CUSTODY AGREEMENT
This AGREEMENT, dated as of November 27, 2002, by and between the Amstar
Investment Trust (the "Trust"), a business trust organized under the laws of the
State of Delaware, acting with respect to Amstar Value Fund, Amstar Total Return
Fund, Amstar International Equity Fund and Amstar High Yield Fund (individually
a "Fund" as a group the "Funds") each a series of the Trust and operated and
administered by the Trust, and US BANK, N.A., (the "Custodian").
W I T N E S S E T H:
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WHEREAS, the Trust desires that the Funds Securities and cash be held and
administered by the Custodian pursuant to this Agreement;
WHEREAS, the Trust is an open-end management investment company registered
under the Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, the Custodian represents that it is a bank having the
qualifications prescribed in Section 26(a)(i) of the 1940 Act.
NOW, THEREFORE, in consideration of the mutual agreements herein made, the
Trust and the Custodian hereby agree as follows:
ARTICLE I
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DEFINITIONS
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Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:
1.1 "Authorized Person" means any Officer or other person duly authorized
by resolution of the Board of Trustees to give Oral Instructions and Written
Instructions on behalf of the Funds and named in Exhibit A hereto or in such
resolutions of the Board of Trustees, certified by an Officer, as may be
received by the Custodian from time to time.
1.2 "Board of Trustees" shall mean the Trustees from time to time serving
under the Trust's Agreement and Declaration of Trust, as from time to time
amended.
1.3 "Book-Entry System" shall mean a federal book-entry system as provided
in
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Subpart O of Treasury Circular Xx. 000, 00 XXX 306, in Subpart B of 31 CFR Part
350, or in such book-entry regulations of federal agencies as are substantially
in the form of such Subpart O.
1.4 "Business Day" shall mean any day recognized as a settlement day by The
New York Stock Exchange, Inc. and any other day for which the Trust computes the
net asset value of Shares of the Funds.
1.5 "Fund Custody Account" shall mean any of the accounts in the name of
the Trust, which is provided for in Section 3.2 below.
1.6 "NASD" shall mean The National Association of Securities Dealers, Inc.
1.7 "Officer" shall mean the Chairman, President, any Vice President, any
Assistant Vice President, the Secretary, any Assistant Secretary, the Treasurer,
or any Assistant Treasurer of the Trust.
1.8 "Oral Instructions" shall mean instructions orally transmitted to
and accepted by the Custodian because such instructions are: (i) reasonably
believed by the Custodian to have been given by an Authorized Person, (ii)
recorded and kept among the records of the Custodian made in the ordinary course
of business; and (iii) orally confirmed by the Custodian. The Trust shall cause
all Oral Instructions to be confirmed by Written Instructions prior to the end
of the next Business Day. If such Written Instructions confirming Oral
Instructions are not received by the Custodian prior to a transaction, it shall
in no way affect the validity of the transaction or the authorization thereof by
the trust. If Oral Instructions vary from the Written Instructions, which
purport to confirm them, the Custodian shall notify the Trust of such variance
but such Oral Instructions will govern unless the Custodian has not yet acted.
1.9 "Proper Instructions" shall mean Oral Instructions or Written
Instructions. Proper Instructions may be continuing Written Instructions when
deemed appropriate by both parties.
1.10 "Securities Depository" shall mean The Depository Trust Company and
(provided that Custodian shall have received a copy of a resolution of the Board
of Trustees, certified by an Officer, specifically approving the use of such
clearing agency as a depository
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for the Funds) any other clearing agency registered with the Securities and
Exchange Commission under Section 17A of the Securities and Exchange Act of 1934
as amended (the "1934 Act"), which acts as a system for the central handling of
Securities where all Securities of any particular class or series of an issuer
deposited within the system are treated as fungible and may be transferred or
pledged by bookkeeping entry without physical delivery of the Securities.
1.11 "Securities" shall include, without limitation, common and preferred
stocks, bonds, call options, put options, debentures, notes, bank certificates
of deposit, bankers' acceptances, mortgage-backed securities or other
obligations, and any certificates, receipts, warrants or other instruments or
documents representing rights to receive, purchase or subscribe for the same, or
evidencing or representing any other rights or interests therein, or any similar
property or assets that the Custodian has the facilities to clear and to
service.
1.12 "Shares" shall mean, with respect to the Funds, the units of
beneficial interest issued by the Trust on account of the Funds.
1.13 "Sub-Custodian" shall mean and include (i) any branch of a "U.S.
Bank," as that term is defined in Rule 17f-5 under the 1940 Act, (ii) any
"Eligible Foreign Custodian," as that term is defined in Rule 17f-5 under the
1940 Act, having a contract with the Custodian which the Custodian has
determined will provide reasonable care of assets of the Funds based on the
standards specified in Section 3.3 below. Such contract shall include provisions
that provide: (i) for indemnification or insurance arrangements (or any
combination of the foregoing) such that the Funds will be adequately protected
against the risk of loss of assets held in accordance with such contract; (ii)
that the Funds assets will not be subject to any right, charge, security
interest, lien or claim of any kind in favor of the Sub-Custodian or its
creditors except a claim of payment for their safe custody or administration, in
the case of cash deposits, liens or rights in favor of creditors of the
Sub-Custodian arising under bankruptcy, insolvency, or similar laws; (iii) that
beneficial ownership for the Funds assets will be freely transferable without
the payment of money or value other than for safe custody or administration;
(iv) that adequate records will be maintained identifying the assets as
belonging to the Funds or as being held by a third party for the benefit of the
Funds; (v) that
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the Funds independent public accountants will be given access to those records
or confirmation of the contents of those records; and (vi) that the Funds will
receive periodic reports with respect to the safekeeping of the Funds assets,
including, but not limited to, notification of any transfer to or from the Funds
account or a third party account containing assets held for the benefit of the
Funds. Such contract may contain, in lieu of any or all of the provisions
specified above, such other provisions that the Custodian determines will
provide, in their entirety, the same or a greater level of care and protection
for Fund assets as the specified provisions, in their entirety.
1.14 "Written Instructions" shall mean (i) written communications
actually received by the Custodian and signed by an Authorized Person, or (ii)
communications by telex or any other such system from one or more persons
reasonably believed by the Custodian to be Authorized Persons, or (iii)
communications between electro-mechanical or electronic devices provided that
the use of such devices and the procedures for the use thereof shall have been
approved by resolutions of the Board of Trustees, a copy of which, certified by
an Officer, shall have been delivered to the Custodian.
ARTICLE II
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APPOINTMENT OF CUSTODIAN
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2.1 Appointment. The Trust hereby constitutes and appoints the Custodian as
custodian of all Securities and cash owned by or in the possession of the Funds
at any time during the period of this Agreement.
2.2 Acceptance. The Custodian hereby accepts appointment as such custodian
and agrees to perform the duties thereof as hereinafter set forth.
2.3 Documents to be Furnished. The following documents, including any
amendments thereto, will be provided contemporaneously with the execution of the
Agreement to the Custodian by the trust:
a. A copy of the Agreement and Declaration of Trust certified by the
Secretary;
b. A copy of the By-Laws of the Trust certified by the Secretary;
c. A copy of the resolution of the Board of Trustees of the Trust
appointing the Custodian, certified by the Secretary;
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d. A copy of the then current Prospectus of the Funds; and
e. A certification of the President and Secretary of the Trust setting
forth the names and signatures of the current Officers of the Trust
and other Authorized Persons.
2.4 Notice of Appointment of Dividend and Transfer Agent. The Trust agrees
to notify the Custodian in writing of the appointment, termination or change in
appointment of any Dividend and Transfer Agent of the Funds.
ARTICLE III
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CUSTODY OF CASH AND SECURITIES
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3.1 Segregation. All Securities and non-cash property held by the Custodian
for the account of the Funds (other than Securities maintained in a Securities
Depository or Book-Entry System) shall be physically segregated from other
Securities and non-cash property in the possession of the Custodian and shall be
identified as subject to this Agreement.
3.2 Fund Custody Accounts. As to the Funds, the Custodian shall open and
maintain in its trust department a custody account in the name of the Trust
coupled with the name of the respective Fund, subject only to draft or order of
the Custodian, in which the Custodian shall enter and carry all Securities, cash
and other assets of such Fund which are delivered to it.
3.3 Appointment of Agents. (a) In its discretion, the Custodian may appoint
one or more Sub-Custodians to act as Securities Depositories or as
sub-custodians to hold Securities and cash of a Fund and to carry out such other
provisions of this Agreement as it may determine, provided, however, that the
appointment of any such agents and maintenance of any Securities and cash of a
Fund shall be at the Custodian's expense and shall not relieve the Custodian of
any of its obligations or liabilities under this Agreement.
(b) If, after the initial approval of Sub-Custodians by the Board of
Trustees in connection with this Agreement, the Custodian wishes to appoint
other Sub-Custodians to hold property of a Fund, it will so notify the Trust and
provide it with information reasonably necessary to determine any such new
Sub-Custodian's eligibility under Rule 17f-5 under the 1940 Act, including a
copy of the proposed agreement with such Sub-Custodian. The Trust shall at the
meeting of the Board of Trustees next following receipt of such notice and
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information give a written approval or disapproval of the proposed action.
(c) The Agreement between the Custodian and each Sub-Custodian acting
hereunder shall contain the required provisions set forth in Rule
17f-5(a)(1)(iii).
(d) At the end of each calendar quarter, the Custodian shall provide
written reports notifying the Board of Trustees of the placement of the
Securities and cash of a Fund with a particular Sub-Custodian and of any
material changes in a Fund's arrangements. The Custodian shall promptly take
such steps as may be required to withdraw assets of a Fund from any
Sub-Custodian that has ceased to meet the requirements of Rule 17f-5 under the
1940 Act.
(e) With respect to its responsibilities under this Section 3.3, the
Custodian hereby warrants to the Trust that it agrees to exercise reasonable
care, prudence, and diligence such as a person having responsibility for the
safekeeping of property of the Funds. The Custodian further warrants that the
Funds assets will be subject to reasonable care, based on the standards
applicable to custodians in the relevant market, if maintained with each
Sub-Custodian, after considering all factors relevant to the safekeeping of such
assets, including, without limitation: (i) the Sub-Custodian's practices,
procedures, and internal controls, for certificated securities (if applicable),
the method of keeping custodial records, and the security and data protection
practices; (ii) whether the Sub-Custodian has the requisite financial strength
to provide reasonable care for Fund assets; (iii) the Sub-Custodian's general
reputation and standing and, in the case of a Securities Depository, the
Securities Depository's operating history and number of participants; and (iv)
whether the Funds will have jurisdiction over and be able to enforce judgments
against the Sub-Custodian, such as by virtue of the existence of any offices of
the Sub-Custodian in the United States or the Sub-Custodian's consent to service
of process in the United States.
(f) The Custodian shall establish a system to monitor the appropriateness
of maintaining the Funds assets with a particular Sub-Custodian and the contract
governing the Funds arrangements with such Sub-Custodian.
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3.4 Delivery of Assets to Custodian. The Trust shall deliver, or cause to
be delivered, to the Custodian all of the Funds Securities, cash and other
assets, including (a) all payments of income, payments of principal and capital
distributions received by the Funds with respect to such Securities, cash or
other assets owned by the Funds at any time during the period of this Agreement,
and (b) all cash received by the Funds for the issuance, at any time during such
period, of Shares. The Custodian shall not be responsible for such Securities,
cash, or other assets until actually received by it.
3.5 Securities Depositories and Book-Entry Systems. The Custodian may
deposit and/or maintain Securities of the Funds in a Securities Depository or in
a Book-Entry System, subject to the following provisions:
(a) Prior to a deposit of Securities of the Funds in any Securities
Depository or Book-Entry System, the Trust shall deliver to the Custodian a
resolution of the Board of Trustees, certified by an Officer, authorizing and
instructing the Custodian on an on-going basis to deposit in such Securities
Depository or Book-Entry System all Securities eligible for deposit therein and
to make use of such Securities Depository or Book-Entry System to the extent
possible and practical in connection with its performance hereunder, including,
without limitation, in connection with settlements of purchases and sales of
Securities, loans of Securities, and deliveries and returns of collateral
consisting of Securities.
(b) Securities of the Funds kept in a Book-Entry System or Securities
Depository shall be kept in an account ("Depository Account") of the Custodian
in such Book-Entry System or Securities Depository which includes only assets
held by the Custodian as a fiduciary, custodian or otherwise for customers.
(c) The records of the Custodian with respect to Securities of the Funds
maintained in a Book-Entry System or Securities Depository shall, by book-entry,
identify such Securities as belonging to such Fund.
(d) If Securities purchased by the Funds are to be held in a Book-Entry
System or Securities Depository, the Custodian shall pay for such Securities
upon (i) receipt of advice from the Book-Entry System or Securities Depository
that such Securities have been transferred to the Depository Account, and (ii)
the making of an entry on the records of the Custodian to reflect such payment
and transfer for the account of such Fund. If Securities sold by the Funds are
held in a Book-Entry System or Securities Depository, the Custodian shall
transfer such Securities upon (i) receipt of advice from the Book-Entry System
or Securities Depository that payment for such Securities has been transferred
to the Depository Account, and (ii) the making of an entry on the records of the
Custodian to reflect such
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transfer and payment for the account of such Fund.
(e) The Custodian shall provide the Trust with copies of any report
(obtained by the Custodian from a Book-Entry System or Securities Depository in
which Securities of the Funds are kept) on the internal accounting controls and
procedures for safeguarding Securities deposited in such Book-Entry System or
Securities Depository.
(f) Anything to the contrary in this Agreement notwithstanding, the
Custodian shall be liable to the Trust for any loss or damage to the Funds
resulting (i) from the use of a Book-Entry System or Securities Depository by
reason of any negligence or willful misconduct on the part of the Custodian or
any Sub-Custodian appointed pursuant to Section 3.3 above or any of its or their
employees, or (ii) from failure of the Custodian or any such Sub-Custodian to
enforce effectively such rights as it may have against a Book-Entry System or
Securities Depository. At its election, the Trust shall be subrogated to the
rights of the Custodian with respect to any claim against a Book-Entry System or
Securities Depository or any other person from any loss or damage to the Funds
arising from the use of such Book-Entry System or Securities Depository, if and
to the extent that the Funds have not been made whole for any such loss or
damage.
3.6 Disbursement of Moneys from Fund Custody Account. Upon receipt of
Proper Instructions, the Custodian shall disburse moneys from the Funds Custody
Account but only in the following cases:
(a) For the purchase of Securities for the Funds but only in accordance
with Section 4.1 of this Agreement and only (i) in the case of Securities (other
than options on Securities, futures contracts and options on futures contracts),
against the delivery to the Custodian (or any Sub-Custodian appointed pursuant
to Section 3.3 above) of such Securities registered as provided in Section 3.9
below or in proper form for transfer, or if the purchase of such Securities is
effected through a Book-Entry System or Securities Depository, in accordance
with the conditions set forth in Section 3.5 above; (ii) in the case of options
on Securities, against delivery to the Custodian (or such Sub-Custodian) of such
receipts as are required by the customs prevailing among dealers in such
options; (iii) in the case of futures contracts and options on futures
contracts, against delivery to the Custodian (or such Sub-Custodian) of evidence
of title thereto in favor of the Funds or any nominee referred to in Section 3.9
below; and (iv) in the case of repurchase or reverse repurchase agreements
entered into between the Trust and a bank which is a member of the Federal
Reserve System or between the Trust and a primary dealer in U.S. Government
securities, against delivery of the
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purchased Securities either in certificate form or through an entry crediting
the Custodian's account at a Book-Entry System or Securities Depository with
such Securities;
(b) In connection with the conversion, exchange or surrender, as set forth
in Section 3.7,
(c) For the payment of any dividends or capital gain distributions declared
by the Funds;
(d) In payment of the redemption price of Shares as provided in Section 5.1
below;
(e) For the payment of any expense or liability incurred by the Funds,
including but not limited to the following payments for the account of the
Funds: interest; taxes; administration, investment advisory, accounting,
auditing, transfer agent, custodian, trustee and legal fees; and other operating
expenses of the Funds; in all cases, whether or not such expenses are to be in
whole or in part capitalized or treated as deferred expenses;
(f) For transfer in accordance with the provisions of any agreement among
the Trust, the Custodian and a broker-dealer registered under the 1934 Act and a
member of the NASD, relating to compliance with rules of The Options Clearing
Corporation and of any registered national securities exchange (or of any
similar organization or organizations) regarding escrow or other arrangements in
connection with transactions by the Funds;
(g) For transfer in accordance with the provision of any agreement among
the Trust, the Custodian, and a futures commission merchant registered under the
Commodity Exchange Act, relating to compliance with the rules of the Commodity
Futures Trading Commission and/or any contract market (or any similar
organization or organizations) regarding account deposits in connection with
transactions by the Funds;
(h) For the funding of any uncertificated time deposit or other
interest-bearing account with any banking institution (including the Custodian),
which deposit or account has a term of one year or less; and
(i) For any other proper purpose, but only upon receipt, in addition to
Proper Instructions, of a copy of a resolution of the Board of Trustees,
certified by an Officer, specifying the amount and purpose of such payment,
declaring such purpose to be a proper corporate purpose, and naming the person
or persons to whom such payment is to be made.
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3.7 Delivery of Securities from Fund Custody Account. Upon receipt of
Proper Instructions, the Custodian shall release and deliver Securities from the
Funds Custody Account but only in the following cases:
(a) Upon the sale of Securities for the account of a Fund but only against
receipt of payment therefor in cash, by certified or cashiers check or bank
credit;
(b) In the case of a sale effected through a Book-Entry System or
Securities Depository, in accordance with the provisions of Section 3.5 above;
(c) To an offeror's depository agent in connection with tender or other
similar offers for Securities of the Funds; provided that, in any such case, the
cash or other consideration is to be delivered to the Custodian;
(d) To the issuer thereof or its agent (i) for transfer into the name of
the Funds, the Custodian or any Sub-Custodian appointed pursuant to Section 3.3
above, or of any nominee or nominees of any of the foregoing, or (ii) for
exchange for a different number of certificates or other evidence representing
the same aggregate face amount or number of units; provided that, in any such
case, the new Securities are to be delivered to the Custodian;
(e) To the broker selling Securities, for examination in accordance with
the "street delivery" custom;
(f) For exchange or conversion pursuant to any plan or merger,
consolidation, recapitalization, reorganization or readjustment of the issuer of
such Securities, or pursuant to provisions for conversion contained in such
Securities, or pursuant to any deposit agreement, including surrender or receipt
of underlying Securities in connection with the issuance or cancellation of
depository receipts; provided that, in any such case, the new Securities and
cash, if any, are to be delivered to the Custodian;
(g) Upon receipt of payment therefor pursuant to any repurchase or reverse
repurchase agreement entered into by the Funds;
(h) In the case of warrants, rights or similar Securities, upon the
exercise thereof, provided that, in any such case, the new Securities, and cash,
if any, are to be delivered to the Custodian;
(i) For delivery in connection with any loans of Securities of the Funds,
but only against receipt of such collateral as the Trust shall have specified to
the Custodian in Proper Instructions;
(j) For delivery as security in connection with any borrowings by the Funds
requiring a pledge of assets by the Trust, but only against receipt by the
Custodian of the amounts borrowed;
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(k) Pursuant to any authorized plan of liquidation, reorganization, merger,
consolidation or recapitalization of the Trust;
(l) For delivery in accordance with the provisions of any agreement among
the Trust, the Custodian and a broker-dealer registered under the 1934 Act and a
member of the NASD, relating to compliance with the rules of The Options
Clearing Corporation and of any registered national securities exchange (or of
any similar organization or organizations) regarding escrow or other
arrangements in connection with transactions by the Funds;
(m) For delivery in accordance with the provisions of any agreement among
the Trust, the Custodian, and a futures commission merchant registered under the
Commodity Exchange Act, relating to compliance with the rules of the Commodity
Futures Trading Commission and/or any contract market (or any similar
organization or organizations) regarding account deposits in connection with
transactions by the Funds; or
(n) For any other proper corporate purpose, but only upon receipt, in
addition to Proper Instructions, of a copy of a resolution of the Board of
Trustees, certified by an Officer, specifying the Securities to be delivered,
setting forth the purpose for which such delivery is to be made, declaring such
purpose to be a proper corporate purpose, and naming the person or persons to
whom delivery of such Securities shall be made.
3.8 Actions Not Requiring Proper Instructions. Unless otherwise instructed
by the Trust, the Custodian shall with respect to all Securities held for the
Funds:
(a) Subject to Section 7.4 below, collect on a timely basis all income and
other payments to which the Funds are entitled either by law or pursuant to
custom in the securities business;
(b) Present for payment and, subject to Section 7.4 below, collect on a
timely basis the amount payable upon all Securities which may mature or be
called, redeemed, or retired, or otherwise become payable;
(c) Endorse for collection, in the name of the Funds, checks, drafts and
other negotiable instruments;
(d) Surrender interim receipts or Securities in temporary form for
Securities in definitive form;
(e) Execute, as custodian, any necessary declarations or certificates of
ownership under the federal income tax laws or the laws or regulations of any
other taxing authority now or hereafter in effect, and prepare and submit
reports to the Internal Revenue Service ("IRS") and to the Trust at such time,
in such manner and containing such information as is prescribed by the IRS;
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(f) Hold for the Funds, either directly or, with respect to Securities held
therein, through a Book-Entry System or Securities Depository, all rights and
similar securities issued with respect to Securities of the Funds; and
(g) In general, and except as otherwise directed in Proper Instructions,
attend to all non-discretionary details in connection with the sale, exchange,
substitution, purchase, transfer and other dealings with Securities and assets
of the Funds.
3.9 Registration and Transfer of Securities. All Securities held for the
Funds that are issued or issuable only in bearer form shall be held by the
Custodian in that form, provided that any such Securities shall be held in a
Book-Entry System if eligible therefor. All other Securities held for the Funds
may be registered in the name of such Fund, the Custodian, or any Sub-Custodian
appointed pursuant to Section 3.3 above, or in the name of any nominee of any of
them, or in the name of a Book-Entry System, Securities Depository or any
nominee of either thereof. The Trust shall furnish to the Custodian appropriate
instruments to enable the Custodian to hold or deliver in proper form for
transfer, or to register in the name of any of the nominees hereinabove referred
to or in the name of a Book-Entry System or Securities Depository, any
Securities registered in the name of the Funds.
3.10 RECORDS. (a) The Custodian shall maintain, complete and accurate
records with respect to Securities, cash or other property held for the Funds,
including (i) journals or other records of original entry containing an itemized
daily record in detail of all receipts and deliveries of Securities and all
receipts and disbursements of cash; (ii) ledgers (or other records) reflecting
(A) Securities in transfer, (B) Securities in physical possession, (C) monies
and Securities borrowed and monies and Securities loaned (together with a record
of the collateral therefor and substitutions of such collateral), (D) dividends
and interest received, and (E) dividends receivable and interest receivable; and
(iii) canceled checks and bank records related thereto. The Custodian shall keep
such other books and records of the Funds as the Trust shall reasonably request,
or as may be required by the 1940 Act, including, but not limited to, Section 31
of the 1940 Act and Rule 31a-2 promulgated thereunder. (b) All such books and
records maintained by the Custodian shall (i) be maintained in a form acceptable
to the Trust and in compliance with rules and regulations of the Securities and
Exchange Commission, (ii) be the property of the Trust and at all times during
the regular business hours of the Custodian be made available upon request for
inspection by duly authorized officers, employees or agents of the Trust and
employees or agents of the Securities and Exchange Commission, and (iii) if
required to be maintained by Rule 31a-1 under the 1940 Act, be preserved for the
periods prescribed in Rule 31a-2 under the 1940 Act.
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3.11 Fund Reports by Custodian. The Custodian shall furnish the Trust with
a daily activity statement and a summary of all transfers to or from each Fund
Custody Account on the day following such transfers. At least monthly and from
time to time, the Custodian shall furnish the Trust with a detailed statement of
the Securities and moneys held by the Custodian and the Sub-Custodians for the
Funds under this Agreement.
3.12 Other Reports by Custodian. The Custodian shall provide the Trust with
such reports, as the Trust may reasonably request from time to time, on the
internal accounting controls and procedures for safeguarding Securities, which
are employed by the Custodian or any Sub-Custodian appointed pursuant to Section
3.3 above.
3.13 Proxies and Other Materials. The Custodian shall cause all proxies
relating to Securities which are not registered in the name of the Funds, to be
promptly executed by the registered holder of such Securities, without
indication of the manner in which such proxies are to be voted, and shall
promptly deliver to the Trust such proxies, all proxy soliciting materials and
all notices relating to such Securities.
3.14 Information on Corporate Actions.
The Custodian shall promptly deliver to the Trust all information received by
the Custodian and pertaining to Securities being held by the Funds with respect
to optional tender or exchange offers, calls for redemption or purchase, or
expiration of rights as described in the Standards of Service Guide attached as
Exhibit B. If the Trust desires to take action with respect to any tender offer,
exchange offer or other similar transaction, the Trust shall notify the
Custodian at least five Business Days prior to the date on which the Custodian
is to take such action. The Trust will provide or cause to be provided to the
Custodian all relevant information for any Security which has unique put/option
provisions at least five Business Days prior to the beginning date of the tender
period.
ARTICLE IV
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PURCHASE AND SALE OF INVESTMENTS OF THE FUNDS
---------------------------------------------
4.1 Purchase of Securities. Promptly upon each purchase of Securities for
the Funds, Written Instructions shall be delivered to the Custodian, specifying
(a) the name of the issuer or writer of such Securities, and the title or other
description thereof, (b) the number of shares, principal amount (and accrued
interest, if any) or other units purchased, (c) the date of purchase and
settlement, (d) the purchase price per unit, (e) the total amount payable upon
such purchase, and (f) the name of the person to whom such amount is payable.
The Custodian shall upon receipt of such Securities purchased by the Funds pay
out of the moneys held for the account of the Funds the total amount specified
in such Written Instructions to the
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person named therein. The Custodian shall not be under any obligation to pay out
moneys to cover the cost of a purchase of Securities for the Funds, if in the
Funds Custody Account there is insufficient cash available to the Funds for
which such purchase was made.
4.2 Liability for Payment in Advance of Receipt of Securities Purchased. In
any and every case where payment for the purchase of Securities for the Funds is
made by the Custodian in advance of receipt of the Securities purchased but in
the absence of specified Written Instructions to so pay in advance, the
Custodian shall be liable to the Funds for such Securities to the same extent as
if the Securities had been received by the Custodian.
4.3 Sale of Securities. Promptly upon each sale of Securities by the Funds,
Written Instructions shall be delivered to the Custodian, specifying (a) the
name of the issuer or writer of such Securities, and the title or other
description thereof, (b) the number of shares, principal amount (and accrued
interest, if any), or other units sold, (c) the date of sale and settlement, (d)
the sale price per unit, (e) the total amount payable upon such sale, and (f)
the person to whom such Securities are to be delivered. Upon receipt of the
total amount payable to the Funds as specified in such Written Instructions, the
Custodian shall deliver such Securities to the person specified in such Written
Instructions. Subject to the foregoing, the Custodian may accept payment in such
form as shall be satisfactory to it, and may deliver Securities and arrange for
payment in accordance with the customs prevailing among dealers in Securities.
4.4 Delivery of Securities Sold. Notwithstanding Section 4.3 above or any
other provision of this Agreement, the Custodian, when instructed to deliver
Securities against payment, shall be entitled, if in accordance with generally
accepted market practice, to deliver such Securities prior to actual receipt of
final payment therefor. In any such case, the Funds shall bear the risk that
final payment for such Securities may not be made or that such Securities may be
returned or otherwise held or disposed of by or through the person to whom they
were delivered, and the Custodian shall have no liability for any for the
foregoing.
4.5 Payment for Securities Sold, etc. In its sole discretion and from time
to time, the Custodian may credit the Funds Custody Account, prior to actual
receipt of final payment thereof, with (i) proceeds from the sale of Securities
which it has been instructed to deliver against payment, (ii) proceeds from the
redemption of Securities or other assets of the Funds, and (iii) income from
cash, Securities or other assets of the Funds. Any such credit shall be
conditional upon actual receipt by the Custodian of final payment and may be
reversed if final payment is not actually received in full. The Custodian may,
in its sole
14
discretion and from time to time, permit the Funds to use funds so credited to
the Funds Custody Account in anticipation of actual receipt of final payment.
Any such funds shall be repayable immediately upon demand made by the Custodian
at any time prior to the actual receipt of all final payments in anticipation of
which funds were credited to the Funds Custody Account.
4.6
Advances by Custodian for Settlement. The Custodian may, in its sole discretion
and from time to time, advance funds to the Trust to facilitate the settlement
of a Fund's transactions in the Fund's Custody Account. Any such advance shall
be repayable immediately upon demand made by Custodian.
ARTICLE V
---------
REDEMPTION OF FUND SHARES
-------------------------
5.1 Transfer of Funds. From such funds as may be available for the purpose
in the relevant Fund Custody Account, and upon receipt of Proper Instructions
specifying that the Fundss are required to redeem Shares of the Funds, the
Custodian shall wire each amount specified in such Proper Instructions to or
through such bank as the Trust may designate with respect to such amount in such
Proper Instructions.
5.2 No Duty Regarding Paying Banks. The Custodian shall not be under any
obligation to effect payment or distribution by any bank designated in Proper
Instructions given pursuant to Section 5.1 above of any amount paid by the
Custodian to such bank in accordance with such Proper Instructions.
ARTICLE VI
----------
SEGREGATED ACCOUNTS
-------------------
Upon receipt of Proper Instructions, the Custodian shall establish and
maintain a segregated account or accounts for and on behalf of the Funds, into
which account or accounts may be transferred cash and/or Securities, including
Securities maintained in a Depository Account,
(a) In accordance with the provisions of any agreement among the Trust, the
Custodian and a broker-dealer registered under the 1934 Act and a member of the
NASD (or any futures commission merchant registered under the Commodity Exchange
Act), relating to compliance with the rules of The Options Clearing Trust and of
any registered national securities exchange (or the Commodity Futures Trading
Commission or any registered contract market), or of any similar organization or
organizations, regarding escrow or other arrangements in connection with
transactions by the Funds,
(b) For purposes of
segregating cash or Securities in connection with securities
15
options purchased or written by the Funds or in connection with financial
futures contracts (or options thereon) purchased or sold by the Funds, which
constitute collateral for loans of Securities made by the Funds,
(c) For purposes of compliance by the Funds with requirements under the
1940 Act for the maintenance of segregated accounts by registered investment
companies in connection with reverse repurchase agreements and when-issued,
delayed delivery and firm commitment transactions, and
(d) For other proper corporate purposes, but only upon receipt of, in
addition to Proper Instructions, a certified copy of a resolution of the Board
of Trustees, certified by an Officer, setting forth the purpose or purposes of
such segregated account and declaring such purposes to be proper corporate
purposes. Each segregated account established under this Article VI shall be
established and maintained for a single Fund only. All Proper Instructions
relating to a segregated account shall specify the Funds involved.
ARTICLE VII
-----------
CONCERNING THE CUSTODIAN
------------------------
7.1 Standard of Care. The Custodian shall use its best efforts and shall
act in good faith in carrying out its obligations under this Agreement, and
shall be without liability to the Trust or the Funds for any loss, damage, cost,
expense (including attorneys' fees and disbursements), liability or claim unless
such loss, damage, cost, expense, liability or claim arises from negligence, bad
faith or willful misconduct on its part or on the part of any Sub-Custodian
appointed pursuant to Section 3.3 above. The Custodian shall be entitled to rely
on and may act upon advice of counsel on all matters, and shall be without
liability (except in the case of negligence, bad faith or willful misconduct)
for any action reasonably taken or omitted pursuant to such advice. The
Custodian shall promptly notify the Trust of any action taken or omitted by the
Custodian pursuant to advice of counsel. The Custodian shall not be under any
obligation at any time to ascertain whether the Trust or the Funds is in
compliance with the 1940 Act, the regulations thereunder, the provisions of the
Trust's charter documents or By-Laws, or its investment objectives and policies
as then in effect.
7.2 Actual Collection Required. The Custodian shall not be liable for, or
considered to be the custodian of, any cash belonging to the Funds or any money
represented by a check, draft or other instrument for the payment of money,
until the Custodian or its agents actually receive such cash or collect on such
instrument.
7.3 No
Responsibility for Title, etc. So long as and to the extent that it is in the
exercise of reasonable care, the Custodian shall not be responsible for the
title, validity or
16
genuineness of any property or evidence of title thereto received or delivered
by it pursuant to this Agreement.
7.4 Limitation on Duty to Collect. Custodian shall not be required to
enforce collection, by legal means or otherwise, of any money or property due
and payable with respect to Securities held for the Funds if such Securities are
in default or payment is not made after due demand or presentation.
7.5 Reliance Upon Documents and Instructions. The Custodian shall be
entitled to rely upon any certificate, notice or other instrument in writing
received by it and reasonably believed by it to be genuine. The Custodian shall
be entitled to rely upon any Oral Instructions and any Written Instructions
actually received by it pursuant to this Agreement.
7.6 Express Duties Only. The Custodian shall have no duties or obligations
whatsoever except such duties and obligations as are specifically set forth in
this Agreement, and no covenant or obligation shall be implied in this Agreement
against the Custodian.
7.7 Co-operation. The Custodian shall cooperate with and supply necessary
information to the entity or entities appointed by the Trust to keep the books
of account of the Funds and/or compute the value of the assets of the Funds. The
Custodian shall take all such reasonable actions as the Trust may from time to
time request to enable the Trust to obtain, from year to year, favorable
opinions from the Trust's independent accountants with respect to the
Custodian's activities hereunder in connection with (a) the preparation of the
Trust's reports on Form N-1A and Form N-SAR and any other reports required by
the Securities and Exchange Commission, and (b) the fulfillment by the Trust of
any other requirements of the Securities and Exchange Commission.
ARTICLE VIII
------------
INDEMNIFICATION
---------------
8.1 Indemnification by
Trust. The Trust shall indemnify and hold harmless the Custodian and any
Sub-Custodian appointed pursuant to Section 3.3 above, and any nominee of the
Custodian or of such Sub-Custodian, from and against any loss, damage, cost,
expense (including attorneys' fees and disbursements), liability (including,
without limitation, liability arising under the Securities Act of 1933, the 1934
Act, the 1940 Act, and any state or foreign securities and/or banking laws) or
claim arising directly or indirectly (a) from the fact that Securities are
registered in the name of any such nominee, or (b) from any action or inaction
by the Custodian or such Sub-Custodian (i) at the request or direction of or in
reliance on the advice of the Trust, or (ii) upon Proper Instructions, or (c)
generally, from the performance of its obligations under this Agreement or any
sub-custody agreement with a Sub-Custodian
17
appointed pursuant to Section 3.3 above, provided that neither the Custodian nor
any such Sub-Custodian shall be indemnified and held harmless from and against
any such loss, damage, cost, expense, liability or claim arising from the
Custodian's or such Sub-Custodian's negligence, bad faith or willful misconduct.
The indemnification herein shall survive the termination of this agreement.
8.2 Indemnification by Custodian. The Custodian shall indemnify and hold
harmless the Trust from and against any loss, damage, cost, expense (including
attorneys' fees and disbursements), liability (including without limitation,
liability arising under the Securities Act of 1933, the 1934 Act, the 1940 Act,
and any state or foreign securities and/or banking laws) or claim arising from
the negligence, bad faith or willful misconduct of the Custodian or any
Sub-Custodian appointed pursuant to Section 3.3 above, or any nominee of the
Custodian or of such Sub-Custodian. The indemnification provided for herein
shall survive the termination of this agreement.
8.3 Indemnity to be Provided. If the Trust requests the Custodian to take
any action with respect to Securities, which may, in the opinion of the
Custodian, result in the Custodian or its nominee becoming liable for the
payment of money or incurring liability of some other form, the Custodian shall
not be required to take such action until the Trust shall have provided
indemnity therefor to the Custodian in an amount and form satisfactory to the
Custodian.
8.4 Security. If the Custodian advances cash or Securities to the Funds for
any purpose, either at the Trust's request or as otherwise contemplated in this
Agreement, or in the event that the Custodian or its nominee incurs, in
connection with its performance under this Agreement, any loss, damage, cost,
expense (including attorneys' fees and disbursements), liability or claim
(except such as may arise from its or its nominee's negligence, bad faith or
willful misconduct), then, in any such event, any property at any time held for
the account of such Fund shall be security therefor, and should the Funds fail
promptly to repay or indemnify the Custodian, the Custodian shall be entitled to
utilize available cash of the Funds and to dispose of other assets of the Funds
to the extent necessary to obtain reimbursement or indemnification.
ARTICLE IX
----------
COMPLIANCE WITH RULE 17F-7
--------------------------
9.1 The Custodian shall, for consideration by the Trust, provide an
analysis in accordance with Rule 17f-7(a)(1)(i)(A) under the 1940 Act of the
risks associated with maintaining the Funds's foreign assets with each
Securities Depository used by the Custodian
18
as of the date hereof (or , in the case of a Securities Depository not used by
the Custodian as of the date hereof, prior to the initial placement of the
Funds's foreign assets at such Securities Depository) and at which any foreign
asset of the Funds are held or are expected to be held. The Custodian will also
inform the Trust whether holding assets in a particular Securities Depository is
voluntary or compulsory. In connection with the foregoing, the Trust shall
notify the Custodian of any Securities Depositories at which it does not choose
to have its foreign assets held. The Custodian shall monitor the custody risks
associated with maintaining the Funds's foreign assets at each such Securities
Depository on a continuing basis and shall promptly notify the Trust or its
adviser of any material changes in such risks.
9.2 The Custodian shall exercise such reasonable care, prudence and
diligence in performing the requirements of Rule 17f-7 under the 1940 Act or, as
applicable, in selecting a sub-custodian that will perform the requirements of
Rule 17f-7, as a professional custodian having responsibility for safekeeping of
foreign assets or delegating such function to a sub-custodian would exercise.
9.3 Based on the information available to it in the exercise of reasonable
care, prudence, and diligence, the Custodian or its designated sub-custodian
shall determine the eligibility under Rule 17f-7 of each depository and shall
promptly advise the Trust if any such depository ceases to be eligible.
ARTICLE X FORCE
---------------
MAJEURE; DISASTER RECOVERY SYSTEMS
----------------------------------
10.1 Force Majeure. Neither the Custodian nor the Trust shall be liable for
any failure or delay in performance of its obligations under this Agreement
arising out of or caused, directly or indirectly, by circumstances beyond its
reasonable control, including, without limitation, acts of God; earthquakes;
fires; floods; wars; civil or military disturbances; sabotage; strikes;
epidemics; riots; power failures; computer failure and any such circumstances
beyond its reasonable control as may cause interruption, loss or malfunction of
utility, transportation, computer (hardware or software) or telephone
communication service; accidents; labor disputes; acts of civil or military
authority; governmental actions; or inability to obtain labor, material,
equipment or transportation; provided, however, that the Custodian in the event
of a failure or delay (i) shall not discriminate against the Funds in favor of
any other customer of the Custodian in making computer time and personnel
available to input or process the transactions contemplated by this Agreement
and (ii) shall use its best efforts to ameliorate the effects of any such
failure or delay.
10.2 Disaster Recovery Systems. The Custodian shall maintain a disaster
recovery
19
plan and procedures including provisions for emergency use of electronic data
processing equipment, which is reasonable in light of the services to be
provided. The Custodian shall, at no additional expense to the Funds take
reasonable steps to minimize service interruptions. The Custodian shall have no
liability with respect to the loss of data or service interruptions caused by
equipment failure, provided it maintains such plans and procedures.
ARTICLE XI
----------
EFFECTIVE PERIOD; TERMINATION
-----------------------------
11.1 Effective Period. This Agreement shall become effective as of its
execution or when the Funds commence operations and shall continue in full force
and effect until terminated as hereinafter provided.
11.2 Termination. Either party hereto may terminate this Agreement by
giving to the other party a notice in writing specifying the date of such
termination, which shall be not less than sixty (60) days after the date of the
giving of such notice. If a successor custodian shall have been appointed by the
Board of Trustees, the Custodian shall, upon receipt of a notice of acceptance
by the successor custodian, on such specified date of termination (a) deliver
directly to the successor custodian all Securities (other than Securities held
in a Book-Entry System or Securities Depository) and cash then owned by the
Funds and held by the Custodian as custodian, and (b) transfer any Securities
held in a Book-Entry System or Securities Depository to an account of or for the
benefit of the Funds at the successor custodian, provided that the Trust shall
have paid to the Custodian all fees, expenses and other amounts to the payment
or reimbursement of which it shall then be entitled. Upon such delivery and
transfer, the Custodian shall be relieved of all obligations under this
Agreement. The Trust may at any time immediately terminate this Agreement in the
event of the appointment of a conservator or receiver for the Custodian by
regulatory authorities or upon the happening of a like event at the direction of
an appropriate regulatory agency or court of competent jurisdiction.
11.3 Failure to Appoint Successor Custodian. If a successor custodian is
not designated by the Trust on or before the date of termination specified
pursuant to Section 10.1 above, then the Custodian shall have the right to
deliver to a bank or corporation company of its own selection, which (a) is a
"bank" as defined in the 1940 Act and (b) has aggregate capital, surplus and
undivided profits as shown on its then most recent published report of not less
than $25 million, all Securities, cash and other property held by Custodian
under this
20
Agreement and to transfer to an account of or for the Funds at such bank or
trust company all Securities of the Funds held in a Book-Entry System or
Securities Depository. Upon such delivery and transfer, such bank or trust
company shall be the successor custodian under this Agreement and the Custodian
shall be relieved of all obligations under this Agreement.
ARTICLE XII
-----------
COMPENSATION OF CUSTODIAN
-------------------------
The Custodian shall be entitled to compensation as agreed upon from time to
time by the Trust and the Custodian. The fees and other charges in effect on the
date hereof and applicable to the Funds are set forth in Exhibit C attached
hereto.
ARTICLE XIII
------------
LIMITATION OF LIABILITY
-----------------------
It is expressly agreed that the obligations of the Trust hereunder shall
not be binding upon any of the Trustees, shareholders, nominees, officers,
agents or employees of the Trust personally, but shall bind only the property of
the Trust as provided in the Trust's Agreement and Declaration of Trust, as from
time to time amended. The execution and delivery of this Agreement have been
authorized by the Trustees, and this Agreement has been signed and delivered by
an authorized officer of the Trust, acting as such, and neither such
authorization by the Trustees 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, but shall bind only the corporation
property of the Trust as provided in the above-mentioned Agreement and the
Trust's Agreement and Declaration of Trust.
21
ARTICLE XIV
-----------
NOTICES
-------
Unless otherwise specified herein, all demands, notices, instructions, and
other communications to be given hereunder shall be in writing and shall be sent
or delivered to the recipient at the address set forth after its name herein
below:
To the Trust:
Amstar Investment Trust
Xxxxxx X. Xxxxx
14 Penn Plaza, 000 Xxxx 00xx Xxxxxx, Xxxxx 000
Xxx Xxxx, XX 00000
With Copies to:
Ultimus Fund Solutions, LLC
Xxxx Bridge
000 Xxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxxxxxx, XX 00000
To Custodian:
U.S. Bank, N.A. 000 Xxxxxx Xxxxxx, X.X. XX-XX-00XX
Xxxxxxxxxx, Xxxx 00000
Attention: Institutional Trust & Custody
Telephone: (513) 000- 0000
Facsimile: (000) 000-0000
or at such other address as either party shall have provided to the other by
notice given in accordance with this Article XIV. Writing shall include
transmissions by or through teletype, facsimile, central processing unit
connection, on-line terminal, and magnetic tape.
ARTICLE XIV
-----------
MISCELLANEOUS
-------------
14.1 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Ohio.
14.2 References to Custodian. The Trust shall not circulate any printed
matter which contains any reference to Custodian without the prior written
approval of Custodian, excepting printed matter contained in the prospectus or
statement of additional information for the Funds and such other printed matter
as merely identifies Custodian as custodian for the Funds. The Trust shall
submit printed matter requiring approval to
22
Custodian in draft form, allowing sufficient time for review by Custodian and
its counsel prior to any deadline for printing.
14.3 No Waiver. No failure by either party hereto to exercise, and no delay
by such party in exercising, any right hereunder shall operate as a waiver
thereof. The exercise by either party hereto of any right hereunder shall not
preclude the exercise of any other right, and the remedies provided herein are
cumulative and not exclusive of any remedies provided at law or in equity.
14.4 Amendments. This Agreement cannot be changed orally and no amendment
to this Agreement shall be effective unless evidenced by an instrument in
writing executed by the parties hereto.
14.5 Counterparts. This Agreement may be executed in one or more
counterparts, and by the parties hereto on separate counterparts, each of which
shall be deemed an original but all of which together shall constitute but one
and the same instrument.
14.6 Severability. If any provision of this Agreement shall be invalid,
illegal, or unenforceable in any respect under any applicable law, the validity,
legality and enforceability of the remaining provisions shall not be affected or
impaired thereby.
14.7 Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that this Agreement shall not be assignable by
either party hereto without the written consent of the other party hereto.
14.8 Headings. The headings of sections in this Agreement are for
convenience of reference only and shall not affect the meaning or construction
of any provision of this Agreement.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed and delivered in its name and on its behalf by its representatives
thereunto duly authorized, all as of the day and year first above written.
ATTEST:
/s/ Xxxx Xxxxxx By:/s/ Xxxxxx X. Xxxxx
------------------------------ ----------------------------
ATTEST: U.S. BANK, N.A.
/s/ Xxxxxx X. Xxxxxxx By:/s/ Xxxxxxxx X. Xxxxxx
------------------------------ ------------------------------
23
EXHIBIT A
AUTHORIZED PERSONS
Set forth below are the names and specimen signatures of the persons
authorized by the Trust to administer the Funds Custody Accounts.
Authorized Persons Specimen Signatures
Chairman: Xxxxxx X. Xxxxx /s/Xxxxxx X. Xxxxx
President: Xxxxxx X.. Xxxxxxxxxx /s/Xxxxxx X. Xxxxxxxxxx
Vice President: Xxxxxx X. Xxxxxx /s/Xxxxxx X. Xxxxxx
Vice President: Xxxxxxx X. Xxxxxxx /s/Xxxxxxxx X. Xxxxxxx
Secretary: Xxxx X. Xxxxxx /s/Xxxx X. Xxxxxx
Assistant Secretary: Xxxx X. Xxxxxx /s/Xxxx X. Xxxxxx
Assistant Secretary: Xxxx X. Bridge /s/Xxxx X. Bridge
Assistant Secretary: Xxxxx X. Xxxx /s/Xxxxx X. Xxxx
Treasurer: Xxxx X. Xxxxx /s/Xxxx X. Xxxxx
Assistant Treasurer: Xxxxxxx X. Xxxxxxx /s/Xxxxxxx X. Xxxxxxx
24
Adviser Employees: Xxxxx X. Xxxxxxx /s/Xxxxx X. Xxxxxxx
Transfer Agent/Fund Accountant
Employees:
Xxxx Xxxxx /s/Xxxx Xxxxx
Xxxxxx Xxxxxxx /s/Xxxxxx Xxxxxxx
Xxxxxxxx Xxxxxx /s/Xxxxxxxx Xxxxxx
25
EXHIBIT B
U.S. BANK INSTITUTIONAL TRUST &CUSTODY SERVICES
STANDARDS OF SERVICE GUIDE
August, 2001
U.S. Bank, N.A. is committed to providing superior quality service to all
customers and their agents at all times. We have compiled this guide as a tool
for our clients to determine our standards for the processing of security
settlements, payment collection, and capital change transactions. Deadlines
recited in this guide represent the times required for U.S. Bank, N.A. to
guarantee processing. Failure to meet these deadlines will result in settlement
at our client's risk. In all cases, U.S. Bank, N.A. will make every effort to
complete all processing on a timely basis.
U.S. Bank, N.A. is a direct participant of the Depository Trust Company, a
direct member of the Federal Reserve Bank of Cleveland, and utilizes the Bank of
New York as its agent for ineligible and foreign securities.
For corporate reorganizations, U.S. Bank, N.A. utilizes SEI's Reorg Source,
Financial Information, Inc., XCITEK, DTC Important Notices, Capital Changes
Daily (CCH) and the Wall Street Journal.
For bond calls and mandatory puts, U.S. Bank, N.A. utilizes SEI's Bond
Source, Xxxxx Information Systems, Standard & Poor's Corporation, XCITEK, and
DTC Important Notices. U.S. Bank, N.A. will not notify clients of optional put
opportunities.
Any securities delivered free to U.S. Bank, N.A., or its agents must be
received three (3) business days prior to any payment or settlement in order for
the U.S. Bank, N.A. standards of service to apply.
Should you have any questions regarding the information contained in this
guide, please feel free to contact your account representative.
The information contained in this Standards of Service Guide is
subject to change. Should any changes be made U.S. Bank, N.A.
will provide you with an updated copy of its Standards of Service
Guide.
26
U.S. BANK, N.A. SECURITY SETTLEMENT STANDARDS
TRANSACTION TYPE INSTRUCTIONS DEADLINES* DELIVERY INSTRUCTIONS
DTC 1:30 P.M. on Settlement Date DTC Participant #0000
Xxxxx Xxxx XX 00000
Institutional #________________
For Account #__________________
Federal Reserve Book Entry 12:30 P.M. on Settlement Date Federal Reserve Bank of Cleveland
for U.S. Bank, N.A. ABA# 000000000
XXXXX/1050
For Account #_____________
Federal Reserve Book Entry (Repurchase 1:00 P.M. on Settlement Date Federal Reserve Bank of Cleveland
Agreement Collateral Only) for U.S. Bank, N.A. ABA# 000000000
XXXXX/1040
For Account #_____________
PTC Securities 12:00 P.M. on Settlement Date PTC For Account BYORK
(GNMA Book Entry) U.S. Bank N.A. / 117612
Physical Securities 9:30 A.M. EST on Settlement Date Bank of New York
(for Deliveries, by 4:00 P.M. on One Wall Street- 3rd Floor - Window A
Settlement Date minus 1) Xxx Xxxx, XX 00000
For account of U.S. Bank, N.A. / Cust #117612
Attn: Xxxxxx Xxxxxx
CEDEL/EURO-CLEAR 11:00 A.M. on Settlement Date minus 2 Cedel a/c 55021
FFC: a/c 387000
U.S. Bank, N.A. /Global Omnibus
Euroclear a/c 97816
FFC: a/c 387000
U.S. Bank, N.A./Global Omnibus
Cash Wire Transfer 3:00 P.M. U.S. Bank,X.X. Xxxxx/Trust ABA# 000000000
Credit Account #112950027
Account of U.S Bank, N.A. Trust Services
Further Credit to ___________
Account # ___________________
* All times listed are Eastern Standard Time.
27
U.S. BANK, N.A. PAYMENT STANDARDS
SECURITY TYPE INCOME PRINCIPAL
Equities Payable Date
Municipal Bonds* Payable Date Payable Date
Corporate Bonds* Payable Date Payable Date
Federal Reserve Bank Book Entry* Payable Date Payable Date
PTC GNMA's (P&I) Payable Date + 1 Payable Date + 1
CMOs *
DTC Payable Date + 1 Payable Date + 1
Bankers Trust Payable Date + 1 Payable Date + 1
SBA Loan Certificates When Received When Received
Unit Investment Trust Certificates* Payable Date Payable Date
Certificates of Deposit* Payable Date + 1 Payable Date + 1
Limited Partnerships When Received When Received
Foreign Securities When Received When Received
*Variable Rate Securities
Federal Reserve Bank Book Entry Payable Date Payable Date
DTC Payable Date + 1 Payable Date + 1
Bankers Trust Payable Date + 1 Payable Date + 1
NOTE: If a payable date falls on a weekend or bank holiday, payment will be
made on the immediately following business day.
28
U.S. BANK CORPORATE REORGANIZATION STANDARDS
TYPE OF ACTION NOTIFICATION TO CLIENT DEADLINE FOR CLIENT INSTRUCTIONS TRANSACTION
TO U.S. BANK, N.A. POSTING
Rights, Warrants, Later of 10 business days prior to expiration 5 business days prior to expiration Upon receipt
and Optional Mergers or receipt of notice
Mandatory Puts with Later of 10 business days prior to expiration 5 business days prior to expiration Upon receipt
Option to Retain or receipt of notice
Class Actions 10 business days prior to expiration date 5 business days prior to expiration Upon receipt
Voluntary Tenders, Later of 10 business days prior to expiration 5 business days prior to expiration Upon receipt
Exchanges, or receipt of notice
and Conversions
Mandatory Puts, Defaults, At posting of funds or securities received None Upon receipt
Liquidations, Bankruptcies,
Stock Splits, Mandatory
Exchanges
Full and Partial Calls Later of 10 business days prior to expiration None Upon receipt
or receipt of notice
NOTE: Fractional shares/par amounts resulting from any of the above will be sold.
29
EXHIBIT C
U.S. BANK, N.A.
DOMESTIC CUSTODY FEE SCHEDULE
FOR
AMSTAR INVESTMENT TRUST
U.S. Bank, N.A., as Custodian, will receive monthly compensation for services
according to the terms of the following Schedule:
I. PORTFOLIO TRANSACTION FEES:
(a) For each repurchase agreement transaction $7.00
(b) For each portfolio transaction processed
through DTC or Federal Reserve $9.00
(c) For each portfolio transaction processed
through our New York custodian $25.00
(d) For each GNMA/Amortized Security Purchase $25.00
(e) For each GNMA Prin/Int Paydown, GNMA Sales $8.00
(f) For each covered call option/future contract
written, exercised or expired $10.00
(g) For each Cedel/Euro clear transaction $80.00
(h) For each Disbursement (Fund expenses only) $5.00
A transaction is a purchase/sale of a security, free receipt/free delivery
(excludes initial conversion), maturity, tender or exchange.
II. MARKET VALUE FEE
Based upon an annual rate of: Million
.00024 (2.4 Basis Points) on First $20
.00016 (1.6 Basis Points) on Next $30
.00012 (1.2 Basis Points) on Balance
III. MONTHLY MINIMUM FEE-PER FUND $250.00
IV. OUT-OF-POCKET EXPENSES
The only out-of-pocket expenses charged to your account
will be shipping fees or transfer fees.
V. XXX DOCUMENTS
Per Shareholder/year to hold each XXX Document $3.00
VI. EARNINGS CREDITS
On a monthly basis any earnings credits generated from uninvested
custody balances will be applied against any cash management service
fees generated.
30
EXHIBIT C CON'T
U.S. BANK, N.A.
CASH MANAGEMENT FEE SCHEDULE
FOR
AMSTAR INVESTMENT TRUST
SERVICES UNIT COST ($) MONTHLY COST ($)
D.D.A. Account Maintenance 17.00
Deposits .42
Deposited Items .119
Checks Paid .16
Balance Reporting - P.C. Access 50.00 Prior Day Module
10.00 Per Account
.07 Per Transaction
60.00 Current Day Module
15.00 Per Account
.07 Per Transaction
ACH Transaction .105
ACH Monthly Maintenance 60.00
ACH Additions, Deletions, Changes 6.00
ACH Stop Payment 5.00
ACH Debits - Received .12
ACH Credits Received .08
Deposited Items Returned 6.00
International Items Returned 10.00
NSF Returned Checks 27.50
Stop Payments 27.50
Data Transmission per account 130.00
Drafts Cleared .18
Lockbox Maintenance 85.00
Lockbox items Processed .38
Miscellaneous Lockbox items .12
Account Reconciliation 60.00
Per Item .06
Positive Pay 75.00
Per Item .015
Invoicing for Service Charge 15.00
Wires Incoming
Domestic 11.00
International 11.00
Wires Outgoing
Domestic International
Repetitive 14.00 Repetitive 35.00
Non-Repetitive 13.00 Non-Repetitive 40.00
PC - Initiated Wires:
Domestic International
Repetitive 10.00 Repetitive 25.00
Non-Repetitive 11.00 Non-Repetitive 25.00
Customer Initiated 9.00
Uncollected Charge -- U.S. Bank N.A. Prime Rate as of first of month plus 4%
Other available cash management services are priced separately.
31
US BANK INSTITUTIONAL CUSTODY SERVICES
GLOBAL CUSTODY FEE SCHEDULE
FOR
AMSTAR INVESTMENT TRUST
-------------------------------------------------------------------------------------------------------------
COUNTRY INSTRUMENT SAFEKEEPING TRANSACTION
(BPS) FEE
---------------------------- -------------------------- -------------------------- --------------------------
Argentina All 15.00 $40
---------------------------- -------------------------- -------------------------- --------------------------
Australia All 2.00 $30
---------------------------- -------------------------- -------------------------- --------------------------
Austria Equities/Bonds 3.50 $35
---------------------------- -------------------------- -------------------------- --------------------------
Austria Depo Receipt 20.00 $35
---------------------------- -------------------------- -------------------------- --------------------------
Austria non ATS ALL 25.00 $90
---------------------------- -------------------------- -------------------------- --------------------------
Bahrain All 50.00 $140
---------------------------- -------------------------- -------------------------- --------------------------
Bangladesh All 40.00 $150
---------------------------- -------------------------- -------------------------- --------------------------
Belgium All 2.50 $45
---------------------------- -------------------------- -------------------------- --------------------------
Benin All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Bermuda All 15.00 $60
---------------------------- -------------------------- -------------------------- --------------------------
Bolivia All 60.00 $150
---------------------------- -------------------------- -------------------------- --------------------------
Botswana All 25.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Brazil All 15.00 $35
---------------------------- -------------------------- -------------------------- --------------------------
Bulgaria All 40.00 $80
---------------------------- -------------------------- -------------------------- --------------------------
Burkina Faso All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Canada All 1.25 $12
---------------------------- -------------------------- -------------------------- --------------------------
Chile All 20.00 $60
---------------------------- -------------------------- -------------------------- --------------------------
China-Shanghai All 15.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
China-Shenzhen All 15.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
Columbia All 40.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Costa Rica All 15.00 $60
---------------------------- -------------------------- -------------------------- --------------------------
Croatia All 35.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
Cyprus All 15.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Czech Republic All 20.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Denmark All 3.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
EASDAQ All 5.50 $60
---------------------------- -------------------------- -------------------------- --------------------------
Ecuador All 35.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
Egypt All 40.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Estonia All 7.00 $25
---------------------------- -------------------------- -------------------------- --------------------------
Euromarkets All 1.50 $10
---------------------------- -------------------------- -------------------------- --------------------------
Finland All 5.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
France All 2.50 $45
---------------------------- -------------------------- -------------------------- --------------------------
Germany All 1.00 $30
---------------------------- -------------------------- -------------------------- --------------------------
Ghana All 25.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Greece All 20.00 $105
---------------------------- -------------------------- -------------------------- --------------------------
Guinea Bissau All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Hong Kong All 6.00 $60
---------------------------- -------------------------- -------------------------- --------------------------
Hungary All 35.00 $135
---------------------------- -------------------------- -------------------------- --------------------------
Iceland All 28.00 $80
---------------------------- -------------------------- -------------------------- --------------------------
India All 65.00 $250
---------------------------- -------------------------- -------------------------- --------------------------
Indonesia All 12.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Ireland All 3.00 $30
---------------------------- -------------------------- -------------------------- --------------------------
32
---------------------------- -------------------------- -------------------------- --------------------------
Israel All 15.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Italy All 3.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Ivory Coast All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Jamaica All 35.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Japan All 1.50 $15
---------------------------- -------------------------- -------------------------- --------------------------
Jordan All 40.00 $125
---------------------------- -------------------------- -------------------------- --------------------------
Kazakhstan Equities 60.00 $150
---------------------------- -------------------------- -------------------------- --------------------------
Kazakhstan Bonds 40.00 $160
---------------------------- -------------------------- -------------------------- --------------------------
Kenya All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Latvia Equities/Bonds 30.00 $75
---------------------------- -------------------------- -------------------------- --------------------------
Latvia Gov't Bonds 15.00 $75
---------------------------- -------------------------- -------------------------- --------------------------
Lebanon All 25.00 $90
---------------------------- -------------------------- -------------------------- --------------------------
Lithuania All 20.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Luxembourg All 4.00 $25
---------------------------- -------------------------- -------------------------- --------------------------
Malaysia All 6.00 $80
---------------------------- -------------------------- -------------------------- --------------------------
Mali All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Malta All 22.00 $75
---------------------------- -------------------------- -------------------------- --------------------------
Mauritius All 30.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Mexico All 3.00 $20
---------------------------- -------------------------- -------------------------- --------------------------
Morocco All 35.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Namibia All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Netherlands All 3.00 $25
---------------------------- -------------------------- -------------------------- --------------------------
New Zealand All 3.00 $40
---------------------------- -------------------------- -------------------------- --------------------------
Niger All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Nigeria All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Norway All 3.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Oman All 50.00 $140
---------------------------- -------------------------- -------------------------- --------------------------
Pakistan All 30.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Palestinian All 45.00 $140
---------------------------- -------------------------- -------------------------- --------------------------
Panama All 65.00 $85
---------------------------- -------------------------- -------------------------- --------------------------
Peru All 45.00 $105
---------------------------- -------------------------- -------------------------- --------------------------
Philippines All 8.00 $75
---------------------------- -------------------------- -------------------------- --------------------------
Poland All 25.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Portugal All 15.00 $85
---------------------------- -------------------------- -------------------------- --------------------------
Qatar All 45.00 $140
---------------------------- -------------------------- -------------------------- --------------------------
Romania All 35.00 $100
---------------------------- -------------------------- -------------------------- --------------------------
Russia Equities/Bonds 30.00 $200
---------------------------- -------------------------- -------------------------- --------------------------
Russia MINFIN 15.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Senegal All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
Singapore All 3.00 $40
---------------------------- -------------------------- -------------------------- --------------------------
Slovak Republic All 25.00 $110
---------------------------- -------------------------- -------------------------- --------------------------
Slovenia All 25.00 $110
---------------------------- -------------------------- -------------------------- --------------------------
South Africa All 3.00 $15
---------------------------- -------------------------- -------------------------- --------------------------
South Korea All 10.00 $20
---------------------------- -------------------------- -------------------------- --------------------------
Spain All 3.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Sri Lanka All 15.00 $60
---------------------------- -------------------------- -------------------------- --------------------------
Swaziland All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Sweden All 2.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Switzerland All 2.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Taiwan All 20.00 $125
---------------------------- -------------------------- -------------------------- --------------------------
Thailand All 6.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Togo All 40.00 $155
---------------------------- -------------------------- -------------------------- --------------------------
33
---------------------------- -------------------------- -------------------------- --------------------------
Trinidad & Tobago All 30.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
Tunisia All 40.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Turkey All 15.00 $15
---------------------------- -------------------------- -------------------------- --------------------------
United Kingdom All 1.50 $10
---------------------------- -------------------------- -------------------------- --------------------------
Ukraine All 30.00 $45
---------------------------- -------------------------- -------------------------- --------------------------
Uruguay All 50.00 $65
---------------------------- -------------------------- -------------------------- --------------------------
Venezuela All 40.00 $125
---------------------------- -------------------------- -------------------------- --------------------------
Zambia All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
Zimbabwe All 30.00 $50
---------------------------- -------------------------- -------------------------- --------------------------
*Any non-Eurobond assets held in CEDEL and Euroclear will be charged at the local market price quote.
BASE FEE
--------
A monthly base charge of $ 900.00 per account will apply. Also, there will be an additional monthly
base fee of $ 250.00 per Sub Advisor Account.
*Any Non-Eurobond assets held in CEDEL and Euroclear will be charged at the local market price quote.
** All fees quoted are payable monthly
34
ADDENDUM
STANDARD OF CARE - SUB-CUSTODIAN AND RULE 17F-5
(A) Standard of Care.
(a.) The Custodian shall be responsible for the performance of only such
duties as are set forth herein or expressly contained in Instructions which are
consistent with the provisions hereof as follows:
(i) Notwithstanding any other provisions of this Agreement, the Custodian's
responsibilities in holding assets with a Sub-Custodian shall be limited to the
exercise of good faith and reasonable care as a professional custodian for the
assets with respect to its obligations hereunder. The Custodian shall be liable
to the Funds for any loss which shall occur as the result of the failure of a
Sub-Custodian to exercise reasonable care with respect to the safekeeping of
such assets where such loss results directly: (A) from the failure by the
Sub-Custodian to use reasonable care in the provision of custodial services by
it in accordance with the standards prevailing in its local market or (B) from
the willful default, willful misconduct or negligence of such Sub-Custodian in
the provision of custodial services by it or any officers, employees or agents
retained by such Sub-Custodian to provide any part of such services; or (C) from
the burglary, robbery, hold-up, theft or mysterious disappearance of assets,
including loss by damage or destruction. In the event of any loss to the Funds
which is compensable hereunder (i.e. a loss arising by reason of willful
misconduct or the failure of the Custodian or its Sub-Custodian to use good
faith and reasonable care), the Custodian shall be liable to the Funds only to
the extent of the Funds's actual damages, to be determined based on the market
value of the property which is the subject of the loss at the date of discovery
of such loss and without reference to any special conditions or circumstances.
The Custodian shall have no liability whatsoever for any consequential, special,
indirect or speculative loss or damages (including, but not limited to, lost
profits) suffered by the Funds in connection with the transactions and services
contemplated hereby and the relationship established hereby even if the
Custodian has been advised as to the possibility of the same and regardless of
the form of the action.
35
(ii) As long as the Custodian shall have been in compliance with its
obligations under Rule 17f-5 under the 1940 Act to determine that each
Sub-Custodian has the requisite financial strength for the assets, the Custodian
shall not be responsible for the insolvency of any Sub-Custodian which is not a
branch or affiliate of the Custodian, except however, that the Custodian will be
responsible for the insolvency of any Sub-Custodian which it appoints if such
appointment was made negligently or in bad faith. The Custodian shall not be
responsible for any act, omission, default, or the solvency of any broker or
agent which it or a Sub-Custodian appoints unless such appointment was made
negligently or in bad faith.
(B) COMPLIANCE WITH SECURITIES AND EXCHANGE COMMISSION RULE 17F-5 ("RULE
17F-5").
(a) The Board of Trustees hereby delegates to the Custodian, and the
Custodian hereby accepts the delegation to it of, the obligation to perform as
the Funds's "Foreign Custody Manager" (as that term is defined in Rule
17f-5(a)(3)), including for the purposes of: (i) selecting Eligible Foreign
Custodians (as that term is defined in Rule 17f-5(a)(1), as the same may be
amended from time to time, or that have otherwise been exempted by SEC exemptive
order, rule or other appropriate SEC action) to hold the Funds's foreign assets
(as that term is defined in Rule 17f-5(a)(2)), (ii) evaluating the contractual
arrangements with such Eligible Foreign Custodians (as set forth in Rule
17f-5(c)(2)), and (iii) monitoring such foreign custody arrangements (as set
forth in Rule 17f-5(c)(3)).
(b) In connection with the foregoing, the Custodian shall:
(i) Provide written reports notifying the Board of Trustees, or its
designated agent, of the placement of foreign assets with particular Eligible
Foreign Custodians and of any material change in the arrangements with such
Eligible Foreign Custodians, with such reports to be provided to the Board of
Trustees at such times as the Board of Trustees deems reasonable and appropriate
based on the circumstance of the Funds's foreign custody arrangements but until
further notice from the Funds requesting a different schedule, such reports
shall be provided not
36
less than quarterly in summary form, with a more detailed report annually;
(ii) Exercise such reasonable care, prudence and diligence in performing as
the Funds's Foreign Custody Manager as a professional custodian having
responsibility for the safekeeping of foreign assets would exercise;
(iii) In selecting an Eligible Foreign Custodian, first have determined
that foreign assets placed and maintained in the safekeeping of such Eligible
Foreign Custodian shall be subject to reasonable care, based on the standards
applicable to custodians in the relevant market, after having considered all
factors relevant to the safekeeping of such assets, including, without
limitation, those factors set forth in Rule 17f-5(c)(1)(I);
(iv) Determine that the written contract with the Eligible Foreign
Custodian requires that the Eligible Foreign Custodian will provide reasonable
care for Foreign Assets based on the standards applicable to custodians in the
relevant market as provided in Rule 17f-5(c)(2) and will include, at a minimum,
the contractual provisions set forth in Rule 17f-5(c)(2)(i) or (ii); and
(v) Have established a system to monitor the continued appropriateness of
maintaining foreign assets with particular Eligible Foreign Custodians, in
accordance with Rule 17f-5(c)(2)(i), and performance of the governing
contractual arrangements, in accordance with Rule 17f-5(c)(2); it being
understood, however, that in the event that the Custodian shall have determined
that the existing Eligible Foreign Custodian in a given country would no longer
afford foreign assets reasonable care and that no other Eligible Foreign
Custodian in that country would afford reasonable care, the Custodian shall
promptly so advise the Funds and shall then act in accordance with the
Instructions of the Funds with respect to the disposition of the affected
foreign assets.
Subject to (b)(i)-(v) above, the Custodian, in its capacity as Foreign
Custody Manager, is hereby authorized to place and maintain foreign assets on
behalf of the Funds with Eligible Foreign Custodians pursuant to a written
contract deemed appropriate by the Custodian.
(c) The Custodian
represents to the Funds that it is a U.S. Bank as defined in Rule 17f-5(a)(7).
The Funds represents to the Custodian that, (1) the Assets being placed and
37
maintained in the Custodian's custody are subject to the 1940 Act as the same
may be amended from time to time; (2) its Board of Trustees has determined that
it is reasonable to rely on the Custodian to perform as the Funds's Foreign
Custody Manager; and (3) its Board of Trustees or its investment adviser shall
have determined that the Funds may maintain foreign assets in each country in
which the Funds's foreign assets shall be held hereunder and determined to
accept the risks arising therefrom (including, but not limited to, a country's
financial infrastructure, prevailing custody and settlement practices, laws
applicable to the safekeeping and recovery of foreign assets held in custody,
and the likelihood of nationalization, currency controls and the like)
(collectively ("Country Risk"); provided that, Country Risk shall not include
the failure of an Eligible Foreign Custodian to exercise reasonable care).
Nothing contained herein shall require the Custodian to make any selection on
behalf of the Funds that would entail consideration of Country Risk.
38
