Common use of Purchase and Sale of Investments of the Fund Clause in Contracts

Purchase and Sale of Investments of the Fund. 1. Promptly after each purchase of securities by the Fund for which the Fund intends FIB to act as sub-custodian, an authorized person of the Fund shall, prior to 1:00 pm., Pacific Coast Time, give oral instructions to FIB specifying with respect to each such purchase: (a) the name of the issuer and title of the securities, (b) the number of shares or the principal amount purchased and accrued interest, if any, (c) the date of purchase and settlement, (d) the purchase price per unit, (e) the total amount payable upon such purchase, (f) the name of the person from whom or the broker through whom the purchase was made, (g) whether such purchase is to be settled through the Book-Entry System, and (h) whether the securities purchased are to be deposited in the Book-Entry System. FIB shall upon receipt of securities purchased by or for the Fund pay out of the moneys held for the account the total amount payable upon such purchase, provided that the same conforms to the total amount payable specified in the oral instructions. Purchases directed to be placed by FIB shall be made through its Bond Department.