Regulations Governing Securities Investment Trust Funds Article 61

When a fund's custodian institution becomes aware that the SITE has violated the securities investment trust agreement or related laws or regulations, it shall immediately request the SITE to perform its obligations under that agreement or under related laws and regulations; where there is a likelihood of injury to the rights and interests of beneficiaries, it shall report the matter to the FSC and copy notification to the Trust Association.When a fund's assets are negatively affected due to the dereliction or negligence of the SITE, the custodian institution shall seek recovery of the assets in the interests of the fund's beneficiaries.When in the performance of its custodial duties, a fund's custodian institution requests the SITE to perform its obligations pursuant to the provisions of paragraph 1, and where the SITE fails to perform those obligations with resulting damage to beneficiaries' interests, then following written notification directing the SITE to rectify the matter within a prescribed time period and subsequent failure of the SITE to comply, the custodian institution may, after applying and receiving permission from the FSC, convene a beneficiaries' meeting to transfer management of the fund to another SITE.