(1) All custodian agreements and sub-custodian agreements of an investment fund must provide for
(a) the location of portfolio assets,
(b) any appointment of a sub-custodian,
(c) requirements concerning lists of sub-custodians,
(d) the method of holding portfolio assets,
(e) the standard of care and responsibility for loss, and
(f) requirements concerning review and compliance reports.
(2) A sub-custodian agreement concerning the portfolio assets of an investment fund must provide for the safekeeping of portfolio assets on terms consistent with the custodian agreement of the investment fund.
(2.1) An agreement referred to under subsections (1) and (2) must comply with the requirements of this Part.
(3) A custodian agreement or sub-custodian agreement concerning the portfolio assets of an investment fund must not
(a) provide for the creation of any security interest on the portfolio assets of the investment fund except for a good faith claim for payment of the fees and expenses of the custodian or a sub-custodian for acting in that capacity or to secure the obligations of the investment fund to repay borrowings by the investment fund from the custodian or a sub-custodian for the purpose of settling portfolio transactions; or
(b) contain a provision that would require the payment of a fee to the custodian or a subcustodian for the transfer of the beneficial ownership of portfolio assets of the investment fund, other than for safekeeping and administrative services in connection with acting as custodian or sub-custodian.