Common use of Liabilities of the Acquired Fund Clause in Contracts

Liabilities of the Acquired Fund. The Acquired Fund will use its best efforts to discharge all of its known liabilities and obligations prior to the Effective Time. The Acquiring Fund shall assume the liabilities of the Acquired Fund that are set forth on the Acquired Fund's Statement of Assets and Liabilities as of the Effective Time that is delivered pursuant to paragraph 6.2(b) and included in the calculation of net asset value ("NAV") as of the Effective Time, or incurred in the ordinary course of business consistent with past practice (collectively, the "LIABILITIES"). On or as soon as practicable prior to the Effective Time, the Acquired Fund will declare and pay to its shareholders of record one or more dividends and/or other distributions, which, together with all previous dividends, will have the effect of distributing to the Acquired Fund Shareholders (as defined in paragraph 1.4) substantially all (and in no event less than 98%) of the Acquired Fund's previously undistributed investment company taxable income, if any (computed without regard to any deduction for dividends paid), and net exempt-interest income, if any, if any, for all taxable years (including the current taxable year) ending on or prior to the Effective Time, together with all of the Acquired Fund's previously undistributed net capital gains, if any, through October 31, 2007.