(i) a banking institution or trust company holding securities itself or in a securities depository or clearing agency which acts as a securities depository; or
(ii) a securities depository or clearing agency which acts as a securities depository.
(b) For purposes of the appointment of a foreign entity as agent, the term "banking institution or trust company" shall mean an entity which is:
(i) regulated by the relevant regulatory authority in that jurisdiction and has shareholders equity of not less than one hundred million dollars; or
(ii) a branch of, or a majority-owned direct or indirect subsidiary of, a domestic bank, trust company or private banker eligible to be authorized to have custody of securities under this section.
(c) For purposes of the appointment of a foreign entity as agent, the term "securities depository or clearing agency which acts as a securities depository" shall mean an entity which:
(i) is regulated by the relevant national regulatory authority in that jurisdiction;
(ii) is operated pursuant to the charter and by-laws of any company or association organized as a securities depository or clearing agency which operates a system for the central handling of securities or equivalent book entries; or
(iii) may be used as a securities depository or clearing agency which acts as a securities depository by an investment company (as defined by an act of congress entitled the "Investment Company Act of 1940").
(d) Registration of foreign securities may be in the name of any such foreign entity or its nominee, provided that the books and records of the domestic bank, trust company or private banker which made the appointment of the foreign entity shall show, at all times, the beneficial ownership of the fund.
(e) A domestic bank, trust company or private banker which has custody of foreign securities of such fund shall be absolutely liable for any loss with respect to such securities which is occasioned by its acts, the acts of its agent, the acts of its nominee or its agent's nominee or the acts of any foreign entity appointed by it or any such foreign entity's agent or nominee.
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