SECTION 1. Purpose

This notice relates to a program being provided by the United States Department of the Treasury (the “Treasury Department”) in response to the credit market instability to make available certain funds from its Exchange Stabilization Fund on a temporary basis upon prescribed terms and conditions (as described further below, the “Program”), to money market funds that are regulated under the Security and Exchange Commission’s Rule 2a–7, 17 C.F.R. 270.2a–7, under the Investment Company Act of 1940 (“Rule 2a–7”) to enable money market funds to maintain stable $1.00 per share net asset values. The Program is available to both money market funds holding assets subject to Federal

income taxation and to money market funds holding assets that include State and local governmental debt obligations the interest on which is excludable from gross income (“tax-exempt bonds”) under § 103 of the Internal Revenue Code, as amended (the “Code”). (Except as noted, section references herein are to the Code.) Money market funds that hold a sufficient portion of their total assets in tax-exempt bonds to be eligible to pay exempt interest dividends under § 852(b)(5) are referred to herein as “tax-exempt money market funds.” This notice provides guidance to the effect that the Program will not result in any violation of the restrictions against federal guarantees of tax-exempt bonds with respect to the tax-exempt bond assets of tax-exempt money market funds which would impair the tax-exempt status of dividends received by their shareholders.