June 11, 1996
TO: BANK AND TRUST ADVISORY COMMITTEE No. 20-96
OPERATIONS MEMBERS No. 27-96
RE: MODEL TRUST FUND/SERV AGREEMENT
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Enclosed please find the model Trust Fund/SERV agreement developed by the Bank
and Trust Advisory Committee. The agreement was designed for use by fund companies and
trust companies processing mutual fund capital share transactions through Fund/SERV. The
agreement was developed in conjunction with a proposal to modify Fund/SERV and
Networking to enable Trust Companies to better participate in the National Securities Clearing
Corporations ("NSCC") mutual fund services. The NSCC implemented the proposed
enhancements to the Fund/SERV and Networking systems effective June 7, 1996.
The model Trust Fund/SERV agreement is being distributed to a wide audience of trust
companies by the American Bankers Association ("ABA"). In addition, the Depository Trust
Company ("DTC"), which links many trust companies to NSCCs mutual fund systems, will be
making the model Fund/SERV agreement available to its trust company participants.
While some of the fund companies represented on the Bank and Trust Advisory
Committee plan to supplement the model agreement with an addendum or other additional
documentation, many indicated that the model agreement meets their needs fully.
Questions or comments can be directed to Diane Butler at 202/326-5847.
Frank Litwin Diane Butler
Chairman - Bank & Trust Advisory Committee Director - Operations & Fund Custody
Enclosure