Exhibit jjj
SECURITIES LENDING AGENCY AGREEMENT
between
TCW CONVERTIBLE SECURITIES FUND. INC.
and
INVESTORS BANK & TRUST COMPANY
SECURITIES LENDING AGENCY AGREEMENT
AGREEMENT, effective September 1, 1999, between TCW CONVERTIBLE
SECURITIES FUND. INC. on behalf of the Portfolios listed on Schedule A, (the
"Lender"), and INVESTORS BANK & TRUST COMPANY, a trust company organized and
existing under the laws of the Commonwealth of Massachusetts (the "Bank").
WHEREAS, the Bank currently acts as custodian for securities held by
it in the Account (as defined below) from time to time on behalf of the Lender;
and
WHEREAS, the Lender desires to appoint the Bank as its agent for the
purpose of lending securities in the Account as more fully set forth below; and
WHEREAS, the Bank has agreed to act as the Lender's agent for such
purpose pursuant to the terms hereof;
NOW, THEREFORE, for and in consideration of the mutual promises set
forth herein, the parties hereto agree as follows:
1. Definitions.
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Whenever used in this Agreement, unless the context otherwise
requires, the following words shall have the meanings set forth below:
1.1 "Account" shall mean the custodial account or accounts established
and maintained by the Bank on behalf of the Lender for the safekeeping of
securities and monies received by the Bank from time to time.
1.2 "Approved Investment" shall mean any type of security,
participation or interest in property in which Cash Collateral may be invested
or reinvested, as set forth on Schedule I hereto (which may be amended from time
to time to add additional Approved Investments with the written consent of the
Bank and the Lender, or to delete any Approved Investment at the written
direction of the Lender).
1.3 "Authorized Person" shall be any officer of the Lender and any
other person, whether or not any such person is an officer or employee of the
Lender, duly authorized by corporate resolutions of the Board of Directors or
Trustees, as the case may be, of the Lender to give Oral and/or Written
Instructions on behalf of the Lender, such persons to be designated in a
Certificate which contains a specimen signature of such person.
1.4 "Book-Entry System" shall mean the Federal Reserve/Treasury book-
entry system for receiving and delivering Government Securities (as defined
herein), its successors and nominees.
1.5 "Borrower" shall mean any entity named on Schedule II hereto (as
such Schedule may be amended from time to time to add additional Borrowers with
the written consent of the Bank and the Lender, or to delete any Borrower at the
written direction of the Lender) or any affiliate of such named entity.
1.6 "Cash Collateral" shall mean either fed funds or New York Clearing
House funds, as applicable for a particular loan of Securities.
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1.7 "Certificate" shall mean any notice, instruction, schedule or
other instrument in writing, authorized or required by this Agreement to be
given to the Bank, which is actually received by the Bank and signed on behalf
of the Lender by an Authorized Person or a person reasonably believed by the
Bank to be an Authorized Person.
1.8 "Collateral" shall mean Cash Collateral unless the Bank and the
Lender have agreed in writing to additional collateral, including Government
Securities and Letters of Credit.
1.9 "Collateral Account" shall mean an account established and
maintained by the Bank for the purpose of holding Collateral, Cash Collateral
and Approved Investments, interest, dividends and other payments and
distributions received with respect to Collateral and Approved Investments
("Distributions"), and any Securities Loan Fee paid by Borrowers in connection
with Securities loans hereunder.
1.10 "Depository" shall mean the Depository Trust Company,
Participant's Trust Company, Euroclear, and any other securities depository or
clearing agency (and their respective successors and nominees) authorized under
applicable law or regulation to act as a securities depository or clearing
agency, as set forth on Schedule IV hereto.
1.11 "Government Security" shall mean book-entry Treasury securities
(as defined in Subpart 0 of Treasury Department Circular No. 300, 31 C.F.R. 306)
and any other securities issued or fully guaranteed by the United States
government or any agency or instrumentality of the United States government.
1.12 "Letter of Credit" shall mean a clean, unconditional and
irrevocable letter of credit in favor of the Bank as agent for the Lender issued
by a bank named on Schedule III hereto as may be amended from time to time to
add additional banks by the written consent of the parties hereto, or to delete
any Bank at the written direction of the Lender.
1.13 "Oral Instructions" shall mean verbal instructions actually
received by the Bank from an Authorized Person or from a person reasonably
believed by the Bank to be an Authorized Person.
1.14 "Rebate" shall mean the amount payable by the Lender to a
Borrower (as set forth in a Receipt) in connection with Securities loans at any
time collateralized by Cash Collateral.
1.15 "Receipt" shall mean an advice or confirmation setting forth the
terms of a particular loan of Securities hereunder, including, without
limitation, the Collateral with respect to such loan.
1.16 "Securities Borrowing Agreement" shall mean with, respect to any
Borrower, the agreement pursuant to which the Bank lends securities on behalf of
its customers (including the Lender) to such Borrower as may be amended from
time to time.
1.17 "Securities Loan Fee" shall mean the amount payable by a Borrower
to the Bank pursuant to the applicable Securities Borrowing Agreement in
connection with Securities loans, if any, collateralized by Collateral other
than Cash Collateral.
1.18 "Security" shall mean any Government Securities, non-U.S.
securities, common stock and other equity securities, bonds, debentures,
corporate debt securities, notes, mortgages or other obligations, and any
certificates, warrants or other instruments representing rights to receive,
purchase, or subscribe
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for the same, or evidencing or representing any other rights or interests
therein, which are available for lending pursuant to Section 2.2 of this
Agreement.
1.19 "Written Instructions" shall mean written communications actually
received by the Bank from an Authorized Person or from a person reasonably
believed by the Bank to be an Authorized Person by letter, memorandum, telegram,
cable, telex, telecopy facsimile, computer, video (CRT) terminal or other on-
line system, or any other method whereby the Bank is able to verify with a
reasonable degree of certainty the identity of the sender of such communications
or the sender is required to provide a password or other identification code.
2. Appointment; Scope of Agency Authority.
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2.1 Appointment. The Lender hereby appoints the Bank as its agent to
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lend Securities in the Account to Borrowers from time to time as hereinafter set
forth, and the Bank hereby accepts appointment as such agent and agrees to so
act.
2.2 Securities Subject to Lending. The Lender shall keep on file with
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the Bank a list of those securities maintained in the Account which, at the sole
discretion of the Lender, are available for lending pursuant to this Agreement.
Such list may be amended from time to time and at any time by the Lender
pursuant to Written or Oral Instructions, provided however that the Bank is
authorized to enter into a loan pursuant to this Agreement with respect to any
Security appearing on such list, and the only obligation of the Bank with
respect to any Security which has been deleted from such list shall be to
terminate any outstanding loan with respect to such Security in accordance with
the terms of the applicable Securities Borrowing Agreement and to refrain from
lending any such Security in the future unless added back to the list.
2.3 Securities Borrowing Agreement. The Lender hereby acknowledges
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receipt of a Securities Borrowing Agreement with respect to each Borrower and
authorizes the Bank to lend Securities in the Account to Borrowers pursuant to
such agreements. The Bank shall promptly provide the Lender with copies of any
material amendments or changes to such agreements. The Lender may elect to
terminate any Borrower from Schedule II if it opposes the change.
2.4 Loan Opportunities. The Lender acknowledges and agrees that the
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Bank shall have the right to decline to make any loans of Securities under any
Securities Borrowing Agreement and to discontinue lending under any Securities
Borrowing Agreement in its sole discretion and without notice to the Lender. The
Lender agrees that it shall have no claim against the Bank based on, or relating
to, loans made for other customers or for the Bank's own account, or loan
opportunities refused hereunder, whether or not the Bank has made fewer or more
loans for any other customer or for the Bank's own account than for the Lender,
and whether or not any loan for another customer or for the Bank's own account,
or the opportunity refused, could have resulted in loans made hereunder.
2.5 Use of Book-Entry System and Depositories. The Lender hereby
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authorizes the Bank on a continuous and on-going basis, to deposit in the Book-
Entry System and the applicable Depositories set forth on Schedule IV hereto all
Securities eligible for deposit therein and to utilize the Book-Entry System and
Depositories to the extent possible in connection with its receipt and delivery
of Securities, Collateral, Approved Investments and monies under this Agreement.
Where Securities, Collateral (other than Cash Collateral) and Approved
Investments eligible for deposit in the Book-Entry System or a Depository are
transferred to the Account, the Bank shall identify as belonging to the Lender a
quantity of securities in a fungible bulk of securities shown on the Bank's
account on the books of the Book-Entry System or the applicable Depository.
Securities, Collateral and Approved Investments deposited in the Book-Entry
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System or a Deposit will be represented in accounts which include only assets
held by the Bank for customers, including but not limited to accounts in which
the Bank acts in a fiduciary or agency capacity.
3. Representations and Warranties.
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3.1 Lender's Representations The Lender hereby represents and
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warrants to the Bank, which representations and warranties shall be deemed to be
continuing and to be reaffirmed on any day that a Securities loan hereunder is
outstanding, that:
(a) This Agreement is, and each Securities loan and Approved
Investment will be, legally and validly entered into by the Lender, does not,
and will not, violate any statute, regulation, rule, order or, judgment binding
on the Lender, or any provision of the Lender's charter or by-laws, or any
agreement binding on the Lender or affecting its property, and is enforceable
against the Lender in accordance with its terms, except as may be limited by
bankruptcy, insolvency or similar laws, or by equitable principles relating to
or limiting creditors rights generally;
(b) The person executing this Agreement and all Authorized Persons
acting on behalf of the Lender has and have been duly and properly authorized to
do so;
(c) It is lending Securities as principal for its own account and it
will not transfer, assign or encumber its interest in, or rights with respect
to, any securities loans;
(d) All Securities subject to lending pursuant to Section 2.2 of this
Agreement are free and clear of all liens, claims, security interests and
encumbrances, no such Security subject to lending has been sold and the Lender
has no present intention to sell any of the Securities subject to lending. The
Lender shall promptly delete from the list referenced in Section 2.2 hereof any
and all Securities which are no longer subject to the representations contained
in this sub-paragraph (d).
3.2 Bank's Representations The Bank hereby represents and warrants to
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the Lender, which representations and warranties shall be deemed to be
continuing and to be reaffirmed on any day that a Securities loan hereunder is
outstanding, that:
(a) This Agreement is legally and validly entered into by the Bank,
does not and will not, violate any statute, regulation, rule, order or, judgment
binding on the Bank, or any provision of the Bank's charter or by-laws, or any
agreement binding on the Bank or affecting its property, and is enforceable
against the Bank in accordance with its terms, except as may be limited by
bankruptcy, insolvency or similar laws, or by equitable principles relating to
or limiting creditors rights generally; and
(b) The person executing this Agreement on behalf of the Bank has
been duly and properly authorized to do so.
4. Securities Lending Transactions.
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4.l Loan Initiation. From time to time the Bank may lend Securities to
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Borrowers and deliver such Securities against receipt of Collateral in
accordance with the applicable Securities Borrowing
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Agreement. The Bank shall deliver to the Lender a Receipt in connection with
each loan made hereunder, prior to settlement of such loan.
4.2 Receipt of Collateral; Approved Investments.
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(a) For each loan hereunder the Bank shall receive all Collateral
required by the applicable Securities Borrowing Agreement, which for Cash
Collateral shall in no event be equivalent to less than 102% of the market value
of the Securities lent (as determined in accordance with the applicable
Securities Borrowing Agreement), and the Bank is hereby authorized and directed,
without obtaining any further approval from the Lender, to invest and reinvest
all or substantially all of the Cash Collateral received in any Approved
Investment. The Bank shall credit all Collateral, Approved Investments and
Distributions received with respect to Collateral and Approved Investments to
the Collateral Account and xxxx its books and records to identify the Lender's
ownership thereof as appropriate.
(b) All Approved Investments shall be for the account and risk of the
Lender. To the extent any loss arising out of Approved Investments results in a
deficiency in the amount of Collateral available for return to a Borrower
pursuant to the Securities Borrowing Agreement, the Lender agrees to pay the
Bank on demand cash in an amount equal to such deficiency.
(c) Except as otherwise provided herein, all Collateral, Approved
Investments and Distributions credited to the Collateral Account shall be
controlled by, and subject only to the instructions of, the Bank, and the Bank
shall not be required to comply with any instructions of the Lender with respect
to the same.
4.3 Distribution on Loaned Securities. The Bank shall receive
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distributions paid on loaned Securities from Borrowers and/or issuers in
accordance with the applicable Securities Borrowing Agreement and shall credit
all such amounts received by the Bank to the Account.
4.4 Marks to Market. The Bank shall on each Business Day xxxx to
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market in U.S. dollars the value of all Securities loaned hereunder and
accordingly receive and release Collateral in accordance with the applicable
Securities Borrowing Agreement.
4.5 Collateral Substitutions. The Bank shall accept substitutions of
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Collateral in accordance with the applicable Securities Borrowing Agreement and
shall credit all such substitutions to the Collateral Account, provided however
that unless other Collateral has been mutually agreed upon in writing by the
Bank and the Lender, no other Collateral may be substituted for Cash Collateral.
4.6 Termination of Loans. The Bank shall terminate any Securities loan
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to a Borrower in accordance with the applicable Securities Borrowing Agreement
as soon as practicable after:
(a) receipt by the Bank of a notice of termination pursuant to the
Securities Borrowing Agreement;
(b) receipt by the Bank of Written Instructions instructing it to
terminate a Securities loan;
(c) receipt by the Bank of Written Instructions deleting the Borrower
to whom such loan was made from Schedule II hereto;
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(d) upon the Bank's becoming aware of the occurrence of any default
pursuant to the applicable Securities Borrowing Agreement requiring termination
of such loan; or
(e) whenever the Bank, in its sole discretion, elects to terminate
such loan.
4.7 Securities Loan Fee. The Bank shall receive any applicable Securities
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Loan Fee paid by Borrowers pursuant to the Securities Borrowing Agreement and
credit all such amounts received to the Collateral Account.
4.8 The Borrower's Financial Condition. The Bank has delivered to the
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Lender each of the Borrower's most recent statements that have been made
available to the Bank pursuant to the Securities Borrowing Agreements. The Bank
shall promptly deliver to the Lender all statements and financial information
subsequently delivered to the Bank and required to be furnished to the Bank
under the Securities Borrowing Agreements.
4.9 Transfer Taxes and Necessary Costs. All transfer taxes and necessary
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costs with respect to the transfer of the loaned Securities by the Lender to the
Borrower and the Borrower to the Lender upon the termination of the loan shall
be paid by the Borrower in accordance with the applicable Securities Borrowing
Agreement.
4.10 Remedies Upon Default. In the event of any default by a Borrower under
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the applicable Securities Borrowing Agreement, the Bank shall use its best
efforts to pursue, on behalf of the Lender, any remedies that the Bank or the
Lender may have under the applicable Securities Borrowing Agreement.
4.11 Bank's Obligation. Except as specifically set forth herein, or in any
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applicable Securities Borrowing Agreement, the Bank shall have no duty or
obligation to take action to effect payment by a Borrower of any amounts owed by
such Borrower pursuant to the Securities Borrowing Agreement.
5. Concerning the Bank.
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5.1 Standard of Care: Indemnification.
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(a) It is expressly understood and agreed that in exercising its
rights and performing its obligations hereunder, the Bank owes no fiduciary duty
to the Lender. The Bank shall not be liable for any costs, expenses, damages,
liabilities or claims (including attorneys and accountants fees) incurred by the
Lender, except those costs, expenses, damages, liabilities or claims arising out
of the Bank's negligence, willful misconduct, bad faith, or reckless disregard
of its obligations and duties hereunder. The Bank shall have no obligation
hereunder for costs, expenses, damages, liabilities or claims (including
reasonable attorneys and accountants fees), which are sustained or incurred by
reason of any action or inaction by the Book-Entry System or any Depository or
their respective successors or nominees. In no event shall the Bank be liable
for special, punitive or consequential damages, arising under or in connection
with this Agreement, even if previously informed of the possibility of such
damages.
(b) The Lender agrees to indemnify the Bank and to hold it harmless
from and against any and all costs, expenses, damages, liabilities or claims,
including reasonable fees and expenses of counsel, which the Bank may sustain or
incur or which may be asserted against the Bank by reason of or as a result of
any action taken or omitted by the Bank in connection with or arising out of the
Bank's operating under and in compliance with this Agreement, except those
costs, expenses, damages, liabilities or claims arising out of the Bank's
negligence, bad faith, willful misconduct, or reckless disregard of its
obligations and duties hereunder. The foregoing indemnity shall be a continuing
obligation of the Lender,
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its successors and assigns, notwithstanding the termination of any loans
hereunder or of this Agreement. Actions taken or omitted in reasonable reliance
upon Oral or Written Instructions, any Certificate, or upon any information,
order, indenture, stock certificate, power of attorney, assignment, affidavit or
other instrument reasonably believed by the Bank to be genuine or bearing the
signature of a person or persons reasonably believed by the Bank to be genuine
or bearing the signature of a person or persons reasonably believed to be
authorized to sign, countersign or execute the same, shall be presumed to have
been taken or omitted in good faith.
5.2 No Obligation to Inquire. Without limiting the generality of the
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foregoing, the Bank shall be under no obligation to inquire into, and shall not
be liable for, the validity of the issue of any Securities at any time held in
the Account or Approved Investments held in the Collateral Account, or the
legality or propriety of any loans of Securities to Borrowers.
5.3 Advances, Overdrafts and Indebtedness; Security Interest.
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(a) The Bank may, in its sole discretion, advance funds on behalf of
the Lender in order to pay to Borrowers any Rebates or to return to Borrowers
Cash Collateral to which they are entitled pursuant to the Securities Borrowing
Agreement. The Bank may also, in its sole discretion and as a matter of
bookkeeping convenience, credit the Account with interest, dividends or other
distributions payable on Securities prior to its actual receipt of final payment
therefor and the Lender agrees that such bookkeeping credits may also be
reflected on its books, and otherwise, as "immediately available" or "same day"
funds or by some similar characterization. Notwithstanding any such credit or
characterization, all such credits shall be conditional upon the Bank's actual
receipt of final payment and may be reversed by the Bank to the extent that
final payment is not received. If the Bank, in its sole discretion, permits the
Lender to use funds credited to the Account prior to receipt by the Bank of
final payment thereof, the Lender shall nonetheless, continue to bear the risk
of, and liability for, the Bank's non receipt of final payment in full.
(b) The Lender agrees to repay the Bank on demand the amount of any
advance or credit described in Section 5.3(a) above or any other amount owed by
the Lender hereunder plus accrued interest at a rate per annum (based on a 360-
day year for the actual number of days involved) as agreed to by the parties
from time to time. In order to secure repayment of any credit, advance,
overdraft or other indebtedness of the Lender to the Bank arising hereunder, the
Lender hereby agrees that the Bank shall have a continuing lien and security
interest, to the extent of any such amounts owing, in and to all assets now or
hereafter held in the Account and the Collateral Account, which is then in the
Bank's possession or control or in the possession or control of any third party
acting on the Bank's behalf. In this regard, the Bank shall be entitled to
charge any amounts owed to the Bank hereunder against any balance of account
standing to the credit of the Lender on the Bank's books and, without limiting
the foregoing, to all the rights and remedies of a pledgee under common law and
a secured party under the Massachusetts Uniform Commercial Code and/or any other
applicable laws and/or regulations as then in effect.
(c) The rights of the Bank and the obligations of the Lender under
this Section are absolute and unconditional whether or not the Bank would be
entitled to indemnification pursuant to Section 5.l(b) hereof.
(d) For all purposes of this Agreement, payment with respect to a
transaction will not be "final" until the Bank shall have received immediately
available funds which under applicable law or rule are irreversible, which are
not subject to any security interest, levy or other encumbrance, and which are
specifically applicable, or deemed by the Bank to be specifically applicable, to
such transaction. A debit by the Bank to any other account of the Lender
maintained by the Bank or to an account of any third party to whom or for whose
account Securities have been delivered shall not constitute final payment to the
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extent that such debit creates an overdraft or does not otherwise result in the
receipt by the Bank of immediately available, irreversible and unencumbered
funds.
5.4 Advice of Counsel The Bank may, with respect to questions of law,
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apply for and obtain the advice and opinion of counsel and shall be fully
protected with respect to anything done or omitted by it in good faith in
conformity with such advice or opinion.
5.5 No Collection Obligations. The Bank shall be under no obligation
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or duty to take action to effect collection of any amounts payable in respect of
Securities or Approved Investments if such Securities or Approved Investments
are in default, or if payment is refused after due demand and presentation.
5.6 Pricing Methods. The Bank is authorized to utilize any recognized
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pricing information service or any other means of valuation specified in the
applicable Securities Borrowing Agreement ("Pricing Methods") in order to
perform its valuation responsibilities with respect to loaned Securities,
Collateral and Approved Investments, and the Lender agrees to hold the Bank
harmless from and against any loss or damage suffered or incurred as a result of
errors or omissions of any such Pricing Methods.
5.7 Agent's Fee. In connection with each Securities loan hereunder the
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Lender shall pay to the Bank a fee equal to 60% of (a) net realized income
derived from Approved Investments, plus (b) any Securities Loan Fee paid or
payable by the Borrower, minus (c) any Rebate paid by the Bank to the Borrower
for the first 12 full months of lending activity, after which the Lender shall
pay to the Bank a fee equal to 40% of the above. The Bank is authorized, on a
monthly basis, to charge its fee and any other amounts owed by the Lender
hereunder against the Account and/or Collateral Account.
5.8 Reliance On Certificates and Instructions. The Bank shall be
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entitled to rely upon any Certificate, any information contained on any Schedule
hereto as may be amended in accordance with the terms hereof, and Written or
Oral Instruction actually received by the Bank and reasonably believed by the
Bank to be duly authorized and delivered. The Lender agrees to forward to the
Bank Written Instructions confirming Oral Instructions in such manner so that
such Written Instructions are received by the Bank by the close of business of
the same day that such Oral Instructions are given to the Bank. The Lender
agrees that the fact that such confirming Written Instructions are not received
on a timely basis or that contrary instructions are received by the Bank shall
in no way affect the validity or enforceability of the transactions authorized
by the Lender. The Bank will use reasonable efforts to report any subsequently
received contrary instructions. In this regard, the records of the Bank shall be
presumed to reflect accurately any Oral Instructions given by an Authorized
Person or a person reasonably believed by the Bank to be an Authorized Person.
5.9 Disclosure of Account Information. It is understood and agreed
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that the Bank is authorized to supply any information regarding the Account
which is required by any law or governmental regulation now or hereafter in
effect.
5.10 Statements. The Bank will at least daily furnish the Lender with
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statements relating to loans hereunder.
5.11 Force Majeure. The Bank shall not be responsible or liable for
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any failure or delay in the performance of its obligations under this Agreement
arising out of or caused, directly or indirectly, by acts of God, earthquakes,
fires, floods, storms or other disturbances of nature, epidemics, strikes,
riots, nationalization, expropriation, currency restrictions, acts of war, civil
war or terrorism, insurrection, nuclear fusion, fission or radiation, the
interruption, loss or malfunction of utilities, transportation, the
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unavailability of energy sources and other similar happenings or events except
as results from the Bank's own gross negligence.
5.12 No Implied Duties.
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(a) The Bank shall have no duties or responsibilities whatsoever
except such duties and responsibilities as are specifically set forth in this
Agreement and in the applicable Securities Borrowing Agreement, and no covenant
or obligation shall be implied against the Bank in connection with this
Agreement.
(b)The Lender shall have no duties or responsibilities whatsoever
except such duties and responsibilities as are specifically set forth in this
Agreement, and no covenant or obligation shall be implied against the Lender in
connection with this Agreement.
6. Termination. This Agreement may be terminated at any time by either party
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upon delivery to the other party of a written notice specifying the date of such
termination, which shall be not less than 60 days after the date of receipt of
such notice. Notwithstanding any such notice, this Agreement shall continue in
full force and effect with respect to all loans of Securities outstanding on the
date of termination.
7. Miscellaneous.
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7.1 Exclusivity. The Lender agrees that it shall not enter into any
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other agreement with any third party whereby such third party is permitted to
make loans on behalf of the Lender of any securities held by the Bank in the
Account from time to time.
7.2 Certificates. The Lender agrees to furnish to the Bank a new
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Certificate in the event that any present Authorized Person ceases to be an
Authorized Person or in the event that any other Authorized Persons are
appointed and authorized. Until such new Certificate is received, the Bank shall
be fully protected in acting upon Oral Instructions or signatures of the present
Authorized Persons.
7.3 Notices.
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(a) Any notice or other instrument in writing, authorized or required
by this Agreement to be given to the Bank, shall be sufficiently given if
addressed to the Bank and received by it at its offices at 000 Xxxxxxxxx Xxxxxx,
X.X. Xxx 0000, Xxxxxx, Xxxxxxxxxxxxx 00000-0000, Attention: Securities Lending
Department, , with a copy to: Xxxx X. Xxxxx, General Counsel or at such other
place as the Bank may from time to time designate in writing.
(b) Any notice or other instrument in writing, authorized or required
by this Agreement to be given to the Lender shall be sufficiently given if
addressed to the Lender and mailed or delivered to it at its offices at TCW
Convertible Securities Fund. Inc., 000 Xxxxx Xxxxxxxx Xxxxxx, Xxx Xxxxxxx, XX
00000, Attn: Xxxxx XxXxxx, or at such other place as the Lender may from time to
time designate in writing.
7.4 Cumulative Rights and No Waiver. Each and every right granted to a
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party hereunder or under any other document delivered hereunder or in connection
herewith, or allowed it by law or equity, shall be cumulative and may be
exercised from time to time. No failure on the part of a party to exercise, and
no delay in exercising, any right will operate as a waiver thereof, nor will any
single or partial exercise by a party of any right preclude any other or future
exercise thereof or the exercise of any other right.
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7.5 Severability. In case any provision in or obligation under this
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Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions or obligations
shall not in any way be affected or impaired thereby, and if any provision is
inapplicable to any person or circumstances, it shall nevertheless remain
applicable to all other persons and circumstances.
7.6 Amendments. This Agreement may not be amended or modified in any
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manner except by a written agreement executed by both parties.
7.7 Successors and Assigns. This Agreement shall extend to and shall
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be binding upon the parties hereto, and their respective successors and assigns;
provided, however, that this Agreement shall not be assignable by either party
without the written consent of the other.
7.8 Governing Law; Consent to Jurisdiction. This Agreement shall be
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construed in accordance with the laws of the Commonwealth of Massachusetts
without regard to conflict of laws principles thereof. The Lender hereby
consents to the jurisdiction of a state or federal court situated in Boston,
Massachusetts in connection with any dispute arising hereunder.
7.9 No Third Party Beneficiaries. In performing hereunder, the Bank is
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acting solely on behalf of the Lender and no contractual or service relationship
shall be deemed to be established hereby between the Bank and any other person.
7.10 Counterparts. This Agreement may be executed in any number of
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counterparts, each of which shall be deemed to be an original, but such
counterparts shall, together, constitute only one instrument.
7.11 SIPA Notice. THE PROVISIONS OF THE SECURITIES INVESTOR PROTECTION
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ACT OF 1970 MAY NOT PROTECT THE LENDER WITH RESPECT TO LOANS HEREUNDER AND,
THEREFORE, THE COLLATERAL DELIVERED TO THE BANK AS AGENT FOR THE LENDER, MAY
CONSTITUTE THE ONLY SOURCE OF SATISFACTION OF A BORROWER'S OBLIGATION IN THE
EVENT SUCH BORROWER FAILS TO RETURN THE LOANED SECURITIES.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective corporate officers, thereunto duly authorized and their
respective corporate seals to be hereunto affixed, as of the day and year first
above written.
TCW CONVERTIBLE SECURITIES FUND. INC.
By: /s/ Xxxxx X. Xxxx, Xx.
--------------------------
Name: Xxxxx X. Xxxx, Xx.
Title: Senior Vice President
INVESTORS BANK & TRUST COMPANY
By: /s/ Xxxxxx X. Xxxxxx
------------------------
Name: Xxxxxx X. Xxxxxx
Title: Senior Director
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Schedule I
Security Lending Reinvestment Schedule
Approved Investments
Bank Obligations:
------------------
Bank Obligations with Domestic and Foreign Banks including Offshore Time
Deposits. All Banks obligations will have a short term rating of XXX-0, X-0, or
P-1 from Xxxxxxxx Bankwatch, S & P or Moody's at time of purchase.
Money Market Funds
Institutional Money Market Funds with assets greater than $500 million.
Repurchase Agreements
Collateral held by IBT or a third party subcustodian. Collateralized at a
minimum of 102%. Eligible Collateral includes US Government, Mortgage Backed
Securities, Commercial Paper (A-1 or P-1) & US Corporate Bonds (Investment
Grade) with the following brokers.
ABN AMRO
Bear Xxxxxxx & Co, Inc
CS First Boston Corporation
Xxxxxxx Xxxxx & Co.
Xxxxxx Brothers, Inc.
X.X. Xxxxxx Securities, Inc
Xxxxxxx Xxxxx Government Securities.
Xxxxxx Xxxxxxx & Co. Inc.
PaineWebber, Inc
Prudential Securities, Inc
UBS Xxxxxxxxxx.Xxx
Commercial Paper
Must be rated A-1 by S&P or P-1 by Moodys at time of purchase.
Corporate Bond
Must have a Short Term rating of rated A-1 by S&P or P-1 by Moodys or have a
Long Term Rating of Investment Grade at time of purchase.
Unsecured Promissory Notes (Master Notes)
-----------------------------------------
Must have a rating or Parental rating of A-1 by S&P or P-1 by Moodys at time of
purchase.
12
Insurance Funding Agreements
Must have a minimum Issuers Claim Paying Ability rating of A by S&P or A by Duff
and Xxxxxx at time of purchase. Must be putable back to the issuer within 90
days.
GENERAL
. All investments will be US Dollar denominated.
. The final maturity for any security/issue will be less than one year.
. All investments will be in compliance with Investment Company Act of 1940.
. All investments will meet the minimum applicable credit rating associated
with each Fund at time of purchase.
. No more than 5% of the Funds total assets will be invested in any one
Money Market Fund, not to exceed 10% of the Funds total assets for total
Money Market Funds.
By: /s/ Xxxxx X. Xxxx, Xx.
----------------------------
Title: Xxxxx X. Xxxx, Xx.
-------------------------
Date: September 1, 1999
-------------------------
13
Schedule II
Approved Borrowers
Bear Xxxxxxx Securities Corp.
BT Xxxx Xxxxx, Inc.
Deutsche Bank Securities, Inc.
Credit Suisse First Boston Corporation
Xxxxxxx, Sachs & Co.
Xxxxxx Brothers, Inc.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx, Inc.
Xxxxxx Xxxxxxx & Co. Inc. (including Xxxxxx Xxxxxxx Securities Services Inc.)
Xxxxx Xxxxxx, Inc.
Prudential Securities, Inc.
Xxxxxxx Xxxxx Barney Inc.
By: Xxxxx X. Xxxx, Xx.
---------------------------
Title: Senior Vice President
------------------------
Date: September 1, 1999
-------------------------
14
Schedule III
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Letter of Credit Banks
[To be Determined]
15
Schedule IV
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Depositories
The depositories approved by the Lender pursuant to Rule 17f-5.
16
Schedule A
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Funds / Portfolios covered under this Agreement:
* TCW Convertible Securities Fund
17
