Common use of Securities System Clause in Contracts

Securities System. The Custodian may deposit and/or maintain securities owned by a Portfolio in a U.S. Securities System in compliance with the conditions of Rule 17f-4 under the 1940 Act, as amended from time to time; provided, however, that the securities so maintained are represented in an account of the Custodian in the U.S. Securities System, which account shall not include any assets of the Custodian other than assets held as a fiduciary, custodian or otherwise for customers, and the records of the Custodian with respect to the securities of the Portfolio which are maintained in a U.S. Securities System shall identify by book entry those securities belonging to the Portfolio. The Custodian shall provide the Fund with any report obtained by the Custodian on the U.S. Securities System’s accounting system, internal accounting control and procedures for safeguarding securities deposited in the U.S. Securities System. At the election of the Fund, it shall be entitled to be subrogated to the rights of the Custodian with respect to any claim against the U.S. Securities System or any other person which the Custodian may have as a consequence of any loss or damage caused by the U.S. Securities System if and to the extent that the Portfolio has not been made whole for any such loss or damage.