the written consent of the other parties. This Agreement shall be
binding upon each party and its respective successors and permitted assigns;
(c) This Agreement constitutes the entire agreement between the parties
hereto with respect to the transactions contemplated hereby and supersedes all
prior discussions, understandings, agreements and negotiations between the
parties hereto with respect to such transactions. This Agreement shall not be
amended or modified in any manner except by a written agreement executed by the
parties hereto with the same formality as this Agreement;
(d) This Agreement shall be governed by and construed in accordance
with the laws of the State of Ohio;
(e) The headings in this Agreement are for convenience only and shall
not be used in construing this Agreement; and
(f) Either the Lender or the Advisor may terminate this Agreement by
delivering to the other party a written notice specifying a date of termination,
not earlier than the date of receipt of such notice by the other party, provided
that this Agreement shall continue in full force and effect with respect to all
loans of securities in effect on the date of termination.
Section 18. CUSTODY. Lender acknowledges that the Advisor is only
performing the securities lending services described in this Agreement and that
the Advisor retains no custody or possession of the securities, assets, and/or
cash in the Account and performs no depository services with respect to the
Account.
Section 19. ARBITRATION. Any controversy or claim arising out of or
relating to this Agreement, or the breach of the same, shall be settled through
consultation and negotiation in good faith and a spirit of mutual cooperation.
However, if those attempts fail, the parties agree that any misunderstandings or
disputes arising from this Agreement shall be decided by arbitration which shall
be conducted, upon request by either party, before three (3) arbitrators (unless
both parties agree upon one (1) arbitrator), designated by the American
Arbitration Association (the "AAA"), in accordance with the terms of the
Commercial Arbitration Rules of the AAA, and, to the maximum extent applicable,
the United States Arbitration Act (Title 9 of the United States Code), or if
such Act is not applicable, any substantially equivalent state law. The parties
further agree that the arbitrator(s) will decide which party must bear the
expenses of the arbitration proceedings.
Section 20. SIPA NOTICE. THE PROVISIONS OF THE SECURITIES INVESTOR
PROTECTION ACT OF 1970 MAY NOT PROTECT THE LENDER WITH RESPECT TO LOANS
HEREUNDER AND, THEREFORE, THE COLLATERAL DELIVERED TO THE SUBCUSTODIAN AS
SUBCUSTODIAN FOR THE LENDER MAY CONSTITUTE THE ONLY SOURCE OF SATISFACTION OF A
BORROWER'S OBLIGATION IN THE EVENT SUCH BORROWER FAILS TO RETURN THE LOANED
SECURITIES.
SIGNATURE PAGE FOLLOWS
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IN WITNESS WHEREOF, the Lender, the Advisor, and the Subcustodian have caused
this Agreement to be duly executed as of the date first above written.
The One Group Investment Trust
("Lender")
By: /s/ Xxxxx X. Xxxxx, Xx.
---------------------------------------------
Xxxxx X. Xxxxx, Xx., President
Banc One Investment Advisors Corporation
("Advisor")
By: /s/ Xxxx X. Xxxxxx
---------------------------------------------
Xxxx X. Xxxxxx, Senior Managing Director
Bank One Trust Company, N.A.
("Subcustodian")
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxx, Officer
LIST OF EXHIBITS
Exhibit A -- List of Funds
Exhibit B -- Loan Agreement
Exhibit C -- List of Borrowers
Exhibit D -- Types of Collateral
Exhibit E -- Subscustodian's Fees
Exhibit F -- Approved Letter of Credit Banks
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EXHIBIT A
LIST OF FUNDS
JUNE 15, 1998
Government Bond Fund
Asset Allocation Fund
Growth Opportunities Fund
Large Company Growth Fund
Equity Index Fund
The One Group Investment Trust
("Lender")
By: /s/ Xxxxx X. Xxxxx, Xx.
---------------------------------------------
Xxxxx X. Xxxxx, Xx., President
Banc One Investment Advisors Corporation
("Advisor")
By: /s/ Xxxx X. Xxxxxx
---------------------------------------------
Xxxx X. Xxxxxx, Senior Managing Director
Bank One Trust Company, N.A.
("Subcustodian")
By: /s/ Xxxxxx X. Xxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxx, Officer
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EXHIBIT B
Public Securities Association
00 Xxxxx Xxxxxx. Xxx Xxxx. XX 00000-0000
Telephone (000) 000-0000
MASTER SECURITIES LOAN AGREEMENT
Dated as of
-----------------
Between:
Bank One Trust Company, NA
--------------------------------------------------
and
---------------------
This Agreement sets forth the terms and conditions under which one party
("Lender") may, from time to time, lend to the other party ("Borrower") certain
securities against a pledge of collateral. Capitalized terms not otherwise
defined herein shall have the meanings provided in Section 26.
The parties hereto agree as follows:
1. LOANS OF SECURITIES.
1.1 Subject to the terms and conditions of this Agreement, Borrower or
Lender may, from time to time, orally seek to initiate a transaction in which
Lender will lend securities to Borrower. Borrower and Lender shall agree orally
on the terms of each Loan, including the issuer of the securities, the amount of
securities to be lent, the basis of compensation, and the amount of Collateral
to be transferred by Borrower, which terms may be amended during the Loan.
1.2 Notwithstanding any other provision in this Agreement regarding when
a Loan commences, a Loan hereunder shall not occur until the Loaned Securities
and the Collateral therefor have been transferred in accordance with Section 16.
1.3 WITHOUT WAIVING ANY RIGHTS GIVEN TO LENDER HEREUNDER. IT IS
UNDERSTOOD AND AGREED THAT THE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION
ACT OF 1970 MAY NOT PROTECT LENDER WITH RESPECT TO LOANED SECURITIES HEREUNDER
AND THAT, THEREFORE, THE COLLATERAL DELIVERED TO LENDER MAY CONSTITUTE THE ONLY
SOURCE OF SATISFACTION OF
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BORROWER'S OBLIGATIONS IN THE EVENT BORROWER FAILS TO RETURN THE
LOANED SECURITIES.
2. TRANSFER OF LOANED SECURITIES.
2.1 Unless otherwise agreed, Lender shall transfer Loaned Securities to
Borrower hereunder on or before the Cutoff Time on the date agreed to by
Borrower and Lender for the commencement of the Loan.
2.2 Unless otherwise agreed, Borrower shall provide Lender, in each Loan
in which Lender is a Customer, with a schedule and receipt listing the Loaned
Securities. Such schedule and receipt may consist of (a) a schedule provided to
Borrower by Lender and executed and returned by Borrower when the Loaned
Securities are received, (b) in the case of securities transferred through a
Clearing Organization which provides transferors with a notice evidencing such
transfer, such notice, or (c) a confirmation or other document provided to
Lender by Borrower.
3. COLLATERAL.
3.1 Unless otherwise agreed, Borrower shall, prior to or concurrently
with the transfer of the Loaned Securities to Borrower, but in no case later
than the close of business on the day of such transfer, transfer to Lender
Collateral with a market value at least equal to a percentage of the market
value of the Loaned Securities agreed to by Borrower and Lender (which shall be
not less than 100% of the market value of the Loaned Securities) (the "Margin
Percentage").
3.2 The Collateral transferred by Borrower to Lender, as adjusted
pursuant to Section 8, shall be security for Borrower's obligations in respect
of such Loan and for any other obligations of Borrower to Lender. Borrower
hereby pledges with, assigns to, and grants Lender a continuing first security
interest in, and a lien upon, the Collateral, which shall attach upon the
transfer of the Loaned Securities by Lender to Borrower and which shall cease
upon the transfer of the Loaned Securities by Borrower to Lender. In addition to
the rights and remedies given to Lender hereunder, Lender shall have all the
rights and remedies of a secured party under the New York Uniform Commercial
Code. It is understood that Lender may use or invest the Collateral, if such
consists of cash. at its own risk, but that (unless Lender is a Broker-Dealer)
Lender shall, during the term of any Loan hereunder, segregate Collateral from
all securities or other assets in its possession. Lender may pledge, repledge,
hypothecate, rehypothecate, lend, relend, sell or otherwise transfer the
Collateral, or re-register Collateral evidenced by physical certificates in any
name other than Borrower's, only (a) if Lender is Broker-Dealer or (b) in the
event of a Default by Borrower. Segregation of Collateral may be accomplished by
appropriate identification on the books and records of Lender if it is a
"financial intermediary" or a "clearing corporation" within the meaning of the
New York Uniform Commercial Code.
3.3 Except as otherwise provided herein, upon transfer to Lender of the
Loaned Securities on the day a Loan is terminated pursuant to Section 5, Lender
shall be obligated to transfer the Collateral (as adjusted pursuant to Section
8) to Borrower no later than the Cutoff Time on such day
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or, if such day is not a day on which a transfer of such Collateral may be
effected under Section 16, the next day on which such a transfer may be
effected.
3.4 If Borrower transfers Collateral to Lender, as provided in Section
3.1, and Lender does not transfer the Loaned Securities to Borrower, Borrower
shall have the absolute right to the return of the Collateral: and if Lender
transfers Loaned Securities to Borrower and Borrower does not transfer
Collateral to Lender as provided in Section 3.1, Lender shall have the absolute
right to the return of the Loaned Securities.
3.5 Borrower may, upon reasonable notice to Lender (taking into account
all relevant factors, including industry practice, the type of Collateral to be
substituted and the applicable method of transfer), substitute Collateral for
Collateral securing any Loan or Loans; PROVIDED, HOWEVER, that such substituted
Collateral shall (a) consist only of cash, securities or other property that
Borrower and Lender agreed would be acceptable Collateral prior to the Loan or
Loans and (b) have a market value such that the aggregate market value of such
substituted Collateral, together with all other Collateral for Loans in which
the party substituting such Collateral is acting as Borrower, shall equal or
exceed the agreed upon Margin Percentage of the market value of the Loaned
Securities. Prior to the expiration of any letter of credit supporting
Borrower's obligations hereunder, Borrower shall, no later than the Cutoff Time
on the date such letter of credit expires, obtain an extension of the expiration
of such letter of credit or replace such letter of credit by providing Lender
with a substitute letter of credit in an amount at least equal to the amount of
the letter of credit for which it is substituted.
3.6 Lender acknowledges that, in connection with Loans of Government
Securities and as otherwise permitted by applicable law, some securities
provided by Borrower as Collateral under this Agreement may not be guaranteed by
the United States.
4. FEES FOR LOAN.
4.1 Unless otherwise agreed, (a) Borrower agrees to pay Lender a loan fee
(a "Loan Fee"), computed daily on each Loan to the extent such Loan is
secured by Collateral other than cash, based on the aggregate par value
(in the case of Loans of Government Securities) or the aggregate market
value (in the case of all other Loans) of the Loaned Securities on the
day for which such Loan Fee is being computed, and (b) Lender agrees to
pay Borrower a fee or rebate (a "Cash Collateral Fee") on Collateral
consisting of cash, computed daily based on the amount of cash held by
Lender as Collateral, in the case of each of the Loan Fee and the Cash
Collateral Fee at such rates as Borrower and Lender may agree. Except as
Borrower and Lender may otherwise agree (in the event that cash
Collateral is transferred by clearing house funds or otherwise). Loan
Fees shall accrue from and including the date on which the Loaned
Securities are transferred to Borrower to, but excluding, the date on
which such Loaned Securities are returned to Lender, and Cash Collateral
Fees shall accrue from and including the date on which the cash
Collateral is transferred to Lender to, but excluding, the date on which
such cash Collateral is returned to Borrower.
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4.2 Unless otherwise agreed, any Loan Fee or Cash Collateral Fee payable
hereunder shall be payable:
(a) in the case of any Loan of securities other than Government
Securities, upon the earlier of (i) the fifteenth day of the month
following the calendar month in which such fee was incurred or
(ii) the termination of all Loans hereunder (or, if a transfer of
cash in accordance with Section 16 may not be effected on such
fifteenth day or the day of such termination. as the case may be,
the next day on which such a transfer may be effected); and
(b) in the case of any Loan of Government Securities, upon the
termination of such Loan.
Notwithstanding the foregoing, all Loan Fees shall be payable by Borrower
immediately in the event of a Default hereunder by Borrower and all Cash
Collateral Fees shall be payable immediately by Lender in the event of a Default
by Lender.
5. TERMINATION OF THE LOAN. Unless otherwise agreed, (a) Borrower may terminate
a Loan on any Business Day by giving notice to Lender and transferring the
Loaned Securities to Lender before the Cutoff Time on such Business Day, and (b)
Lender may terminate a Loan on a termination date established by notice given to
Borrower prior to the close of business on a Business Day. The termination date
established by a termination notice given by Lender to Borrower shall be a date
no earlier than the standard settlement date for trades of the Loaned Securities
entered into on the date of such notice, which date shall, unless Borrower and
Lender agree to the contrary, be (i) in the case of Government Securities, the
next Business Day following such notice and (ii) in the case of all other
securities, the fifth Business Day following such notice. Unless otherwise
agreed, Borrower shall, on or before the Cutoff Time on the termination date of
a Loan, transfer the Loaned Securities to Lender; PROVIDED, HOWEVER, that upon
such transfer by Borrower, Lender shall transfer the Collateral (as adjusted
pursuant to Section 8) to Borrower in accordance with Section 3.3.
6. RIGHTS OF BORROWER IN RESPECT OF THE LOANED SECURITIES. Except as set forth
in Sections 7.1 and 7.2 and as otherwise agreed by Borrower and Lender, until
Loaned Securities are required to be redelivered to Lender upon termination of a
Loan hereunder, Borrower shall have all of the incidents of ownership of the
Loaned Securities, including the right to transfer the Loaned Securities to
others. Lender hereby waives the right to vote, or to provide any consent or to
take any similar action with respect to, the Loaned Securities in the event that
the record date or deadline for such vote, consent or other action falls during
the term of the Loan.
7. DIVIDENDS, DISTRIBUTIONS, ETC.
7.1 Lender shall be entitled to receive all distributions made on or in
respect of the Loaned Securities which are not otherwise received by Lender, to
the full extent it would be so entitled if the Loaned Securities had not been
lent to Borrower, including, but not limited to: (a) cash and all other
property, (b) stock dividends, (c) securities received as a result of split ups
of the Loaned Securities
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and distributions in respect thereof, (d) interest payments. and (e) all rights
to purchase additional securities.
7.2 Any cash distributions made on or in respect of the Loaned
Securities, which Lender is entitled to receive pursuant to Section 7.1, shall
be paid by the transfer of cash to Lender by Borrower, on the date any such
distribution is paid. in an amount equal to such cash distribution, so long as
Lender is not in Default at the time of such payment. Non-cash distributions
received by Borrower shall be added to the Loaned Securities on the date of
distribution and shall be considered such for all purposes, except that if the
Loan has terminated, Borrower shall forthwith transfer the same to Lender.
7.3 Borrower shall be entitled to receive all cash distributions made on
or in respect of non-cash Collateral which are not otherwise received by
Borrower, to the full extent it would be so entitled if the Collateral had not
been transferred to Lender. Any distributions of cash made on or in respect of
such Collateral which Borrower is entitled to receive hereunder shall be paid by
the transfer of cash to Borrower by Lender, on the date any such distribution is
paid, in an amount equal to such cash distribution, so long as Borrower is not
in Default at the time of such payment.
7.4 (a) Unless otherwise agreed, if (i) Borrower is required to make a
payment (a "Borrower Payment") with respect to cash distributions on Loaned
Securities under Sections 7.1 and 7.2 ("Securities Distributions"), or (ii)
Lender is required to make a payment (a "Lender Payment") with respect to cash
distributions on Collateral under Section 7.3 ("Collateral Distributions"), and
(iii) Borrower or Lender, as the case may be ("Payor"), shall be required by law
to collect any withholding or other tax, duty, fee, levy or charge required to
be deducted or withheld from such Borrower Payment or Lender Payment ("Tax"),
then Payor shall (subject to subsections (b) and (c) below), pay such additional
amounts as may be necessary in order that the net amount of the Borrower Payment
or Lender Payment received by the Lender or Borrower, as the case may be
("Payee"), after payment of such Tax equals the net amount of the Securities
Distribution or Collateral Distribution that would have been received if such
Securities Distribution or Collateral Distribution had been paid directly to the
Payee.
(b) No additional amounts shall be payable to a Payee under subsection
(a) above to the extent that Tax would have been imposed on a Securities
Distribution or Collateral Distribution paid directly to the Payee.
(c) No additional amounts shall be payable to a Payee under subsection
(a) above to the extent that such Payee is entitled to an exemption from. or
reduction in the rate of, Tax on a Borrower Payment or Lender Payment subject to
the provision of a certificate or other documentation, but has failed timely to
provide such certificate or other documentation.
(d) Each party hereto shall be deemed to represent that, as of the
commencement of any Loan hereunder, no Tax would be imposed on any cash
distribution paid to it with respect to (i) Loaned Securities subject to a Loan
in which it is acting as Lender or (ii) Collateral for any Loan in which it is
acting as Borrower, unless such party has given notice to the contrary to the
other party hereto
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(which notice shall specify the rate at which such Tax would be imposed). Each
party agrees to notify the other of any change that occurs during the term of a
Loan in the rate of any Tax that would be imposed on any such cash distributions
payable to it.
7.5 To the extent that, under the provisions of Sections 7.1 through 7.4
(a) a transfer of cash or other property by Borrower would give rise to a Margin
Excess (as defined in Section 8.3 below) or (b) a transfer of cash or other
property by Lender would give rise to a Margin Deficit (as defined in Section
8.2 below), Borrower or Lender (as the case may be) shall not be obligated to
make such transfer of cash or other property in accordance with such Sections,
but shall in lieu of such transfer immediately credit the amounts that would
have been transferable under such Sections to the account of Lender or Borrower
(as the case may be).
8. XXXX TO MARKET.
8.1 Borrower shall daily xxxx to market any Loan hereunder and in the
event that at the close of trading on any Business Day the market value of the
Collateral for any Loan to Borrower shall be less than 100% of the market value
of all the outstanding Loaned Securities subject to such Loan. Borrower shall
transfer additional Collateral no later than the close of the next Business Day
so that the market value of such additional Collateral, when added to the market
value of the other Collateral for such Loan, shall equal 100% of the market
value of the Loaned Securities.
8.2 In addition to any rights of Lender under Section 8.1, in the event
that at the close of trading on any Business Day the aggregate market value of
all Collateral for Loans by Lender shall be less than the Margin Percentage of
the market value of all the outstanding Loaned Securities subject to such Loans
(a "Margin Deficit"), Lender may, by notice to Borrower, demand that Borrower
transfer to Lender additional Collateral so that the market value of such
additional Collateral, when added to the market value of all other Collateral
for such Loans, shall equal or exceed the agreed upon Margin Percentage of the
market value of the Loaned Securities. Unless otherwise agreed. such transfer is
to be made no later than the close of the next Business Day following the day of
Lender's notice to Borrower.
8.3 In the event that at the close of trading on any Business Day the
market value of all Collateral for Loans to Borrower shall be greater than the
Margin Percentage of the market value of all the outstanding Loaned Securities
subject to such Loans (a "Margin Excess"), Borrower may, by notice to Lender,
demand that Lender transfer to Borrower such amount of the Collateral selected
by Borrower so that the market value of the Collateral for such Loans, after
deduction of such amounts, shall thereupon not exceed the Margin Percentage of
the market value of the Loaned Securities. Unless otherwise agreed, such
transfer is to be made no later than the close of the next Business Day
following the day of Borrower's notice to Lender.
8.4 Borrower and Lender may agree, with respect to one or more Loans
hereunder, to xxxx the values to market pursuant to Sections 8.2 and 8.3 by
separately valuing the Loaned Securities lent and the Collateral given in
respect thereof on a Loan-by-Loan basis.
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8.5 Borrower and Lender may agree, with respect to any or all Loans
hereunder, that the respective rights of Lender and Borrower under Sections 8.2
and 8.3 may be exercise only where a Margin Excess or Margin Deficit exceeds a
specified dollar amount or a specified percentage of the market value of the
Loaned Securities under such Loans (which amount or percentage shall be agreed
to by Borrower and Lender prior to entering into any such Loans).
9. REPRESENTATIONS. Each party to this Agreement hereby makes the following
representations and warranties, which shall continue during the term of any Loan
hereunder:
9.1 Each party hereto represents and warrants that (a) it has the power
to execute and deliver this Agreement, to enter into the Loans contemplated
hereby and to perform its obligations hereunder; (b) it has taken all necessary
action to authorize such execution, delivery and performance; and (c) this
Agreement constitutes a legal, valid and binding obligation enforceable against
in accordance with its terms.
9.2 Each party hereto represents and warrants that the execution,
delivery and performance by it of this Agreement and each Loan hereunder will at
all times comply with all applicable laws and regulations including those of
applicable regulatory and self-regulatory organizations.
9.3 Each party hereto represents and warrants that it has not relied on
the other for any tax or accounting advice concerning this Agreement and that it
has made its own determination as to the tax and accounting treatment of any
Loan and any dividends, remuneration or other funds received hereunder.
9.4 Borrower represents and warrants that it is acting for its own
account. Lender represents and warrants that it is acting for its own account
unless it expressly specifies otherwise in writing and complies with Section
10.3(b).
9.5 Borrower represents and warrants that (a) it has, or will have at the
time of transfer of any Collateral, the right to grant a first security interest
therein subject to the terms and conditions hereof, and (b) it (or the person to
whom it relends the Loaned Securities) is borrowing or will borrow the Loaned
Securities (except for Loaned Securities that quality as "exempted securities"
under Regulation T of the Board of Governors of the Federal Reserve System) for
the purpose of making delivery of such securities in the case of short sales,
failure to receive securities required to be delivered, or as otherwise
permitted pursuant to Regulation T as in effect from time to time.
9.6 Lender represents and warrants that it has, or will have at the time
of transfer of any Loaned Securities, the right to transfer the Loaned
Securities subject to the terms and conditions hereof.
10. COVENANTS.
10.1 Each party hereto agrees and acknowledges that (a) each Loan
hereunder is a "securities contract," as such term is defined in Section 741(7)
of Title 11 of the United States Code (the
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"Bankruptcy Code"), (b) each and every transfer of funds, securities and other
property under this Agreement and each Loan hereunder is a "settlement payment"
or a "margin payment," as such terms are used in Sections 362(b)(6) and 546(e)
of the Bankruptcy Code, and (c) the rights given to Borrower and Lender
hereunder upon a Default by the other constitute the right to cause the
liquidation of a securities contract and the right to set off mutual debts and
claims in connection with a securities contract, as such terms are used in
Sections 555 and 362(b)(6) of the Bankruptcy Code. Each party hereto further
agrees and acknowledges that if a party hereto is an "insured depository
institution," as such term is defined in the Federal Deposit Insurance Act, as
amended ("FDIA"), then each Loan hereunder is a "securities contract" and
"qualified financial contract," as such terms are defined in the FDIA and any
rules, orders or policy statements thereunder.
10.2 Borrower agrees to be liable as principal with respect to its
obligations hereunder.
10.3 Lender agrees either (a) to be liable as principal with respect to
its obligations hereunder or (b) to execute and comply fully with the provisions
of Annex I (the terms and conditions of which Annex are incorporated herein and
made a part hereof).
10.4 Promptly upon (and in any event within seven (7) Business Days
after) demand by Lender, Borrower shall furnish Lender with Borrower's most
recent publicly-available financial statements and any other financial
statements mutually agreed upon by Borrower and Lender. Unless otherwise agreed,
if Borrower is subject to the requirements of Rule 17a-5(c) under the Exchange
Act, it may satisfy the requirements of this Section by furnishing Lender with
its most recent statement required to be furnished to customers pursuant to such
Rule.
10.5 Except to the extent required by applicable law or regulation or as
otherwise agreed, Borrower and Lender agree that Loans hereunder shall in no
event be "exchange contracts" for purposes of the rules of any securities
exchange and that Loans hereunder shall not be governed by the buy-in or similar
rules of any such exchange, registered national securities or other
self-regulatory organization.
11. EVENTS OF DEFAULT. All Loans hereunder may, at the option of the
non-defaulting party exercised by notice to the defaulting party (which option
shall be deemed to have been exercised, even if no notice is given, immediately
upon the occurrence of an event specified in subsection (e) below), be
terminated immediately upon the occurrence of any one or more of the following
events (individually, a "Default"):
(a) if any Loaned Securities shall not be transferred to
Lender upon termination of the Loan as required by Section
5:
(b) if any Collateral shall not be transferred to Borrower
upon termination of the Loan as required by Sections 3.3
and 5:
(c) if either party shall fail to transfer Collateral as
required by Section 8;
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(d) if either party (i) shall fail to transfer to the other
party amounts in respect of distributions required to be
transferred by Section 7, (ii) shall have received notice
of such failure from the non-defaulting party, and (iii)
shall not have cured such default by the Cutoff Time on
the next day after such notice on which a transfer of cash
may be effected in accordance with Section 16;
(e) if (i) either party shall commence as debtor any case or
proceeding under any bankruptcy, insolvency.
reorganization, liquidation. dissolution or similar law,
or seek the appointment of a receiver, conservator,
trustee, custodian or similar official for such party or
any substantial part of its property, (ii) any such case
or proceeding shall be commenced against either party, or
another shall seek such an appointment, or any application
shall be filed against either party for a protective
decree under the provisions of the Securities Investor
Protection Act of 1970, which (A) is consented to or not
timely contested by such party, (B) results in the entry
of an order for relief, such an appointment, the issuance
of such a protective decree or the entry of an order
having a similar effect, or (C) is not dismissed within 15
days, (iii) either party shall make a general assignment
for the benefit of creditors, or (iv) either party shall
admit in writing its inability to pay its debts as they
become due;
(f) if either party shall have been suspended or expelled from
membership or participation in any national securities
exchange or registered national securities association of
which it is a member or other self-regulatory organization
to whose rules it is subject or if it is suspended from
dealing in securities by any federal or state government
agency thereof.
(g) if either party shall have its license, charter, or other
authorization necessary to conduct a material portion of
its business withdrawn, suspended or revoked by any
applicable federal or state government or agency thereof;
(h) if any representation made by either party in respect of
this Agreement or any Loan or Loans hereunder shall be
incorrect or untrue in any material respect during the
term of any Loan hereunder;
(i) if either party notifies the other, orally or in writing,
of its inability to or its intention not to perform its
obligations hereunder or otherwise disaffirms, rejects or
repudiates any of its obligations hereunder; or
(j) if either party (i) shall fail to perform any material
obligation under this Agreement not specifically set forth
in clauses (a) through (i) above, including but not
limited to the payment of fees as required by Section 4,
and the payment of transfer taxes as required by Section
14, (ii) shall have received notice of such failure from
the non-defaulting party and (iii) shall not have cured
such failure
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by the Cutoff Time on the next day after such notice on
which a transfer of cash may be effected under Section 16.
12. LENDER'S REMEDIES. Upon the occurrence of a Default under Section 11
entitling Lender to terminate all Loans hereunder, Lender shall have the right
(without further notice to Borrower), in addition to any other remedies provided
herein or under applicable law, (a) to purchase a like amount of Loaned
Securities ("Replacement Securities") in the principal market for such
securities in a commercially reasonable manner, (b) to sell any Collateral in
the principal market for such Collateral in a commercially reasonable manner and
(c) to apply and set off the Collateral and any proceeds thereof (including any
amounts drawn under a letter of credit supporting any Loan) against the payment
of the purchase price for such Replacement Securities and any amounts due to
Lender under Sections 4, 7, 14 and 17. In the event Lender shall exercise such
rights, Borrower's obligation to return a like amount of the Loaned Securities
shall terminate. Lender may similarly apply the Collateral and any proceeds
thereof to any other obligation of Borrower under this Agreement, including
Borrower's obligations with respect to distributions paid to Borrower (and not
forwarded to Lender) in respect of Loaned Securities. In the event that (i) the
purchase price of Replacement Securities (plus all other amounts, if any, due to
Lender hereunder) exceeds (ii) the amount of the Collateral, Borrower shall be
liable to Lender for the amount of such excess together with interest thereon at
a rate equal to (A) in the case of purchases of Foreign Securities, LIBOR, (B)
in the case of purchases of any other securities (or other amounts, if any, due
to Lender hereunder), the Federal Funds Rate or (C) such other rate as may be
specified in Schedule B, in each case as such rate fluctuates from day to day,
from the date of such purchase until the date of payment of such excess. As
security for Borrower's obligation to pay such excess, Lender shall have, and
Borrower hereby grants, a security interest in any property of Borrower then
held by or for Lender and a right of setoff with respect to such property and
any other amount payable by Lender to Borrower. The purchase price of
Replacement Securities purchased under this Section 12 shall include, and the
proceeds of any sale of Collateral shall be determined after deduction of,
broker's fees and commissions and all other reasonable costs, fees and expenses
related to such purchase or sale (as the case may be). In the event Lender
exercises its rights under this Section 12, Lender may elect in its sole
discretion, in lieu of purchasing all or a portion of the Replacement Securities
or selling all or a portion of the Collateral, to be deemed to have made,
respectively, such purchase of Replacement Securities or sale of Collateral for
an amount equal to the price therefor on the date of such exercise obtained from
a generally recognized source or the most recent closing bid quotation from such
a source. Subject to Section 19, upon the satisfaction of all obligations
hereunder, any remaining Collateral shall be returned to Borrower.
13. BORROWER'S REMEDIES. Upon the occurrence of a Default under Section 11
entitling Borrower to terminate all Loans hereunder, Borrower shall have the
right (without further notice to Lender), in addition to any other remedies
provided herein or under applicable law, (a) to purchase a like amount of
Collateral ("Replacement Collateral") in the principal market for such
Collateral in a commercially reasonable manner, (b) to sell a like amount of the
Loaned Securities in the principal market for such securities in a commercially
reasonable manner and (c) to apply and set off the Loaned Securities and any
proceeds thereof against (i) the payment of the purchase price for such
Replacement Collateral (ii) Lender's obligation to return any cash or other
Collateral and (iii) any
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amounts due to Borrower under Sections 4, 7 and 17. In such event, Borrower may
treat the Loaned Securities as its own and Lender's obligation to return a like
amount of the Collateral shall terminate; PROVIDED, HOWEVER, that Lender shall
immediately return any letters of credit supporting any Loan upon the exercise
or deemed exercise by Borrower of its termination rights under Section 11.
Borrower may similarly apply the Loaned Securities and any proceeds thereof to
any other obligation of Lender under this Agreement, including Lender's
obligations with respect to distributions paid to Lender (and not forwarded to
Borrower) in respect of Collateral. In the event that (i) the sales price
received from such Loaned Securities is less than (ii) the purchase price of
Replacement Collateral (plus the amount of any cash or other Collateral not
replaced by Borrower and all other amounts, if any, due to Borrower hereunder),
Lender shall be liable to Borrower for the amount of any such deficiency.
together with interest on such amounts at a rate equal to (A) in the case of
Collateral consisting of Foreign Securities, LIBOR, (B) in the case of
Collateral consisting of any other securities (or other amounts due, if any, to
Borrower hereunder), the Federal Funds Rate or (C) such other rate as may be
specified in Schedule B, in each case as such rate fluctuates from day to day,
from the date of such sale until the date of payment of such deficiency. As
security for Lender's obligation to pay such deficiency, Borrower shall have,
and Lender hereby grants, a security interest in any property of Lender then
held by or for Borrower and a right of setoff with respect to such property and
any other amount payable by Borrower to Lender. The purchase price of any
Replacement Collateral purchased under this Section 13 shall include, and the
proceeds of any sale of Loaned Securities shall be determined after deduction
of, broker's fees and commissions and all other reasonable costs, fees and
expenses related to such purchase or sale (as the case may be). In the event
Borrower exercises its rights under this Section 13, Borrower may elect in its
sole discretion. in lieu of purchasing all or a portion of the Replacement
Collateral or selling all or a portion of the Loaned Securities, to be deemed to
have made, respectively, such purchase of Replacement Collateral or sale of
Loaned Securities for an amount equal to the price therefor on the date of such
exercise obtained from a generally recognized source or the most recent closing
bid quotation from such a source. Subject to Section 19, upon the satisfaction
of all Lender's obligations hereunder, any remaining Loaned Securities (or
remaining cash proceeds thereof) shall be returned to Lender. Without limiting
the foregoing, the parties hereto agree that they intend the Loans hereunder to
be loans of securities. If, however, any Loan is deemed to be a loan of money by
Borrower to Lender, then Borrower shall have, and Lender shall be deemed to have
granted, a security interest in the Loaned Securities and the proceeds thereof.
14. TRANSFER TAXES. All transfer taxes with respect to the transfer of the
Loaned Securities by Lender to Borrower and by Borrower to Lender upon
termination of the Loan shall be paid by Borrower.
15. MARKET VALUE.
15.1 Unless otherwise agreed, if the principal market for the securities
to be valued is a national securities exchange in the United States, their
market value shall be determined by their last sale price on such exchange on
the preceding Business Day or, if there was no sale on that day, by the last
sale price on the next preceding Business Day on which there was a sale on such
exchange,
- 11 -
22
all as quoted on the Consolidated Tape or, if not quoted on the Consolidated
Tape, then as quoted by such exchange.
15.2 Except as provided in Section 15.3 or 15.4 or as otherwise agreed,
if the principal market for the securities to be valued is the over-the-counter
market, their market value shall be determined as follows. If the securities are
quoted on the National Association of Securities Dealers Automated Quotations
System ("NASDAQ"), their market value shall be the closing sale price on NASDAQ
on the preceding Business Day or, if the securities are issues for which last
sale prices are not quoted on NASDAQ, the closing bid price on such day. If the
securities to be valued are not quoted on NASDAQ, their market value shall be
the highest bid quotation as quoted in any of The Wall Street Journal. the
National Quotation Bureau pink sheets, the Salomon Brothers quotation sheets,
quotations sheets of registered market makers and, if necessary, dealers'
telephone quotations on the preceding Business Day. In each case, if the
relevant quotation did not exist on such day, then the relevant quotation on the
next preceding Business Day in which there was such a quotation shall be the
market value.
15.3 Unless otherwise agreed, if the securities to be valued are
Government Securities, their market value shall be the average of the bid and
ask prices as quoted on Prophesy at 3:30 P.M. New York time on the Business Day
preceding the date on which such determination is made. If the securities are
not so quoted on such day, their market value shall be determined as of the next
preceding Business Day on which they were so quoted. If the securities to be
valued are Government Securities that are not quoted on Prophesy, their market
value shall be determined as of the close of business on the preceding Business
Day in accordance with market practice for such securities.
15.4 Unless otherwise agreed, if the securities to be valued are Foreign
Securities, their market value shall be determined as of the close of business
on the preceding Business Day in accordance with market practice in the
principal market for such securities.
15.5 Unless otherwise agreed, the market value of a letter of credit
shall be the undrawn amount thereof.
15.6 All determinations of market value under Sections 15.1, 15.2, 15.3
and 15.4 shall include, where applicable, accrued interest to the extent not
already included therein (other than any interest transferred to the other party
pursuant to Section 7), unless market practice with respect to the valuation of
such securities in connection with securities loans is to the contrary. All
determinations of market value that are required to be made at the close of
trading on any Business Day pursuant to Section 8 or otherwise hereunder shall
be made as if being determined at the commencement of trading on the next
Business Day. The determinations of market value provided for in this Section 15
shall apply for all purposes under this Agreement, except for purposes of
Sections 12 and 13.
- 12 -
23
16. TRANSFERS.
16.1 All transfers of securities hereunder shall be by (a) physical
delivery of certificates representing such securities together with duly
executed stock and bond transfer powers, as the case may be, with signatures
guaranteed by a bank or a member firm of the New York Stock Exchange, Inc., (b)
transfer on the books of a Clearing Organization, or (c) such other means as
Borrower and Lender may agree. In every transfer of securities hereunder, the
transferor shall take all steps necessary (i) to effect a "transfer" under
Section 8-313 of the New York Uniform Commercial Code or, where applicable,
under any U.S. federal regulation governing transfers of securities and (ii) to
provide the transferee with comparable rights under any applicable foreign law
or regulation.
16.2 All transfers of cash Collateral hereunder shall be by (a) wire
transfer in immediately available, freely transferable funds or (b) such other
means as Borrower and Lender may agree. All other transfers of cash hereunder
shall be made in accordance with the preceding sentence or by delivery of a
certified or official bank check representing next-day New York Clearing House
Funds.
16.3 All transfers of a letter of credit from Borrower to Lender shall be
made by physical delivery to Lender of an irrevocable letter of credit issued by
a 'bank' as defined in Section 3(a)(6)(A)-(C) of the Exchange Act. Transfer of a
letter of credit from Lender to Borrower shall be made by causing such letter of
credit to be returned or by causing the amount of such letter of credit to be
reduced to the amount required after such transfer.
16.4 A transfer of securities, cash or letters of credit may be effected
under this Section 16 on any day except (a) a day on which the transferee is
closed for business at its address set forth in Schedule A hereto or (b) a day
on which a Clearing Organization or wire transfer system is closed, if the
facilities of such Clearing Organization or wire transfer system are required to
effect such transfer.
17. CONTRACTUAL CURRENCY.
17.1 Borrower and Lender agree that: (a) any payment in respect of a
distribution under Section 7 shall be made in the currency in which the
underlying distribution of cash was made; (b) any return of cash shall be made
in the currency in which the underlying transfer of cash was made and (c) any
other payment of cash in connection with a Loan under this Agreement shall be in
the currency agreed upon by Borrower and Lender in connection with such Loan
(the currency established under clause (a), (b) or (c) hereinafter referred to
as the "Contractual Currency"). Notwithstanding the foregoing, the payee of any
such payment may, at its option, accept tender thereof in any other currency;
PROVIDED, HOWEVER, that, to the extent permitted by applicable law, the
obligation of the payor to make such payment will be discharged only to the
extent of the amount of Contractual Currency that such payee may, consistent
with normal banking procedures, purchase with such other currency (after
deduction of any premium and costs of exchange) on the banking day next
succeeding its receipt of such currency.
- 13 -
24
17.2 If for any reason the amount in the Contractual Currency received
under Section 17.1, including amounts received after conversion of any recovery
under any judgment or order expressed in a currency other than the Contractual
Currency, falls short of the amount in the Contractual Currency due in respect
of this Agreement, the party required to make the payment will (unless a Default
has occurred and such party is the non-defaulting party) as a separate and
independent obligation and to the extent permitted by applicable law,
immediately pay such additional amount in the Contractual Currency as may be
necessary to compensate for the shortfall.
17.3 If for any reason the amount in the Contractual Currency received
under Section 17.1 exceeds the amount in the Contractual Currency due in respect
of this Agreement, then the party receiving the payment will (unless a Default
has occurred and such party is the non-defaulting party) refund promptly the
amount of such excess.
18. ERISA. Lender shall, if any of the securities transferred to the Borrower
hereunder for any Loan have been or shall be obtained, directly or indirectly,
from or using the assets of any Plan, so notify Borrower in writing upon the
execution of the Agreement or upon initiation of such Loan under Section 1.1. If
Lender so notifies Borrower, then Borrower and Lender shall conduct the Loan in
accordance with the terms and conditions of Department of Labor Prohibited
Transaction Exemption 81-6 (46 Fed. Reg. 7527, Jan. 23, 1981; as amended, 52
Fed. Reg. 18754, May 19, 1987), or any successor thereto (unless Borrower and
Lender have agreed prior to entering into a Loan that such Loan will be
conducted in reliance on another exemption, or without relying on any exemption,
from the prohibited transaction provisions of Section 406 of the Employee
Retirement Income Security Act of 1974, as amended, and Section 4975 of the
Internal Revenue Code of 1986, as amended). Without limiting the foregoing and
notwithstanding any other provision of this Agreement, if the Loan will be
conducted in accordance with Prohibited Transaction Exemption 81- 6, then:
(a) Borrower represents and warrants to Lender that it is
either (i) a bank subject to federal or state supervision,
(ii) a broker-dealer registered under the Exchange Act or
(iii) exempt from registration under Section 15(a)(1) of
the Exchange Act as a dealer in Government Securities.
(b) Borrower represents and warrants that, during the term of
any Loan hereunder, neither Borrower nor any affiliate of
Borrower has any discretionary authority or control with
respect to the investment of the assets of the Plan
involved in the Loan or renders investment advice (within
the meaning of 29 C.F.R. Section 2510.3-21(c)) with respect
to the assets of the Plan involved in the Loan. Lender
agrees that, prior to or at the commencement of any Loan
hereunder, it will communicate to Borrower information
regarding the Plan sufficient to identify to Borrower any
person or persons that have discretionary authority or
control with respect to the investment of the assets of the
Plan involved in the Loan or that render investment advice
(as defined in the preceding sentence) with respect to the
assets of the Plan involved in the Loan. In the event
Lender fails to communicate and keep current during the
term of any Loan such information.
- 14 -
25
Lender rather than Borrower shall be deemed to have made
the representation and warranty in the first sentence of
this clause (b).
(c) Borrower and Lender agree that:
(i) the term "Collateral" shall mean cash, securities
issued or guaranteed by the United States government
or its agencies or instrumentalities, or irrevocable
bank letters of credit issued by a person other than
Borrower or an affiliate thereof:
(ii) prior to the making of any Loans hereunder, Borrower
shall provide Lender with (A) the most recent
available audited statement of Borrower's financial
condition and (B) the most recent available
unaudited statement of Borrower's financial
condition (if more recent than the most recent
audited statement), and each Loan made hereunder
shall be deemed a representation by Borrower that
there has been no material adverse change in
Borrower's financial condition subsequent to the
date of the latest financial statements or
information furnished in accordance herewith;
(iii) the Loan may be terminated by Lender at any time.
whereupon Borrower shall deliver the Loaned
Securities to Lender within the lesser of (A) the
customary delivery period for such securities: (B)
five Business Days and (c) the time negotiated for
such delivery between Borrower and Lender: PROVIDED,
HOWEVER, that Borrower and Lender may agree to a
longer period only if permitted by Prohibited
Transaction Exemption 81-6; and
(iv) the Collateral transferred shall be security only for
obligations of Borrower to the Plan with respect to
Loans, and shall not be security for any obligation
of Borrower to any agent or affiliate of the Plan.
19. SINGLE AGREEMENT. Borrower and Lender acknowledge that, and have entered
into this Agreement in reliance on the fact that, all Loans hereunder constitute
a single business and contractual relationship and have been entered into in
consideration of each other. Accordingly, Borrower and Lender hereby agree that
payments, deliveries and other transfers made by either of them in respect of
any Loan shall be deemed to have been made in consideration of payments,
deliveries and other transfers in respect of any other Loan hereunder, and the
obligations to make any such payments, deliveries and other transfers may be
applied against each other and netted. In addition, Borrower and Lender
acknowledge that, and have entered into this Agreement in reliance on the fact
that, all Loans hereunder have been entered into in consideration of each other.
Accordingly, Borrower and Lender hereby agree that (a) each shall perform all of
its obligations in respect of each Loan hereunder, and that a default in the
performance of any such obligation by Borrower or by Lender (the "Defaulting
Party") in any Loan hereunder shall constitute a default by the Defaulting Party
under all such Loans hereunder, and (b) the non-defaulting party shall be
- 15 -
26
entitled to set off claims and apply property held by it in respect of any Loan
hereunder against obligations owing to it in respect of any other Loan with the
Defaulting Party.
20. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAW PRINCIPLES THEREOF.
21. WAIVER. The failure of a party to this Agreement to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement. All waivers in
respect of a Default must be in writing.
22. REMEDIES. All remedies hereunder and all obligations with respect to any
Loan shall survive the termination of the relevant Loan, return of Loaned
Securities or Collateral and termination of this Agreement.
23. NOTICES AND OTHER COMMUNICATIONS. Unless another address is specified in
writing by the respective party to whom any notice or other communication is to
be given hereunder, all such notices or communications shall be in writing or
confirmed in writing and delivered at the respective addresses set forth in
Schedule A attached hereto. All notices shall be effective upon actual receipt,
PROVIDED, HOWEVER, that if any notice shall be received by a party on a day on
which such party is not open for business at its office located at the address
set forth in Schedule A, such notice shall be deemed to have been received by
such party at the opening of business on the next day on which such party is
open for business at such address.
24. SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL.
24.1 EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH COURT, SOLELY
FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO ENFORCE ITS
OBLIGATIONS HEREUNDER OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY LOAN
HEREUNDER AND (B) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING
IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS PLACE OF
RESIDENCE OR DOMICILE.
24.2 EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY
HAVE TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
- 16 -
27
25. MISCELLANEOUS. This Agreement supersedes any other agreement between the
parties hereto concerning loans of securities between Borrower and Lender. This
Agreement shall not be assigned by either party without the prior written
consent of the other party and any attempted assignment without such consent
shall be null and void. Subject to the foregoing, this Agreement shall be
binding upon and shall ensure to the benefit of Borrower and Lender and their
respective heirs, representatives, successors and assigns. This Agreement may be
terminated by either party upon written notice to the other, subject only to
fulfillment of any obligations then outstanding. This Agreement shall not be
modified, except by an instrument in writing signed by the party against whom
enforcement is sought. The parties hereto acknowledge and agree that. in
connection with this Agreement and each Loan hereunder, time is of the essence.
Each provision and agreement herein shall be treated as separate and independent
from any other provision herein and shall be enforceable notwithstanding the
unenforceability of any such other provision or agreement.
26. DEFINITIONS. For the purposes hereof:
26.1 "Broker-Dealer" shall mean any person that is a broker (including a
municipal securities broker), dealer, municipal securities dealer, government
securities broker or government securities dealer as defined in the Exchange
Act, regardless of whether the activities of such person are conducted in the
United States or otherwise require such person to register with the Securities
and Exchange Commission or other regulatory body.
26.2 "Business Day" shall mean, with respect to any Loan hereunder, a day
on which regular trading occurs in the principal market for the Loaned
Securities subject to such Loan, PROVIDED, HOWEVER, that for purposes of Section
15, such term shall mean a day on which regular trading occurs in the principal
market for the securities whose value is being determined. Notwithstanding the
foregoing, (i) for purposes of Section 8, "Business Day" shall mean any day on
which regular trading occurs in the principal market for any Loaned Securities
or for any securities Collateral under any outstanding Loan hereunder and "next
Business Day" shall mean the next day on which a transfer of Collateral may be
effected in accordance with Section 16; and (ii) in no event shall a Saturday or
Sunday be considered a Business Day.
26.3 "Clearing Organization" shall mean The Depository Trust Company, or,
if agreed to by Borrower and Lender, such other clearing agency at which
Borrower (or Borrower's agent) and Lender (or Lender's agent) maintain accounts,
or a book-entry system maintained by a Federal Reserve Bank.
26.4 "Collateral" shall mean, whether now owned or hereafter acquired and
to the extent permitted by applicable law, (a) any property which Borrower and
Lender agree shall be acceptable collateral prior to the Loan and which is
transferred to Lender pursuant to Section 3 or 8 (including as collateral, for
definitional purposes, any letters of credit mutually acceptable to Lender and
Borrower), (b) any property substituted therefor pursuant to Section 3.5, (c)
all accounts in which such property is deposited and all securities and the like
in which any cash collateral is invested or reinvested, and (d) any proceeds of
any of the foregoing. For purposes of return of Collateral by Lender or purchase
or sale of securities pursuant to Section 12 or 13, such term shall include
- 17 -
28
securities of the same issuer, class and quantity as the Collateral initially
transferred by Borrower to Lender.
26.5 "Customer" shall mean any person that is a customer of Borrower
under Rule 15c3-3 under the Exchange Act or any comparable regulation of the
Secretary of the Treasury under Section 15C of the Exchange Act (to the extent
that Borrower is subject to such Rule or comparable regulation).
26.6 "Cutoff Time" shall mean a time on a Business Day by which a
transfer of cash, securities or other property must be made by Borrower or
Lender to the other, as shall be agreed by Borrower and Lender in Schedule B or
otherwise orally or in writing or, in the absence of any such agreement, as
shall be determined in accordance with market practice.
26.7 "Default" shall have the meaning assigned in Section 11.
26.8 "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.
26.9 "Federal Funds Rate" shall mean the rate of interest (expressed as
an annual rate), as published in Federal Reserve Statistical Release H.15(519)
or any publication substituted therefor, charged for federal funds (dollars in
immediately available funds borrowed by banks on an overnight unsecured basis)
on that day or, if that day is not a banking day in New York City, on the next
preceding banking day.
26.10 "Foreign Securities" shall mean, unless otherwise agreed,
securities that are principally cleared and settled outside the United States.
26.11 "Government Securities" shall mean government securities as defined
in Section 3(a)(42)(A)-(C) of the Exchange Act.
26.12 "LIBOR" shall mean for any date, the offered rate for deposits in
U.S. dollars for a period of three months which appears on the Reuters Screen
LIBO page as of 11:00 A.M., London time, on such date (or, if at least two such
rates appear, the arithmetic mean of such rates).
26.13 "Loan" shall mean a loan of securities hereunder.
26.14 "Loaned Security" shall mean any security which is a security as
defined in the Exchange Act, transferred in a Loan hereunder until such security
(or an identical security) is transferred back to Lender hereunder, except that,
if any new or different security shall be exchanged for any Loaned Security by
recapitalization, merger, consolidation or other corporate action, such new or
different security shall, effective upon such exchange, be deemed to become a
Loaned Security in substitution for the former Loaned Security for which such
exchange is made. For purposes of return of Loaned Securities by Borrower or
purchase or sale of securities pursuant to Section 12 or 13, such term shall
include securities of the same issuer, class and quantity as the Loaned
Securities, as adjusted pursuant to the preceding sentence.
- 18 -
29
26.15 "Plan" shall mean (a) any "employee benefit plan" as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974 which is
subject to Part 4 of Subtitle B of Title I of such Act: (b) any "plan" as
defined in Section 4975(e)(1) of the Internal Revenue Code of 1986: or (c) any
entity the assets of which are deemed to be assets of any such "employee benefit
plan" or "plan" by reason of the Department of Labor's plan asset regulation, 29
C.F.R. Section 2510.3-101.
Bank One Trust Company, NA
By:
-----------------------------------------
Title:
-----------------------------------------
Date:
-----------------------------------------
By:
-----------------------------------------
Title:
-----------------------------------------
Date:
-----------------------------------------
- 19 -
30
ANNEX I
LENDER ACTING AS AGENT
This Annex sets forth the terms and conditions governing all
transactions in which a party lending securities ("Agent") in a Loan is acting
as agent for one or more third parties (each a "Principal"). Unless otherwise
defined. capitalized terms used in this Annex shall have the meanings assigned
in the Securities Loan Agreement of which it forms a part (such agreement,
together with this Annex and any other schedules or exhibits, referred to as the
"Agreement") and. unless otherwise specified, all section references herein are
intended to refer to sections of such Securities Loan Agreement.
1. ADDITIONAL REPRESENTATIONS AND WARRANTIES. In addition to the
representations and warranties set forth in Section 9 of the Agreement. Agent
hereby makes the following representations and warranties, which shall continue
during the term of any Loan: Principal has duly authorized Agent to execute and
deliver the Agreement on its behalf, has the power to so authorize Agent and to
enter into the Loans contemplated by the Agreement and to perform the
obligations of Lender under such Loans, and has taken all necessary action to
authorize such execution and delivery by Agent and such performance by it.
2. IDENTIFICATION OF PRINCIPALS. Agent agrees (a) to provide Borrower
prior to any Loan under the Agreement with a written list of Principals for
which it intends to act as Agent (which list may be amended in writing from time
to time with the consent of Borrower), and (b) to provide Borrower, before the
close of business on the next Business Day after orally agreeing to enter into a
Loan, with notice of the specific Principal or Principals for whom it is acting
in connection with such Loan. If (i) Agent fails to identify such Principal or
Principals prior to the close of business on such next Business Day or (ii)
Borrower shall determine in its sole discretion that any Principal or Principals
identified by Agent are not acceptable to it, Borrower may reject and rescind
any Loan with such Principal or Principals, return to Agent any Loaned
Securities previously transferred to Borrower and refuse any further performance
under such Loan, and Agent shall immediately return to Borrower any Collateral
previously transferred to Agent in connection with such Loan; PROVIDED, HOWEVER,
that (A) Borrower shall promptly (and in any event within one Business Day)
notify Agent of its determination to reject and rescind such Loan and (B) to the
extent that any performance was rendered by any party under any Loan rejected by
Borrower, such party shall remain entitled to any fees or other amounts that
would have been payable to it with respect to such performance if such Loan had
not been rejected. Borrower acknowledges that Agent shall not have any
obligation to provide it with confidential information regarding the financial
status of its Principals; Agent agrees, however, that it will assist Borrower in
obtaining from Agent's Principals such information regarding the financial
status of such Principals as Borrower may reasonably request.
3. LIMITATION OF AGENT'S LIABILITY. The parties expressly acknowledge
that if the representations and warranties of Agent under the Agreement,
including this Annex. are true and correct in all material respects during the
term of any Loan and Agent otherwise complies with the provisions of this Annex,
then (a) Agent's obligations under the Agreement shall not include a
- 20 -
31
guarantee of performance by its Principal or Principals and (b) Borrower's
remedies shall not include a right of setoff against obligations, if any, of
Agent arising in other transactions in which Agent is acting as principal.
4. MULTIPLE PRINCIPALS.
(a) In the event that Agent proposes to act for more than one Principal
hereunder, Borrower and Agent shall elect whether (i) to treat Loans under this
Agreement as transactions entered into on behalf of separate Principals or (ii)
to aggregate such Loans as if they were transactions by a single Principal.
Failure to make such an election in writing shall be deemed an election to treat
Loans under this Agreement as transactions on behalf of separate Principals.
(b) In the event that Borrower and Agent elect (or are deemed to elect)
to treat Loans under the Agreement as transactions on behalf of separate
Principals, the parties agree that (i) Agent will provide Borrower, together
with the notice described in Section 2(b) of this Annex, notice specifying the
portion of each Loan allocable to the account of each of the Principals for
which it is acting (to the extent that any such Loan is allocable to the account
of more than one Principal); (ii) the portion of any individual Loan allocable
to each Principal shall be deemed a separate Loan under the Agreement; (iii) the
xxxx to market obligations of Borrower and Lender under Section 8 of the
Agreement shall be determined on a Loan-by-Loan basis (unless the parties agree
to determine such obligations on a Principal-by-Principal basis), and (iv)
Borrower's and Lender's remedies under the Agreement upon the occurrence of a
Default shall be determined as if Agent had entered into a separate Agreement
with Borrower on behalf of each of its Principals.
(c) In the event that Borrower and Agent elect to treat Loans under
this Agreement as if they were transactions by a single Principal, the parties
agree that (i) Agent's notice under Section 2(b) of this Annex need only
identify the names of its Principals but not the portion of each Loan allocable
to each Principal's account: (ii) the xxxx to market obligations of Borrower and
Lender under Section 8 shall, subject to any greater requirement imposed by
applicable law, be determined on an aggregate basis for all Loans entered into
by Agent on behalf of any Principal; and (iii) Borrower's and Lender's remedies
upon the occurrence of a Default shall be determined as if all Principals were a
single Lender.
(d) Notwithstanding any other provision of the Agreement (including
without limitation this Annex), the parties agree that any transactions by Agent
on behalf of a Plan shall be treated as transactions on behalf of separate
Principals in accordance with Section 4(b) of this Annex (and all xxxx to market
obligations of the parties shall be determined on a Loan-by-Loan basis).
5. INTERPRETATION OF TERMS. All references to "Lender" in the Agreement
shall, subject to the provisions of this Annex (including among other provisions
the limitations on Agent's liability in Section 3 of this Annex), be construed
to reflect that (i) each Principal shall have, in connection with any Loan or
Loans entered into by Agent on its behalf, the rights, responsibilities,
privileges and obligations of a "Lender" directly entering into such Loan or
Loans with Borrower under the Agreement, and (ii) Agent's Principal or
Principals have designated Agent as their sole agent for
- 21 -
32
performance of Lender's obligations to Borrower and for receipt of performance
by Borrower of its obligations to Lender in connection with any Loan or Loans
under the Agreement (including, among other things, as agent for each Principal
in connection with transfers of securities, cash or other property and as agent
for giving and receiving all notices under the Agreement). Both Agent and its
Principal or Principals shall be deemed "parties" to the Agreement and all
references to a "party" or "either party" in the Agreement shall be deemed
revised and accordingly (and any Default by Agent under paragraph (e) or any
other applicable provision of Section 11 shall be deemed a Default by Lender).
Bank One Trust Company, NA
By:
--------------------------
Title:
--------------------------
Date:
--------------------------
By:
--------------------------
Title:
--------------------------
Date:
--------------------------
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33
SCHEDULE A
NAMES AND ADDRESSES FOR COMMUNICATIONS
IF TO LENDER: Bank One Trust Company, N. A.
Attn: Securities Lending
0000 Xxxxxxx Xxxxxxx
Xxxxxxxx, XX 00000
or, if by postal service,
X.X. Xxx 000000
Xxxxxxxx, XX 00000-0000
IF TO BORROWER:
- 23 -
34
AMENDMENT TO MASTER
SECURITIES LOAN AGREEMENT
This Amendment to the Master Securities Loan Agreement (the "Agreement") is
entered into by and between BANK ONE TRUST COMPANY, N. A. in its capacity as
agent for its customers and not individually (the "Lender") and
_______________________ (the "Borrower") who hereby agree to amend the Agreement
as follows:
1. Section 3.1 of the Agreement is hereby deleted in its entirety and the
following is substituted in its place:
3.1 Unless otherwise agreed, Borrower shall, prior to the transfer of
the Loaned Securities to Borrower, but in no case later than the close
of business on the day that such transfer is to occur, transfer to
Lender Collateral with a market value at least equal to a percentage of
the market value of the Loaned Securities agreed to by Borrower and
Lender (which shall be not less than 105% of the market value of the
Loaned Securities if the Loaned Securities are Foreign Securities and
102% of the market value of the Loaned Securities if the Loaned
Securities are securities other than Foreign Securities) (the "Margin
Percentage").
2. Section 3.6 is hereby deleted in its entirety and the following new section
3.6 is substituted in its place:
3.6 Except as otherwise provided in an agreement entered into by
Borrower and Lender pursuant to Section 1.1 or Section 3.5(b), Lender
acknowledges that, in connection with Loans of Government Securities
and as otherwise permitted by applicable law, some securities provided
by Borrower as Collateral under this Agreement may not be guaranteed by
the United States.
3. Section 5 is hereby deleted in its entirety and the following new
Section 5 is substituted in its place:
5. TERMINATION OF THE LOAN. Unless otherwise agreed, (a) Borrower may
terminate a loan on any Business Day by giving notice to Lender prior to 10:00
a.m. in the case of government securities and prior to 11:30 a.m. in the case of
all other securities on such Business Day and transferring the Loaned Securities
to Lender before the Cutoff Time on such Business Day, and (b) Lender may
terminate a loan on a termination date established by a notice given by Lender
Borrower prior to the close of business on a Business Day. The termination
date established by a termination notice given by Lender to Borrower shall be a
date no earlier than the standard settlement date for trades of the Loaned
Securities entered into on the date of such notice, which date shall, unless
Borrower and Lender agree to the contrary, be (i) in the case of government
securities, the next Business Day following such notice, (ii) in the case of
Foreign Securities, the fifth Business Day
- 1 -
35
following such notice, and (iii) in the case of all other securities, the third
Business Day following such notice. Unless otherwise agreed, Borrower shall, on
or before the Cutoff Time on the termination date of a Loan, transfer the Loaned
Securities to Lender, provided, however, that after such transfer by Borrower,
Lender shall transfer the Collateral (as adjusted pursuant to Section 8) to
Borrower in accordance with Section 3.3
4. Section 8.1 is hereby deleted in its entirety and substituting the following
is substituted in its place:
8.1 Borrower shall daily xxxx to market any Loan hereunder and in the
event that at the close of trading on any Business Day the market value
of the Collateral for any Loan to Borrower shall be less than: (i) 102%
of the market value of all the outstanding Loaned Securities which are
Foreign Securities subject to such Loan, and (ii) 100% of the market
value of all the outstanding Loaned Securities other than Foreign
Securities subject to such Loan, Borrower shall transfer additional
Collateral no later than the close of the next Business Day so that the
market value of such additional Collateral, when added to the market
value of the other Collateral for such Loan, shall equal: (i) 105% of
the market value of the Loaned Securities if the Loaned Securities are
Foreign Securities, and (ii) 102% of the market value of the Loaned
Securities if the Loaned Securities are not Foreign Securities.
5. Section 15.3 is hereby amended by deleting the references to "Prophesy" and
replacing them with "Bloomberg."
6. Section 24.1 is hereby amended by deleting the reference to "New York" and
replacing it with "Ohio" and by deleting the reference to "New York City" and
replacing it with "Columbus, Ohio."
7. The second sentence of Section 25 is hereby deleted it is entirety and the
following new sentence is substituted in its place:
This Agreement shall not be assigned by either party without the prior
written consent of the other party and any attempted assignment without such
consent shall be null and void except that Lender may assign this Agreement to
another affiliate of BANC ONE CORPORATION in its capacity as agent for its
customers and not individually without the consent of the Borrower.
8. Section 26.2 shall be deleted in its entirety and the following shall be
substituted in its place:
26.2 "Business Day" shall mean, with respect to any Loan hereunder, a
day on which regular trading occurs in the principal market for the
Loaned Securities subject to such Loan, PROVIDED, HOWEVER that for
purpose of Section 15, such term shall mean a day on which regular
trading occurs in the principal market for the securities whose value
is being determined. Notwithstanding the foregoing, (i) if the
securities are Foreign Securities, "Business Day" shall in no event
include a day on which the Lender or its agent are not open for
business; (ii) in no event shall a Saturday or Sunday be considered a
Business Day; and
- 2 -
36
(iii) subject to sections (i) and (ii) above, for purposes of Section
8, "Business Day" shall mean any day on which regular trading occurs in
the principal market for any Loaned Securities or for any securities
Collateral under any outstanding Loan hereunder and subject to sections
(i) and (ii) above, "next Business Day" shall mean the next day on
which a transfer of Collateral may be effected in accordance with
Section 16.
9. Section 26.6 is hereby deleted in entirety and the following new Section 26.6
is substituted in its place:
"Cutoff Time" shall mean a time on a Business Day by which transfer of
cash, securities or other property must be made by Borrower or Lender to the
other, which for loans of government securities, shall mean the official Fed
wire dealer close on the termination date and which for loans of all other
securities, shall mean the close of the appropriate depository on the
termination date or such other times as shall be agreed upon by Borrower and
Lender orally or in writing.
10. The Agreement as amended by this Amendment constitutes the entire agreement
between the parties hereto with respect to the transactions contemplated hereby
and supersedes all prior discussions, understandings, agreements and
negotiations between the parties hereto with respect to such transactions. The
headings in this Amendment are for convenience only and shall not be used in
construing this Amendment.
IN WITNESS WHEREOF, this Amendment to the Agreement is executed by Bank One
Trust Company, N. A. in its capacity as agent for its Customers and not
individually and _________________________________________________.
BANK ONE TRUST COMPANY, N. A.
AS AGENT FOR ITS CUSTOMERS AND
NOT INDIVIDUALLY ---------------------------------
BY: BY:
----------------------------- -----------------------------
- 3 -
37
SECURITIES LENDING AGREEMENT
EXHIBIT C
APPROVED BORROWERS
ABN/AMRO Chicago Corporation
Alpine Associates
BT Securities Corporation/Bankers Trust Company
Banc One Capital Markets
Barclays Capital Inc./Barclays Bank PLC
Bear Xxxxxxx & Co., Inc./Bear Xxxxxxx Securities Corporation
CIBC Xxxxxxxxxxx Corp.
Xxxxx Securities, Inc.
Credit Suisse First Boston Corporation
Xxxx Xxxxxx Xxxxxxxx, Inc.
Deutsche Xxxxxx Xxxxxxxx
Xxxxxxxxx, Xxxxxx & Xxxxxxxx Securities Corp.
Dresdner Securities (USA) Inc.
E. D. & F. Man International
First Options of Chicago
Fuji Securities Inc.
Xxxxxxx, Xxxxx & Co.
Greenwich Capital Markets, Inc.
Gruntal & Co.
HSBC Securities, Inc.
LIT Clearing Services
Xxxxxx X. Xxxxxxx & Co. Inc.
Xxxxxx Brothers Inc.
Lipco Partners, L. P.
Maple Partners U. S.A., Inc. (formerly First Marathon America Inc.)
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc./Xxxxxxx Xxxxx Government
Securities Inc.
X. X. Xxxxxx Securities Inc.
Xxxxxx Xxxxxxx & Co./MS Securities Services
NationsBanc Xxxxxxxxxx Securities, Inc.
Xxxxxxx Xxxxx Securities Inc.
Nomura Securities International, Inc.
PaineWebber, Inc.
Paloma Securities, L. P.
Paribas Corporation
Pax Clearing Corporation
Prudential Securities, Inc.
Xxxxxxx Xxxxx & Associates
SBC Warburg Dillon Read, Inc.
Salomon Brothers, Inc.
Sanwa Securities (USA) Co. L. P.
- 4 -
38
Xxxxxxxx & Co.
Scotia Capital Markets (USA) Inc.
Xxxxx Xxxxxx Inc.
Societe Generale Securities Corporation
Spear, Leeds & Xxxxxxx
Tokyo-Mitsubishi Securities (USA), Inc.
U. S. Clearing Corp.
UBS Securities Inc.
Wheat First Securities
Zions First National Bank
- 5 -
39
SECURITIES LENDING AGREEMENT
EXHIBIT D
GOVERNMENT BOND FUND
When securities are loaned pursuant to the Securities Lending Agreement dated
June 15, 1998, between THE ONE GROUP INVESTMENT TRUST (the "Lender"), Banc One
Investment Advisors Corporation (the "ADVISOR") AND BANK ONE TRUST COMPANY, N.
A. (THE "SUBCUSTODIAN") the Lender instructs as follows:
1. TYPES OF COLLATERAL. The Adviser may instruct the Subcustodian to accept the
types of collateral checked below when securities are loaned subject to the
terms of the above described Securities Lending Agreement.
|X| Cash
|X| Securities issued or guaranteed by the United States
Government or its agencies
|X| A letter or letters of credit
2. INVESTMENT OF CASH COLLATERAL. In making the investments of cash
received as collateral discussed in the Securities Lending Agreement,
including income received from such collateral, the Adviser is
authorized and directed to use any of the types of investments (the
"Permitted Investments") checked below:
A. Short term obligations of corporations, including but not
limited to commercial paper, promissory notes, master variable
demand notes, and private placements, whose:
[ ] Commercial paper is rated in the highest category of at
least two nationally recognized securities rating
organizations at the time of purchase, or if the
corporation has not received a rating from any
nationally recognized securities organization, the
security must meet such standards as may be necessary
to be assigned a "highest category" rating as
determined by the Adviser.
[ ] Commercial paper is rated not less than the second
highest category of all nationally recognized
securities rating organizations at the time of
purchase.
- 6 -
40
B. Loan participation certificates of corporations whose:
[ ] Commercial paper is rated in the highest category of at
least two nationally recognized securities rating
organizations at the time of purchase, or if the
corporation has not received a rating from any
nationally recognized securities organization, the
security must meet such standards as may be necessary
to be assigned a "highest category" rating as
determined by the Adviser.
[ ] Commercial paper is rated not less than the second
highest category of all nationally rated securities
rating organizations at the time of purchase.
C. [ ] Short term obligations of banks, including, but not
limited to, certificates of deposit, bankers'
acceptances, and time deposits, including without
limitations any such instrument issued by the
Subcustodian or one of its affiliates.
D. [X] Short term obligations of the United States Government
or its agencies.
E. [X] Repurchase agreements collateralized by securities
issued or guaranteed by the United States Government or
its agencies.
F. [X] Money market mutual funds or other securities of
any open-end or closed-end investment company or
investment trust registered under the Investment
Company Act of 1940, as amended, which invest solely in
securities issued or guaranteed by the United States
Government or its agencies and repurchase agreements
collateralized by such securities.
G. [ ] Collective short-term investment funds organized
and operated by the Adviser or its affiliates for
Employee Benefit Trusts only.
3. MATURITY OF COLLATERAL INVESTMENTS. The Adviser may instruct the
Subcustodian to make Permitted Investments as authorized in Section 2
that may be of longer or shorter maturity than the term of any
transaction to which they relate, it being understood that "short term"
Permitted Investments shall include Permitted Investments with such
maturities as are described in this section. The maturity of each
Permitted Investment will be based upon Lender instructions, if any, the
Adviser's estimate of the volume of securities that is likely to be
loaned on a continuous basis, the rates available on alternate
investments, interest rate trends, and overall market conditions. The
average weighted maturity of Permitted Investments shall not exceed 90
days, and in no case shall the final maturity of a Permitted Investment
exceed 12 months in the case of fixed rate investments and 36 months in
the case of floating rate investments. The difference between the
average weighted maturity of loan transactions and the average weighted
maturity of Permitted Investments shall not exceed 90 days. For the
purpose of calculating the average weighted maturity of loan
transactions, maturity shall, in the case of "term" loans, mean the
number of days remaining until the termination of the loan
- 7 -
41
transaction, or in the case of "open" loans, one day. For the purpose
of calculating the average weighted maturity of Permitted Investments,
maturity shall mean: (1) one day in the case of money market mutual
funds, master notes, and other instruments that may be liquidated
without notice, (2) the number of days remaining to the next reset date
in the case of floating rate securities, (3) the number of days
remaining until the next put date in the case of securities subject to
unconditional and irrevocable puts of the issue to the obligor, or (4)
the actual number of days remaining until the maturity date for all
other Permitted Investments.
4. When the Lender has authorized the Adviser to direct the Subcustodian
to accept a letter of credit as collateral for securities loans, such
standby letter of credit shall be clean, unconditional, and
irrevocable. The Adviser shall accept letters from banks whose:
[X] Certificates of deposit or commercial paper is rated in
the highest category of at least two nationally
recognized securities rating organizations.
[ ] Certificates of deposit or commercial paper is rated
not less than the second highest category of all
nationally recognized securities rating organizations.
THE ONE GROUP INVESTMENT TRUST
("Lender")
By: /s/ XXXXX X. XXXXX, XX.
--------------------------------------------
Xxxxx X. Xxxxx, Xx., President
BANC ONE INVESTMENT ADVISORS CORPORATION
("Adviser")
By: /s/ XXXX X. XXXXXX
--------------------------------------------
Xxxx X. Xxxxxx, Senior Managing Director
BANK ONE TRUST COMPANY, N. A.
("Subcustodian")
By: /s/ XXXXXX X. XXXXXX
--------------------------------------------
Xxxxxx X. Xxxxxx, Officer
- 8 -
42
SECURITIES LENDING AGREEMENT
EXHIBIT D
ASSET ALLOCATION FUND
EQUITY INDEX FUND
GROWTH OPPORTUNITIES FUND
LARGE COMPANY GROWTH FUND
When securities are loaned pursuant to the Securities Lending Agreement dated
June 15, 1998, between THE ONE GROUP INVESTMENT TRUST (THE "LENDER"), BANC ONE
INVESTMENT ADVISORS CORPORATION (THE "ADVISER") AND BANK ONE TRUST COMPANY, N.
A. (THE "SUBCUSTODIAN"), the Lender instructs as follows:
1. TYPES OF COLLATERAL. The Adviser may instruct the Subcustodian to
accept the types of collateral checked below when securities are loaned
subject to the terms of the above described Securities Lending
Agreement.
[X] Cash
[X] Securities issued or guaranteed by the United States
Government or its agencies
[X] A letter or letters of credit
2. INVESTMENT OF CASH COLLATERAL. In making the investments of cash
received as collateral discussed in the Securities Lending Agreement,
including income received from such collateral, the Adviser is
authorized and directed to use any of the types of investments (the
"Permitted Investments") checked below:
A. Short term obligations of corporations, including but not
limited to commercial paper, promissory notes, master variable
demand notes, and private placements, whose:
[X] Commercial paper is rated in the highest category of
at least two nationally recognized securities rating
organizations at the time of purchase, or if the
corporation has not received a rating from any
nationally recognized securities organization, the
security must meet such standards as may be necessary
to be assigned a "highest category" rating as
determined by the Adviser.
[ ] Commercial paper is rated not less than the second
highest category of all nationally recognized
securities rating organizations at the time of
purchase.
- 9 -
43
B. Loan participation certificates of corporations whose:
[X] Commercial paper is rated in the highest category of
at least two nationally recognized securities rating
organizations at the time of purchase, or if the
corporation has not received a rating from any
nationally recognized securities organization, the
security must meet such standards as may be necessary
to be assigned a "highest category" rating as
determined by the Adviser.
[ ] Commercial paper is rated not less than the second
highest category of all nationally rated securities
rating organizations at the time of purchase.
C. [X] Short term obligations of banks, including, but
not limited to, certificates of deposit, bankers'
acceptances, and time deposits, including without
limitations any such instrument issued by the
Subcustodian or one of its affiliates.
D. [X] Short term obligations of the United States
Government or its agencies.
E. [X] Repurchase agreements.
F. [ ] Money market mutual funds or other securities of
any open-end or closed-end investment company or
investment trust registered under the Investment
Company Act of 1940, as amended.
G. [ ] Collective short-term investment funds organized
and operated by the Adviser or its affiliates for
Employee Benefit Trusts only.
3. MATURITY OF COLLATERAL INVESTMENTS. The Adviser may instruct the
Subcustodian to make Permitted Investments as authorized in Section 2
that may be of longer or shorter maturity than the term of any
transaction to which they relate, it being understood that "short term"
Permitted Investments shall include Permitted Investments with such
maturities as are described in this section. The maturity of each
Permitted Investment will be based upon Lender instructions, if any, the
Adviser's estimate of the volume of securities that is likely to be
loaned on a continuous basis, the rates available on alternate
investments, interest rate trends, and overall market conditions. The
average weighted maturity of Permitted Investments shall not exceed 90
days, and in no case shall the final maturity of a Permitted Investment
exceed 12 months in the case of fixed rate investments and 36 months in
the case of floating rate investments. The difference between the
average weighted maturity of loan transactions and the average weighted
maturity of Permitted Investments shall not exceed 90 days. For the
purpose of calculating the average weighted maturity of loan
transactions, maturity shall, in the case of "term" loans, mean the
number of days remaining until the termination of the loan transaction,
or in the case of "open" loans, one day. For the purpose of calculating
the average weighted maturity of Permitted Investments, maturity shall
mean: (1) one day in the case of money market mutual funds, master
notes, and other instruments that may be liquidated without notice, (2)
the number of days remaining to the next reset date in the case of
floating rate securities, (3) the number of days remaining until the
next put date in the case of securities subject to unconditional and
irrevocable puts of the issue to the obligor, or (4) the actual number
of days remaining until the maturity date for all other Permitted
Investments.
4. When the Lender has authorized the Adviser to direct the Subcustodian
to accept a letter of credit as collateral for securities loans, such
standby letter of credit shall be clean, unconditional, and
irrevocable. The Adviser shall accept letters from banks whose:
- 10 -
44
[X] Certificates of deposit or commercial paper is rated
in the highest category of at least two nationally
recognized securities rating organizations.
[ ] Certificates of deposit or commercial paper is rated
not less than the second highest category of all
nationally recognized securities rating
organizations.
THE ONE GROUP INVESTMENT TRUST
("Lender")
By: /s/ XXXXX X. XXXXX, XX.
---------------------------------------------
Xxxxx X. Xxxxx, Xx., President
BANC ONE INVESTMENT ADVISORS CORPORATION
("Adviser")
By: /s/ XXXX X. XXXXXX
---------------------------------------------
Xxxx X. Xxxxxx, Senior Managing Director
BANK ONE TRUST COMPANY, N. A. ("Subcustodian")
By: /s/ XXXXXX X. XXXXXX
---------------------------------------------
Xxxxxx X. Xxxxxx, Officer
- 11 -
45
SECURITIES LENDING AGREEMENT
EXHIBIT E
SCHEDULE OF FEES
U. S. GOVERNMENT AND AGENCY SECURITIES
The subcustodian shall be paid a fee of 5 basis points, calculated on an annual
basis and accrued daily, based upon the value of collateral received from the
Borrower for each loan under this Agreement.
EQUITIES AND CORPORATE BONDS
The subcustodian shall be paid a fee of 10 basis points, calculated on an annual
basis and accrued daily, based upon the value of collateral received from the
Borrower for each loan under this Agreement.
- 12 -
46
EXHIBIT F
APPROVED LETTER OF CREDIT BANKS
- 13 -
47
MMF DOMESTIC BANK APPROVED LIST
---------------------------------------------------------------------------------------------------------------------------
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
None American National Bank & Trust Company of Chicago GTD First Chicago NBD Corp
---------------------------------------------------------------------------------------------------------------------------
211135 None Bank of America Illinois GTD Bankamerica Corporation
080492 None Bank of America National Trust & SA GTD Bankamerica Corporation
---------------------------------------------------------------------------------------------------------------------------
None Bank of America NW GTD Bankamerica Corporation
None Bank of New York GTD Bank of New York Company, Inc. (The)
060579 None Bank of New York Company, Inc. (The) STD Bank of New York Company, Inc. (The)
066050 None Bankamerica Corporation STD Bankamerica Corporation
066337 None Bankers Trust Company GTD Bankers Trust New York Corp
066365 None Bankers Trust New York Corp STD Bankers Trust New York Corp
None Xxxxxxx Bank NA GTD Xxxxxxx Xxxxx Inc.
088055 None Xxxxxxx Xxxxx Inc. STD Xxxxxxx Xxxxx Inc.
None Branch Banking and Trust Company BB&T GTD Southern National Corp
None Chase Manhattan Bank NA GTD Chase Manhattan Corporation
181610 None Chase Manhattan Corporation STD Chase Manhattan Corporation
172905 None Citibank (New York State) GTD Citicorp
None Citibank (South Dakota) NA GTD Citicorp
None Citibank NA GTD Citicorp
173034 None Citicorp STD Citicorp
---------------------------------------------------------------------------------------------------------------------------
200339 None Comerica Bank-Detroit GTD Comerica Incorporated
200340 None Comerica Incorporated STD Comerica Incorporated
None Corestastes Bank DEL NA GTD CoreStates Financial Corp
None CoreStates Bank, NA GTD CoreStates Financial Corp
218695 None CoreStates Financial Corp STD CoreStates Financial Corp
-------------------------------------------------------------------------------------------------------------------
Thursday, April 09, 1998
------------------------------------------------------------------------------------------------------------------------------------
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
None American National Bank & Trust Company of Chicago Banking A-l+ NR NR F-1+ NR Al
------------------------------------------------------------------------------------------------------------------------------------
211135 None Bank of America Illinois Banking A-l+ NR D-1+ F-1+ NR Al+
080492 None Bank of America National Trust & SA Banking A-1 + NR D-l+ F-1+ NR Al+
------------------------------------------------------------------------------------------------------------------------------------
None Bank of America XX Xxxxxxx XX XX XX XX XX XX
Xxxx Bank of New York Banking A-1+ NR D-1 F-l+ T-1 Al+
060579 None Bank of New York Company, Inc. (The) BHC A-1 P-1 X-0 X-0 X-0 Xxx
000000 Xxxx Xxxxxxxxxxx Corporation BHC A-1 P-1 D-1 F-1+ T-1 Al+
066337 None Bankers Trust Company Banking X-0 XX X-0 XX X-0 Xxx
000000 None Bankers Trust New York Corp BHC A-1 P-1 D-1 F-1 + T-1 Al
None Xxxxxxx Bank NA Banking X-0 XX X-0 XX XX XX
000000 Xxxx Xxxxxxx Xxxxx Inc. BHC X-0 X-0 X-0 XX X-0 Xx
None Branch Banking and Trust Company BB&T Banking X-0 X-0 XX XX X-0 XX
Xxxx Xxxxx Xxxxxxxxx Bank NA Banking NR NR D-l+ NR Al+
181610 None Chase Manhattan Corporation BHC A-1 P-1 X-0 X-0 X-0 Xx
000000 Xxxx Xxxxxxxx (New York State) Banking A-l+ NR NR NR NR NR
None Citibank (South Dakota) XX Xxxxxxx X-xx XX XX XX XX XX
Xxxx Xxxxxxxx NA Banking A-1+ NR D-1+ F-l+ NR Al+
173034 None Citicorp BHC A-1 P-1 0-1 F-1+ T-1 Al+
-----------------------------------------------------------------------------------------------------------------------------------
200339 None Comerica Bank-Detroit Banking X-0 XX X-xx XX XX Xx
000000 Xxxx Xxxxxxxx Incorporated BHC NR NR D-1 NR T-1 Al
None Corestastes Bank DEL NA Banking XX XX XX XX XX XX
Xxxx XxxxXxxxxx Bank, NA Banking X-0 XX X-xx XX XX Xx
000000 Xxxx XxxxXxxxxx Financial Corp BHC NR NR D-1 NR T-1 Al
-----------------------------------------------------------------------------------------------------------------------------------
Thursday, April 09, 1998 Page l of 4
48
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR INDUSTRY
-----------------------------------------------------------------------------------------------------------------------------------
None FCC National Bank GTD First Chicago NBD Corp
318773 None Fifth Third Bancorp STD Fifth Third Bancorp
318774 None Fifth Third Bank GTD Fifth Third Bancorp
-----------------------------------------------------------------------------------------------------------------------------------
319455 None First Chicago NBD Corp STD First Chicago NBD Corp
None First National Bank of Chicago GTD First Chicago NBD Corp
-----------------------------------------------------------------------------------------------------------------------------------
337358 None First Union Corporation STD First Union Corporation
None First Union National Bank of North Carolina GTD First Union Corporation
3390E None Fleet Financial Group STD Fleet Financial Group
NA None Government Development Bank of Puerto Rico STD Government Development Bank of Puerto Rico
391417 Susp Great Western Bank, a FSB GTD Great Western Financial Corp
391442 Susp Great Western Financial Corp STD Great Western Financial Corp
414830 None Xxxxxx Trust and Savings Bank STD
588287 None HSBC Americas Inc STD
446150 None Huntington Bancshares Incorporated STD Huntington National Bank
446438 None Huntington National Bank GTD Xxxxxxxxxx Xxxxxxxx Xxxx
000000 Xxxx XX Xxxxxx & Co. Incorporated STD XX Xxxxxx & Co. Incorporated
None Key Bank NA GTD KeyCorp
492919 None Key Bank of New York GTD KeyCorp
492922 None Key Bank of Washington GTD KeyCorp
493267 None KeyCorp STD KeyCorp
-----------------------------------------------------------------------------------------------------------------------------------
None LaSalle Xxxxxxxx Xxxx XXX
000000 Xxxx Xxxxxx Xxxxxxxx Trust Company of New York GTD XX Xxxxxx & Co. Incorporated
635349 None National City Bank GTD National City Corporation
635357 None National City Bank Columbus GTD National City Corporation
635405 None National City Corporation STD National City Corporation
None NationsBank NA GTD NationsBank Corporation
-------------------------------------------------------------------------------------------------------------------
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
-----------------------------------------------------------------------------------------------------------------------------------
None FCC National Bank Banking X-0x XX XX X-0x XX Xx
000000 None Fifth Third Bancorp BHC A-1+ P-1 D-1+ F-1+ T-1 NR
318774 None Xxxxx Xxxxx Xxxx Xxxxxxx XX XX X-0 + F-1+ NR NR
-----------------------------------------------------------------------------------------------------------------------------------
319455 None First Chicago NBD Corp BHC A-1 P-1 D-1+ F-1 NR Al
None First National Bank of Chicago Banking A-l+ NR D-1+ F-1+ NR Al
-----------------------------------------------------------------------------------------------------------------------------------
337358 None First Union Corporation BHC X-0 X-0 X-0 XX X-0 Xx
None First Union National Bank of North Carolina Banking X-0 XX X-0 XX XX X0
0000X Xxxx Fleet Financial Group Banking A2 P-1 X-0 X-0 XXX-0 XX
XX Xxxx Government Development Bank of Puerto Rico RBanking Al+ NR NR NR T-1 NR
391417 Susp Great Western Bank, a FSB Banking X-0 X-0 XX X-0 XX XX
000000 Susp Great Western Financial Corp BHC X-0 X-0 XX XX X-0 XX
000000 None Xxxxxx Trust and Savings Bank BHC X-xx XX XX XX XX XX
000000 Xxxx XXXX Americas Inc Banking X-0 X-0 XX X-0 XX Xx
000000 None Huntington Bancshares Incorporated BHC XX XX XX XX X-0 Xx
000000 None Huntington National Bank Banking X-0 XX X-0 XX XX Xx
000000 None XX Xxxxxx & Co. Incorporated BHC A-1+ P-1 D-14 NR T-1 Al+
None Key Bank NA Banking NR NR D-1+ NR NR A1
492919 None Key Bank of New York Banking A-1 NR D-1+ NR NR A1
492922 None Key Bank of Washington Banking X-0 XX X0x XX XX XX
000000 Xxxx XxxXxxx BHC X-0 X-0 X-0 XX X-0 Xx
-----------------------------------------------------------------------------------------------------------------------------------
None LaSalle National Bank XXX XX XX XX XX XX XX
000000 Xxxx Xxxxxx Guaranty Trust Company of New York Banking A-1 NR D-l+ NR NR A1+
635349 None Xxxxxxxx Xxxx Xxxx Xxxxxxx XX XX X-0x XX X-0 Xx
000000 None Xxxxxxxx Xxxx Xxxx Xxxxxxxx Xxxxxxx X-0 XX X-0x NR T-1 NR
635405 None Xxxxxxxx Xxxx Xxxxxxxxxxx XXX XX XX X-0 F-2 T-1 Al
None NationsBank XX Xxxxxxx XX XX XX XX XX Xx
------------------------------------------------------------------------------
Thursday, April 09, 1998 Page 2 Of 4
49
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
--------------------------------------------------------------------------------------------------------------------------
638585 None NationsBank Corporation STD NationsBank Corporation
None NationsBank of Georgia, NA GTD NationsBank Corporation
628857 None Nationsbank of Texas, NA GTD NationsBank Corporation
--------------------------------------------------------------------------------------------------------------------------
None NBD Bancorp, Inc. GTD First Chicago NBD Corp
None NBD Bank NA GTD First Chicago NBD Corp
--------------------------------------------------------------------------------------------------------------------------
68586G None Northern Trust Company GTD Northern Trust Corporation
685859 None Northern Trust Corporation STD Northern Trust Corporation
None Norwest Bank Minnesota NA GTD Norwest Corporation
669330 None Norwest Corporation STD Norwest Corporation
693475 None PNC Bank Corp. STD PNC Bank Corp.
None PNC Bank Kentucky GTD PNC Bank Corp.
69347S None PNC Bank NA GTD PNC Bank Corp.
None PNC Bank Ohio NA GTD PNC Bank Corp.
None Republic National Bank of New York XXX Xxxxxxxx Xxx Xxxx Xxxxxxxxxxx
000000 Xxxx Xxxxxxxx New York Corporation STD Republic New York Corporation
None Security Pacific Bank Washington, XX XXX Xxxxxxxxxxx Xxxxxxxxxxx
000000 None Southern National Corp STD Southern National Corp
85508 None Star Bank NA GTD Star Banc Corporation
None State Street Bank and Trust Company STD State Street Boston Corp.
857473 None State Street Boston Corp. STD State Street Boston Corp.
--------------------------------------------------------------------------------------------------------------------------
None SunTrust Bank, Atlanta GTD Suntrust Banks, Inc.
867914 None Suntrust Banks, Inc. STD Suntrust Banks, Inc.
None Union Bank of California STD
911598 None US Bancorp STD US Bancorp
None US Bank of Washington NA GTD US Bancorp
None US National Bank of Oregon GTD US Bancorp
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
------------------------------------------------------------------------------------------------------------------------------------
638585 None NationsBank Corporation BHC A-1 P-1 D-1+ F-1 T-1 A1
None NationsBank of Georgia, NA Banking XX XX XX XX XX XX
000000 Xxxx Xxxxxxxxxxx of Texas, NA Banking A-1 NR D-l+ F-1+ NR Al
------------------------------------------------------------------------------------------------------------------------------------
None NBD Bancorp, Inc. Banking XX XX X-0x XX XX XX
Xxxx XXX Bank NA Banking NR NR D-1+ NR NR NR
------------------------------------------------------------------------------------------------------------------------------------
68586G None Northern Trust Company Banking X-0x XX XX XX XX Xxx
000000 Xxxx Xxxxxxxx Trust Corporation BHC A-1+ P-1 NR NR T-1 A1+
None Norwest Bank Minnesota NA Banking NR NR D-1+ F-1+ NR Al+
669330 None Norwest Corporation BHC A-1+ P-1 D-l+ F-1+ T-1 Al+
693475 None PNC Bank Corp. BHC NR NR NR NR T-1 Al
None PNC Bank Kentucky Banking X-0 XX XX XX XX XX
00000X Xxxx XXX Bank XX Xxxxxxx XX XX X-0 + NR NR Al
None PNC Bank Ohio NA Banking X-0 XX XX XX XX XX
Xxxx Xxxxxxxx National Bank of New York Banking A-1+ NR D-1+ F-1+ NR A1+
760719 None Republic New York Corporation BHC A-1 + P-1 D-1 + F-l+ T-1 Al+
None Security Pacific Bank Washington, NA Banking XX XX XX XX XX XX
000000 Xxxx Xxxxxxxx National Corp BHC X-0 X-0 XX XX X-0 XX
00000 None Star Bank NA Banking Al NR NR Fl T-1 NR
None State Street Bank and Trust Company Banking X-0x XX XX XX XX Xxx
000000 None State Street Boston Corp. BHC A-1+ P-1 NR NR T-1 Al+
------------------------------------------------------------------------------------------------------------------------------------
None SunTrust Bank, Atlanta Banking NR NR NR NR NR Al+
867914 None Suntrust Banks, Inc. BHC X-0 X-0 XX XX X-0 X0x
Xxxx Xxxxx Bank of California BHC X-0 XX XX XX X-0 X0
000000 Xxxx XX Bancorp BHC NR X-0 X-0x XX X-0 Xx
Xxxx XX Bank of Washington XX Xxxxxxx XX XX X-0x XX XX X0
Xxxx US National Bank of Oregon Banking X-0 XX X-0x XX XX Xx
-------------------------------------------------------------------------------
Thursday, April 09, 1998 Page 3 of 4
50
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
---------------------------------------------------------------------------------------------------------------------
None Wachovia Bank of Georgia NA GTD Wachovia Corporation
None Wachovia Bank of North Carolina, NA GTD Wachovia Corporation
929771 None Wachovia Corporation STD Wachovia Corporation
---------------------------------------------------------------------------------------------------------------------
949740 None Xxxxx Fargo & Company STD Xxxxx Fargo & Company
None Xxxxx Fargo Bank, NA GTD Xxxxx Fargo & Company
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
--------------------------------------------------------------------------------------------------------------------------------
None Wachovia Bank of Georgia NA Banking A-1+ NR NR NR NR A1+
None Wachovia Bank of North Carolina, NA Banking A-l+ NR NR NR NR Al+
929771 None Xxxxxxxx Xxxxxxxxxxx XXX X-xx X-0 XX XX X-0 Al+
--------------------------------------------------------------------------------------------------------------------------------
949740 None Xxxxx Fargo & Company BHC A-1 P-1 D-1 NR T-1 Al
None Xxxxx Xxxxx Xxxx, XX Xxxxxxx X-0 XX X-0 NR NR Al
------------------------------------------------------------------------------
Thursday, April 09, 1998 Page 4 of 4
51
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
-------------------------------------------------------------------------------------------------------------------
NA 3(a)3 185 AB Spintab GTD Swedbank
NA None Abbey National North America GTD Abbey National pic
NA None Abbey National Pic STD Abbey National Pic
-------------------------------------------------------------------------------------------------------------------
00077Q None ABN Amro Holding NV STD ABN Amro Xxxxxxx XX
00000X None ABN Amro North Am. Fin. GTD ABN Amro Holding NV
-------------------------------------------------------------------------------------------------------------------
NA None Banca Monte del Paschi di Siena SpA STD Banco Monte del Paschi di Siena SpA
ES021390 None Banco Santander SA STD Banco Santander SA
000000 None Bank of Montreal STD Bank of Montreal
000000 None Bank of Nova Scotia SCOTIABANK STD Bank of Nova Scotia SCOTIABANK
000000 185 Bank of Tokyo - Mitsubishi STD Bank of Tokyo - Mitsubishi
NA None Banque Nationale de Paris BNP STD Banque Nationale de Paris BNP
003090 185 Banque Paribas STD Banque Xxxxxx
00000X Xxxx Xxxxxxxx Bank Pic STD Barclays Bank Pic
06738C None Barclays US Funding Corp GTD Barclays Bank Pic
NA None Bayerische Landesbank GZ STD Bayerische Landesbank GZ
000207 None Bayerische Vereinsbank AG STD Bayerische Vereinsbank AG
NA 65 BHF Finance Inc. GTD BHF-Bank AG
NA 65 BHF-BANK AG STD BHF-BANK AG
NA None Canadian Imperial Bank of Commerce (CIBC) STD Canadian Imperial Bank of Commerce CIBC
NA None Canadian Imperial Holdings Inc. GTD Canadian Imperial Bank of Commerce
-------------------------------------------------------------------------------------------------------------------
NA None Commerzbank AG STD Commerzbank AG
NA None Credit Agricole CA STD Credit Agricole CA
NA None Credit Agricole USA Inc. GTD Credit Agricole
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
----------------------------------------------------------------------------------------------------------------------------------
NA 3(a)3 185 AB Spintab Banking X-0 X-0 XX XX X-0 XX
XX Xxxx Xxxxx National North America Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Abbey National Pic Banking A-1+ NR NR Fl+ T-1 SK
-------------------------------------------------------------------------------------------------------------------
00077Q None ABN Amro Holding NV Banking A-1+ P-1 NR Fl+ T-1 SK
00077Q None ABN Amro North Am. Fin. Banking A-l+ P-1 NR Fl+ T-1 SK
-------------------------------------------------------------------------------------------------------------------
NA None Banca Monte del Paschi di Siena SpA Banking A-2 P-1 NR Fl T-1 SK
ES021390 None Banco Santander SA Banking A-l+ NR NR Fl+ T-1 SK
000000 None Bank of Montreal Banking A-l+ P-1 NR Fl+ T-1 SK
000000 None Bank of Nova Scotia SCOTIABANK Banking X-0x X-0 XX Xxx X-0 XX
000000 185 Bank of Tokyo - Mitsubishi Banking A-1 NR NR Fl+ T-1 SK
NA None Banque Nationale de Paris BNP Banking X-0 X-0 XX X0x X-0 XX
000000 185 Banque Paribas Banking A-1 P-1 NR Fl T-1 SK
06738C None Barclays Bank Pic Banking A-l+ X-0 XX Xxx X-0 XX
00000X Xxxx Xxxxxxxx XX Funding Corp Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Bayerische Landesbank GZ Banking X-0x X-0 XX Xxx X-0 XX
000000 None Bayerische Vereinsbank AG Banking A-1+ P-1 NR Fl+ T-1 SK
NA 65 BHF Finance Inc. Banking X-0 X-0 XX Xxx X-0 XX
XX 00 BHF-BANK AG Banking A-2 NR NR Fl+ T-1 SK
NA None Canadian Imperial Bank of Commerce (CIBC) Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Canadian Imperial Holdings Inc. Banking A-l+ P-1 NR Fl+ T-1 SK
-------------------------------------------------------------------------------------------------------------------
NA None Commerzbank AG Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Credit Agricole CA Banking NR NR NR Fl+ T-1 SK
NA None Credit Agricole USA Inc. Banking Al+ NR NR Fl+ T-1 SK
-------------------------------------------------------------------------------
Wednesday, April 29, 1998 Page 1
52
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
-------------------------------------------------------------------------------------------------------------------
NA None Credit Suisse STD Credit Suisse
NA None Credit Suisse Financial Services GTD Credit Suisse
NA Susp Dai-Ichi Kangyo Bank Ltd DKB STD Dai-Ichi Kangyo Bank Ltd DKB
-------------------------------------------------------------------------------------------------------------------
248206 None Xxx Danske Bank STD Xxx Danske Bank
248206 None Xxx Danske Corp. GTD Xxx Danske Bank
-------------------------------------------------------------------------------------------------------------------
NA None Deutsche Bank AG STD Deutsche Bank AG
NA None Deutsche Financial Inc. GTD Deutsche Bank AG
261561 None Dresdner Bank STD Dresdner Bank
NA Susp Fuji Bank Ltd. STD Fuji Bank Ltd.
NA None Halifax Building Society STD Halifax Building Society
NA None HSBC Holdings Pic STD HSBC Holdings Pic
NA Susp Industrial Bank of Japan Ltd STD Industrial Bank of Japan Ltd
NA None Kredietbank KB STD Kredietbank KB
NA None Kredietbank NA Financial GTD Kredietbank NV
NA None Lloyds Bank pic STD Lloyds Bank pic
632525 None National Australia Bank STD National Australia Bank
632525 None National Australia Funding GTD National Australia Bank
638539 None National Westminister Bank Pic STD National Westminister Bank Pic
NA None Rabobank Nederland STD Rabobank Nederland
NA None Rabobank USA Financial GTD Rabobank Nederland
-------------------------------------------------------------------------------------------------------------------
NA None Royal Bank of Canada RBC STD Royal Bank of Canada RBC
NA Susp Sanwa Bank Ltd STD Sanwa Bank Ltd
870536 None SBS - Swiss Bank Corporation STD SBS - Swiss Bank Corporation
NA None Societe Generale STD Societe Generale
NA None Societe Generale NA Inc. . GTD Societe Generale
004860 Susp Sumitomo Bank Ltd STD Sumitomo Bank Ltd
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
----------------------------------------------------------------------------------------------------------------------------------
NA None Credit Suisse Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Credit Suisse Financial Services Banking A-1+ P-1 NR Fl+ T-1 SK
NA Susp Dai-Ichi Kangyo Bank Ltd DKB Banking A-1 NR NR Fl+ T-1 SK
----------------------------------------------------------------------------------------------------------------------------------
248206 None Xxx Danske Bank Banking A-1 P-1 NR Fl+ T-1 SK
248206 None Xxx Danske Corp. Banking A-1 P-1 NR Fl+ T-1 SK
----------------------------------------------------------------------------------------------------------------------------------
NA None Deutsche Bank AG Banking A-1+ NR NR Fl+ T-1 SK
NA None Deutsche Financial Inc. Banking A-1+ P-1 NR Fl+ T-1 SK
261561 None Dresdner Bank Banking A-1+ P-1 NR Fl+ T-1 SK
NA Susp Fuji Bank Ltd. Banking A-2 NR NR Fl+ T-1 SK
NA None Halifax Building Society Banking A-l+ P-1 NR Fl+ T-1 SK
NA None HSBC Holdings Pic Banking NR NR NR Fl+ T-1 SK
NA Susp Industrial Bank of Japan Ltd Banking A-1 NR NR Fl+ T-1 SK
NA None Kredietbank KB Banking A-l+ NR NR Fl+ T-1 SK
NA None Kredietbank NA Financial Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Lloyds Bank pic Banking X-0x X-0 XX Xxx X-0 XX
000000 None National Australia Bank Banking A-1+ P-1 NR Fl+ T-1 SK
632525 None National Australia Funding Banking X-0x X-0 XX Xxx X-0 XX
000000 None National Westminister Bank Pic Banking X-0x X-0 XX Xxx X-0 XX
XX Xxxx Xxxxxxxx Xxxxxxxxx Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Rabobank USA Financial Banking A-1+ P-1 NR Fl+ T-1 SK
----------------------------------------------------------------------------------------------------------------------------------
NA None Royal Bank of Canada RBC Banking A-1+ P-1 NR Fl+ T-1 SK
NA Susp Sanwa Bank Ltd Banking X-0 XX XX X0x X-0 XX
000000 Xxxx XXX - Xxxxx Bank Corporation Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Societe Generale Banking A-1+ P-1 NR Fl+ T-1 SK
NA None Societe Generale NA Inc. . Banking A-1+ P-1 NR Fl+ T-1 SK
004860 Susp Sumitomo Bank Ltd Banking A-2 NR NR Fl+ T-1 SK
-------------------------------------------------------------------------------
Wednesday, April 29, 1998 Page 2
53
CUSIP PROGRAM REST. ISSUER TYPE GUARANTOR
----------------------------------------------------------------------------------------------------------------------------------
NA 185 daysSwedbank STD Xxxxxxxx
000000 Xxxx Xxxxxxx Dominion Bank STD Dominion Bank
891160 None Toronto Dominion Holdings GTD Toronto Dominion Bank
NA None Unibank A/S STD Unibank A/S
90474L 3(a)3 None Unifunding Inc. GTD Unionbank A/S
90531P None Union Bank of Switzerland UBS STD Union Bank of Switzerland UBS
957526 None Westdeutsche Landesbank GZ STD Westdeutsche Landesbank GZ
CUSIP PROGRAM REST. ISSUER INDUSTRY SPC MDY'S DCR FITCH TBW IBCA
----------------------------------------------------------------------------------------------------------------------------------
NA 185 daysSwedbank Banking X-0 X-0 XX XX XXX-0 XX
000000 Xxxx Xxxxxxx Dominion Bank Banking A-l+ P-1 NR Fl+ T-1 SK
891160 None Toronto Dominion Holdings Banking A-l+ P-1 NR Fl+ T-1 SK
NA None Xxxxxxx X/X Xxxxxxx X-0 X0 XX Xx T-1 SK
90474L 3(a)3 None Unifunding Inc. Banking X-0 X0 XX X0 X-0 XX
00000X Xxxx Xxxxx Bank of Switzerland UBS Banking A-1+ P-1 NR Fl+ T-1 SK
957526 None Westdeutsche Landesbank GZ Banking A-l+ P-1 NR Fl+ T-1 SK
-----------------------------------------------------------------------------
Wednesday, April 29,1998 Page
