Common use of Foreign Exchange with the Custodian as Principal Clause in Contracts

Foreign Exchange with the Custodian as Principal. The Custodian shall be responsible for any failure or delay of third parties to deliver foreign exchange when either of those parties is a parent or subsidiary. The Custodian, as principal, may undertake foreign exchange transactions with the Fund as the Custodian and the Fund may agree from time to time. In such event, the foreign exchange transaction will be performed in accordance with the particular agreement of the parties, or in the event a principal foreign exchange transaction is initiated by Instruction in the absence of specific agreement, such transaction will be performed in accordance with the usual commercial terms of the Custodian. In the event that the Fund defaults on the settlement of any such foreign exchange transaction with the Custodian, the Fund shall be liable for contracted currency of the transaction together with any ▇▇▇▇ to market exposure associated with the replacement purchase of the contracted currency undertaken with the Custodian.