Common use of Optional Dividends Clause in Contracts

Optional Dividends. With respect to optional dividends, the cash dividend will be accrued as described in Section 9.1. If the Client elects to receive stock rather than cash, the Custodian will reverse the cash accrual and create a stock receivable. The Custodian will credit the Client with the new shares upon actual receipt in the market. For those markets where a tax payment must be charged, the Custodian will inform the Client of the tax in the original optional dividend notification that is sent to the Client. The Custodian will accept standing instructions for optional stock dividends, as specified by the Client in Appendix 11. With respect to discretionary securities lending transactions, the Custodian will notify the Client of entitlements due to the Client on all security lending positions. The Client must send a copy of the instructions given by the Client to the borrowing brokers prior to the Custodian’s response deadline.

Optional Dividends. With respect to optional dividends, the cash dividend will be accrued as described in Section 9.18. 1. If the Client elects to receive stock rather than cash, the Custodian will reverse the cash accrual and create a stock receivable. The Custodian will credit the Client with the new shares upon actual receipt in the market. For those markets where a tax payment must be charged, the Custodian will inform the Client of the tax in the original optional dividend notification that is sent to the Client. The Custodian will accept standing instructions for optional stock dividends, as specified by the Client in Appendix 118. With respect to discretionary securities lending transactions, the Custodian will notify the Client of entitlements due to the Client on all security lending positions. The Client must send a copy of the instructions given by the Client to the borrowing brokers prior to the Custodian’s 's response deadline.