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-2- <br />(a) Customer is duly organized and existing under the laws of the jurisdiction of its organization, with full power to <br />carry on its business as now conducted, to enter into this Agreement and [o perform its obligations hereunder; <br />(b) This Agreement has been duly authorized, executed and delivered by Customer, constitutes a valid and legally <br />binding obligation of Customer, enforceable in accordance with its terms, and no statute, regulation, rule, order, judgment or contract <br />binding on Customer prohibits Customer's execution or performance of this Agreement; and <br />(c) Either Customer owns the U.S. Securities in the Account free and clear of all liens, claims, security interests and <br />encumbrances (except those granted herein) or, if the U.S. Securities are owned beneficially by others, Customer has the right to <br />pledge such U.S. Securities to the extent necessary to secure Customer's obligations hereunder, free of any right of redemption or prior <br />claim by the beneficial owner. Custodian's security interest pursuant to Article V hereof shall be a first lien and security interest <br />subject to no setoffs, counterclaims or other liens prior to or on a parity with it in favor of any other party (other than specific liens <br />granted preferred status by statute), and Customer shall take any and all additional steps which are required [o assure Custodian of <br />such priority and status, including notifying third parties or obtaining their consent to, Custodian s security interest. <br />ARTICLE III <br />CUSTODY AND RELATED SERVICES <br />1. Subject to the terms hereof, Customer hereby authorizes Custodian [o hold any Securities received by it from time to <br />time for Customer's account. Custodian shall be entitled to utilize the Book Entry System and Depositories to the extent possible in <br />connection with its performance hereunder. Securities and cash deposited by Custodian in the Book-Entry System or a Depository will <br />be held subject [o the rules, terms and conditions of the Book-Entry System or such Depository. Custodian shall identify on its books <br />and records the U.S. Securities and cash belonging to Customer, whether held directly or indirectly through the Book-Entry System or <br />a Depository. U.S. Securities and cash of Customer deposited in the Book Entry System or a Depository will be represented in <br />accounts which include only assets held by Custodian for its customers. <br />2. Custodian shall furnish Customer with a monthly summary of all account transfers and activity. Customer hereby <br />waives the right [o receive hard copy written transaction advices. The forgoing waiver may be rescinded a[ any time in writing to the <br />Custodian. Customer may elect to receive advices, confirmations, reports or statements electronically through the Internet. By <br />electing to use the Internet for this purpose, Customer acknowledges that such transmissions are not encrypted and therefore are <br />insecure. Customer further acknowledges that there are other risks inherent in communicating through the Internet such as the <br />possibility of virus contamination and disruptions in service, and agrees that Custodian shall not be responsible for any loss, damage <br />or expense suffered or incurred by Customer or any person claiming by or through Customer as a result of the use of such methods. <br />With respect to all U.S. Securities held in the Account, Custodian shall, unless otherwise instructed to the contrary: <br />(a) Receive all income and other payments and advise Customer as promptly as practicable of any such amounts due <br />but not paid; <br />(b) Present for payment and receive the amount paid upon all U.S. Securities which may mature and advise Customer as <br />promptly as practicable of any such amounts due but not paid; <br />(c) Forward to Customer all information or documents [hat it may receive from an issuer of U.S. Securities which, in <br />the opinion of Custodian, are intended for the beneficial owner of U.S. Securities; <br />(d) Execute, as custodian, any certificates of ownership, affidavits, declarations or other certificates under any tax laws <br />now or hereafter in effect in connection with the collection of bond and note coupons; <br />(e) Hold directly, or through the Book Entry System or a Depository, all rights and similar U.S. Securities issued with <br />respect to any U.S. Securities credited to the Account hereunder; and <br />(f) Endorse for collection checks, drafts or other negotiable instruments. <br />4. (a) Custodian shall notify Customer of such rights or discretionary actions or of the date or dates by when such <br />rights must be exercised or such action must be taken provided that Custodian has received, from the issuer or the relevant Depository, <br />timely notice of such rights or discretionary corporate action or of the date or dates such rights must be exercised or such action must <br />be taken. Communication shall be delivered by Inform, S.W.I.F.T., tested telex, letter, email, facsimile transmission, or other method