Demand Features and Guarantees Not Relied Upon. If the fund’s board of directors has
determined that the fund is not relying on a Demand Feature or Guarantee to determine the
quality, maturity or liquidity of a portfolio security, and maintains a record of this determination,
then the fund may disregard such Demand Feature or Guarantee for all purposes of the Rule.
Downgrades. In the event that (i) a portfolio security of a money market fund ceases to be a First
Tier Security or (ii) the investment adviser becomes aware that any Unrated Security or a Second
Tier Security held by the fund has, since the security was Acquired, been given a rating by any
NRSRO below the NRSRO’s second highest short-term rating category, the board of directors of
the fund shall reassess promptly whether such security continues to present minimal credit risks
and shall cause the fund to take such action as the board of directors determines is in the best
interests of the fund and its shareholders.
The reassessments required by the previous paragraph shall not be required if, in accordance with
the procedures adopted by the board of directors, the security is disposed of (or matures) within
five Business Days of the specified event and in the case of events specified in (ii) in the previous
paragraph, the board is subsequently notified of the adviser’s actions.
In the event that after giving effect to a rating downgrade, more than five percent of the fund’s
Total Assets are invested in securities issued by or subject to Demand Features from a single
institution that are Second Tier Securities, the fund shall reduce its investment in securities issued
by or subject to Demand Features from that institution to no more than five percent of its Total
Assets by exercising the Demand Features at the next succeeding exercise date(s), absent a finding
by the board of directors that disposal of the portfolio security would not be in the best interests
of the fund.
Defaults and Other Events. In the event (a) of a default with respect to a portfolio security; (b)
a portfolio security ceases to be an Eligible Security; (c) a portfolio security has been determined
to no longer present minimal credit risks; or (d) an Event of Insolvency occurs with respect to the
issuer of a portfolio security or the provider of any Demand Feature or Guarantee, the fund shall
dispose of such security as soon as practicable consistent with achieving an orderly disposition of
the security, by sale, exercise of any Demand Feature or otherwise, absent a finding by the board
of directors that disposal of the portfolio security would not be in the best interests of the fund.
Delegation. The fund’s board of directors may delegate to the fund’s investment adviser or
officers the responsibility to make any determination required to be made by the board of
directors under the Rule, except the determinations required by paragraphs (c)(1) (board
findings); (c)(6)(i)(C) (rule for certain securities subject to second tier Demand Features);
(c)(6)(ii) (defaults and other events); (c)(7)(i) (general required procedures: Amortized Cost
Method); (c)(7)(ii)(A) (shadow pricing), (B) (prompt consideration of deviation), and (C)
(material dilution or unfair results); and (c)(8) (required procedures: Penny-Rounding Method) of
the Rule, provided:
the board establishes and periodically reviews written guidelines (including guidelines for
determining whether securities present minimal credit risks as required by the Rule) and
other procedures under which the delegate makes such determinations; and
the board takes any measures reasonably necessary (through periodic reviews of fund
investments and the delegate’s procedures in connection with investment decisions and
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