CUSTOMER IDENTIFICATION SERVICES AMENDMENT
This Customer Identification Services Amendment (this "Amendment")
amends, as of the 1st day of October, 2003 (the "Effective Date"), the Transfer
Agency Services Agreement, dated as of December 18, 2000 between AFBA 5STAR
FUND, INC. (the "Company" or the "Fund") and PFPC Inc. ("PFPC") (the
"Agreement").
For valuable consideration, the receipt and sufficiency of which the
parties hereto hereby acknowledge, the Company and PFPC hereby agree as follows:
Section 1 (Addition of CIP Services section to the Agreement). As of
the Effective Date, the Agreement shall (without any further action by either of
the parities hereto) be amended by the addition of the following:
CIP Services. To help the Fund comply with its Customer
Identification Program (which the Fund is required to have under
regulations issued under Section 326 of the USA PATRIOT Act) PFPC
will do the following:
(a) Implement procedures under which new accounts in the Fund are
not established unless PFPC has obtained the name, date of
birth (for natural persons only), address and
government-issued identification number (collectively, the
"Data Elements") for each corresponding Customer (as defined
in 31 CFR 103.131).
(b) Use collected Data Elements to attempt to reasonably verify
the identity of each new Customer promptly before or after
each corresponding new account is opened. Methods may consist
of non-documentary methods (for which PFPC may use
unaffiliated information vendors to assist with such
verifications) and documentary methods (as permitted by 31 CFR
103.131), and may include procedures under which PFPC
personnel perform enhanced due diligence to verify the
identities of Customers the identities of whom were not
successfully verified through the first-level (which will
typically be reliance on results obtained from an information
vendor) verification process(es).
(c) Record the Data Elements and maintain records relating to
verification of new Customers consistent with
31 CFR 103.131(b)(3).
(d) Regularly report to the Fund about measures taken under
(a)-(c) above.
(e) If PFPC provides services by which prospective Customers may
subscribe for shares in the Fund via the Internet or
telephone, work with the Fund to notify prospective Customers,
consistent with 31 CFR 103.(bX5), about the Fund's CIP.
(f) Set forth on a separate fee schedule compensation amounts due
for these CIP Services.
Notwithstanding anything to the contrary, and without expanding the
scope of the express language above, PFPC need not collect the Data
Elements for (or verify) prospective customer (or accounts) beyond
the requirements of relevant regulation (for example, PFPC will not
verify customers opening accounts through NSCC) and PFPC need not
perform any task that need not be performed for the fund to be in
compliance with relevant regulation.
The Fund hereby represents and warrants that each of the portfolios
serviced by PFPC, and each legal entity of which such portfolio is
a part, has, and will at all times during which this Agreement is
in effect maintain in place, a written agreement with each such
other portfolio and entity, under which all such parties may rely
upon the Customer Identification Programs of any other with respect
to prospective investors who are then existing customers of such
other. Given such inter-company (or inter-fund) agreement(s), PFPC
need not perform steps (a)-(f) above with respect to any subscriber
who is then a customer of any other fund within the same "fund
family" as the Fund."
Section 2 (General provisions). This Amendment contains the entire
understanding between the parties with respect to the services contemplated
hereby. Except as expressly set forth herein, the Agreement shall remain
unaffected hereby.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their duly authorized officers, as of the day and year first above
written.
AFBA 5STAR FUND, INC.
By: /s/ Xxxx X. Xxxxxxx
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Name: Xxxx X. Xxxxxxx
Title: President
PFPC INC.
By: /s/ Xxxxx X. Xxxxxx
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Name: Xxxxx X. Xxxxxx
Title: Vice President & Director
Transfer Agency Division
