Exhibit 9(ii) under Form N-1A
Exhibit 10 under Item 601/Reg. S-K
SUB-TRANSFER AGENCY AND SERVICES AGREEMENT
APPOINTMENT BY FEDERATED SERVICES COMPANY
OF BOSTON FINANCIAL DATA SERVICES, INC.
AGREEMENT made as of the 25th day of November 1996, by and between
FEDERATED SERVICES COMPANY, a Pennsylvania Corporation having its principal
office and place of business at Federated Investors Tower, Pittsburgh,
Pennsylvania 15222-3779 (the "TA") and BOSTON FINANCIAL DATA SERVICES,
INC., a Massachusetts Trust ("BFDS"), having its principal office and place
of business at The BFDS Building, 2 Heritage Drive, Quincy, Massachusetts
02171(the "Agent") and FEDERATED MUNICIPAL TRUST, a Massachusetts Business
Trust having its principal office and place of business at Federated
Investors Tower, Pittsburgh, Pennsylvania 15222-3779, (the `Trust'') on
behalf of the 1784 FUNDS SHARES (FORMERLY THE BAYFUNDS SHARES) OF THE
MASSACHUSETTS MUNICIPAL CASH TRUST (the `Fund'').
WHEREAS, TA has entered into an Agreement for Fund Accounting
Services, Administrative Services, Transfer Agency Services and Custody
Services Procurement ("TA Agreement") with the Trust, pursuant to which the
Trust has appointed TA as transfer agent, dividend disbursing agent and
agent in connection with providing certain transfer agency services with
regard to the Fund and each portfolio thereunder, including the 1784 Funds
Shares issued by the Fund ("Bay Shares; and
WHEREAS, the Trust desires and instructs TA to appoint Agent as its
agent, and Agent is willing to accept such appointment, to carry out
certain of TA's transfer agency services that TA has appointed to its
subsidiary, Federated Shareholder Services Company (`FSSC'') to perform
(the `Services'') under the TA Agreement for the Fund;
NOW THEREFORE, in consideration of the premises and mutual promises
herein set forth, TA and Agent, intending to be legally bound hereby agree
as follows:
Article 1. Appointment of Agent.
TA hereby appoints Agent as its agent to carry out the Services as set
forth herein with respect to the Trust and to supply to TA the required
data and information so that TA is able to carry out its duties and
functions under the TA Agreement. Agent hereby agrees to accept such
appointment and to carry out the responsibilities set forth herein. TA
agrees to supply Agent with copies of all documents, records and other
information supplied to TA by the Trust pursuant to the TA Agreement
necessary for Agent to carry out its responsibilities hereunder.
As used throughout this Agreement, "Proper Instructions" means a
writing signed or initialed by one or more person or persons as TA or the
Trust shall have from time to time authorized. Each such writing shall set
forth the specific transaction or type of transaction involved. Oral
instructions will be deemed to be Proper Instructions if: (a) Agent
reasonably believes them to have been given by a person previously
authorized in Proper Instructions to give such instructions with respect to
the transaction involved; and (b) TA and Agent promptly cause such oral
instructions to be confirmed in writing. Proper Instructions may include
communications effected directly between electro-mechanical or electronic
devices provided that the Trust or TA and Agent are satisfied that such
procedures afford adequate safeguards for the Fund's assets. Proper
Instructions may only be amended in writing.
Article 2. Duties of Agent.
With respect to the Fund, Agent agrees that it will perform the
Services as described on Exhibit A attached hereto, which may be changed
from time to time as the parties may agree.
Article 3. Duties of the Fund.
A. Compliance
The Fund assumes full responsibility for the preparation, contents
and distribution of each Prospectus and for complying with all
applicable requirements of the Securities Act of 1933, as amended
(the "1933 Act"), the 1940 Act and any laws, rules and regulations
of government authorities having jurisdiction.
B. Share Certificates
The Fund shall supply Agent with a sufficient supply of blank Share
certificates and from time to time shall renew such supply upon
request of Agent. Such blank Share certificates shall be properly
signed, manually or by facsimile, if authorized by the Fund and
shall bear the seal of the Fund or facsimile thereof; and
notwithstanding the death, resignation or removal of any officer of
the Fund authorized to sign certificates, Agent may continue to
countersign certificates which bear the manual or facsimile
signature of such officer until otherwise directed by the Fund.
C. Distributions
The Fund shall promptly inform Agent of the declaration of any
dividend or distribution on account of the Fund's shares.
Article 4. Fees and Expenses.
A. Annual Fee
For performance by Agent pursuant to this Agreement, Trust and/or
the Fund agrees to pay Agent an annual fee for each Shareholder
account as set out in Exhibit B attached hereto, which may be billed
directly to and paid directly by the Trust. Such fees may be
changed from time to time subject to written agreement among the
Trust, Agent and TA.
B. Reimbursements
In addition to the fee paid under Article 4A above, the Trust and/or
the Fund agrees to reimburse Agent for out-of-pocket expenses or
advances incurred by Agent for the items set out in Exhibit B
attached hereto, which may be billed directly to and paid directly
by the Fund. In addition, any other expenses incurred by Agent at
the request or with the consent of TA or the Fund, will be
reimbursed by TA or the Fund.
C. Payment
Agent shall send an invoice with respect to fees and reimbursable
expenses to the Trust as soon as practicable at the end of each
month. Each invoice will provide detailed information about the
compensation and out-of-pocket expenses in accordance with
Exhibit B. The Trust agrees to pay all fees and reimbursable
expenses within 30 days following the receipt of the respective
billing notices.
Article 5. Covenants.
A. Covenants of Agent
Agent covenants that with regard to the sub-accounts:
(1) All information furnished to or obtained by Agent pertaining to
TA's system, facilities, procedures, program and data base is
confidential and proprietary to TA, and Agent shall not
disclose such information, directly or indirectly, to any third
party except to the extent that Agent is required by law to
make such disclosures.
(2) Agent shall make its third party audits available for
inspection and examination by the Trust or its representatives
during normal business hours in order that the Trust may
determine Agent's ability to perform its duties and
responsibilities hereunder.
Article 6. Representations and Warranties.
A. Representations and Warranties of Agent
Agent represents and warrants to TA that:
(1) It is a Massachusetts Corporation duly organized and existing
and in good standing under the laws of The Commonwealth of
Massachusetts.
(2) It is duly qualified to carry on its business in The
Commonwealth of Massachusetts.
(3) It is empowered under applicable laws and by its charter and
By-Laws to enter into and perform its obligations under this
Agreement.
(4) All requisite corporate proceedings have been taken to
authorize it to enter into and perform this Agreement.
(5) It has and will continue to have access to the necessary
facilities, equipment and personnel to perform its duties and
obligations under this Agreement.
(6) It is in compliance with federal securities law requirements
and in good standing as a transfer agent.
B. Representations and Warranties of TA
TA represents and warrants to Agent that:
(1) It is a Pennsylvania Corporation duly organized and existing
and in good standing under the laws of The Commonwealth of
Pennsylvania.
(2) It is duly qualified to carry on its business in The
Commonwealth of Pennsylvania.
(3) It is empowered under applicable laws and by its charter and
By-Laws and by the Fund to enter into and perform its
obligations under this Agreement.
(4) All requisite corporate proceedings have been taken to
authorize it to enter into and perform its obligations under
this Agreement.
(5) It has and will continue to have access to the necessary
facilities, equipment and personnel to perform its duties and
obligations under this Agreement.
(6) It is in compliance with federal securities law requirements
and FSSC is in good standing as a transfer agent.
C. Representations and Warranties of the Trust
The Trust represents and warrants that:
(1) The Trust is a business trust organized and existing and in
good standing under the laws of The Commonwealth of
Massachusetts, ("Investment Company").
(2) Investment Company is empowered under applicable laws and by
its Declaration of Trust or ("Declaration of Trust") and By-
Laws to enter into and perform its obligations under this
Agreement.
(3) All corporate proceedings required by said Declaration of Trust
and By-Laws have been taken to authorize it to enter into and
perform its obligations under this Agreement.
(4) Investment Company is an open-end investment company registered
under the 0000 Xxx.
(5) A registration statement under the 1933 Act will be effective,
and appropriate state securities law filings have been made and
will continue to be made, with respect to all Shares of the
Fund being offered for sale.
Article 7. Standard of Care/Indemnification.
A. Standard of Care
Agent shall be held to a standard of reasonable care in carrying out
the provisions of this Agreement; provided, however that Agent shall
be held to any higher standard of care which would be imposed upon
Agent by any applicable law or regulation even though such stated
standard of care was not part of this Agreement.
B. Indemnification by Fund
Agent shall not be responsible for and the Fund shall indemnify and
hold Agent harmless against any and all losses, damages, costs,
charges, counsel fees, payments, expenses and liabilities arising
out of or attributable to:
(1) The Fund's refusal or failure to comply with the terms of this
Agreement, or which arise out of the Fund's lack of good faith,
negligence or willful misconduct or which arise out of the
breach of any representation or warranty of the Fund hereunder.
(2) The reliance on or use by Agent or its agents or subcontractors
of information, records and documents in proper form which
(a) are received by Agent or its agents or subcontractors and
furnished to it by or on behalf of the Fund, its
Shareholders or investors regarding the purchase,
redemption or transfer of shares and Shareholder account
information, or
(b) have been prepared and/or maintained by the Fund or its
agents or its affiliates or any other person or firm on
behalf of the Fund.
(3) The reliance on, or the carrying out by Agent or its agents or
subcontractors of Proper Instructions of TA or the Fund.
(4) The offer or sale of Shares in violation of any requirement
under the federal securities laws or regulations or the
securities laws or regulations of any state that such Shares be
registered in such state or in violation of any stop order or
other determination or ruling by any federal agency or any
state with respect to the offer or sale of such Shares in such
state.
Provided, however, that Agent shall not be protected by this
Article 7.B. from liability for any act or omission resulting
from Agent's lack of good faith, negligence, willful
misconduct, or failure to meet the standard of care set forth
in Article 7.A., above.
C. Indemnification by TA
TA shall indemnify and hold Agent and the Fund harmless from and
against any and all losses, damages, costs, charges, counsel fees,
payments, expenses and liabilities arising out of or attributable to
any action or failure or omission to act by the TA result of TA's
lack of good faith, negligence, willful misconduct, or failure to
meet the standard of care set forth in Article 7.A above. The
Agent, its agents and subcontractors shall be protected and
indemnified in recognizing stock certificates which are reasonably
believed to bear the proper manual or facsimile signatures of the
officers of the Fund, and the proper countersignature of any former
transfer agent or registrar, or of a co-transfer agent or co-
registrar.
D. Reliance
At any time TA or Agent may apply to any officer of the Investment
Company for instructions, and may consult with legal counsel with
respect to any matter arising in connection with the services to be
performed by TA or Agent under this Agreement, and TA and its agents
or subcontractors and Agent and its agents or subcontractors shall
not be liable and shall be indemnified solely by the appropriate
Fund for any action reasonably taken or omitted by it in reliance
upon such instructions or upon the opinion of such counsel provided
such action is not in violation of applicable federal or state laws
or regulations.
E. Notification
In order that the indemnification provisions contained in this
Article 7 shall apply, upon the assertion of a claim for which
either party may be required to indemnify the other, the party
seeking indemnification shall promptly notify the other party of
such assertion, and shall keep the other party advised with respect
to all developments concerning such claim. The party who may be
required to indemnify shall have the option to participate with the
party seeking indemnification in the defense of such claim. The
party seeking indemnification shall in no case confess any claim or
make any compromise in any case in which the other party may be
required to indemnify it except with the other party's prior written
consent.
Article 8. Amendment.
The Trust and TA shall not agree to any amendment or waiver of the
provisions of the TA Agreement which would affect Agent's interests
hereunder without the written consent of Agent, which shall not be
unreasonably withheld.
Article 9. Termination of Agreement
This Agreement may be terminated at any time by sixty (60) days'
written notice given by Agent to TA or by TA to Agent; provided, however,
that this Agreement may be terminated immediately at any time by TA in the
event that the TA Agreement is terminated, or in the event that Agent fails
to cure a breach of, or a failure to perform its duties under this
Agreement within thirty (30) days following written notice of such breach
or failure. Should a party exercise its rights to terminate, all out-of-
pocket expenses associated with the movement of records and materials will
be borne by that party. Additionally, the injured party reserves the right
to charge for any other reasonable expenses associated with such
termination.
Article 10. Miscellaneous.
A. Each party agrees to perform such further acts and execute such
further documents as are necessary to effectuate the purposes
hereof. This Agreement shall be construed and enforced in
accordance with and governed by the laws of The Commonwealth of
Massachusetts. This Agreement may be executed simultaneously in
counterparts, each of which taken together shall constitute one and
the same instrument.
B. The Trust executes this Agreement for the sole purpose of consenting
to the assignment by TA to Agent of certain duties and
responsibilities of TA as enumerated in the TA Agreement. The Trust
makes no representations as to the sufficiency of this Appointment
or the legal relationship between TA and Agent.
Article 11. Notices.
Except as otherwise specifically provided herein, Notices and other
writings delivered or mailed postage prepaid to TA at Federated Investors
Tower, Pittsburgh, Pennsylvania, 15222-3779 and to Agent at
and to the Trust at Federated Investors Tower, Pittsburgh,
Pennsylvania, 15222-3779, or to such other address as the Trust, TA or
Agent may hereafter specify, shall be deemed to have been properly
delivered or given hereunder to the respective address.
Article 12. Limitations of Liability of Board Members and Shareholders
of the Parties to the Agreement.
The execution and delivery of this Agreement have been authorized by
the Boards of each party and signed by an authorized officer of each party,
acting as such, and neither such authorization by such Board members nor
such execution and delivery by such officer shall be deemed to have been
made by any of them individually or to impose any liability on any of them
personally, and the obligations of this Agreement are not binding upon any
of the Board members or Shareholders of the parties, but bind only the
appropriate property as provided in their charter or By-Laws.
Article 13. Merger of Agreement.
This Agreement constitutes the entire agreement between Agent ,TA, and
the Trust and supersedes any prior agreement with respect to the subject
hereof whether oral or written.
Article 14. Successor Agent.
If a successor agent for the Fund shall be appointed by TA or the
Trust, Agent shall upon termination of this Agreement deliver to such
successor agent at the office of Agent all properties of the Trust held by
it hereunder. If no such successor agent shall be appointed, Agent shall
at its office upon receipt of Proper Instructions from TA, deliver such
properties in accordance with such instructions.
In the event that no written order designating a successor agent or
Proper Instructions from TA shall have been delivered to Agent on or before
the date when such termination shall become effective, then Agent shall
have the right to deliver to a bank or trust company, which is a "bank" as
defined in the Investment Company Act of 1940, as amended, of its own
selection, having an aggregate capital, surplus, and undivided profits, as
shown by its last published report, of not less than $2,000,000, all
properties held by Agent under this Agreement. Thereafter, such bank or
trust company shall be the successor of Agent under this Agreement.
Article 15. Force Majeure.
Agent shall have no liability for cessation of services hereunder or
any damages resulting therefrom to TA or to the Trust as a result of work
stoppage, power or other mechanical failure, natural disaster, governmental
action, communication disruption or other impossibility of performance.
(Space intentionally left blank)
Article 16. Severability.
In the event any provision of this Agreement is held illegal, void or
unenforceable, the balance shall remain in effect.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed in their names and on their behalf under their seals by and
through their duly authorized officers, as of the day and year first above
written.
BOSTON FINANCIAL DATA SERVICES, INC.
By: /s/ Xxxxxxx Xxxxx
Name: Xxxxxxx Xxxxx
Title: Vice President
FEDERATED SERVICES COMPANY
By: /s/ Xxxxxxxx Xxxxxxxxxx
Name: Xxxxxxxx Xxxxxxxxxx
Title: Senior Vice President
FEDERATED MUNICIPAL TRUST
By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Name: J. Xxxxxxxxxxx Xxxxxxx
Title: Executive Vice-President
EXHIBIT A
I. Description of the Services
Definitions:
1. ``Approved Institution'' shall mean 1784 Investor Services, Inc.,
Bay Bank Systems, Inc., The First National Bank of Boston or any
authorized and duly appointed Shareholder Servicing Agent
identified in a Proper Instruction. From time to time, the Fund
may amend a previously delivered Proper Instruction by delivering
to Agent Proper Instructions naming an additional entity or
deleting any entity named in previously delivered proper
Instructions. Any additional entity so named shall be subject to
the prior approval of Agent, which approval shall not be
unreasonably withheld.
2. ``Proper Instructions'' shall mean a writing signed or initialed by
one or more person or persons as the Board of Trustees of the Trust
shall from time to time authorize. Each such writing shall set
forth the specific transaction or type of transaction involved.
Oral instructions will be considered Proper Instructions if Agent
or TA reasonably believe them to be given by a person previously
authorized in Proper Instructions to give instructions with respect
to the transaction involved. The Trust and TA shall cause all oral
instructions to be confirmed in writing. Proper Instructions
include communications effected between electromechanical or
electronic devices, unless the Trust or TA notifies Agent that
Agent cannot rely upon the integrity of the data transmitted.
Proper Instructions may only be amended in writing.
3. ``Authorized Persons'' shall be deemed to be any person duly
authorized by the Board of Trustees of the Trust to execute any
Proper Instructions, and named in the list annexed hereto as
Schedule D, as such list may be amended from time to time.
In consideration of the fees to be paid hereunder, Agent will provide
the subaccounting services set forth below:
Electronically Process New Accounts, Account Maintenance, Subsequent
Purchases, Redemptions, Liquidations, Exchanges, Transfers, Telephone
Transactions, Check Redemption, Automatic Withdrawals, and Wire Order
Trades based on data inputted from any Approved Institution.
Process Dividends, Dividend Statements, Dealer Statements, trade
confirmations and periodic shareholder reports.
A. Daily Activity.
Electronically maintain, based on the data input from any Approved
Institution, the following shareholder information as specified in system
documentation in such a manner as Agent shall determine in consultation
with the Fund or any Approved Institution, which at a minimum shall
include, but not be limited to:
1. Name and Address, including Zip Code,
2. Balance of Uncertificated Shares,
3. Balance of dollars available for redemption,
4. Dividend code (daily accrual, monthly reinvest or quarterly
reinvest, monthly cash or quarterly cash),
5. Dividends paid,
6. Capital gains paid,
7. Type of account code,
8. Establishment date indicating the date an account was opened
carrying forward pre-conversion data as available.
9. Original establishment date for accounts opened by exchange,
10. Withholding amounts,
11. W-9 withholding status and periodic reporting,
12. State of residence code,
13. Social Security or taxpayer identification number, and
indication of certification,
14. Historical transactions on the account for the most recent 18
months, or other period as mutually agreed to in writing from
time to time,
15. Indication as to whether phone transactions can be accepted
for this account,
16. Beneficial owner code, i.e. male, female, joint tenant, etc.,
and
17. An alternate or ``secondary'' account number, issued by a
dealer (or bank, etc.) to a customer for use, inquiry and
transaction input by ``remote accessors''.
B. Functions.
1. Electronically process new accounts.
2. Electronically process purchases, exchanges, redemptions, and
liquidations.
3. Electronically process transfers of shares.
4. Electronically process address changes.
5. Electronically process standard account record changes as
required, i.e. Dividend Codes, etc.
6. Perform backup withholding for those accounts which federal
government regulations indicate is necessary. (Based on
Approved Institution input.)
7. Perform withholdings on liquidation and dividends, if
applicable. (Based on Approved Institution input.)
C. Reports Provided.
Daily Journals Reflecting all shares and dollar activity
(including trade executions, dividend and
capital gains distributions, account
records, and share pricing for the
previous day.
Blue Sky Report Supply information monthly for Fund's
preparation of Blue Sky Reporting.
N-SAR Report Supply redemption and liquidation
information for use in Fund's N-SAR
Report.
Additionally, the reports listed in Agent's DST Reports Manual will
be provided at the Fund's request to the Fund at no charge.
Prepare and mail copies of summary statements to dealers and
investment advisers.
Generate and mail confirmation statements for financial
transactions.
D. Dividend Activity.
1. Reinvest, pay cash or automatically deposit in a shareholder's bank
account, including reinvesting in other funds within the fund group
serviced by Agent as described in the prospectus.
2. Distribute capital gains simultaneously with income dividends.
E. Dealer Services.
1. Prepare and mail confirmation statements to dealers daily.
2. Prepare and mail copies of statements to dealers, with the same
frequency as periodic statements to investors.
F. Annual Meetings.
1. One Proxy mailing per year for each series of the Fund.
2. Assist Fund in obtaining a qualified service to: address and mail
proxies and related material, tabulate returned proxies and supply
daily reports when sufficient proxies have been received.
3. Prepare certified list of stockholders, hard copy or electronic
media.
G. Periodic Activities.
1. Mail transaction confirmation statements daily to investors.
2. Address and mail periodic financial reports at the request of the
Fund (material must be adaptable to Agent's mechanical equipment as
reasonably specified by Agent).
3. Mail periodic statements to investors at the request of the Fund.
4. Based on information provided by the Trust or its agent, compute,
prepare and furnish all necessary reports to Governmental
authorities including but not limited to: Forms 1099DIV, 1099B,
1099R, 1042, 1042S and 5498.
5. Enclose various marketing materials as designated by the Fund or an
Approved Institution in statement mailings, i.e. monthly and
quarterly statements (materials must be adaptable to mechanical
equipment as reasonably specified by Agent).
H. Financial Control Functions.
1. Recap Share Activity - Provide Approved Institution with periodic
and final daily share activity and total outstanding share
information.
2. Tax Withholding Money Movement - Collect daily money withheld by
Approved Institution from redemptions and dividends and deposit
with the IRS according to the appropriate IRS regulations.
3. Price Input - Receive daily prices and rates from fund accountant
and enter into DST. Also receive periodic distribution details
(dividend, capital gains) and enter into DST.
4. Tax Reporting - Supply data to IRS and shareholders in accordance
with IRS regulations (1099DIV, 1099B, 1042S, 5498, 1099R).
5. Distribution Reconciliation.
a. Equity Funds - Compare shares outstanding on Record Date
multiplied by dividend/capital gain rate to the sum of cash
dividends plus reinvested dividends plus withholding plus Non-
resident alien taxes. Approved Institution will be
responsible for researching and resolving these items.
b. Daily Accrual Funds - Compile list of each day's daily
dividend accrued and compare to total distribution at end of
distribution period. Approved Institution will be responsible
for researching and resolving these items.
6. Filing Balancing
a. Certificate File - Compare detail certificate history in each
account to certificate total in each account's master file.
b. History File - Compare each transaction in shareholder's
history to the master account share balanced for each account.
7. Help Desk - Supply Approved Institution with assistance in
identifying and correcting DST problems encountered by users.
8. Daily Confirm Printing/Mailing - All financial transactions
processed will generate a confirmation statement in Agent Output
Control area after each day's close. These statements are
available for Agent to insert into fund specific or generic Agent
envelopes, after which time they are mailed. Separate
confirmations may be generated for the shareholder, broker/dealer,
and third or fourth parties, at the Fund's discretion.
9. Check Printing/Mailing - Disbursement checks for redemptions,
dividends, and capital gains are printed at Agent and mailed to the
appropriate parties.
10. Tax Form Production - 1099DIV, 1099B, 1099R, 1042S, B Notices, C
Notices, and 5498 (for retirement accounts) tax forms are generated
annually as required. These also are printed and mailed.
II.Recorded Maintained by Agent
A. Dividend and redemption checks including check registers,
reconciliation records, any adjustment records, but only to the
extent performed by Agent.
B. Electronic Federal tax records.
C. Computerized records maintained by Agent's computerized shareholder
recordkeeping system.
BOSTON FINANCIAL DATA SERVICES, INC.
By: /s/ Xxxxxxx Xxxxx
Name: Xxxxxxx Xxxxx
Title: Vice President
FEDERATED SERVICES COMPANY
By: /s/ Xxxxxxxx Xxxxxxxxxx
Name: Xxxxxxxx Xxxxxxxxxx
Title: Senior Vice President
FEDERATED MUNICIPAL TRUST
By: /s/ J. Xxxxxxxxxxx Xxxxxxx
Name: J. Xxxxxxxxxxx Xxxxxxx
Title: Executive Vice-President
