AMENDMENT No. 3, dated as of May 1, 2001 to the custody agreements (each an
"Agreement"), between the Franklin Xxxxxxxxx funds listed on Schedule A hereto
(each a "Fund"), having a place of business at 0000 Xxxx Xxxxxxx Xxxx., Xx.
Xxxxxxxxxx, XX 00000, and The Chase Manhattan Bank ("Bank"), having a place of
business at 000 Xxxx Xxx., Xxx Xxxx, X.X. 00000-0000.
It is hereby agreed as follows:
Section 1. Except as modified hereby, the Agreement is confirmed in all
respects. Capitalized terms used herein without definition shall have the
meanings ascribed to them in the Agreement. This Amendment supersedes in all
respects Amendment No 2 between the parties, dated July 23, 1998, which shall
have no further force or effect as and after the date hereof.
Section 2. Delete all of Section 2 of the Agreement after subsection (B.)
thereof. h entity.
Section 3. The following definitions are added to Section 3 of the
Agreement in appropriate alphabetic sequence:
(i) The term Subcustodian as used herein shall mean the following:
(a) a "U.S. Bank," which shall mean a U.S. bank as defined in rule
17f-5(a)(7) under the Investment Company Act of 1940, as amended ("1940 Act")
promulgated by the Securities and Exchange Commission ("SEC"); and
(b) an "Eligible Foreign Custodian," which, as defined in 1940 Act rule
17f-5(a)(1) and (5), shall mean (i) a banking institution or trust company,
incorporated or organized under the laws of a country other than the United
States, that is regulated as such by that country's government or an agency
thereof, and (ii) a majority-owned direct or indirect subsidiary of a U.S. Bank
or bank holding company which subsidiary is incorporated or organized under the
laws of a country other than the United States. In addition, an Eligible Foreign
Custodian shall also mean any other entity that shall have been so qualified by
exemptive order, rule or other appropriate action of the SEC.
(ii) The term "securities depository" as used herein shall mean the
following when referring to a securities depository located:
(a) outside the U.S,. an "Eligible Securities Depository" which, in turn,
shall have the same meaning asin 1940 Act rule 17f-7(b)(1)(i)-(vi) as the same
may be amended from time to time, or that has otherwise been made exempt by an
SEC exemptive order, rule other appropriate SEC action, except that prior to the
compliance date with rule 17f-7 for a particular securities depository the term
"securities depository" shall be as defined in (a)(1)(ii)-(iii) of the 1997
amendments to 1940 Act rule 17f-5.
(b) in the U.S., a "securities depository" as defined in 1940 Act rule
17f-4(a).
Section 4. Add the following at the end of Section 3 of the Agreement:
"For purposes of clarity, it is understood and agreed that the term
Subcustodian shall not include any securities depository. For purposes of the
provisions of the Agreement imposing liability on Bank, the term Subcustodian
shall not include any Eligible Foreign Custodian as to which Bank has not acted
as Foreign Custody Manager."
Section 5. Add the following at the end of Section 3(d):
"and which shall be limited to Eligible Foreign Custodians as defined in (i)(b)
of the definition of Eligible Foreign Custodians contained herein; provided
that, for purposes of the sections of this Agreement addressing Chase liability
(including, but not limited to, Sections 7, 10, 14, and 16-17), Foreign Bank
shall not include any Foreign Bank as to which Chase has not acted as Foreign
Custody Manager."
Section 6. Add the following at the end of Section 3(e):
"and which shall be limited to Eligible Securities Depositories as defined in
(ii)(a) of the definition of Eligible Securities Depositories contained herein;
provided that, for purposes of the sections of this Agreement addressing Chase
liability (including, but not limited to, Sections 7, 10, 14, and 16-17) the
term Foreign Securities Depository shall be deleted."
Section 7. Delete the word "and" at the end of Section 4(b) of the
Agreement and add the following at the end of Section 4(c) of the Agreement:
"; and (d) the risk analysis furnished by Chase pursuant to Section 24(a)
hereof".
Section 8. Delete existing Section 5 of the Agreement and, insert, in lieu
thereof, the following:
"At the request of Fund, Chase may, but need not, add an Eligible Foreign
Custodian where Chase has not acted as Foreign Custody Manager with respect to
the selection thereof; provided that, any such entities shall not be included
for purposes of the sections of this Agreement addressing Chase liability
(including, but not limited to, Sections 7, 10, 14, and 16-17). Chase shall
notify Fund in the event that it elects to add any such entity."
Section 9. Add the following language to the end of Section 6(a) of the
Agreement:
"or, in the case of cash deposits, except for liens or rights in favor of
creditors of the Subcustodian arising under bankruptcy, insolvency or similar
laws."
Section 10. Add new Section 23 to the Agreement as follows:
23. COMPLIANCE WITH 1940 ACT RULE 17F-5 ("RULE 17F-5").
(a) Fund's board of directors (or equivalent body) (hereinafter "Board")
hereby delegates to Bank, and Bank hereby accepts the delegation to it of, the
obligation to perform as Fund's "Foreign Custody Manager" (as that term is
defined in rule 17f-5(a)(3)), including for the purposes of: (i) selecting
"Eligible Foreign Custodians" (as that term is defined in rule 17f-5(a)(1), as
the same may be amended from time to time, or that have otherwise been exempted
by SEC exemptive order, rule other appropriate SEC action) to hold Fund's
"Foreign Assets" (as that term is defined in rule 17f-5(a)(2), and (ii)
evaluating the contractual arrangements with such Eligible Foreign Custodians
(as set forth in rule 17f-5(c)(2)), and (iii) monitoring such foreign custody
arrangements (as set forth in rule 17f-5(c)(3)).
(b) In connection with the foregoing, Bank shall:
(i) provide written reports notifying Fund's Board of the placement of Foreign
Assets with particular Eligible Foreign Custodians and of any material change in
the arrangements with such Eligible Foreign Custodians, with such reports to be
provided to Fund's Board at such times as the Board deems reasonable and
appropriate based on the circumstances of Fund's foreign custody arrangements
but until further notice from Fund requesting a different schedule, such reports
shall be provided not less than quarterly in summary form, with a more detailed
report annually.
(ii) exercise such reasonable care, prudence and diligence in performing as
Fund's Foreign Custody Manager as a person having responsibility for the
safekeeping of Foreign Assets would exercise;
(iii) in selecting an Eligible Foreign Custodian, first have determined that
Foreign Assets placed and maintained in the safekeeping of such Eligible Foreign
Custodian shall be subject to reasonable care, based on the standards applicable
to custodians in the relevant market, after having considered all factors
relevant to the safekeeping of such Assets, including, without limitation, those
factors set forth in rule 17f-5(c)(1)(i)-(iv);
(iv) determine that the written contract with the Eligible Foreign Custodian
requires that the Eligible Foreign Custodian will provide reasonable care for
Foreign Assets based on the standards applicable to custodians in the relevant
market as provided in rule 17f-5(c)(2); and
(v) have established a system to monitor the continued appropriateness of
maintaining Foreign Assets with particular Eligible Foreign Custodians and
performance of the governing contractual arrangements; it being understood,
however, that in the event that Bank shall have determined that the existing
Eligible Foreign Custodian in a given country would no longer afford Foreign
Assets reasonable care and that no other Eligible Foreign Custodian in that
country would afford reasonable care, Bank shall promptly so advise Fund and
shall then act in accordance with the Instructions of Fund with respect to the
disposition of the affected Foreign Assets.
Subject to (b)(i)-(v) above, Bank is hereby authorized to place and maintain
Foreign Assets on behalf of Fund with Eligible Foreign Custodians pursuant to a
written contract deemed appropriate by Bank.
(c) Except as expressly provided herein and in Section 24 hereof, Fund
shall be solely responsible to assure that the maintenance of Foreign Assets
hereunder complies with the rules, regulations, interpretations and exemptive
orders promulgated by or under the authority of the SEC.
(d) Bank represents to Fund that it is a U.S. Bank as defined in rule
17f-5(a)(7). Fund represents to Bank that: (1) the Assets being placed and
maintained in Bank's custody are subject to the Investment Company Act of 1940,
as amended (the "1940 Act") as the same may be amended from time to time; (2)
its Board (or other governing body) has determined that it is reasonable to rely
on Bank to perform as Fund's Foreign Custody Manager; and (3) its Board (or
other governing body) or its investment adviser shall have determined that Fund
may maintain Foreign Assets in each country in which Fund's Foreign Assets shall
be held hereunder and determined to accept the risks arising therefrom
(including, but not limited to, a country's financial infrastructure, prevailing
custody and settlement practices, laws applicable to the safekeeping and
recovery of Foreign Assets held in custody, and the likelihood of
nationalization, currency controls and the like) (collectively ("Country
Risk")). Nothing contained herein shall require Bank to make any selection on
behalf of Fund that would entail consideration of Country Risk and, except as
may be provided in (e) below, to engage in any monitoring of Country Risk.
(e) Bank shall provide to Fund such information relating to Country Risk as
is specified in Schedule C hereto. Fund hereby acknowledges that: (i) such
information is solely designed to inform Fund of market conditions and
procedures and is not intended as a recommendation to invest or not invest in
particular markets; and (ii) Bank has gathered the information from sources it
considers reliable, but that Bank shall have no responsibility for inaccuracies
or incomplete information.
Section 11. Add a new Section 24 to the Agreement as follows:
24. COMPLIANCE WITH 1940 ACT RULE 17F-7 ("RULE 17F-7").
(a) Bank shall, for consideration by Fund, provide an analysis in
accordance with rule 17f-7(a)(1)(i)(A) of the custody risks associated with
maintaining Fund's Foreign Assets with each Eligible Securities Depository used
by Bank as of the date hereof (or, in the case of an Eligible Securities
Depository not used by Bank as of the date hereof, prior to the initial
placement of Fund's Foreign Assets at such Depository) and at which any Foreign
Assets of Fund are held or are expected to be held. The foregoing analysis will
be provided to Fund and its investment adviser(s) ("Adviser") at Bank's Website.
In connection with the foregoing, either Fund or Adviser shall notify Bank of
any Eligible Securities Depositories at which it does not choose to have its
Foreign Assets held. Bank shall monitor the custody risks associated with
maintaining Fund's Foreign Assets at each such Eligible Securities Depository on
a continuing basis and shall promptly notify Fund or Adviser of any material
changes in such risks.
(b) Bank shall exercise reasonable care, prudence and diligence in
performing the requirements set forth in Section 24(a) above.
(c) Based on the information available to it in the exercise of diligence,
Bank shall determine the eligibility under rule 17f-7 of each depository before
including it on Appendix 1-B hereto and shall promptly advise Fund and Adviser
if any Eligible Securities Depository ceases to be eligible. (Eligible
Securities Depositories used by Bank as of the date hereof are set forth in
Appendix 1-B hereto, and as the same may be amended on notice to Fund and
Adviser from time to time.)
*********************
IN WITNESS WHEREOF, the parties have executed this Amendment as of the date
first above written.
FRANKLIN XXXXXXXXX THE CHASE MANHATTAN BANK
On behalf of each of the Funds
listed on Schedule A hereto
By: /s/ Xxxx X. Xxx By: /s/ Xxxx X. Xxxxx
-------------------------------- ----------------------
Name: Xxxx X. Xxx Name: Xxxx Xxxxx
Title: Vice President Title: Vice President
Date: June 26, 2001 Date: 5/3/01
Schedule A
XXXXXXXXX U.S. FUNDS
As of April 1, 2001
P96299 XXXXXXXXX GROWTH FUND, INC. ("TGF") - 12/31/86
XXXXXXXXX FUNDS, INC. ("TFI") - 2/11/86
P96116 Xxxxxxxxx World Fund
P96117 Xxxxxxxxx Foreign Fund
P96118 TEMPLETON GLOBAL SMALLER COMPNAIES FUND, INC. ("TGSCF") - 5/15/96
TEMPLETON INCOME TRUST ("TIT") - 5/15/96
P96271 Xxxxxxxxx Global Bond Fund
P96766 XXXXXXXXX CAPITAL ACCUMULATOR FUND, INC. ("TCAF") - 1/14/91
P96847 XXXXXXXXX DEVELOPING MARKETS TRUST ("TDMT") - 10/16/91
TEMPLETON INSTITUTIONAL FUNDS, INC. ("TIFI") - 1/29/96
P96721 Foreign Equity Series
P80289 Emerging Markets Series
P81800 Emerging Fixed Income Market Series
P96583 TEMPLETON GLOBAL OPPORTUNITIES TRUST ("TGOT") - 1/18/90
TEMPLETON GLOBAL INVESTMENT TRUST ("TGIT") - 5/7/95
P81021 Xxxxxxxxx International Fund
P81020 Templeton Latin America Fund
P96309 XXXXXXXXX EMERGING MARKETS FUND, INC. ("TEMF") - 2/1/87
P96518 XXXXXXXXX GLOBAL INCOME FUND, INC. ("TGIF") - 2/29/88
P96340 TEMPLETON GLOBAL GOVERNMENTS INCOME TRUST ("TGG") - 10/22/88
P80394 XXXXXXXXX EMERGING MARKETS INCOME FUND, INC. ("TEMIF") - 9/17/93
P96311 XXXXXXXXX CHINA WORLD FUND, INC. ("TCWF") - 9/7/93
Schedule A (continued)
XXXXXXXXX U.S. FUNDS
As of April 1, 2001
P49247 &
P80672 XXXXXXXXX EMERGING MARKETS APPRECIATION FUND, INC. ("TEMAF") 4/22/94
P80816 XXXXXXXXX DRAGON FUND, INC. ("TDF") - 8/30/94
P80815 TEMPLETON VIETNAM AND SOUTHEAST ASIA FUND, INC. ("TVF") - 9/15/94
P80906 XXXXXXXXX RUSSIA FUND, INC. ("TRF") - 6/15/95
SECURITIES DEPOSITORIES
AS OF September 27, 2000
Schedule B
ELIGIBLE SECURITIES DEPOSITORIES
---------------------------------------------------------------------------------------------------------
COUNTRY DEPOSITORY INSTRUMENTS
---------------------------------------------------------------------------------------------------------
Argentina CVSA Equity, Corporate + Government Debt
(Caja de Valores S.A.)
---------------------------------------------------------------------------------------------------------
Argentina CRYL Government Debt
(Central de Registration y Liquidacion de
Instrumentos de Endeudamiento Publico)
---------------------------------------------------------------------------------------------------------
Australia Austraclear Limited Corporate Debt, Money Market + Semi-
Government Debt
---------------------------------------------------------------------------------------------------------
Australia CHESS Equity
(Clearing House Electronic Sub-register System)
---------------------------------------------------------------------------------------------------------
Australia RITS Government Debt
(Reserve Bank of Australia/Reserve Bank
Information and Transfer System)
---------------------------------------------------------------------------------------------------------
Austria OeKB Equity, Corporate + Government Debt
(Oesterreichische Kontrollbank AG)
---------------------------------------------------------------------------------------------------------
Belgium CIK Equity + Corporate Debt
(Caisse Interprofessionnelle de Depots et de
Virements de Titres S.A.)
---------------------------------------------------------------------------------------------------------
Xxxxxxx XXX Government Debt
(National Bank of Belgium)
---------------------------------------------------------------------------------------------------------
Brazil CBLC Equity
(Companhia Brasileira de Liquidacao e Custodia)
---------------------------------------------------------------------------------------------------------
Brazil CETIP Corporate Debt
(Central de Custodia e Liquidacao Financiera
de Titulos Privados)
---------------------------------------------------------------------------------------------------------
Brazil SELIC Government Debt
(Sistema Especial de Liquidacao e Custodia)
---------------------------------------------------------------------------------------------------------
Bulgaria BNB Government Debt
(Bulgaria National Bank)
---------------------------------------------------------------------------------------------------------
Bulgaria CDAD Equity
(Central Depository A.D.)
---------------------------------------------------------------------------------------------------------
Canada CDS Equity, Corporate + Government Debt
(The Canadian Depository for Securities
Limited)
---------------------------------------------------------------------------------------------------------
Chile DCV Equity, Corporate + Government Debt
(Deposito Central de Valores S.A.)
---------------------------------------------------------------------------------------------------------
China, Shanghai SSCCRC Equity
(Shanghai Securities Central Clearing and
Registration Corporation)
---------------------------------------------------------------------------------------------------------
China, Shenzhen SSCC Equity
(Shenzhen Securities Clearing Company, Limited)
---------------------------------------------------------------------------------------------------------
Colombia DCV Government Debt
(Deposito Central de Valores)
---------------------------------------------------------------------------------------------------------
Colombia DECEVAL Equity, Corporate + Government Debt
(Deposito Centralizado de Valores de Colombia
S.A.)
---------------------------------------------------------------------------------------------------------
Croatia SDA Equity + Government Debt
(Central Depository Agency Inc. - Stredisnja
depozitarna agencija d.d.)
---------------------------------------------------------------------------------------------------------
Croatia Ministry of Finance of the Republic of Croatia Short-term debt issued by the
Ministry of Finance.
---------------------------------------------------------------------------------------------------------
Croatia CNB Short-term debt issued by the
(Croatian National Bank) National Bank of Croatia.
---------------------------------------------------------------------------------------------------------
Czech Republic SCP Equity, Corporate + Government Debt
(Stredisko cennych papiru)
---------------------------------------------------------------------------------------------------------
Czech Republic CNB Government Debt
(Czech National Bank)
---------------------------------------------------------------------------------------------------------
Denmark VP Equity, Corporate + Government Debt
(Vaerdipapircentralen A/S)
---------------------------------------------------------------------------------------------------------
Egypt MCSD Equity + Corporate Debt
(Misr for Clearing, Settlement and Depository,
S.A.E.)
---------------------------------------------------------------------------------------------------------
Estonia ECDS Equity
(Estonian Central Depository for Securities
Limited - Eesti Vaatpaberite Keskdepositoorium)
---------------------------------------------------------------------------------------------------------
Euromarket DCC Euro-CDs
(The Depository and Clearing Centre)
---------------------------------------------------------------------------------------------------------
Euromarket Clearstream Euro-Debt
(Clearstream Banking, S.A.)
---------------------------------------------------------------------------------------------------------
Euromarket Euroclear Euro-Debt
---------------------------------------------------------------------------------------------------------
Finland APK Equity, Corporate + Government Debt
(Finnish Central Securities Depository Limited)
---------------------------------------------------------------------------------------------------------
France SICOVAM Equity, Corporate + Government Debt
(Societe Interprofessionnelle pour la
Compensation des Valeurs Mobilieres, S.A.)
---------------------------------------------------------------------------------------------------------
Germany Clearstream Equity, Corporate + Government Debt
(Clearstream Banking AG)
---------------------------------------------------------------------------------------------------------
Greece CSD Equity + Corporate Debt
(Central Securities Depository S.A.)
---------------------------------------------------------------------------------------------------------
Greece BoG Government Debt
(Bank of Greece)
---------------------------------------------------------------------------------------------------------
Hong Kong HKSCC Equity
(Hong Kong Securities Clearing Company Limited)
---------------------------------------------------------------------------------------------------------
Hong Kong CMU Corporate + Government Debt
(Central Moneymarkets Unit)
---------------------------------------------------------------------------------------------------------
Hungary KELER Equity, Corporate + Government Debt
(Central Depository and Clearing House -
Kosponti Elszamolohaz es Ertektar (Budapest)
Rt.)
---------------------------------------------------------------------------------------------------------
India NSDL Equity
(National Securities Depository Limited)
---------------------------------------------------------------------------------------------------------
India CDSL Equity
(Central Depository Services (India) Limited)
---------------------------------------------------------------------------------------------------------
India RBI Government Debt
(Reserve Bank of India)
---------------------------------------------------------------------------------------------------------
Indonesia KSEI Equity
(PT Kustodian Sentral Efek Indonesia)
---------------------------------------------------------------------------------------------------------
Ireland CREST Equity + Corporate Debt
(CRESTCo Limited)
---------------------------------------------------------------------------------------------------------
Ireland CBISSO Government Debt
(Central Bank of Ireland Securities
Settlements Office)
---------------------------------------------------------------------------------------------------------
Israel TASE Clearing House Equity, Corporate + Government Debt
(Tel Aviv Stock Exchange Clearing House)
---------------------------------------------------------------------------------------------------------
Italy Monte Titoli S.p.A. Equity + Corporate Debt
---------------------------------------------------------------------------------------------------------
Italy Banca d'Italia Government Debt
---------------------------------------------------------------------------------------------------------
Ivory Coast DC/BR Equity
(Le Depositaire Central / Banque de Reglement)
---------------------------------------------------------------------------------------------------------
Japan JASDEC Equity + Convertible Debt
(Japan Securities Depository Center)
---------------------------------------------------------------------------------------------------------
Japan BoJ Registered Government Debt
(Bank of Japan)
---------------------------------------------------------------------------------------------------------
Kazakhstan CSD Equity
(Central Securities Depository CJSC)
---------------------------------------------------------------------------------------------------------
Latvia LCD Equity, Corporate + Government Debt
(Latvian Central Depository)
---------------------------------------------------------------------------------------------------------
Lebanon Midclear X.X.X. Equity
(Custodian and Clearing Center of Financial
Instruments for Lebanon and the Middle East
X.X.X.)
---------------------------------------------------------------------------------------------------------
Lithuania CSDL Equity + Government Debt
(Central Securities Depository of Lithuania)
---------------------------------------------------------------------------------------------------------
Luxembourg Clearstream Equity
(Clearstream Banking S.A.)
---------------------------------------------------------------------------------------------------------
Malaysia MCD Equity + Corporate Debt
(Malaysian Central Depository Sdn. Bhd.)
---------------------------------------------------------------------------------------------------------
Mauritius CDS Equity + Corporate Debt
(Central Depository and Settlement Company
Limited)
---------------------------------------------------------------------------------------------------------
Mexico INDEVAL Equity, Corporate + Government Debt
(S.D. INDEVAL S.A. de C.V.)
---------------------------------------------------------------------------------------------------------
Morocco Maroclear Equity, Corporate + Government Debt
---------------------------------------------------------------------------------------------------------
Netherlands NECIGEF Equity, Corporate + Government Debt
(Nederlands Centraal Insituut voor Giraal
Effectenverkeer B.V.)
---------------------------------------------------------------------------------------------------------
New Zealand NZCSD Equity, Corporate + Government Debt
(New Zealand Central Securities Depository)
---------------------------------------------------------------------------------------------------------
Nigeria CSCS Equity, Corporate + Government Debt
(Central Securities Clearing System Limited)
---------------------------------------------------------------------------------------------------------
Norway VPS Equity, Corporate + Government Debt
(Verdipapirsentralen)
---------------------------------------------------------------------------------------------------------
Oman MDSRC Equity
(The Muscat Depository and Securities
Registration Company, S.A.O.C.)
---------------------------------------------------------------------------------------------------------
Pakistan CDC Equity + Corporate Debt
(Central Depository Company of Pakistan
Limited)
---------------------------------------------------------------------------------------------------------
Pakistan SBP Government Debt
(State Bank of Pakistan)
---------------------------------------------------------------------------------------------------------
Peru CAVALI Equity, Corporate + Government Debt
(CAVALI ICLV S.A.)
---------------------------------------------------------------------------------------------------------
Philippines PCD Equity
(Philippine Central Depository Inc.)
---------------------------------------------------------------------------------------------------------
Philippines ROSS Government Debt
(Bangko Sentral ng Pilipinas / Register of
Scripless Securities)
---------------------------------------------------------------------------------------------------------
Poland NDS Equity + Long-Term Government Debt
(National Depository for Securities S.A.)
---------------------------------------------------------------------------------------------------------
Poland CRT Short-Term Government Debt
(Central Registry of Treasury-Bills)
---------------------------------------------------------------------------------------------------------
Portugal CVM Equity, Corporate + Government Debt
(Central de Valores Mobiliarios e Sistema de
Liquidacao e Compensacao)
---------------------------------------------------------------------------------------------------------
Romania SNCDD Equity
(National Company for Clearing, Settlement and
Depository for Securities)
---------------------------------------------------------------------------------------------------------
Romania BSE Equity
(Bucharest Stock Exchange Registry)
---------------------------------------------------------------------------------------------------------
Russia VTB Government Debt (Ministry of Finance
(Vneshtorgbank) Bonds)
---------------------------------------------------------------------------------------------------------
Russia NDC Equity, Corporate + Government Debt
(National Depository Centre)
---------------------------------------------------------------------------------------------------------
Russia DCC Equity
(Depository Clearing Company)
---------------------------------------------------------------------------------------------------------
Singapore CDP Equity + Corporate Debt
(The Central Depository (Pte) Limited)
---------------------------------------------------------------------------------------------------------
Singapore SGS Government Debt
(Monetary Authority of Singapore / Singapore
Government Securities Book-Entry System)
---------------------------------------------------------------------------------------------------------
Slovak Republic SCP Equity, Corporate + Government Debt
(Stredisko cennych papierov SR Bratislava,
a.s.)
---------------------------------------------------------------------------------------------------------
Slovak Republic NBS Government Debt
(National Bank of Slovakia)
---------------------------------------------------------------------------------------------------------
Slovenia KDD Equity + Corporate Debt
(Centralna klirinsko depotna xxxxxx x.x.)
---------------------------------------------------------------------------------------------------------
South Africa CDL Corporate + Government Debt
(Central Depository (Pty) Limited)
---------------------------------------------------------------------------------------------------------
South Africa STRATE Equity
(Share Transactions Totally Electronic)
---------------------------------------------------------------------------------------------------------
South Korea KSD Equity, Corporate + Government Debt
(Korea Securities Depository)
---------------------------------------------------------------------------------------------------------
Spain SCLV Equity + Corporate Debt
(Servicio de Compensacion y Liquidacion de
Valores, S.A.)
---------------------------------------------------------------------------------------------------------
Spain CBEO Government Debt
(Banco de Espana / Central Book Entry Office)
---------------------------------------------------------------------------------------------------------
Sri Lanka CDS Equity
(Central Depository System (Private) Limited)
---------------------------------------------------------------------------------------------------------
Sweden VPC Equity, Corporate + Government Debt
(Vardepapperscentralen AB)
---------------------------------------------------------------------------------------------------------
Switzerland SIS Equity, Corporate + Government Debt
(SIS SegaInterSettle AG)
---------------------------------------------------------------------------------------------------------
Taiwan TSCD Equity + Government Debt
(Taiwan Securities Central Depository Co.,
Ltd.)
---------------------------------------------------------------------------------------------------------
Thailand TSD Equity, Corporate + Government Debt
(Thailand Securities Depository Company
Limited)
---------------------------------------------------------------------------------------------------------
Tunisia STICODEVAM Equity + Corporate Debt
(Societe Tunisienne Interprofessionnelle pour
la Compensation et le Depot des Valeurs
Mobilieres)
---------------------------------------------------------------------------------------------------------
Turkey TAKASBANK Equity + Corporate Debt
(IMKB Takas ve Saklama Bankasi A.S.)
---------------------------------------------------------------------------------------------------------
Turkey CBT Government Debt
(Central Bank of Turkey)
---------------------------------------------------------------------------------------------------------
United Kingdom CREST Equity + Corporate Debt
(CRESTCo Limited)
---------------------------------------------------------------------------------------------------------
United Kingdom CMO Sterling & Euro CDs + CP
(Central Moneymarkets Office)
---------------------------------------------------------------------------------------------------------
United States DTC Equity + Corporate Debt
(Depository Trust Company)
---------------------------------------------------------------------------------------------------------
United States PTC Mortgage Back Debt
(Participants Trust Company)
---------------------------------------------------------------------------------------------------------
United States FED Government Debt
(The Federal Reserve Book-Entry System)
---------------------------------------------------------------------------------------------------------
Uruguay BCU Government Debt
(Banco Central del Uruguay)
---------------------------------------------------------------------------------------------------------
Venezuela BCV Government Debt
(Banco Central de Venezuela)
---------------------------------------------------------------------------------------------------------
Zambia CSD Equity + Government Debt
(XxXX Central Shares Depository Limited)
---------------------------------------------------------------------------------------------------------
Zambia BoZ Government Debt
(Bank of Zambia)
---------------------------------------------------------------------------------------------------------
Schedule C
Information Regarding Country Risk
----------------------------------
1. To aid Fund in its determinations regarding Country Risk, Bank shall
furnish annually and upon the initial placing of Foreign Assets into a country
the following information (check items applicable):
A Opinions of local counsel concerning:
i. Whether applicable foreign law would restrict the access afforded Fund's
independent public accountants to books and records kept by an Eligible Foreign
Custodian located in that country.
ii. Whether applicable foreign law would restrict the Fund's ability to
recover its assets in the event of the bankruptcy of an Eligible Foreign
Custodian located in that country.
iii. Whether applicable foreign law would restrict the Fund's ability to
recover assets that are lost while under the control of an Eligible Foreign
Custodian located in the country.
B. Written information concerning:
i. The likelihood of expropriation, nationalization, freezes, or
confiscation of Fund's assets.
ii. Whether difficulties in converting Fund's cash and cash equivalents to
U.S. dollars are reasonably foreseeable.
C. A market report with respect to the following topics:
(i) securities regulatory environment, (ii) foreign ownership restrictions,
(iii) foreign exchange, (iv) securities settlement and registration, (v)
taxation, (vi) market settlement risk, (vii) Eligible Securities Depositories
(including Depository evaluation), if any.
2. Bank shall furnish the following additional information:
Market flashes, including with respect to changes in the information
in market reports.
