Common use of New Countries Clause in Contracts

New Countries. The Custodian and the Funds or Companies will work together in good faith to arrange for custody in such new markets as a Fund or Company may request, recognizing that it may not be possible to secure an eligible foreign custodian meeting the requirements of Rule 17f-5 under the 1940 Act, as applicable. Each Fund or Company shall be responsible for informing the Custodian sufficiently in advance of a proposed investment that is to be held in a country in which no Subcustodian is authorized to act in order that the Custodian shall, if it deems appropriate to do so, have sufficient time to establish a subcustodial arrangement in accordance herewith. In the event, however, the Custodian is unable to establish such arrangements prior to the time such investment is to be acquired, the Custodian shall provide notice of such fact to the Fund or Company and, upon authorization by the Fund or Company, may designate at its discretion a local safekeeping agent, and the use of such local safekeeping agent shall be at the sole risk of the Fund or Company, and accordingly the Custodian shall be responsible to the Fund or Company for the actions of such agent if and only to the extent the Custodian shall have recovered from such agent for any damages caused the Trust, Fund or Company by such agent.