§ 177-d. Security loan agreements. 1. A fund may enter into security
loan agreements with broker-dealers and with New York state or national
banks for the purpose of prudently supplementing the income normally
received from investments.

2. The trustees of the funds involved shall monitor the market value
of the loaned marketable securities daily. In no event shall the
trustees allow the value of collateral posted to fall below the market
value of the loaned marketable securities.

3. The term "security loan agreement", as used in this section, shall
mean a written contract whereby a fund (the lender) agrees to lend
marketable securities for a period not to exceed one year, subject,
however, to the following limitations:

(a) The lender must retain the right to collect from the borrower all
dividends, interest, premiums, rights, and any other distributions to
which the lender would otherwise have been entitled,

(b) The lender may waive the right to vote the securities during the
term of the loan,

(c) The lender must retain the right to terminate the contract upon
not more than five business days' notice.

(d) The borrower shall provide collateral to the lender in the form of
cash, bonds, or performance letters of credit drawn on a bank with
capital, surplus and undivided earnings in excess of one hundred million
dollars, or other interest-bearing notes and obligations of the United
States or federal instrumentalities eligible for investment by a fund,

(e) The security loan agreement shall provide for payment of
additional collateral on a daily basis, or at such time as the value of
the loaned marketable securities increases to agreed upon ratios.

4. The term "marketable securities", as used in this section, shall
mean securities that are freely traded on recognized exchanges or
marketplaces.