Provisions Relating to Rule 17f 5 Clause Samples

The "Provisions Relating to Rule 17f-5" clause defines the requirements and procedures for the custody of investment assets with foreign financial institutions, in accordance with SEC Rule 17f-5. It typically outlines the criteria for selecting eligible foreign custodians, the responsibilities of the fund and its custodian in monitoring these arrangements, and the steps to be taken if a foreign custodian no longer meets regulatory standards. This clause ensures that investment funds comply with regulatory safeguards when holding assets overseas, thereby mitigating risks associated with international asset custody and protecting investors.