CUSTODIAN CONTRACT
Between
FEDERATED INVESTMENT COMPANIES
and
STATE STREET BANK AND TRUST COMPANY
and
FEDERATED SERVICES COMPANY
TABLE OF CONTENTS
Page
1. Employment of Custodian and Property to be Held by It............1
2. Duties of the Custodian With Respect to Property
of the Funds Held by the Custodian...............................2
2.1 Holding Securities.........................................2
2.2 Delivery of Securities.....................................2
2.3 Registration of Securities.................................6
2.4 Bank Accounts..............................................6
2.5 Payments for Shares........................................7
2.6 Availability of Federal Funds..............................7
2.7 Collection of Income.......................................7
2.8 Payment of Fund Moneys.....................................8
2.9 Liability for Payment in Advance of
Receipt of Securities Purchased............................9
2.10 Payments for Repurchases or Redemptions
of Shares of a Fund........................................9
2.11 Appointment of Agents.....................................10
2.12 Deposit of Fund Assets in Securities System...............10
2.13 Segregated Account........................................12
2.14 Joint Repurchase Agreements...............................13
2.15 Ownership Certificates for Tax Purposes...................13
2.16 Proxies...................................................13
2.17 Communications Relating to Fund Portfolio Securities......13
2.18 Proper Instructions.......................................14
2.19 Actions Permitted Without Express Authority...............14
2.20 Evidence of Authority.....................................15
2.21 Notice to Trust by Custodian Regarding Cash Movement......15
3. Duties of Custodian With Respect to the Books of Account and
Calculation of Net Asset Value and Net Income...................15
4. Records.........................................................16
5. Opinion of Funds' Independent Public Accountants/Auditors.......16
6. Reports to Trust by Independent Public Accountants/Auditors.....17
7. Compensation of Custodian.......................................17
8. Responsibility of Custodian.....................................17
9. Effective Period, Termination and Amendment.....................19
10. Successor Custodian.............................................20
11. Interpretive and Additional Provisions..........................21
12. Massachusetts Law to Apply......................................21
13. Notices.........................................................22
14. Counterparts....................................................22
15. Limitations of Liability........................................22
20
CUSTODIAN CONTRACT
This Contract between those INVESTMENT COMPANIES listed on Exhibit 1, as it
may be amended from time to time, (the "Trust"), which may be Massachusetts
business trusts or Maryland corporation or have such other form of
organization as may be indicated, on behalf of the portfolios (hereinafter
collectively called the "Funds") and individually referred to as a "Fund") of
the Trust, having its principal place of business at Federated Investors
Tower, Pittsburgh, Pennsylvania, 15222-3779, and STATE STREET BANK AND TRUST
COMPANY, a Massachusetts trust company, having its principal place of
business at 225 Franklin Street, Boston, Massachusetts, 02110, hereinafter
called the "Custodian", and FEDERATED SERVICES COMPANY, a Delaware business
trust company, having its principal place of business at Federated Investors
Tower, Pittsburgh, Pennsylvania, 15222-3779, hereinafter called ("Company").
WITNESSETH: That in consideration of the mutual covenants and agreements
hereinafter contained, the parties hereto agree as follows:
1. .............Employment of Custodian and Property to be Held by It
-----------------------------------------------------
The Trust hereby employs the Custodian as the custodian of the assets
of each of the Funds of the Trust. Except as otherwise expressly
provided herein, the securities and other assets of each of the Funds
shall be segregated from the assets of each of the other Funds and from
all other persons and entities. The Trust will deliver to the
Custodian all securities and cash owned by the Funds and all payments
of income, payments of principal or capital distributions received by
them with respect to all securities owned by the Funds from time to
time, and the cash consideration received by them for shares ("Shares")
of beneficial interest/capital stock of the Funds as may be issued or
sold from time to time. The Custodian shall not be responsible for
any property of the Funds held or received by the Funds and not
delivered to the Custodian.
Upon receipt of "Proper Instructions" (within the meaning of Section
2.18), the Custodian shall from time to time employ one or more
sub-custodians upon the terms specified in the Proper Instructions,
provided that the Custodian shall have no more or less responsibility
or liability to the Trust or any of the Funds on account of any actions
or omissions of any sub-custodian so employed than any such
sub-custodian has to the Custodian.
2. Duties of the Custodian with Respect to Property of the Funds Held by
the Custodian
2.1 Holding Securities. The Custodian shall hold and physically
segregate for the account of each Fund all non-cash property,
including all securities owned by each Fund, other than
securities which are maintained pursuant to Section 2.12 in a
clearing agency which acts as a securities depository or in a
book-entry system authorized by the U.S. Department of the
Treasury, collectively referred to herein as "Securities System",
or securities which are subject to a joint repurchase agreement
with affiliated funds pursuant to Section 2.14. The Custodian
shall maintain records of all receipts, deliveries and locations
of such securities, together with a current inventory thereof,
and shall conduct periodic physical inspections of certificates
representing stocks, bonds and other securities held by it under
this Contract in such manner as the Custodian shall determine
from time to time to be advisable in order to verify the accuracy
of such inventory. With respect to securities held by any agent
appointed pursuant to Section 2.11 hereof, and with respect to
securities held by any sub-custodian appointed pursuant to
Section 1 hereof, the Custodian may rely upon certificates from
such agent as to the holdings of such agent and from such
sub-custodian as to the holdings of such sub-custodian, it being
understood that such reliance in no way relieves the Custodian of
its responsibilities under this Contract. The Custodian will
promptly report to the Trust the results of such inspections,
indicating any shortages or discrepancies uncovered thereby, and