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<SEC-DOCUMENT>0000902561-05-000130.txt : 20050428
<SEC-HEADER>0000902561-05-000130.hdr.sgml : 20050428
<ACCEPTANCE-DATETIME>20050427190237
ACCESSION NUMBER:		0000902561-05-000130
CONFORMED SUBMISSION TYPE:	POS AMI
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20050428
DATE AS OF CHANGE:		20050427

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DNP SELECT INCOME FUND INC
		CENTRAL INDEX KEY:			0000806628
		IRS NUMBER:				363480989
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		POS AMI
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04915
		FILM NUMBER:		05777796

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232
		BUSINESS PHONE:		3123685510

	MAIL ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUFF & PHELPS SELECTED UTILITIES INC
		DATE OF NAME CHANGE:	19910429
</SEC-HEADER>
<DOCUMENT>
<TYPE>POS AMI
<SEQUENCE>1
<FILENAME>formn2.htm
<TEXT>
<html>
<head>
<title>formn2_pos-ami</title>
</head>
<body>
<div>
<p align="center"><font face="Times New Roman">As filed with the Securities and Exchange Commission on April 27,
2005</font></p>

<p align="center"><font face="Times New Roman"></font></p>

<p align="right"><font face="Times New Roman">Investment Company Act file no. 811-4915</font></p>

<p align="right"><font face="Times New Roman">&nbsp;</font></p>

<div><font face="Times New Roman"></font>
<hr size="2" width="100%" noshade color="green" align="left" />
</div>

<p align="center"><font size="5" face="Times New Roman"><br />
SECURITIES AND EXCHANGE COMMISSION<br />
Washington, D.C. 20549</font></p>

<p align="center"><font size="5" face="Times New Roman">_____<br />
<br />
<br />
FORM N-2<br />
<br />
_____<br />
<br />
</font></p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="89%">
<tr>
<td valign="top">
<p align="center"><font face="Times New Roman">REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">[X]</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="center"><font face="Times New Roman">Amendment No. 47</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">[X]</font></p>
</td>
</tr>
</table>
</div>

<p align="center"><font face="Times New Roman"></font></p>

<p align="center"><font size="5" face="Times New Roman">_____</font></p>

<p align="center"><font face="Times New Roman"></font></p>

<p><font face="Times New Roman"></font></p>

<p align="center"><font face="Times New Roman">DNP SELECT INCOME FUND INC.<br />
(Exact name of registrant as specified in charter)</font></p>

<p align="center"><font face="Times New Roman"></font></p>

<p align="center"><font size="5" face="Times New Roman">_____</font></p>

<p align="center"><font size="3" face="Times New Roman"></font></p>

<p><font face="Times New Roman"></font></p>

<p align="center"><font face="Times New Roman">55 East Monroe Street<br />
Chicago, Illinois&nbsp; 60603<br />
</font><font size="2">(Address of principal executive offices)</font><br />
Registrant's telephone number: 312/368-5510</p>

<p><font face="Times New Roman"></font></p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New Roman">Nathan I. Partain</font></p>
</td>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">John R. Sagan</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">DNP Select Income Fund Inc.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Mayer, Brown, Rowe &amp; Maw LLP</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">55 East Monroe Street</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">190 South LaSalle Street</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Chicago, Illinois 60603</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Chicago, Illinois&nbsp; 60603</font></p>
</td>
</tr>
</table>
</div>

<p><font face="Times New Roman"></font></p>

<p><font size="2" face="Times New Roman"></font></p>

<p align="center"><font size="2" face="Times New Roman">(Names and addresses of agents for service)</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">It is proposed that this filing will become effective:<br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [X] immediately upon filing.<br />
<br />
[&nbsp;&nbsp;] This post-effective amendment designates a new effective date for a previously filed post-effective amendment.</font></p>

<p><font face="Times New Roman"></font></p>

<div><font face="Times New Roman"></font>
<hr size="2" width="100%" noshade color="green" align="left" />
</div>

<p><font face="Times New Roman"></font></p>

<p align="center"><font face="Times New Roman">PART A:&nbsp; INFORMATION REQUIRED IN A PROSPECTUS</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 1</font></u>.&nbsp;&nbsp;&nbsp; <u>Outside Front Cover</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman"></font></u></p>

<p><u><font face="Times New Roman">Item 2</font></u>.&nbsp;&nbsp;&nbsp; <u>Cover Pages; Other Offering Information</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman"></font></u></p>

<p><u><font face="Times New Roman">Item 3</font></u>.&nbsp;&nbsp;&nbsp; <u>Fee Table and Synopsis</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="2" valign="top">
<p><b><font face="Times New Roman">Shareholder</font></b> <b>Transaction</b> <b>Expenses</b>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Sales Load (as a percentage of offering price)&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">N/A</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Dividend Reinvestment and Cash Purchase Plan Fees&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">(1)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><b><font face="Times New Roman">Annual Expenses</font></b> <b>(as a percentage of net assets attributable to common shares)</b></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Management
Fees&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">0.78%</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Interest Payments on Borrowed Funds&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;...</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">0.17%</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Other
Expenses&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;...</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">0.91%</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Annual
Expenses&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;</font></p>
</td>
<td valign="top">
<p align="right"><font face="Times New Roman">1.86%</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="89%">
<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom">
<p><font face="Times New Roman">Example (2)</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">1 year</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">2 years</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">5 years</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">10 years</font></p>
</td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom"></td>
</tr>

<tr>
<td colspan="2" valign="top">
<p><font face="Times New Roman">You would pay the following expenses on a $1,000 investment,<br />
 assuming a 5% annual return</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">$19</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">$38</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">$101</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">$218</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%">
<tr>
<td valign="top">
<p><font face="Times New Roman">(1)&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Shareholders that reinvest dividends and/or capital gains distributions will be charged only brokerage fees in the event that shares are purchased in the open market. Investors investing cash in addition to any cash dividends
reinvested will be charged brokerage commissions plus a service fee of $2.50 per transaction. See Item 10.1(c).</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(2)&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">This Example should not be considered a representation of future expenses, and actual expenses may be greater or lesser than those shown.</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">The purpose of the foregoing table is to assist an investor in understanding the costs and expenses that an investor will bear directly or indirectly, and the information contained therein is not necessarily indicative of
future performance. "Other Expenses" are based on estimated amounts for the current fiscal year. For a more detailed description of management fees paid by the Fund, see Item 9.1(b) and (d). For a more detailed description of the interest paid on borrowed funds, see
Item 8.3, under the heading "Risk Factors-Leverage."&nbsp;</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><u><font face="Times New Roman">Item 4</font></u>.&nbsp;&nbsp;&nbsp; <u>Financial Highlights</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 5</font></u>.&nbsp;&nbsp;&nbsp; <u>Plan of Distribution</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 6</font></u>.&nbsp;&nbsp;&nbsp; <u>Selling Shareholders</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 7</font></u>.&nbsp;&nbsp;&nbsp; <u>Use of Proceeds</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 8</font></u>.&nbsp;&nbsp;&nbsp; <u>General Description of the Registrant</u></p>

<p><u><font face="Times New Roman"></font></u></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><u><font face="Times New Roman">General</font></u></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Registrant, DNP Select Income Fund Inc. (the "Fund"), is a corporation organized under the laws of the State of Maryland on November 26, 1986.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund is a diversified closed-end investment company.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">2.</font></p>
</td>
<td valign="top">
<p><u><font face="Times New Roman">Investment Objectives and Policies</font></u></p>
</td>
</tr>
</table>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Investment objectives</u></font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's primary investment objectives are current income and long-term growth of income. Capital appreciation is a secondary
objective.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Principal investment strategies</u></font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of equity and fixed income
securities of companies in the public utilities industry. Under normal conditions, more than 65% of the Fund's total assets will be invested in securities of public utility companies engaged in the production, transmission or distribution of electric energy, gas or
telephone services. The Fund's investment objectives stated in the preceding paragraph and its policy of concentrating its investments in the utilities industry are fundamental policies and may not be changed without the approval of the holders of a "majority" (as
defined in the Investment Company Act of 1940, as amended (the "1940 Act")) of the outstanding shares of the common stock and the preferred stock voting together as one class, which means the lesser of (i) 67% of the shares represented at a meeting at which more than
50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fundamental investment restrictions</u></font></p>

<p><u><font face="Times New Roman"></font></u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following are fundamental investment restrictions of the Fund that may be changed only with approval of the holders of a "majority"
(as defined in the 1940 Act) of the outstanding shares of the common stock and the preferred stock voting together as one class:</font></p>

<p><font face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not invest more than 25% of its total assets
(valued at the time of investment) in securities of companies engaged principally in any one industry other than the utilities industry, which includes companies engaged in the production, transmission or distribution of electric energy or gas or in telephone
services, except that this restriction does not apply to securities issued or guaranteed by the United States Government or its agencies or instrumentalities.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not:</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; invest more than 5% of
its total assets (valued at the time of the investment) in the securities of any
one issuer, except that this restriction does not apply to United States
Government securities; or</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; acquire more than 10% of the outstanding voting securities of any one issuer (at the time of acquisition);</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">except that up to 25% of the Fund's total assets (at the time of investment) may be invested without regard to the limitations set forth in this restriction.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may borrow money on a secured or unsecured basis
for any purpose of the Fund in an aggregate amount not exceeding 15% of the value of the Fund's total assets at the time of any such borrowing (exclusive of all obligations on amounts held as collateral for securities loaned to other persons to the extent that such
obligations are secured by assets of at least equivalent value).</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; The Fund may not pledge, mortgage or hypothecate its assets,
except to secure indebtedness permitted by restriction 3 above. (The deposit in escrow of securities in connection with the writing of put and call options, collateralized loans of securities and collateral arrangements with respect to margin requirements for futures
transactions and with respect to segregation of securities in connection with forward contracts are not deemed to be pledges or hypothecations for this purpose.)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may make loans of securities to other persons to
the extent of not&nbsp;more than 33 1/3% of its total assets (valued at the time of the making of loans), and may invest without limitation in short-term obligations and publicly distributed obligations.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not underwrite the distribution of securities
of other issuers, although it may acquire securities that, in the event of a resale, might be required to be registered under the Securities Act of 1933, as amended, because the Fund could be regarded as an underwriter as defined in that act with respect to the
resale.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not purchase or sell real estate or any
interest therein, except that the Fund may invest in securities secured by real estate or interests therein, such as mortgage pass-throughs, pay-throughs, collateralized mortgage obligations, and securities issued by companies (including partnerships and real estate
investment trusts) that invest in real estate or interests therein.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may acquire securities of other investment
companies to the extent (at the acquisition) of (i) not more than 3% of the outstanding voting stock of any one investment company, (ii) not more than 5% of the assets of the Fund in any one investment company and (iii) not more than 10% of the assets of the Fund in
all investment companies (exclusive in each case of securities received as a dividend or as a result of a merger, consolidation or other plan of reorganization).</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; The Fund may not invest for the purpose of exercising
control over or management of any company.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not purchase securities on margin, or make short sales of
securities, except the use of short-term credit necessary for the clearance of purchases and sales of portfolio securities, but it may make margin deposits in connection with transactions in options, futures and options on futures.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not purchase or sell commodities or commodity contracts,
except that it may enter into (i) stock index futures transactions, interest rate futures transactions and options on such future transactions and (ii) forward contracts on foreign currencies to the extent permitted by applicable law.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund may not issue any security senior to its common stock, except
that the Fund may borrow money subject to investment restriction 3 and except as permitted by the Fund's charter.</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a percentage restriction set forth above is adhered to at the time a transaction is effected, later changes in percentages resulting
from changes in value or in the number of outstanding securities of an issuer will not be considered a violation.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Other Significant Investment Policies</u></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Fixed Income Securities</u>. The Fund purchases a fixed income security only if, at the time of purchase, it is (i) rated investment
grade by at least two of the following three nationally recognized statistical rating organizations: Moody's Investors Service, Inc. ("Moody's"), Standard &amp; Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. ("S&amp;P"), and Fitch, Inc.
("Fitch") or (ii) determined by the Fund's investment adviser to be of investment grade and not rated below investment grade by any of the aforementioned rating services. A fixed income security rated investment grade has a rating of BBB- or better by Fitch, Baa3 or
better by Moody's, or BBB- or better by S&amp;P. In making its determination that a fixed income security is investment grade, the Fund's investment adviser will use the standards used by a nationally recognized statistical rating organization.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Leverage</u>. The Fund is authorized to borrow money in amounts of up to 15% of the value of its total assets at the time of such
borrowings. However, for so long as the Fund's preferred stock is rated by S&amp;P, the Fund will limit the aggregate amount of its borrowings to 10% of the value of its total assets and will not incur any borrowings, unless advised by S&amp;P that such borrowings
would not adversely affect S&amp;P's then-current rating of the preferred stock.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Lending of Portfolio Securities</u>. In order to generate additional income, the Fund may from time to time lend securities from its
portfolio, with a value not in excess of 33 1/3% of its total assets, to brokers, dealers and financial institutions such as banks and trust companies for which it will receive collateral in cash, United States Government securities or an irrevocable letter of credit
that will be maintained in an amount equal to at least 100% of the current market value of the loaned securities.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Rating Agency Guidelines</u>. The Fund's preferred stock is currently rated by Moody's and S&amp;P, nationally recognized
statistical rating organizations, which issue ratings for various securities reflecting the perceived creditworthiness of those securities. The Fund intends that, so long as shares of its preferred stock are outstanding, the composition of its portfolio will reflect
guidelines established by the foregoing rating organizations in connection with the Fund's receipt of the highest rating for its preferred stock from at least two of such rating organizations.</font></p>

<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Options and Futures Transactions</u>. The Fund may seek to increase its current return by writing covered options. In addition,
through the writing and purchase of options and the purchase and sale of futures contracts and related options, the Fund may at times seek to hedge against a decline in the value of securities owned by it or an increase in the price of securities which it plans to
purchase. However, for so long as shares of the Fund's preferred stock are rated either by Moody's or S&amp;P, the Fund will not purchase or sell futures contracts or related options or engage in other hedging transactions unless Moody's or S&amp;P, as the case may
be, advises the Fund that such action or actions will not adversely affect its then-current rating of the Fund's preferred stock.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Swap and Swaption Transactions</u>. The Fund may utilize interest rate and
credit swaps and swaptions, subject to the following restrictions: (i) swaps and
swaptions must be U.S. dollar denominated and used for hedging purposes only;
(ii) no more than 5% of the Fund's total assets, at the time of purchase, may be
invested in time premiums paid for swaptions; (iii) the terms of all swaps and
swaptions must conform to the standards of the ISDA Master Agreement published
by the International Swaps and Derivatives Association, Inc.; and (iv) the
counterparty must be a bank or broker-dealer firm regulated under the laws of
the United States that is (A) on a list approved by the Board of Directors, (B)
with capital of at least $100 million and (C) rated investment grade by both S&amp;P
and Moody's.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Credit Derivatives</u>. The market value of the Fund's investments in credit
derivatives and/or premiums paid therefor as a buyer of credit protection will
not exceed 10% of the Fund's total assets and the notional value of the credit
exposure to which the Fund is subject when it sells credit derivatives sold by
the Fund will not exceed 33 1/3% of the Fund's total assets.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Temporary Investments</u>. For temporary defensive purposes, the Fund may be invested primarily in money market securities. These
securities include securities issued or guaranteed by the United States Government and its agencies and instrumentalities, commercial paper and certificates of deposit. To the extent that the Fund engages in such defensive investments, it may not achieve its
investment objectives.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nonfundamental Restrictions</u>. The Fund may not (i) invest in securities subject to legal or contractual restrictions on resale,
if, as a result of such investment, more than 10% of the Fund's total assets would be invested in such securities, or (ii) acquire 5% or more of the outstanding voting securities of a public utility company.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the policies and restrictions described above may be changed by the board of directors without the approval of the Fund's
shareholders. If a percentage restriction set forth above is adhered to at the time a transaction is effected, later changes in percentages resulting from changes in value or in the number of outstanding securities of an issuer will not be considered a
violation.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="697">
<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="633">
<p><font face="Times New Roman">3. &nbsp;&nbsp;<u>Risk Factors</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="633"></td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="633">
<p><u><font face="Times New Roman">Leverage Risk</font></u>. As of December 31, 2004, the Fund had outstanding indebtedness of $198,361,375 and five series of preferred stock with an aggregate liquidation preference of $500 million. The dividend rate on each
series of preferred stock is reset every 49 days through a remarketing procedure. As of April
15, 2004, the dividend rate on the five series of preferred stock averaged 2.38% and the interest rate on the Fund's outstanding indebtedness averaged
2.30%. The Fund must
experience an annual return of 0.69% on its portfolio in order to cover annual interest and dividend payments on the Fund's outstanding indebtedness and preferred stock.</p>
</td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="633"></td>
</tr>

<tr>
<td valign="top" width="64"></td>
<td valign="top" width="633">
<p><font face="Times New Roman">Leverage creates certain risks for holders of common stock, including higher volatility of both the net asset value and market value of the common stock. Fluctuations in dividend rates on the preferred stock and interest rates
on the Fund's indebtedness will affect the dividend to holders of common stock. Holders of the common stock receive all net income from the Fund remaining after payment of dividends on the preferred stock and interest on the Fund's indebtedness, and generally are
entitled to a pro rata share of net realized capital gains, if any.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="633"></td>
</tr>

<tr>
<td valign="top" width="64"></td>
<td valign="top" width="633">
<p><font face="Times New Roman">Upon any liquidation of the Fund, the holders of shares of preferred stock will be entitled to liquidating distributions (equal to $100,000 per share of preferred stock plus any accumulated and unpaid dividends thereon) and
the holders of the Fund's indebtedness will be entitled to receive repayment of outstanding principal plus accumulated and unpaid interest thereon before any distribution is made to holders of common stock.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="633"></td>
</tr>

<tr>
<td valign="top" width="64"></td>
<td valign="top" width="633">
<p><font face="Times New Roman">The leverage obtained through the issuance of the preferred stock and from the Fund's presently outstanding indebtedness has provided holders of common stock with a higher dividend than such holders would have otherwise
received. However, there can be no assurance that the Fund will be able to continue to realize such a higher net return on its investment portfolio. Changes in certain factors could cause the relationship between the dividends paid on the preferred stock and interest
paid on the Fund's indebtedness to increase relative to the dividend and interest rates on the portfolio securities in which the Fund may be invested. Under such conditions the benefit of leverage to holders of common stock will be reduced and the Fund's leveraged
capital structure could result in a lower rate of return to holders of common stock than if the Fund were not leveraged. The Fund is required by the 1940 Act to maintain an asset coverage of 200% on outstanding preferred stock and 300% on outstanding indebtedness. If
the asset coverage declines below those levels (as a result of market fluctuations or otherwise), the Fund may be required to sell a portion of its investments at a time when it may be disadvantageous to do so.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="64">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="633"></td>
</tr>

<tr>
<td valign="top" width="64"></td>
<td valign="top" width="633">
<p><font face="Times New Roman">The following table illustrates the effects of leverage on a return to common stockholders. The figures appearing in the table are hypothetical and actual returns may be greater or less than those appearing in the
table.</font></p>
</td>
</tr>
</table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table border="1" cellspacing="0" cellpadding="0" width="697" style="border-collapse: collapse; border-width: 0" bordercolor="#111111">
<tr>
<td valign="top" style="border-style: none; border-width: medium" width="334">
<p><font face="Times New Roman"><br />
 &nbsp; Assumed annual return on portfolio (net of<br />
 &nbsp;&nbsp;&nbsp;&nbsp; expenses)</font></p>
</td>
<td style="border-style: none; border-width: medium" width="80">
<p align="center"><font face="Times New Roman"><br />
 -10.00%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="69">
<p align="center"><font face="Times New Roman"><br />
 -5.00%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="66">
<p align="center"><font face="Times New Roman"><br />
 0.00%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="61">
<p align="center"><font face="Times New Roman"><br />
 5.00%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="87">
<p align="center"><font face="Times New Roman"><br />
 10.00%&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" style="border-style: none; border-width: medium" width="334">
<p><font face="Times New Roman"><br />
 &nbsp; Corresponding annual return to common<br />
 &nbsp;&nbsp;&nbsp;&nbsp; stockholder</font></p>
</td>
<td style="border-style: none; border-width: medium" width="80">
<p align="center"><font face="Times New Roman"><br />
 -14.16%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="69">
<p align="center"><font face="Times New Roman"><br />
 -7.36%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="66">
<p align="center"><font face="Times New Roman"><br />
 -0.55</font></p>
</td>
<td style="border-style: none; border-width: medium" width="61">
<p align="center"><font face="Times New Roman"><br />
 6.25%</font></p>
</td>
<td style="border-style: none; border-width: medium" width="87">
<p align="center"><font face="Times New Roman"><br />
 13.06%</font></p>
</td>
</tr>
</table>

<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="697">
<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" width="641">
<p><u><font face="Times New Roman">Investments in Securities of Foreign Issuers</font></u>. While the Fund is prohibited from investing 15% or more of its assets in securities of foreign issuers, the Fund may be exposed to certain risks as a result of
foreign investments. Investing in securities of foreign issuers involves certain considerations not typically associated with investing in securities of U.S. companies, including (a) controls on foreign investment and limitations on repatriation of invested capital
and on the Fund's ability to exchange local currencies for U.S. dollars, (b) greater price volatility, substantially less liquidity and significantly smaller market capitalization of securities markets, (c) currency devaluations and other currency exchange rate
fluctuations, (d) more substantial government involvement in the economy, (e) higher rates of inflation, (f) less government supervision and regulation of the securities markets and participants in those markets and (g) political uncertainty and other considerations.
The Fund will treat investments in countries with repatriation restrictions as illiquid for purposes of any applicable limitations under the 1940 Act; however, as a closed-end fund, the Fund is not currently limited under that Act in the amount of illiquid securities
it may acquire. Because of the limited forward market for the purchase of U.S. dollars in most foreign countries and the limited circumstances in which the Fund expects to hedge against declines in the value of foreign country currencies generally, the Fund will be
adversely affected by devaluations of foreign country currencies against the U.S. dollar to the extent the Fund is invested in securities denominated in currencies experiencing a devaluation. The Fund's fundamental investment policies permit the Fund to enter into
currency hedging transactions.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p>&nbsp;</p>
</td>
<td valign="top" colspan="2" width="641"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" colspan="2" width="641">
<p><font face="Times New Roman">In addition, accounting, auditing and financial reporting standards in foreign countries are different from U.S. standards. As a result, certain material disclosures may not be made and less information may be available to the
Fund and other investors than would be the case if the Fund's investments were restricted to securities of U.S. issuers. Moreover, it may be more difficult to obtain a judgment in a court outside the United States. Interest and dividends paid on securities held by
the Fund and gains from the disposition of such securities may be subject to withholding taxes imposed by foreign countries.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" width="641"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" colspan="2" width="641">
<p><u><font face="Times New Roman">Anti-takeover Provisions</font></u>. Certain provisions of the Fund's charter may be regarded as "anti-takeover" provisions because they could have the effect of limiting the ability of other entities or persons to acquire
control of the Fund. See Item 10.1(e).</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" width="641"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" colspan="2" width="641">
<p><u><font face="Times New Roman">Premium/Discount From Net Asset Value</font></u>. Shares of closed-end investment companies trade in the market above, at and below net asset value. This characteristic of shares of closed-end investment companies is a risk
separate and distinct from the risk that the Fund's net asset value may decline. Since inception, the Fund's common stock has generally traded at a premium to net asset value. For example, in the two-year period ended December 31, 2004, as of the close of business of
the New York Stock Exchange on the last day in each week on which the New York Stock Exchange was open (the date the Fund calculates its net asset value per share), the Fund's shares were trading at a premium to net asset value 100% of the time. The Fund usually does
not calculate its net asset value per share on any other day and does not know whether the Fund's shares were trading at a premium to net asset value on such days. The Fund is not able to predict whether its shares will trade above, at or below net asset value in the
future.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" width="641"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" colspan="2" width="641">
<p><u><font face="Times New Roman">Dividend Capture Risk</font></u>. The Fund seeks to increase its dividend income using a strategy called "dividend capture."&nbsp; In a dividend capture trade, the Fund sells a stock that it held past its ex-dividend date to
purchase another stock paying a dividend before the next dividend of the stock being sold. The use of dividend capture strategies exposes the Fund to increased trading costs and the potential for capital loss. During 2004, dividend captures accounted for
approximately 5.41% of the Fund's net investment income and had a impact on the Fund's net asset value (including both transaction costs and capital losses) of
- -0.02%. Since early 2004, the Fund has derived less of its income from dividend captures and more of
its income from investment gains. Until the Fund utilizes all of its tax loss carry forwards, distributions derived from capital gains in the Fund's portfolio may constitute ordinary income, rather than capital gains, to shareholders. See Item 23, "Tax Status."</p>
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Tax Risk</u>. The Fund's investment program and the tax treatment of Fund
distributions may be affected by Internal Revenue Service (&quot;IRS&quot;)
interpretations of the Internal Revenue Code of 1986 (the &quot;Code&quot;) and future
changes in tax laws and regulations, including changes as a result of the
&quot;sunset&quot; provisions that currently apply to the favorable tax treatment of
qualified dividends. There can be no assurance that any portion of the Fund's
income distributions will not be fully taxable as ordinary income. In order for
the Fund to avoid corporate-level income tax, the Fund must qualify each year as
a regulated investment company under the Code. See Item 23, &quot;Tax Status.&quot;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Investment and Market Risk</u>. An investment in the Fund is subject to
investment risk, including the possible loss of the entire principal amount
invested. An investment in the Fund represents an indirect investment in the
securities owned by the Fund, which are generally traded on a securities
exchange or in the over-the-counter markets. The value of these securities, like
other market investments, may move up or down, sometimes rapidly and
unpredictably.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Income Risk</u>. The income that holders of preferred stock and common stock
receive from the Fund is based primarily on the dividends and interest it earns
from its investments, which can vary widely over the short and long-term. If
prevailing market interest rates drop, distribution rates of the Fund's
preferred stock holdings and any bond holdings and preferred and common
shareholders' income from the Fund could drop as well. The Fund's income also
would likely be affected adversely when prevailing short-term interest rates
increase and the Fund is utilizing leverage.</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Management Risk</u>. The Fund is subject to management risk because it is an
actively managed portfolio. The Adviser and the individual portfolio managers
apply investment techniques and risk analyses in making investment decisions for
the Fund, but there can be no guarantee that these will produce the desired
results.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>
<TR>
<TD colSpan=3><FONT size=1>

</FONT></TD></TR>
<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Utilities Industry Risk</u>. The Fund invests a significant portion of its
assets in securities of issuers in the public utilities industry. This may make
the Fund more susceptible to adverse economic, political or regulatory
occurrences affecting this sector. As concentration in a sector increases, so
does the potential for fluctuation in the net asset value of the Fund's assets. </td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
Certain segments of the public utilities industry and individual companies
within such segments may not perform as well as the sector as a whole. The
public utilities industry historically has been subject to risks of increases in
fuel, purchased power and other operating costs, high interest costs on
borrowings needed for capital improvement programs and costs associated with
compliance with and changes in environmental and other governmental regulations.
Telecommunications companies in particular have been subject to risks associated
with increasing levels of competition, technology substitution (i.e. wireless,
broadband and voice over Internet protocol, or VoIP), industry overcapacity,
consolidation and regulatory uncertainty.</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Common Stock Risk</u>. The Fund has substantial exposure to common stocks.
Although common stocks have historically generated higher average returns than
fixed-income securities over the long-term, common stocks also have experienced
significantly more volatility in returns. An adverse event, such as an
unfavorable earnings report, may depress the value of a particular common stock
held by the Fund. Also, the price of common stocks are sensitive to general
movements in the stock market and a drop in the stock market may depress the
price of common stocks to which the Fund has exposure. Common stock prices
fluctuate for many reasons, including changes in investors' perceptions of the
financial condition of an issuer or the general condition of the relevant stock
market, or when political or economic events affecting the issuer occur. In
addition, common stock prices may be sensitive to rising interest rates, as the
costs of capital rise and borrowing costs increase.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Small and Mid-Cap Stock Risk</u>. The Fund may invest its portfolio of equity
securities in companies of any market capitalization. The Fund's investments in
small and medium-sized companies may be subject to more abrupt or erratic
movements in price than its investments in larger, more established companies
because the securities of such companies are less well-known, held primarily by
insiders or institutional investors or may trade less frequently and in lower
volume. Furthermore, small and medium-sized companies are more likely to
experience greater or more unexpected changes in their earnings and growth
prospects. Such companies often have limited financial resources or may depend
on a few key employees, and the products or technologies of such companies may
be at a relatively early stage of development or not fully tested.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Preferred Stock Risk</u>. The Fund has exposure to preferred stocks.
Preferred stocks involve credit risk, which is the risk that a preferred stock
will decline in price, or fail to pay dividends when expected, because the
issuer experiences a decline in its financial status. In addition to credit
risk, investment in preferred stocks involves certain other risks. Certain
preferred stocks contain provisions that allow an issuer under certain
conditions to skip distributions (in the case of &quot;non-cumulative&quot; preferred
stocks) or defer distributions (in the case of &quot;cumulative&quot; preferred stocks).
If the Fund owns a preferred stock that is deferring its distributions, the Fund
may be required to report income for tax purposes while it is not receiving
income on this position. Preferred stocks often contain provisions that allow
for redemption in the event of certain tax or legal changes or at the issuers'
call. In the event of redemption, the Fund may not be able to reinvest the
proceeds at comparable rates of return. Preferred stocks typically do not
provide any voting rights, except in cases when dividends are in arrears beyond
a certain time period, which varies by issue. Preferred stocks are subordinated
to bonds and other debt instruments in a company's capital structure in terms of
priority to corporate income and liquidation payments, and therefore are subject
to greater credit risk than those debt instruments. Preferred stocks may be
significantly less liquid than many other securities, such as U.S. government
securities, corporate debt or common stock.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Issuer Risk</u>. The value of common and preferred stocks may decline for a
number of reasons which directly relate to the issuer, such as management
performance, leverage and reduced demand for the issuer's goods and services.&nbsp;
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Debt Securities Risk</u>. In addition to credit risk, investment in debt
securities carries certain risks, including:</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
<u>Redemption Risk</u>. Debt securities sometimes contain provisions that allow
for redemption in the event of tax or security law changes in addition to call
features at the option of the issuer. In the event of a redemption, the Fund may
not be able to reinvest the proceeds at comparable rates of return.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
<u>Limited Voting Rights</u>. Debt securities typically do not provide any
voting rights, except in cases when interest payments have not been made and the
issuer is in default.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" width="53">
&nbsp;</td>
<td valign="top" width="588">
<u>Liquidity</u>. Certain debt securities may be substantially less liquid than
many other securities, such as U.S. government securities or common stocks.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Credit Risk</u>. Credit risk is the risk that an issuer of a preferred or
debt security will become unable to meet its obligation to make dividend,
interest and principal payments. In general, lower rated preferred or debt
securities carry a greater degree of credit risk. If rating agencies lower their
ratings of preferred or debt securities in the Fund's portfolio, the value of
those obligations could decline, which could jeopardize the rating agencies'
ratings of the preferred stock issued by the Fund. In addition, the underlying
revenue source for a preferred or debt security may be insufficient to pay
dividends, interest or principal in a timely manner. Because a primary source of
income for the Fund is the dividend, interest and principal payments on the
preferred or debt securities in which it invests, any default by an issuer of a
preferred or debt security could have a negative impact on the Fund's ability to
pay dividends to its investors. Even if the issuer does not actually default,
adverse changes in the issuer's financial condition may negatively affect its
credit rating or presumed creditworthiness. These developments would adversely
affect the market value of the issuer's obligations or the value of credit
derivatives if the Fund has sold credit protection.</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Hedging Strategy Risk</u>. Certain of the investment techniques that the Fund
may employ for hedging or, under certain circumstances, to increase income or
total return, will expose the Fund to risks. Such investment techniques may
include entering into interest rate and stock index futures contracts and
options on interest rate and stock index futures contracts, purchasing and
selling put and call options on securities and stock indices, purchasing and
selling securities on a when-issued or delayed delivery basis and lending
portfolio securities. The Fund intends to comply with regulations of the
Securities and Exchange Commission (the &quot;SEC&quot;) involving &quot;covering&quot; or
segregating assets in connection with the Fund's use of options and futures
contracts.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
There are economic costs of hedging reflected in the pricing of futures, swaps,
options and contracts related to options on positions in interest rate swaps
which can be significant, particularly when long-term interest rates are
substantially above short-term interest rates, as is the case at present. There
may be an imperfect correlation between changes in the value of the Fund's
portfolio holdings and hedging positions entered into by the Fund, which may
prevent the Fund from achieving the intended hedge or expose the Fund to risk of
loss. In addition, the Fund's success in using hedge instruments is subject to
the Adviser's ability to predict correctly changes in the relationships of such
hedge instruments to the Fund's portfolio holdings, and there can be no
assurance that the Adviser's judgment in this respect will be accurate.
Consequently, the use of hedging transactions might result in a poorer overall
performance for the Fund, whether or not adjusted for risk, than if the Fund had
not hedged its portfolio holdings.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Derivatives Risk</u>. To the extent the Fund enters into derivatives
transactions (such as futures contracts and options thereon, options and swaps),
the Fund will be subject to increased risk of principal loss due to imperfect
correlation or unexpected price or interest rate movements. The Fund also will
be subject to credit risk with respect to the counterparties to the derivatives
contracts purchased by the Fund. If a counterparty becomes bankrupt or otherwise
fails to perform its obligations under a derivative contract due to financial
difficulties, the Fund may experience significant delays in obtaining any
recovery under the derivative contract in a bankruptcy or other reorganization
proceeding. The Fund may obtain only a limited recovery or may obtain no
recovery in such circumstances. As a general matter, dividends received on
hedged stock positions are characterized as ordinary income and are not eligible
for favorable tax treatment. In addition, use of derivatives may give rise to
short-term capital gains and other income that would not qualify for payments by
the Fund of qualified dividends.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Market Disruption Risk</u>. The war with Iraq and the continuing occupation
of that country by coalition forces have had a substantial impact on the U.S.
and world economies and securities markets. The duration and nature of the war
and occupation and the potential costs of rebuilding the Iraqi infrastructure
and political systems cannot be predicted with any certainty. The war and
occupation, terrorism and related geopolitical risks have led, and may in the
future lead, to increased short-term market volatility and may have adverse
long-term effects on U.S. and world economies and markets generally. Those
events could also have an acute effect on individual issuers or related groups
of issuers. These risks could also adversely affect securities markets, interest
rates, auctions, secondary trading, ratings, credit risk, inflation, deflation
and other factors relating to the Fund's stock.
</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">&nbsp;</td>
<td valign="top" colspan="2" width="641">
<u>Inflation Risk</u>. Inflation risk is the risk that the purchasing power of
assets or income from investment will be worth less in the future as inflation
decreases the value of money. As inflation increases, the real value of the
Fund's preferred stock and common stock, and distributions thereon, can decline.
In addition, during any periods of rising inflation, dividend rates of preferred
stock issued by the Fund would likely increase, which would tend to further
reduce returns to the Fund's shareholders.</td>
</tr>
</table>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Other Policies</u></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; None.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Share Price Data</u></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's common stock has been listed on the New York Stock Exchange since January 21, 1987 (trading symbol DNP). Since the
commencement of trading, the Fund's common stock has most frequently traded at a premium to net asset value, but has periodically traded at a slight discount. The following table shows the range of the market prices of the Fund's common stock, net asset value of the
Fund's shares corresponding to such high and low prices and the premium to net asset value presented by such high and low prices:</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td colspan="3" valign="bottom" width="161">
<p><b><u><font size="2" face="Times New Roman">Quarter Ended</font></u></b></p>
</td>
<td valign="bottom" width="12">
<p align="center">&nbsp;</td>
<td colspan="3" valign="bottom" width="118">
<p align="center"><b><u><font size="2" face="Times New Roman">Market Price</font></u></b></p>
</td>
<td valign="bottom" width="30">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="3" valign="bottom" width="142">
<p align="center"><b><u><font size="2" face="Times New Roman">Net Asset Value at</font></u></b></p>
</td>
<td valign="bottom" width="34">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="3" valign="bottom" width="167">
<p align="center"><b><font size="2" face="Times New Roman">Market Premium (Discount)<br />
 <u>to Net Asset Value at</u></font></b></p>
</td>
</tr>

<tr>
<td valign="bottom" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="98"></td>
<td valign="bottom" width="12">
<p align="center">&nbsp;</td>
<td valign="bottom" width="54">
<p align="center"><b><u><font size="2" face="Times New Roman">High</font></u></b></td>
<td valign="bottom" width="11">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="53">
<p align="center"><b><u><font size="2" face="Times New Roman">Low</font></u></b></p>
</td>
<td valign="bottom" width="30">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="64">
<p align="center"><b><font size="2" face="Times New Roman">Market<br />
 <u>High</u></font></b></p>
</td>
<td valign="bottom" width="17">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="61">
<p align="center"><b><font size="2" face="Times New Roman">Market<br />
 <u>Low</u></font></b></p>
</td>
<td valign="bottom" width="34"></td>
<td valign="bottom" width="76">
<p align="center"><b><font size="2" face="Times New Roman">Market<br />
 <u>High</u></font></b></p>
</td>
<td valign="bottom" width="22">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom" width="69">
<p align="center"><b><font size="2" face="Times New Roman">Market<br />
 <u>Low</u></font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">2005</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">March 31</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">$11.93</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">$10.24</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">$8.65</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font size="2" face="Times New Roman">$8.65</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font size="2" face="Times New Roman">37.92%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">18.38%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">2004</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">December 31</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.95</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.10</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;8.75</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">8.24</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">36.57%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font size="2" face="Times New Roman">34.71%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">September 30</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.38</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;10.52</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;8.14</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">7.77</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">39.80%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font size="2" face="Times New Roman">35.39%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">June 30</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.40</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;9.60</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;8.24</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">7.53</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font size="2" face="Times New Roman">38.35%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">27.49%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">March 31</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.42</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;10.73</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;8.17</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">8.12</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">39.78%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">32.14%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">December 31</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.08</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;10.12</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;7.91</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">7.61</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">40.08%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">32.98%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">September 30</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.09</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;9.90</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;7.53</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">7.32</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">47.28%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">35.25%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">June 30</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;11.08</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;9.87</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;7.93</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">6.94</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">39.72%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">42.22%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>

<tr>
<td valign="top" width="42">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">March 31</font></p>
</td>
<td valign="top" width="12"></td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">&nbsp;10.75</font></p>
</td>
<td valign="top" width="11"></td>
<td valign="top" width="53">
<p align="center"><font size="2" face="Times New Roman">&nbsp;9.69</font></p>
</td>
<td valign="top" width="30"></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">&nbsp;7.51</font></p>
</td>
<td valign="top" width="17"></td>
<td valign="top" width="61">
<p align="center"><font face="Times New Roman" size="2">6.85</font></p>
</td>
<td valign="top" width="34"></td>
<td valign="top" width="76">
<p align="center"><font face="Times New Roman" size="2">43.14%</font></p>
</td>
<td valign="top" width="22"></td>
<td valign="top" width="69">
<p align="center"><font face="Times New Roman" size="2">41.46%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="42">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="21">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98"></td>
<td valign="top" width="12"></td>
<td valign="top" width="54"></td>
<td valign="top" width="11"></td>
<td valign="top" width="53"></td>
<td valign="top" width="30"></td>
<td valign="top" width="64"></td>
<td valign="top" width="17"></td>
<td valign="top" width="61"></td>
<td valign="top" width="34"></td>
<td valign="top" width="76"></td>
<td valign="top" width="22"></td>
<td valign="top" width="69"></td>
</tr>
</table>

<p><font face="Times New Roman">On April 15, 2005, the net asset value was $8.49, trading prices ranged between $11.00
and $10.81 (representing a premium to net asset value of 29.56% and 27.33%, respectively) and the closing price was $10.95 (representing a
premium to net asset value of 28.98%).</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Business Development Companies</u></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 9</font></u>. <u>Management</u></p>

<table border="0" cellspacing="0" cellpadding="0" width="697">
<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">
<font face="Times New Roman">1.&nbsp; </font>
</td>
<td colspan="2" valign="top" width="581">
<font face="Times New Roman"> <u>General</u></font></td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">
&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Board of Directors</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top" width="641">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The business and affairs of the Fund are managed under the direction of the board of directors.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top" width="641">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Investment Adviser</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's investment adviser (the "Adviser") is Duff &amp; Phelps Investment Management Co., 55 East Monroe Street, Chicago, Illinois
60603. The Adviser (together with its predecessor) has been in the investment advisory business for more than
70 years and, excluding the Fund, currently has more than $3.1 billion in client accounts under discretionary management. The Adviser acts as adviser to two
other closed-end investment companies registered under the 1940 Act and as sub-adviser to three open-end investment companies registered under the 1940 Act. The Adviser is a wholly-owned subsidiary of Phoenix Investment Partners, Ltd. ("PXP"),
which is an indirect, wholly-owned subsidiary of The Phoenix Companies, Inc. (&quot;PNX&quot;),
a life insurance holding company whose securities are listed on the New York
Stock Exchange. Prior to May 11, 1998, PXP was known as Phoenix Duff &amp; Phelps Corporation. PXP, through its subsidiaries, provides investment management,
investment research, financial consulting and investment banking services.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Adviser is responsible for the management of the Fund's investment portfolio, subject to the overall control of the board of
directors of the Fund.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under the terms of an investment advisory agreement between the Fund and the Adviser (the "Advisory Agreement"), the Adviser receives
from the Fund a quarterly fee at an annual rate of .60% of the average weekly net asset value of the Fund up to $1.5 billion and .50% of average weekly net assets in excess of $1.5 billion. The net assets for each weekly period are determined by averaging the net
assets at the end of a week with the net assets at the end of the prior week. For purposes of the foregoing calculation, "net assets" are defined as the sum of (i) the aggregate net asset value of the Fund's common stock, (ii) the aggregate liquidation preference of
the Fund's preferred stock and (iii) the aggregate proceeds to the Fund of commercial paper issued by the Fund.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under the terms of a service agreement among the Adviser, PXP and the Fund (the "Service Agreement"), PXP makes available to the Adviser the services, on a part-time basis, of its employees and various facilities to enable the Adviser to perform certain of its obligations to the Fund. However, the obligation of performance under the Advisory Agreement
is solely that of the Adviser, for which PXP assumes no responsibility, except as described in the preceding sentence. The Adviser reimburses PXP for any costs, direct or indirect, fairly attributable to the services
performed and the facilities provided by PXP under the Service Agreement. The Fund does not pay any fees pursuant to the Service Agreement.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>
<p style="page-break-before:always">
<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Portfolio Management</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A team of investment professionals employed by the Adviser is responsible for
the day-to-day management of the Fund's portfolio. The members of that
investment team and their respective areas of responsibility and expertise are
as follows:
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Nathan I. Partain, CFA, has led the Fund's portfolio management team since 1998
and has served on the Fund's portfolio management team since 1996. He has been
President, Chief Executive Officer and Chief Investment Officer of the Fund
since February 2001 (Executive Vice President and Chief Investment Officer from
1998 to 2001). Mr. Partain has been President of the Adviser since April 2005
(Executive Vice President from 1997 to 2005), President and Chief Executive
Officer of DTF Tax-Free Income Inc. and Duff &amp; Phelps Utility and Corporate Bond
Trust Inc., two other closed-end utilities oriented funds (the &quot;DTF and DUC
Funds&quot;), since February 2004, and lead portfolio manager of Phoenix Global
Utilities Fund, an open-end utilities oriented fund, since October 2004. He
joined the Duff &amp; Phelps organization in 1987 and has served since then in
positions of increasing responsibility. He is also a director of Otter Tail
Corporation (since 1993).
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
T. Brooks Beittel, CFA has served on the Fund's portfolio management team and
has been Secretary and a Senior Vice President of the Fund since January 1995
(Treasurer from January 1995 to September 2002). He is also a member of the
portfolio management teams of Duff &amp; Phelps Utility and Corporate Bond Trust
Inc. and Phoenix Global Utilities Fund. Mr. Beittel concentrates his research on
fixed-income securities. He joined the Duff &amp; Phelps organization in 1986 and
has served since then in positions of increasing responsibility.
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Michael Schatt has served on the Fund's portfolio management team since 1996 and
has been a Senior Vice President of the Fund since April 1998 (Vice President
from January 1997 to April 1998). Mr. Schatt has been a Senior Vice President of
the Adviser since January 1997 and was a Managing Director of PXP from 1994 to
1996. Mr. Schatt concentrates his research on REIT securities and is the senior
portfolio manager for all REIT products managed by the Adviser. These products
include the Phoenix-Duff &amp; Phelps Real Estate Securities Fund (PHRAX), the
Phoenix-Duff &amp; Phelps Real Estate Securities Series sub-account of the Phoenix
Edge Series annuity products, and various separate accounts. Before joining the
Duff &amp; Phelps organization in 1994, Mr. Schatt spent four years as a director of
the Real Estate Advisory Practice for Coopers &amp; Lybrand, LLC, advising foreign
pension funds on the acquisition and disposition of U.S. real estate assets and
assisting clients in evaluating public real estate investments as an alternative
to private real estate investments. Prior to joining Coopers &amp; Lybrand, he had
10 years' experience in real estate finance.
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Deborah A. Jansen, CFA, has served on the Fund's portfolio management team and
has been a Senior Vice President of the Adviser since January 2001. She is also
a member of the portfolio management team of Phoenix Global Utilities Fund. Ms.
Jansen concentrates her research on the global electric and natural gas
industries. Prior to joining the Adviser in 2001, Ms. Jansen was a Senior Vice
President, Principal and Equity Portfolio Manager at Stein Roe and Farnham, Inc.
from 1996 to 2000.
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Randle L. Smith, CFA, has served on the Fund's portfolio management team since
1996 and has been a Senior Vice President of the Adviser since January 1998
(Managing Director from 1996 to 1998). He is also a member of the portfolio
management team of Phoenix Global Utilities Fund. Mr. Smith concentrates his
research on the global electric and natural gas industries. He joined the Duff &amp;
Phelps organization in 1990 and has served since then in positions of increasing
responsibility.
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Connie M. Luecke, CFA, has served on the Fund's portfolio management team since
1996 and has been a Senior Vice President of the Adviser since January 1998
(Managing Director from 1996 to 1998). She is also a member of the portfolio
management team of Phoenix Global Utilities Fund. Ms. Luecke concentrates her
research on the global telecommunications industries. She joined the Duff &amp;
Phelps organization in 1990 and has served since then in positions of increasing
responsibility.
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td colspan="2" valign="top" width="581">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>
Please refer to the Statement of Additional Information (Item 21) for additional
information about the Fund's portfolio managers, including the structure of and
method of computing compensation, other accounts they manage and their ownership
of securities of the Fund.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Administrator</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's administrator (the "Administrator") is J.J.B. Hilliard, W.L. Lyons, Inc., Hilliard Lyons Center, Louisville, Kentucky 40202.
The Administrator is a wholly-owned subsidiary of The PNC Financial Services Group, Inc. Under the terms of an administration agreement (the "Administration Agreement"), the Administrator provides all management and administrative services required in connection with
the operation of the Fund not required to be provided by the Adviser pursuant to the Advisory Agreement, as well as the necessary office facilities, equipment and personnel to perform such services. For its services, the Administrator receives from the Fund a
quarterly fee at annual rates of .25% of the Fund's average weekly net assets up to $100 million, .20% of the Fund's average weekly net assets from $100 million to $1.0 billion and .10% of average weekly net assets over $1.0 billion. The net assets for each weekly
period are determined by averaging the net assets at the end of a week with the net assets at the end of the prior week. For purposes of the foregoing calculation, "net assets" are defined as the sum of (i) the aggregate net asset value of the Fund's common stock,
(ii) the aggregate liquidation preference of the Fund's preferred stock and (iii) the aggregate proceeds to the Fund of commercial paper issued by the Fund.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Custodian</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's custodian is The Bank of New York, Church Street Station, Post Office Box 11258, New York, New York 10286. The transfer
agent and dividend disbursing agent for the Fund's common and preferred stock is The Bank of New York, Church Street Station, P.O. Box 11258, New York, New York 10286.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Expenses</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund is responsible for all expenses not paid by the Adviser or the Administrator, including brokerage fees.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Affiliated Brokerage</u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund has paid, and in the future may pay, broker commissions to the Administrator. See Item 22.2.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">2.</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">Non-resident Managers</font></u>.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">3.</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">Control Persons</font></u>.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund does not consider that any person "controls" the Fund within the meaning of this item. For information concerning the Fund's
officers and directors, see Item 18. No person is known by the Fund to own of record or beneficially five percent or more of any class of the Fund's outstanding equity securities.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td colspan="4" valign="top" width="697">
<p><u><font face="Times New Roman">Item 10</font></u>. &nbsp;&nbsp;<u>Capital Stock, Long-Term Debt, and Other Securities</u></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="697">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">Capital Stock</font></u>.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Common Stock</u>. Holders of common stock, $.001 par value per share, of the Fund are entitled to dividends when and as declared by the board of directors, to
one vote per share in the election of directors (with no right of cumulation), and to equal rights per share in the event of liquidation. They have no preemptive rights. There are no redemption, conversion or sinking fund provisions. The shares are not liable to
further calls or to assessment by the Fund.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Preferred Stock</u>. Holders of preferred stock, $.001 par value per share, of the Fund are entitled to receive dividends before the holders of the common
stock and are entitled to receive the liquidation value of their shares ($100,000 per share) before any distributions are made to the holders of the common stock, in the event the Fund is ever liquidated. Each share of preferred stock is entitled to one vote per
share. The holders of the preferred stock have the right to elect two directors of the Fund at all times and to elect a majority of the directors if at any time dividends on the preferred stock are unpaid for two years. In addition to any approval by the holders of
the shares of the Fund that might otherwise be required, the approval of the holders of a majority of the outstanding shares of the preferred stock, voting separately as a class, will be required under the 1940 Act to adopt any plan of reorganization that would
adversely affect the holders of preferred stock and to approve, among other things, changes in the Fund's sub-classification as a closed-end investment company, changes in its investment objectives or changes in its fundamental investment restrictions.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Subject to certain restrictions, the Fund may, and under certain circumstances is required to, redeem shares of its preferred stock at a price of $100,000 per share, plus accumulated but unpaid dividends. The shares of
preferred stock are not liable to further calls or to assessment by the Fund. There are no preemptive rights or sinking fund or conversion provisions. The Fund, may, however, upon the occurrence of certain events, authorize the exchange of its current preferred stock
on a share-for-share basis for a separate series of authorized but unissued preferred stock having different dividend privileges.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Dividend Reinvestment Plan</u>. Under the Fund's dividend reinvestment plan shareholders may elect to have all dividends and capital gains distributions paid
on their common stock automatically reinvested by The Bank of New York, as agent for shareholders, in additional shares of common stock of the Fund. Registered shareholders may participate in the plan. The plan permits a nominee, other than a depository, to
participate on behalf of those beneficial owners for whom it is holding shares who elect to participate. However, some nominees may not permit a beneficial owner to participate without transferring the shares into the owner's name. Shareholders who do not elect to
participate in the plan will receive all distributions in cash paid by check mailed directly to the shareholder (or, if the shareholder's shares are held in street or other nominee name, then to such shareholder's nominee) by The Bank of New York as dividend
disbursing agent. Registered shareholders may also elect to have cash dividends deposited directly into their bank accounts.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">When a dividend or distribution is reinvested under the plan, the number of shares of common stock equivalent to the cash dividend or distribution is determined as follows:</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Courier New">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="100%">
<p style="text-indent: 25; margin-left: 50; margin-top: 0; margin-bottom: 0"><font face="Times New Roman">(i)&nbsp; If shares of the common stock
are trading at net asset value or at a premium above net asset value at the valuation date, the Fund issues new shares of common stock at the greater of net asset value or 95% of the then current market price.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="text-indent: 25; margin-left: 50; margin-top: 0; margin-bottom: 0"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Courier New">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="100%">
<p style="text-indent: 25; margin-left: 50; margin-top: 0; margin-bottom: 0"><font face="Times New Roman">(ii)&nbsp; If shares of the common
stock are trading at a discount from net asset value at the valuation date, The Bank of New York receives the dividend or distribution in cash and uses it to purchase shares of common stock in the open market, on the  New York Stock Exchange or elsewhere, for the participants' accounts. Shares are allocated to participants' accounts at the average price per share, plus commissions, paid by The Bank of New York for all shares purchased by it. If, before The Bank of New York has completed its purchases, the market price exceeds the net asset value of a share, the average purchase price per share paid by The Bank of New York may exceed the net asset value of the Fund's shares, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The valuation date is the business day immediately preceding the date of payment of the dividend or distribution. On that date, the Administrator compares that day's net asset value per share and the closing price per share on
the New York Stock Exchange and determines which of the two alternative procedures described above will be followed.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Courier New">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The reinvestment shares are credited to the participant's plan account in the Fund's stock records maintained by The Bank of New York, including a fractional share to four decimal places. The Bank of New York will send
participants written confirmation of all transactions in the participant's plan account, including information participants will need for tax records. Shares held in the participant's plan account have full dividend and voting rights. Dividends and distributions paid
on shares held in the participant's plan account will also be reinvested.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The cost of administering the plan is borne by the Fund. There is no brokerage commission on shares issued directly by the Fund. However, participants do pay a pro rata share of brokerage commissions incurred on any open
market purchases of shares by The Bank of New York.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The automatic reinvestment of dividends and distributions does not relieve participants of any income taxes that may be payable (or required to be withheld) on dividends or distributions.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">If the closing market price of shares of the Fund's common stock should be equal to or greater than their net asset value on the valuation date, the participants in the plan would receive shares priced at the higher of net
asset value or 95% of the market price. Consequently they would receive more shares at a lower per share price than if they had used the cash distribution to purchase Fund shares on the payment date in the market at the market price plus commission.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">If the market price should be less than net asset value on the valuation date, the cash distribution for the plan participants would be used by The Bank of New York to purchase the shares to be received by the participants,
which would be at a discount from net asset value unless the market price should rise during the purchase period so that the average price and commission exceeded net asset value as of the payment date. Also, since the Fund does not redeem its shares, the price on
resale may be less or more than the net asset value.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Plan participants may purchase additional shares of common stock through the plan by delivering to The Bank of New York a check for at least $100, but not more than $5,000, in any month. The Bank of New York will use such
funds to purchase shares in the open market or in private transactions. The purchase price of such shares may be more than or less than net asset value per share. The Fund will not issue new shares or supply treasury shares for such voluntary additional share
investment. Purchases will be made commencing with the time of the first distribution payment following the second business day after receipt of the funds for additional purchases, and may be aggregated with purchases of shares for reinvestment of the distribution.
Shares will be allocated to the accounts of participants purchasing additional shares at the average price per share, plus a service charge of $2.50 imposed by The Bank of New York and a pro rata share of any brokerage commission (or equivalent purchase costs) paid
by The Bank of New York in connection with such purchases. Funds sent to the bank for voluntary additional share reinvestment may be recalled by the participant by written notice received by The Bank of New York not later than two business days before the next
dividend payment date. If for any reason a regular monthly dividend is not paid by the Fund, funds for voluntary additional share investment will be returned to the participant, unless the participant specifically directs that such funds continue to be held by The
Bank of New York for subsequent investment. Participants will not receive interest on voluntary additional funds held by The Bank of New York pending investment.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">A shareholder may leave the plan at any time by written notice to The Bank of New York. To be effective for any given distribution, notice must be received by the Bank at least seven business days before the record date for
that distribution. When a shareholder leaves the plan: (i) such shareholder may request that The Bank of New York sell such shareholder's shares held in such shareholder's plan account and send such shareholder a check for the net proceeds (including payment of the
value of a fractional share, valued at the closing price of the Fund's common stock on the New York Stock Exchange on the date discontinuance is effective) after deducting The Bank of New York's $5.00 charge and any brokerage commission (or equivalent sale cost) or
(ii) if no request is made, such shareholder will receive a certificate for the number of full shares held in such shareholder's plan account, along with a check for any fractional share interest, valued at the closing price of the Fund's common stock on the New York
Stock Exchange on the date discontinuance is effective. If and when it is determined that the only balance remaining in a shareholder's plan account is a fraction of a single share, such shareholder's participation will be deemed to have terminated, and The Bank of
New York will send to such shareholder a check for the value of such fractional share, valued at the closing price of the Fund's common stock on the New York Stock Exchange on the date discontinuance is effective.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The Fund may change, suspend or terminate the plan at any time upon mailing a notice to participants.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">For more information regarding, and an authorization form for, the dividend reinvestment plan, please contact The Bank of New York at 1-877-381-2537 or on the World Wide Web at http://stock.bankofny.com.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Capital Gains Distribution Reinvestment Plan</u>. Unless otherwise indicated by a holder of shares of common stock of the Fund that does not participate in the
Fund's dividend reinvestment plan, all distributions in respect of capital gains distributions on shares of common stock held by such holder will be automatically invested by The Bank of New York, as agent of the common shareholders participating in the plan, in
additional shares of common stock of the Fund. Distributions in respect of capital gains distributions on shares of common stock that participate in the Fund's dividend reinvestment plan will be reinvested in accordance with the terms of such plan.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">In any year in which the Fund declares a capital gains distribution, the Fund after the declaration of such dividend and prior to its payment, will provide to each registered holder of Fund common stock that does not
participate in the Fund's dividend reinvestment plan a cash election card. A registered shareholder may elect to receive cash in lieu of shares in respect of a capital gains distribution by signing the cash election card in the name(s) of the registered
shareholder(s), and mailing the card to The Bank of New York.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">If a holder's shares of common stock, or some of them, are registered in the name of a broker or other nominee, and the holder wishes to receive a capital gains distribution in cash in lieu of shares of common stock, such
shareholder must exercise that election through its nominee (including any depositor of shares held in a securities depository).</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">When a distribution is reinvested under the plan, the number of reinvestment shares is determined as follows:</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td valign="top" width="60">&nbsp;</td>
<td valign="top" width="581" colspan="2">&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="581" colspan="2">
<p style="margin-left: 50"><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp; If, at the time of
valuation, the shares are being traded in the securities markets at net asset
value or at a premium over net asset value, the reinvestment shares are obtained
by The Bank of New York directly from the Fund, at a price equal to the greater
of net asset value or 95% of the then current market price, without any
brokerage commissions (or equivalent purchase costs).</font></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td colspan="3" valign="top" width="641">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="581" colspan="2">
<p style="margin-left: 50"><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp; If, at the time of
valuation, the shares are being traded in the securities markets at a discount from net asset value, The Bank of New York receives
the distribution in cash, and uses it to purchase shares in the open market,
including on the New York Stock Exchange, or in private purchases. Shares of common stock
are allocated to participants at the average price per share, plus any brokerage
commissions (or equivalent transaction costs), paid by The Bank of New York for all
shares purchased by it in reinvestment of the distribution(s) paid on a particular
day.</font></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td colspan="3" valign="top" width="641">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The time of valuation is the close of trading on the New York Stock Exchange on the most recent day preceding the date of payment of the dividend or distribution on which that exchange is open for trading. As of that time, the
Administrator compares the net asset value per share as of the time of the close of trading on the New York Stock Exchange on that day and the last reported sale price per share on the New York Stock Exchange, and determines which of the alternative procedures
described above are to be followed.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="29"></td>
<td valign="top" width="552"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">If as of any day on which the last reported sale price of the Fund's shares on the New York Stock Exchange is required to be determined pursuant to this plan, no sales of the shares are reported on that exchange, the mean of
the bid prices and of the asked prices on that exchange as of the time of the close of trading on the exchange will be substituted.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="29"></td>
<td valign="top" width="552"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">No certificates will be issued representing fractional shares, nor will The Bank of New York purchase fractional shares in the market. The Bank of New York will send to all registered holders of common stock that do not
participate in the Fund's dividend reinvestment plan certificates for all shares of common stock purchased or issued pursuant to the capital gains distribution plan and cash in lieu of fractional shares of common stock.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Courier New">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="29"></td>
<td valign="top" width="552"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The Fund may change, suspend or terminate the plan at any time upon mailing a notice to participants.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="29"></td>
<td valign="top" width="552"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Anti-takeover provisions of charter and bylaws</u>. The Fund's charter includes provisions that could have the effect of limiting the ability of other entities
or persons to acquire control of the Fund or to change the composition of its board of directors and could have the effect of depriving shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging a third party from
seeking to obtain control of the Fund. The board of directors is divided into three classes, each having a term of three years. At each annual meeting of shareholders, the term of one class will expire. This provision could delay for up to two years the replacement
of a majority of the board of directors. A director may be removed from office only by vote of the holders of at least 75% of the shares of preferred stock or of common stock, as the case may be, entitled to be voted on the matter.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" width="29"></td>
<td valign="top" width="552"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The Fund's charter requires the favorable vote of the holders of at least 75% of the shares of preferred stock and common stock of the Fund entitled to be voted on the matter, voting together as a single class, to approve,
adopt or authorize the following:</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp; a merger or consolidation of
the Fund with another corporation,</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="margin-left: 50"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp; a sale of all or
substantially all of the Fund's assets (other than in the regular course of the Fund's investment activities), or</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="margin-left: 50"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p style="margin-left: 50"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp; a liquidation or
dissolution of the Fund, unless such action has been approved, adopted or authorized by the affirmative vote of two-thirds of the total number of directors fixed in accordance with the bylaws, in which case the affirmative vote of the holders of a majority of the outstanding shares of preferred stock and common stock entitled to be voted on the matter, voting together as a single class, is required.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">In addition, the holders of a majority of the outstanding shares of the preferred stock, voting separately as a class, would be required under the 1940 Act to adopt any plan of reorganization that would adversely affect the
holders of the preferred stock.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Finally, conversion of the Fund to an open-end investment company would require an amendment to the charter. Such an amendment would require the favorable vote of the holders of a majority of the shares of preferred stock and
common stock entitled to be voted on the matter voting separately by class. At any time, the amendment would have to be declared advisable by the board of directors prior to its submission to shareholders. Shareholders of an open-end investment company may require
the company to redeem their shares of common stock at any time (except in certain circumstances as authorized by or under the 1940 Act) at their net asset value, less such redemption charge, if any, as might be in effect at the time of a redemption. In addition,
conversion to an open-end investment company would require redemption of all outstanding shares of the preferred stock.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td valign="top" colspan="2" width="581">&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The board of directors has determined that the 75% voting requirements described above, which are greater than the minimum requirements under Maryland law or the 1940 Act, are in the best interests of shareholders generally.
Reference should be made to the charter on file with the&nbsp; SEC for the full text of these provisions.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60">
<p><font face="Times New Roman">2.</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">Long-Term Debt</font></u>.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60">
<p><font face="Times New Roman">3.</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">General</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60">
<p><font face="Times New Roman">4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="581">
<p><u><font face="Times New Roman">Taxes</font></u>. The Fund intends to continue to qualify as a regulated investment company under the  Code, as it has in each year since the inception of its operations, so as to be relieved of
Federal income tax on net investment income and net capital gains distributed to shareholders.</p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Dividends paid by the Fund from its ordinary income and distributions of the Fund's net realized short-term capital gains are taxable to shareholders as ordinary income. Under legislation enacted in 2003, ordinary income
dividends shareholders receive may be taxed at the same rates as long-term capital gains. However, even if income received in the form of ordinary income dividends is taxed at the same rates as long-term capital gains, such income will not be considered long-term
capital gains for other Federal income tax purposes. For example, a shareholder generally will not be permitted to offset ordinary income dividends with capital losses. Short-term capital gain distributions will continue to be taxed at ordinary income rates. So long
as the Fund has capital loss carry forwards, distributions derived from capital gains in the Fund's portfolio may constitute ordinary income, rather than capital gains, to shareholders.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">Shareholders may be proportionately liable for taxes on income and gains of the Fund but shareholders not subject to tax on their income will not be required to pay tax on amounts distributed to them. The Fund will inform
shareholders of the amount and nature of the income or gains. Dividends from ordinary income may be eligible for the dividends-received deduction available to corporate shareholders. Under its charter, the Fund is required to designate dividends paid on its preferred
stock as qualifying for the dividends-received deduction to the extent such dividends do not exceed the Fund's qualifying income. In the event the Fund is required to allocate all of its qualifying income to dividends on the preferred stock, dividends payable on the
common stock will not be eligible for the dividends-received deduction. Any distributions attributable to the Fund's net realized long-term capital gains are taxable to shareholders as long-term capital gains, regardless of the holding period of shares of the Fund.
Under current law, the maximum tax rate on long-term capital gains available to non-corporate shareholders generally is 15%. Without future congressional action, the maximum tax rate on long-term capital gains would return to 20% in 2009, and the maximum tax rate on
dividends would move to 35% in 2009 and 39.6% in 2011.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>

<tr>
<td valign="top" width="56"></td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581">
<p><font face="Times New Roman">The Fund intends to distribute substantially all its net investment income and net realized capital gains in the year earned or realized. A dividend reinvestment plan is available to all holders of common stock of the Fund.
Under the dividend reinvestment plan, all cash distributions to participating shareholders are reinvested in additional shares of common stock. See Item 10.1(c).</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="60"></td>
<td colspan="2" valign="top" width="581"></td>
</tr>
</table>
<p style="page-break-before:always">
<table border="0" cellspacing="0" cellpadding="0" width="697">
<tr>
<td valign="top" width="56"></td>
<td valign="top" width="59">
<p><font face="Times New Roman">5.</font></p>
</td>
<td valign="top" width="582">
<p><u><font face="Times New Roman">Outstanding Securities</font></u></p>
</td>
</tr>
</table>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="100%">
<tr>
<td valign="bottom">
<p align="center"><font face="Times New Roman">(1)<br />
 <u>Title of Class</u></font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">(2)<br />
 <u>Amount Authorized</u></font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">(3)<br />
 Amount Held by<br />
 the Fund or for<br />
 <u>its Account</u></font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">(4)<br />
 Amount Outstanding<br />
 at 3/31/2005 Exclusive<br />
 of Amount Shown<br />
 <u>Under (3)</u></font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
<td valign="bottom"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Common, $.001 par value</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">250,000,000</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">-0-</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">221,966,221</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Preferred, $.001 par value</font></p>
</td>
<td valign="top"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">100,000,000</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">-0-</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">5,000</font></p>
</td>
</tr>
</table>
</div>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Securities Ratings</u>.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 11</font></u>. <u>Defaults and Arrears on Senior Securities</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 12</font></u>. <u>Legal Proceedings</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;There are no pending legal proceedings to which the Fund, any subsidiary of the Fund, or the Adviser is a party.</font></p>

<p><u><font face="Times New Roman">Item 13</font></u>. <u>Table of Contents of the Statement of Additional Information</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PART B&nbsp; INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION</font></p>

<p><u><font face="Times New Roman">Item 14</font></u>. <u>Cover Page</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 15</font></u>. <u>Table of Contents</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 16</font></u>. <u>General Information and History</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the past five years, the Fund has not engaged in any business other than that of an investment company and has not been the
subject of any bankruptcy, receivership or similar proceedings, or any other material reorganization, readjustment or succession. The Fund's name was changed from Duff &amp; Phelps Utilities Income Inc. on April 23, 2002.</font></p>

<p><u><font face="Times New Roman">Item 17</font></u>. <u>Investment Objective and Policies</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Item 8.2.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Item 8.2.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Item 8.2.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund's portfolio turnover rate was
43.71% in 2004, 242.69% in 2003 and
197.27% in 2002. The portfolio turnover rate tends to be correlated with the level of the Fund's dividend captures, which decreased in 2004 relative to 2003 and increased in 2003 relative to 2002.
The Fund lowered its turnover rate in
2004 by reducing the level of dividend captures and utilizing investment gains within the portfolio. See Item 8.3, "Risk Factors-Dividend Captures&quot;
and &quot;-Portfolio Turnover Risk.&quot;</font></p>

<p><u><font face="Times New Roman">Item 18</font></u>. <u>Management</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.&nbsp;&nbsp;&nbsp;&nbsp; Set forth below are the names and certain biographical information about the directors and officers of the Fund. Except as indicated
in the table, directors are elected by the holders of the Fund's common stock. The officers are elected at the annual meeting of the board of directors of the Fund. Except as indicated in footnote (7) to the table, no director oversees any other portfolios in the
Phoenix fund complex.</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="2" valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td colspan="2" valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td colspan="2" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
</tr>

<tr>
<td colspan="2" valign="bottom">
<p align="center"><b><font face="Times New Roman">Name,<br />
 Address<br />
 <u>and Age</u></font></b></p>
</td>
<td valign="bottom"></td>
<td colspan="2" valign="bottom">
<p align="center"><b><font face="Times New Roman">Position(s) Held With the<br>
Fund, Length of Time Served<u><br>
and Term of Office</u></font></b></p>
</td>
<td colspan="2" valign="bottom"></td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">Principal Occupation(s)<br />
 During Past 5 Years<br />
 <u>and Other Affiliations</u></font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="bottom"></td>
<td height="1" valign="bottom">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom"></td>
<td colspan="2" height="1" valign="bottom">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="bottom">
<p><b><i><font face="Times New Roman">Interested Director</font></i></b></p>
</td>
<td height="1" valign="bottom"></td>
<td colspan="2" height="1" valign="bottom"></td>
<td colspan="2" height="1" valign="bottom"></td>
<td height="1" valign="bottom"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom">
<p><b><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Claire V. Hansen (1)(2)<br>
55
 East Monroe Street<br />
 Chicago, Illinois<br />
 60603<br />
 Age: 79</font></p>
</td>
<td height="1" valign="bottom"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Chairman and director<br />
 since January 1987.<br />
 Term expires in 2005.</font></p>
</td>
<td colspan="2" height="1" valign="bottom"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Senior Advisor to the Board of Director of PXP since November 1995; President and Chief Executive Officer, DNP Select Income Fund Inc. January 2000-February 2001; Senior Advisor to the Board
of Directors, Duff &amp; Phelps Corporation, 1988-November 1995 (Chairman of the Board, 1987-1988; Chairman of the Board and Chief Executive Officer prior thereto); Chairman of the Board, Duff &amp; Phelps Investment Management Co.,
1985-1987</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="bottom">
<p><b><font face="Times New Roman">&nbsp;&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="bottom">
<p><b><i><font face="Times New Roman">Independent Directors</font></i></b></p>
</td>
<td height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Stewart E. Conner (5)<br />
 500 West Jefferson St.<br />
 Louisville, Kentucky 40202<br />
 Age: 63</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since April 2004.<br />
 Term expires in 2007.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Attorney, Wyatt Tarrant &amp; Combs LLP since 1966 (Chairman, Executive Committee
2000-2004, Managing Partner 1988-2000)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Connie K. Duckworth (3)(5)<br />
 77 Stone Gate Lane<br />
 Lake Forest, Illinois 60045<br />
 Age: 50</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since April 2002.<br />
 Term expires in 2005.</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">Partner, Eight Wings Enterprises (investor in early-stage businesses) since December 2001; Advisory Director, Goldman, Sachs &amp; Company, December 2000-December 2001 (Managing Director, December 1996-December 2000, Partner
1990-1996, Chief Operating Officer of Firmwide Diversity Committee 1990-1995);
Director, Smurfit-Stone Container Corporation (packaging manufacturer); Trustee,
Northwestern Mutual Life Insurance Company; Director and Vice Chairman, Evanston
Northwestern Health Care Corporation; Member, Board of Overseers, Wharton School
of the University of Pennsylvania; Founder and President, Arzu,
Inc. (nonprofit corporation created to raise awareness of Afghan women through sale of homemade rugs)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Robert J. Genetski (3)(6)<br />
 107 Park Street<br>
 Saugatuck, MI 49453<br />
 Age: 62</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since April 2001.<br />
 Term expires in 2007.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">President, Robert Genetski &amp; Associates, Inc. (economic and financial consulting firm) since 1991; Senior Managing Director, Chicago Capital, Inc. (financial services firm) 1995-2001; former Senior Vice President and Chief
Economist, Harris Trust &amp; Savings Bank; Director, Midwest Bank and Trust
Company; author of several books; regular contributor to the <i>Nikkei Financial Daily</i></font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Francis E. Jeffries (2)(4)(7)<br />
 8477 Bay Colony Drive<br />
 Naples, Florida 34108<br />
 Age: 74</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since January 1987.<br />
 Term expires in 2007.<br />
 Vice Chairman since April 2004.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Oversees 28 portfolios in the Phoenix fund complex;
Chairman of the Board, DTF and DUC Funds since September 1991
and November 1992, respectively (President, January 2000-February 2004), Chairman
of PXP, November 1995-May 1997; Chairman and Chief Executive Officer, Duff &amp;
Phelps Corporation, June 1993-November 1995 (President and Chief Executive
Officer, January 1992-June 1993); Chairman of the Board, Duff &amp; Phelps
Investment Management Co. 1988-1993</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Nancy Lampton (4)(5)(6)<br />
 3 Riverfront Plaza<br />
 Louisville, Kentucky 40202<br />
 Age: 62</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since October 1994.<br />
 Term expires in 2006.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Chairman and Chief Executive Officer, Hardscuffle Inc. (insurance holding company) since January 2000; Chairman and Chief Executive Officer, American Life and Accident Insurance Company of Kentucky since 1971; Director,
Constellation Energy Group, Inc. (public utility holding company), Advisory
Board Member, Thorium Power, Inc. (designer of non-proliferative fuel for nuclear energy needs)</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Christian H. Poindexter (3)(4)<br />
 1997 Annapolis Exchange Pkwy.<br />
 Annapolis, Maryland 21401<br />
 Age: 66</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since May 2003.<br />
 Term expires in 2006.</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">Retired Chairman and Chief Executive Officer, Constellation Energy Group, Inc. (public utility holding company) (Executive Committee Chairman, July 2002-March 2003; Chairman of the Board, April 1999-July 2002;
Chief Executive Officer, April 1999-October 2001; President, April 1999-October 2000); Chairman, Baltimore Gas and Electric Company, January 1993-July 2002 (Chief Executive Officer, January 1993-July 2000; President, March 1998-October
2000; Director, 1988-2003); Director, Mercantile Bankshares Corporation (bank holding company); Director, The Baltimore Life Insurance Company;
Member, Finance and Investment Committee, National Executive Board, Boy Scouts
of America</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Carl F. Pollard (2)(3)<br />
 10500 W. U.S. Hwy 42<br />
 Goshen, Kentucky 40026<br />
 Age: 66</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since April 2002.<br />
 Term expires in 2005.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Owner, Hermitage Farm L.L.C. (Thoroughbred
breeding) since January 1995; Chairman, Columbia Healthcare Corporation
1993-1994; Chairman and Chief Executive Officer, Galen Health Care, Inc.
March-August 1993; President and Chief Operating Officer, Humana Inc. 1991-1993
(previously Senior Executive Vice President, Executive Vice President and Chief
Financial Officer); Chairman and Director, Churchill Downs Incorporated</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
</td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
</tr>

<TR>
<TD colSpan=3><FONT size=1>
</FONT></TD></TR>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">David J. Vitale (2)(5)<br />
 141 West Jackson Boulevard<br />
 Chicago, Illinois 60604<br />
 Age: 58</font></p>
</td>
<td height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Director since April 2000.<br />
 Term expires in 2006.</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><b><font face="Times New Roman">&nbsp;</font></b></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">Chief Administrative Officer, Chicago Public Schools since April 2003; Private investor November 2002-April 2003; President and Chief Executive Officer, Board of Trade of the City of Chicago, Inc., March
2001-November 2002; Retired executive 1999-2001; Vice Chairman and Director, Bank One Corporation, 1998-1999; Vice Chairman and Director, First Chicago NBD Corporation, and President, The First National Bank of Chicago, 1995-1998; Vice
Chairman, First Chicago Corporation and The First National Bank of Chicago, 1993-1998 (Director, 1992-1998; Executive Vice President, 1986-1993); Director,
ISO New England Inc. (not for profit independent system operator of New
England's electricity supply), Ariel Capital Management, Inc., Ark Investment Management and Wheels, Inc.</font></p>
</td>
</tr>

<tr height="1">
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td colspan="8" height="1" valign="top">
<p><b><i><font face="Times New Roman">Officers of the Fund (other than the Chairman, for whom see above)</font></i></b></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">Nathan I. Partain<br />
 55 East Monroe Street<br />
 Chicago, Illinois 60603<br />
 Age: 48</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">President and Chief Executive Officer since February 2001<br />
 (Chief Investment Officer since<br />
 January 1998, Executive Vice<br />
 President April 1998-February<br />
 2001, Senior Vice President<br />
 January 1997-April 1998,<br />
 Assistant Secretary January<br />
 1997-February 2001).</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p>President and Chief Executive Officer, the DTF and DUC Funds since February
2004; President, Duff &amp; Phelps Investment Management Co. since April 2005
(Executive Vice President January 1997-April 2005); Director of Utility
Research, PXP 1989-1996 (Director of Equity Research, 1993-1996 and Director of
Fixed Income Research, 1993); Director, Otter Tail Corporation</p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">T. Brooks Beittel<br />
 55 East Monroe Street<br />
 Chicago, Illinois 60603<br />
 Age: 55</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Secretary and Senior Vice President since January 1995 (Treasurer January 1995-September 2002).</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Senior Vice President, Duff &amp; Phelps Investment Management Co. since 1993 (Vice President 1987-1993)</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">Michael Schatt<br />
 55 East Monroe Street<br />
 Chicago, Illinois 60603<br />
 Age: 55</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Senior Vice President since<br />
 April 1998 (Vice President<br />
 January 1997-April 1998).</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Senior Vice President, Duff &amp; Phelps Investment Management Co. since January 1997; Managing Director,
PXP, 1994-1996</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">Joseph C. Curry, Jr.<br />
 Hilliard Lyons Center<br />
 Louisville, Kentucky 40202<br />
 Age: 60</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Treasurer since September<br />
 2002; Vice President since<br />
 April 1988.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Senior Vice President, J.J.B. Hilliard, W.L. Lyons, Inc. since 1994 (Vice President 1982&ndash;1994); Vice President, Hilliard Lyons Trust Company; President, Hilliard-Lyons Government Fund, Inc.; Vice President and Assistant Treasurer, Senbanc Fund</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">Joyce B. Riegel<br />
 55 East Monroe Street<br />
 Chicago, Illinois 60603<br />
 Age: 50</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Chief Compliance Officer<br />
 since February 2004.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Chief Compliance Officer, Duff &amp; Phelps Utility and Corporate Bond Trust Inc. and DTF Tax Free Income Inc. since August 2004; Chief Compliance Officer, Duff &amp; Phelps Investment Management Co. since August 2002; Vice
President and Chief Compliance Officer, Stein Roe Investment Counsel LLC January 2001-August 2002; Vice President and Compliance Officer, Stein Roe &amp; Farnham Incorporated July 1996-December 2000</font></p>
</td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top"></td>
</tr>

<tr height="1">
<td height="1" valign="top">
<p><font face="Times New Roman">Dianna P. Wengler<br />
 Hilliard Lyons Center<br />
 Louisville, Kentucky 40202<br />
 Age: 44</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td height="1" valign="top">
<p><font face="Times New Roman">Assistant Vice President since<br />
 April 2004; Assistant Secretary<br />
 since April 1988.</font></p>
</td>
<td colspan="2" height="1" valign="top"></td>
<td colspan="2" height="1" valign="top">
<p><font face="Times New Roman">Vice President, J.J.B. Hilliard, W.L. Lyons,
Inc. since 1990; Vice President, Hilliard-Lyons Government Fund, Inc.</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman">________________________</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New Roman">(1)</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Mr. Hansen is deemed to be an "interested person" of the Fund (as defined in the 1940 Act) because of his positions with the Fund and with
PXP (parent company of the Adviser).</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(2)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Member of the executive committee of the board
of directors, which has authority, with certain exceptions, to exercise the
powers of the board of directors between board meetings. The executive committee
did not meet during 2004.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(3)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Member of the audit committee of the board of
directors, which makes recommendations regarding the selection of the Fund's
independent public accountants and meets with representatives of the accountants
to determine the scope of and review the results of each audit. The audit
committee met twice during 2004 and acted once by unanimous written consent.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(4)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Member of the nominating/corporate governance committee of the board of directors, which selects nominees for election as directors, recommends individuals to be appointed by the board as Fund officers and members of board
committees and makes recommendations regarding other Fund governance and board administration matters. The nominating/corporate governance committee met twice during 2004. The committee will consider nominees recommended by shareholders. Shareholders wishing to
recommend candidates to the committee should submit such recommendations to the Secretary of the Fund, 55 East Monroe Street, Suite 3600, Chicago, Illinois 60603. The Secretary of the Fund will forward the recommendations to the nominating/corporate governance
committee for consideration.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(5)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Member of the contracts committee of the board of directors, which makes recommendations regarding the Fund's contractual arrangements for investment management and administrative services, including the terms and conditions
of such contracts. The contracts committee met twice during 2004.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(6)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Director elected by holders of preferred stock.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">(7)</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">Although the Fund does not hold itself out as a member of a fund complex, applicable SEC rules define the fund complex to which the Fund belongs to include all registered investment companies that have an investment adviser
that is an "affiliated person" (as defined in the 1940 Act) of the Adviser. We
refer to this fund complex as the Phoenix fund complex.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="5" valign="top">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">2.</font></p>
</td>
<td valign="top">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Included in Item 18.1.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="4" valign="top">
<p><font face="Times New Roman">3.&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="3" valign="top">
<p><font face="Times New Roman">4.</font></p>
</td>
<td colspan="3" valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="3" valign="top">
<p><font face="Times New Roman">5.</font></p>
</td>
<td colspan="3" valign="top">
<p><font face="Times New Roman">Included in Item 18.1.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td colspan="2" valign="top">
<p><font face="Times New Roman">6.</font></p>
</td>
<td colspan="4" valign="top">
<p><font face="Times New Roman">Included in Item 18.1.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td colspan="6" valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">7.</font></p>
</td>
<td colspan="5" valign="top">
<p><font face="Times New Roman">The following table provides certain information relating to the equity securities beneficially owned, as of December&nbsp;31, 2004, by each director (i) in the Fund and (ii) on an aggregate basis, in any registered investment
companies overseen by the director within the same family of investment companies as the Fund.</font></p>
</td>
</tr>
</table>

<p><font face="Times New Roman"></font></p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="bottom">
&nbsp;</td>
<td valign="bottom">
&nbsp;</td>
<td valign="bottom">
&nbsp;</td>
<td valign="bottom">
&nbsp;</td>
<td valign="bottom">
&nbsp;</td>
</tr>

<tr>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">Name of<br />
 <u>Director</u></font></b></p>
</td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">Dollar Range of Equity<br />
 <u>Securities in the Fund</u></font></b></p>
</td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom">
<p align="center"><b><font face="Times New Roman">Aggregate Dollar Range of Equity<br />
 Securities in All Funds Overseen<br />
 or to be Overseen by Director or<br />
 Nominee in Family of Investment<br />
 <u>Companies</u></font></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><i><font face="Times New Roman">Interested Director</font></i></b></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Claire V. Hansen</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><b><i><font face="Times New Roman">Independent Directors</font></i></b></p>
</td>
<td valign="top"></td>
<td></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Stewart E. Conner</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">$50,001-$100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">$50,001-$100,000</font></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Connie K. Duckworth</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Robert J. Genetski</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Francis E. Jeffries</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Nancy Lampton</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Christian H. Poindexter</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Carl F. Pollard</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">over $100,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">David J. Vitale</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">$10,001-$50,000</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">$10,001-$50,000</font></p>
</td>
</tr>
</table>
</div>

<p><font face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0">

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">As of December 31, 2004, none of the foregoing directors, or their immediate family members, owned any securities of the Adviser or any person (other than a registered investment company) directly or indirectly controlling,
controlled by or under common control with the Adviser.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">9.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">10.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">11.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">12.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">13.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman"><u>Approval of Advisory Agreement</u>. Each year, the board of directors of the Fund, including a majority of the directors who are not interested persons of the Fund or the Adviser voting separately as a class, is required to
approve the renewal of the Advisory Agreement. The contracts committee of the board of directors, which is comprised solely of independent directors, requests and evaluates, and the Adviser furnishes, such information as the committee determines to be reasonably
necessary to evaluate the terms of the Advisory Agreement. The contracts committee also retains an independent consultant on an annual basis to provide detailed comparative data regarding the Adviser's fees and expense ratios and the Fund's investment performance.
The contracts committee then presents a recommendation to the board of directors regarding renewal of the Advisory Agreement.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">In arriving at their decision to renew the current Advisory Agreement, the directors reviewed the foregoing information and took into account all factors that they deemed relevant to the best interests of the shareholders of
the Fund. Such factors included the following: (i) the nature, quality and extent of the services furnished to the Fund by the Adviser; (ii) fees paid by other mutual funds for similar services; (iii) the profitability to the Adviser of its relationship with the
Fund; (iv) the continuation of appropriate incentives to assure that the Adviser will be able to continue to furnish high-quality services to the Fund; (v) the capabilities of the team of investment professionals employed by the Adviser who perform services for the
Fund; (vi) the necessity of the Adviser maintaining and enhancing its ability to attract and retain capable personnel to serve the Fund; (vii) the investment performance over time of the Fund compared to various market indices and other mutual funds; (viii) the
extent to which the Fund's stock trades at a premium or a discount to net asset value; (ix) the benefits of any economies of scale that may be available to the Adviser; and (x) the direct and indirect benefits the Adviser receives from its relationship with the Fund,
including brokerage and soft dollar arrangements (see description in Item 22.3 below).</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">In comparing the Fund's expenses and investment performance to those of other mutual funds, the directors took note of the fact that until recently there have been no closed-end income-oriented funds with a utilities and REIT
investment focus, an equity and fixed-income asset mix and an asset level and leverage policy comparable to the Fund. While expressly declining to use investment performance as the sole, or even the primary, measure of the quality of the Adviser's services, the
directors noted that the Fund's investment performance during 2004 had enabled the Fund to pay all of its regular monthly dividends in 2004. The directors also viewed the fact that the Fund's stock traded at an average premium of
36.31% to net asset value during 2004
as evidence that investors take a favorable view of the extent to which the Fund has been meeting its primary objective of providing current income for shareholders. With respect to investment personnel, the directors considered the fact that the specific individuals
who manage the Fund's portfolio bring a significant depth of experience to their jobs, have worked together for many years and are well respected in the industry. With respect to expenses, the directors noted that the management fees paid by the Fund were at or below
the median levels paid by other leveraged closed-end domestic equity funds. It should be emphasized that, in arriving at their decision, the directors did not single out any one factor or group of factors as being more important than other factors. Rather, the
directors considered all factors together in light of the totality of circumstances presently facing the Fund, recognizing that different circumstances might lead them to weigh the various factors differently when considering the best interests of the Fund and its
shareholders.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Based on the foregoing considerations, the board of directors of the Fund, including a majority of the directors who are not interested persons of the Fund or the Adviser voting separately as a class, determined that the fees
payable to the Adviser under the Advisory Agreement were fair and reasonable to the Fund and that the renewal of the Advisory Agreement for a one-year period ending on April 30, 2006 was in the best interests of the Fund and its shareholders.</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">14.</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">The following table shows the compensation paid by the Fund to the Fund's current directors during 2004:</font></p>
</td>
</tr>
</table>

<p align="center"><b><font face="Times New Roman">COMPENSATION TABLE</font></b> (1)(2)</p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="bottom">
<p><b><u><font face="Times New Roman">Name of Director</font></u></b></p>
</td>
<td valign="bottom"></td>
<td valign="top">
<p align="center"><b><font face="Times New Roman">Aggregate<br />
 Compensation<br />
 from the<br />
 <u>Fund</u></font></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><b><i><font face="Times New Roman">Interested Director</font></i></b></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Claire V. Hansen&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;...</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><b><i><font face="Times New Roman">Independent Directors</font></i></b></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Stewart E. Conner&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;..</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="left"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,250&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Connie K. Duckworth&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">45,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Robert J. Genetski&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">42,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Francis E. Jeffries (2)&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">42,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Nancy Lampton&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">47,227</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Christian H. Poindexter&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">42,000</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Carl F. Pollard&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;...</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">44,227</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">David J. Vitale&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;&hellip;...</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">46,977</font></p>
</td>
</tr>
</table>
</div>

<p><font face="Times New Roman">_______________________</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="697" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td colspan="3" valign="top" width="56" height="171">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">(1)</font></p>
</td>
<td colspan="4" valign="top" width="641" height="171">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Each director not affiliated with the Adviser receives an annual fee of $25,000 (and an additional $5,000 if the director serves as chairman of a committee of the board of directors) plus an attendance fee of $2,000 for each
meeting of the board of directors and $1,500 for each meeting of a committee of the board of directors attended in person or by telephone. Directors and officers affiliated with the Adviser or the Administrator receive no compensation from the Fund for their services
as such. In addition to the amounts shown in the table above, all directors and officers who are not affiliated with the Adviser or the Administrator are reimbursed for the expenses incurred by them in connection with their attendance at a meeting of the board of
directors or a committee of the board of directors. The Fund does not have a pension or retirement plan applicable to directors or officers of the Fund.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">(2)</font></p>
</td>
<td colspan="4" valign="top" width="641">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">During 2004, Mr. Jeffries received aggregate compensation of $155,750 for service as a director of the Fund and as a director or trustee of 28 other investment companies in the
Phoenix fund complex. No other director
received compensation for service as a director of any other investment company in the
Phoenix fund complex.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
<td colspan="4" valign="top" width="641">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">15.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><u><font face="Times New Roman">Codes of Ethics</font></u>. Each of the Fund and the Adviser has adopted an Amended and Restated Code of Ethics (collectively, the "Codes") under Rule 17j-1 of the 1940 Act. The Codes impose significant restrictions on the
ability of personnel subject to the Codes to engage in personal securities transactions. Among other things, the Codes generally prohibit covered personnel from knowingly buying or selling securities (except for mutual funds, U.S. government securities and money
market instruments) that are being purchased, sold or considered for purchase or sale by the Fund unless the proposed purchases are approved in advance by the Adviser's compliance officer. The Codes also contain certain reporting requirements and compliance
procedures. The Codes can be reviewed and copied at the Public Reference Room of the SEC in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-202-942-8090. The Codes are also available at the EDGAR
Database on the SEC's Internet site at http://www.sec.gov. Copies of the Codes may also be obtained, after paying a duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by writing the SEC's Public Reference Section,
Washington, D.C. 20549-0102. The SEC file number for documents filed by the Fund under the 1940 Act is 811-4915.</p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">16.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><u><font face="Times New Roman">Proxy Voting Policies and Procedures</font></u>. The Fund has adopted proxy voting policies and procedures. The following is a summary description of those policies and procedures, the full text of which is available on the
Fund's website at http://www.dnpselectincome.com.</p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Subject to the right of the board of directors to give the Adviser written instructions as to the voting or non-voting of proxies on any matter presenting an actual or perceived conflict of interest as described below, the
Fund has delegated the voting of proxies with respect to securities owned by it to the Adviser. The Adviser may delegate its proxy voting responsibilities to a proxy committee established from time to time by the Adviser and may engage one or more qualified,
independent organizations to vote proxies on behalf of the Fund, subject in each case to compliance with these policies and procedures.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">It is the intention of the Fund to exercise stock ownership rights in portfolio holdings in a manner that is reasonably anticipated to further the best economic interests of shareholders of the Fund. Accordingly, the Fund or
its delegate(s) endeavors to analyze and vote all proxies that are considered likely to have financial implications, and, where appropriate, to participate in corporate governance, shareholder proposals, management communications and legal proceedings.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">The Adviser will generally vote in favor of management recommendations on routine matters. The Adviser will analyze and vote on non-routine matters, including the adoption of anti-takeover measures, proxy contests for control,
contested elections of directors, corporate governance matters and executive compensation matters, on a case-by-case basis, taking into account factors appropriate to each such matter. The Adviser will generally vote against shareholder proposals on social issues,
except where the Adviser determines that a different position would be in the clear economic interests of the Fund and its shareholders. The Adviser may abstain from voting when it concludes that the effect on shareholders' economic interests or the value of the
portfolio holding is indeterminable or insignificant.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">In exercising its voting discretion, the Adviser
will seek to avoid any actual or perceived conflicts of interest between the
interests of Fund shareholders, on the one hand, and those of the Adviser or any
affiliated person of the Fund or the Adviser, on the other hand. The Adviser
will notify the board of directors of the Fund promptly after becoming aware
that any actual or potential conflict of interest exists, indicating how the
Adviser proposes to vote on the matter and its reasons for doing so. The board
of directors may decide to (i) vote pursuant to the recommendation of the
delegate, (ii) abstain from voting or (iii) rely on the recommendations of an
established, independent third party with qualifications to vote proxies, such
as Institutional Shareholder Services. The Adviser may not waive any conflict of
interest or vote any conflicted proxies without the prior written approval of
the board of directors or its duly authorized representative.</font></p>
</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
&nbsp;</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
<p style="margin-top: 0; margin-bottom: 0"><u>Item 19</u>. <u>Control Persons and Principal Holders of Securities</u></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
</td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">1.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">The Fund does not consider that any person "controls" the Fund within the meaning of this item. For information concerning the Fund's officers and directors, see Item 18.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">2.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">No person is known by the Fund to own of record or beneficially five percent or more of any class of the Fund's outstanding equity securities.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">3.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">As of December 31, 2004, the officers and
directors of the Fund owned in the aggregate 251,365 shares of Common Stock, representing less than 1% of the Fund's outstanding Common Stock.</font></p>
</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
&nbsp;</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
<p style="margin-top: 0; margin-bottom: 0"><u><font face="Times New Roman">Item 20</font></u>. <u>Investment Advisory and Other Services</u></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">1.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">The Adviser is a wholly-owned subsidiary of PXP, which is an indirect, wholly-owned subsidiary of
PNX.&nbsp; PXP and its subsidiaries provide investment
management services to institutional and private clients and to the life insurance subsidiaries of
PNX.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="56">
&nbsp;</td>
<td colspan="5" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="5" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">See Item 18 for the names and capacities of affiliated persons of the Fund who are also affiliated persons of the Adviser.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">For a discussion of the method of calculating the advisory fee under the Advisory Agreement, see Item 9.1(b). The investment advisory fees paid by the Fund totaled $13,869,531
in 2004, $13,069,523 in 2003 and $13,776,089 in 2002.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td colspan="3" valign="top" width="47">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">2.</font></p>
</td>
<td valign="top" width="594">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">See Item 9.1(b) for a discussion of the Service Agreement.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="47">
&nbsp;</td>
<td valign="top" width="594">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p></td>
<td colspan="3" valign="top" width="47">
<p>3.</p>
</td>
<td valign="top" width="594">
<p>No fees, expenses or costs of the Fund were paid by persons other than the Adviser or the Fund.</p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td valign="top" width="24">
&nbsp;</td>
<td colspan="3" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">4.</font></p>
</td>
<td colspan="3" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">See Item 9.1(d) for a discussion of the Administration Agreement. The administrative fees paid by the Fund totaled $3,523,906
in 2004, $3,363,980 in 2003 and $3,505,218 in 2002.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td valign="top" width="24">
&nbsp;</td>
<td colspan="3" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">5.</font></p>
</td>
<td colspan="3" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td valign="top" width="24">
&nbsp;</td>
<td colspan="3" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">6.</font></p>
</td>
<td colspan="3" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">See Item 9.1(e) for information about the Fund's custodian.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td valign="top" width="24">
&nbsp;</td>
<td colspan="3" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">7.</font></p>
</td>
<td colspan="3" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">The Fund's independent public accountant is Ernst &amp; Young LLP, 233 South Wacker Drive, 16th Floor, Chicago, Illinois 60606. Ernst &amp; Young LLP performs the audit of the Fund's annual financial statements and provides
other audit-related and tax services to the Fund as pre-approved by the Fund's audit committee.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td valign="top" width="24">
&nbsp;</td>
<td colspan="3" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0"></td>
<td valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">8.</font></p>
</td>
<td colspan="3" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0"><font face="Times New Roman">Not applicable.</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
&nbsp;</td>
<td colspan="4" valign="top" width="641">&nbsp;</td>
</tr>

<tr>
<td colspan="3" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0">
<u><font face="Times New Roman">Item 21</font></u>.</td>
<td colspan="4" valign="top" width="641">
<p style="margin-top: 0; margin-bottom: 0"><u>Portfolio Managers</u></td>
</tr>

<tr>
<td colspan="2" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="24">
&nbsp;</td>
<td colspan="2" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="2" valign="top" width="56">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;</td>
<td colspan="3" valign="top" width="24">
<p style="margin-top: 0; margin-bottom: 0">1.
</td>
<td colspan="2" valign="top" width="617">
<p style="margin-top: 0; margin-bottom: 0">
<u>Other Accounts Managed</u></td>
</tr>

<tr>
<td colspan="2" valign="top" width="56">
&nbsp;</td>
<td colspan="3" valign="top" width="24">
&nbsp;</td>
<td colspan="2" valign="top" width="617">
&nbsp;</td>
</tr>

<tr>
<td colspan="7" valign="top">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There may be certain inherent conflicts of interest that arise in connection
with the portfolio managers' management of the Fund's investments and the
investments of any other accounts they manage. Such conflicts could include
aggregation of orders for all accounts managed by a particular portfolio
manager, the allocation of purchases across all such accounts, the allocation of IPOs and any soft dollar arrangements that the Adviser may have in place that
could benefit the Fund and/or such other accounts. The Adviser has adopted
policies and procedures designed to address any such conflicts of interest to
ensure that all management time, resources and investment opportunities are
allocated equitably. There have been no material compliance issues with respect
to any of these policies and procedures during the Fund's most recent fiscal
year.</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
<p style="margin-top: 0; margin-bottom: 0">
</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
&nbsp;</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
<p style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table provides information as of March 31, 2005 regarding the
other accounts besides the Fund that are managed by the portfolio managers of
the Fund identified in Item 9.1.c of the Fund's prospectus. As noted in the
table, portfolio managers of the Fund may also manage or be members of
management teams for other mutual funds within the Phoenix fund complex or other
similar accounts. As of March 31, 2005, the Fund's portfolio managers did not
manage any accounts with respect to which the advisory fee is based on the
performance of the account, nor do they manage any hedge funds.</td>
</tr>

<tr>
<td colspan="7" valign="top" width="697">
&nbsp;</td>
</tr>

</table>

<table border="1" cellpadding="0" cellspacing="5" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="100%" id="AutoNumber2" height="190">
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" valign="bottom" align="center" height="36">&nbsp;</td>
    <td width="24%" colspan="2" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" align="center" valign="bottom" height="36">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b>
    <font size="2">Registered Investment Companies (1)</font></b></td>
    <td width="24%" colspan="2" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" align="center" valign="bottom" height="36">
    <b><font size="2">Other Pooled Investment Vehicles (2)</font></b></td>
    <td width="25%" colspan="2" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" align="center" valign="bottom" height="36">
    <b><font size="2">Other Accounts (3)</font></b></td>
  </tr>
  <tr>
    <td width="27%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Name of
    <br>
    Portfolio Manager</font></b></td>
    <td width="11%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Number of<br>
    Accounts</font></b></td>
    <td width="13%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Total Assets (in millions)</font></b></td>
    <td width="11%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Number of<br>
    Accounts</font></b></td>
    <td width="13%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Total Assets (in millions)</font></b></td>
    <td width="12%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Number of<br>
    Accounts</font></b></td>
    <td width="13%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: solid; border-bottom-width: 1" height="35">
    <p class="NEWL05Hg12af" align="center" style="margin-top:0in;margin-bottom:6.0pt;text-align:center;text-indent:0in">
    <b><font size="2">Total Assets (in millions)</font></b></td>
  </tr>
  <tr>
    <td width="27%" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-bottom-style: none; border-bottom-width: medium" height="14">
    <font size="2">Nathan I. Partain. . . . . . . . . . . . . .&nbsp; .</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">1</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">&nbsp;&nbsp;&nbsp; $6.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in; border-top-color:inherit" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="14">
    <font size="2">T. Brooks Beittel. . . . . . . . . . . . . . . </font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">2</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">$500.2</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="14">
    <font size="2">Michael Schatt. . . . . . . . . . . . . . . . .</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">2</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">$770.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">1</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">$34.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">10</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">$156.0</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="14">
    <font size="2">Deborah A. Jansen. . . . . . . . . . . . . </font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">1</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">&nbsp;&nbsp;&nbsp; $6.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="14">
    <font size="2">Randle L. Smith. . . . . . . . . . . . . . . .</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">1</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">&nbsp;&nbsp;&nbsp; $6.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="14">
    <font size="2">Connie M. Luecke. . . . . . . . . . . . . .</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">1</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">&nbsp;&nbsp;&nbsp; $6.3</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">0</font></td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="14">
    <p class="NEWL05Hg12af" align="center" style="margin-bottom:.0001pt;
  text-align:center;text-indent:0in; margin-top:0in">
    <font size="2">-</font></td>
  </tr>
  <tr>
    <td width="27%" style="border-style: none; border-width: medium" height="17">
    </td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="17">
    </td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" align="center" height="17">
    </td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="17">
    </td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="17">
    </td>
    <td valign="top" style="width: 50.25pt; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="17">
    </td>
    <td valign="top" style="width: .85in; border-left: medium none; border-right: medium none windowtext; border-top: medium none; border-bottom: medium none windowtext; padding-left: 5.4pt; padding-right: 5.4pt; padding-top: 0in; padding-bottom: 0in" height="17">
    </td>
  </tr>
</table>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="697" id="AutoNumber1">
  <tr>
    <td style="border-style: none; border-width: medium" valign="top" width="5">&nbsp;</td>
    <td style="border-style: none; border-width: medium" valign="top" width="37">
    (1)</td>
    <td width="655" style="border-style: none; border-width: medium" valign="top" colspan="4">
    Registered Investment Companies include all open and closed-end mutual
    funds. For Registered Investment Companies, assets represent net assets of
    all open-end investment companies and gross assets of all closed-end
    investment companies.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" valign="top" width="5">&nbsp;</td>
    <td style="border-style: none; border-width: medium" valign="top" width="37">
    (2)</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">Other
    Pooled Investment Vehicles include, but are not limited to, securities of
    issuers exempt from registration under Section 3(c) of the 1940 Act, such as
    private placements and hedge funds.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" valign="top" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" valign="top" width="5">&nbsp;</td>
    <td style="border-style: none; border-width: medium" valign="top" width="37">
    (3)</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">Other
    Accounts include, but are not limited to, individual managed accounts,
    separate accounts, institutional accounts, pension funds and collateralized
    bond obligations, collateralized debt obligations.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="1"></td>
    <td style="border-style: none; border-width: medium" width="49">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4"><u>
    Compensation </u></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">The following is a description of the
    compensation structure, as of March 31, 2005, of the Fund's portfolio
    managers identified in Item 9.1.c of the Fund's prospectus. The Fund's
    portfolio managers receive a competitive base salary, an incentive bonus
    opportunity and a benefits package. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50"><u>Base Salary</u>. Each portfolio manager is
    paid a fixed base salary, which is determined by PXP and is designed to be
    competitive in light of the individual's experience and responsibilities.
    PXP management uses compensation survey results of investment industry
    compensation conducted by an independent third party in evaluating
    competitive market compensation for its investment management professionals.
    </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50"><u>Incentive Bonus</u>. The incentive bonus
    package for portfolio managers is based upon how well the individual manager
    meets or exceeds assigned goals and a subjective assessment of contribution
    to the team effort. Their incentive bonus also reflects a performance
    component for achieving and/or exceeding performance competitive with peers
    managing similar strategies. The performance component is further adjusted
    to reward investment personnel for managing within the stated framework and
    for not taking unnecessary risks. This ensures that investment personnel
    will remain focused on managing and acquiring securities that correspond to
    the Fund's mandate and risk profile. It also avoids the temptation for
    portfolio managers to take on more risk and unnecessary exposure to chase
    performance for personal gain. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">Incentive bonus compensation of the Fund's
    portfolio managers is currently comprised of two components: 75% of the
    incentive bonus is based on the pre-tax performance of the Fund, as measured
    by earnings per share and total return over a one-year period, and 25% of
    the incentive bonus is based in the overall pre-tax profitability and
    investment return of PNX, the Adviser's parent company, over a one-year
    period. For the year 2005, the Fund's portfolio managers have been
    guaranteed that they will receive no less than 80% of the incentive bonus
    available under the above formula. The portfolio managers' incentive bonus
    compensation is not based on the value of assets held in the Fund's
    portfolio, except to the extent that the level of assets in the Fund's
    portfolio affects the advisory fee received by the Adviser ,and thus
    indirectly the profitability of PNX. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">Finally, portfolio managers may also receive PNX
    stock options and/or be granted PNX restricted stock at the direction of the
    PNX board of directors. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50"><u>Long-Term Incentive Plan</u>. Highly
    compensated individuals are eligible to participate in a long-term incentive
    plan to defer their compensation and realize tax benefits. Compensation
    under the long-term incentive plan is payable in restricted stock units of
    PNX, which vest over three years. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    &nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50"><u>Other Benefits</u>. Portfolio managers are
    also eligible to participate in broad-based plans offered generally to the
    firm's employees, including broad-based retirement, 401(k), health and other
    employee benefit plans. </td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    &nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" width="1"></td>
    <td style="border-style: none; border-width: medium" width="49">3.</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p><u>
    Ownership of Securities </u></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    &nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">
    <p style="text-indent: 50">The following table sets forth the dollar range
    of equity securities in the Fund beneficially owned, as of March 31, 2005,
    by each of the portfolio managers identified in Item 9.1.c of the Fund's
    prospectus.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p align="center" style="margin-left: 50"><b>Name of<br>
    <u>Portfolio Manager</u></b></td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium">
    <p align="center"><b>Dollar Range of<br>
    <u>Equity Securities in the Fund</u></b></td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    &nbsp;</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    &nbsp;</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">T. Brooks Beittel</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    None</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">Deborah A. Jansen</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    None</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">Connie M. Luecke</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    $1-$10,000</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">Nathan I. Partain</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    $100,000 - $500,000</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">Michael Schatt</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    $10,001 - $50,000</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="268" style="border-style: none; border-width: medium">
    <p style="margin-left: 50">Randle L. Smith</td>
    <td width="23" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="220" style="border-style: none; border-width: medium" align="center">
    None</td>
    <td width="144" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="2" width="42">&nbsp;</td>
    <td width="655" style="border-style: none; border-width: medium" colspan="4">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <u>Item 22</u>. <u>Brokerage Allocation and Other Practices</u></td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 52">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The Adviser has discretion to select brokers and dealers to execute
    portfolio transactions initiated by the Adviser. The Fund paid brokerage
    commissions in the aggregate amount of $1,667,497, $8,550,524 and $8,486,229  during
    2004, 2003 and 2002, respectively, not including the gross
    underwriting spread on securities purchased in underwritten public
    offerings.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 52">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 52">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The Fund did not pay any brokerage commissions during 2004, 2003 or 2002  to
    any broker that (1) is an affiliated person of the Fund, (2) is an
    affiliated person of an affiliated person of the Fund or (3) has an
    affiliated person that is an affiliated person of the Fund or the Adviser.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 52">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 52">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    In selecting brokers or dealers to execute portfolio transactions and in
    evaluating the best net price and execution available, the Adviser is
    authorized to consider &quot;brokerage and research services&quot; (as those terms are
    defined in Section 28(e) of the Securities Exchange Act of 1934),
    statistical quotations, specifically the quotations necessary to determine
    the Fund's net asset value, and other information provided to the Fund
    and/or to the Adviser (or their affiliates). The Adviser is also authorized
    to cause the Fund to pay to a broker or dealer who provides such brokerage
    and research services a commission for executing a portfolio transaction
    which is in excess of the amount of commission another broker or dealer
    would have charged for effecting that transaction. The Adviser must
    determine in good faith, however, that such commission was reasonable in
    relation to the value of the brokerage and research services provided,
    viewed in terms of that particular transaction or in terms of all the
    accounts over which the Adviser exercises investment discretion. It is
    possible that certain of the services received by the Adviser attributable
    to a particular transaction will benefit one or more other accounts for
    which investment discretion is exercised by the Adviser.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 50">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 50">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Neither the Fund nor the Adviser, during the last fiscal year, pursuant to
    an agreement or understanding with a broker or otherwise through an internal
    allocation procedure, directed the Fund's brokerage transactions to a broker
    or brokers because of research services.</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">&nbsp;</td>
  </tr>
  <tr>
    <td style="border-style: none; border-width: medium" colspan="6" width="697">
    <p style="margin-left: 50">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    The Fund has not acquired during its most recent fiscal year securities of
    its regular brokers or dealers as defined in Rule 10b-1 under the 1940 Act,
    or their parents.</td>
  </tr>
</table>

<p><u><font face="Times New Roman">Item 23</font></u>. <u>Tax Status</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund intends to continue to qualify as a regulated investment company under the Internal Revenue Code of 1986, as it has in each
year since the inception of its operations, so as to be relieved of Federal income tax on net investment income and net capital gains distributed to shareholders.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends paid by the Fund from its ordinary income and distributions of the Fund's net realized short-term capital gains are taxable
to shareholders as ordinary income. Under legislation enacted in 2003, ordinary income dividends shareholders receive may be taxed at the same rates as long-term capital gains. However, even if income received in the form of ordinary income dividends is taxed at the
same rates as long-term capital gains, such income will not be considered long-term capital gains for other Federal income tax purposes. For example, a shareholder generally will not be permitted to offset ordinary income dividends with capital losses. Short-term
capital gain distributions will continue to be taxed at ordinary income rates. So long as the Fund has capital loss carry forwards, distributions derived from capital gains in the Fund's portfolio may constitute ordinary income, rather than capital gains, to
shareholders.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends from ordinary income may be eligible for the dividends-received deduction available to corporate shareholders. Under its
charter, the Fund is required to designate dividends paid on its preferred stock as qualifying for the dividends-received deduction to the extent such dividends do not exceed the Fund's qualifying income. In the event the Fund is required to allocate all of its
qualifying income to dividends on the preferred stock, dividends payable on the common stock will not be eligible for the dividends-received deduction. Any distributions attributable to the Fund's net realized long-term capital gains are taxable to shareholders as
long-term capital gains, regardless of the holding period of shares of the Fund. Under current law, the maximum tax rate on long-term capital gains available to non-corporate shareholders generally is 15%. Without future congressional action, the maximum tax rate on
long-term capital gains would return to 20% in 2009, and the maximum tax rate on dividends would move to 35% in 2009 and 39.6% in 2011.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund intends to distribute substantially all its net investment income and net realized capital gains in the year earned or
realized. A dividend reinvestment plan is available to all holders of common stock of the Fund. Under the dividend reinvestment plan, all cash distributions to participating shareholders are reinvested in additional shares of common stock. See Item
10.1(c).</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2004, the Fund had tax capital loss carry forwards of $288,053,758, of which $924,278 will expire in 2007,
$76,055,964 will expire in 2010 and $211,073,516 will expire in 2011.</font></p>

<p><u><font face="Times New Roman">Item 24</font></u>. <u>Financial Statements</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The financial statements listed below are incorporated herein by reference from the Fund's Annual Report to Shareholders for the year
ended December 31, 2004 as filed on Form N-CSR with the Securities and Exchange Commission on March
2, 2005 (no. 811-4915). All other portions of the Annual Report to Shareholders are not incorporated herein by reference and are not part of the Registration
Statement. A copy of the Annual Report to Shareholders may be obtained without charge by writing to the Fund at its address at 55 East Monroe Street, Chicago, Illinois 60603 or by calling the Administrator toll-free at 888-878-7845.</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Report of independent public
accountants</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Schedule of Investments at December 31, 2004</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Balance Sheet at December 31, 2004</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Statement of Operations for the year ended December 31, 2004</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Statement of Changes in Net Assets for the years
ended December 31, 2004 and 2003</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Statement of Cash Flows for the year ended December 31, 2004</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes to Financial Statements</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Highlights - Selected Per Share Data
and Ratios</font></p>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman">PART C:&nbsp; OTHER INFORMATION</font></p>

<p><u><font face="Times New Roman">Item 25</font></u>. <u>Financial Statements and Exhibits</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>In Part B:</b></font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Report of independent public accountants</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Schedule of Investments at December 31, 2004</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Balance Sheet at December 31, 2004</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Statement of Operations for the year ended December 31, 2004</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Statement of Changes in Net Assets for the years ended December 31, 2004 and
2003</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Statement of Cash Flows for the year ended December 31, 2004</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notes to Financial Statements</font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Financial Highlights - Selected Per Share Data and Ratios</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>In Part C:</b></font></p>

<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
None</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.1</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">Articles of Incorporation (Incorporated by
reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.3</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Second Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.4</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of Articles Supplementary creating
Remarketed Preferred Stock, Series A, B, C, D and E (Incorporated by reference
from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.5</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of Articles Supplementary creating
Remarketed Preferred Stock, Series I (Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.6</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Third Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.7</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Fourth Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.8</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Fifth Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.9</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Sixth Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;a.10</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Seventh Amendment to Articles of Incorporation
(Incorporated by reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;b.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Bylaws (as amended through November 15, 2004)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;c.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">None</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Specimen common stock certificate (Incorporated by reference from Registrant's registration statement on Form N-2, no. 33-10421)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series A (Incorporated by reference from pre-effective amendment no. 2 to Registrant's registration statement on Form N-2, no. 33-22933)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.3</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series B (Incorporated by reference from pre-effective amendment no. 1 to Registrant's registration statement on Form N-2, no. 33-24101)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.4</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series C (Incorporated by reference from pre-effective amendment no. 1 to Registrant's registration statement on Form N-2, no. 33-24100)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.5</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series D (Incorporated by reference from pre-effective amendment no. 1 to Registrant's registration statement on Form N-2, no. 33-24102)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.6</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series E (Incorporated by reference from pre-effective amendment no. 1 to Registrant's registration statement on Form N-2, no. 33-24099)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;d.7</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of certificate of Remarketed Preferred Stock, Series I (Incorporated by reference from pre-effective amendment no. 2 to Registrant's registration statement on Form N-2, no. 33-22933)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;e.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Document setting forth the terms of Registrant's dividend reinvestment plan
(Incorporated by reference from post-effective amendment no. 46 to Registrant's
registration statement under the Investment Company Act of 1940 on Form N-2, no.
811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;f.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">None</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;g.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Investment Advisory Agreement (Incorporated by reference from post-effective amendment no. 39 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;g.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Service Agreement (Incorporated by reference from post-effective amendment no. 39 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;g.3</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Administration Agreement (Incorporated by reference from post-effective amendment no. 39 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;h.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;i.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;j.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Custody Agreement (Incorporated by reference from post-effective amendment no. 45 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;j.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Foreign Custody Manager Agreement (Incorporated by reference from post-effective amendment no. 45 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Fund Accounting Agreement (Incorporated by reference from post-effective amendment no. 45 to Registrant's registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of Remarketing Agreement (Incorporated by reference from exhibit k.3 to pre-effective amendment no. 3 to Registrant's registration statement on Form N-2, no. 33-22933)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.3</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Form of Paying Agent Agreement (Incorporated by reference from exhibit k.4 to pre-effective amendment no. 3 to Registrant's registration statement on Form N-2, no. 33-22933)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.4</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Credit Agreement (Incorporated by reference from
post-effective amendment no. 46 to Registrant's registration statement under the
Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.5</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Depositary Agreement (Incorporated by reference
from post-effective amendment no. 46 to Registrant's registration statement
under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.6</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Letter Amendment to Depositary Agreement
(Incorporated by reference from post-effective amendment no. 46 to Registrant's
registration statement under the Investment Company Act of 1940 on Form N-2, no.
811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.7</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Second Letter Amendment to Depositary Agreement
(Incorporated by reference from post-effective amendment no. 46 to Registrant's
registration statement under the Investment Company Act of 1940 on Form N-2, no.
811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.8</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Placement Agency Agreement (Incorporated by
reference from post-effective amendment no. 46 to Registrant's registration
statement under the Investment Company Act of 1940 on Form N-2, no. 811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;k.9</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Letter Amendment to Placement Agency Agreement
(Incorporated by reference from post-effective amendment no. 46 to Registrant's
registration statement under the Investment Company Act of 1940 on Form N-2, no.
811-4915)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;l.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;m.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;n.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;o.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;p.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Subscription Agreement for initial capital (Incorporated by reference from Registrant's registration statement on Form N-2, no. 33-10421)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;q.</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Not applicable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;r.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Amended and Restated Code of Ethics of Registrant</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;r.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Amended and Restated Code of Ethics of Duff &amp; Phelps Investment Management Co. (investment adviser to Registrant)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>
</table>

<p><u><font face="Times New Roman">Item 26</font></u>. <u>Marketing Arrangements</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 27</font></u>. <u>Other Expenses of Issuance and Distribution</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 28</font></u>. <u>Persons Controlled by or Under Common Control</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund does not consider that it is controlled, directly or indirectly, by any person. The information in Item 20 is incorporated
herein by reference.</font></p>

<p><u><font face="Times New Roman">Item 29</font></u>. <u>Number of Holders of Securities</u></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="bottom">
<p align="center"><u><font face="Times New Roman">Title of Class</font></u></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font face="Times New Roman">Number of<br />
 Record Holders<br />
 <u>March 31, 2005</u></font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Common Stock, $.001 par value</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">24,408</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">Preferred Stock, $.001 par value</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p align="center"><font face="Times New Roman">1</font></p>
</td>
</tr>
</table>

</center>
  </div>

<p align="center"><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 30</font></u>. <u>Indemnification</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2-418 of the General Corporation Law of Maryland authorizes the indemnification of directors and officers of Maryland
corporations under specified circumstances.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Article Ninth of the Registrant's Articles of Incorporation (Exhibit a.1 to this registration statement) provides that the Registrant
shall indemnify its directors and officers under specified circumstances; the provision contains the exclusion required by section 17(h) of the Investment Company Act of 1940.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "1933 Act") may be permitted to directors,
officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933
Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person in connection with the securities being
registered), the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the
1933 Act and will be governed by the final adjudication of such issue.</font></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Registrant, its directors and officers, the Adviser and persons affiliated with them are insured under a policy of insurance
maintained by the Registrant and the Adviser, within the limits and subject to the limitations of the policy, against certain expenses in connection with the defense of actions, suits or proceedings and certain liabilities that might be imposed as a result of such
actions, suits or proceedings, to which they are parties by reason of being or having been such directors or officers. The policy expressly excludes coverage for any director or officer whose personal dishonesty, fraudulent breach of trust, lack of good faith, or
intention to deceive or defraud has been finally adjudicated or may be established or who willfully fails to act prudently.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 31</font></u>. <u>Business and Other Connections of Investment Adviser</u></p>

<p><u><font face="Times New Roman"></font></u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither Duff &amp; Phelps Investment Management Co., nor any of its directors or executive officers, has at any time during the past
two years been engaged in any other business, profession, vocation or employment of a substantial nature either for its or his own account or in the capacity of director, officer, employee, partner or trustee, except as indicated in this Registration
Statement.</font></p>

<p><font face="Times New Roman"></font></p>

<p><u><font face="Times New Roman">Item 32</font></u>. <u>Location of Accounts and Records</u></p>

<p><font face="Times New Roman"></font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All accounts, books and other documents required to be maintained by Section 31 (a) of the Investment Company Act of 1940 and the Rules
promulgated thereunder are maintained at the offices of the Fund (55 East Monroe Street, Chicago, Illinois 60603), the Adviser, the Administrator and the Fund's custodian and transfer agents. See Items 9.1(b), 9.1(d) and 9.1(e) for the addresses of the Adviser, the
Administrator and the Fund's custodian and transfer agents.</font></p>

<p><u><font face="Times New Roman">Item 33</font></u>. <u>Management Services</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><u><font face="Times New Roman">Item 34</font></u>. <u>Undertakings</u></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not applicable.</font></p>

<p><font face="Times New Roman"></font></p>
<p style="page-break-before:always">
<p align="center"><font face="Times New Roman">SIGNATURE</font></p>

<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Investment Company Act of 1940, the Registrant has duly caused this amendment to its registration
statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Chicago, and State of Illinois, on April 27, 2005.</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p><font face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">DNP SELECT INCOME FUND INC.</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman"><br />
<br />
 </font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">By: <u>&nbsp;/s/ Nathan I. Partain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nathan I. Partain</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Chief Executive Officer</font></p>
</td>
<td valign="top"></td>
</tr>
</table>
<p><font face="Times New Roman"></font></p>

<p align="center"><font face="Times New Roman"></font></p>

<p style="page-break-before:always">
<p align="center"><font face="Times New Roman">EXHIBIT INDEX</font></p>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="bottom">
<p><u><font face="Times New Roman">Exhibit&nbsp;No.</font></u></p>
</td>
<td valign="bottom">
<p align="center"><font face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom">
<p><u><font face="Times New Roman">Description</font></u></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">
<p><font face="Times New Roman">Sequential<br />
 <u>Page No.</u></font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New
Roman">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">b</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Bylaws (as amended through November 15, 2004)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">r.1</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Amended and Restated Code of Ethics of
Registrant</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><font face="Times New Roman">r.2</font></p>
</td>
<td valign="top"></td>
<td valign="top">
<p><font face="Times New Roman">Amended and Restated Code of Ethics of Duff &amp;
Phelps Investment Management Co. (investment adviser to Registrant)</font></p>
</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
&nbsp;</td>
<td valign="top">&nbsp;</td>
<td valign="top">&nbsp;</td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

</table>

<p><font face="Times New Roman"></font></p>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2B BYLAWS
<SEQUENCE>2
<FILENAME>exhibb_1.htm
<TEXT>
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<BODY>
<DIV style="WIDTH: 753px; HEIGHT: 20219px">
<P style="text-align: right"><b>Exhibit b</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
<P class=c773 align="center"><B class=c771>DNP</B> <B class=c772>SELECT INCOME FUND
INC.</B></P>
<P class=c775 align="center"> <b>BYLAWS<BR>(as amended effective on
November 15, 2004)</b></P>
<P class=c776 align="center"><b>ARTICLE I.</b></P>
<P class=c776 align="center"><b>STOCKHOLDERS</b></P>
<TABLE id=AutoNumber4
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-RIGHT-WIDTH: 0px"
cellSpacing=1 width="97%" border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.01. <I>Annual&nbsp;Meeting</I>.</B> The Fund shall hold an
      annual meeting of its stockholders to elect directors and transact any
      other business within its powers, either at 9:00 a.m. on the second
      Tuesday of May in each year if not a legal holiday, or at such other time
      on such other day in the month of May as shall be set by the Board of
      Directors. Except as the Charter, these Bylaws or statute provides
      otherwise, any business may be considered at an annual meeting without the
      purpose of the meeting having been specified in the notice. Failure to
      hold an annual meeting does not invalidate the Fund's existence or affect
      any otherwise valid corporate acts.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.02. <I>Special&nbsp;Meeting</I>.</B> At any time in the
      interval between annual meetings, a special meeting of the stockholders
      may be called by the Chairman or the President or by a majority of the
      Board of Directors by vote at a meeting or in writing (addressed to the
      Secretary of the Fund) with or without a meeting. Subject to the
      procedures set forth in Section 1.11 and this Section, special meetings of
      the stockholders shall be called by the Secretary at the request of
      stockholders only on the written request of stockholders entitled to cast
      at least 25 percent of all the votes entitled to be cast at the meeting. A
      request for a special meeting shall state the purpose of the meeting and
      the matters proposed to be acted on at it. The Secretary shall inform the
      stockholders who make the request of the reasonably estimated cost of
      preparing and mailing a notice of the meeting and, on payment of these
      costs to the Fund, notify each stockholder entitled to notice of the
      meeting. The Board of Directors shall have sole power to fix the date and
      time of the special meeting. Unless requested by stockholders entitled to
      cast a majority of all the votes entitled to be cast at the meeting, a
      special meeting need not be called to consider any matter which is
      substantially the same as a matter voted on at any special meeting of
      stockholders held during the preceding 12 months.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.03. <I>Place&nbsp;of&nbsp;Meetings</I>.</B> Meetings of
      stockholders shall be held at such place as is set from time to time by
      the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.04.
      <I>Notice&nbsp;of&nbsp;Meetings;&nbsp;Waiver&nbsp;of&nbsp;Notice</I>.</B>
      Not less than ten nor more than 90 days before each stockholders' meeting,
      the Secretary shall give notice in writing or by electronic transmission
      of the meeting to each stockholder entitled to vote at the meeting and
      each other stockholder entitled to notice of the meeting. Any notice given
      by the Fund to a stockholder is effective if given by a single notice, in
      writing or by electronic transmission, to all stockholders who share an
      address if the Fund gives notice, in writing or by electronic
      transmission, to the stockholder of its intent to give a single notice and
      the stockholder consents to receiving a single notice or fails to object
      in writing within 60 days after the Fund gives notice to the stockholder
      of its intent to give a single notice. A stockholder may revoke consent
      given, whether affirmative or implied, by written notice to the Fund. The
      notice shall state the time of the meeting, the place of the meeting and,
      if the meeting is a special meeting or notice of the purpose is required
      by statute, the purpose of the meeting. Notice is given to a stockholder
      when it is personally delivered to the stockholder, left at the
      stockholder's residence or usual place of business, mailed to the
      stockholder at the stockholder's address as it appears on the records of
      the Fund or transmitted to the stockholder by an electronic transmission
      to any address or number of the stockholder at which the stockholder
      receives electronic transmissions. If the Fund has received a request from
      a stockholder that notice not be sent by electronic transmission, the Fund
      may not provide notice to the stockholder by electronic transmission.
      Notice given by electronic transmission shall be considered ineffective if
      the Fund is unable to deliver two consecutive notices and the inability to
      deliver the notices becomes known to the Secretary, an Assistant
      Secretary, the transfer agent or other person responsible for giving the
      notice. The inadvertent failure to deliver any notice by electronic
      transmission does not invalidate any meeting or other action. An affidavit
      of the Secretary, an Assistant Secretary, the transfer agent or other
      agent of the Fund that notice has been given by a form of electronic
      transmission, in the absence of actual fraud, shall be prima facie
      evidence of the facts stated in the affidavit. Notwithstanding the
      foregoing provisions, each person who is entitled to notice waives notice
      if the person before or after the meeting delivers a written waiver or a
      waiver by electronic transmission which is filed with the records of
      stockholders' meetings, or is present at the meeting in person or by
      proxy.<BR>&nbsp;</P></TD>
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    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.05. <I>Quorum;&nbsp;Voting</I>.</B> Unless any statute or
      the Charter provides otherwise, at a meeting of stockholders the presence
      in person or by proxy of stockholders entitled to cast a majority of all
      the votes entitled to be cast at the meeting constitutes a quorum, except
      that where the holders of any class or series of shares are entitled to
      vote as a separate class or series (such class or series being referred to
      as a "Separate Class") or where the holders of two or more (but not all)
      classes or series of stock are required to vote as a single class or
      series (such classes or series being referred to as a "Combined Class"),
      the presence in person or by proxy of the holders of a majority of the
      shares of that Separate Class or Combined Class, as the case may be,
      issued and outstanding and entitled to vote thereat shall constitute a
      quorum for such vote. Unless any statute or the Charter provides
      otherwise, a majority of all the votes cast at a meeting at which a quorum
      is present is sufficient to approve any matter which properly comes before
      the meeting, except that a plurality of all the votes cast at a meeting at
      which a quorum is present is sufficient to elect a
    director.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.06. <I>Adjournments</I>.</B> Whether or not a quorum is
      present, a meeting of stockholders convened on the date for which it was
      called may be adjourned from time to time without further notice by the
      chairman of the meeting to a date not more than 120 days after the
      original record date. Whether or not a quorum with respect to a Separate
      Class or a Combined Class, as the case may be, is present, a meeting of
      stockholders of a Separate Class or a Combined Class convened on the date
      for which it was called may be adjourned from time to time without further
      notice by the chairman of the meeting to a date not more than 120 days
      after the original record date. Any business which might have been
      transacted at the meeting as originally notified may be deferred and
      transacted at any such adjourned meeting at which a quorum shall be
      present.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.07.
      <I>General&nbsp;Right&nbsp;to&nbsp;Vote;&nbsp;Proxies</I>.</B> Unless the
      Charter provides for a greater or lesser number of votes per share or
      limits or denies voting rights, each outstanding share of stock (or
      fraction thereof), regardless of class or series, is entitled to one vote
      (or fraction of a vote) on each matter submitted to a vote at a meeting of
      stockholders. In all elections for directors, each share of stock (or
      fraction thereof) may be voted for as many individuals as there are
      directors to be elected and for whose election the share is entitled to be
      voted. A stockholder may vote the stock (or fraction thereof) the
      stockholder owns of record either in person or by proxy. A stockholder may
      sign a writing authorizing another person to act as proxy. Signing may be
      accomplished by the stockholder or the stockholder's authorized agent
      signing the writing or causing the stockholder's signature to be affixed
      to the writing by any reasonable means, including facsimile signature. A
      stockholder may authorize another person to act as proxy by transmitting,
      or authorizing the transmission of, an authorization by a telegram,
      cablegram, datagram, electronic mail or any other electronic or telephonic
      means to the person authorized to act as proxy or to any other person
      authorized to receive the proxy authorization on behalf of the person
      authorized to act as the proxy, including a proxy solicitation firm or
      proxy support service organization. Unless a proxy provides otherwise, it
      is not valid more than 11 months after its date. A proxy is revocable by a
      stockholder at any time without condition or qualification unless the
      proxy states that it is irrevocable and the proxy is coupled with an
      interest. A proxy may be made irrevocable for so long as it is coupled
      with an interest. The interest with which a proxy may be coupled includes
      an interest in the stock to be voted under the proxy or another general
      interest in the Fund or its assets or liabilities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.08. <I>List&nbsp;of&nbsp;Stockholders</I>.</B> At each
      meeting of stockholders, a full, true and complete list of all
      stockholders entitled to vote at such meeting, showing the number, class
      and series of shares held by each stockholder and certified by the
      transfer agent for such class or series or by the Secretary, shall be
      furnished by the Secretary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;1.09. <I>Conduct&nbsp;of&nbsp;Business</I>.</B> Nominations
      of persons for election to the Board of Directors and the proposal of
      business to be considered by the stockholders may be made at an annual
      meeting of stockholders (a) pursuant to the Fund's notice of meeting, (b)
      by or at the direction of the Board of Directors or (c) by any stockholder
      of the Fund (i) who was a stockholder of record at the time of giving
      notice(s) provided for in Section 1.11 and Section 1.12, (ii) who is
      entitled to vote at the meeting and (iii) who complied with the notice(s)
      procedures set forth in Section 1.11 and Section 1.12. Nominations of
      persons for election to the Board of Directors and the proposal of
      business to be considered by the stockholders may be made at a special
      meeting of stockholders (a) only pursuant to the Fund's notice of meeting
      and (b), in the case of nominations of persons for election to the Board
      of Directors, (i) by or at the direction of the Board of Directors or (ii)
      by any stockholder of the Fund (A) who was a stockholder of record at the
      time of giving notice provided for in Section 1.11, (B) who is entitled to
      vote at the meeting and (C) who complied with the notice procedures set
      forth in Section 1.11. The chairman of the meeting shall have the power
      and duty to determine whether a nomination or any business proposed to be
      brought before the meeting was made in accordance with the procedures set
      forth in Section 1.11, Section 1.12 and this Section and, if any proposed
      nomination or business is not in compliance with Section 1.11, Section
      1.12 and this Section, to declare that such defective nomination or
      proposal be disregarded.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.10. <I>Conduct&nbsp;of&nbsp;Voting</I>.</B> At all
      meetings of stockholders, unless the voting is conducted by inspectors,
      the proxies and ballots shall be received, and all questions touching the
      qualification of voters and the validity of proxies, the acceptance or
      rejection of votes and procedures for the conduct of business not
      otherwise specified by these Bylaws, the Charter or law, shall be decided
      or determined by the chairman of the meeting. If demanded by the holders,
      present in person or by proxy, of at least 10 percent of the shares issued
      and outstanding and entitled to vote at the meeting, the vote upon any
      election or question shall be taken by ballot. Before any meeting of the
      stockholders, the Board of Directors may appoint persons to act as
      inspectors of election at the meeting and any adjournment thereof. If no
      inspectors of election are so appointed, the chairman of the meeting may,
      and on the request of the holders, present in person or by proxy, of at
      least 10 percent of the shares issued and outstanding and entitled to vote
      at the meeting, shall, appoint inspectors of election at the meeting. The
      number of inspectors shall be either one or three. If inspectors are
      appointed at a meeting on the request of stockholders, the holders of a
      majority of shares present in person or by proxy shall determine whether
      one or three inspectors are to be appointed. No candidate for election as
      a director at a meeting shall serve as an inspector thereat. If any person
      appointed as inspector fails to appear or fails or refuses to act, the
      chairman of the meeting may, and upon the request of any stockholder
      shall, appoint a person to fill that vacancy. The inspectors shall
      determine the number of shares outstanding and the voting power of each,
      the shares represented at the meeting, the existence of a quorum, and the
      authenticity, validity and effect of proxies; receive votes, ballots or
      consents; hear and determine all challenges and questions in any way
      arising in connection with the right to vote; count and tabulate all votes
      or consents; determine when polls shall close; determine the result; and
      do any other acts that may be proper to conduct the election or vote with
      fairness to all stockholders. Unless so demanded or ordered, no vote need
      be by ballot and voting need not be conducted by
    inspectors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.11. <I>Advance Notice Provisions for Election of
      Directors</I></B>. Only persons who are nominated in accordance with the
      following procedures shall be eligible for election as directors of the
      Fund. Nominations of persons for election to the Board of Directors may be
      made at any annual meeting of stockholders, or at any special meeting of
      stockholders called for the purpose of electing directors, (a) by or at
      the direction of the Board of Directors (or any duly authorized committee
      thereof) or (b) by any stockholder of the Fund (i) who is a stockholder of
      record on the date of the giving of the notice provided for in this
      Section and on the record date for the determination of stockholders
      entitled to vote at such meeting and (ii) who complies with the notice
      procedures set forth in this Section. A stockholder's notice must be
      delivered to or mailed and received by the Secretary at the principal
      executive offices of the Fund (a) in the case of an annual meeting, not
      less than 90 days nor more than 120 days prior to the first anniversary of
      the preceding year's annual meeting; provided, however, that in the event
      that the date of the annual meeting is advanced by more than 30 days or
      delayed by more than 60 days from the anniversary date of the preceding
      year's annual meeting or no annual meeting was held in the preceding year,
      notice by the stockholder must be so delivered not earlier than the 90th
      day prior to such annual meeting and not later than the close of business
      on the later of the 60th day prior to such annual meeting or the tenth day
      following the day on which public announcement of the date of such annual
      meeting is first made; and (b) in the case of a special meeting of
      stockholders called for the purpose of electing directors, not later than
      the close of business on the tenth day following the day on which notice
      of the date of the special meeting was mailed or public announcement of
      the date of the special meeting was made, whichever first occurs. A
      stockholder's notice to the Secretary must be in writing and set forth (a)
      as to each person whom the stockholder proposes to nominate for election
      as a director, all information relating to such person that is required to
      be disclosed in connection with solicitations of proxies for election of
      directors pursuant to Regulation 14A of the Securities Exchange Act of
      1934, as amended (the "Exchange Act"), and the rules and regulations
      promulgated thereunder; and (b) as to the stockholder giving the notice
      (i) the name and address of such stockholder as they appear on the Fund's
      books and of the beneficial owner, if any, on whose behalf the nomination
      is made, (ii) the class or series and number of shares of capital stock of
      the Fund which are owned beneficially or of record by such stockholder and
      such beneficial owner, (iii) a description of all arrangements or
      understandings between such stockholder and each proposed nominee and any
      other person or persons (including their names) pursuant to which the
      nomination(s) are to be made by such stockholder, (iv) a representation
      that such stockholder intends to appear in person or by proxy at the
      meeting to nominate the persons named in its notice and (v) any other
      information relating to such stockholder that would be required to be
      disclosed in a proxy statement or other filings required to be made in
      connection with solicitations of proxies for election of directors
      pursuant to Regulation 14A of the Exchange Act and the rules and
      regulations promulgated thereunder. Such notice must be accompanied by a
      written consent of each proposed nominee to be named as a nominee and to
      serve as a director if elected. No person shall be eligible for election
      as a director of the Fund unless nominated in accordance with the
      procedures set forth in this Section. If the chairman of the meeting
      determines that a nomination was not made in accordance with the foregoing
      procedures, the chairman of the meeting shall declare to the meeting that
      the nomination was defective and such defective nomination shall be
      disregarded. No adjournment or postponement of a meeting of stockholders
      shall commence a new period for the giving of notice of a stockholder
      proposal hereunder.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 1.12. <I>Advance Notice Provisions for Business to be
      Transacted at Annual Meeting</I>.</B> No business may be transacted at an
      annual meeting of stockholders, other than business that is either (a)
      specified in the notice of meeting (or any supplement thereto) given by or
      at the direction of the Board of Directors (or any duly authorized
      committee thereof), (b) otherwise properly brought before the annual
      meeting by or at the direction of the Board of Directors (or any duly
      authorized committee thereof) or (c) otherwise properly brought before the
      annual meeting by any stockholder of the Fund (i) who is stockholder of
      record on the date of the giving of the notice provided for in this
      Section and on the record date for the determination of stockholders
      entitled to vote at such annual meeting and (ii) who complies with the
      notice procedures set forth in this Section. A stockholder's notice must
      be delivered to or mailed and received by the Secretary at the principal
      executive offices of the Fund not less than 90 days nor more than 120 days
      prior to the first anniversary of the preceding year's annual meeting;
      provided, however, that in the event that the date of the annual meeting
      is advanced by more than 30 days or delayed by more than 60 days from the
      anniversary date of the preceding year's annual meeting or no annual
      meeting was held in the preceding year, notice by the stockholder must be
      so delivered not earlier than the 90th day prior to such annual meeting
      and not later than the close of business on the later of the 60th day
      prior to such annual meeting or the tenth day following the day on which
      public announcement of the date of such meeting is first made. A
      stockholder's notice to the Secretary must be in writing and set forth as
      to each matter such stockholder proposes to bring before the annual
      meeting (i) a brief description of the business desired to be brought
      before the annual meeting and the reasons for conducting such business at
      the annual meeting, (ii) the name and address of such stockholder as they
      appear on the Fund's books and of the beneficial owner, if any, on whose
      behalf the proposal is made, (iii) the class or series and number of
      shares of capital stock of the Fund which are owned beneficially or of
      record by such stockholder and such beneficial owner, (iv) a description
      of all arrangements or understandings between such stockholder and any
      other person or persons (including their names) in connection with the
      proposal of such business by such stockholder and any material interest of
      such stockholder in such business, and (v) a representation that such
      stockholder intends to appear in person or by proxy at the annual meeting
      to bring such business before the meeting. No business shall be conducted
      at the annual meeting of stockholders except business brought before the
      annual meeting in accordance with the procedures set forth in Section 1.11
      or in this Section, <I>provided</I>, <I>however</I>, that once business
      has been properly brought before the annual meeting in accordance with
      such procedures, nothing in Section 1.11 nor in this Section shall be
      deemed to preclude discussion by any stockholder of any such business. If
      the chairman of an annual meeting determines that business was not
      properly brought before the annual meeting in accordance with the
      foregoing procedures, the chairman of the meeting shall declare to the
      meeting that the business was not properly brought before the meeting and
      such business shall not be transacted. No adjournment or postponement of a
      meeting of stockholders shall commence a new period for the giving of
      notice of a stockholder proposal hereunder.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      II.<BR><BR>BOARD OF DIRECTORS<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.01. <I>Function&nbsp;of&nbsp;Directors</I>.</B> The
      business and affairs of the Fund shall be managed under the direction of
      its Board of Directors. All powers of the Fund may be exercised by or
      under authority of the Board of Directors, except as conferred on or
      reserved to the stockholders by statute or by the Charter or these Bylaws.
      The Board of Directors may delegate the duty of management of the assets
      and the administration of the day-to-day operations of the Fund to one or
      more entities or individuals pursuant to a written contract or contracts
      which have obtained the approvals, including the approval of renewals
      thereof, required by the Investment Company Act of 1940, as amended (the
      "Investment Company Act").<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.02.
      <I>Number&nbsp;and&nbsp;Qualification&nbsp;of&nbsp;Directors</I>.</B> The
      Board of Directors shall consist of 3 directors, which number may be
      increased or decreased by a resolution of a majority of the entire board
      of directors, provided that the number of directors shall not be less than
      3 or more than 15 nor shall any change in the number of directors affect
      the tenure of office of any director. The membership of the Board of
      Directors shall meet the applicable requirements under the Investment
      Company Act. No person shall stand for election or reelection as a
      director of the Fund if that person would be 75 years old or older at the
      date of the proxy statement for the meeting of stockholders at which such
      election would take place, unless such person's candidacy shall have been
      approved by a unanimous vote of all of the directors present at a meeting
      at which a quorum is present (other than any director whose candidacy is
      being approved).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.03. <I>Election&nbsp;and&nbsp;Tenure&nbsp;of&nbsp;
      Directors</I>.</B> Subject to the rights of the holders of any class or
      series of stock separately entitled to elect one or more directors, the
      directors shall be divided into three classes as nearly equal in number as
      possible, with the term of office of one class of directors expiring in
      each year. In accordance with the provisions of the Charter, the classes
      shall be designated as Class I, Class II, and Class III, respectively. At
      each successive annual meeting of stockholders, the holders of stock
      present in person or by proxy at such meeting and entitled to vote thereat
      shall elect members of each successive class to serve for three year terms
      and until their successors are elected and qualify (and, as appropriate,
      the members of any other class to serve for the remainder of the term of
      that class and until their successors are elected and qualify). If the
      number of directors is changed, any increase or decrease shall be
      apportioned among the classes so as to maintain the number of directors in
      each class as nearly equal as possible, and any additional director of any
      class shall, subject to Section 2.05, hold office for a term that shall
      coincide with the remaining term of that class, but in no case shall a
      decrease in the number of directors shorten the term of any incumbent
      director.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B class=c777>&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SECTION&nbsp;
      2.04. <I>Removal&nbsp;of&nbsp; Director</I>.</B> Subject to the rights of
      the holders of any class or series of stock separately entitled to elect
      one or more directors and unless statute provides otherwise, any director,
      or the entire Board of Directors, may be removed from office at any time,
      with or without cause, but only by the affirmative vote of at least 75
      percent of the votes entitled to be cast generally for the election for
      directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.05.
      <I>Vacancy&nbsp;on&nbsp;Board&nbsp;of&nbsp;Directors</I>.</B> Subject to
      the Investment Company Act and consistent with the election in Section
      8.11, a majority of the remaining directors, whether or not sufficient to
      constitute a quorum, may fill a vacancy on the Board of Directors which
      results from any cause. Consistent with the election in Section 8.11, a
      director elected by the Board of Directors to fill a vacancy serves for
      the remainder of the full term of the class of directors in which the
      vacancy occurs and until his or her successor is elected and
      qualifies.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.06. <I>Regular&nbsp;Meetings</I>.</B> After each meeting
      of stockholders at which directors shall have been elected, the Board of
      Directors shall meet as soon thereafter as practicable for the purpose of
      organization and the transaction of other business. In the event that no
      other time and place are specified by resolution of the Board of Directors
      or announced by the President or the Chairman at such stockholders
      meeting, the Board of Directors shall meet immediately following the close
      of and at the place of such stockholders meeting. Any other regular
      meeting of the Board of Directors shall be held on such date and time, at
      such place or by means of remote communication, as may be designated from
      time to time by the Board of Directors. No notice of such meeting
      following a stockholders meeting or any other regular meeting shall be
      necessary if held as hereinabove provided.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.07. <I>Special&nbsp;Meetings</I>.</B> Special meetings of
      the Board of Directors may be called at any time by the Chairman or by a
      majority of the Board of Directors or a majority of the members of the
      Executive Committee by vote at a meeting, or in writing or delivered by
      electronic transmission with or without a meeting. A special meeting of
      the Board of Directors shall be held on such date, at any place or by
      means of remote communication, as may be designated from time to time by
      the Board of Directors. In the absence of designation such meeting shall
      be held at such place or means of remote communication as may be
      designated in the call.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.08. <I>Notice&nbsp;of&nbsp;Meetings</I>.</B> Except as
      provided in Section 2.06, the Secretary shall give notice to each director
      of each regular and special meeting of the Board of Directors. The notice
      shall state the time of the meeting and place or that the meeting is being
      held by means of remote communication. Notice is given to a director when
      it is delivered personally to him or her, left at his or her residence or
      usual place of business, or sent by electronic transmission, telegraph,
      facsimile transmission, or telephone, at least 24 hours before the time of
      the meeting or, in the alternative by mail to his or her address as it
      shall appear on the records of the Fund, at least 72 hours before the time
      of the meeting. Unless these Bylaws or a resolution of the Board of
      Directors provides otherwise, the notice need not state the business to be
      transacted at or the purposes of any regular or special meeting of the
      Board of Directors. No notice of any meeting of the Board of Directors
      need be given to any director who attends except where a director attends
      a meeting for the express purpose of objecting to the transaction of any
      business because the meeting is not lawfully called or convened, or to any
      director who delivers a written waiver or a waiver by electronic
      transmission which is filed with the records of the meeting either before
      or after the holding thereof, waiving such notice. Any meeting of the
      Board of Directors, regular or special, may adjourn from time to time to
      reconvene at the same or some other place, and no notice need be given of
      any such adjourned meeting other than by announcement.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.09. <I>Quorum;&nbsp;Action&nbsp;by&nbsp;Directors</I>.</B>
      A majority of the total number of directors fixed in accordance with these
      Bylaws shall constitute a quorum for the transaction of business. In the
      absence of a quorum, the directors present by majority vote and without
      notice other than by announcement may adjourn the meeting from time to
      time until a quorum shall attend. At any such adjourned meeting at which a
      quorum shall be present, any business may be transacted which might have
      been transacted at the meeting as originally notified. Unless statute or
      the Charter or these Bylaws requires a greater proportion, the action of a
      majority of the directors present at a meeting at which a quorum is
      present is the action of the Board of Directors. Except as to votes that
      the Investment Company Act requires to be taken in person, any action
      required or permitted to be taken at a meeting of the Board of Directors
      may be taken without a meeting if a unanimous consent which sets forth the
      action is given in writing or by electronic transmission by each member of
      the Board of Directors and filed in paper or electronic form with the
      minutes of proceedings of the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.10.
      <I>Meeting&nbsp;by&nbsp;Conference&nbsp;Telephone</I>.</B> Except as to
      votes that the Investment Company Act requires to be taken in person,
      members of the Board of Directors may participate in a meeting by means of
      a conference telephone or other communications equipment if all persons
      participating in the meeting can hear each other at the same time.
      Participation in a meeting by these means constitutes presence in person
      at a meeting.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.11. <I>Compensation</I>.</B> By resolution of the Board of
      Directors a fixed sum and expenses, if any, for attendance at each regular
      or special meeting of the Board of Directors or of committees thereof, an
      annual retainer, and other compensation for their services as such or on
      committees of the Board of Directors, may be paid to directors. Directors
      who are full-time employees of the Fund or "affiliated persons" as defined
      in the Investment Company Act of the Fund's investment advisor or
      principal underwriter shall not be paid for attendance at meetings of the
      Board of Directors or committees thereof for which fees are paid to other
      directors. A director who serves the Fund in any other capacity also may
      receive compensation for such other services, pursuant to a resolution of
      the directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.12. <I>Resignation</I>.</B> Any director may resign at any
      time by sending a written notice of such resignation to the principal
      office of the Fund addressed to the Chairman or the President. Unless
      otherwise specified therein such resignation shall take effect upon
      receipt thereof by the Chairman or the President.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.13. <I>Presumption&nbsp;of&nbsp; Assent</I>.</B> A
      director of the Fund who is present at a meeting of the Board of Directors
      at which action on any corporate matter is taken shall be presumed to have
      assented to the action taken unless his or her dissent or abstention shall
      be entered in the minutes of the meeting or unless he or she shall file
      his or her written dissent to such action with the person acting as the
      secretary of the meeting before the adjournment thereof or shall forward
      such dissent by registered mail to the Secretary of the Fund immediately
      after the adjournment of the meeting. Such right to dissent shall not
      apply to a director who votes in favor of such action or fails to make his
      dissent known at the meeting.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 2.14. <I>Advisory&nbsp;Directors</I>.</B> The Board of
      Directors may by resolution appoint advisory directors to the Board of
      Directors, who may also serve as directors emeriti, and shall have such
      authority and receive such compensation and reimbursement as the Board of
      Directors shall provide. Advisory directors or directors emeriti shall not
      have voting rights in connection with any business of the Board of
      Directors or any committee of the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      III.<BR><BR>COMMITTEES<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 3.01. <I>Committees</I>.</B> The Board of Directors may
      appoint from among its members an Executive Committee, an Audit Committee,
      a Nominating Committee, and other committees composed of one or more
      directors and delegate to these committees any of the powers of the Board
      of Directors, except the power to (i) authorize dividends on stock (other
      than as provided below), (ii) elect directors, (iii)&nbsp;issue stock
      (other than as provided below), (iv) recommend to the stockholders any
      action which requires stockholder approval, (v) amend these Bylaws, or
      (vi) approve any merger or share exchange which does not require
      stockholder approval. The Executive Committee, if appointed, shall have
      and may exercise all powers of the Board of Directors in the management of
      the business and affairs of the Fund that may lawfully be exercised by a
      committee. The membership of each committee shall meet the applicable
      requirements under the Investment Company Act. If the Board of Directors
      has given general authorization for a distribution and provides for or
      establishes a method or procedure for determining the maximum amount of
      the distribution, a committee of the Board of Directors or an officer of
      the Fund, in accordance with that general authorization, may fix the
      amount and other terms of the distribution. If the Board of Directors has
      given general authorization for the issuance of stock providing for or
      establishing a method or procedure for determining the maximum number of
      shares to be issued, a committee of the Board of Directors, in accordance
      with that general authorization or any stock option or other plan or
      program adopted by the Board of Directors, may authorize or fix the terms
      of stock subject to classification or reclassification and the terms on
      which any stock may be issued, including all terms and conditions required
      or permitted to be established or authorized by the Board of
      Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 3.02. <I>Committee&nbsp;Procedure</I>.</B> Each committee
      may fix rules of procedure for its business. A majority of the members of
      a committee shall constitute a quorum for the transaction of business and
      the act of a majority of those present at a meeting at which a quorum is
      present shall be the act of the committee. The members of a committee
      present at any meeting, whether or not they constitute a quorum, may
      appoint a director to act in the place of an absent or disqualified
      member. Any action required or permitted to be taken at a meeting of a
      committee may be taken without a meeting if a unanimous consent which sets
      forth the action is given in writing or by electronic transmission by each
      member of the committee and filed in paper or electronic form with the
      minutes of the committee. The members of a committee may conduct any
      meeting thereof by conference telephone in accordance with the provisions
      of Section 2.10.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 3.03. <I>Emergency</I>.</B> In the event of a state of
      disaster of sufficient severity to prevent the conduct and management of
      the affairs and business of the Fund by its directors and officers as
      contemplated by the Charter and these Bylaws, any two or more available
      members of the then incumbent Executive Committee shall constitute a
      quorum of that Committee for the full conduct and management of the
      affairs and business of the Fund in accordance with the provisions of
      Section 3.01. In the event of the unavailability, at such time, of a
      minimum of two members of the then incumbent Executive Committee, the
      available directors shall elect an Executive Committee consisting of any
      two members of the Board of Directors, whether or not they be officers of
      the Fund, which two members shall constitute the Executive Committee for
      the full conduct and management of the affairs of the Fund in accordance
      with the foregoing provisions of this Section. This Section shall be
      subject to implementation by resolution of the Board of Directors passed
      from time to time for that purpose, and any provisions of these Bylaws
      (other than this Section) and any resolutions which are contrary to the
      provisions of this Section or to the provisions of any such implementary
      resolutions shall be suspended until it shall be determined by any interim
      Executive Committee acting under this Section that it shall be to the
      advantage of the Fund to resume the conduct and management of its affairs
      and business under all the other provisions of these
    Bylaws.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      IV.<BR><BR>OFFICERS<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.01.
      <I>Executive&nbsp;and&nbsp;Other&nbsp;Officers</I>.</B> The Fund shall
      have a Chairman, a President, a Secretary, and a Treasurer. The Fund may
      also have one or more Vice Chairmen, Vice Presidents, assistant officers,
      and subordinate officers at the designation by the Board of Directors. A
      person may hold more than one office in the Fund except that no person may
      serve concurrently as both President and Vice President of the Fund. The
      Chairman and any Vice Chairmen shall be directors, and the other officers
      may be directors. The Board of Directors may designate a chief investment
      officer, a chief financial officer, a chief accounting officer, a chief
      administrative officer, or other officers with functional titles and
      specify the duties of such officers. A person may hold more than one
      functional title in the Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.02. <I>Chairman</I>.</B> The Chairman shall preside at all
      meetings of the Board of Directors and of the stockholders at which he or
      she shall be present and shall perform such other duties and have such
      other powers as are from time to time assigned to him or her by the Board
      of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;4.03. <I>Vice Chairmen</I>.</B> The Vice Chairman or Vice
      Chairmen, at the request of the Chairman, or in the Chairman's absence or
      during his or her inability to act, shall perform the duties and exercise
      the functions of the Chairman, and when so acting shall have the powers of
      the Chairman. If there be more than one Vice Chairman, the Board of
      Directors may determine which one or more of the Vice Chairmen shall
      perform any of such duties or exercise any of such functions, or if such
      determination is not made by the Board of Directors, the Chairman may make
      such determination; otherwise any of the Vice Chairmen may perform any of
      such duties or exercise any of such functions.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.04. <I>President</I>.</B> The President shall be the chief
      executive officer of the Fund, shall have general supervision of the
      business and affairs of the Fund and shall see that all orders and
      resolutions of the Board of Directors are carried out. He or she may
      execute, in the name of the Fund, all authorized deeds, mortgages, bonds,
      contracts or other instruments, except in cases in which the signing and
      execution thereof shall have been expressly delegated to some other
      officer or agent of the Fund. In general, he or she shall perform such
      other duties customarily performed by the president and chief executive
      officer of a closed-end investment company and shall perform such other
      duties and have such other powers as are from time to time assigned to him
      or her by the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.05. <I>Vice Presidents.</I></B> The Vice President or Vice
      Presidents, at the request of the President, or in the President's absence
      or during his or her inability to act, shall perform the duties and
      exercise the functions of the President, and when so acting shall have the
      powers of the President. If there be more than one Vice President, the
      Board of Directors may determine which one or more of the Vice Presidents
      shall perform any of such duties or exercise any of such functions, or if
      such determination is not made by the Board of Directors, the President
      may make such determination; otherwise any of the Vice Presidents may
      perform any of such duties or exercise any of such functions. Each Vice
      President shall perform such other duties and have such other powers, and
      have such additional descriptive designations in their titles (if any), as
      are from time to time assigned to them by the Board of Directors or the
      President.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.06. <I>Secretary</I>.</B> The Secretary shall keep the
      minutes of the meetings of the stockholders, of the Board of Directors and
      of any committees, in books provided for the purpose; he or she shall see
      that all notices are duly given in accordance with the provisions of these
      Bylaws or as required by law; he or she shall be custodian of the records
      of the Fund; he or she may witness any document on behalf of the Fund, the
      execution of which is duly authorized, see that the corporate seal is
      affixed where such document is required or desired to be under its seal,
      and, when so affixed, may attest the same. In general, he or she shall
      perform such other duties customarily performed by a secretary of a
      closed-end investment company, and shall perform such other duties and
      have such other powers as are from time to time assigned to him or her by
      the Board of Directors or the President.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.07. <I>Treasurer</I>.</B> The Treasurer shall have charge
      of and be responsible for all funds, securities, receipts and
      disbursements of the Fund, and shall deposit, or cause to be deposited, in
      the name of the Fund, all moneys or other valuable effects in such banks,
      trust companies or other depositories as shall, from time to time, be
      selected by the Board of Directors; he or she shall render to the
      President and to the Board of Directors, whenever requested, an account of
      the financial condition of the Fund. In general, he or she shall perform
      such other duties customarily performed by a treasurer of a closed-end
      investment company, and shall perform such other duties and have such
      other powers as are from time to time assigned to him or her by the Board
      of Directors or the President.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.08.
      <I>Assistant&nbsp;and&nbsp;Subordinate&nbsp;Officers</I>.</B> The
      assistant and subordinate officers of the Fund are all officers below the
      office of Vice President, Secretary, or Treasurer. The assistant or
      subordinate officers shall have such duties as are from time to time
      assigned to them by the Board of Directors or the
    President.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.09.
      <I>Election,&nbsp;Tenure&nbsp;and&nbsp;Removal&nbsp;of&nbsp;Officers</I>.</B>
      The Board of Directors shall elect the officers of the Fund. Election or
      appointment of an officer, employee or agent shall not of itself create
      contract rights. All officers shall be appointed to hold their offices,
      respectively, during the pleasure of the Board of Directors. The Board of
      Directors may remove an officer at any time, with or without cause. The
      removal of an officer does not prejudice any of his or her contract
      rights. The Board of Directors may fill a vacancy which occurs in any
      office.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 4.10. <I>Compensation</I>.</B> The Board of Directors shall
      have power to fix the salaries and other compensation and remuneration, if
      any, of all officers of the Fund. No officer shall be prevented from
      receiving such salary by reason of the fact that he or she is also a
      director of the Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      V.<BR><BR>INDEMNIFICATION<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;5.01. <I>General Indemnification</I>.</B> The Fund shall
      indemnify (i) its present and former directors and officers, whether
      serving or having served the Fund or at its request any other entity, to
      the fullest extent required or permitted by Maryland law in effect from
      time to time (as limited by the Investment Company Act), including the
      advance of costs and expenses (including attorneys' fees) under the
      procedures and to the fullest extent permitted by law, and (ii) other
      employees and agents to such extent as shall be authorized by the Board of
      Directors, the Charter, or this Bylaw and as permitted by law. The
      foregoing rights of indemnification shall not be exclusive of any other
      rights to which those seeking indemnification may be entitled. The Board
      of Directors may take such action as is necessary to carry out these
      indemnification provisions and is expressly empowered to adopt, approve,
      and amend from time to time such bylaws, resolutions, or contracts
      implementing such provisions or such further indemnification arrangements
      as may be permitted by law. No amendment of this Bylaw or repeal of any of
      its provisions shall limit or eliminate the right of indemnification
      provided hereunder with respect to acts or omissions occurring prior to
      such amendment or repeal.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;5.02. <I>Procedure</I>.</B> Any indemnification, or payment
      of costs and expenses in advance of the final disposition of any
      proceeding, shall be made promptly, and in any event within 60 days, upon
      the written request of the director or officer entitled to seek
      indemnification (the "Indemnified Party"). The right to indemnification
      and advances hereunder shall be enforceable by the Indemnified Party in
      any court of competent jurisdiction, if (i) the Fund denies such request,
      in whole or in part, or (ii) no disposition thereof is made within 60
      days. The Indemnified Party's costs and expenses (including attorneys'
      fees) incurred in connection with successfully establishing his or her
      right to indemnification, in whole or in part, in any such action shall
      also be paid or reimbursed by the Fund. It shall be a defense to any
      action for advance for costs and expenses that (a) a determination has
      been made that the facts then known to those making the determination
      would preclude indemnification or (b) the Fund has not received both (i)
      an undertaking as required by law to repay such advances in the event it
      shall ultimately be determined that the standard of conduct has not been
      met and (ii) a written affirmation by the Indemnified Party of such
      Indemnified Party's good faith belief that the standard of conduct
      necessary for indemnification by the Fund has been
met.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 5.03. <I>Exclusivity,&nbsp;Etc</I>.</B> The indemnification
      and advance of costs and expenses provided by the Charter and this Bylaw
      shall not be deemed exclusive of any other rights to which a person
      seeking indemnification or advance of costs and expenses may be entitled
      under any law (common or statutory), or any agreement, vote of
      stockholders or disinterested directors or other provision that is
      consistent with law, both as to action in his or her official capacity and
      as to action in another capacity while holding office or while employed by
      or acting as agent for the Fund, shall continue in respect of all events
      occurring while a person was a director or officer after such person has
      ceased to be a director or officer, and shall inure to the benefit of the
      estate, heirs, executors and administrators of such person. The Fund shall
      not be liable for any payment under this Bylaw in connection with a claim
      made by a director or officer to the extent such director or officer has
      otherwise actually received payment under insurance policy, agreement,
      vote or otherwise, of the amounts otherwise indemnifiable hereunder. All
      rights to indemnification and advance of costs and expenses under the
      Charter of the Fund and hereunder shall be deemed to be a contract between
      the Fund and each director or officer of the Fund who serves or served in
      such capacity at any time while this Bylaw is in effect. Nothing herein
      shall prevent the amendment of this Bylaw, provided that no such amendment
      shall diminish the rights of any person hereunder with respect to events
      occurring or claims made before its adoption or as to claims made after
      its adoption in respect of events occurring before its adoption. Any
      repeal or modification of this Bylaw shall not in any way diminish any
      rights to indemnification or advance of costs and expenses of such
      director or officer or the obligations of the Fund arising hereunder with
      respect to events occurring, or claims made, while this Bylaw or any
      provision hereof is in force.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 5.04. <I>Insurance.</I></B> The Fund may purchase and
      maintain insurance on behalf of any Indemnified Party against any
      liability asserted against and incurred by any Indemnified Party in any
      protected capacity or arising out of his or her position. The Fund may
      purchase and maintain insurance on its behalf in respect of any liability
      it may incur to provide indemnification under the Charter, this Bylaw, or
      law.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 5.05. <I>Severability;&nbsp;Definitions</I>.</B> The
      invalidity or unenforceability of any provision of this Article V shall
      not affect the validity or enforceability of any other provision hereof.
      The phrase "this Bylaw" in this Article V means this Article V in its
      entirety.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      VI.<BR><BR>STOCK<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.01. <I>Certificates&nbsp;for&nbsp;Stock</I>.</B> The Board
      of Directors may determine to issue certificated or uncertificated shares
      of capital stock and other securities of the Fund. For certificated stock,
      each stockholder is entitled to certificates which represent and certify
      the shares of stock he or she holds in the Fund. Each stock certificate
      (a) shall be in such form, not inconsistent with law or with the Charter,
      as shall be approved by the Board of Directors or any officer or officers
      designated for such purpose by resolution of the Board of Directors, (b)
      shall include on its face the name of the Fund, the name of the
      stockholder or other person to whom it is issued, and the class or series
      of stock and number of shares it represents, (c) shall be signed by the
      Chairman, the President, or a Vice President, and countersigned by the
      Secretary, an Assistant Secretary, the Treasurer, or an Assistant
      Treasurer and (d) may be sealed with the actual corporate seal or a
      facsimile of it or in any other form and the signatures may be either
      manual or facsimile signatures. Each stock certificate shall also include
      on its face or back (a) a statement of any restrictions on transferability
      and a statement of the designations and any preferences, conversion and
      other rights, voting powers, restrictions, limitations as to dividends,
      qualifications, and terms and conditions of redemption of the stock of
      each class or series which the Fund is authorized to issue, of the
      differences in the relative rights and preferences between the shares of
      each series of a preferred or special class in series which the Fund is
      authorized to issue, to the extent they have been set, and of the
      authority of the Board of Directors to set the relative rights and
      preferences of subsequent series of a preferred or special class of stock
      or (b) a statement which provides in substance that the Fund will furnish
      a full statement of such information to any stockholder on request and
      without charge. Such request may be made to the Secretary or to its
      transfer agent. Except as provided in the Maryland Uniform Commercial Code
      - Investment Securities, the fact that a stock certificate does not
      contain or refer to a restriction on transferability that is adopted after
      the date of issuance does not mean that the restriction is invalid or
      unenforceable. A stock certificate is valid and may be issued whether or
      not an officer who signed it is still an officer when it is issued. A
      certificate may not be issued until the stock represented by it is fully
      paid. Upon the issuance of uncertificated shares of capital stock, the
      Fund shall send the stockholder a written statement of the same
      information required above on the certificate and by the Maryland Uniform
      Commercial Code - Investment Securities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.02. <I>Transfers</I>.</B> The Board of Directors shall
      have power and authority to make such rules and regulations as it may deem
      expedient concerning the issue, transfer and registration of certificates
      of stock; and may appoint transfer agents and registrars thereof. The
      duties of transfer agent and registrar may be
combined.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.03.
      <I>Record&nbsp;Dates&nbsp;or&nbsp;Closing&nbsp;of&nbsp;Transfer&nbsp;Books</I>.</B>
      The Board of Directors may, and shall have the sole power to, set a record
      date or direct that the stock transfer books be closed for a stated period
      for the purpose of making any proper determination with respect to
      stockholders, including which stockholders are entitled to request a
      special meeting of stockholders, notice of a meeting of stockholders, vote
      at a meeting of stockholders, receive a dividend, or be allotted other
      rights. The record date may not be prior to the close of business on the
      day the record date is fixed nor, subject to Section 1.06, more than 90
      days before the date on which the action requiring the determination will
      be taken; the transfer books may not be closed for a period longer than 20
      days; and, in the case of a meeting of stockholders, the record date or
      the closing of the transfer books shall be at least ten days before the
      date of the meeting. Any shares of the Fund's own stock acquired by the
      Fund between the record date for determining stockholders entitled to
      notice of or to vote at a meeting of stockholders and the time of the
      meeting may be voted at the meeting by the holder of record as of the
      record date and shall be counted in determining the total number of
      outstanding shares entitled to be voted at the
meeting.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.04. <I>Stock&nbsp;Ledger</I>.</B> The Fund shall maintain
      a stock ledger which contains the name and address of each stockholder and
      the number of shares of stock of each class or series which the
      stockholder holds. The stock ledger may be in written form or in any other
      form which can be converted within a reasonable time into written form for
      visual inspection. The original or a duplicate of the stock ledger shall
      be kept at the offices of a transfer agent for the particular class or
      series of stock, or, if none, at the principal office in the State of
      Maryland or the principal executive offices of the
  Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.05.
      <I>Certification&nbsp;of&nbsp;Beneficial&nbsp;Owners</I>.</B> The Board of
      Directors may adopt by resolution a procedure by which a stockholder of
      the Fund may certify in writing to the Fund that any shares of stock
      registered in the name of the stockholder are held for the account of a
      specified person other than the stockholder. The resolution shall set
      forth the class or series of stockholders who may certify; the purpose for
      which the certification may be made; the form of certification and the
      information to be contained in it; if the certification is with respect to
      a record date or closing of the stock transfer books, the time after the
      record date or closing of the stock transfer books within which the
      certification must be received by the Fund; and any other provisions with
      respect to the procedure which the Board of Directors considers necessary
      or desirable. On receipt of a certification which complies with the
      procedure adopted by the Board of Directors in accordance with this
      Section, the person specified in the certification is, for the purpose set
      forth in the certification, the holder of record of the specified stock in
      place of the stockholder who makes the certification.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 6.06. <I>Lost&nbsp;Stock&nbsp;Certificates.</I></B> The
      Board of Directors may determine the conditions for issuing a new stock
      certificate in place of one which is alleged to have been lost, stolen, or
      destroyed, or the Board of Directors may delegate such power to any
      officer or officers of the Fund. In their discretion, the Board of
      Directors or such officer or officers may require the owner of the
      certificate to give bond, with sufficient surety, to indemnify the Fund
      against any loss or claim arising as a result of the issuance of a new
      certificate. In their discretion, the Board of Directors or such officer
      or officers may refuse to issue such new certificate save upon the order
      of some court having jurisdiction in the premises.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      VII.<BR><BR>FINANCE<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.01. <I>Negotiable Instruments</I>.</B> All checks, drafts
      and orders for the payment of money, notes and other evidences of
      indebtedness, issued in the name of the Fund, shall, unless otherwise
      provided by resolution of the Board of Directors, be signed by the
      Chairman, the President, a Vice President, an Assistant Vice President,
      the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
      Secretary (or in the name of the Fund by a custodian appointed under
      Section 7.06 by not less than two of its officers).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.02. <I>Annual&nbsp;Statement&nbsp;of&nbsp;Affairs</I>.</B>
      The President or the chief accounting officer shall prepare annually a
      full and correct statement of the affairs of the Fund, to include a
      balance sheet and a financial statement of operations for the preceding
      fiscal year. The statement of affairs shall be submitted at any annual
      meeting of the stockholders. Within 20 days after the annual meeting of
      stockholders or, if the Fund is not required to hold an annual meeting of
      stockholders, within 120 days after the end of the fiscal year, the
      statement of affairs shall be placed on file at the Fund's principal
      office.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.03. <I>Fiscal&nbsp;Year</I>.</B> The fiscal year of the
      Fund shall be the 12 calendar months period ending December 31 in each
      year, unless otherwise provided by the Board of
  Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.04. <I>Dividends</I>.</B> If declared by or under
      authority of the Board of Directors, the Fund may pay dividends on its
      shares in cash, property, or in shares of the capital stock of the Fund,
      unless such dividend is contrary to law or to a restriction contained in
      the Charter. The Board of Directors may prescribe from time to time that
      dividends declared are payable at the election of any of the stockholders,
      either in cash or in shares of the Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.05. <I>Valuation of Assets.</I></B> The Board of Directors
      shall establish procedures to govern the valuation of the portfolio
      securities held by the Fund, which procedures shall be consistent with the
      requirements of the Investment Company Act.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 7.06. <I>Employment&nbsp;of&nbsp;Custodian.</I></B> The Fund
      shall place and maintain its securities, similar investments and related
      funds in the custody of one or more custodians (including one or more
      subcustodians for maintaining its foreign securities, similar foreign
      investments and related funds) meeting the requirements of the Investment
      Company Act, or may serve as its own custodian in accordance with such
      rules and regulations or orders as the Securities and Exchange Commission
      the "Commission") may from time to time prescribe for the protection of
      investors. Securities held by a custodian may be registered in the name of
      the Fund, including the designation of the particular class or series of
      stock to which such assets belong, or any such custodian, or the nominee
      of either of them. Subject to such rules, regulations, and orders as the
      Commission may adopt as necessary or appropriate for the protection of
      investors, the Fund or any custodian, with the consent of the Fund, may
      deposit all or any part of the securities owned by the Fund in a system
      for the central handling of securities, pursuant to which system all
      securities of a particular class or series of any issuer deposited within
      the system are treated as fungible and may be transferred or pledged by
      bookkeeping entry without physical delivery of such
      securities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align=center><B>ARTICLE
      VIII.<BR><BR>SUNDRY PROVISIONS<BR>&nbsp;</B></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.01. <I>Offices</I>.</B> The principal office of&nbsp; the
      Fund in the State of Maryland shall be located in the City of Baltimore.
      The Fund may also have offices at such other places as the Board of
      Directors may from time to time determine or the business of the Fund may
      require.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.02. <I>Books&nbsp;and&nbsp;Records</I>.</B> The Fund shall
      keep correct and complete books and records of its accounts and
      transactions and minutes of the proceedings of its stockholders and Board
      of Directors and of any executive or other committee when exercising any
      of the powers of the Board of Directors. The books and records of the Fund
      may be in written form or in any other form which can be converted within
      a reasonable time into written form for visual inspection. Minutes shall
      be recorded in written form but may be maintained in the form of a
      reproduction. The original or a certified copy of these Bylaws shall be
      kept at the principal office of the Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.03. <I>Corporate&nbsp;Seal</I>.</B> The Board of Directors
      shall provide a suitable seal, bearing the name of the Fund, which shall
      be in the charge of the Secretary. The Board of Directors may authorize
      one or more duplicate seals and provide for the custody thereof. If the
      Fund is required to place its corporate seal to a document, it is
      sufficient to meet the requirement of any law, rule, or regulation
      relating to a corporate seal to place the word "(seal)" adjacent to the
      signature of the person authorized to sign the document on behalf of the
      Fund.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.04. <I>Bonds</I>.</B> The Board of Directors may, in its
      discretion, require any officer, agent or employee of the Fund to give a
      bond to the Fund, conditioned upon the faithful discharge of his or her
      duties to the Fund, with one or more sureties and in such amount as may be
      satisfactory to the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.05.
      <I>Voting&nbsp;Stock&nbsp;in&nbsp;Other&nbsp;Corporations</I>.</B> Stock
      of other corporations or associations, registered in the name of the Fund,
      may be voted by the President, a Vice President, or a proxy appointed by
      either of them. The Board of Directors, however, may by resolution appoint
      some other person to vote such shares, in which case such person shall be
      entitled to vote such shares upon the production of a certified copy of
      such resolution.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.06. <I>Mail</I>.</B> Any notice or other document which is
      required by these Bylaws to be mailed shall be deposited in the United
      States mails, postage prepaid.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.07. <I>Electronic Transmission</I>.</B> An electronic
      transmission is any form of communication, not directly involving the
      physical transmission of paper, that creates a record that may be
      retained, retrieved, and reviewed by a recipient of the communication and
      may be reproduced directly in paper form by a recipient through an
      automated process.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.08. <I>Contracts&nbsp;and&nbsp;Documents</I>.</B> To the
      extent permitted by applicable law, and except as otherwise prescribed by
      the Charter or these Bylaws, the Board of Directors may authorize any
      officer, employee or agent of the Fund (or a custodian appointed under
      Section 7.06 by not less than two of its officers) to authorize, sign,
      execute, acknowledge, verify, accept or deliver any contracts, agreements,
      assignments, indentures, mortgages, deeds, conveyances, transfers,
      certificates, declarations, receipts, discharges, releases, satisfactions,
      settlements, petitions, schedules, accounts, affidavits, bonds,
      undertakings, proxies, regulatory filings and other instruments or
      documents in the name of and on behalf of the Fund. Such authority may be
      general or confined to specific instances. A person who holds more than
      one office in the Fund may not act in more than one capacity to sign,
      execute, acknowledge, or verify an instrument required by law to be
      signed, executed, acknowledged, or verified by more than one
      officer.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.09. <I>Reliance</I>.</B> Each director and officer of the
      Fund shall, in the performance of his or her duties with respect to the
      Fund, be entitled to rely on any information, opinion, report or
      statement, including financial statement or other financial data, prepared
      or presented by an officer or employee of the Fund whom the director or
      officer reasonably believes to be reliable and competent in the matters
      presented, by a lawyer, certified public accountant or other person as to
      a matter which the director or officer reasonably believes to be within
      the person's professional or expert competence or by a committee of the
      Board of Directors on which the director does not serve, as to a matter
      within its designated authority, if the director reasonably believes the
      committee to merit confidence.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.10. <I>Certain Rights of Directors, Officers, Employees
      and Agents</I>.</B> The directors shall have no responsibility to devote
      their full time to the affairs of the Fund. Any director or officer,
      employee or agent of the Fund, in his or her personal capacity or in a
      capacity as an affiliate, employee, or agent of any other person, or
      otherwise, may have business interests and engage in business activities
      similar to or in addition to those of or relating to the Fund, subject to
      compliance with the Fund's codes of
ethics.<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE id=AutoNumber4
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-RIGHT-WIDTH: 0px"
cellSpacing=1 width="97%" border=1>

  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 8.11. <I>Subtitle 8, Title 3 Election</I>.</B> The Fund
      elects to be subject to the provisions of Section 3-804(c) of Subtitle 8
      of Title 3 of the Maryland General Corporation Law relating to the filling
      of vacancies on the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><B
      class=c777>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;8.12. <I>Amendments</I>.</B> In accordance with the Charter,
      these Bylaws may be repealed, altered, amended or rescinded and new bylaws
      may be adopted (a) by the stockholders of the Fund (considered for this
      purpose as one class) by the affirmative vote of not less than a majority
      of all the votes entitled to be cast by the outstanding shares of capital
      stock of the Fund generally in the election of directors which are cast on
      the matter at any meeting of the stockholders called for that purpose
      (provided that notice of such proposal is included in the notice of such
      meeting) or (b) by the Board of Directors by the affirmative vote of not
      less than two-thirds of the Board of Directors at a meeting held in
      accordance with the provisions of these Bylaws.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%" align="center">
      <P class=c776 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><b>ARTICLE
      IX.<BR><BR>CERTAIN PROVISIONS RELATING TO RATINGS ORGANIZATIONS</b></P>
      <P class=c778
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px" align="left"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp;9.01. <I>General
Definitions</I>.<BR>&nbsp;</b></P></TD></TR></TABLE>
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=6972
cellSpacing=0 cellPadding=0 width=731 border=0>

  <TR>
    <TD vAlign=top width=48 height=68>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Incorporation of Definitions by Reference</U>. Capitalized terms used
      in this Article IX but not specifically defined herein shall have the
      respective meanings assigned them in the Articles Supplementary, which
      definitions are hereby incorporated by reference
  herein.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=50>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Additional Definitions</U>. The following capitalized terms shall have
      the following meanings for purposes of this Article IX, whether used in
      the singular or plural.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=34>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=34>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"ADR"
      means American Depository Receipts.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=35>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=35>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"AMEX"
      means American Stock Exchange LLC.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=35>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=35>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "ARMS" means adjustable-rate mortgages.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=31>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=31>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "CMOs" means collateralized mortgage obligations.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=30>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=30>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Fitch" means Fitch, Inc.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=27>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=27>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Forward
      Commitments" has the meaning set forth in Section
  9.06(d).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=28>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=28>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Moody's Hedging Transactions" has the meaning set forth in Section
      9.06(d).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=34>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=34>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "MTNP" means a medium term note program.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=34>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=34>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "NASD" means National Association of Securities Dealers,
    Inc.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=50>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"National
      Securities Exchange" means the NYSE, AMEX, Midwest Stock Exchange,
      Philadelphia Stock Exchange, Boston Stock Exchange, NASDAQ System or any
      other national securities exchange.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=33>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=33>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"NYSE"
      means New York Stock Exchange, Inc.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=35>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=35>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Pricing
      Service" has the meaning set forth in Section 9.01(c).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=47>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=47>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "REIT" means an entity qualifying as a real estate investment trust under
      the United States Internal Revenue Code of 1986, as
    amended.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=65>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=65>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Rule
      144A Securities"<B> </B>means securities which are restricted as to resale
      under federal securities laws but are eligible for resale pursuant to Rule
      144A under the Securities Act, as determined by the Corporation's
      investment manager or portfolio manager acting pursuant to procedures
      approved by the Board of Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=31>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=31>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Securities
      Act" means the Securities Act of 1933, as amended.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=49>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=49>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Yankee
      Bond" means a debt security which is issued by a foreign government,
      province, supranational agency or foreign corporation.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=407>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=407>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Modified Definition of Market Value</U>. The definition of "Market
      Value" of any asset of the Corporation, as set forth in the Articles
      Supplementary, is hereby modified to mean the market value thereof
      determined by any pricing service designated by the Corporation and
      approved by Moody's and S&amp;P, if Moody's and S&amp;P are then rating
      the RP, and from any Substitute Rating Agency then rating the RP (the
      "Pricing Service"). The "Market Value" of any asset shall include any
      interest accrued thereon. The Pricing Service shall value portfolio
      property at the lower of the quoted bid price and the mean between the
      quoted bid and ask price or the yield equivalent when quotations are
      readily available. Securities and other property for which quotations are
      not readily available shall be valued at fair value as determined by the
      Pricing Service, using methods which include consideration of:&nbsp;
      yields or prices of securities of comparable quality, type of issue,
      coupon, maturity and rating; indications as to value from dealers; and
      general market conditions. The Pricing Service may employ electronic data
      processing techniques and/or a matrix system to determine valuations. If
      the Pricing Service fails to provide the Market Value of any securities,
      such securities shall be valued at the lower of two bid quotations (at
      least one of which shall be in writing) obtained by the Corporation from
      two dealers who are members of the NASD and are making a market in such
      securities. If two bid quotations are not readily available for any
      securities, such securities shall be valued at fair value on a consistent
      basis using methods determined in good faith by the Board of Directors.
      Futures contracts and options shall be valued at closing prices for such
      instruments established by the exchange or board of trade on which they
      are traded or, if market quotations are not readily available, shall be
      valued at fair value as determined by the Pricing Service or, if the
      Pricing Service is not able to value such instruments, shall be valued at
      fair value on a consistent basis using methods determined in good faith by
      the Board of Directors. All other assets shall be valued at fair value on
      a consistent basis using methods determined in good faith by the Board of
      Directors.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=731 colSpan=3 height=38>
      <P class=c782
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      SECTION&nbsp; 9.02. <i>S&amp;P Eligible Asset
Definitions</i>.<BR>&nbsp;</b></P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=50>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Additional Definitions</U>. The following capitalized terms shall have
      the following meanings for purposes of this Section 9.02, whether used in
      the singular or plural:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=32>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=32>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Bankers Acceptances" means time drafts drawn on and accepted by a
      bank.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=32>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=32>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Certificates of Deposit" means debt instruments issued by a bank that
      generally pay interest.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=52>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=52>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Commercial Paper" means high-grade unsecured notes sold by major
      corporations and finance companies either directly by such corporations
      and finance companies or indirectly through dealers.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=54>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=54>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Demand Deposits" means account balances that, without prior notice to the
      bank, can be drawn on by check, cash, or by transfer to other
      accounts.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=52>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=52>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Discount Notes" means short-term unsecured debt obligations issued by
      FNMA, FHLMC, FHLB, the Farm Credit System, and Sallie
  Mae.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=50>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Eurodollar Deposits" means U.S. dollar-denominated deposits at foreign
      banks or foreign branches of American banks.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=48>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=48>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Federal Funds" means next day funds deposited by commercial banks at
      Federal Reserve Banks, including funds in excess of bank reserve
      requirements.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=70>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Permitted Bank" means any bank, domestic or foreign, whose Commercial
      Paper is rated 'A-1+' or, subject to the conditions set forth in paragraph
      (ii)(B) of the definition of "S&amp;P Eligible Short-Term Money Market
      Instruments", 'A-1'.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=33>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=33>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;"REMICs" means real estate mortgage investment
      conduits.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Repurchase Agreement" means an agreement between a seller and&nbsp; buyer
      of securities, generally U.S. Government securities, where the seller
      agrees to repurchase the securities at an agreed upon price and generally
      at a stated time.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;"S&amp;P Eligible Collateralized Mortgage Obligations" means
      publicly registered CMO issuances which satisfy the following
      conditions:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=31>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=31>&nbsp;</TD>
    <TD vAlign=top width=649 height=31>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;such CMO issuances maintain 'AAA' ratings by
      S&amp;P;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=67>&nbsp;</TD>
    <TD vAlign=top width=649 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      such CMO issuances are current interest-bearing, fixed-
      or<BR>floating-rate, and are backed by pools of GNMA Certificates, FNMA
      Certificates, FHLMC Certificates or whole loans; and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=51>&nbsp;</TD>
    <TD vAlign=top width=649 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no more than 25% of the aggregate Market Value of the collateral backing
      any single CMO issuance can be from one private sector CMO
      issuer.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=106>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=106>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;"S&amp;P Eligible Common Stock" means common stocks or ADRs (i) of
      which the Corporation holds no more than the average monthly trading
      volume over the past year, (ii) which have a minimum market capitalization
      of at least $100 million, (iii) which are neither restricted stocks (Rule
      144A Securities) or any pink sheet stocks (generally, stock that are not
      carried in daily over-the-counter newspaper listings) and (iv) which are
      owned by the Corporation.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=109>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=109>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "S&amp;P Eligible Convertible Bonds" means <A name=OLE_LINK1>all
      convertible bonds that are rated at least '</A>CCC-' by S&amp;P;
      <I>provided</I>, <I>however</I>, that all such convertible bonds that are
      rated below 'BBB-' by S&amp;P must have a minimum market capitalization of
      $100 million (it being understood, for purposes of this definition, that
      market capitalization levels assume weekly valuation at the lower of two
      bid quotations obtained by the Corporation from two dealers who are
      members of NASD and are making a market in such
    securities).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=109>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=109>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible Convertible Preferred Stock" means all convertible preferred
      stock that is rated at least 'CCC-' by S&amp;P; <I>provided</I>,
      <I>however</I>, that all such convertible preferred stock that is rated
      below 'BBB-' by S&amp;P must have a minimum market capitalization of $100
      million (it being understood, for purposes of this definition, that market
      capitalization levels assume weekly valuation at the lower of two bid
      quotations obtained by the Corporation from two dealers who are members of
      NASD and are making a market in such securities).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=128>&nbsp;</TD>
    <TD vAlign=top width=683 colSpan=2 height=128>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;"S&amp;P Eligible Corporate Bonds" means debt securities issued by a
      corporation and Yankee Bonds which (i) provide for periodic interest
      payments in cash over the life of the security, (ii)&nbsp;are not
      convertible or exchangeable into capital of the security's issuer at any
      time (except that not more than 10% in Market Value of the corporate debt
      securities pool may be subject to exchange or tender offer), and (iii)
      have a remaining term to maturity of 30 years or less. In addition, no
      debt securities shall be S&amp;P Eligible Corporate Bonds unless such
      securities satisfy all of the following conditions<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=50>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=34 height=50>&nbsp;</TD>
    <TD vAlign=top width=649 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      financial statements are publicly available for the issuer of such debt
      securities and such debt securities are registered under the Securities
      Act of 1933;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=50>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=50>&nbsp;</TD>
    <TD vAlign=top width=649 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      private placement 144A debt securities with registration rights are deemed
      to be Eligible Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=50>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=50>&nbsp;</TD>
    <TD vAlign=top width=649 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      in the case of a debt security issued under a MTNP, such debt security is
      part of a series of medium term notes which exceeds $5 million in
      aggregate Market Value;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=70>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=70>&nbsp;</TD>
    <TD vAlign=top width=649 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no non-rated debt securities owned by the Corporation shall be deemed to
      be S&amp;P Eligible Corporate Bonds to the extent the Market Value of such
      debt securities owned by the Corporation exceeds 5% of aggregate Market
      Value of all Eligible Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=68>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=68>&nbsp;</TD>
    <TD vAlign=top width=649 height=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      at least 80% of the Market Value of high-yield debt securities (collateral
      rated below 'BBB-') owned by the Corporation have a minimum original issue
      size of $100 million, and the other 20% have a minimum original issue size
      of $50 million;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=84>&nbsp;</TD>
    <TD vAlign=top width=649 height=84>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no debt securities having an S&amp;P rating ranging from 'CCC-' to 'CCC+'
      owned by the Corporation shall be deemed to be S&amp;P Eligible Corporate
      Bonds to the extent the Market Value of such debt securities owned by the
      Corporation exceeds 20% of the aggregate Market Value of all Eligible
      Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=70>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=70>&nbsp;</TD>
    <TD vAlign=top width=649 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no debt securities rated below 'CC-' by S&amp;P owned by the Corporation
      shall be deemed to be S&amp;P Eligible Corporate Bonds to the extent the
      Market Value of such debt securities owned by the Corporation exceeds 15%
      of the aggregate Market Value of all Eligible Portfolio
      Property;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=70>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=70>&nbsp;</TD>
    <TD vAlign=top width=649 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no Sovereigns shall be deemed to be S&amp;P Eligible Corporate Bonds to
      the extent the Market Value of such Sovereigns owned by the Corporation
      exceeds 50% of the aggregate Market Value of all Eligible Portfolio
      Property;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=87>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=87>&nbsp;</TD>
    <TD vAlign=top width=649 height=87>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no Sovereigns rated 'A-' or better by S&amp;P shall be deemed to be
      S&amp;P Eligible Corporate Bonds to the extent the Market Value of such
      Sovereigns owned by the Corporation exceeds 100% of the aggregate Market
      Value of all Sovereigns deemed to be S&amp;P Eligible Corporate Bonds
      pursuant to paragraph (viii) above;<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=88>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=88>&nbsp;</TD>
    <TD vAlign=top width=649 height=88>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no Sovereigns rated between 'BBB-' and 'BBB+' by S&amp;P shall be deemed
      to be S&amp;P Eligible Corporate Bonds to the extent the Market Value of
      such Sovereigns owned by the Corporation exceeds 25% of the aggregate
      Market Value of all Sovereigns deemed to be S&amp;P Eligible Corporate
      Bonds pursuant to paragraph (viii) above; and<BR>&nbsp;</P></TD></TR>
  <TR height=1>
    <TD vAlign=top width=48 height=86>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=86>&nbsp;</TD>
    <TD vAlign=top width=649 height=86>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no Sovereigns rated below 'BBB-' by S&amp;P shall be deemed to be S&amp;P
      Eligible Corporate Bonds to the extent the Market Value of such Sovereigns
      owned by the Corporation exceeds 10% of the aggregate Market Value of all
      Sovereigns deemed to be S&amp;P Eligible Corporate Bonds pursuant to
      paragraph (viii) above.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=53>&nbsp;</TD>
    <TD vAlign=top width=683 colSpan=2 height=53>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible FHA-Insured Multifamily Loans" mean FHA multifamily loans which
      satisfy the following conditions:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=51>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      such loans are first-lien, current interest-bearing, have a minimum
      principal balance of $100,000, and have at least a one-year minimum
      remaining to maturity;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such loans are accompanied by evidence
      of an FHA insurance commitment;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Market Value of any one such loan
      does not exceed 5% of the aggregate Market Value of the portfolio of such
      loans;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; such loans are initially included in
      minimum blocks of $5 million, per the insurance program under the National
      Housing Act;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the collateral pools underlying such
      loans are homogenous;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of project loans, such
      loans have at least a 90% occupancy rate at the time the loan is pledged,
      and such occupancy rate is confirmed by the managerial report dated not
      more than one year prior to the date of pledging, and annually
      thereafter;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if such loans are insured under
      Section 221(d)(4) of the National Housing Act and are putable, such
      characteristic is identified along with the put period;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the prepayment and call protection
      features of such loans are identified, and the locations of the applicable
      projects are disclosed;<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of defaulted mortgage
      loans, such loans may continue to be valued for up to 90 days after
      default;&nbsp; <I>provided</I>,<I> however</I>, that after 90 days
      following such default, such loans must be valued at zero (it being
      understood that any such loan in default is to be liquidated or
      substituted during such 90-day period); and<BR>&nbsp;&nbsp; </TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>&nbsp;</TD>
    <TD vAlign=top width=34 height=40>&nbsp;</TD>
    <TD vAlign=top width=649 height=40>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the conditions set forth in sub-clauses
      (i) through (ix) above are certified by a nationally recognized
      independent accounting firm at the closing for such loans for every audit
      for such loans thereafter.<BR>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width=48 height=40>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=40>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible Fixed-Rate and Adjustable-Rate Mortgages (Conventional/ FHA/VA
      Mortgages and Whole Loans)" means mortgage pools which (i) consist of at
      least 100 loans each secured by single-family, one-unit, detached primary
      residence and (ii)&nbsp;satisfy the following
  conditions:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=34 height=67>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the loan-to-value ratio ("LTV") of each such pool is 80% or less, and the
      loan balance of each loan included in each such pool is not greater than
      $400,000, except as noted in the other conditions set forth
      below;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=67>&nbsp;</TD>
    <TD vAlign=top width=649 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no more than 25% of each pool may have LTVs greater than 80% but less than
      or equal to 90%; <I>provided</I>, <I>however</I>, that no more than 10% of
      each pool may have an original LTV in excess of 80%, but less than or
      equal to 95%;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=48>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=48>&nbsp;</TD>
    <TD vAlign=top width=649 height=48>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      loans with LTVs in excess of 80% are covered by "AA" primary mortgage
      insurance accompanied by an adjustor policy when negative amortization is
      present;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=66>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=66>&nbsp;</TD>
    <TD vAlign=top width=649 height=66>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no more than 25% of each pool may have loan balances between $400,000 and
      $600,000; <I>provided</I>, <I>however</I>, that the maximum size of any
      loan is appropriate with respect to the market area of the
      originator;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=36>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=36>&nbsp;</TD>
    <TD vAlign=top width=649 height=36>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no more than 10% of each pool may represent condominiums that are four
      stories or less;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=51>&nbsp;</TD>
    <TD vAlign=top width=649 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the total proportion of each pool represented by loans meeting the
      conditions of any of paragraphs (B), (D) or (E) above does not exceed 35%
      of such pool; <BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=52>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=52>&nbsp;</TD>
    <TD vAlign=top width=649 height=52>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      in each pool, no single loan has the characteristics described in more
      than one of paragraphs (B), (D) or (E) above;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=51>&nbsp;</TD>
    <TD vAlign=top width=649 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      in each pool, properties securing the loans are well dispersed
      geographically and are in areas with strong economies; and
    <BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=68>&nbsp;</TD>
    <TD vAlign=top width=34 height=68>&nbsp;</TD>
    <TD vAlign=top width=649 height=68>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (I)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the case of each
      ARM collateral, such pool is homogenous, and all mortgages include in such
      pool are tied to the same index, have similar caps, and have same
      frequency of interest rate and payments that adjust in the same
      quarter.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=88>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=88>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible Mortgage Pass-Through Certificates" means publicly issued
      certificates which (i) evidence proportional, undivided interests in pools
      of whole residential mortgage loans and (ii) maintain at least 'AA-'
      rating by S&amp;P; <I>provided</I>, <I>however</I>, that certificates
      rated at an S&amp;P 'AA-' equivalent by another nationally recognized
      credit rating agency may be eligible on a case-by-case
    basis.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=33>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=33>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "S&amp;P Eligible Preferred Stock" means preferred stocks that satisfy all
      of the following conditions:&nbsp;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=66>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=66>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=66>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the preferred stock issuer has a senior debt rating from S&amp;P, or the
      preferred issue is rated. In the case of Yankee Preferred Stock, the
      issuer has a S&amp;P senior debt rating of at least 'BBB', or the
      preferred issue is rated at least 'BBB';<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=67>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the issuer - or if the issuer is a special-purpose corporation, its parent
      - is listed on either the NYSE, the AMEX or the NASDAQ System if the
      traded par amount is less than $1,000; <I>provided</I>, that if the traded
      par amount is $1,000 or more, exchange listing is not
      required;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=33>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=33>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=33>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the preferred stock pays cash dividends denominated in U.S.
      dollars;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=47>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=47>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=47>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      private placement 144A preferred stock with registration rights are deemed
      to be Eligible Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=28>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=28>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=28>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the issuer has a minimum market
      capitalization of $100 million;&nbsp; <BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=85>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=85>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=85>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      if such preferred stock is floating-rate preferred stock, (x) holdings of
      such floating-rate preferred stock must be limited to stock with a
      dividend period of less than or equal to 49 days, except for a new issue,
      where the first dividend period may be up to 64 days and (y) such
      floating-rate preferred stock may not have been subject to a failed
      auction;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=66>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=66>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=66>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      if such preferred stock is adjustable- or auction-rate preferred stock,
      the total Market Value of such adjustable-rate preferred stock held in the
      portfolio may not exceed 10% of the Eligible Portfolio
      Property;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=70>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=70>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no preferred stock of any issuer owned by the Corporation shall be deemed
      to be S&amp;P Eligible Preferred Stock to the extent the Market Value of
      such preferred stock owned by the Corporation exceeds 10% of the aggregate
      Market Value of all Eligible Portfolio Property; and <BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=86>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=34 height=86>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=86>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      no preferred stock rated below 'B-' (including non-rated preferred stock)
      owned by the Corporation shall be deemed to be S&amp;P Eligible Preferred
      Stock to the extent the extent the Market Value of such preferred stock
      owned by the Corporation exceeds 15% of the aggregate Market Value of all
      Eligible Portfolio Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=86>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=86>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible Short-Term Money Market Instruments" means short-term money
      market instruments, including, without limitation, cash, Bankers
      Acceptances, Certificates of Deposit, Commercial Paper, Demand Deposits,
      Eurodollar Deposits, Federal Funds, Repurchase Agreements and Discount
      Notes, which (i) mature in one to 360 days and (ii) satisfy the following
      conditions:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=51>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=51>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      short-term money market instruments, other than Commercial Paper, must be
      issued by an institution that, at the time of investment, is a Permitted
      Bank;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=91>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=91>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=91>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <A name=OLE_LINK5>short-term money market instruments, other than
      Commercial Paper,</A> invested in an institution rated 'A&#8209;1' must have a
      maturity of 30 days or less, and the aggregate Market Value of all S&amp;P
      Eligible Short-Term Money Market Instruments, other than Commercial Paper,
      invested in institutions rated 'A-1' may not exceed 20% of the aggregate
      Market Value of all Eligible Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=104>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=104>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=104>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      in the case of Eurodollar Deposits, (x) such Eurodollar Deposits must be
      issued by a Permitted Bank through its head office and/or any branch whose
      sovereign rating is rated the same or higher than the issuing bank and (y)
      to the extent such Eurodollar deposits are deposited through the Cayman
      Islands branch of a Permitted Bank, such Cayman Islands branch must
      operate under a "B Operating License," which license is verified by the
      Permitted Bank;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=86>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=86>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=86>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Commercial Paper must have a rating of 'A-1+', 'A-1' or 'A-2' to qualify
      as an S&amp;P Eligible Short-Term Money Market Instrument, and the
      aggregate Market Value of all Commercial Paper rated 'A-1' or 'A-2' owned
      by the Corporation may not exceed 20% of the aggregate Market Value of all
      Eligible Portfolio Property;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=47>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=47>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=47>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Commercial Paper rated 'A-1' owned by the Corporation must be divided
      equally among at least three issuers; and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=47>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=47>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=47>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Commercial Paper rated 'A-2' owned by the Corporation must be divided
      equally among at least five issuers.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=66>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=66>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "S&amp;P Eligible Unsecured Corporate Debt Obligations of FNMA, FHLMC,
      FHLB, Farm Credit System, and Sallie Mae" means direct issuance corporate
      debt securities of FNMA, FHLMC, FHLB, the Farm Credit System or Sallie Mae
      which satisfy the following conditions:&nbsp;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=33>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=33>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=33>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      such corporate debt securities are not exchangeable;
  and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=34>&nbsp;</TD>
    <TD vAlign=top width=34 height=34>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=34>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      such corporate debt securities mature in 15 years or less, and pay
      interest periodically.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=30>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=30>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible U.S. Agency Mortgage Collateral" means the following
      securities:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=76>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=76>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=76>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      certificates that (x) are guaranteed by GNMA for the full and timely
      payment of principal and interest and (y) evidence fractional undivided
      interests in pools of level-payment; fixed-, variable-, or
      adjustable-rate; or fully amortizing mortgage loans that are secured by
      first liens on one- to four-family residences;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=87>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=87>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=87>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      certificates that (x) are guaranteed by FNMA for the full and timely
      payment of principal and interest and (y) evidence proportional undivided
      interests in pools of level-payment; fixed-, variable-, or
      adjustable-rate; fully amortizing mortgage loans that are secured by first
      liens on one- to four-family residences;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=122>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=122>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=122>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      certificates that (x) are guaranteed by FHLMC for the timely payment of
      interest and ultimate payment of principal and (y) evidence proportional
      undivided interests in pools of level-payment; fixed-, variable-, or
      adjustable-rate; fully amortizing mortgage loans that are secured by first
      liens on one- to four-family residences (<I>provided</I>, that, in the
      case of multifamily Plan B FHLMC certificates, the pools contain
      fixed-rate, fully amortizing mortgage loans that are secured by first
      liens on properties containing five or more units and designed primarily
      for residential use);<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=49>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=49>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=49>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      qualifying "large pool" FNMA mortgage-backed securities, FHLMC
      participation certificates and FNMA MegaPools;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=31>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=31>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=31>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      FNMA Majors, FHLMC Multilender Swaps, and FHLMC Giant
      certificates;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=50>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=50>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      non-convertible FNMA adjustable-rate mortgage MegaPools and FHLMC weighted
      average coupon adjustable-rate mortgage certificates;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=35>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=35>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=35>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      FHLMC Giant programs excluding interest-only and principal-only stripped
      securities;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=55>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=55>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=55>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      FNMA Certificates backed by multifamily adjustable-rate mortgages pegged
      to the 11<SUP>th</SUP> District Cost of Funds Index;
  and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=38>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=38>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=38>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      multiclass REMICs issued by FNMA and FHLMC.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=62>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=62>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"S&amp;P
      Eligible U.S. Treasury Securities" means securities that are direct
      obligations of, or fully guaranteed by, the full faith and credit of the
      United States, including Treasury Bills, Treasury Notes, Treasury Bonds
      and Treasury Strips.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=46>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=46>
      <P class=c784 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Sovereign"
      means a Yankee Bond which is issued by a foreign government or province or
      a supranational agency<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=68>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Treasury
      Bills" means securities that (i) are direct obligations of, or fully
      guaranteed by, the full faith and credit of the United States, (ii) mature
      in one year or less and (iii) are issued at a discount from face value and
      mature at face value.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=59>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=59>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Treasury
      Bonds" means securities that (i) are direct obligations of, or fully
      guaranteed by, the full faith and credit of the United States, (ii) mature
      in more than ten years and (iii) pay interest
    semiannually.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=70>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=70>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Treasury
      Notes" means securities that (i) are direct obligations of, or fully
      guaranteed by, the full faith and credit of the United States, (ii)
      generally mature in two, three, five or ten years and (iii) are issued at
      or near face value and bear interest semiannually.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=69>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=69>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Treasury
      Strips" means (i) securities that are based on securities that are direct
      obligations of, or fully guaranteed by, the full faith and credit of the
      United States and (ii) created through the Separate Trading of Registered
      Interest and Principal of Securities program.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=54>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=54>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Yankee
      Preferred Stock" means preferred stock which is issued by a foreign
      corporation and is offered and sold in the U.S. and denominated in U.S.
      dollars.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=49>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=49>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Modified Definitions</U>. For purposes of this Section 94.02, the
      following definitions as set forth in the Articles Supplementary are
      hereby modified as set forth below:&nbsp;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=200>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=200>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=200>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P Eligible Common Stock, S&amp;P
      Eligible Preferred Stock, S&amp;P Eligible Corporate Bonds, S&amp;P
      Eligible Convertible Bonds, S&amp;P Eligible Convertible Preferred Stock,
      S&amp;P Eligible Short-Term Money Market Instruments, S&amp;P Eligible
      U.S. Treasury Securities, S&amp;P Eligible U.S. Agency Mortgage
      Collateral, S&amp;P Eligible Mortgage Pass-Through Certificates, S&amp;P
      Eligible Fixed-Rate and Adjustable-Rate Mortgages (Conventional/FHA/VA
      Mortgages and Whole Loans),&nbsp; S&amp;P Eligible Collateralized Mortgage
      Obligations, S&amp;P Eligible Unsecured Corporate Debt Obligations of
      FNMA, FHLMC, FHLB, Farm Credit System, and Sallie Mae, and S&amp;P
      Eligible FHA-Insured Multifamily Loans, having met the requirements set
      forth in the definition of "Other Permitted Securities" in the Articles
      Supplementary, shall be included <A name=OLE_LINK2>as "Other Permitted
      Securities" for purposes of determining maintenance of the "</A>S&amp;P RP
      Basic Maintenance Amount".<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=69>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=69>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=69>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "Utility Bonds" set
      forth in the Articles Supplementary is hereby modified so as to mean any
      corporate debt securities of a public utility company, which securities
      satisfy the requirements set forth in the definition of "S&amp;P Eligible
      Corporate Bonds" set forth in this Section 9.02.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=71>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=71>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=71>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "Utility Stocks" set
      forth in the Articles Supplementary is hereby modified so as to mean any
      common stock issued by a&nbsp; public utility company, which common stock
      satisfies the requirements set forth in the definition of "S&amp;P
      Eligible Common Stock" set forth in this Section 9.02.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=92>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 18px">&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=92>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Certain Limitation on Inclusion as Eligible Portfolio Property</U>. No
      securities of any single issuer owned by the Corporation shall be deemed
      to be "Eligible Portfolio Property" for purposes of determining
      maintenance of the "S&amp;P RP Basic Maintenance Amount" to the extent
      that the Market Value of such securities owned by the Corporation exceeds
      10% of the aggregate Market Value of all Eligible Portfolio
      Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=731 colSpan=3 height=189>
      <P class=c784
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <B class=c777>SECTION&nbsp;9.03. <I>Discount Factors Supplied by
      S&amp;P</I></B>. The following Discount Factors, having been supplied by
      S&amp;P, shall be "Discount Factors Supplied by S&amp;P" as defined in the
      Articles Supplementary for purposes of calculating the "Discounted Value"
      of the assets for purposes of determining maintenance of the "S&amp;P RP
      Basic Maintenance Amount". Certain of the initial "Discount Factors
      Supplied by S&amp;P" set forth in the Articles Supplementary are hereby
      superseded and replaced, as described in greater particularity below. To
      the extent the Market Value of the securities of any single issuer owned
      by the Corporation exceeds 5% of the aggregate Market Value of all
      Eligible Portfolio Property, the Discount Factor applied to such
      securities shall be increased by 0.02 for each percentage of such
      concentration above 5% of the aggregate Market Value of all Eligible
      Portfolio Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=29>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=29>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P Eligible Common
      Stock</U>.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=53>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=53>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=53>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors set forth below
      shall be deemed to supersede and replace the Discount Factors for Utility
      Stocks set forth in the Articles Supplementary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=67>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=67>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraph (iv) below, the
      Discount Factor applied to S&amp;P Eligible Common Stock (including
      Utility Stocks and ADRs), other than S&amp;P Eligible Common Stock of
      REITs, shall be 1.7848.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=52>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=52>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=52>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraph (iv) below, the
      Discount Factor applied to S&amp;P Eligible Common Stock of REITs shall be
      1.5178.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=94>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=94>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=649 height=94>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for S&amp;P
      Eligible Common Stock that has not been listed on an exchange or traded
      for more than 15 months (eligible stock exchanges are the National
      Securities Exchanges, the Washington Stock Exchange, the Pacific Stock
      Exchange and National Market Quotations) shall be the Discount Factor set
      forth in paragraph (ii) or (iii) above, as applicable, increased by
      0.20.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=32>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=32>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P Eligible
      Preferred Stock</U>.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=48 height=58>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px"
      align=left>&nbsp;</P></TD>
    <TD vAlign=top width=34 height=58>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=649 height=58>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"
      align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraphs (ii) and (iii)
      below, the Discount Factor applied to S&amp;P Eligible Preferred Stock
      shall be determined by reference to the type of S&amp;P Eligible Preferred
      Stock in accordance with the table set forth
below.</P></TD></TR></TABLE></DIV>
<DIV style="WIDTH: 603px" c779?>
<DIV class=c788 style="WIDTH: 730px; HEIGHT: 96px">
<div align="center">
<center>
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#000000 cellSpacing=0
cellPadding=0 width="64%" border=1>

  <TR>
    <TD vAlign=top height=19>
      <P class=c785>&nbsp; Type of S&amp;P Eligible Preferred Stock</P></TD>
    <TD vAlign=top height=19 align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD vAlign=top height=19>
      <P class=c786>&nbsp;&nbsp;Fixed rate Preferred stock</P></TD>
    <TD vAlign=top height=19 align="center">
      <P class=c787>2.9568</P></TD></TR>
  <TR>
    <TD vAlign=top height=19>
      <P class=c786>&nbsp;&nbsp;Adjustable rate Preferred stock</P></TD>
    <TD vAlign=top height=19 align="center">
      <P class=c787>2.7212</P></TD></TR>
  <TR>
    <TD vAlign=top height=19>
      <P class=c786>&nbsp;&nbsp;Taxable Preferred (non-DRD)</P></TD>
    <TD vAlign=top height=19 align="center">
      <P class=c787>1.9202</P></TD></TR></TABLE></center></div>

</DIV></DIV>
<DIV style="WIDTH: 761px; HEIGHT: 360px">
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=238
cellSpacing=0 cellPadding=0 width=730 border=0>

  <TR>
    <TD vAlign=top width=49 height=72>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=1 height=72>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;
    </P></TD>
    <TD vAlign=top width=945 height=72>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for S&amp;P
      Eligible Preferred Stock the issuer of which has a senior debt rating or a
      preferred stock rating of less than BBB shall be the applicable Discount
      Factor set forth in the table in paragraph (i) above increased by
      0.05.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=72>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=54 height=72>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=627 height=72>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for S&amp;P
      Eligible Preferred Stock the issuer of which has no senior debt rating or
      preferred stock rating, or no dividend history, shall be the applicable
      Discount Factor set forth in the table in paragraph (i) above increased by
      0.10.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=94>
      <P class=c779 style="MARGIN-BOTTOM: 18px">&nbsp;</P></TD>
    <TD vAlign=top width=681 colSpan=2>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P</U> <U>Eligible
      Corporate Bonds</U>. The Discount Factors applied to S&amp;P Eligible
      Corporate Bonds (including Utility Bonds) <A name=OLE_LINK4>shall be
      determined by reference to the rating on such asset in accordance with the
      table set forth below.</A> The Discount Factors set forth below shall be
      deemed to supersede and replace the Discount Factors for Utility Bonds set
      forth in the Articles Supplementary.</P></TD></TR></TABLE>
<DIV class=c788 style="WIDTH: 729px; HEIGHT: 180px">
<div align="center">
<center>
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=179
cellSpacing=0 cellPadding=0 width="277" border=1>

  <TR>
    <TD height=19 align="center" width="118">
      <P class=c785>Rating</P></TD>
    <TD height=19 align="center" width="156">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD height=19 align="center" width="118">
      <P class=c786>&nbsp;&nbsp;AAA</P></TD>
    <TD height=19 align="center" width="156">
      <P class=c787>1.1836</P></TD></TR>
  <TR>
    <TD height=19 align="center" width="118">
      <P class=c786>&nbsp;&nbsp;AA</P></TD>
    <TD height=19 align="center" width="156">
      <P class=c787>1.1942</P></TD></TR>
  <TR>
    <TD height=19 align="center" width="118">
      <P class=c786>&nbsp;&nbsp;A</P></TD>
    <TD height=19 align="center" width="156">
      <P class=c787>1.2099</P></TD></TR>
  <TR>
    <TD vAlign=top height=19 align="center" width="118">
      <P class=c786
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;BBB</P></TD>
    <TD vAlign=top height=19 align="center" width="156">
      <P class=c787 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">1.2543</P></TD></TR>
  <TR>
    <TD vAlign=top height=19 align="center" width="118">
      <P class=c786
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;BB</P></TD>
    <TD vAlign=top height=19 align="center" width="156">
      <P class=c787 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">1.4139</P></TD></TR>
  <TR>
    <TD vAlign=top height=19 align="center" width="118">
      <P class=c786
    style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;B</P></TD>
    <TD vAlign=top height=19 align="center" width="156">
      <P class=c787 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">1.7691</P></TD></TR>
  <TR>
    <TD vAlign=top height=19 align="center" width="118">
      <P class=c786
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;CCC</P></TD>
    <TD vAlign=top height=19 align="center" width="156">
      <P class=c787 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">4.9524</P></TD></TR>
  <TR>
    <TD vAlign=top height=19 align="center" width="118">
      <P class=c786
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;CCC-</P></TD>
    <TD vAlign=top height=19 align="center" width="156">
      <P class=c787
  style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">14.3113</P></TD></TR></TABLE>
</center></div>

</DIV></DIV>
<DIV style="WIDTH: 759px; HEIGHT: 79px">
<TABLE height=87 cellSpacing=0 cellPadding=0 width=729 border=0>

  <TR>
    <TD vAlign=top width=50>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;</P></TD>
    <TD vAlign=top width=679>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P</U> <U>Eligible
      Convertible Bonds and S&amp;P Eligible Convertible Preferred Stock</U>.
      The Discount Factors applied to S&amp;P Eligible Convertible Bonds and
      S&amp;P Eligible Convertible Preferred Stock shall be determined by
      reference to the rating on such asset in accordance with the table set
      forth below. </P></TD></TR></TABLE></DIV>
<DIV class=c788 style="WIDTH: 731px; HEIGHT: 182px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="278" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD align="center" width="117">
      <P class=c785>Rating</P></TD>
    <TD align="center" width="158">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;AAA</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.5888</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;AA</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.6539</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;A</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.7191</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;BBB</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.7843</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;BB</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.8494</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;B</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.9146</P></TD></TR>
  <TR>
    <TD align="center" width="117">
      <P class=c789>&nbsp;&nbsp;CCC</P></TD>
    <TD align="center" width="158">
      <P class=c787>1.9798</P></TD></TR></TABLE></center></div>

</DIV>
<DIV style="WIDTH: 753px; HEIGHT: 471px">
<TABLE height=147 cellSpacing=0 cellPadding=0 width=731 border=0>

  <TR>
    <TD vAlign=top width=53 height=45>&nbsp;</TD>
    <TD vAlign=top width=678 colSpan=2 height=45>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P Eligible Short-Term
      Money Market Instruments and Short Term Money Market
      Instruments.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=45>&nbsp;</TD>
    <TD vAlign=top width=35 height=45>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"></P></TD>
    <TD vAlign=top width=904 height=45>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors set forth below
      shall be deemed to supersede and replace the Discount Factors for Short
      Term Money Market Instruments set forth in the Articles
      Supplementary.&nbsp;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53
      height=57>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    </TD>
    <TD vAlign=top width=56 height=57>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=622 height=57>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The Discount Factors applied to S&amp;P Eligible Short-Term Money Market
      Instruments and Short Term Money Market Instruments shall be determined by
      reference to the rating of such assets with reference to the remaining
      term to maturity of such assets in accordance with the table set forth
      below.</P></TD></TR></TABLE>
<DIV class=c788 style="WIDTH: 732px; HEIGHT: 248px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="86%" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR height=6>
    <TD height=6>
      <P class=c785>&nbsp; Type of Instrument and Remaining Term to Maturity</P></TD>
    <TD height=6 align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD>
      <P class=c789>&nbsp;&nbsp;Cash and demand deposits in an A-1+ rated
      institution</P></TD>
    <TD align="center">
      <P class=c787>1.0000</P></TD></TR>
  <TR>
    <TD>
      <P class=c784>&nbsp;&nbsp;S&amp;P Eligible Short-Term Money Market
      Instruments with next&#8209;day maturity<BR>&nbsp;&nbsp;invested in institutions
      rated 'A-1+'</P></TD>
    <TD align="center">
      <P class=c787>1.0000</P></TD></TR>
  <TR>
    <TD>
      <P class=c789>&nbsp;&nbsp;Commercial Paper rated A-1+ or A-1, if less than
      30 days maturity and held to<BR>&nbsp; maturity</P></TD>
    <TD align="center">
      <P class=c787>1.0000</P></TD></TR>
  <TR>
    <TD>
      <P class=c789>&nbsp;&nbsp;Commercial Paper rated A-2, with a maturity of
      between one and 360 days</P></TD>
    <TD align="center">
      <P class=c787>1.6500</P></TD></TR>
  <TR>
    <TD>
      <P class=c784>&nbsp;&nbsp;All other S&amp;P Eligible Short-Term Money
      Market Instruments with a <br>
&nbsp; maturity of&nbsp;180 days or
    less</P></TD>
    <TD align="center">
      <P class=c787>1.0520</P></TD></TR>
  <TR>
    <TD>
      <P class=c784>&nbsp;&nbsp;All other S&amp;P Eligible Short-Term Money
      Market Instruments with a <br>
&nbsp; maturity of&nbsp; between 181 and 360
      days</P></TD>
    <TD align="center">
      <P class=c787>1.1630</P></TD></TR></TABLE></center></div>

</DIV></DIV>
<DIV style="WIDTH: 761px; HEIGHT: 186px">
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=186
cellSpacing=0 cellPadding=0 width=732 border=0>

  <TR>
    <TD vAlign=top width=73 height=36>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=659 colSpan=2 height=36>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P Eligible U.S.
      Treasury Securities and U.S. Government Obligations.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=73 height=53>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=1 height=53>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"></P></TD>
    <TD vAlign=top width=858 height=53>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors set forth herein
      shall be deemed to supersede and replace the Discount Factors for U.S.
      Government Obligations set forth in the Articles
      Supplementary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=73 height=97>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=55 height=97>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=604 height=97>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraphs (iii) and (iv)
      below, the Discount Factors applied to S&amp;P Eligible U.S. Treasury
      Securities and U.S. Government Obligations shall be determined by
      reference to the remaining term to maturity of such assets in accordance
      with the table set forth below.</P></TD></TR></TABLE></DIV>
<DIV class=c788 style="WIDTH: 730px; HEIGHT: 128px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="71%" border=1
style="border-collapse: collapse" bordercolor="#111111" height="118">

  <TR>
    <TD height="19">
      <P class=c785>&nbsp; Remaining Term to Maturity</P></TD>
    <TD height="19" align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD height="19">
      <P class=c786>&nbsp;&nbsp;One year or less.</P></TD>
    <TD height="19" align="center">
      <P class=c787>1.0284</P></TD></TR>
  <TR>
    <TD height="19">
      <P class=c786>&nbsp;&nbsp;More than one year but not more than 2
      years.&nbsp;</P></TD>
    <TD height="19" align="center">
      <P class=c787>1.0541</P></TD></TR>
  <TR>
    <TD height="19">
      <P class=c786>&nbsp;&nbsp;More than 2 years but not more than 5
    years.</P></TD>
    <TD height="19" align="center">
      <P class=c787>1.1335</P></TD></TR>
  <TR>
    <TD height="19">
      <P class=c786>&nbsp;&nbsp;More than 5 years but not more than 10
    years.</P></TD>
    <TD height="19" align="center">
      <P class=c787>1.2284</P></TD></TR>
  <TR>
    <TD height="18">
      <P class=c786>&nbsp;&nbsp;More than 10 years but not more than 30
      years.</P></TD>
    <TD height="18" align="center">
      <P class=c787>1.4180</P></TD></TR></TABLE></center></div>

</DIV>
<DIV style="WIDTH: 766px; HEIGHT: 363px">
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=420
cellSpacing=0 cellPadding=0 width=732 border=0>

  <TR>
    <TD vAlign=top width=93 height=113>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;</P></TD>
    <TD vAlign=top width=33 height=113>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;</P></TD>
    <TD vAlign=top width=1085 height=113>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor applied to an
      interest-only Treasury Strip shall be the Discount Factor that is set
      forth in the table in paragraph (ii) above for an S&amp;P Eligible U.S.
      Treasury Security having a remaining term to maturity that is one category
      greater than the remaining term to maturity of such interest-only Treasury
      Stirp.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=60 height=91>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=66 height=91>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=973 height=91>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor applied to a
      principal-only Treasury Strip shall be the Discount Factor that is set
      forth in the table in paragraph (ii) above for an S&amp;P Eligible U.S.
      Treasury Security having a remaining term to maturity that is two
      categories greater than the remaining term to maturity of such
      principal-only Treasury Strip.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=51>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=2 height=51>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P Eligible U.S. Agency
      Mortgage Collateral, GNMA Certificates, FHLMC Certificates, FNMA
      Certificates, FHLMC Multifamily Securities and GNMA Graduated Payment
      Securities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=69>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=73 height=69>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=730 height=69>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors set forth herein
      shall be deemed to supersede and replace the Discount Factors for GNMA
      Certificates, FHLMC Certificates, FNMA Certificates, FHLMC Multifamily
      Securities and GNMA Graduated Payment Securities set forth in the Articles
      Supplementary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=96>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=73 height=96>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=606 height=96>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraphs (iii), (iv) and
      (v) below, the Discount Factors applied to S&amp;P Eligible U.S. Agency
      Mortgage Collateral, GNMA Certificates, FHLMC Certificates, FNMA
      Certificates, FHLMC Multifamily Securities and GNMA Graduated Payment
      Securities shall be determined by reference to the type and term to
      maturity of such assets in accordance with the table set forth
    below.</P></TD></TR></TABLE></DIV>
<DIV class=c788 style="WIDTH: 733px; HEIGHT: 149px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="63%" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD align="left">
      <P class=c785>&nbsp; Type of Asset and Term to Maturity</P></TD>
    <TD align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;15-year Fixed</P></TD>
    <TD align="center">
      <P class=c787>1.407</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;30-year Fixed</P></TD>
    <TD align="center">
      <P class=c787>1.442</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;1/1 ARMs</P></TD>
    <TD align="center">
      <P class=c787>1.306</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;3/1 ARMs</P></TD>
    <TD align="center">
      <P class=c787>1.313</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;5/1 ARMs</P></TD>
    <TD align="center">
      <P class=c787>1.319</P></TD></TR>
  <TR>
    <TD align="left">
      <P class=c789>&nbsp;&nbsp;10/1 ARMs</P></TD>
    <TD align="center">
      <P class=c787>1.322</P></TD></TR></TABLE></center></div>

</DIV>
<DIV>
<TABLE height=311 cellSpacing=0 cellPadding=0 width=731 border=0>

  <TR>
    <TD vAlign=top width=53 height=67>
      <P class=c779><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=48 height=67>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;</P></TD>
    <TD vAlign=top width=678 height=67>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for GNMA Graduated
      Payment Securities shall be the applicable Discount Factor set forth in
      the table in paragraph (ii) above increased by 0.20.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=68>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=48 height=68>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=678 height=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for FNMA
      Certificates backed by multifamily adjustable rate mortgages pegged to the
      11<SUP>th</SUP> District Cost of Funds Index shall be the applicable
      Discount Factor set forth in the table in paragraph (ii) above increased
      by 0.05.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=49>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=726 colSpan=2 height=49>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S&amp;P Eligible Mortgage
      Pass-Through Certificates and Conventional Mortgage Pass-Through
      Certificates.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=54>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=48 height=54>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=678 height=54>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors set forth herein
      shall be deemed to supersede and replace the Discount Factors for
      Conventional Mortgage Pass-Through Certificates set forth in the Articles
      Supplementary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=53 height=73>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=48 height=73>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=678 height=73>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to paragraph (iii) below, the
      Discount Factors applied to S&amp;P Eligible Mortgage Pass-Through
      Certificates and Conventional Mortgage Pass-Through Certificates shall be
      determined by reference to the type and term to maturity of such assets in
      accordance with the table set forth below.</P></TD></TR></TABLE></DIV>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="63%" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=top>
      <P class=c785>&nbsp; Type of Asset and Term to Maturity</P></TD>
    <TD vAlign=top align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;15-year Fixed</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.432</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;30-year Fixed</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.467</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;1/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.355</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;3/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.361</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;5/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.367</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;10/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.370</P></TD></TR></TABLE></center></div>

</DIV>
<DIV>
<TABLE height=170 cellSpacing=0 cellPadding=0 width=732 border=0>

  <TR>
    <TD vAlign=top width=34 height=79>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR><BR>&nbsp;</P></TD>
    <TD vAlign=top width=48 height=79>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;</P></TD>
    <TD vAlign=top width=650 height=79>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factors applied to
      S&amp;P Eligible Mortgage Pass-Through Certificates and Conventional
      Mortgage Pass-Through Certificates backed by pools of convertible ARMs
      shall be the applicable Discount Factor set forth in the table in
      paragraph (ii) above increased by 0.05.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=91>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=683 colSpan=2 height=91>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P Eligible
      Fixed-Rate and Adjustable-Rate Mortgages (Conventional/FHA/VA Mortgages
      and Whole Loans)</U>. The Discount Factors applied to S&amp;P Eligible
      Fixed-Rate and Adjustable-Rate Mortgages shall be determined by reference
      to the type and term to maturity of such assets in accordance with the
      table set forth below.</P></TD></TR></TABLE>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="65%" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=top>&nbsp; Type of Asset and Term to Maturity</TD>
    <TD vAlign=top align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;15-year Fixed</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.460</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;30-year Fixed</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.495</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;1/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.409</P></TD></TR>
  <TR>
    <TD>
      <P class=c786>&nbsp;&nbsp;3/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.420</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;5/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.421</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c786>&nbsp;&nbsp;10/1 ARMs</P></TD>
    <TD vAlign=top align="center">
      <P class=c787>1.424</P></TD></TR></TABLE></center></div>

</DIV></DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=730 border=0>

  <TR>
    <TD vAlign=top width=48>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=682>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P</U> <U>Eligible
      Collateralized Mortgage Obligations and Multiclass REMICs issued by FNMA
      and FHLMC</U>. The Discount Factor applied to S&amp;P Eligible
      Collateralized Mortgage Obligations and Multiclass REMICs issued by FNMA
      and FHLMC shall be determined by reference to the weighted average life of
      such assets in accordance with the table set forth
  below.<BR>&nbsp;</P></TD></TR></TABLE></DIV>&nbsp;
<DIV class=c788 style="WIDTH: 733px; HEIGHT: 65px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width="76%" border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD>
      <P class=c785>&nbsp; Weighted Average Life</P></TD>
    <TD align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD>
      <P class=c786>&nbsp;&nbsp;Less than 5 years</P></TD>
    <TD align="center">
      <P class=c787>1.40</P></TD></TR>
  <TR>
    <TD>
      <P class=c786>&nbsp;&nbsp;Greater than or equal to 5 years and less than
      10 years</P></TD>
    <TD align="center">
      <P class=c787>1.50</P></TD></TR></TABLE></center></div>

</DIV>
<DIV style="WIDTH: 738px; HEIGHT: 278px">
<P class=c780>&nbsp;</P>
<TABLE cellSpacing=0 cellPadding=0 width=729 border=0>

  <TR>
    <TD vAlign=top width=48>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=681>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P</U> <U>Eligible
      Unsecured Corporate Debt Obligations of FNMA, FHLMC, FHLB, Farm Credit
      System, and Sallie Mae</U>. The Discount Factors applied to S&amp;P
      Eligible Unsecured Corporate Debt Obligations of FNMA, FHLMC, FHLB, Farm
      Credit System, and Sallie Mae shall be determined by reference to the term
      to maturity of such assets in accordance with the table set forth
      below.<br>
&nbsp;</P></TD></TR></TABLE>
<DIV class=c788 style="WIDTH: 761px; HEIGHT: 102px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=1
style="border-collapse: collapse" bordercolor="#111111" height="99">

  <TR>
    <TD vAlign=top height="19">
      <P class=c785>&nbsp; Term to Maturity</P></TD>
    <TD vAlign=top height="19" align="center">
      <P class=c785>Discount Factor</P></TD></TR>
  <TR>
    <TD vAlign=top height="19">
      <P class=c786>&nbsp;&nbsp;Less than one year</P></TD>
    <TD vAlign=top height="19" align="center">
      <P class=c787>1.18</P></TD></TR>
  <TR>
    <TD vAlign=top height="19">
      <P class=c786>&nbsp;&nbsp;Greater than or equal to one year and less than
      5 years</P></TD>
    <TD vAlign=top height="19" align="center">
      <P class=c787>1.38</P></TD></TR>
  <TR>
    <TD vAlign=top height="19">
      <P class=c786>&nbsp;&nbsp;Greater than or equal to 5 years and less than
      10 years</P></TD>
    <TD vAlign=top height="19" align="center">
      <P class=c787>1.45</P></TD></TR>
  <TR>
    <TD vAlign=top height="19">
      <P class=c786>&nbsp;&nbsp;Greater than or equal to 10 years and less than
      15 years</P></TD>
    <TD vAlign=top height="19" align="center">
      <P class=c787>1.50</P></TD></TR></TABLE></center></div>

</DIV></DIV>
<DIV>
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height=5823
cellSpacing=0 cellPadding=0 width=728 border=0>

  <TR>
    <TD width=49 height=58>
      <P class=c779></P></TD>
    <TD width=679 colSpan=5 height=58>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>S&amp;P</U> <U>Eligible
      FHA-Insured Multifamily Loans</U>. The Discount Factor applied to S&amp;P
      Eligible FHA-Insured Multifamily Loans shall be 1.90.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=26 height=32>
      <P class=c779></P></TD>
    <TD width=702 colSpan=5 height=32>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=90 colSpan=3 height=58>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=58>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor applied to
      receivables relating to the sale of Eligible Portfolio Property due within
      five Business Days of a Valuation Date is 1.00.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=90 colSpan=3 height=72>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=72>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
      Discount Factor applied to receivables relating to the sale of Eligible
      Portfolio Property that are due in more than five Business Days of a
      Valuation Date shall be the Discount Rate used for such Eligible Portfolio
      Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=728 colSpan=6 height=32>
      <P class=c782
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <b>SECTION&nbsp; 9.04. <i>Moody's Eligible Asset Definitions</i>.&nbsp;</b></P></TD></TR>
  <TR>
    <TD vAlign=top width=47 height=57>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=681 colSpan=5 height=57>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Additional
      Definitions</U>. The following capitalized terms shall have the following
      meanings for purposes of this Section 9.04, whether used in the singular
      or plural:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=32>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=32>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Asset-Backed and Mortgage-Backed Securities" means:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=114>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=114>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=114>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      asset-backed securities if (A) such securities are rated at least Aa3 by
      Moody's or at least AA- by S&amp;P or Fitch, (B) the securities are part
      of an issue that is $250 million or greater, or the issuer of such
      securities has a total of $500 million or greater of asset-backed
      securities outstanding at the time of purchase of the securities by the
      Corporation and (C) the expected average life of the securities is not
      greater than 4 years;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=116>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=116>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=116>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CMOs,
      including CMOs with interest rates that float at a multiple of the change
      in the underlying index according to a pre-set formula; <I>provided</I>,
      <I>however</I>, that any CMO held by the Corporation (A) has been rated
      Aaa by Moody's or AAA by S&amp;P or Fitch, (B) does not have a coupon
      which floats inversely, (C) is not portioned as an interest-only or
      principal-only strip and (D) is part of an issuance that had an original
      issue size of at least $100 million;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=136>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=136>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=136>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PACs and
      TACs; <I>provided</I>, <I>however</I>, that such PACs or TACs are (A)
      backed by certificates of either the FNMA, the GNMA or the FHLMC
      representing ownership in single-family first lien mortgage loans with
      original terms of 30 years, (B) part of an issuance that had an original
      issue size of at least $10 million, (C) part of PAC or TAC classes that
      have payment priority over other PAC or TAC classes, (D) if TACs, TACs
      that do not support PAC classes, and (E) if TACs, not considered reverse
      TACs (i.e., do not protect against extension risk);<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=135>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=135>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=135>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      consolidated senior debt obligations of FHLBs, senior long-term debt of
      the FNMA, and consolidated system wide bonds and FCS Financial Assistance
      Corporation Bonds of FFCBs (collectively, "FHLB, FNMA and FFCB
      Debentures"); <I>provided</I>, <I>however</I>, that such FHLB, FNMA and
      FFCB Debentures are (A) direct issuance corporate debt rated Aaa by
      Moody's, (B) senior debt obligations backed by the FHLBs, FFCBs or FNMA
      and (C) part of an issue entirely denominated in U.S.
      dollars;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=154>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=154>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=154>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; mortgage
      pass-throughs rated at least Aa by Moody's and pass-throughs issued prior
      to 1987 (if rated AA by S&amp;P and based on fixed-rate mortgage loans) by
      Travelers Mortgage Services, Citicorp Homeowners, Citibank, N.A., Sears
      Mortgage Security or RFC - Salomon Brothers Mortgage Securities, Inc.;
      <I>provided</I>, <I>however</I>, that (A) certificates must evidence a
      proportional, undivided interest in specified pools of fixed or adjustable
      rate mortgage loans, secured by a valid first lien, on one- to four-family
      residential properties and (B) the securities are publicly registered (not
      issued by FNMA, GNMA or FHLMC);<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=152>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=152>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=152>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      private-placement mortgage pass-throughs; <I>provided</I>, <I>however</I>,
      that (A) certificates represent a proportional undivided interest in
      specified pools of fixed-rate mortgage loans, secured by a valid first
      lien, on one- to four-family residential properties, (B) documentation is
      held by a trustee or independent custodian, (C) pools of mortgage loans
      are serviced by servicers that have been approved by the FNMA or the FHLMC
      and funds shall be advanced to meet deficiencies to the extent provided in
      the pooling and servicing agreements creating such certificates, and (D)
      pools have been rated Aa or better by Moody's; and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=616>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=41 colSpan=2 height=616>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=638 colSpan=3 height=616>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; whole
      loans (e.g., direct investments in mortgages); <I>provided</I>,
      <I>however</I>, that (A) at least 65% of such loans (1) have seasoning of
      no less than 6 months, (2) are secured by single-family detached
      residences, (3) are owner-occupied primary residences, (4) are secured by
      a first-lien, fully-documented mortgage, (5) are neither currently
      delinquent (30 days or more) nor delinquent during the preceding year, (6)
      have loan-to-value ratios of 80% or below, (7) carry normal hazard
      insurance and title insurance, as well as special hazard insurance, if
      applicable, (8) have original terms to maturity not greater than 30 years,
      with at least one year remaining to maturity, (9) have a minimum of
      $10,000 remaining principal balance, (10) for loans underwritten after
      January 1, 1978, FNMA and/or FHLMC forms are used for fixed-rate loans,
      and (11) such loans are whole loans and not participations; (B) for loans
      that do not satisfy the requirements set forth in the foregoing clause
      (A), (1) non-owner occupied properties represent no greater than 15% of
      the aggregate of either the adjustable-rate pool or the fixed-rate pool,
      (2) multi-family properties (those with five or more units) represent no
      greater than 15% of the aggregate of either the adjustable-rate pool or
      the fixed-rate pool, (3) condominiums represent no greater than 10% of the
      aggregate of either the adjustable-rate pool or the fixed-rate pool, and
      any condominium project must be 80% occupied at the time the loan is
      originated, (4) properties with loan-to-value ratios exceeding 80%
      represent no greater than 25% of the aggregate of either the
      adjustable-rate pool or the fixed-rate pool and the portion of the
      mortgage on any such property that exceeds a loan-to-value ratio of 80% is
      insured with Primary Mortgage Insurance from an insurer rated at least
      Baa3 by Moody's and (5) loan balances in excess of the current FHLMC limit
      plus $75,000 represent no greater than 25% of the aggregate of either the
      adjustable-rate pool or the fixed-rate pool, loan balances in excess of
      $350,000 represent no greater than 10% of the aggregate of either the
      adjustable-rate pool or the fixed-rate pool, and loan balances in excess
      of $1,000,000 represent no greater than 5% of the aggregate of either the
      adjustable-rate pool or the fixed-rate pool; (C) no greater than 5% of the
      pool of loans is concentrated in any one zip code; (D) the pool of loans
      contains at least 100 loans or $2 million in loans per servicer; (E) for
      ARMs, (1) any ARM is indexed to the National Cost of Funds index, the 11th
      District Cost of Funds index, the 1-year Treasury or the 6-month Treasury,
      (2) the margin over the given index is between 0.15% and 0.25% for either
      cost-of-funds index and between 0.175% and 0.325% for Treasuries, (3) the
      maximum yearly interest rate increase is 2%, (4) the maximum life-time
      interest rate increase is 6.25% and (5) ARMs may include Federal Housing
      Administration and Department of Veterans Affairs loans; and (F) for
      "teaser" loans, (1) the initial discount from the current ARM market rate
      is no greater than 2%, (2) the loan is underwritten at the market rate for
      ARMs, not the "teaser" rate, and (3) the loan is seasoned six months
      beyond the "teaser" period.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=81>&nbsp;</TD>
    <TD vAlign=top width=679 colSpan=5 height=81>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Bank
      Loans" means direct purchases of, assignments of, participations in and
      other interests in (i) any bank loan or (ii) any loan made by an
      investment bank, investment fund or other financial institution;
      <I>provided</I>, <I>however</I>, that such loan under this clause (ii) is
      similar to those typically made, syndicated, purchased or participated by
      a commercial bank or institutional loan investor in the ordinary course of
      business.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=49 height=73>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=73>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Cash Equivalents" means interest and dividends due on assets rated (i)
      Baa3 or higher by Moody's if the payment date is within five Business Days
      of the Valuation Date, (ii) A2 or higher if the payment date is within
      thirty days of the Valuation Date, and (iii) A1 or higher if the payment
      date is within the Moody's Exposure Period.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=414>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=414>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Common Stock" means common stocks (i) which (A) are traded on a National
      Securities Exchange or in the over-the-counter market, (B) if cash
      dividend paying, pay cash dividends in U.S. dollars and (C) may be sold
      without restriction by the Corporation; <I>provided</I>, <I>however</I>,
      that (1) common stock which, while Eligible Portfolio Property owned by
      the Corporation, ceases paying any regular cash dividend will no longer be
      considered Eligible Portfolio Property until 71 days after the date of the
      announcement of such cessation, unless the issuer of the common stock has
      senior debt securities rated at least A3 by Moody's and (2) the aggregate
      Market Value of the Corporation's holdings of the common stock of any
      issuer in excess of 4% in the case of utility common stock and 6% in the
      case of non-utility common stock of the aggregate Market Value of the
      Corporation's holdings shall not be Eligible Portfolio Property, (ii)
      which are securities denominated in any currency other than the U.S.
      dollar or securities of issuers formed under the laws of jurisdictions
      other than the United States, its states and the District of Columbia for
      which there are dollar-denominated ADRs or their equivalents which are
      traded in the United States on a National Securities Exchange or in the
      over-the-counter market and are issued by banks formed under the laws of
      the United States, its states or the District of Columbia or (iii) which
      are securities of issuers formed under the laws of jurisdictions other
      than the United States (and in existence for at least five years) for
      which no ADRs are traded; <I>provided</I>, <I>however</I>, that the
      aggregate Market Value of the Corporation's holdings of securities
      denominated in currencies other than the U.S. dollar and ADRs in excess of
      (A) 6% of the aggregate Market Value of the outstanding shares of common
      stock of such issuer thereof or (B) 10% of the aggregate Market Value of
      all of the Corporation's Eligible Portfolio Property with respect to
      issuers formed under the laws of any single such non-U.S. jurisdiction
      other than Australia, Belgium, Canada, Denmark, Finland, France, Germany,
      Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Spain,
      Sweden, Switzerland and the United Kingdom, shall not be Eligible
      Portfolio Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=456>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=456>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Corporate Debt Securities" means corporate debt securities (including
      convertible preferred securities) if (i) such securities are rated B3 or
      higher by Moody's; (ii) such securities provide for the periodic payment
      of interest in cash in U.S. dollars or euros, except that such securities
      that do not pay interest in U.S. dollars or euros shall be considered
      Eligible Portfolio Property if they are rated by Moody's or S&amp;P or
      Fitch; (iii) in the case of corporate debt securities which provide for
      conversion or exchange into equity capital at some time over their lives,
      the issuer of such securities is rated at least B3 by Moody's; (iv) such
      securities have been registered under the Securities Act, or are
      restricted as to resale under federal securities laws but are eligible for
      resale pursuant to Rule 144A under the Securities Act, as determined by
      the Corporation's investment manager or portfolio manager acting pursuant
      to procedures approved by the Board of Directors, except that such
      securities that are not subject to U.S. federal securities laws shall be
      considered Eligible Portfolio Property if they are publicly traded; and
      (v) such securities are not subject to extended settlement. In addition,
      if any issue of corporate debt securities is rated Ba1 or below, no more
      than 10% of the original amount of such issue may constitute Eligible
      Portfolio Property. Notwithstanding the foregoing, (i) corporate debt
      securities not rated at least B3 by Moody's or not rated by Moody's shall
      be considered to be Eligible Portfolio Property only to the extent the
      Market Value of such corporate debt securities does not exceed 10% of the
      aggregate Market Value of all Eligible Portfolio Property;
      <I>provided</I>, <I>however</I>, that if the Market Value of such
      corporate debt securities exceeds 10% of the aggregate Market Value of all
      Eligible Portfolio Property, a portion of such corporate debt securities
      (selected by the Corporation) shall not be considered Eligible Portfolio
      Property, so that the Market Value of such corporate debt securities
      (excluding such portion) does not exceed 10% of the aggregate Market Value
      of all Eligible Portfolio Property; and (ii) corporate debt securities
      rated by neither Moody's nor S&amp;P nor Fitch shall be considered to be
      Eligible Portfolio Property only to the extent such securities are issued
      by entities which (A) have not filed for bankruptcy within the past three
      years, (B) are current on all principal and interest in their fixed income
      obligations, (C) are current on all preferred stock dividends, and (D)
      possess a current, unqualified auditor's report without qualified,
      explanatory language.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=58>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=58>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "DRD" means Preferred Stock whose dividends are eligible for the dividends
      received deduction under the Code.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=37>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=37>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "FFCBs" means Federal Farm Credit Banks.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=38>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "FHLBs" means Federal Home Loan Banks.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=135>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=135>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Financial Contracts" means financial contracts, as such term is defined
      in Section 3(c)(2)(B)(ii) of the 1940 Act, not otherwise provided for in
      the definition of "Other Permitted Securities" for purposes of determining
      maintenance of the "Moody's RP Basic Maintenance Amount," but only upon
      receipt by the Corporation of a letter from Moody's specifying any
      conditions on including such financial contract in Eligible Portfolio
      Property and assuring the Corporation that including such financial
      contract in the manner so specified would not affect the credit rating
      assigned by Moody's to the RP.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=38>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Lien" means any material lien, mortgage, pledge, security interest or
      security agreement of any kind.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=152>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=152>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Moody's Eligible Short Term Money Market Instruments" means short term
      money market instruments if (i) such securities are rated at least P-1,
      (ii) in the case of demand deposits, time deposits and overnight funds,
      the supporting entity is rated at least A2, or (iii) in all other cases,
      the supporting entity (A) is rated A2 and the security matures within one
      month, (B) is rated A1 and the security matures within three months or (C)
      is rated at least Aa3 and the security matures within six months;
      <I>provided</I>, <I>however</I>, that for purposes of this definition,
      such instruments (other than commercial paper rated by S&amp;P and not
      rated by Moody's) need not meet any otherwise applicable S&amp;P rating
      criteria.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=57>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Moody's Exposure Period" means the period commencing on a given Valuation
      Date and ending 49 days thereafter.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD width=49 height=95>
      <P>&nbsp;</P></TD>
    <TD vAlign=top width=679 colSpan=5 height=95>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Moody's Industry Classification" means, for purposes of determining which
      securities shall be included as "Other Permitted Securities" for purposes
      of determining maintenance of the "Moody's RP Basic Maintenance Amount",
      each of the following industry classifications (or such other
      classifications as Moody's may from time to time approve for application
      to the RP):<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=59>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=59>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;1.</P></TD>
    <TD vAlign=top width=25 height=59>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=572 height=59>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Aerospace and
      Defense: Major Contractor, Subsystems, Research, Aircraft Manufacturing,
      Arms, and Ammunition<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=58>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=58>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;2.</P></TD>
    <TD vAlign=top width=25 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Automobile:
      Automobile Equipment, Auto-Manufacturing, Auto Parts Manufacturing,
      Personal Use Trailers, Motor Homes, Dealers<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=57>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;3.</P></TD>
    <TD vAlign=top width=25 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Banking: Bank
      Holding, Savings and Loans, Consumer Credit, Small Loan, Agency,
      Factoring, Receivables<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=96>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=96>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;4.</P></TD>
    <TD vAlign=top width=25 height=96>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=96>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Beverage, Food
      and Tobacco: Beer and Ale, Distillers, Wines and Liquors, Distributors,
      Soft Drink Syrup, Bottlers, Bakery, Mill Sugar, Canned Foods, Corn
      Refiners, Dairy Products, Meat Products, Poultry Products, Snacks,
      Packaged Foods, Candy, Gum, Seafood, Frozen Food, Cigarettes, Cigars,
      Leaf/Snuff, Vegetable Oil<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=75>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=75>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;5.</P></TD>
    <TD vAlign=top width=25 height=75>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=75>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Buildings and
      Real Estate: Brick, Cement, Climate Controls, Contracting, Engineering,
      Construction, Hardware, Forest Products (building-related only), Plumbing,
      Roofing, Wallboard, Real Estate, Real Estate Development, REITs, Land
      Development<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=58>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=58>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;6.</P></TD>
    <TD vAlign=top width=25 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Chemicals,
      Plastics and Rubber: Chemicals (non-agricultural), Industrial Gases,
      Sulfur, Plastics, Plastic Products, Abrasives, Coatings, Paints, Varnish,
      Fabricating<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=57>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;7.</P></TD>
    <TD vAlign=top width=25 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Containers,
      Packaging and Glass: Glass, Fiberglass, Containers made of: Glass, Metal,
      Paper, Plastic, Wood or Fiberglass<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=57>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;8.</P></TD>
    <TD vAlign=top width=25 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Personal and
      Non-Durable Consumer Products (Manufacturing Only): Soaps, Perfumes,
      Cosmetics, Toiletries, Cleaning Supplies, School
  Supplies<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;9.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Diversified/Conglomerate
      Manufacturing<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=38>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;10.</P></TD>
    <TD vAlign=top width=25 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=38>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Diversified/Conglomerate
      Service<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=41>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=41>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;11.</P></TD>
    <TD vAlign=top width=25 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Diversified
      Natural Resources, Precious Metals and Minerals: Fabricating,
      Distribution<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;12.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Ecological:
      Pollution Control, Waste Removal, Waste Treatment and Waste
      Disposal<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=76>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=76>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;13.</P></TD>
    <TD vAlign=top width=25 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Electronics:
      Computer Hardware, Electric Equipment, Components, Controllers, Motors,
      Household Appliances, Information Service Communicating Systems, Radios,
      TVs, Tape Machines, Speakers, Printers, Drivers,
    Technology<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=38>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;14.</P></TD>
    <TD vAlign=top width=25 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Finance:
      Investment Brokerage, Leasing, Syndication, Securities<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=57>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;15.</P></TD>
    <TD vAlign=top width=25 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Farming and
      Agriculture: Livestock, Grains, Produce, Agriculture Chemicals,
      Agricultural Equipment, Fertilizers<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;16.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Grocery:
      Grocery Stores, Convenience Food Stores<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=59>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=59>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;17.</P></TD>
    <TD vAlign=top width=25 height=59>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=59>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Healthcare,
      Education and Childcare: Ethical Drugs, Proprietary Drugs, Research,
      Health Care Centers, Nursing Homes, HMOs, Hospitals, Hospital Supplies,
      Medical Equipment<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=58>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=58>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;18.</P></TD>
    <TD vAlign=top width=25 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Home and Office
      Furnishings, House wares, and Durable Consumer Products: Carpets, Floor
      Coverings, Furniture, Cooking, Ranges<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;19.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Hotels, Motels,
      Inns and Gaming<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;20.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Insurance:
      Life, Property and Casualty, Broker, Agent, Surety<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=97>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=97>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;21.</P></TD>
    <TD vAlign=top width=25 height=97>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=97>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Leisure,
      Amusement, Motion Pictures, Entertainment: Boating, Bowling, Billiards,
      Musical Instruments, Fishing, Photo Equipment, Records, Tapes, Sports,
      Outdoor Equipment (Camping), Tourism, Resorts, Games, Toy Manufacturing,
      Motion Picture Production Theaters, Motion Picture
      Distribution<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=58>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=58>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;22.</P></TD>
    <TD vAlign=top width=25 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=58>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Machinery
      (Non-Agricultural, Non-Construction, Non-Electronic): Industrial, Machine
      Tools, and Steam Generators<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=77>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=77>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;23.</P></TD>
    <TD vAlign=top width=25 height=77>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=77>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Mining, Steel,
      Iron and Non-Precious Metals: Coal, Copper, Lead, Uranium, Zinc, Aluminum,
      Stainless Steel, Integrated Steel, Ore Production, Refractories, Steel
      Mill Machinery, Mini-Mills, Fabricating, Distribution and Sales of the
      foregoing<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;24.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Oil and Gas:
      Crude Producer, Retailer, Well Supply, Service and
    Drilling<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=76>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=76>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;25.</P></TD>
    <TD vAlign=top width=25 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Printing,
      Publishing, and Broadcasting: Graphic Arts, Paper, Paper Products,
      Business Forms, Magazines, Books, Periodicals, Newspapers, Textbooks,
      Radio, T.V., Cable Broadcasting Equipment<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=76>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=76>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;26.</P></TD>
    <TD vAlign=top width=25 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=76>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Cargo
      Transport: Rail, Shipping, Railroads, Rail-car Builders, Ship Builders,
      Containers, Container Builders, Parts, Overnight Mail, Trucking, Truck
      Manufacturing, Trailer Manufacturing, Air Cargo,
  Transport<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=38>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;27.</P></TD>
    <TD vAlign=top width=25 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Retail Stores:
      Apparel, Toy, Variety, Drugs, Department, Mail Order Catalog,
      Showroom<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=57>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=57>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;28.</P></TD>
    <TD vAlign=top width=25 height=57>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=57>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Telecommunications: Local,
      Long Distance, Independent, Telephone, Telegraph, Satellite, Equipment,
      Research, Cellular<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=41>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=41>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;29.</P></TD>
    <TD vAlign=top width=25 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Textiles and
      Leather: Producer, Synthetic Fiber, Apparel Manufacturer, Leather
      Shoes<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=39>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=39>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;30.</P></TD>
    <TD vAlign=top width=25 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=39>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Personal
      Transportation: Air, Bus, Rail, Car Rental<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=38>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=38>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;31.</P></TD>
    <TD vAlign=top width=25 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=38>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Utilities:
      Electric, Water, Hydro Power, Gas<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=90 colSpan=3 height=41>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=41 height=41>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;32.</P></TD>
    <TD vAlign=top width=25 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=572 height=41>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Diversified
      Sovereigns: Semi-sovereigns, Canadian Provinces, Supra-national
      Agencies<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=99 colSpan=2 height=65>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=629 colSpan=4 height=65>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The Corporation shall use its discretion in determining which industry
      classification is applicable to a particular investment in consultation
      with the Independent Accountant and Moody's, to the extent the Corporation
      considers necessary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=99 colSpan=2 height=277>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=629 colSpan=4 height=277>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Office<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Industrial<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Mixed<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shopping
      Centers<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regional
      Malls<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Free
      Standing<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Apartments<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manufactured
      Homes<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Diversified<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      10.&nbsp;&nbsp;&nbsp;
      Lodging/Resorts<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      11.&nbsp;&nbsp;&nbsp; Health
      Care<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      12.&nbsp;&nbsp;&nbsp; Home
      Financing<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      13.&nbsp;&nbsp;&nbsp; Commercial
      Financing<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      14.&nbsp;&nbsp;&nbsp; Self Storage</P></TD></TR>
  <TR>
    <TD vAlign=top width=99 colSpan=2 height=75>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=629 colSpan=4 height=75>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      The Corporation shall use its discretion in determining which NAREIT
      industry classification is applicable to a particular investment in
      consultation with the Independent Accountant and/or Moody's, as
      necessary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=99 colSpan=2 height=112>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=629 colSpan=4 height=112>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Municipal Debt Obligation" means any municipal debt obligation with a
      term to maturity of greater than one year that (i) pays interest in cash,
      (ii) does not have a Moody's rating, as applicable, suspended by Moody's,
      and (iii) is part of an issue of municipal debt obligations of at least
      $5,000,000, except for municipal debt obligations rated below A by
      Moody's, in which case the minimum issue size is
    $10,000,000.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=99 colSpan=2 height=140>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=629 colSpan=4 height=140>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Municipal Obligation" means an obligation, including municipal bonds and
      short-term municipal obligations, with a term to maturity of one year or
      less, the interest from which is exempt from federal income taxes and that
      (i) pays interest in cash, (ii) does not have its Moody's rating suspended
      by Moody's, and (iii) is part of an issue of obligations of at least
      $10,000,000 (except for issues rated Aaa by Moody's, as provided in the
      chart below). Municipal Obligations in the Corporation's portfolio must be
      within the following diversification and issue size requirements in order
      to be included within Eligible Portfolio
Property:</P></TD></TR></TABLE></DIV>&nbsp;
<DIV class=c788 style="WIDTH: 708; HEIGHT: 285">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width=761 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD align=middle width=304>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR><U><BR><BR><BR><BR><BR><BR>Rating</U></P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;&nbsp;&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794><BR><BR><BR><BR><BR>Minimum<BR>Issue Size<BR><U>($
      Millions)</U></P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;&nbsp;&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>Maximum<BR>Permitted Amount<BR>of Municipal<BR>Obligations
      from<BR>any Single<BR>Underlying<BR>Obligor
      (1)<U><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(%)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>Maximum<BR>Permitted Amount<BR>of Municipal<BR>Obligations
      from<BR>any Single State<BR>(1) (3)<BR><U>&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(%)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;Aaa........................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>N/A</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>100</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>100</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;Aa..........................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>20</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>60</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;A............................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>40</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;Baa.........................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>6</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>20</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;Ba...........................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>4</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>12</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P
      class=c793>&nbsp;&nbsp;B.............................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>3</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>12</P></TD></TR>
  <TR>
    <TD align=right width=304>
      <P class=c793>&nbsp;&nbsp;Other
      (2)................................................</P></TD>
    <TD vAlign=top align=middle width=21>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=96>
      <P class=c794>10</P></TD>
    <TD vAlign=top align=middle width=14>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=153>
      <P class=c794>2</P></TD>
    <TD vAlign=top align=middle width=19>
      <P class=c794>&nbsp;</P></TD>
    <TD align=middle width=154>
      <P class=c794>12</P></TD></TR></TABLE></center></div>

</DIV> <BR
clear=all>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=736 border=0>

  <TR>
    <TD vAlign=top width=84>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">The referenced
      percentages represent maximum cumulative percentages of the aggregate
      Market Value of all Eligible Portfolio Property for the related rating
      category and each lower rating category.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c780>&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Municipal
      Obligations rated Caa or below by Moody's, or if not rated by Moody's
      rated the equivalent by S&amp;P or Fitch and unrated
      securities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c780>&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Territorial
      bonds (other than those issued by Puerto Rico and counted collectively)
      are each limited to 10% of the aggregate Market Value of all Eligible
      Portfolio Property. For diversification purposes, Puerto Rico shall be
      treated as a state.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c780>&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Not
      applicable.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">"NAREIT" means
      National Association of Real Estate Investment Trusts.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">"NRSRO" means a
      national recognized statistical ratings organization.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=68>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=584 colSpan=2>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">"PACs" means
      planned amortization class bonds.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;"Preferred Stock" means any preferred stock if (i) dividends
      on such preferred stock are cumulative, (ii) such securities provide for
      the periodic payment of dividends thereon in cash in U.S. dollars or euros
      and do not provide for conversion or exchange into, or have warrants
      attached entitling the holder to receive, equity capital at any time over
      the respective lives of such securities, (iii) the issuer of such
      preferred stock has common stock listed on either NYSE or AMEX, and (iv)
      such preferred stock has paid consistent cash dividends in U.S. dollars or
      euros over the last three years or has a minimum rating of A1 (if the
      issuer of such preferred stock has other preferred issues outstanding that
      have been paying dividends consistently for the last three years, then an
      issue of preferred stock without such a dividend history would also be
      eligible). In addition, such preferred stock must have the following
      diversification requirements:&nbsp; (i) the preferred stock issue must be
      greater than $50 million and (ii) the minimum holding by the Corporation
      of each issue of preferred stock is $500,000 and the maximum holding of
      preferred stock of each issue is 10% of the aggregate Market Value of all
      Eligible Portfolio Property. In addition, preferred stock issued by
      transportation companies shall not be considered Eligible Portfolio
      Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;"Receivable" means a receivable for Eligible Portfolio Property sold
      if the receivable is due within five Business Days of the Valuation Date
      and if the trades which generated such receivable are (i) settled through
      clearing house firms or (ii) (A) with counterparties having a Moody's
      long-term debt rating of at least Baa3 or (B) with counterparties having a
      Moody's Eligible Short Term Money Market Instrument rating of at least
      P-1.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;"Receivables for Municipal Obligations Sold" shall mean no
      more than the aggregate of the following: (i) the book value of
      receivables for Municipal Obligations sold as of or prior to such
      Valuation Date if such receivables are due within five Business Days of
      such Valuation Date, and if the trades which generated such receivables
      are (A) settled through clearinghouse firms with respect to which the
      Corporation has received prior written authorization from Moody's or (B)
      with counterparties having a Moody's long-term debt rating of at least
      Baa3, and (ii) the Discounted Value of Municipal Obligations sold as of or
      prior to such Valuation Date which generated receivables, if such
      receivables are due within the Moody's Exposure Period but do not comply
      with either of the conditions specified in (i)(A) or (i)(B)
      above.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Rule 2a-7 Money Market Funds" means investment companies registered under
      the 1940 Act that comply with Rule 2a-7 thereunder.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Senior Implied Rating" means an NRSRO's opinion of a corporate family's
      ability to&nbsp; honor its financial obligations and is assigned by the
      NRSRO to a corporate family as if it had (i) a single class of debt or
      (ii) a single consolidated legal entity structure.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Senior Loans" means senior Bank Loans.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "Structured Notes" means privately negotiated debt obligations where the
      principal and/or interest is determined by reference to the performance of
      a benchmark asset or market, such as selected securities or an index of
      securities, or the differential performance of two assets or markets, such
      as indices reflecting bonds.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "TACs" means targeted amortization class bonds.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "TRACERS" means traded custody receipts representing direct ownership in a
      portfolio of underlying securities.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "TRAINS" means Targeted Return Index Securities, which are trust
      certificates comprised of bonds that are chosen to track a particular
      index.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "U.S. Treasury Securities" means direct obligations of the United States
      Treasury that are entitled to the full faith and credit of the United
      States.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      "U.S. Treasury Strips" means securities based on U.S. Treasury Securities
      created through the Separate Trading of Registered Interest and Principal
      of Securities program.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modified
      Definitions</U>. For purposes of this Section 9.04, the following
      definitions as set forth in the Articles Supplementary are hereby modified
      as set forth below:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68 colSpan=2>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=584>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Asset-Backed and Mortgaged-Backed
      Securities, Bank Loans, Cash Equivalents, Common Stock, Corporate Debt
      Securities, Financial Contracts, Moody's Eligible Short Term Money Market
      Instruments, Municipal Debt Obligations, Municipal Obligations, Preferred
      Stock, Receivables, Receivables for Municipal Obligations Sold, Rule 144A
      Securities, Rule 2a-7 Money Market Funds, Senior Loans, Structured Notes,
      rated TRACERs, TRAINs, and U.S. Treasury Strips, having met the
      requirements set forth in the definition of "Other Permitted Securities"
      in the Articles Supplementary, shall be included as "Other Permitted
      Securities" for purposes of determining maintenance of the "Moody's RP
      Basic Maintenance Amount".<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=68 colSpan=2>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=584>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "Utility Bonds" set
      forth in the Articles Supplementary is hereby modified so as to mean any
      corporate debt securities of a public utility company which securities
      satisfy the requirements set forth in the definition of "Corporate Debt
      Securities" set forth in this Section 9.04.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=68 colSpan=2>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=584>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The definition of "Utility Stocks" set
      forth in the Articles Supplementary is hereby modified so as to mean any
      common stock issued by a public utility company, which common stock
      satisfies the requirements set forth in the definition of "Common Stock"
      set forth in this Section 9.04.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=652 colSpan=3>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Certain Conditions for
      Inclusion as Eligible Portfolio Property</U>.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=68 colSpan=2>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=584>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In order to be included as "Eligible
      Portfolio Property" for purposes of determining maintenance of the
      "Moody's RP Basic Maintenance Amount", securities must be issued by
      entities which (A) have not filed for bankruptcy within the past year, (B)
      are current on all principal and interest in their fixed income
      obligations, (C) are current on all preferred stock dividends and (D)
      possess a current, unqualified auditor's report without qualified,
      explanatory language.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=84>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=68 colSpan=2>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=584>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In order to be included as "Eligible
      Portfolio Property" for purposes of determining maintenance of the
      "Moody's RP Basic Maintenance Amount", Corporate Debt Securities and
      Preferred Stock held by the Corporation must be within the following
      diversification and issue size requirements:</P></TD></TR></TABLE></DIV>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=bottom>
      <P
      class=c794>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P class=c794><BR><BR><BR><U>Ratings</U> <SUP>1</SUP></P></TD>
    <TD vAlign=top>
      <P
      class=c794>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P class=c794 align="center">Maximum Permitted<BR>Amount from
      any<BR>&nbsp;&nbsp;|<U>Single Issuer</U> <SUP>2,3</SUP></P></TD>
    <TD vAlign=top>
      <P
      class=c794>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P class=c773 align="center"> Maximum Permitted<BR>Amount from
      any<BR>&nbsp; <U class=c797>Single Industry</U> <SUP>3,4</SUP></P></TD>
    <TD vAlign=top>
      <P
      class=c794>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P class=c794 align="center">Minimum Issue Size<BR><U>($ in million)</U>
    <SUP>5</SUP></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> Aaa</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      100 %</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      100 %</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      $100</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> Aa</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      20</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      60</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      100</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> A</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      10</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      50</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      100</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> Baa</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      6</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      50</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      100</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> Ba</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      4</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      12</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      50 <SUP>6</SUP></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> B1-B2</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      3</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      8</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      50 <SUP>6</SUP></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P> B3 or
      below</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      2</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      5</P></TD>
    <TD vAlign=top>
      <P class=c793>&nbsp;</P></TD>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      50 <SUP>6</SUP></P></TD></TR></TABLE></center></div>

</DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=736 border=0>

  <TR>
    <TD vAlign=top width=56>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=680>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 18px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;____________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <SUP>1</SUP> &nbsp;&nbsp;Refers to the Preferred Stock rating and senior
      debt rating of the portfolio
      holding.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>2</SUP>
      &nbsp;&nbsp;Companies subject to common ownership of 25% or more are
      considered as one
      issuer.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>3</SUP>
      &nbsp;&nbsp;Percentages represent a portion of the aggregate Market Value
      of Corporate
      Debt<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities
      and Preferred
      Stock.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>4</SUP>
      &nbsp;&nbsp;Industries are determined according to Moody's Industry
      Classifications, as
      defined<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      herein.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>5</SUP>
      &nbsp;&nbsp;Except for Preferred Stock, which has a minimum issue size of
      $50
      million.<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<SUP>6</SUP>
      &nbsp;&nbsp;Portfolio holdings from issues ranging from $50 million to
      $100 million shall be
      limited<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      to 20% of the aggregate Market Value of all Eligible Portfolio
      Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=736 colSpan=2>
      <P class=c784
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <B class=c777>SECTION&nbsp;9.05. <I>Discount Factors Supplied by
      Moody's</I>.</B> The following Discount Factors, having been supplied by
      Moody's, shall be "Discount Factors Supplied by Moody's" as defined in the
      Articles Supplementary for purposes of calculating the "Discounted Value"
      of the assets for purposes of determining maintenance of the "Moody's RP
      Basic Maintenance Amount". The Discount Factor applied to any asset
      constituting Eligible Portfolio Property that is not denominated in U.S.
      dollars shall be the product of (i) the Discount Factor applicable to such
      asset pursuant to this Section 9.05 and (ii) the Discount Factor
      determined by reference to the currency in which such asset is denominated
      in accordance with the table set forth in Section 9.05(s) (it being
      understood that if the currency in which such asset is denominated is not
      set forth in such table, the Corporation shall contact Moody's to obtain
      the applicable Discount Factor). Certain of the initial "Discount Factors
      Supplied by Moody's" set forth in the Articles Supplementary are hereby
      superseded and replaced, as described in greater particularity
      below.<BR>&nbsp;</P></TD></TR></TABLE></DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=736 border=0>

  <TR>
    <TD vAlign=top width=120>
      <P
class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=616 colSpan=2>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;
      <U>Asset-Backed and Mortgage-Backed Securities</U>. <BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=120>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=42>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=574>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;The Discount Factor applied to
      asset-backed securities shall be 1.31.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=120>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=42>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=574>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;The Discount Factor applied to
      FHLB, FNMA and FFCB Debentures shall be determined in accordance with, as
      the case may be, (A) the table set forth in paragraph (iii) below (in the
      event that such FHLB, FNMA and FFCB Debentures constitute CMOs) and (B)
      the table set forth in paragraph (iv) below (in the event that such FHLB,
      FNMA and FFCB Debentures constitute mortgage
    pass-throughs).<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=120>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=42>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=574>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;The Discount Factor applied to
      CMOs, PACs and TACs shall be determined by reference to the weighted
      average life of the security in accordance with the table set forth
      below.</P></TD></TR></TABLE></DIV>
<DIV class=c788 style="WIDTH: 761px; HEIGHT: 133px">
<div align="center">
<center>
<TABLE style="BORDER-COLLAPSE: collapse" borderColor=#111111 height="1%"
cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=bottom>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=bottom>
      <P class=c784> &nbsp; <U>Remaining Term to
      Maturity</U></P></TD>
    <TD vAlign=bottom>
      <P class=c784><U class=c799>Discount Factor</U></P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD>
      <P class=c784> &nbsp; 3 years or less</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.33</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD>
      <P class=c784> &nbsp; 7 years or less (but
      longer than 3
      years)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.42</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;10 years or less (but longer than 7
years)</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.58</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;20 years or less (but longer than 10
    years)</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.74</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;Greater than 20 years</P></TD>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.05</P></TD></TR></TABLE></center></div>

</DIV>
<TABLE id=AutoNumber2
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-RIGHT-WIDTH: 0px"
height=236 cellSpacing=1 width="97%" border=1>

  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=209>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="6%" height=209>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="78%" height=209>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;The Discount Factor applied to
      residential mortgage pass-throughs (including private-placement mortgage
      pass-throughs), Conventional Mortgage Pass-Through Certificates, GNMA
      Multifamily Securities, GNMA Certificates, FNMA Certificates, FHLMC
      Certificates and FHLMC Multifamily Securities shall be determined by
      reference to the coupon paid by such security in accordance with the table
      set forth below. With respect to GNMA Graduated Payment Securities, the
      same Discount Factor shall apply in the case of such securities as applies
      to GNMA Certificates with fixed interest rates determined at the point the
      certificates become seasoned. The Discount Factors set forth below shall
      be deemed to supersede and replace the Discount Factors for Conventional
      Mortgage Pass-Through Certificates, GNMA Certificates, GNMA Graduated
      Payment Securities, FNMA Certificates, FHLMC Certificates and FHLMC
      Multifamily Securities set forth in the Articles
      Supplementary.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD></TR></TABLE>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD>
      <P
      class=c780>&nbsp;&nbsp;<U>Coupon</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD>
      <P class=c784><U class=c799>Discount Factor</U></P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;5%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.66</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;6%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.62</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;7%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.58</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;8%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;9%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;10%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;11%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.44</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;12%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;13%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.39</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;Adjustable</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.65</P></TD></TR></TABLE>
</center></div>

</DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=736 border=0>

  <TR>
    <TD vAlign=top width=123>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=613 colSpan=2>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;&nbsp;&nbsp;Notwithstanding
      the foregoing, the Discount Factor applied to fixed-rate pass-throughs
      that are not rated by Moody's and are serviced by a servicer approved by
      Moody's shall be determined by reference to the Discount Factor table
      relating to whole loans set forth in paragraph (v)
  below.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=123>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=43>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=570>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;The Discount Factor applied to
      whole loans shall be determined by reference to the coupon paid by such
      security in accordance with the table set forth
below.</P></TD></TR></TABLE></DIV>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD>
      <P
      class=c780>&nbsp;&nbsp;<U>Coupon</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD>
      <P class=c784><U class=c799>Discount Factor</U></P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;5%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.72</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;6%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.67</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;7%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.63</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;8%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.59</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;9%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.55</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;10%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.51</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;11%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.48</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;12%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.45</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;13%</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.42</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;Adjustable</P></TD>
    <TD>
      <P
  class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70</P></TD></TR></TABLE>
</center></div>

</DIV>
<DIV>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=85 cellSpacing=0 cellPadding=0 width="97%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="16%" height=64>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="84%" height=64>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Bank Loans and Senior Loans</U>. The Discount Factor applied to Bank
      Loans and Senior Loans shall be the amount specified in accordance with
      the table set forth below (or such lower amount as Moody's may approve in
      writing from time to time):</P></TD></TR></TABLE>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width=655 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD>
      <P class=c780>&nbsp;</P></TD>
    <TD colSpan=4>
      <P class=c773><U
      class=c799>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody's
      Rating
      Category&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
  <TR>
    <TD vAlign=bottom>
      <P class=c773><U
      class=c799>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Type
      of
    Loan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U
      class=c799>&nbsp;&nbsp;&nbsp;&nbsp;Aaa&#8209;A&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>&nbsp;&nbsp;&nbsp;&nbsp;Baa and
      Ba(<SUP>1</SUP>)&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
    <TD vAlign=bottom>
      <P class=c773><U
      class=c799>&nbsp;&nbsp;&nbsp;&nbsp;B(<SUP>1</SUP>)&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD>
    <TD vAlign=bottom>
      <P class=c773> Caa and
      below<BR>(including<BR>distressed
      and<BR><U>&nbsp;&nbsp;&nbsp;&nbsp;unrated)(<SUP>1</SUP>)&nbsp;&nbsp;&nbsp;&nbsp;</U></P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;  Senior Loans greater than $250
      MM</P></TD>
    <TD align="center">
      <P class=c787>1.18</P></TD>
    <TD align="center">
      <P class=c787>1.36</P></TD>
    <TD align="center">
      <P class=c787>1.49</P></TD>
    <TD align="center">
      <P class=c787>2.50</P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;  non&#8209;Senior Loans greater than
      $250 MM</P></TD>
    <TD align="center">
      <P class=c787>1.28</P></TD>
    <TD align="center">
      <P class=c787>1.46</P></TD>
    <TD align="center">
      <P class=c787>1.59</P></TD>
    <TD align="center">
      <P class=c787>2.50</P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;  Bank Loans less than $250
      MM</P></TD>
    <TD align="center">
      <P class=c787>1.38</P></TD>
    <TD align="center">
      <P class=c787>1.56</P></TD>
    <TD align="center">
      <P class=c787>1.69</P></TD>
    <TD align="center">
      <P class=c787>2.70</P></TD></TR></TABLE>
</center></div>

<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=56 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="100%" colSpan=2 height=64>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      If a Senior Loan is not rated by any of Moody's, S&amp;P or Fitch, the
      Corporation shall use the applicable Discount Factor set forth under the
      column entitled "Caa and below (including distressed and unrated)" in the
      table above. Ratings assigned by S&amp;P and/or Fitch are generally
      accepted by Moody's at face value. However, adjustments to face value may
      be made to particular categories of securities for which the ratings by
      S&amp;P and/or Fitch do not seem to approximate a Moody's rating
      equivalent. Split-rated securities assigned by S&amp;P and Fitch (i.e.,
      these rating agencies assign different rating categories to the security)
      shall be accepted at the lower of the two ratings; <I>provided</I>,
      <I>however</I>, that, in a situation where a security is rated "B" (or
      equivalent) by a given rating agency and rated "CCC" (or equivalent) by
      another rating agency, the Corporation shall use the applicable Discount
      Factor set forth under the column entitled "B" in the table
      above.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=35>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=35>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Cash Equivalents</U>. The Discount Factor applied to Cash Equivalents
      shall be 1.00.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="16%" height=64>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="84%" height=64>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Common Stocks of U.S. issuers and non-U.S. issuers for which ADRs are
      traded</U>. The Discount Factor applied to Common Stocks of U.S. issuers
      and non-U.S. issuers for which ADRs are traded (other than Common Stocks
      of REITs) shall be determined by reference to the industry of the issuer
      of such Common Stock in accordance with the table set forth below. The
      Discount Factor set forth in the "Utility" row of the table below shall be
      deemed to supersede and replace the Discount Factor for Utility Stocks set
      forth in the Articles Supplementary.</P></TD></TR></TABLE></DIV>
<DIV>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD>
      <P
      class=c780>&nbsp;&nbsp;<U>Industry</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD>
      <P class=c773><U class=c799>Discount Factor</U></P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;Utility</P></TD>
    <TD>
      <P
  class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.70</P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;Industrial</P></TD>
    <TD>
      <P
  class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.64</P></TD></TR>
  <TR>
    <TD>
      <P class=c779>&nbsp;&nbsp;Financial</P></TD>
    <TD>
      <P
  class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41</P></TD></TR></TABLE>
</center></div>

</DIV></DIV>
<DIV>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=85 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=64>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=64>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <U>Common Stock and Preferred Stock of REITs and other real estate
      companies</U>. The Discount Factor applied to the Common Stock and the
      Preferred Stock of REITs shall be determined in accordance with the table
      set forth below.</P></TD></TR></TABLE>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=top>
      <P class=c784><U class=c799>Type of
      Security</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top>
      <P class=c773><U class=c799>Discount Factor</U> (1) (2) (3)</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>Common Stock of REITs</P></TD>
    <TD vAlign=top>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>Preferred Stock of REITs</P></TD>
    <TD vAlign=top>
      <P class=c780>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With Senior Implied Rating
      (by Moody's or S&amp;P)</P></TD>
    <TD vAlign=top>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.54</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; without Senior Implied Rating
      (by Moody's or S&amp;P)</P></TD>
    <TD vAlign=top>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.08</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>Preferred Stock of other real estate companies</P></TD>
    <TD vAlign=top>
      <P class=c780>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With Senior Implied Rating
      (by Moody's or S&amp;P)</P></TD>
    <TD vAlign=top>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.08</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; without Senior Implied Rating
      (by Moody's or S&amp;P)</P></TD>
    <TD vAlign=top>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD></TR></TABLE></center></div>

</DIV></DIV>
<DIV>
<TABLE cellSpacing=0 cellPadding=0 width=731 border=0>

  <TR>
    <TD vAlign=top width=74>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </P></TD>
    <TD vAlign=top width=71>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=1>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">(1)</P></TD>
    <TD vAlign=top width=594>
      <P class=c789 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">A Discount
      Factor of 2.50 shall be applied to those assets in a single Moody's Real
      Estate Industry/ Property Sector Classification which exceeds 30% of the
      aggregate Market Value of all Eligible Portfolio Property but are not
      greater than 35% of the aggregate Market Value of all Eligible Portfolio
      Property.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=54>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </P></TD>
    <TD vAlign=top width=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=33>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">(2)</P></TD>
    <TD vAlign=top width=594>
      <P class=c789 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">A Discount
      Factor of 2.50 shall be applied if dividends on such securities have not
      been paid consistently (either quarterly or annually) over the previous
      three years, or for such shorter time period that such securities have
      been outstanding.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=54>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      </P></TD>
    <TD vAlign=top width=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=33>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">(3)</P></TD>
    <TD vAlign=top width=594>
      <P class=c789 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">A Discount
      Factor of 2.50 shall be applied if the market capitalization (including
      Common Stock and Preferred Stock) of an issuer is below $500
      million.<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=51 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="16%" height=30>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="84%" colSpan=2 height=30>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Corporate Debt
      Securities</U>.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="16%" height=21>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="6%" height=21>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="78%" height=21>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to Section
      9.05(f)(ii) below, the Discount Factor for Corporate Debt Securities,
      including Utility Bonds, shall be determined by reference to the rating on
      such asset with reference to the remaining term to maturity of such asset,
      in accordance with the table set forth below. The Discount Factors set
      forth below shall be deemed to supersede and replace the Discount Factors
      for Utility Bonds set forth in the Articles
  Supplementary.</P></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top>
      <P class=c779>&nbsp;</P></TD></TR></TABLE>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 width=588 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=top>
      <P
      class=c800>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top colSpan=8>
      <DIV>
      <P class=c801><U
      class=c799>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moody's
      Rating
      Category&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P></DIV></TD></TR>
  <TR>
    <TD vAlign=bottom>
      <P class=c780>Term to Maturity of<BR><U>Corporate Debt Security
    (2)</U></P></TD>
    <TD vAlign=bottom colSpan=2 align="center">
      <P class=c773><U class=c799>Aaa</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>Aa</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>A</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>Baa</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>Ba</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>B</U></P></TD>
    <TD vAlign=bottom align="center">
      <P class=c773><U class=c799>Unrated</U><SUP>(1</SUP>)</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>1 year or
      less...............................................</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.09</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.12</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.15</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.18</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.37</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.50</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>2 years or less (but longer than 1 year).........</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.15</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.18</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.22</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.25</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.46</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.60</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>3 years or less (but longer than 2 years)........</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.20</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.23</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.27</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.31</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.53</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.68</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>4 years or less (but longer than 3 years)........</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.26</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.29</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.33</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.38</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.61</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.76</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>5 years or less (but longer than 4 years)........</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.32</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.35</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.39</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.44</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.68</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.85</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>7 years or less (but longer than 5 years)........</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.39</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.43</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.47</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.52</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.79</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.97</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>10 years or less (but longer than 7 years)......</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.45</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.50</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.55</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.60</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.89</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.08</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>15 years or less (but longer than 10 years)....</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.50</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.55</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.60</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.65</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.96</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.16</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>20 years or less (but longer than 15 years)....</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.50</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.55</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.60</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.65</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.96</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.28</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>30 years or less (but longer than 20years).....</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.50</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.55</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.60</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.65</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.96</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.29</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780><BR>Greater than 30
      years...................................</P></TD>
    <TD vAlign=bottom colSpan=2>
      <P class=c779>&nbsp;&nbsp; 1.65</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp; 1.73</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.81</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 1.89</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.05</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.40</P></TD>
    <TD vAlign=bottom>
      <P class=c779>&nbsp;&nbsp; 2.50</P></TD></TR>
  <TR>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD>
    <TD>
      <P class=c803>&nbsp;</P></TD></TR></TABLE></center></div>

</DIV>
<TABLE id=AutoNumber3
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-RIGHT-WIDTH: 0px"
height=239 cellSpacing=1 width="96%" border=1>

  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="100%" colSpan=2 height=8>_______________</TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="5%" height=165>
      <P align=left>(1)</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="95%" height=165>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">Unless conclusions
      regarding liquidity risk as well as estimates of both the probability and
      severity of default for the Corporation's assets can be derived from other
      sources, securities rated below B by Moody's and unrated securities, which
      are securities rated by neither Moody's, S&amp;P nor Fitch, shall be
      limited to 10% of the aggregate Market Value of all Eligible Portfolio
      Property. If a Corporate Debt Security is unrated by Moody's, S&amp;P or
      Fitch, the Corporation shall use the Discount Factor set forth under
      "Unrated" in this table. Ratings assigned by S&amp;P or Fitch are
      generally accepted by Moody's at face value. However, adjustments to face
      value may be made to particular categories of credits for which the
      S&amp;P and/or Fitch rating does not seem to approximate a Moody's rating
      equivalent. Split rated securities assigned by S&amp;P and Fitch shall be
      accepted at the lower of the two ratings.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="5%" height=51>(2)</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="95%" height=51>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">The Discount Factors for
      Corporate Debt Securities shall also be applied to any interest rate swap
      or cap, in which case the rating of the counterparty shall determine the
      appropriate rating category.<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=730 border=0>

  <TR>
    <TD vAlign=top width=128>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=47>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=555 colSpan=2>
      <P class=c784
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

       (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
      Discount Factor for Corporate Debt Securities which provide for conversion
      or exchange into equity capital at some time over their lives
      ("Convertible Securities") shall be determined by reference to the delta
      of such asset with reference to the rating on such asset, in accordance
      with the guidelines set forth below. <SUP
      class=c804>(1)(2)<BR>&nbsp;</SUP></P></TD></TR>
  <TR>
    <TD vAlign=top width=175 colSpan=2>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=45>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=510>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible Securities having a
      delta that ranges between .4-0 shall be discounted using the Discount
      Factors set forth in the table relating to Discount Factors for Corporate
      Debt Securities set forth in Section 9.05(f)(i)&nbsp;
    above.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=175 colSpan=2>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=45>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=510>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for
      Convertible Securities having a delta that ranges from 1-.8 shall be
      determined by reference to the rating on such asset in accordance with the
      table set forth below:&nbsp;&nbsp;&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=175 colSpan=2></TD></TR></TABLE>
<P class=c780
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Moody's Rating Category</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; <U>Discount
Factor<BR></U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; Ranging from
Aaa-Baa3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.95<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ba1 or
lower&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.29<BR></P>
<TABLE cellSpacing=0 cellPadding=0 width=730 border=0>

  <TR>
    <TD vAlign=top width=173>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=48>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=509>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for
      Convertible Securities having a delta that ranges from .8-.4 shall be
      determined by reference to the rating on such asset in accordance with the
      table set forth below:</P></TD></TR></TABLE>
<P class=c780
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Moody's Rating Category</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; <U>Discount
Factor<BR></U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ranging from
Aaa-Baa3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.92<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; Ba1 or
lower&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.26<BR></P>
<TABLE cellSpacing=0 cellPadding=0 width=730 border=0>

  <TR>
    <TD vAlign=top width=171>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=47>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=512>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Discount Factor for
      Convertible Securities that are unrated by Moody's shall be
  2.50.</P></TD></TR></TABLE>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=96 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="100%" colSpan=2 height=75>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">__________________<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ratings assigned by S&amp;P
      or Fitch are generally accepted by Moody's at face value.</P>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon conversion of
      Convertible Securities to Common Stock, the Discount Factors applicable to
      Common Stock shall apply.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=75>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=75>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Financial Contracts</U>.
      The Discount Factor applied to Financial Contracts shall be determined by
      reference to the rating of such assets with reference to the remaining
      term to maturity in accordance with the Discount Factor table used for
      Corporate Debt Securities in paragraph (i) above.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="16%" height=64>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="84%" height=64>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Short-term
      instruments</U>. The Discount Factor applied to short-term portfolio
      securities, including without limitation Moody's Eligible Short Term Money
      Market Instruments and Short Term Money Market Instruments, shall be (i)
      1.00, so long as such portfolio securities mature or have a demand feature
      at par exercisable within the Moody's Exposure Period; (ii) 1.15, so long
      as such portfolio securities do not mature within the Moody's Exposure
      Period or have a demand feature at par not exercisable within the Moody's
      Exposure Period; and (iii) 1.25, if such securities are not rated by
      Moody's, so long as such portfolio securities are rated at least A-1+/AA
      or SP-1+/AA by S&amp;P and mature or have a demand feature at par
      exercisable within the Moody's Exposure Period. The Discount Factors set
      forth in the preceding sentence shall be deemed to supersede and replace
      the Discount Factors for Short Term Money Market Instruments set forth in
      the Articles Supplementary.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=64>&nbsp;</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=64>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Municipal Debt
      Obligations</U>. The Discount Factor applied to Municipal Debt Obligations
      shall be the amount determined by reference to the rating on such asset in
      accordance with the table set forth below:</P></TD></TR></TABLE>
<DIV class=c788>
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=1
style="border-collapse: collapse" bordercolor="#111111">

  <TR height=38>
    <TD height=38>
      <P class=c773>&nbsp; <U class=c805>Moody's Rating Category</U></P></TD>
    <TD height=38>
      <P class=c773><U class=c805>Discount Factor</U></P></TD></TR>
  <TR>
    <TD>
      <P
      class=c793>&nbsp;&nbsp;Aaa&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD align="center">
      <P class=c794>1.51</P></TD></TR>
  <TR>
    <TD>
      <P class=c793>&nbsp;&nbsp;Aa</P></TD>
    <TD align="center">
      <P class=c794>1.59</P></TD></TR>
  <TR>
    <TD>
      <P class=c793>&nbsp;&nbsp;A</P></TD>
    <TD align="center">
      <P class=c794>1.60</P></TD></TR>
  <TR>
    <TD>
      <P class=c793>&nbsp;&nbsp;Baa</P></TD>
    <TD align="center">
      <P class=c794>1.73</P></TD></TR>
  <TR>
    <TD>
      <P class=c793>&nbsp;&nbsp;Unrated (1)</P></TD>
    <TD align="center">
      <P class=c794>2.25</P></TD></TR></TABLE></center></div>

</DIV>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=54 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="100%" colSpan=2 height=22>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">________________<BR>(1)&nbsp;Unless
      conclusions regarding liquidity risk as well as estimates of both the
      probability and severity of default for the municipal issuer's assets can
      be derived from other sources as well as combined with a number of sources
      as presented by the Corporation to Moody's, securities rated below Baa by
      Moody's and unrated securities, which are securities rated by neither
      Moody's, S&amp;P nor Fitch, shall be limited to 10% of the aggregate
      Market Value of all Eligible Portfolio Property. If a Municipal Debt
      Obligation is unrated by Moody's, S&amp;P or Fitch, the Corporation shall
      use the Discount Factor set forth under "Unrated" in the table set forth
      above. Ratings assigned by S&amp;P or Fitch are generally accepted by
      Moody's at face value. However, adjustments to face value may be made to
      particular categories of credits for which the S&amp;P and/or Fitch rating
      does not seem to approximate a Moody's rating equivalent. Split-rated
      securities assigned by S&amp;P and Fitch shall be accepted at the lower of
      the two ratings.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=22>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=22>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Municipal
      Obligations and Receivables for Municipal Obligations Sold</U>. The
      Discount Factor applied to Municipal Obligations shall be determined in
      accordance with the table set forth below.</P></TD></TR></TABLE>
<P class=c779
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Moody's Rating Category</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; <U>Discount
Factor<BR></U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MIG-1,
VMIG-1, P-1
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.00<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
MIG-1, VMIG-1, P-1
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.36<BR>&nbsp;</P>
<TABLE id=AutoNumber5
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 cellSpacing=1 width="96%" border=1>

  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    width="100%">
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">____________<BR>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Moody's rated Municipal Obligations that have a maturity less than or
      equal to 49 days and Municipal Obligations not rated by Moody's but rated
      the equivalent to MIG-1, VMIG-1, or P-1 by S&amp;P or F1 by Fitch that
      have a maturity less than or equal to 49
      days.<BR>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Moody's rated
      Municipal Obligations that have a maturity greater than 49 days and
      Municipal Obligations not rated by Moody's but rated the equivalent to
      MIG-1, VMIG-1, or P-1 by S&amp;P or F1 by Fitch that have a maturity
      greater than 49 days.<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE height=90 cellSpacing=0 cellPadding=0 width=731 border=0>

  <TR>
    <TD vAlign=top width=731 height=90>
      <P class=c779
      style="MARGIN-TOP: 0; MARGIN-BOTTOM: 15">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
      the foregoing, the Discount Factor applied to fixed-rate pass-throughs
      that are not rated by Moody's and are serviced by a servicer approved by
      Moody's shall be determined by reference to the Discount Factor table
      relating to whole loans set forth in paragraph (v)
  below.</P></TD></TR></TABLE>
<TABLE id=AutoNumber1
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=73 cellSpacing=0 cellPadding=0 width="96%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="16%" height=41>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="84%" height=41>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Preferred Stock</U>. The
      Discount Factor applied to Preferred Stock (other than Preferred Stock of
      REITs) shall be determined by reference to the rating of such assets in
      accordance with the table set forth below.</P></TD></TR></TABLE>
<P class=c779
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
<div align="center">
<center><table border="1" cellpadding="0" cellspacing="0"
style="border-collapse: collapse; border-width: 0" bordercolor="#111111"
width="47%" id="AutoNumber7">
<tr>
<td width="50%" style="border-style: none; border-width: medium">
<U>Moody's Rating Category</U> </td>
<td width="50%" style="border-style: none; border-width: medium"
align="center">
<p align="center"> <U>Discount
Factor</U>(1)(2)</td>
</tr>

<tr>
<td width="50%" style="border-style: none; border-width: medium">
Aaa&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aa&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Baa &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ba&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
B&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&lt;B or Not Rated</td>
<td width="50%" style="border-style: none; border-width: medium"
align="center">
<p style="margin-top: 0; margin-bottom: 0">1.50</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;1.55</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;1.60</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;1.65</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;1.96</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;2.16</p>
<p style="margin-top: 0; margin-bottom: 0">&nbsp;2.50</td>
</tr>

</table>
</center></div>

<P class=c779
style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp; </P>
<TABLE cellSpacing=0 cellPadding=0 width=728 border=0>

  <TR>
    <TD vAlign=top width=728 colSpan=2>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">__________<BR>(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      In the case of Preferred Stock which also constitutes Rule 144A
      Securities, the Discount Factor shall be increased by an additional
      0.20.</P>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DRD shall be
      assigned a different Discount Factor. Investment grade DRDs shall be given
      a 1.65 Discount Factor and non-investment grade DRDs will receive a 2.16
      Discount Factor.<br>
&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Receivables</U>.
      The Discount Factor applied to Receivables shall be
  1.00.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Rule144A Securities</U>. The
      Discount Factor applied to Rule 144A Securities whose terms include rights
      to registration under the Securities Act within one year and Rule 144A
      Securities which do not have such registration rights within one year
      shall be 120% and 130%, respectively, of the Discount Factor which would
      apply were the securities registered under the Securities
      Act.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Rule 2a-7 Money Market
      Funds</U>. The Discount Factor for Rule 2a-7 Money Market Funds shall be
      1.10.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Structured Notes</U>. The
      Discount Factor applied to Structured Notes shall be (i) in the case of a
      corporate issuer, the Discount Factor used for Corporate Debt Securities,
      whereby the rating on the issuer of the Structured Note shall be the
      rating on the Structured Note for purposes of determining the&nbsp;
      Discount Factor in the table relating to Corporate Debt Securities; and
      (ii) in the case of an issuer that is the U.S. government or an agency or
      instrumentality thereof, the Discount Factor used for U.S. Government
      Obligations.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Rated TRACERS</U>. The
      Discount Factor applied to rated TRACERS shall be the Discount Factor used
      for Corporate Debt Securities, based on (i) Morgan Stanley's senior
      unsecured rating and (ii) the term to maturity.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>TRAINS</U>. The Discount
      Factor applied to TRAINS shall be the Discount Factor used for Corporate
      Debt Securities, based on (i) Lehman Brothers' senior unsecured rating and
      (ii) the term to maturity.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=121>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=607>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>U.S. Government
      Obligations and U.S. Treasury Strips</U>. The Discount Factor applied to
      U.S. Government Obligations and U.S. Treasury Strips shall be determined
      by reference to the remaining term to maturity of such assets in
      accordance with the table set forth below. The Discount Factors set forth
      in the "U.S. Government Obligations" column of the table below shall be
      deemed to supersede and replace the Discount Factors for U.S. Government
      Obligations set forth in the Articles
Supplementary.</P></TD></TR></TABLE>
<DIV class=c788 style="WIDTH: 761px; HEIGHT: 422px">
<div align="center">
<center>
<TABLE cellSpacing=0 cellPadding=0 border=0
style="border-collapse: collapse" bordercolor="#111111">

  <TR>
    <TD vAlign=top>
      <P
      class=c792>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>
      <BR><BR><BR>Remaining Term to Maturity</U></P></TD>
    <TD vAlign=top align="center">
      <P
      class=c792>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>U.S.
      Government<BR>Obligations<BR><U>Discount Factor</U></P></TD>
    <TD vAlign=top align="center">
      <P
      class=c792>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR><BR>U.S.
      Treasury Strips<BR><U>Discount Factor</U></P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 year or
    less</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.07</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.07</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 1
      year)</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp; 1.13</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.15</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 2
      years)</P></TD>
    <TD vAlign=top>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.18</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.21</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;4 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(but longer than 3
      years)</P></TD>
    <TD vAlign=top>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.23</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.28</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 4
      years)</P></TD>
    <TD vAlign=top>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.28</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.35</P></TD></TR>
  <TR>
    <TD vAlign=top>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 5
      years)</P></TD>
    <TD vAlign=top>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.35</P></TD>
    <TD vAlign=top>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.47</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 7
      years)</P></TD>
    <TD>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.41</P></TD>
    <TD>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.63</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 10
      years)</P></TD>
    <TD>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.46</P></TD>
    <TD>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.91</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;20 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;(but longer than 15
      years)</P></TD>
    <TD>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.54</P></TD>
    <TD>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      2.18</P></TD></TR>
  <TR>
    <TD>
      <P class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;30 years or
      less<BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (but longer than 20
      years)</P></TD>
    <TD>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      1.54</P></TD>
    <TD>
      <P class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      2.44</P></TD></TR></TABLE></center></div>

</DIV>
<TABLE height=133 cellSpacing=0 cellPadding=0 width=726 border=0>

  <TR>
    <TD vAlign=top width=121 height=133>
      <P class=c779
    style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;</P></TD>
    <TD vAlign=top width=605 height=133>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <BR>&nbsp;(s)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <U>Assets Not
      Denominated in U.S. Dollars</U>. The Discount Factor applied to any asset
      constituting Eligible Portfolio Property that is not denominated in U.S.
      dollars shall be the product of (i) the Discount Factor applicable to such
      asset pursuant to this Section 9.05 and (ii) the Discount Factor
      determined by reference to the currency in which such asset is denominated
      in accordance with the table set forth below (it being understood that if
      the currency in which such asset is denominated is not set forth in the
      table set forth below, the Corporation shall contact Moody's to obtain the
      applicable Discount Factor):</P></TD></TR></TABLE>
<DIV align=center>
<CENTER>
<TABLE id=AutoNumber6
style="BORDER-TOP-WIDTH: 0px; BORDER-LEFT-WIDTH: 0px; BORDER-BOTTOM-WIDTH: 0px; BORDER-COLLAPSE: collapse; BORDER-RIGHT-WIDTH: 0px"
borderColor=#111111 height=251 cellSpacing=0 cellPadding=0 width="47%"
  border=1>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="50%" height=40><U>Currency</U></TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="50%" height=40>
      <P align=center><U>Discount Factor</U></P></TD></TR>
  <TR>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="50%" height=207>Canadian dollar<BR>Euro<BR>Great Britain
      pound<BR>Japanese yen<BR>Australian dollar<BR>Hong Kong dollar<BR>New
      Zealand dollar<BR>Norwegian krone<BR>Swedish krona<BR>Thai
      baht<BR>Korean&nbsp; won</TD>
    <TD
    style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none"
    vAlign=top width="50%" height=207>
      <P
      align=center>1.07<BR>1.11<BR>1.15<BR>1.16<BR>1.13<BR>1.00<BR>1.14<BR>1.11<BR>1.13<BR>1.19<BR>1.21</P></TD></TR></TABLE></CENTER></DIV>
<TABLE cellSpacing=0 cellPadding=0 width=726 border=0>

  <TR>
    <TD vAlign=top width=8>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=718>
      <P class=c784
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <B class=c777>SECTION&nbsp;9.06. <I>Actions Requiring Prior Written
      Consent of Moody's</I></B>. For so long as any shares of RP are rated by
      Moody's, the Corporation shall not, without the prior written consent of
      Moody's:<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=727 border=0>

  <TR>
    <TD vAlign=top width=50>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=677>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; issue senior securities
      representing indebtedness as defined under the 1940
  Act;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=677>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; merge or consolidate into or
      with any other fund;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=677>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; engage in interest rate
      swaps, caps and floors, and in the event that the Corporation obtains
      Moody's prior written consent to engage in such interest rate swaps, caps
      and floors, the following conditions shall be satisfied:&nbsp; (i) the
      unsecured senior debt or claims paying ability of the counterparty to the
      swap, cap or floor shall be rated A3 or better by Moody's or A- or better
      by S&amp;P or Fitch and; (ii) the swap, collar or floor shall be
      marked-to-market daily by the counterparty; (iii) a swap, collar or floor
      that is "in the money" shall be valued at 95% of the accrued net excess of
      the Corporation's entitlements over its obligations for purposes of
      calculating the 1940 Act RP Asset Coverage; (iv) 100% of any accrued net
      excess of the Corporation's obligations over its entitlements with respect
      to a swap, cap or floor that has not been defeased through the segregation
      of liquid assets on the Corporation's books and records shall be included
      as a liability of the Corporation for the purposes of calculating the
      Moody's RP Basic Maintenance Amount; (v) the swap, cap or floor notional
      amount shall not exceed the liquidation preference of the shares of RP
      outstanding and (vi) the Corporation intends to terminate the swap, cap or
      floor if the Corporation fails to maintain the 1940 Act RP Asset Coverage
      on the last Business Day of any two consecutive months;
  or<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=50>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=677>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; purchase or sell any
      exchange-traded futures, option or option on a futures contract based on
      an index, and in the event that the Corporation obtains Moody's prior
      written consent to purchase or sell any such exchange-traded futures,
      option or option on a futures contract based on an index (collectively,
      "Moody's Hedging Transactions"), the following conditions shall be
      satisfied (<I>provided</I>, <I>however</I>, that transactions that are
      terminating contracts already held by the Corporation at the time of such
      transactions are exempt from such
conditions):<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=727 border=0>

  <TR>
    <TD vAlign=top width=96>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=39>
      <P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=592>
      <P class=c784
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

      (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; for
      financial futures contracts based on an index, the total number of
      contracts held at any one time shall not exceed, without the prior written
      consent of Moody's, 10% of the average open interest for the 30 days
      preceding the purchase of such transaction as reported by The Wall Street
      Journal or other respectable news source approved by
    Moody's;<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE height=572 cellSpacing=0 cellPadding=0 width=728 border=0>

  <TR>
    <TD vAlign=top width=101 height=76>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=1 height=76></TD>
    <TD vAlign=top width=626 colSpan=2 height=76>
      <P
      class=c780>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the Market Value of financial futures contracts based on an index approved
      by Moody's shall be limited to 80% of the aggregate Market Value of all
      Eligible Portfolio Property or 50% of the Corporation's aggregate
      holdings, whichever is greater;<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=71 height=57>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=31 height=57>&nbsp;</TD>
    <TD vAlign=top width=626 colSpan=2 height=57>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      financial futures contracts based on an index shall be limited to
      clearinghouses that are rated no lower than A by Moody's (or, if not rated
      by Moody's but rated by S&amp;P or Fitch, rated A by S&amp;P or
      Fitch);<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=71 height=76>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=31 height=76>&nbsp;</TD>
    <TD vAlign=top width=626 colSpan=2 height=76>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the Corporation shall not, without the prior written consent of Moody's,
      (A) engage in options or futures transactions for leveraging or
      speculative purposes or (B) write any call option or sell any financial
      futures contracts for the purpose of hedging an anticipated purchase of an
      asset; and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=71 height=120>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=31 height=120>&nbsp;</TD>
    <TD vAlign=top width=626 colSpan=2 height=120>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      the Corporation shall not, without the prior written consent of Moody's,
      enter into any contract to purchase securities for a fixed price at a
      future date beyond customary settlement time (other than such contracts
      that constitute Moody's Hedging Transactions that are otherwise permitted
      under this Section 9.06(d)), except that the Corporation may enter into
      such contracts to purchase newly issued securities on the date such
      securities are issued ("Forward Commitments"), subject to the following
      limitations:<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=71 height=171>
      <P
      class=c779>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=31 height=171>&nbsp;</TD>
    <TD vAlign=top width=39 height=171>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=587 height=171>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Corporation shall maintain in
      a segregated account with its custodian cash, cash equivalents or
      short-term, fixed-income securities rated P-1, MTG-1, MIG-1, or Baa or
      higher by Moody's or, if not rated by Moody's, rated F-1 by Fitch, and
      maturing prior to the date of the Forward Commitment with a Market Value
      that equals or exceeds the amount of the Corporation's obligations under
      any Forward Commitment to which it is from time to time a party or
      long-term fixed income securities with a Discounted Value that equals or
      exceeds the amount of the Corporation's obligations under any Forward
      Commitment to which it is from time to time a party;
  and<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=71 height=72>
      <P class=c779>&nbsp;</P></TD>
    <TD vAlign=top width=31 height=72>&nbsp;</TD>
    <TD vAlign=top width=39 height=72>
      <P class=c780 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;</P></TD>
    <TD vAlign=top width=587 height=72>
      <P class=c780
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Corporation shall not enter
      into a Forward Commitment unless, after giving effect thereto, the
      Corporation would continue to have&nbsp; Eligible Portfolio Property with
      an aggregate Discounted Value equal to or greater than the Moody's RP
      Basic Maintenance Amount.<BR>&nbsp;</P></TD></TR>
  <TR>
    <TD vAlign=top width=728 colSpan=4 height=72>
      <P
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      <B class=c777>SECTION&nbsp;9.07. <I>Initial Elements of Moody's RP Basic
      Maintenance Amount</I></B>. In lieu of the definition in Part I, Paragraph
      1, Definitions, of the Articles Supplementary, the following definition of
      "Moody's RP Basic Maintenance Amount," having been approved by Moody's,
      shall be used for purposes of the Articles
  Supplementary:<BR>&nbsp;</P></TD></TR></TABLE>
<TABLE cellSpacing=0 cellPadding=0 width=727 border=0>

  <TR height=551>
    <TD vAlign=top width=36 height=551>
      <P class=c779
      style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P></TD>
    <TD vAlign=top width=691 height=551>
      <P class=c779 style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 15px">"Moody's RP
      Basic Maintenance Amount" means, initially, as of any date, the sum of (i)
      the aggregate liquidation preference of the shares of RP outstanding and
      shares of Other RP outstanding, (ii) to the extent not covered in (i), the
      aggregate amount of accumulated but unpaid cash dividends with respect to
      the shares of RP outstanding and shares of Other RP outstanding, (iii) any
      Rights due and payable and any equivalent rights to receive cash with
      respect to Other RP which are due and payable, (iv) an amount equal to the
      product of (x) three and (y) the principal amount of the Corporation's
      loan from the Aid Association for Lutherans then outstanding, (v) an
      amount equal to the sum of (x) the amount of accrued but unpaid interest
      on the principal amount of the Corporation's loan from the Aid Association
      for Lutherans then outstanding and (y) an amount equal to 70 days of
      additional accrued interest on such loan at the then current interest rate
      borne by such loan, (vi) the aggregate principal amount of any other then
      outstanding indebtedness of the Corporation for money borrowed, (vii) an
      amount equal to the sum of (x) the aggregate accrued but unpaid interest
      on the indebtedness referred to in the foregoing clause (vi) and (y) an
      amount equal to 70 days of additional accrued interest on such
      indebtedness at the then current interest rate(s) borne by such
      indebtedness, (viii) the aggregate Projected Dividend Amount, (ix)
      redemption premium, if any, and (x) the greater of $200,000 or an amount
      equal to projected expenses of the Corporation (including, without
      limitation, fee and indemnification obligations of the Corporation
      incurred in connection with any commercial paper program undertaken by the
      Corporation or with any credit facility related thereto) for the next
      three month period. The Board of Directors shall have the authority to
      adjust, modify, alter or change from time to time the initial elements
      comprising the Moody's RP Basic Maintenance Amount if the Board of
      Directors determines and Moody's advises the Corporation in writing that
      such adjustment, modification, alteration or change will not adversely
      affect its then current rating on the
  RP.&nbsp;&nbsp;&nbsp;&nbsp;</P></TD></TR></TABLE>
<P class=c779>&nbsp;</P></DIV></BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2R CODE ETH
<SEQUENCE>3
<FILENAME>exhibit_r1.htm
<TEXT>
<html>
<head>
<meta name="GENERATOR" content="Microsoft FrontPage 5.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title>Exhibit r</title>
</head>
<body>
<div class="Section1" style="width: 674px; height: 3241px">
<p align="right">Exhibit r.1</p>

<p align="center"><b><u><font face="Times New Roman" size="3">DNP SELECT INCOME FUND INC.</font></u></b></p>

<p align="center"><b><u><font face="Times New Roman" size="3">AMENDED AND RESTATED CODE OF ETHICS</font></u></b></p>

<p><font face="Times New Roman" size="3">I.&nbsp;&nbsp; <u>Applicability</u></font></p>

<p style="text-indent: 50px; margin-bottom: 0px">This Amended and Restated Code of Ethics (the "<u>Code</u>"), adopted by the Board of Directors of DNP Select Income Fund Inc. (the "<u>Fund</u>") pursuant to Rule 17j-1 under the Investment Company Act of 1940, as
amended (the "<u>Act</u>"), establishes rules of conduct for "Covered Persons" or "Access Persons" (each as defined in this Code) of the Fund.&nbsp; For purposes of this Code, "Covered Person" or "Access Person" shall mean any director, officer or "Advisory Person"
of the Fund or its investment adviser and "Advisory Person" shall include the following persons:</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px" align="left"><font face="Times New Roman" size="3">(A)&nbsp; any director, officer or employee of the Fund or its investment adviser (or any company in a control relationship to the Fund or its
investment adviser) who, in connection with his or her regular functions or duties, makes or participates in investment decisions, or obtains investment information, regarding the purchase or sale of securities by the Fund, or whose functions relate to the making of
any investment recommendations with respect to the purchases or sales; and</font></p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px" align="left">(B)&nbsp; any natural person in a control relationship to the Fund who obtains information concerning recommendations made to the Fund with regard to the purchase or sale of securities
by the Fund.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of this Article&nbsp;I, a person does not become a Covered Person solely by reason of (i) normally assisting in the preparation of public reports or receiving public reports, but
not receiving information about current recommendations or trading; or (ii) a single instance of obtaining knowledge of current recommendations or trading activity, or infrequently and inadvertently obtaining such knowledge.</p>

<p>II.&nbsp; <u>Statement of General Principles</u></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The general fiduciary principles that govern the personal trading activities of a Covered Person are as follows:</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(A)&nbsp; the duty at all times to place the interests of the shareholders of the Fund first;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(B)&nbsp; the requirement that all personal securities transactions be conducted in a manner which does not interfere with the Fund's portfolio transactions so as to avoid any actual or potential
conflict of interest or any abuse of an individual's position of trust and responsibility; and</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C)&nbsp; the fundamental standard that Covered Persons should not take inappropriate or unfair advantage of their relationship with the Fund.</p>

<p style="text-indent: 50">Covered Persons must adhere to these general principles as well as comply with the Code's specific provisions.</p>

<p>III.&nbsp; <u>Prohibitions</u></p>

<p style="text-indent: 50; margin-left: 50">(A)&nbsp; No Covered Person shall purchase or sell, directly or indirectly, any security in which he has, or by reason of such transaction acquires, any direct or indirect beneficial ownership (as defined in
<u>Attachment&nbsp;A</u> hereto) and which he knows at the time of such purchase or sale:</p>

<p style="margin-left: 150px; margin-bottom: 0px">(1)&nbsp; is being considered for purchase or sale by the Fund; or</p>

<p style="margin-left: 150px; margin-bottom: 0px">(2)&nbsp; is being purchased or sold by the Fund.</p>

<p style="text-indent: 50; margin-left: 50">No Advisory Person shall purchase or sell a security when the Fund has a pending purchase or sale of the same security until the Fund's order has been completed or withdrawn.&nbsp; If the proposed personal trade is on the
same side as the completed Fund transaction, the personal trade cannot occur within two days of the Fund transaction (i.e., neither at T or T + 1 calendar day).&nbsp; If the proposed trade is on the opposite side of the completed Fund transaction in that security,
the personal trade cannot occur within three days after the Fund transaction (i.e., T + 2 calendar days or later).</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">No Advisory Person who is entrusted with the day-to-day management of the Fund's portfolio may directly or indirectly acquire or dispose of beneficial ownership of a security within seven calendar
days before or after the Fund trades in that security.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">No Advisory Person shall profit in the purchase and sale or sale and purchase, of the same (or equivalent) securities of an issuer within 60 calendar days if the Fund purchases or sells the same (or
equivalent) securities of such issuer during such 60-day period.&nbsp; Any profit realized on such short-term trades shall be disgorged.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">For purposes of Article III(A)(1), a security is "being considered for purchase or sale" when a recommendation to purchase or sell a security has been made and communicated and, with respect to the
person making the recommendation, when such person receives information that would lead such person in his or her normal course of business to consider making such a recommendation.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">B)&nbsp; No Covered Person shall recommend any securities transaction by the Fund without having disclosed his interest, if any, in such securities or the issuer of the securities, including without
limitation:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1)&nbsp; such person's direct or indirect beneficial ownership of any securities of such issuer;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2)&nbsp; any contemplated transaction by such person in such securities;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3)&nbsp; any position with such issuer or its affiliates; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(4)&nbsp; any present or proposed business relationship between such issuer or its affiliates and such person or any party in which such person has a significant interest.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C)&nbsp; No Covered Person shall, directly or indirectly in connection with the purchase or sale of any securities held or to be acquired by the Fund:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1)&nbsp; employ any device, scheme or artifice to defraud the Fund; or</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2)&nbsp; make to the Fund any untrue statement of a material fact or omit to state to the Fund a material fact necessary in order to make the statements made, in light of the circumstances under
which they are made, not misleading;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3)&nbsp; engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon the Fund; or</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(4)&nbsp; engage in any manipulative practice with respect to the Fund.</p>

<p style="text-indent: 50; margin-left: 50; margin-bottom: 0px">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Advisory Person shall purchase, directly or indirectly, or by reason of such transaction acquire, any direct or indirect beneficial ownership (as defined in
<u>Attachment A</u> hereto) of any securities in an initial public offering or a private placement transaction, without prior approval in accordance with this Code.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(E)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Covered Person shall accept any gift or other thing of more than <u>de minimis</u> value from any person or entity that does business with or on behalf of
the Fund.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(F)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Advisory Person shall engage in excessive trading or market timing activities with respect to any mutual fund whether or not such mutual fund is managed by
the employer of such Advisory Person or by any affiliated adviser/sub-adviser.&nbsp; For the purposes of the foregoing, "market timing" shall be defined as a purchase and redemption, regardless of size, in and out of the same mutual fund within any sixty (60) day
period.&nbsp; The foregoing restrictions shall not apply to Advisory Persons investing in mutual funds through asset allocation programs, automatic reinvestment programs, 401(k) and similar retirement accounts and any other non-volitional investment vehicles.&nbsp;
Advisory Persons shall provide annual and quarterly certifications as to their compliance with this restriction.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(G)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Covered Person shall&nbsp;(i) purchase or sell the security of any issuer on the basis of material nonpublic information about that security or issuer, or
(ii) divulge such&nbsp;information in breach of a duty of trust or confidence that is owed directly, indirectly or derivatively, to the issuer of that security,&nbsp;the shareholders of that issuer or&nbsp;any other person who is the source of
such&nbsp;information.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">For purposes of this Code, the term "security" shall have the meaning set forth in Section 2(a)(36) of the Act, provided that the term "security" shall not include direct obligations of the
Government of the United States, bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements, and shares of registered open-end investment companies, other than investment
companies to which the Fund's investment adviser or any company in a control relationship to the Fund's investment adviser acts as the investment adviser or principal underwriter.</p>

<p style="margin-bottom: 0px">IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exempt Transactions</u></p>

<p style="margin-left: 50">The prohibitions described in <u>paragraph (A)</u> of <u>Article III</u> shall not apply to:</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(A)&nbsp; purchases or sales effected in any account over which the Covered Person has (i) no direct or indirect influence or control or (ii) given discretionary investment authority to an
independent third party;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(B)&nbsp; purchases or sales of securities of an issuer of the type in which the Fund does not typically invest;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C)&nbsp; purchases or sales that are non-volitional on the part of the Covered Person;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(D)&nbsp; transactions effected pursuant to a program (including a dividend reinvestment plan) in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment
accounts in accordance with a predetermined schedule and allocation (an "Automatic Investment Plan");</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(E)&nbsp; purchases effected upon the exercise of rights issued by an issuer pro rata to all holders of a class of its securities, to the extent such rights were acquired from the issuer, and sales
of such rights so acquired;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(F)&nbsp; purchases or sales of up to 500 shares of stock of issuers that are included in the calculation of the Standard &amp; Poor's 500 Composite Stock Index at the time of purchase or sale;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(G)&nbsp; purchases or sales for which the Covered Person has received prior approval from the Chief Compliance Officer of the Fund's investment adviser or such individual's designee (the
"<u>Compliance Officer</u>") in accordance with this Code; or</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(H)&nbsp; purchase or sales of securities issued under an employee stock purchase or incentive program of the Fund's investment adviser, unless such purchases or sales are otherwise restricted.</p>

<p style="margin-bottom: 0px">V.&nbsp;&nbsp;&nbsp; <u>Prior Approval for Non-Exempt Transactions</u></p>

<p style="text-indent: 50px; margin-bottom: 0px">A Covered Person shall not be required to obtain prior approval for any personal securities transaction that is exempt by <u>Article IV</u> hereof.&nbsp; In all other instances, upon written request from a Covered
Person as provided in <u>Article V(C)</u> below, the Compliance Officer shall have the sole discretion to pre-approve a personal securities transaction, and thereby exempt such transaction from the restrictions of this Code.&nbsp; The Compliance Officer shall make
such determination in accordance with the following:</p>

<p style="text-indent: 50; margin-left: 50">(A) Prior approval shall be granted only if a purchase or sale of securities is consistent with the purposes of this Code and Section 17(j) of the Act.&nbsp; To illustrate, a purchase or sale shall be considered consistent
with those purposes if such purchase or sale is only remotely potentially harmful to the Fund because such purchase or sale would be unlikely to affect a highly institutional market, or because such purchase or sale is clearly not related economically to the
securities held, purchased or sold by the Fund.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(B) Prior approval shall take into account, among other factors:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) whether the investment opportunity should be reserved for the Fund and its shareholders and whether the opportunity is being offered to the Covered Person by virtue of the Covered Person's
position with the Fund;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) whether the amount or nature of the transaction or person making it is likely to affect the price or market for the security;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3) whether the Covered Person making the proposed purchase or sale is likely to benefit from purchases or sales being made or being considered by the Fund;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(4) whether the security proposed to be purchased or sold is one that would qualify for purchase or sale by the Fund; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(5) whether the transaction is non-volitional on the part of the individual, such as receipt of a stock dividend or a sinking fund call.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C) To obtain prior approval, Covered Persons must submit in writing a completed and executed Personal Trading Request for Pre-Clearance (a form of which is appended hereto as <u>Attachment B</u>),
which shall set forth the details of the proposed transaction.&nbsp; Approval of the transaction as described on such form shall be evidenced by the signature of the Compliance Officer thereon.&nbsp; A copy of all prior approval forms, with all required signatures,
shall be retained by the Compliance Officer.</p>

<p style="text-indent: 50; margin-left: 50">In any case where the Compliance Officer determines to grant prior approval for the acquisition by a Covered Person of securities in an initial public offering or a private placement transaction, he or she shall maintain a
record of the reasons supporting such determination and retain such record with the prior approval form in accordance with the provisions of <u>Article VII(I)(6)</u> below.&nbsp; In all other cases where prior approval is granted in accordance with this Code, the
Compliance Officer is not required to specify any reason for such determination.</p>

<p style="text-indent: 50">If approval is given to the Covered Person in accordance with this Code to engage in a securities transaction, the Covered Person is under an affirmative obligation to disclose that position if such Covered Person plays a material role in
the Fund's subsequent investment decision regarding the same issuer.&nbsp; In such circumstances, a review of the Fund's investment decision to purchase securities of the issuer by investment personnel with no personal interest in the issuer shall be conducted.</p>

<p style="text-indent: 50px; margin-bottom: 0px">Approval granted to the Covered Person in accordance with this Code is only valid through the business day next following the day such approval is given.</p>

<p style="margin-bottom: 0px">VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Reporting</u></p>

<p style="text-indent: 50; margin-left: 50">(A) I<u>nitial Holdings Reports</u>.&nbsp; Every Covered Person must submit a report (a form of which is appended as <u>Attachment C</u>) to the Compliance Officer not later than 10 days after the person becomes a Covered
Person.&nbsp; The report must contain the following information (current as of a date not more than 45 days prior to the date the person becomes a Covered Person):</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) the title, number of shares and principal amount of each security in which the Covered Person had any direct or indirect beneficial ownership when the person
became a Covered Person;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) the name of any broker, dealer or bank with whom the Covered Person maintained an account in which any securities were held for the direct or indirect benefit of the Covered Person as of the
date the person became a Covered Person; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3) the date that the report is submitted by the Covered Person.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(B) <u>Quarterly Transaction Reports</u>.&nbsp; Every Covered Person must submit a report (a form of which is appended as <u>Attachment D</u>) to the Compliance Officer not later than 15 days after
each calendar quarter containing:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px"><font face="Times New Roman" size="3">(1) the followin</font>g information about <u>any</u> transaction (other than a transaction effected pursuant to an Automatic Investment Plan) during the
quarter in which the Covered Person had any direct or indirect beneficial ownership:</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(a) the date of the transaction, the title, the interest rate and maturity date (if applicable), the number of shares and the principal amount of each security involved;</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(b)&nbsp; the nature of the transaction (<u>i.e.</u>, purchase, sale or any other type of acquisition or disposition);</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(c)&nbsp; the price at which the transaction was effected;</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(d)&nbsp; the name of the broker, dealer or bank with or through whom the transaction was effected;</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(e)&nbsp; the date that the report is submitted by the Covered Person;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) the following information about any account established by the Covered Person in which <u>any</u> securities were held during the quarter for the direct or indirect benefit of the Covered
Person:</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(a) the name of the broker, dealer or bank with whom the Covered Person established the account;</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(b) the date the account was established; and</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(c) the date that the report is submitted by the Covered Person.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C) <u>Annual Holdings Reports</u>.&nbsp; Every Covered Person must submit a report (a form of which is appended as <u>Attachment E</u>) to the Compliance Officer not later than January 30 of each
year containing the following information:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) the title, number of shares and principal amount of each security in which the Covered Person had any direct or indirect beneficial ownership as of December 31 of the preceding year;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) the name of any broker, dealer or bank with whom the Covered Person maintains an account in which any securities are held for the direct or indirect benefit of the Covered Person as of
December 31 of the preceding year;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3) the date that the report is submitted by the Covered Person; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(4) a certification by the Covered Person that he or she has read and understood the Code and has complied with the Code's requirements.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(D) <u>Exceptions from Reporting Requirements</u>.</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) A Covered Person shall not be required to include in any report made under this <u>Article VI</u> any transactions effected for, and securities held in, any account over which such person (i)
does not have any direct or indirect influence or control or (ii) has given discretionary authority to an independent third party.</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) Any person who is a Covered Person with respect to the Fund by virtue of being a director, but who is not an "interested person" (as defined in the Act) with respect to the Fund:</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(a) need not make an initial holdings report under <u>Article VI(A)</u> above or an annual report under <u>Article VI(C)</u> above; and</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(b) need not make a quarterly transaction report under <u>Article VI(B)</u> above unless such person, at the time of any transaction during the quarter, knew, or in the ordinary course of fulfilling
his or her official duties as a director of the Fund should have known, that the security such person purchased or sold is or was purchased or sold by the Fund or was being considered for purchase or sale by the Fund.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(E) Any report submitted to comply with the requirements of this <u>Article VI</u> may contain a statement that the report shall not be construed as an admission that the person making such report
has any direct or indirect beneficial ownership in the security to which the report relates.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(F) A Covered Person will be deemed to have complied with the requirements of <u>Article&nbsp;VI(B)</u> above by (i) causing to be sent to the Compliance Officer duplicate monthly brokerage
statements on all transactions required to be reported thereunder, or (ii) providing to the Compliance Officer the requisite information on all transactions required to be reported hereunder through a transaction monitoring system, which may or may not be automated,
each within the requisite time period and in a manner acceptable to the Compliance Officer.&nbsp; All Advisory Persons shall have duplicate monthly brokerage statements sent directly to the Compliance Officer.</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(G) A Covered Person shall immediately report any violations or potential violations of the Code of which he or she becomes aware to the Compliance Officer.&nbsp; No Covered Person will be terminated
from employment or otherwise retaliated against for making such a report.</p>

<p style="margin-left: 0px; margin-bottom: 0px">VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Administration and Procedural Matters</u></p>

<p style="text-indent: 50px; margin-left: 0px; margin-bottom: 0px">The Compliance Officer shall:</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(A)&nbsp; furnish a copy of this Code to each Covered Person;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(B)&nbsp; notify each Covered Person of his or her obligation to file reports as provided by this Code;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(C)&nbsp; report to the Board of Directors the facts contained in any reports filed with the Compliance Officer pursuant to this Code when any such report indicates that a Covered Person purchased or
sold a security held or to be acquired by the Fund;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(D)&nbsp; supervise the implementation of this Code by the Adviser and the enforcement of the terms hereof by the Adviser;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(E)&nbsp; determine whether any particular securities transaction should be exempted pursuant to the provisions of this Code;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(F)&nbsp; issue either personally or with the assistance of counsel as may be appropriate, any interpretation of this Code which may appear consistent with the objectives of Rule 17j-1 and this
Code;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(G)&nbsp; conduct such inspections or investigations as shall reasonably be required to detect and report any apparent violations of this Code to the Board of Directors of the Fund or any Committee
appointed by them to deal with such information;</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(H) furnish to the Board of Directors, no later than April 30 of each year, a written report that:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) describes any issues arising under this Code or related procedures since the last report to the Board of Directors, including, but not limited to:</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(a) information about material violations of this Code or related procedures,</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(b) sanctions imposed in response to such material violations,</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(c) the number of reports filed with the Compliance Officer pursuant to this Code during the preceding calendar year,</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(d) the failure during the preceding calendar year by any Covered Person to file a report pursuant to this Code when such a report should have been filed,</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(e) the number of such reports filed during the preceding calendar year that indicated that a Covered Person purchased or sold a security held or to be acquired by the Fund and</p>

<p style="text-indent: 50px; margin-left: 150px; margin-bottom: 0px">(f) such other matters as the Board of Directors may request; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) certifies that the Fund has adopted procedures reasonably necessary to prevent Covered Persons from violating this Code; and</p>

<p style="text-indent: 50px; margin-left: 50px; margin-bottom: 0px">(I)&nbsp; maintain and cause to be maintained in an easily accessible place, the following records:</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(1) a copy of any Code adopted pursuant to Rule 17j-1 which has been in effect during the past five (5) years;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(2) a record of any violation of any such Code that occurred during the current year and the past five (5) calendar years and of any action taken as a result of such violation;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(3) a copy of each report made by a Covered Person during the current year and the past five (5) calendar years as required by Rule 17j-1 and <u>Article VI</u> of this Code, including any
information provided in lieu of the reports under <u>Article VI(F)</u> above;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(4) a list of all persons, currently or within the past five (5) years, who are or were required to make reports pursuant to Rule 17j-1 under <u>Article VI</u> above, or who are or were responsible
for reviewing those reports, together with an appropriate description of their title or employment;</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(5) a copy of each report made by the Compliance Officer pursuant to <u>Article VII(H)</u> above during the current year and the past five (5) calendar years; and</p>

<p style="text-indent: 50px; margin-left: 100px; margin-bottom: 0px">(6) a record of any decision made during the current year and the past five (5) calendar years by the Compliance Officer, and the reasons supporting each such decision, to grant prior approval
pursuant to <u>Article V</u> of this Code for the acquisition by a Covered Person of securities in an initial public offering or a private placement transaction.</p>

<p style="margin-left: 0px; margin-bottom: 0px">VIII.&nbsp; <u>Sanctions</u></p>

<p style="text-indent: 50px; margin-left: 0px; margin-bottom: 0px">Upon discovering that a Covered Person has not complied with the requirements of this Code, the Board of Directors of the Fund or the Fund's investment adviser may impose on such Covered Person
whatever sanctions the Board deems appropriate, including, among other things, a letter of censure, suspension or termination of such Covered Person's position with the Fund and/or restitution of an amount equal to the difference between the price paid or received by
the Fund and the more advantageous price paid or received by such Covered Person.</p>

<p style="text-indent: 50px; margin-left: 0px; margin-bottom: 0px">The Board of Directors, in its discretion, may impose any of the sanctions set forth in this <u>Article VIII</u> for any violations of the requirements of this Code, including but not limited to, the
filing by any Covered Person of any false, incomplete or untimely reports contemplated by <u>Article VI</u> of the Code.</p>

<p style="margin-left: 0px; margin-bottom: 0px">IX. &nbsp;<u>Confidentiality</u></p>

<p style="text-indent: 50px; margin-left: 0px; margin-bottom: 0px">All information obtained from any Covered Person hereunder shall be kept in strict confidence, except that reports of securities transactions hereunder will be made available to the Securities and
Exchange Commission or any other regulatory or self-regulatory organization only to the extent required by law or<font face="Times New Roman" size="3"></font>regulation.</p>

<p style="margin-left: 0px; margin-bottom: 0px">X.&nbsp; <u>Other Laws, Rules and Statements of Policy</u></p>

<p style="text-indent: 50">Nothing contained in this Code shall be interpreted as relieving any Covered Person from acting in accordance with the provision of any applicable law, rule or regulation or any other statement of policy or procedure governing the conduct
of such person adopted by the Fund.</p>

<p style="margin-left: 0px; margin-bottom: 0px">XI.&nbsp; <u>Further Information</u></p>

<p style="text-indent: 50">If any person has any question with regard to the applicability of the provisions of this Code generally or with regard to any securities transaction or transactions, he or she should consult the Compliance Officer.</p>

<p style="margin-left: 0px; margin-bottom: 0px">XII. <u>Certification By Covered Persons</u></p>

<p style="text-indent: 50">All Covered Persons of the Fund must submit a certificate (the form of which is included as Section III of <u>Attachment C)</u> that they have read and understand this Code and recognize that as a Covered Person they are subject to the
terms of this Code.&nbsp; All Covered Persons of the Fund shall agree to certify on an annual basis that they have complied with the requirements of this Code and that they have disclosed or reported all personal securities transactions required to be disclosed or
reported pursuant to the requirements of this Code.</p>

<p>Dated: February 18, 2005.</p>
</div>

<p style="page-break-before: always"></p>

<div class="Section2" style="width: 654px; height: 707px">
<p align="center"><font face="Times New Roman" size="3"><u>Attachment A</u></font></p>

<p style="text-indent: 50">The term "beneficial ownership" as used in the attached Code of Ethics (the "<u>Code</u>") is to be interpreted by reference to Rule 16a-1 under the Securities Exchange Act of 1934, as amended (the "<u>Rule</u>"), except that the
determination of direct or indirect beneficial ownership for purposes of the Code must be made with respect to all securities that a Covered Person has or acquires.&nbsp; Under the Rule, a person is generally deemed to have beneficial ownership of securities
if:&nbsp; (1) the person, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares (a) voting power, which includes the power to vote, or to direct the voting of, the securities and/or (b) investment power,
which includes the power to dispose of, or to direct the disposition of, the securities; <u>and</u> (2) the person, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares a direct or indirect pecuniary
interest in the securities.&nbsp; A person is deemed to have voting and/or investment power with respect to securities within the meaning of the Rule if the person has the right to acquire beneficial ownership of the security within 60 days, including any right to
acquire the security; through the exercise of any option, warrant or right; through the conversion of a security; pursuant to the power to revoke a trust, discretionary account or similar arrangement; or pursuant to the automatic termination of a trust, discretionary
account or similar arrangement.</p>

<p style="text-indent: 50px; margin-bottom: 0px"><font face="Times New Roman" size="3">The term "pecuniary interest" in particular securities is generally defined in the Rule to mean the opportunity, directly or indirectly, to profit or share in any profit derived
from a transaction in the securities.&nbsp; A person is deemed to have an "indirect pecuniary interest" within the meaning of the Rule in any securities held by members of the person's immediate family sharing the same household, the term "immediate family" including
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law, as well as adoptive relationships.&nbsp; Under the Rule, an indirect pecuniary interest
also includes, among other things:&nbsp; a general partner's proportionate interest in the portfolio securities held by a general or limited partnership; a person's right to dividends that is separated or separable from the underlying securities; a person's interest
in certain trusts; and a person's right to acquire equity securities through the exercise or conversion of any derivative security, whether or not presently exercisable, the term "derivative security" being generally defined as any option, warrant, convertible
security, stock appreciation right or similar right with an exercise or conversion privilege at a price related to an equity security, or similar securities with, or value derived from, the value of an equity security.&nbsp; For purposes of the Rule, a person who is
a shareholder of a corporation or similar entity is <u>not</u> deemed to have a pecuniary interest in portfolio securities held by the corporation or entity, so long as the shareholder is not a controlling shareholder of the corporation or the entity and does not
have or share investment control over the corporation's or the entity's portfolio.</font></p>
</div>

<div style="width: 674px; height: 1081px">
<p style="page-break-before:always">
<p align="center"><b><u><font face="Arial" size="3">PERSONAL&nbsp; TRADING - REQUEST&nbsp; FOR&nbsp; PRE-CLEARANCE</font></u></b></p>

<p><b><font face="Arial" size="2"><u>PERSONAL &amp;
CONFIDENTIAL</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Fax</u>:&nbsp;&nbsp;Attn:&nbsp;&nbsp;Joyce&nbsp;Riegel&nbsp;312-630-2460&nbsp;<br>
 <u>Questions</u>:&nbsp; (312) 630-4641</font></b></p>

<p><b><font face="Arial" size="2">From: _________________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tel</font></b><font face="Arial" size="2">
: _______________________<br>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(print
name)</font></p>

<p><b><font face="Arial" size="2">Office Code: (circle one)&nbsp; CHI /
DEN&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return
Fax:&nbsp;&nbsp;____________ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>



<p style="margin-top: 0px; margin-bottom: 0px"><font face="Arial" size="2">In accordance with the Code of Ethics for the Fund, I hereby:</font></p>

<p style="margin-top: 0px; margin-bottom: 0px"><font face="Arial" size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No</font><font size="2" face="Arial">. of<br>
 &nbsp;&nbsp;_____&nbsp; request trade clearance for&nbsp;&nbsp;___________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shares&nbsp;&nbsp;______________<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stocks (common or preferred); bonds (coupon/maturity); options (strike/expiration)</font></p>

<p><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
____&nbsp;&nbsp;&nbsp;Purchase&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
____&nbsp;&nbsp;&nbsp;Sale&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ____&nbsp;&nbsp;&nbsp;Short&nbsp; Sale</font></p>

<p><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ____&nbsp;&nbsp;&nbsp;check here if proposed Purchase is in an Initial Public Offering.</font></p>

<p><font face="Arial" size="2">This trade to be placed to&nbsp;_______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; account #:
______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Name of Broker &ndash; Dealer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ______________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>

<p>&nbsp;____<font size="2" face="Arial"> request trade clearance for private placement of
&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font face="Arial" size="2">&nbsp;_____ request authorization to serve on Board of public
company:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
&nbsp;&nbsp;</font></p>

<p><font face="Arial" size="2">&nbsp;_____ notify of brokerage
account*&nbsp;&nbsp;<u>#&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;</u> Name of
broker/dealer:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p style="margin-top: 0px; margin-bottom: 0px"><font face="Arial" size="2">*If this is checked, please sign if you have requested the broker to provide duplicate confirmations and statements to Duff &amp; Phelps Investment Management's Compliance Officer.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature:<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font face="Arial" size="2">I am a:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</u> Portfolio
Manager&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> Advisory Person&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> Access Person</font></p>

<p><font face="Arial" size="2">I certify that:</font></p>



<table cellspacing="0" cellpadding="0" border="0">
<tr>
<td valign="top"><font face="Arial" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">I have received and read the Code within the past year and believe that the consummation of this transaction is consistent with the Code's policy of requiring disclosure, detection and avoidance of conflicts of interest in
personal trading activities.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">If approved, I will execute the trade within 1 business day of approval and have my broker-deliver confirmation of execution within 3 business days.</font></td>
</tr>
</table>

<p><font size="2" face=
"Arial">Signature:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;
Date:&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font size="2" face=
"Arial">APPROVED:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;
Date:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font size="2" face="Arial">NOT&nbsp; APPROVED/REASON:</font></p>

<div align="center">
<hr size="1" color="#000000">
</div>

<div align="center">
<hr size="1" color="#000000">
</div>

<div align="center">
<hr size="1" color="#000000">
</div>

<div align="center">
<hr size="1" color="#000000">
</div>

<p style="page-break-before: always"></p>

<p style="margin-top: 0px; margin-bottom: 24px" align="center"><b><font face="Arial" size="2">INITIAL REPORT OF&nbsp; PERSONAL&nbsp; SECURITIES&nbsp; HOLDINGS<br>
</font></b> <font face="Arial"><b>and CODE OF ETHICS CERTIFICATION</b></font></p>

<p style="margin-top: 0px; margin-bottom: 0px"><font face="Arial" size="2">FROM:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>

</u></font> <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Print Your Name</font></p>

<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>

<div><b><font face="Arial" size="2">Please provide the information requested under each section:</font></b></div>



<div>
<div>
<hr align="left" width="90%" size="2">
</div>
</div>

<p><b><u><font face="Arial" size="2">SECTION I.</font></u></b></p>

<table cellspacing="0" cellpadding="0" width="651" border="0">
<tr>
<td valign="top"><font face="Arial" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">The following securities are owned by me or members of my immediate family.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">Please include securities such as private placements.&nbsp; You do not need to include open-end mutual funds,&nbsp; unless Duff &amp; Phelps Investment Management Co. ("DPIM") or any company in a control relationship with
DPIM acts as investment adviser or principal underwriter to such mutual fund.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">In lieu of completing the table, you may check the box at the bottom of the table.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">If you hold <b><u>NO</u></b> securities, please write <b>"NONE"</b> in the table.</font></td>
</tr>
</table>

<p style="margin-left: 50px; margin-top: 0px; margin-bottom: 0px">&nbsp;</p>

<div align="left">
<table style="border-collapse: collapse" bordercolor="#111111" cellspacing="0" cellpadding="0" width="632" bgcolor="#ffffff" border="0">
<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-bottom: 36px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-bottom: 36px" align="left"><b><font face="Arial" size="3">NO. OF SHARES</font></b></p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-bottom: 36px" align="left"><b><font face="Arial" size="3">NAME OF SECURITY</font></b></p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-bottom: 36px" align="center"><b><font face="Arial" size="3">BROKER(S)</font></b></p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>

<tr>
<td style="border-right: 1px solid" valign="top" width="25">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="184">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="266">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
<td style="border: 1px solid" valign="top" width="153">
<p style="margin-top: 0px; margin-bottom: 0px">&nbsp;</p>
</td>
</tr>
</table>
</div>

<table cellspacing="0" cellpadding="0" width="632" border="0">
<tr>
<td valign="top" width="29">&nbsp;</td>
<td valign="top" width="12">&nbsp;</td>
<td width="591">&nbsp;</td>
</tr>

<tr>
<td valign="top" width="29"><font face="Arial" size="7">&#9633;</font></td>
<td valign="top" width="12"><font face="Arial" size="3">&nbsp;&nbsp;&nbsp;</font> </td>
<td width="591"><font face="Arial" size="2">I certify that I have instructed my broker to provide duplicate confirmations and periodic brokerage statements directly to you and that, except as listed above, there are no other holdings to report.</font></td>
</tr>
</table>
<p style="page-break-before:always">
<p><b><u><font face="Arial" size="2">SECTION II.</font></u></b></p>

<p align="center"><b><u><font face="Arial">BROKERAGE ACCOUNT LISTING</font></u></b></p>

<table cellspacing="0" cellpadding="0" width="632" border="0">
<tr>
<td valign="top" width="40"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="52"><font face="Arial">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="540"><font face="Arial">The following is a list of all my securities brokerage accounts.&nbsp; Be advised that the securities firms identified below have been instructed to provide duplicate confirmations and statements to the DPIM Compliance
Officer.&nbsp; If you need more space, please make and attach an additional copy of this form.&nbsp; Please print or type.</font></td>
</tr>

<tr>
<td valign="top" width="40"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="52"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="540"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top" width="40"><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="52"><font face="Arial">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top" width="540"><font face="Arial">If you do not have a securities brokerage account, please write <b><u>"NONE"</u></b> in the table.</font></td>
</tr>

<tr>
<td valign="top" width="40">&nbsp;</td>
<td valign="top" width="52">&nbsp;</td>
<td valign="top" width="540">&nbsp;</td>
</tr>
</table>

<div align="left">
<table style="border-collapse: collapse" bordercolor="#111111" height="238" cellspacing="0" cellpadding="0" width="632" border="2">
<tr>
<td valign="top" width="260" height="48">
<p style="margin-left: 2px"><font face="Arial" size="2">NAME, ADDRESS, AND TELEPHONE<br>
 NUMBER OF FIRM WHERE ACCOUNT IS<br>
 HELD (e.g. PaineWebber)</font></p>
</td>
<td valign="top" width="125" height="48">
<p align="center"><font face="Arial" size="2">ACCOUNT<br>
 NUMBER</font></p>
</td>
<td valign="top" width="103" height="48">
<p align="center"><font face="Arial" size="2">MANAGED<br>
 ACCOUNT?<br>
 Y/N</font></p>
</td>
<td valign="top" width="134" height="48">
<p align="center"><font face="Arial" size="2">ACCOUNT NAMES<br>
 (e.g. John Smith, IRA)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="260" height="37">
<p style="margin-left: 2px; margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="125" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="103" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="134" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="260" height="37">
<p style="margin-left: 2px; margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="125" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="103" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="134" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="260" height="37">
<p style="margin-left: 2px; margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="125" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="103" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="134" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="260" height="37">
<p style="margin-left: 2px; margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="125" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="103" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="134" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="260" height="37">
<p style="margin-left: 2px; margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="125" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="103" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="134" height="37">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>
</table>
</div>

<p><u><b><font face="Arial" size="2">SECTION III.</font></b></u></p>

<p><font face="Arial">I certify that I have read and understood the <b>Code of Ethics</b> and have complied, and shall continue to comply, with its terms.</font></p>

<p>&nbsp;</p>

<p><font face="Arial" size=
"2">Signature:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><b><font face="Arial">After you sign and date this form, please return this form to:</font></b></p>

<p><font face="Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Maureen Carney</b><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compliance Officer<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Duff &amp; Phelps Investment Management Co.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55 E. Monroe Street, 36<sup>th</sup> Floor<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chicago, IL 60603</font></p>
</div>

<div>
<p style="page-break-before: always"></p>

<p align="center"><b><font face="Arial" color="red" size="3">PLEASE BE ADVISED,<br>
 ONLY EMAIL RESPONSES FOR QUARTERLY REPORTING WILL BE ACCEPTED.</font></b></p>

<p align="center"><font face="Arial" color="black" size="3"><b>QUARTERLY SECURITIES TRANSACTIONS REPORT<br>
 For Period Ending:&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> , 200</b>__</font></p>

<p><font face="Arial" color="black" size="3">Please complete and return via email by<u><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</b></u> <u></u>to</font> <font face="Arial"><b><font
color="red">Reports, Code in the PXP mailbox</font></b><font color="black">.&nbsp;<br>
</font> <font color="green"><u>E-Sign and date at the bottom</u>.</font></font></p>

<p><b><font face="Arial" color="black" size="3">Please check all items below that apply:</font></b></p>

<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">

<font face="Arial" color="black" size="3">____&nbsp;</font></td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">
    <font face="Arial">From ______ <b>to</b> ______<b>,</b><font color="black"> neither I nor my immediate family members made reportable securities transactions.</font></font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">

<font face="Arial" color="black" size="3">____&nbsp;</font></td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">
    <font face="Arial">From ______ <b>to</b> ______<b>,</b><font color="black">
    I and/or my immediate family members made reportable securities transactions
    <b>through a broker</b>, and:</font></font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">
    &nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">
    &nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">
    ____</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">
    <font face="Arial">I and/or my immediate family members made reportable
    securities transactions <b>through a broker,</b> and:</font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">
    &nbsp;</td>
    <td width="1%" style="border-style: none; border-width: medium" valign="top">
    ____</td>
    <td width="164%" style="border-style: none; border-width: medium" valign="top">
    <font face="Arial">A.&nbsp; I <b>have advised</b> Compliance of my brokerage account(s) and any brokerage account(s) of my immediate family members, and<b>&nbsp;I have instructed</b> the broker(s)
    to send duplicate confirms and statements to the Compliance Dept.</font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">
    &nbsp;</td>
    <td width="7%" style="border-style: none; border-width: medium" valign="top">
    ____<p>&nbsp;</td>
    <td width="85%" style="border-style: none; border-width: medium" valign="top">
    <font face="Arial">B.&nbsp; I <b>have not yet advised</b> Compliance of my brokerage account(s) or any brokerage account(s) of my immediate family members, and&nbsp;<b>I have not yet instructed</b> the broker(s)
    to send duplicate confirms and statements to the Compliance Dept. (see below
    for additional instructions) </font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2"><b>
    <font face="Arial">If you selected "B" above, please reply to this email and request A Quarterly Securities Transactions Reporting Form.
    </font></b><font color="red"><b> <font face="Arial">Upon receipt of the form, fill in as necessary and EMAIL your reply to Maureen Carney or Reports, Code in the PXP mailbox.</font></b></font><font face="Arial" color="black">&nbsp;
    You may also request a form by calling Maureen Carney at&nbsp;312-630-4605.</font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">
    ____<p>&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2"><font face="Arial" color="black">
    From ______ <b>to</b> ________<b>,&nbsp;</b> <font color="black">I and/or my immediate family members made reportable securities transactions that <b><i>would not be included
on a brokerage statement</i></b> (for example, a direct purchase from an issuer or a private placement or limited partnership transaction).&nbsp; (see below for additional instructions)</font></font></td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="8%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="92%" style="border-style: none; border-width: medium" colspan="2"><b><font face="Arial" color="black" size="3">If you selected this last item, please reply to this email and request a Quarterly Securities Transactions Reporting Form</font></b><font face="Arial"><font color="black">.</font> <b><font color=
"red">Upon receipt of the form, fill in as necessary and EMAIL your reply to Maureen Carney or Reports, Code in the PXP mailbox.</font></b><font color="red">&nbsp;</font> <font color="black">You may also request a form by calling Maureen Carney at
312-630-4605</font></font></td>
  </tr>
</table>

<font face="Arial" color="black" size="3">&nbsp;</font>&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;

<p><b><font face="Arial" color="black" size="3">Signature:</font></b><font face="Arial" color="black">&nbsp;
<u> <b>Please type your name
here</b></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Date:
<u>Please type date executed here</u></b></font></p>
</div>

<div style="width: 674px; height: 2406px">
<p style="page-break-before:always">
<p style="margin-top: 0px; margin-bottom: 0px" align="center"><font face="Arial" size="3">Attachment E</font></p>

<div align="center">
<table cellspacing="0" cellpadding="0" border="1">
<tr height="37">
<td valign="top" height="37">
<p style="margin-top: 0px; margin-bottom: 0px" align="center"><b><font face="Arial" color="red" size="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FORM MUST BE RETURNED WITH A MANUAL EXECUTION, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
 &nbsp;&nbsp;FAXES AND EMAILS WILL NOT BE ACCEPTED&nbsp;&nbsp;</font></b></p>
</td>
</tr>
</table>
</div>



<p style="margin-top: 0px; margin-bottom: 0px" align="center"><b><font face="Arial" size="3">ANNUAL&nbsp; REPORT OF&nbsp; PERSONAL&nbsp; SECURITIES&nbsp; HOLDINGS<br>
 and CODE OF ETHICS CERTIFICATION</font></b><font face="Arial"><br>
 January __, 200_</font></p>

<p style="margin-top: 0px; margin-bottom: 0px"><font face="Arial" size="2">FROM:&nbsp;&nbsp;___________________________________________<b><u><br>
</u></b></font>  <font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; Print Your Name<br>
&nbsp;</font></p>



<p style="margin-bottom: 10px; margin-top:0"><b><u><font face="Arial" size="2">Please provide the information requested under each section.</font></u></b></p>

<p style="margin-top: 0px; margin-bottom: 0px"><b><u><font face="Arial" size="2">SECTION I -</font></u></b> <font face="Arial"><b><u><font size="2">Brokerage Account Listing:</font></u></b></font></p>

<table cellspacing="0" cellpadding="0" border="0">
<tr>
<td valign="top"><font face="Arial" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">The following is a list of all my securities brokerage accounts.&nbsp; Be advised that the securities firms identified below have been instructed to provide duplicate confirmations and statements to DPIM Compliance.&nbsp;
(If you need more space, please make and attach an additional copy of this form)&nbsp; Please print or type.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">If you do not have a securities brokerage account, please write "NONE" in the table.</font></td>
</tr>
</table>

<div align="center">
<table cellspacing="0" cellpadding="0" width="674" border="1">
<tr>
<td valign="top" width="305"><b><font face="Arial" size="2">NAME , ADDRESS, AND TELEPHONE<br>
 NUMBER OF FIRM WHERE ACCOUNT IS<br>
 HELD (e.g. PaineWebber)</font></b></td>
<td valign="top" width="109">
<p align="center"><b><font face="Arial" size="2">ACCOUNT<br>
 NUMBER</font></b></p>
</td>
<td valign="top" width="102">
<p align="center"><b><font face="Arial" size="2">MANAGED<br>
 ACCOUNT?<br>
 Y/N</font></b></p>
</td>
<td valign="top" width="148">
<p align="center"><b><font face="Arial" size="2">ACCOUNT NAMES<br>
 (e.g. John Smith, IRA)</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="305">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="109">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="102">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="148">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="305">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="109">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="102">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="148">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="305">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="109">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="102">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="148">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="305">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="109">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="102">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="148">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>
</table>
</div>

<p style="margin-bottom: 0px"><b><u><font face="Arial" size="2">SECTION II &ndash; Holdings:</font></u></b></p>

<table cellspacing="0" cellpadding="0" border="0">
<tr>
<td valign="top"><font face="Arial" size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">The following securities are owned by me or members of my immediate family as of 12/31/2002.&nbsp; Please include securities such as private placements.&nbsp; You do not need to include open-end mutual funds., unless DPIM
or any company in a control relationship with DPIM acts as investment adviser or principal underwriter to such mutual fund.</font></td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
</tr>

<tr>
<td valign="top"><b><font face="Arial" size="2">2.</font></b><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><b><font face="Arial" size="2">In lieu of completing the table, you may check the box at the bottom of the table.</font></b></td>
</tr>

<tr>
<td valign="top"><b><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> </td>
<td valign="top"><b><font face="Arial" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> </td>
</tr>

<tr>
<td valign="top"><font face="Arial" size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> </td>
<td valign="top"><font face="Arial" size="2">If you hold NO securities, please write "NONE" in the table.</font></td>
</tr>

<tr>
<td valign="top">&nbsp;</td>
<td valign="top">&nbsp;</td>
</tr>
</table>

<table cellspacing="0" cellpadding="0" width="100%" border="1">
<tr>
<td valign="top">
<p align="left"><b><font face="Arial" size="2">NUMBER OF SHARES</font></b></p>
</td>
<td valign="top">
<p align="left"><b><font face="Arial" size="2">NAME OF SECURITY</font></b></p>
</td>
<td valign="top">
<p align="center"><b><font face="Arial" size="2">PRINCIPAL<br>
 AMOUNT</font></b></p>
</td>
<td valign="top">
<p align="center"><b><font face="Arial" size="2">BROKER(S)</font></b></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>
</table>

<table cellspacing="0" cellpadding="0" border="0">
<tr>
<td valign="top">
<p style="margin-top: 0"><font face="Arial" size="7">&#9633;</font></p>
</td>
<td valign="top">
<p style="margin-top: 0"><font face="Arial" size="3">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td>
<p style="margin-top: 0"><font face="Arial" size="2">I certify that I have instructed my broker to provide duplicate confirmations and periodic brokerage statements directly to you and that, except as listed above, there are no other holdings to report.</font></p>
</td>
</tr>
</table>



<p style="margin-top: 0"><b><font face="Arial" size="2"><br>
SECTION III</font></b><font face="Arial"><b><font size="2">&ndash; Execution:<br>
</font></b> <font size="2">I certify that I have read and understood the <b>Code of Ethics</b> and have complied, and shall continue to comply, with its terms.</font></font></p>

<p style="margin-top: 0"><font face="Arial" size=
"2">Signature:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
&nbsp;&nbsp;&nbsp; Date: ______________________________</font></p>

<p style="margin-top: 0; margin-bottom: 0"><b><font face="Arial" color="blue" size="3">After you sign and date this form, please return this form by January 30, 200_ to:</font></b></p>

<div style="width: 674px; height: 166px">
<p style="page-break-before: always"></p>

<p align="center"><b><font face="Arial" color="#0000ff">Attachment E</font></b></p>

<p align="center"><font face="Arial" size="1">Compliance Department &ndash; Joyce Riegel<br>
 Duff &amp; Phelps Investment Management Co.<br>
 55 East Monroe Street, 36th Floor<br>
 Chicago, IL 60603</font></p>

<p>&nbsp;</p>
</div>

<p style="page-break-before: always"></p>

<p style="margin-top: 0px; margin-bottom: 0px" align="center"><font face="Arial" size="3">Attachment E<br>
</font><b><font face="Arial" size="3">ANNUAL&nbsp; REPORT OF&nbsp; PERSONAL&nbsp; SECURITIES&nbsp; HOLDINGS<br>
 and CODE OF ETHICS CERTIFICATION<br>
</font></b> <font face="Arial">January ___, 200_</font></p>



<p style="margin-bottom: 18px" align="center"><b><u><font face="Arial" size="2">SECTION I -</font></u></b> <font face="Arial"><b><u><font size="2">Brokerage Account Listing:</font></u></b> <b><u>&nbsp;</u></b> <b><u><font size="2">Additional
Form</font></u></b></font></p>

<div align="center">
<table style="border-collapse: collapse" bordercolor="#111111" cellspacing="0" cellpadding="0" width="594" bgcolor="#ffffff" border="1">
<tr>
<td valign="top" width="264">
<p style="margin-left: 2px"><font face="Arial" size="2">NAME, ADDRESS, AND TELEPHONE<br>
 NUMBER OF FIRM WHERE ACCOUNT IS<br>
 HELD (e.g. PaineWebber)</font></p>
</td>
<td valign="top" width="63">
<p style="margin-left: 2px"><font face="Arial" size="2">ACCOUNT<br>
 NUMBER</font></p>
</td>
<td valign="top" width="71">
<p style="margin-left: 2px"><font face="Arial" size="2">MANAGED<br>
 ACCOUNT?<br>
 Yes / No</font></p>
</td>
<td valign="top" width="186">
<p style="margin-left: 2px"><font face="Arial" size="2">ACCOUNT NAMES<br>
 (e.g. John Smith,<br>
 IRA)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

<tr>
<td valign="top" width="264">
<p style="margin-bottom: 24px"><br>
&nbsp;</p>
</td>
<td valign="top" width="63">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="71">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
<td valign="top" width="186">
<p style="margin-bottom: 24px">&nbsp;</p>
</td>
</tr>

</table>
</div>
</div>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2R CODE ETH
<SEQUENCE>4
<FILENAME>exhib_r2.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<!-- saved from url=(0074)file://O:\Edgar\Data\DNP%20Select%20Income%20Fund\Year%202005\exhib_r2.htm -->
<HTML><HEAD><TITLE>Exhibit R2</TITLE>
<META content="Microsoft FrontPage 5.0" name=GENERATOR></HEAD>
<BODY>
<DIV>
<P align=right>Exhibit r.2</P>
<P align=center><B><U>DUFF &amp; PHELPS INVESTMENT MANAGEMENT CO.<BR><BR>AMENDED
AND RESTATED<BR>CODE OF ETHICS (January 3, 2005)</U></B></P>
      <P>1.&nbsp;&nbsp; <U>Standard of Business Conduct</U></P>
      <P style="margin-left: 25">Supervised Persons covered by the terms of this
      Code of Ethics must adhere to the
      following general principles as well as to the Code's specific
      provisions:</P>
      <P align="left" style="margin-left: 50">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At all times, the
      interests of Adviser Clients must be paramount;</P>
      <P align="left" style="margin-left: 50">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal
      transactions must be conducted consistent with this Code of Ethics in a
      manner that avoids any actual or potential conflict of interest;
  and</P>
<p style="margin-left: 50">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No
inappropriate advantage should be taken of any position of trust and
responsibility; and</p>
      <P style="margin-left: 50">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Information concerning the identity of security holdings and financial
      circumstances of clients is confidential.</P>
      <P>2.&nbsp;&nbsp;&nbsp;<U>Definitions</U></P>
<p style="margin-left: 50">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Supervised
Persons include directors, officers, and partners of the adviser (or other
persons occupying a similar status or performing similar functions); Employees
of the adviser; and Any other person who provides advice on behalf of the
adviser and is subject to the adviser's supervision and control.</p>
      <P style="margin-left: 50">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &quot;Access Person&quot; means any director, officer,
      general partners and partners of the adviser (or other persons occupying a
      similar status or performing similar functions), has access to nonpublic
      information regarding any clients' purchase or sale of securities, or
      nonpublic information regarding the portfolio holdings of any fund the
      adviser or its control affiliates manage or is involved in making
      securities recommendations to clients, or has access to such
      recommendations that are non-public, or Advisory Person of the Adviser.
      The Compliance Department shall maintain a list of the Adviser's Access
      Persons.></P>
      <P style="margin-left: 50">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Adviser&quot; means Duff
      &amp; Phelps Investment Management Co.</P>
      <P style="margin-left: 50">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Advisory Person"
      means&nbsp; (i) any employee of the Adviser or of any company in a control
      relationship to the Adviser, who, in connection with his regular functions
      or duties, makes, participates in or obtains information regarding the
      purchase or sale of a security by the Adviser for the Client, or whose
      functions relate to the making of any recommendations with respect to such
      purchases or sales; and (ii) any natural person in a control relationship
      to the Adviser who obtains information concerning recommendations made to
      the Client with regard to the purchase or sale of a security. This
      grouping customarily includes the Portfolio Manager and other investment
      personnel comprising an investment team, such as an analyst or trader, who
      provide information and advice that enter into the investment decision to
      buy or sell a security for a Client.</P>
      <P style="margin-left: 50">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A security is "being
      considered for purchase or sale" when a recommendation to purchase or sell
      a security has been made and communicated and, with respect to the
      Advisory Person making the recommendation, when such person seriously
      considers making such a recommendation.</P>
      <P style="margin-left: 50">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Beneficial
      ownership" shall be interpreted in the same manner as it would be under
      Rule 16a-1(a)(2) under the Securities Exchange Act of 1934 in determining
      whether a person is the beneficial owner of a security for purposes of
      Section 16 of the Securities Exchange Act of 1934 and the rules and
      regulations thereunder.
      An Access
      person is presumed to be a beneficial owner of securities that are held by
      his or her immediate family members sharing the access person's household.</P>
      <P style="margin-left: 50">G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Client means each and every investment company, or series thereof, or
      other account managed by the Adviser, individually and collectively.</P>
<p style="margin-left: 50">H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Control" shall have the
      same meaning as that set forth in Section 2(a)(9) of the Investment
      Company Act, as amended.</p>
<p style="margin-left: 50">I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Initial Public Offering"
      means a public sale of an issue not previously offered to the
    public.</p>
<p style="margin-left: 50">J.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Managed Fund
or Portfolio&quot;
      shall mean those Clients, individually and collectively, for whom the
      Portfolio Manager makes buy and sell decisions.</p>
      <P style="margin-left: 50">K.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Portfolio
      Manager" means the person (or one of the persons) entrusted with&nbsp; the
      day-to-day management of the&nbsp;Client's portfolio.</P>
      <P style="margin-left: 50">L.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Private Placement" shall
      have the same meaning as that set forth in Section 4(2) of the Securities
      Exchange Act.</P>
      <P style="margin-left: 50">M.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; "Purchase or sale of
      a security" includes <U>inter alia</U>, the writing of an option or the
      purchase or sale of a security that is exchangeable for or convertible
      into, a security that is held or to be acquired for a Client.</P>
      <P style="margin-left: 50">N.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &quot;Security&quot;
      shall have the meaning set forth in Section 2(a)(36) of the Investment
      Company Act, as amended, and Rule 204A-1 as amended, except that it shall
      not include transactions and holdings in direct obligations of Government
      of the United States; money market instruments; bankers' acceptances, bank
      certificates of deposit, commercial paper, repurchase agreements and other
      high quality short-term debt instruments; shares of money market funds;
      transactions and holdings in shares of other mutual funds, unless the
      adviser or a control affiliate acts as the investment adviser or principal
      underwriter for the fund; and transactions in units of unit investment
      trust if the unit investment trust is invested exclusively in unaffiliated
      mutual funds.</P>
      <P>3.&nbsp;&nbsp; <U>Exempted Transactions</U></P>
      <P style="margin-left: 25">The prohibitions of Section 4 of this Code shall not apply
to:</P>
      <P style="margin-left: 50">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases or sales
      effected in any account over which the Access Person has no direct or
      indirect influence or control in the reasonable estimation of the
      Compliance Officer.</P>
      <P style="margin-left: 50">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases or sales
      of securities (1) not eligible for purchase or sale by the Client; or (2)
      specified from time to time by the Directors, subject to such rules, if
      any, as the Directors shall specify.</P>
      <P style="margin-left: 50">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases or sales which
      are non-volitional on the part of either the Access Person or the
      Client.</P>
      <P style="margin-left: 50">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of shares
      necessary to establish an automatic dividend reinvestment plan or pursuant
      to an automatic dividend reinvestment plan, and subsequent sales of such
      securities.</P>
      <P style="margin-left: 50">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases effected
      upon the exercise of rights issued by an issuer pro rata to all holders of
      a class of its securities, to the extent such rights were acquired from
      such issuer, and sales of such rights so acquired.</P>
      <P style="margin-left: 50">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase or sale of
      securities issued under an employee stock purchase or incentive program
      unless otherwise restricted.</P>
<p style="margin-left: 50">G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Transactions effected pursuant to an automatic investment plan.</p>
      <P>4.&nbsp;&nbsp;&nbsp;<U>Prohibited Activities</U></P>
      <P style="margin-left: 50">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IPO Rule: No Access Person
      may purchase securities in an Initial Public Offering, except with the
      prior approval of the Compliance Department. This rule also applies to
      IPO's offered through the Internet.</P>
      <P style="margin-left: 50">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Private Placement
      Rule: No Access Person may purchase securities in a Private Placement
      unless such purchase has been approved by the Compliance Department.&nbsp;
      Any such approved purchase should be disclosed to the Client if that
      issuer's securities are being considered for purchase or sale by the
      Client.&nbsp;</P>
      <P style="margin-left: 50">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-Clearance Rule: No
      Access Person may purchase or sell a security unless such purchase or sale
      has been pre-cleared by the Compliance Department. Pre-clearance is required
      prior to executing a trade through a personal Internet brokerage account.
      Pre-clearance is required for transactions in puts, calls and well-known
      stock indices (e.g. the S&amp;P 500).&nbsp;&nbsp; Pre-clearance is valid
      through the business day next following the day pre-clearance is
    given.</P>
      <P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Exceptions: The following securities transactions do not require
      pre-clearance:</P>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="100%" id="AutoNumber1">
  <tr>
    <td width="21%" valign="top" style="border-style: none; border-width: medium">
    <p style="margin-left: 100">1. </td>
    <td width="79%" style="border-style: none; border-width: medium" valign="top">Purchases
    or sales of up to 500 shares of securities of issuers ranked in the Standard
    &amp; Poor's 500 Composite Stock Index (S&amp;P 500) at the time of purchase or
    sale.&nbsp; The Compliance Department maintains this list on the Intranet
    web site and updates it after the end of each quarter.</td>
  </tr>
  <tr>
    <td width="21%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="79%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="21%" valign="top" style="border-style: none; border-width: medium">
    <p style="margin-left: 100">2.</td>
    <td width="79%" style="border-style: none; border-width: medium">Purchase orders sent directly to the issuer via mail (other than in
      connection with a Private Placement) or sales of such securities which are
      redeemed directly by the issuer via mail.</td>
  </tr>
  <tr>
    <td width="21%" valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="79%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="21%" valign="top" style="border-style: none; border-width: medium">
    <p style="margin-left: 100">3.</td>
    <td width="79%" style="border-style: none; border-width: medium">
    Transactions effected pursuant to an automatic investment plan.</td>
  </tr>
</table>
      <P style="margin-left: 50"><B>Note:&nbsp; The Compliance Department may deny approval of any
      transaction requiring preclearance under this Preclearance Rule, even if
      nominally permitted under this Code of Ethics, if it is believed that
      denying preclearance is necessary for the protection of the Adviser. Any
      such denial may be appealed to the Adviser's Counsel.&nbsp; The decision
      of Counsel shall be final.</B></P>
      <P style="margin-left: 50">D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Open Order Rule: No Access
      Person may purchase or sell, directly or indirectly, any security in which
      he has, or by reason of such transaction acquires, any direct or indirect
      beneficial ownership, when the Client has a pending "buy" or "sell" order
      for that security of the same type (i.e. buy or sell) as the
      proposed personal trade, until the Client's order is executed or
      withdrawn.</P>
      <P style="margin-left: 50">Exceptions: The following securities transactions are exempt from the
      Open Order Rule:</P>
      <P style="margin-left: 100">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases or sales of securities of issuers in the S&amp;P 500 at the
      time of the transaction.</P>
      <P style="margin-left: 100">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases or sales approved by the Compliance Department in his/her
      discretion.</P>
      <P style="margin-left: 50"><B>Any profits realized on a personal trade in violation of this
      Section 4D must be disgorged.</B></P>
      <P style="margin-left: 50">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blackout Rule: If a
      Portfolio Manager's Managed Fund holds a security that is the subject of a
      proposed personal trade by that Portfolio Manager, such personal trade may
      be permitted only as follows:</P>
      <P style="margin-left: 100">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the proposed
      personal trade is on the same side as the last portfolio transaction in
      that security, the personal trade cannot occur within two days of such
      transaction (i.e. neither at T nor T + 1 calendar
  day).</P>
      <P style="margin-left: 100">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the proposed
      personal trade is on the opposite side of the last portfolio
      transaction in that security, the personal trade cannot occur unless (a)
      it is more than two days after the portfolio transaction (i.e. T + 2
      calendar days or later) <B><I>and</I></B> (b) the Preclearance Request, if
      required for such personal transaction (i.e. it is not eligible for the
      exception of securities listed in the S&amp;P 500 to the Preclearance
      Rule) sets forth, to the reasonable satisfaction of the Compliance
      Department, an explanation of the reasons the portfolio is not
      effecting a similar transaction.&nbsp;</P>
<p style="margin-left: 100">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Portfolio Managers of Mutual Funds may not directly or indirectly acquire or
dispose of beneficial ownership in a covered security within seven calendar days
before and after a Fund portfolio trades in that security.</p>
      <P style="margin-left: 50"><B>Any profits realized by a Portfolio Manager on a personal trade in
      violation of this Section 4E must be disgorged.</B></P>
      <P style="margin-left: 50">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Holding Period
      Rule: Access Persons must hold each Security, for a period of not less
      than sixty (60) days, whether or not the purchase of such Security was an
      exempt transaction under any other provision of Section 4.</P>
      <P style="margin-left: 50">G.&nbsp;&nbsp;&nbsp;&nbsp;No Access Person shall accept any gift or other item of more than $100
      in value from any person or entity that does business with or on behalf of
      the Client or the Adviser.</P>
      <P style="margin-left: 50">H.&nbsp;&nbsp;&nbsp;&nbsp;No Advisory Person shall serve on the board of directors of a publicly
      traded company without prior authorization from Counsel or the Compliance
      Department.&nbsp; If board service is authorized, such Advisory Person
      shall have no role in making investment decisions with respect to the
      publicly traded company.</P>
      <P style="margin-left: 50">I.&nbsp;&nbsp;&nbsp;&nbsp; No Portfolio Manager shall engage in excessive trading or market timing
      activities with respect to any mutual fund whether or not such mutual fund
      is managed by such Adviser/Sub-advisor or any affiliated
      adviser/sub-advisor. For the purposes of the foregoing, "market timing"
      shall be defined as a purchase and redemption, regardless of size, in and
      out of the same mutual fund within any sixty (60) day period.&nbsp; The
      foregoing restrictions shall not apply to Portfolio Managers investing in
      mutual funds through asset allocation programs, automatic reinvestment
      programs, 401(k) and similar retirement accounts and any other
      non-volitional investment vehicles.&nbsp; Portfolio Managers shall provide
      quarterly certifications as to their compliance with this
    restriction.</P>
      <P style="margin-left: 50">J.&nbsp;&nbsp;&nbsp;&nbsp;No Advisory Person shall divulge or act upon any material, non-public
      information, as such term is defined under relevant securities laws.</P>
      <P>5.&nbsp;&nbsp;&nbsp;<U>Compliance Procedures</U></P>
      <P style="margin-left: 50">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Access Persons shall
      direct their brokers to supply, at the same time that they are sent to the
      Access Person, a copy of the confirmation for each personal securities
      trade and a copy of each periodic account statement to the&nbsp;
      Compliance Department.</P>
      <P style="margin-left: 50">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Every Access Person
      shall report to the Adviser the information described in Section 5C of
      this Code with respect to transactions in any security in which such
      Access Person has, or by reason of such transaction acquires, any direct
      or indirect beneficial ownership in the security; provided, however, that
      an Access Person shall not be required to make a report with respect to
      transactions effected for any account over which such person does not have
      any direct or indirect influence.</P>
      <P style="margin-left: 50">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Every report required
      pursuant to Section 5B above shall be made not later than 15 days after
      the end of the calendar quarter in which the transaction to which the
      report relates was effected, and shall contain the following
      information:</P>
<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse; border-width: 0" bordercolor="#111111" width="100%" id="AutoNumber2">
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">
      <P style="margin-left: 100">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
    </td>
    <td valign="top" style="border-style: none; border-width: medium">The date
    of the transaction, the title and the number of shares, and the principal
    amount of each security involved;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">
      <P style="margin-left: 100">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
    </td>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;The
    nature of the transaction (i.e., purchase, sale, or any other type of
    acquisition or disposition);</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">
      <P style="margin-left: 100">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
    </td>
    <td valign="top" style="border-style: none; border-width: medium">The price
    at which the transaction was effected;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">
      <P style="margin-left: 100">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
    </td>
    <td valign="top" style="border-style: none; border-width: medium">The name
    of the broker, dealer or bank with or through whom the transaction was
    effected; and</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
    <td valign="top" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top" style="border-style: none; border-width: medium">
      <P style="margin-left: 100">(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </P>
    </td>
    <td valign="top" style="border-style: none; border-width: medium">The date
    of approval of the transaction and the person who approved it as required by
    Section 4B or C above.</td>
  </tr>
</table>
      <P style="margin-left: 50">E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Each Access Person shall submit a report listing all personal securities
      holdings to the Compliance Department upon the commencement of service and
      annually thereafter. This information must be current as of a date not
      more than 45 days prior to the date the individual becomes an access
      person or, for an annual report the date the report is submitted. The
      annual report shall be as of December 31 and include a certification by
      the Access Person that he or she has read and understood the Code of
      Ethics and has complied with the Code's requirements. The annual report
      and certification will be submitted to the Compliance Department by
      January 30. Any Phoenix mutual fund, open or closed must be disclosed
      including those held in your 401K plan. If you do not own Phoenix funds in
      your 401K plan you do not need to disclose your mutual fund holdings</P>
      <P style="margin-left: 50">F.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any report made
      under this Section 5 may contain a statement that the report shall not be
      construed as an admission by the person making such report that he or she
      has any direct or indirect beneficial ownership in the security to which
      the report relates.</P>
      <P style="margin-left: 50">G.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Compliance Officer
      shall submit an annual report to the Adviser's Fund Board of Directors that
      summarizes the current Code of Ethics procedures, identifies any
      violations requiring significant remedial action, and recommends
      appropriate changes to the Code, if any.</P>
      <P style="margin-left: 50">H.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any Access Person shall
      immediately report any potential violation of this Code of which he or she
      becomes aware to the&nbsp;Compliance Department. No employee will be
      terminated or otherwise retaliated against for submitting any potential
      violations of this Code.</P>
      <P>6.&nbsp;&nbsp; <U>Sanctions</U></P>
      <P style="margin-left: 25">Upon discovering a violation of this Code, the
      Parent of the Adviser or if applicable the Funds Board of Directors, in addition to any remedial action already taken by the
      respective adviser or related entity, may impose such sanctions as it
      deems appropriate, including <U>inter alia</U>, a letter of censure or
      suspension or termination of employment, or suspension of personal trading
      privileges for such period as it may deem appropriate.</P></DIV></BODY></HTML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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