CUSTOMER IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (this "Amendment") amends,
as of the 1st day of October, 2003 (the "Effective Date"), the Transfer Agency
Services Agreement, dated as of November 7, 1997, between Narragansett Insured
Tax-Free Income Fund (the "Fund") and PFPC Inc. ("PFPC") (the "Agreement").
For valuable consideration, the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Fund and PFPC hereby agree as follows:
Section 1 (Addition of CIP Services section to the Agreement). As of the
Effective Date, the Agreement shall be amended by the addition of the following
as the new final section of the agreement:
"CIP Services. To help the Fund comply with its Customer Identification
Program (which the Fund is required to have under regulations issued under
Section 326 of the USA PATRIOT Act) PFPC will do the following:
(a) Implement procedures under which new accounts in the Fund are not
established unless PFPC has obtained the name, date of birth (for
natural persons only), address and government-issued identification
number (collectively, the "Data Elements") for each corresponding
Customer (as defined in 31 CFR 103.131).
(b) Use collected Data Elements to attempt to reasonably verify the
identity of each new Customer promptly before or after each
corresponding new account is opened. Methods may consist of
non-documentary methods (for which PFPC may use unaffiliated
information vendors to assist with such verifications) and documentary
methods (as permitted by 31 CFR 103.131), and may include procedures
under which PFPC personnel perform enhanced due diligence to verify
the identities of Customers the identities of whom were not
successfully verified through the first-level (which will typically be
reliance on results obtained from an information vendor) verification
process(es).
(c) Record the Data Elements and maintain records relating to verification
of new Customers consistent with 31 CFR 103.131(b)(3).
(d) Regularly report to the Fund about measures taken under (a)-(c) above.
(e) Provide annually or upon the reasonable request of the Fund a
certification that PFPC has, to the best of its knowledge, complied
with its obligations under this Amendment.
(f) If PFPC provides services by which prospective Customers may subscribe
for shares in the Fund via the Internet or telephone, work with the
Fund to notify prospective Customers, consistent with 31 CFR
103.(b)(5), about the Fund's CIP.
(g) Set forth on a separate fee schedule compensation amounts due for
these CIP Services.
Notwithstanding anything to the contrary, and without expanding the scope
of the express language above, PFPC need not collect the Data Elements for
(or verify) prospective customer (or accounts) beyond the requirements of
relevant regulation (for example, PFPC will not verify customers opening
accounts through NSCC) and PFPC need not perform any task that need not be
performed for the Fund to be in compliance with relevant regulation.
The Fund hereby represents and warrants that each of the portfolios
serviced by PFPC, and each legal entity of which such portfolio is a part,
has, and will at all times during which this Agreement is in effect
maintain in place, a written agreement with each such other portfolio and
entity, under which all such parties may rely upon the Customer
Identification Programs of any other with respect to prospective investors
who are then existing customers of such other. Given such inter-company (or
inter-fund) agreement(s), PFPC need not perform steps (a)-(f) above with
respect to any subscriber who is then a customer of any other fund within
the same "fund family" as the Fund."
Section 2 (General provisions). This Amendment contains the entire
understanding between the parties with respect to the services contemplated
hereby. Except as expressly set forth herein, the Agreement shall remain
unaffected hereby.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
NARRAGANSETT INSURED TAX-FREE INCOME FUND
By: __________________________________________
Name:
Title:
PFPC INC.
By: ________________________________________
Name:
Title:
