Amendment to Investment Advisory Contract between Federated
Municipal Securities Income Trust and Federated Investment
Management Company
This Amendment to the Investment Advisory Contract ("Agreement")
dated September 9, 1991, between Federated Municipal Securities
Income Trust ("Fund") and Federated Investment Management Company
("Service Provider") is made and entered into as of the 1st day
of June, 2001.
WHEREAS, the Fund has entered into the Agreement with the
Service Provider;
WHEREAS, the Securities and Exchange Commission has adopted
Regulation S-P at 17 CFR Part 248 to protect the privacy of
individuals who obtain a financial product or service for personal,
family or household use;
WHEREAS, Regulation S-P permits financial institutions,
such as the Fund, to disclose "nonpublic personal information"
("NPI") of its "customers" and "consumers" (as those terms are
therein defined in Regulation S-P) to affiliated and
nonaffiliated third parties of the Fund, without giving such
customers and consumers the ability to opt out of such disclosure,
for the limited purposes of processing and servicing transactions
(17 CFR S 248.14) ("Section 248.14 NPI"); for specified law
enforcement and miscellaneous purposes (17 CFR S 248.15)
("Section 248.15 NPI") ; and to service providers or in
connection with joint marketing arrangements (17 CFR S 248.13)
("Section 248.13 NPI");
WHEREAS, Regulation S-P provides that the right of a
customer and consumer to opt out of having his or her NPI
disclosed pursuant to 17 CFR S 248.7 and 17 CFR S 248.10 does
not apply when the NPI is disclosed to service providers or in
connection with joint marketing arrangements, provided the Fund
and third party enter into a contractual agreement that prohibits
the third party from disclosing or using the information other
than to carry out the purposes for which the Fund disclosed the
information (17 CFR S 248.13);
NOW, THEREFORE, the parties intending to be legally bound
agree as follows:
The Fund and the Service Provider hereby acknowledge that
the Fund may disclose shareholder NPI to the Service Provider as
agent of the Fund and solely in furtherance of fulfilling the
Service Provider's contractual obligations under the Agreement
in the ordinary course of business to support the Fund and its
shareholders.
The Service Provider hereby agrees to be bound to use and
redisclose such NPI only for the limited purpose of fulfilling
its duties and obligations under the Agreement, for law
enforcement and miscellaneous purposes as permitted in 17 CFR
SS 248.15, or in connection with joint marketing arrangements
that the Funds may establish with the Service Provider in
accordance with the limited exception set forth in 17 CFR S
248.13.
The Service Provider further represents and warrants that,
in accordance with 17 CFR S 248.30, it has implemented, and
will continue to carry out for the term of the Agreement,
policies and procedures reasonably designed to:
* insure the security and confidentiality of records and NPI
of Fund customers
* protect against any anticipated threats or hazards to the
security or integrity of Fund customer records and NPI, and
* protect against unauthorized access to or use of such Fund
customer records or NPI that could result in substantial harm
or inconvenience to any Fund customer.
4. The Service Provider may redisclose Section 248.13 NPI only
to: (a) the Funds and affiliated persons of the Funds ("Fund
Affiliates"); (b) affiliated persons of the Service Provider
("Service Provider Affiliates") (which in turn may disclose or
use the information only to the extent permitted under the
original receipt); (c) a third party not affiliated with the
Service Provider of the Funds ("Nonaffiliated Third Party")
under the service and processing (S248.14) or miscellaneous
(S248.15) exceptions, but only in the ordinary course of business
to carry out the activity covered by the exception under which
the Service Provider received the information in the first
instance; and (d) a Nonaffiliated Third Party under the service
provider and joint marketing exception (S248.13), provided
the Service Provider enters into a written contract with the
Nonaffiliated Third Party that prohibits the Nonaffiliated
Third Party from disclosing or using the information other
than to carry out the purposes for which the Funds disclosed
the information in the first instance.
5. The Service Provider may redisclose Section 248.14 NPI
and Section 248.15 NPI to: (a) the Funds and Fund Affiliates;
(b) Service Provider Affiliates (which in turn may disclose the
information to the same extent permitted under the original
receipt); and (c) a Nonaffiliated Third Party to whom the
Funds might lawfully have disclosed NPI directly.
6. The Service Provider is obligated to maintain beyond the
termination date of the Agreement the confidentiality of any NPI
it receives from the Fund in connection with the Agreement
or any joint marketing arrangement, and hereby agrees that this
Amendment shall survive such termination.
WITNESS the due execution hereof this 1st day of June, 2001.
Federated Municipal Securities Income Trust
By: /s/ Xxxxxxx X. Xxxxxx
Name: Xxxxxxx X. Xxxxxx
Title: President
Federated Investment Management Company
By: /s/ G. Xxxxxx Xxxxxxxxx
Name: G. Xxxxxx Xxxxxxxxx
Title: Vice President
Current as of: 8/18/94
