Custodian

The Board shall engage one or more custodians to assume responsibility for the physical possession of fund assets or evidences of assets.

(a)The custodian shall submit such reports, accountings and other information in such form and at such times as requested by the Board. All costs incurred for custodial services shall be a direct charge to Investment Income. CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(b)The custodian shall hold all assets for the account of the Government of Guam Retirement Fund and shall act only upon the instructions of the Board, its ex-officio director, or a member, committee or agent so authorized by the Board.

(c)No custodian shall be engaged unless it:

(1)has been continuously engaged in rendering custody services for a period of ten

(10)or more years; and

(2)is organized under the laws of the United States or a state or territory thereof; and

(3)has Tier 1 capital in excess of One Billion Dollars ($1,000,000,000); and

(4)is a member of the Federal Reserve System whose deposits are insured by the Federal Deposit Insurance Corporation or any successor thereto; or

(5)notwithstanding any of the above, any locally chartered bank may be a custodian of the Retirement Fund.