Common use of AML Reporting Clause in Contracts

AML Reporting. (a) On a quarterly basis, the Transfer Agent shall provide a report to the Fund on its performance of the AML Delegated Duties, among other compliance items, which report shall include information regarding the number of: (i) potential incidents involving cash and cash equivalents or unusual or suspicious activity, (ii) Forms 8300 and SARs filed on behalf of the Fund, (iii) outstanding customer verification items, (iv) potential and confirmed matches against the known offender and OFAC databases and (v) potential and confirmed matches in connection with FinCen requests. Notwithstanding anything in this Section 4.3(a) to the contrary, the Transfer Agent reserves the right to amend and update the form of its AML reporting from time to time to comply with new or amended requirements of applicable law or to enhance its Compliance+ program. (b) At least annually, the Transfer Agent will arrange for independent testing (an audit) of the AML services it provides to its clients on an organization-wide basis by a qualified independent auditing firm. The Transfer Agent will provide the AML compliance officer of the Fund with the results of the audit and testing, including any material deficiencies or weaknesses identified and any remedial steps that will be taken or have been taken by the Transfer Agent to address such material deficiencies or weaknesses. ▇▇▇▇▇▇ ASSOCIATES INVESTMENT TRUST BOSTON FINANCIAL DATA SERVICES, INC. By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇ BY: /s/ ▇▇▇▇▇▇▇ ▇▇▇ ---------------------------------- ---------------------------------- Name: ▇▇▇▇ ▇. ▇▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇▇▇ -------------------------------- -------------------------------- Title: President Title: Senior Vice President ------------------------------- ------------------------------- As an Authorized Officer on behalf of the Fund listed above. SCHEDULE 1.3 SERVICE LEVEL AGREEMENT Dated: October 1, 2005 OVERVIEW The standards below represent the levels and standards which the Transfer Agent is generally achieving in its day-to-day operations and which the Fund may reasonably expect the Transfer Agent to generally achieve. Notwithstanding anything in the Transfer Agency and Service Agreement or any schedule or exhibit thereto (the "Agreement") to the contrary, this does not mean, and, the Transfer Agent neither represents, warrants or covenants that, nor does the Fund necessarily expect, that the Transfer Agent shall always meet, fulfill or comply with the levels and standards set forth below at all times. Rather, it is the expectation of the parties that, in the event of a failure to meet, fulfill or comply with the levels and standards set forth below, the parties shall coordinate and cooperate to correct the inadequacies as set forth immediately below in "Service Level Standard Resolution". SERVICE LEVEL STANDARD RESOLUTION Notwithstanding the Transfer Agent's best efforts to achieve the levels and standards herein, the Fund acknowledges that such levels and standards may not be met at all times. In the event that there is a failure to meet a service level or standard, the Transfer Agent shall promptly notify the senior officer designated by the Fund. Thereafter, the parties shall meet to discuss the reason(s) that the Transfer Agent failed to meet such service level or standard with a view to restoring compliance with such level as quickly as reasonably possible under the circumstances to avoid a repeated failure by the Transfer Agent. As part of the resolution process, the parties may, as agreed upon, amend the service level or standard listed below. The parties agree that if the Transfer Agent does not meet (i) the majority of timeliness standards or (ii) the overall quality standard for a period of three (3) consecutive months as measured on a monthly basis and the Transfer Agent, after receiving written notice of such failure from the Fund, does not remedy the failure to meet such service level or standard for forty-five (45) days following such consecutive three (3) month period (or such longer period of time as the parties may agree upon) then the Fund may terminate the Agreement for cause upon at least sixty (60) days' advance written notice to the Transfer Agent (the foregoing, a "Service Level Termination Right").

AML Reporting. (a) On a quarterly basis, the Transfer Agent shall provide a report to the Fund on its performance of the AML Delegated Duties, among other compliance items, which report shall include information regarding the number of: (i) potential incidents involving cash and cash equivalents or unusual or suspicious activity, (ii) Forms 8300 and SARs filed on behalf of the Fund, (iii) outstanding customer verification items, (iv) potential and confirmed matches against the known offender and OFAC databases and (v) potential and confirmed matches in connection with FinCen requests. Notwithstanding anything in this Section 4.3(a) to the contrary, the Transfer Agent reserves the right to amend and update the form of its AML reporting from time to time to comply with new or amended requirements of applicable law or to enhance its Compliance+ program. (b) At least annually, the Transfer Agent will arrange for independent testing (an audit) of the AML services it provides to its clients on an organization-wide basis by a qualified independent auditing firm. The Transfer Agent will provide the AML compliance officer of the Fund with the results of the audit and testing, including any material deficiencies or weaknesses identified and any remedial steps that will be taken or have been taken by the Transfer Agent to address such material deficiencies or weaknesses. ▇▇▇▇▇▇▇▇▇▇ ASSOCIATES INVESTMENT TRUST INSTITUTIONAL SERIES BOSTON FINANCIAL DATA SERVICES, INC. By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇ BYBy: /s/ ▇▇▇▇▇▇▇ ▇▇▇ ---------------------------------- ---------------------------------- Name: ▇▇▇▇ ▇. ▇▇▇▇▇ Name: ▇▇▇▇▇▇▇ ▇▇▇ -------------------------------- -------------------------------- Title: President Title: Senior Vice President ------------------------------- ------------------------------- As an Authorized Officer on behalf of the Fund listed above. Schedule 1.2(f) - 3 SCHEDULE 1.3 SERVICE LEVEL AGREEMENT Dated: October 1, 2005 OVERVIEW Overview The standards below represent the levels and standards which the Transfer Agent is generally achieving in its day-to-day operations and which the Fund may reasonably expect the Transfer Agent to generally achieve. Notwithstanding anything in the Transfer Agency and Service Agreement or any schedule or exhibit thereto (the "Agreement") to the contrary, this does not mean, and, the Transfer Agent neither represents, warrants or covenants that, nor does the Fund necessarily expect, that the Transfer Agent shall always meet, fulfill or comply with the levels and standards set forth below at all times. Rather, it is the expectation of the parties that, in the event of a failure to meet, fulfill or comply with the levels and standards set forth below, the parties shall coordinate and cooperate to correct the inadequacies as set forth immediately below in "Service Level Standard Resolution". SERVICE LEVEL STANDARD RESOLUTION Service Level Standard Resolution Notwithstanding the Transfer Agent's best efforts to achieve the levels and standards herein, the Fund acknowledges that such levels and standards may not be met at all times. In the event that there is a failure to meet a service level or standard, the Transfer Agent shall promptly notify the senior officer designated by the Fund. Thereafter, the parties shall meet to discuss the reason(s) that the Transfer Agent failed to meet such service level or standard with a view to restoring compliance with such level as quickly as reasonably possible under the circumstances to avoid a repeated failure by the Transfer Agent. As part of the resolution process, the parties may, as agreed upon, amend the service level or standard listed below. The parties agree that if the Transfer Agent does not meet (i) the majority of timeliness standards or (ii) the overall quality standard for a period of three (3) consecutive months as measured on a monthly basis and the Transfer Agent, after receiving written notice of such failure from the Fund, does not remedy the failure to meet such service level or standard for forty-five (45) days following such consecutive three (3) month period (or such longer period of time as the parties may agree upon) then the Fund may terminate the Agreement for cause upon at least sixty (60) days' advance written notice to the Transfer Agent (the foregoing, a "Service Level Termination Right").