EX-99.G(4) 9 0009.txt FOREIGN CUSTODY MANAGER DELEGATION AGREEMENT EXHIBIT G(4) FOREIGN CUSTODY MANAGER DELEGATION AGREEMENT AGREEMENT made as of this ____ day of ____________ 1998 between Bear Stearns Investment Trust (the "Fund"), a management investment company registered with the Securities and Exchange Commission (the "Commission") under the Investment Company Act of 1940 as amended, (the "Act"), acting through its Board of Trustees or its duly appointed representative, and BROWN BROTHERS HARRIMAN & CO., a New York limited partnership with an office in Boston, Massachusetts (the "Delegate"). WITNESSETH ---------- WHEREAS the Fund has appointed the Delegate as custodian (the "Custodian") of the Fund's Assets pursuant to a Custodian Agreement dated January 8, 1993 as heretofore amended (the "Custodian Agreement"); WHEREAS the Fund may, from time to time, determine to invest and maintain some or all of the Fund's Assets outside the United States; WHEREAS the Trustees (the "Board") wish to delegate to the Delegate certain functions with respect to the custody of Fund's Assets outside the United States; NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Fund and the Delegate agree as follows. Capitalized terms shall have the meaning indicated in Section 12 unless otherwise indicated. 1. Maintenance of Fund's Assets Abroad. The Fund, acting through its ----------------------------------- Board or its duly authorized representative, hereby instructs Delegate pursuant to the terms of the Custodian Agreement to place and maintain the Fund's Assets within the countries listed in Schedule 1 attached hereto (as such Schedule may be amended from time to time in accordance herewith). Such instruction shall be deemed to include an instruction to use any Compulsory Securities Depository in any such country and shall represent a Proper Instruction under the terms of the Custodian Agreement. Countries may be added to Schedule 1 by written instruction of the Fund that is accepted in writing by the Delegate as an amendment to Schedule 1. With respect to amendments adding countries to Schedule 1, the Fund acknowledges that - (a) the Delegate shall perform services hereunder only with respect to the countries where it provides custodial services to the Fund under the Custodian Agreement; (b) depending on conditions in the particular country, advance notice may be required before the Delegate shall be able to perform its duties hereunder in or with respect to such country (such advance notice to be reasonable in light of the specific facts and circumstances attendant to performance of duties in such country); and (c) nothing in this Agreement shall require the Delegate to provide delegated or custodial services in any country not listed in Schedule 1 until such amended Schedule 1 has been accepted by the Delegate in accordance herewith. 2. Delegation. Pursuant to the provisions of Rule 17f-5 under the Act ---------- as amended, the Board hereby delegates to the Delegate, and the Delegate hereby accepts such delegation and agrees to perform, only those duties set forth in this Agreement concerning the safekeeping of the Fund's Assets in each of the countries set forth in Schedule 1 hereto as amended from time to time. The Delegate is hereby authorized to take such actions on behalf of or in the name of the Fund as are reasonably required to discharge its duties under this Agreement, including, without limitation, to cause the Fund's Assets to be placed with a particular Eligible Foreign Custodian in accordance herewith. The Fund confirms to the Delegate that the Fund or its investment adviser has considered the Sovereign Risk and prevailing Country -2- Risk as part of its continuing investment decision process, including such factors as may be reasonably related to the systemic risk of maintaining the Fund's Assets in a particular country, including, but not limited to, financial infrastructure, prevailing custody and settlement systems and practices (including the use of any Compulsory Securities Depository), and the laws relating to the safekeeping and recovery of the Fund's Assets held in custody pursuant to the terms of the Custodian Agreement. 3. Selection of Eligible Foreign Custodian and Contract ---------------------------------------------------- Administration. The Delegate shall perform the following duties with respect to -------------- the selection of Eligible Foreign Custodians and administration of certain contracts governing the Fund's foreign custodial arrangements: (a) Selection of Eligible Foreign Custodian. The Delegate shall place --------------------------------------- and maintain the Fund's Assets with an Eligible Foreign Custodian; provided that the Delegate shall have determined that the Fund's Assets will be subject to reasonable care based on the standards applicable to custodians in the relevant market after considering all factors relevant to the safekeeping of such assets including without limitation: (i) The Eligible Foreign Custodian's practices, procedures, and internal controls, including, but not limited to, the physical protections available for certificated securities (if applicable), the controls and procedures for dealing with any Securities Depository, the method of keeping custodial records, and the security and data protection practices; -3- (ii) Whether the Eligible Foreign Custodian has the requisite financial strength to provide reasonable care for the Fund's Assets; (iii) The Eligible Foreign Custodian's general reputation and standing and, in the case of a Securities Depository, the depository's operating history and number of participants; and (iv) Whether the Fund will have jurisdiction over and be able to enforce judgments against the Eligible Foreign Custodian, such as by virtue of the existence of any offices of such Eligible Foreign Custodian in the United States or such Eligible Foreign Custodian's appointment of an agent for service of process in the United States or consent to jurisdiction in the United States. The Delegate shall be required to make the foregoing determination to the best of its knowledge and belief based only on information reasonably available to it. (b) Contract Administration. In the case of an Eligible Foreign ----------------------- Custodian that is not a Securities Depository or a U.S. Bank, the Delegate shall cause that the foreign custody arrangements shall be governed by a written contract that the Delegate has determined will provide reasonable care for Fund assets based on the standards applicable to custodians in the relevant market (or, in the case of a Securities Depository, by such contract, by the rules or established practices and procedures of the Securities Depository, or by an combination of the foregoing). Each such contract shall, except as set forth in the last paragraph of this subsection (b), include provisions that provide: -4- (i) For indemnification or insurance arrangements (or any combination of the Page 3 foregoing) such that the Fund will be adequately protected against the risk of loss of assets held in accordance with such contract; (ii) That the Fund's Assets will not be subject to any right, charge, security interest, lien or claim of any kind in favor of the Eligible Foreign Custodian or its creditors except a claim of payment for their safe custody or administration or, in the case of cash deposits, liens or rights in favor of creditors of such Custodian arising under bankruptcy, insolvency or similar laws; (iii) That beneficial ownership of the Fund's 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 Fund's Assets as belonging to the Fund or as being held by a third party for the benefit of the Fund; (v) That the Fund's independent public accountants will be given access to those records described in (iv) above, or confirmation of the contents of such records; and (vi) That the Delegate will receive sufficient and timely periodic reports with respect to the safekeeping of the Fund's Assets, including, but not limited to, notification of any transfer to or from the Fund's account or a third party account containing the Fund's Assets. Such contract may contain, in lieu of any or all of the provisions specified in this Section 3 (b), such other provisions that the Delegate determines will provide, in their entirety, -5- the same or a greater level of care and protection for the Fund's Assets as the specified provisions, in their entirety. (c) Limitation to Delegated Selection. Notwithstanding anything in this Agreement to the contrary, the duties under this Section 3 shall apply only to Eligible Foreign Custodians selected by the Delegate and shall not apply to Compulsory Securities Depositories or to any Eligible Foreign Custodian that the Delegate is directed to use pursuant to Section 7. 4. Monitoring. The Delegate shall establish a system to monitor at ---------- reasonable intervals (but at least annually) the appropriateness of maintaining the Fund's Assets with each Eligible Foreign Custodian that has been selected by the Delegate pursuant to Section 3 of this Agreement. The Delegate shall monitor the continuing appropriateness of placement of the Fund's Assets in accordance with the criteria established under Section 3(a) of this Agreement. The Delegate shall monitor the continuing appropriateness of the contract governing the Fund's arrangements in accordance with the criteria established under Section 3(b) of this Agreement. 5. Reporting. At least annually and more frequently as mutually --------- agreed between the parties, the Delegate shall provide to the Board written reports specifying placement of the Fund's Assets with each Eligible Foreign Custodian selected by the Delegate pursuant to Section 3 of this Agreement and shall promptly report as to any material changes to such foreign custody arrangements. The Delegate will prepare such a report with respect to any Eligible Foreign Custodian that the Delegate has been instructed to use pursuant to Section 7 only to the extent specifically agreed with respect to the particular situation. The Delegate shall promptly advise the Fund whenever a custody arrangement of the Fund with any Eligible Foreign -6- Custodian selected by the Delegate pursuant to Section 3 above no longer meets the requirements of Rule 17f-5. 6. Withdrawal of Fund's Assets. If the Delegate determines that an --------------------------- arrangement with a specific Eligible Foreign Custodian selected by the Delegate under Section 3 of this Agreement no longer meets the requirements of said Section, Delegate shall withdraw the Fund's Assets from the non-complying arrangement as soon as reasonably practicable; provided, however, that if in the reasonable judgment of the Delegate, such withdrawal would require liquidation of any of the Fund's Assets or would materially impair the liquidity, value or other investment characteristics of the Fund's Assets, it shall be the duty of the Delegate to provide information regarding the particular circumstances and to act only in accordance with Proper Instructions of the Fund or its Investment Advisor with respect to such liquidation or other withdrawal. 7. Direction as to Eligible Foreign Custodian. Notwithstanding this ------------------------------------------ Delegation Agreement, the Fund, acting through its Board, its Investment Adviser or its other authorized representative, may direct the Delegate to place and maintain the Fund's Assets with a particular Eligible Foreign Custodian. In such event, the Delegate shall be entitled to rely on any such instruction as a Proper Instruction under the terms of the Custodian Agreement and shall have no duties under this Delegation Agreement with respect to such arrangement save those that it may undertake specifically in writing with respect to each particular instance. 8. Standard of Care. In carrying out its duties under this ---------------- Agreement, the Delegate agrees to exercise reasonable care, prudence and diligence such as a person having responsibility for safekeeping the Fund's Assets would exercise. -7- 9. Provision of Information Regarding Country Risk. With respect to ----------------------------------------------- the jurisdictions listed in Schedule 1, or added thereto pursuant to Section 1, the Delegate agrees to provide annually to the Board such information relating to Country Risk, if known by the Custodian, as is specified in Schedule 2 of this Agreement. 10. Indemnification. The Delegate hereby agrees to indemnify the --------------- Fund, its officers, trustees, employees or agents from any losses or liabilities arising out of its failure to exercise the standard of care set forth in this Agreement. 11. Arbitration of Disputes. To the extent permitted by law, all ----------------------- disputes or claims arising under this Agreement shall be resolved through arbitration. Arbitration under this Article shall be conducted according to the Rules of the American Arbitration Association. Any arbitration will be conducted in New York, New York and under the laws of the State of New York. This Article shall be enforced and interpreted exclusively in accordance with applicable federal law, including the Federal Arbitration Act. 12. Representations. The Delegate hereby represents and warrants that --------------- it is a U.S. Bank and that this Agreement has been duly authorized, executed and delivered by the Delegate and is a legal, valid and binding agreement of the Delegate. The Fund hereby represents and warrants that its Board of Directors has determined that it is reasonable to rely on the Delegate to perform the delegated responsibilities provided for herein and that this Agreement has been duly authorized, executed and delivered by the Fund and is a legal, valid and binding agreement of the Fund. -8- 13. Effectiveness; Termination. This Agreement shall be effective as -------------------------- of the date on which this Agreement shall have been accepted by the Delegate, as indicated by the date set forth below the Delegate's signature. This Agreement may be terminated at any time, without penalty, by written notice from the terminating party to the non-terminating party. Such termination shall be effective on the 30th day following the date on which the non-terminating party shall receive the foregoing notice. The foregoing to the contrary notwithstanding, this Agreement shall be deemed to have been terminated concurrently with the termination of the Custodian Agreement. 14. Notices. Notices and other communications under this Agreement ------- are to be made in accordance with the arrangements designated for such purpose under the Custodian Agreement unless otherwise indicated in a writing referencing this Agreement and executed by both parties. 15. Limitation of Liability. The Delegate understands that the ----------------------- obligations of the Fund under this Agreement are not binding upon any Trustee or shareholder of the Fund personally but bind only the Fund and the Fund's Property. The Delegate represents that it has notice of the provision disclaiming shareholder liability for acts or obligations of the Fund. 16. Definitions. Capitalized terms in this agreement have the ----------- following meanings: a. Compulsory Securities Depository - shall mean a Securities Depository the use of which is mandatory (i) under applicable law or regulation; (ii) because securities cannot be withdrawn from the depository; or, (iii) because maintaining securities outside the Securities Depository is not consistent with prevailing custodial practices. -9- b. Country Risk - shall mean the systemic risk of holding ------------ assets in a particular country including, but not limited to, (a) the necessity to use any Compulsory Securities Depository, (b) such country's financial infrastructure, (c) such country's prevailing custody and settlement practices, (d) nationalization, expropriations or other government actions, (e) regulations of the banking or securities industry, (f) currency controls, restrictions, devaluations or fluctuations, and (g) market conditions which affect the orderly execution of securities transaction or affect the value of securities. c. Eligible Foreign Custodian - shall have the meaning set -------------------------- forth in Rule 17f-5(a)(1) and shall also include a U.S. Bank. d. Fund's Assets - shall mean any of the Fund's investments ------------- (including foreign currencies) for which the primary market is outside the United States, and such cash and cash equivalents as are reasonably necessary to effect the Fund's transactions in such investments. e. Proper Instructions - shall have the meaning set forth in ------------------- the Custodian Agreement. f. Securities Depository - shall have the meaning set forth in --------------------- Rule 17f-5(a)(6). g. Sovereign Risk - shall have the meaning set forth in Section -------------- 6.C. of the Custodian Agreement. h. U.S. Bank - shall mean a bank which qualifies to serve as a --------- custodian of assets of investment companies under Section 17(f) of the Act. 17. Governing Law and Jurisdiction. This Agreement shall be construed ------------------------------ in accordance with the laws of the State of New York. The parties hereby submit to the exclusive jurisdiction of the Federal courts sitting in the State of New York or the Commonwealth of Massachusetts or of the state courts of either such State or such Commonwealth. 18. Fees. Delegate shall perform its functions under this agreement ---- for the compensation determined under the Custodian Agreement. -10- 19. Integration. This Agreement sets forth all of the Delegate's ----------- duties with respect to the selection and monitoring of Eligible Foreign Custodians, the administration of contracts with Eligible Foreign Custodians, the withdrawal of assets from Eligible Foreign Custodians and the issuance of reports in connection with such duties. The terms of the Custodian Agreement shall apply generally as to matters not expressly covered in this Agreement, including dealings with the Eligible Foreign Custodians in the course of discharge of the Delegate's obligations under the Custodian Agreement. 20. Severability. Amendment and Assignment. In case any provision in ------------ or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected thereby. This Agreement may not be amended or modified in any manner except by a written agreement executed by both parties. This Agreement shall extend to and shall 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. 21. Counterparts. This Agreement may be executed in any number of ------------ counterparts, each of which shall be deemed to be an original but such counterparts shall together, constitute only one instrument 22. Conflicts. In the event of any conflict between the Custodian --------- Agreement between the parties and this Agreement, the terms of this Agreement shall prevail. -11- NOW THEREFORE, the parties have caused this Agreement to be executed by its duly authorized representatives, effective as of the date first above written. BROWN BROTHERS HARRIMAN & CO. BEAR STEARNS INVESTMENT TRUST By: /s/ Douglas A. Donahue By: /s/ Frank J. Maresca ----------------------------- ---------------------------------- Name: Douglas A. Donahue Name: Frank J. Maresca ---------------------- --------------------------- Title: Partner Title: Vice President & Treasurer ---------------------- --------------------------- Date: 11/17/98 Date: 11/25/98 ---------------------- --------------------------- -12- SCHEDULE 1 TO BEAR STEARNS INVESTMENT TRUST DELEGATION AGREEMENT AS OF ________________, 1998 ARGENTINA AUSTRALIA AUSTRIA BAHRAIN BANGLADESH BELGIUM BERMUDA BOTSWANA BRAZIL BULGARIA CANADA CHILE CHINA COLOMBIA CZECH REPUBLIC DENMARK ECUADOR EGYPT FINLAND FRANCE GERMANY GHANA GREECE HONG KONG HUNGARY INDIA INDONESIA IRELAND ISRAEL ITALY JAPAN JORDAN KENYA KOREA LEBANON MALAYSIA MAURITIUS MEXICO MOROCCO NAMIBIA -13- BROWN BROTHERS HARRIMAN CO. - GLOBAL CUSTODY NETWORK BEAR STEARNS INVESTMENT TRUST - EMERGING MARKETS DEBT PORTFOLIO APPENDIX A
------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 10 ARGENTINA CITIBANK, N.A., BUENOS AIRES Caja de Valores Citibank, N.A., New York Agt. 7/16/81 CRYL New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 15 AUSTRALIA NATIONAL AUSTRALIA BANK LTD., MELBOURNE Austraclear Ltd. National Australia Bank Agt. 5/1/85 CHESS Agreement Amendment 2/13/92 Reserve Bank of Omnibus Amendment 11/22/93 Australia ------------------------------------------------------------------------------------------------------------------------------------ 20 AUSTRIA CREDITANSTALT AG OeKB Creditanstalt Bankverein Agreement 12/18/89 Omnibus Amendment 1/17/94 ------------------------------------------------------------------------------------------------------------------------------------ 30 BAHRAIN BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHANGHAI BANKING CORP. None LTD. Honkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 BBME Supplement 5/14/96 Side Letter Agreement dated 7/28/97 ------------------------------------------------------------------------------------------------------------------------------------ 35 BANGLADESH STANDARD CHARTERED BANK, DHAKA None Standard Chartered Bank Agreement 2/18/92 Omnibus Amendment 6/13/94 Appendix 4/8/96 ------------------------------------------------------------------------------------------------------------------------------------ 40 BELGIUM BANQUE BRUXELLES LAMBERT CIK Banque Bruxelles Lambert Agt. 11/15/90 National Bank of Belgium Omnibus Amendment 3/1/94 ------------------------------------------------------------------------------------------------------------------------------------ 45 BERMUDA THE BANK OF N.T. BUTTERFIELD & SON LTD. None The Bank of N.T. Butterfield & Son Ltd. Agreement 5/27/97 ------------------------------------------------------------------------------------------------------------------------------------ 55 BOTSWANA STANBIC BANK BOTSWANA LIMITED for STANDARD BANK OF SOUTH AFRICA None Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 9/29/79 ------------------------------------------------------------------------------------------------------------------------------------ 60 BRAZIL BANKBOSTON, N.A., SAO PAULO BOVESPA The First National Bank of Boston Agreement 1/5/88 CLC Omnibus Amendment 2/22/94 Amendment 7/29/96 ------------------------------------------------------------------------------------------------------------------------------------ 70 BULGARIA ING BANK, N.V. CDAD ING Bank N.V. Agreement 9/15/97 BNB ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 75 CANADA CANADIAN IMPERIAL BANK OF COMMERCE Bank of Canada Canadian Imperial Bank of Commerce Agreement 9/9/88 CDS Omnibus Amendment 12/1/93 ------------------------------------------------------------------------------------------------------------------------------------ 80 CANADA THE ROYAL BANK OF CANADA Bank of Canada The Royal Bank of Canada Agreement 2/23/96 CDS ------------------------------------------------------------------------------------------------------------------------------------ 85 CHILE CITIBANK, N.A., SANTIAGO DCV Citibank, N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 90 CHINA STANDARD CHARTERED BANK, SHANGHAI SSCCRC Standard Chartered Bank Agreement 2/18/92 Omnibus Amendment 6/13/94 Appendix 4/8/96 ------------------------------------------------------------------------------------------------------------------------------------ 95 CHINA STANDARD CHARTERED BANK, SHENZHEN SSCC Standard Chartered Bank Agreement 2/18/92 Omnibus Amendment 6/13/94 Appendix 4/8/96 ------------------------------------------------------------------------------------------------------------------------------------ 100 COLOMBIA CITITRUST COLOMBIA, S.A. SOCIEDAD FIDUCIARIA FOR CITIBANK, N.A. DCV Citibank, N.A., New York Agreement 7/16/81 Deceval New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank, N.A./Cititrust Colombia Agreement 12/2/91 Citibank, N.A. Subsidiary Amendment 10/19/95 ------------------------------------------------------------------------------------------------------------------------------------ 118 CZECH REPUBLIC CESKOSLOVENSKA OBCHODNI BANKA, A.S., PRAGUE SCP Ceskoslovenska Obchondi Banka Agreement 2/28/94 Czech National Bank ------------------------------------------------------------------------------------------------------------------------------------ 120 CZECH REPUBLIC CITIBANK, A.S. FOR CITIBANK N.A. SCP Citibank, N.A., New York Agreement 7/16/81 Czech National Bank New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank N.A. / Citibank A.S. Agreement 6/24/96 ------------------------------------------------------------------------------------------------------------------------------------ 125 DENMARK DEN DANSE BANK VP Den Danske Bank Agreement 1/1/89 Omnibus Amendment 12/1/93 ------------------------------------------------------------------------------------------------------------------------------------ 130 ECUADOR CITIBANK, N.A., QUITO Deceval Citibank, N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank, Quito Side Letter 7/3/95 ------------------------------------------------------------------------------------------------------------------------------------ 135 EGYPT CITIBANK, N.A., CAIRO MCSD Citibank, N.A., New York Agt. 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 145 FINLAND MERITA BANK FCSD Union Bank of Finland Agreement 2/27/89 Omnibus Amendment 4/6/94 ------------------------------------------------------------------------------------------------------------------------------------ 155 FRANCE CREDIT AGRICOLE INDOSUEZ SICOVAM Banque Indosuez Agreement 7/19/90 Banque de France Omnibus Amendment 3/10/94 ------------------------------------------------------------------------------------------------------------------------------------ 160 GERMANY DEUTSCHE BANK DBC Deutsche Bank Agreement 8/21/96 ------------------------------------------------------------------------------------------------------------------------------------ 170 GHANA MERCHANT BANK (GHANA) LIMITED FOR STANDARD BANK OF SOUTH AFRICA None Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 9/29/97 ------------------------------------------------------------------------------------------------------------------------------------ 175 GREECE CITIBANK, N.A., ATHENS Apothetirion Titlon A.E. Citibank, N.A., New York Agreement 7/16/81 Bank of Greece New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 185 HONG KONG HONGKONG & SHANGHAI BANKING CORP. LTD., HONG KONG HKSCC Hongkong & Shanghai Banking Corp. Agt. 4/19/91 CMU Omnibus Supplement 12/29/93 Schedule 5/14/96 ------------------------------------------------------------------------------------------------------------------------------------ 195 HUNGARY CITIBANK BUDAPEST RT. FOR CITIBANK, N.A. KELER Citibank, N.A., New York Agreement 7/16/81 Ltd. New York Agreement Amendments 8/31/90 and 7/26/96 Citibank, N.A. Subsidiary Amendment 10/19/9 Citibank, N.A. / Citibank Budapest Agreement 6/23/92 Citibank, N.A. / Citibank Budapest Amendment 9/29/92 ------------------------------------------------------------------------------------------------------------------------------------ 200 INDIA CITIBANK, N.A, MUMBAI NSDL Citibank, N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank, Mumbai Amendment 11/17/93 ------------------------------------------------------------------------------------------------------------------------------------ 215 INDONESIA CITIBANK, N.A., JAKARTA None Citibank, N.A. New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 220 IRELAND ALLIED IRISH BANKS PLC CrestCo. Allied Irish Banks Agreement 1/10/89 Gilt Settlement Office Omnibus Amendment 4/8/94 ------------------------------------------------------------------------------------------------------------------------------------ 225 ISRAEL BANK HAPOALIM B.M. TASE Clearinghouse Ltd. Bank Hapoalim Agreement 8/27/92 ------------------------------------------------------------------------------------------------------------------------------------ 230 ISRAEL ISRAEL DISCOUNT BANK TASE Clearinghouse Ltd. Israel Discount Bank Agreement 3/10/93 ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 235 ISRAEL UNITED MIZRAHI BANK TASE Clearinghouse Ltd. United Mizrahi Bank Agreement 3/4/93 ------------------------------------------------------------------------------------------------------------------------------------ 240 ITALY BANCA COMMERCIALE ITALIANA Monte Titoli Banca Commerciale Italiana Agreement 5/8/89 Banca D'Italia Agreement Amendment 10/8/93 Omnibus Amendment 12/14/93 ------------------------------------------------------------------------------------------------------------------------------------ 250 JAPAN THE BANK OF TOKYO - MITSUBISHI, LTD. JASDEC Bank of Tokyo - Mitsubishi Agreement 6/17/96 Bank of Japan ------------------------------------------------------------------------------------------------------------------------------------ 260 JORDAN ARAB BANK PLC None Arab Bank PLC Agreement 4/5/95 ------------------------------------------------------------------------------------------------------------------------------------ 265 KENYA STANBIC BANK KENYA LIMITED FOR STANDARD BANK OF SOUTH AFRICA None Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 9/29/97 ------------------------------------------------------------------------------------------------------------------------------------ 270 KOREA CITIBANK, N.A SEOUL KSD Citibank, N.A. New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank, Seoul Agreement Supplement 10/28/94 ------------------------------------------------------------------------------------------------------------------------------------ 280 LEBANON BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHANGHAI BANKING CORP. Midclear Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 BBME Supplement 5/14/96 Side letter Agreement dated 7/28/97 ------------------------------------------------------------------------------------------------------------------------------------ 295 MALAYSIA HONGKONG BANK AMLAYSIA BERHAD Bank Negara Malaysia MCD Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 Malaysia Subsidiary Supplement 5/23/94 Side letter Agreement dated 7/28/97 ------------------------------------------------------------------------------------------------------------------------------------ 300 MAURITIUS HONGKONG & SHANGHAI BANKING CORP. LTD., MAURITIUS CDS Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 ------------------------------------------------------------------------------------------------------------------------------------ 310 MEXICO CITIBANK MEXICO, S.A. Indeval Citibank, N.A. New York Agreement 7/16/81 Banco de Mexico New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank Mexico, S.A. Amendment 2/28/95 ------------------------------------------------------------------------------------------------------------------------------------ 315 MOROCCO BANQUE MAROCAINE DU COMMERCE EXTERIEUR MAROCLEAR BMCE Agreement 7/6/94 ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 320 NAMIBIA STANDARD BANK NAMIBIA FOR STANDARD BANK OF SOUTH AFRICA None Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 10/3/96 ------------------------------------------------------------------------------------------------------------------------------------ 325 NETHERLANDS ABN-AMRO BANK NECIGEF ABN-AMRO Agreement 12/19/88 ------------------------------------------------------------------------------------------------------------------------------------ 330 NEW ZEALAND NATIONAL AUSTRALIA BANK LTD., AUCKLAND NZCSD National Australia Bank Agreement 5/1/85 Agreement Amendment 2/13/92 Omnibus Amendment 11/22/93 New Zealand Addendum 3/7/89 ------------------------------------------------------------------------------------------------------------------------------------ 335 NORWAY CHRISTIANIA BANK VPS Christiania Bank Agreement 3/2/89 ------------------------------------------------------------------------------------------------------------------------------------ 345 OMAN BRITISH BANK OF THE MIDDLE EAST FOR HONGKONG & SHAGHAI BANKING CORP. MSM LTD. Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 BBME Supplement 5/14/96 Side letter Agreement dated 7/28/97 ------------------------------------------------------------------------------------------------------------------------------------ 350 PAKISTAN STANDARD CHARTERED BANK, KARACHI CDC Standard Chartered Bank Agreement 2/18/92 Omnibus Amendment 6/13/94 Appendix 4/8/96 ------------------------------------------------------------------------------------------------------------------------------------ 360 PERU CITIBANK N.A., LIMA CAVALI Citibank, N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 365 PHILIPPINES CITIBANK, N.A., MANILA PCD Citibank, N.A., New York Agreement 7/16/81 ROSS New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 375 POLAND CITIBANK (POLAND), S.A. FOR CITIBANK, N.A. NDS Citibank, N.A., New York Agreement 7/16/81 National Bank of Poland New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 Citibank Subsidiary Amendment 10/30/95 Citibank, N.A./Citibank Poland S.A. Agt. 11/6/92 ------------------------------------------------------------------------------------------------------------------------------------ 380 PORTUGAL BANCO COMERCIAL PORTUGUES CVM Banco Comercial Portugues 5/18/98 ------------------------------------------------------------------------------------------------------------------------------------ 383 PORTUGAL BANCO ESPIRITO SANTO E COMERCIAL DE LISBOA, S.A. CVM BESCL Agreement 4/26/89 Omnibus Amendment 2/23/94 ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 385 ROMANIA ING BANK N.V. SNCDD ING Bank N.V. Agreement 9/29/97 BSE NBR ------------------------------------------------------------------------------------------------------------------------------------ 395 RUSSIA CITIBANK T/O FOR CITIBANK, N.A. VTD Citibank, N.A., New York Agt. 7/16/81 NDC New York Agreement Amendments 8/31/90 and 7/26/96 Citibank, N.A. Subsidiary Amendment 10/19/95 Citibank N.A./Citibank T/O Agt. 6/16/97 Side Letter Agt. 8/18/97 Requires an Amendment to the Custodian Agreement ------------------------------------------------------------------------------------------------------------------------------------ 400 SINGAPORE HONGKONG & SHANGHAI BANKING CORP. LTD., SINGAPORE CDP Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Supplement 12/29/93 Schedule 5/14/96 ------------------------------------------------------------------------------------------------------------------------------------ 413 SLOVAKIA CESKOSLOVENSKA OBCHODNA BANKA, A.S., BRATISLAVA SCP Ceskoslovenska Obchodna Banka Agreement 10/12/94 National Bank of Slovakia ------------------------------------------------------------------------------------------------------------------------------------ 415 SLOVAKIA ING BANK N.V. SCP Master Subcustodian Agreement Pending National Bank of Slovakia ------------------------------------------------------------------------------------------------------------------------------------ 425 SOUTH AFRICA FIRST NATIONAL BANK OF SOUTHERN AFRICA CD First National Bank of Southern Africa Agt. 8/7/91 ------------------------------------------------------------------------------------------------------------------------------------ 440 SPAIN BANCO SANTANDER SCLV Banco Santander Agreement 12/14/88 Banco de Espana ------------------------------------------------------------------------------------------------------------------------------------ 445 SRI LANKA HONGKONG & SHANGHAI BANKING CORP. LTD., COLOMBO CDS Hongkong & Shanghai Banking Corp., Agt. 4/19/91 Omnibus Supplemental 12/29/93 Schedule 5/14/96 ------------------------------------------------------------------------------------------------------------------------------------ 450 SWAZILAND STANBIC BANK SWAZILAND LIMITED FOR STANDARD None BANK OF SOUTH AFRICA Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 9/29/97 ------------------------------------------------------------------------------------------------------------------------------------ 455 SWEDEN SKANDINAVISKA ENSKILDA BANKEN VPC Skandinaviska Enskilden Banken Agreement 2/20/89 Omnibus Amendment 12/3/93 ------------------------------------------------------------------------------------------------------------------------------------ 460 SWITZERLAND UBS AG SEGA Union Bank of Switzerland Agreement 12/20/88 Omnibus Amendment 11/29/94 ------------------------------------------------------------------------------------------------------------------------------------
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------------------------------------------------------------------------------------------------------------------------------------ COUNTRY SUBCUSTODIAN DEPOSITORIES ------- ------------ ------------ ------------------------------------------------------------------------------------------------------------------------------------ 475 TAIWAN STANDARD CHARTERED BANK, TAIPEI TSCD Standard Chartered Bank Agreement 2/18/92 Omnibus Amendment 6/13/94 Appendix 4/8/96 ------------------------------------------------------------------------------------------------------------------------------------ 480 THAILAND HONGKONG & SHANGHAI BANKING CORP. LTD., BANGKOK TSDC Hongkong & Shanghai Banking Corp. Agt. 4/19/91 Omnibus Amendment 12/29/93 Schedule 5/14/96 ------------------------------------------------------------------------------------------------------------------------------------ 483 TRANSNATIONAL BROWN BROTHERS HARRIMAN & CO. Cedel Euroclear ------------------------------------------------------------------------------------------------------------------------------------ 485 TURKEY CITIBANK, N.A., ISTANBUL Takasbank Citibank, N.A., New York Agreement 7/16/81 Central Bank of Turkey New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 510 UNITED KINGDOM MIDLAND BANK PLC CGO Midland Bank Agreement 8/8/90 CMO Omnibus Amendment 12/15/93 CrestCo. ------------------------------------------------------------------------------------------------------------------------------------ 520 URUGUAY BANKBOSTON, N.A., MONTEVIDEO None The First National Bank of Boston Agreement 1/5/88 Omnibus Amendment 2/22/94 Amendment 7/29/96 ------------------------------------------------------------------------------------------------------------------------------------ 525 VENEZUELA CITIBANK, N.A., CARACAS CVV Citibank, N.A., New York Agreement 7/16/81 New York Agreement Amendment 8/31/90 New York Agreement Amendment 7/26/96 ------------------------------------------------------------------------------------------------------------------------------------ 530 ZAMBIA STANBIC BANK ZAMBIA LTD. FOR STANDARD BANK OF SOUTH AFRICA LuSE Central Shares Standard Bank of South Africa Agreement 3/11/94 Depository Ltd. Subsidiary Amendment 10/3/96 ------------------------------------------------------------------------------------------------------------------------------------ 535 ZIMBABWE STANBIC BANK ZIMBABWE LTD. FOR STANDARD BANK OF SOUTH AFRICA None Standard Bank of South Africa Agreement 3/11/94 Subsidiary Amendment 10/3/96 ------------------------------------------------------------------------------------------------------------------------------------
-20- I HEREBY CERTIFY THAT AT ITS MEETING ON NOVEMBER 12, 1998, THE BOARD APPROVED THE COUNTRIES, SUBCUSTODIANS, AGREEMENTS AND CENTRAL DEPOSITORIES LISTED ON THIS APPENDIX. /s/ Frank M. Maresca ------------------------------ SIGNATURE NAME: Frank J. Maresca TITLE: Vice President & Treasurer DATE: November 12, 1998 -21- NETHERLANDS NEW ZEALAND NORWAY OMAN PAKISTAN PERU PHILIPPINES POLAND PORTUGAL ROMANIA RUSSIA SINGAPORE SLOVAKIA SOUTH AFRICA SPAIN SRI LANKA SWAZILAND SWEDEN SWITZERLAND TAIWAN THAILAND TURKEY UNITED KINGDOM URUGUAY VENEZUELA ZAMBIA ZIMBABWE -22- SCHEDULE 2 INFORMATION REGARDING COUNTRY RISK To aid the Board in its determinations regarding Country Risk, the Delegate will furnish the Board annually with respect to the jurisdictions specified in Schedule 1, the following information: 1. Copy of Addenda or Side Letters to Subcustodian Agreements 2. Legal Opinion, if available, with regard to: (a) Access to books and records by the Fund's accountants (b) Ability to recover assets in the event of bankruptcy of a custodian (c) Ability to recover assets in the event of a loss (d) Likelihood of expropriation or nationalization, if available (e) Ability to repatriate or convert cash or cash equivalents 3. Audit Report of Subcustodian 4. Copy of Balance Sheet from Annual Report of Subcustodian 5. Summary of Central Depository Information including (on an ongoing basis) prompt information as to any material change in the established practices and procedures of any Securities Depository. 6. Country Profile Matrix containing market practice for: (a) Delivery versus payment (b) Settlement method (c) Currency restrictions (d) Buy-in practice -23- (e) Foreign ownership limits (f) Unique market arrangements affecting custody or settlement -24- ADDENDUM TO THE APPENDIX A -------------------------- Brown Brothers Harriman & Co. acting as delegate of the Board under Rule 17f-5 has reviewed and approved the subcustodians listed on this Appendix as well as Agreements associated with these subcustodians, this Appendix is intended to confirm placement of assets with these subcustodians. Depositories listed on this Appendix that are not included in the next paragraph are considered compulsory. Brown Brothers Harriman & Co. does not accept delegation for compulsory depositories. The depositories in Chile, Colombia, and Venezuela are presently elective. It is not the current intention of Brown Brothers Harriman & Co. to use such depositories unless their use becomes compulsory. Euroclear is compulsory for fixed income obligations and elective for equities. Currently, Brown Brothers Harriman & Co. uses Euroclear for settlement of equities where we are instructed to do so. We do not use Euroclear for the ongoing safekeeping of equities. We will be replacing Canadian Imperial Bank of Commerce (CIBC) with Royal Bank of Canada (RBC) as subcustodian in Canada in the first quarter of 1999. As you may know, BBH&Co. has employed a strategy of appointing multiple subcustodians in certain markets when conditions warrant. Brown Brothers Harriman & Co. will be converting assets from CSOB in the Czech Republic to Citibank a.s. for Citibank N.A. in the first quarter of 1999. Brown Brothers Harriman & Co. will be converting assets from BESCL in Portugal to Banco Comercial Portugues in the fourth quarter of 1998. Brown Brothers Harriman & Co. will be converting assets from CSOB in Slovakia to Internationale Nederlanden Bank N.V. in the first quarter of 1999. -25-