Common use of SUB-CUSTODIANS Clause in Contracts

SUB-CUSTODIANS. The Custodian may from time to time appoint one or more Sub-Custodians, provided that, such Sub-Custodians possess the qualifications necessary to satisfy the requirements of Section 17(f) of the 1940 Act. The Custodian’s responsibility with respect to any Securities or cash held by a Sub-Custodian (other than an affiliate of the Custodian) is limited to the failure on the part of the Custodian to exercise reasonable care in the selection or retention of such Sub-Custodian in light of prevailing settlement and securities handling practices, procedures and controls in the relevant market. The Custodian shall notify the Companies of any such Sub-Custodian retained by the Custodian in respect of any Securities or other Assets of the Companies. If instructed by a Company to do so, the Custodian shall appoint a different Sub-Custodian in respect of the Securities and other Assets of such Company. With respect to any Losses incurred by the Companies as a result of the acts or the failure to act by any Sub-Custodian (other than an affiliate of the Custodian), the Custodian shall take appropriate action to recover such Losses from such Sub-Custodian; and the Custodian’s sole responsibility and liability to a Company shall be limited to amounts so received from such Sub-Custodian (exclusive of costs and expenses incurred by the Custodian).