Regulations Governing Securities Investment Trust Funds Article 62

When dereliction or negligence on the part of a fund's custodian institution results in violation of the Securities Investment Trust and Consulting Act, orders issued pursuant to that Act, or the stipulations of the securities investment trust agreement, with a resulting negative impact on fund assets, the custodian institution shall bear liability for damages.The SITE shall further seek recovery of damages from the custodian institution on behalf of the fund's beneficiaries.A custodian institution shall bear liability for the dereliction or negligence of an agent, representative, or employee carrying out their obligations pursuant to the stipulations of the securities investment trust agreement in the same degree as it would for its own dereliction or negligence.When the dereliction or negligence of a trust enterprise that is concurrently operating securities investment trust business and keeping custody of trust fund assets pursuant to FSC approval results in violation of the Securities Investment Trust and Consulting Act, orders issued pursuant to that Act, or the stipulations of the securities investment trust agreement, with a resulting negative impact on fund assets, the trust enterprise shall bear liability for damages.The trust supervisor shall seek recovery of damages from the custodian institution on behalf of the fund's beneficiaries.When there is dereliction or negligence on the part of an agent, representative, or employee of the trust enterprise referred to in the preceding paragraph during the performance of their obligations under the securities investment trust agreement, the trust enterprise shall bear the same degree of liability as it would for its own dereliction or negligence.