REICH & TANG ASSET MANAGEMENT, L.P.
AMENDMENT NO. 4
TO
RULE 18f-3 MULTI-CLASS PLAN
July 1, 1999
I. Introduction.
------------
Pursuant to Rule 18f-3 under the Investment Company Act of
1940, as amended (the "1940 Act"), the following sets forth the method for
allocating fees and expenses among each class of shares of the underlying
investment funds sponsored by Reich & Tang Asset Management, L.P. as set forth
in Exhibit A (each Fund referred to herein as the "Company") that issues
multiple classes of shares (the "Multi-Class Funds"). In addition, this Rule
18f-3 Multi-Class Plan (the "Plan") sets forth the shareholder servicing
arrangements, distribution arrangements, conversion features, exchange
privileges and other shareholder services of each class of shares in the
Multi-Class Funds.
The Company is an open-end series investment company
registered under the 1940 Act and the shares of which are registered on Form
N-1A under the Securities Act of 1933 (see Exhibit A for each Company's
registration number). Upon the effective date of this Plan, the Company hereby
elects to offer multiple classes of shares in the Multi-Class Funds pursuant to
the provisions of Rule 18f-3 and this Plan. This Plan does not make any material
changes to the class arrangements and expense allocations previously approved by
the Board of Directors of the Company pursuant to the exemptive order issued by
the Securities and Exchange Commission to California Daily Tax Free Income Fund,
et al. under Section 6(c) of the 1940 Act on November 18, 1992 (1940 Act Release
No. 812-7852).
The Company currently consists of the following separate
Funds:
California Daily Tax Free Income Fund, Inc., Connecticut Daily
Tax Free Income Fund, Inc., Daily Tax Free Income Fund, Inc., Florida Daily
Municipal Income Fund, Georgia Daily Municipal Income Fund, Inc., Kentucky Daily
Municipal Income Fund, Inc., Institutional Daily Income Fund, Michigan Daily Tax
Free Income Fund, Inc., New Jersey Daily Tax Free Income Fund, Inc., North
Carolina Daily Municipal Income Fund, Inc., Pennsylvania Daily Municipal Income
Fund, Short Term Income Fund, Inc., Tennessee Daily Municipal Income Fund, Inc.,
Texas Daily Municipal Income Fund, Inc., and Virginia Daily Municipal Income
Fund, Inc.
<PAGE>
This Amendment No. 4 serves to create: (i) an Evergreen Class
of Shares of the Multi-Class Funds for the purpose of accommodating clients of
Evergreen Funds; (ii) a Chase Vista Select Class of Shares for the purpose of
accommodating clients of Chase Vista Funds; and (iii) a Pinnacle Class of Shares
for the purpose of accommodating clients of Cowles, Sabol & Co. Amendment No.3
served to create a Total Resource Account ("TRA") Class of Shares of the
Multi-Class Funds for the purpose of accommodating clients and customers of
MetLife Securities, Inc. Amendment No. 2 served to include the following Funds
in the definition of Multi-Class Funds: Georgia Daily Municipal Income Fund,
Inc., Kentucky Daily Municipal Income Fund, Inc., Tennessee Daily Municipal
Income Fund, Inc. and Texas Daily Municipal Income Fund, Inc. Amendment No. 1
served to create a Class C of shares of the Multi-Class Funds for the purpose of
accommodating clients and customers of Schroeder & Co. ("Schroeder"). All
investors in Class C shares are clients of Schroeder whose shares are maintained
in omnibus account on the books of each Multi-Class Fund with all sub-accounting
performed by Schroeder.
II. Allocation of Expenses.
----------------------
Pursuant to Rule 18f-3 under the 1940 Act, the Company shall
allocate to each class of shares in a Multi-Class Fund (i) any fees and expenses
incurred by the Company in connection with the distribution of such class of
shares under a distribution and service plan adopted for such class of shares
pursuant to Rule 12b-1, and (ii) any fees and expenses incurred by the Company
under a shareholder servicing plan in connection with the provision of
shareholder services to the holders of such class of shares. In addition,
pursuant to Rule 18f-3, the Company may allocate the following fees and expenses
to a particular class of shares in a single Multi-Class Fund:
(i) transfer agent fees and related expenses
identified by the transfer agent as
being attributable to such class of shares;
(ii) printing and postage expenses related to
preparing and distributing materials such as
shareholder reports, prospectuses, reports,
and proxies to current shareholder of such
class of shares or to regulatory agencies
with respect to such class of shares;
(iii) blue sky registration or qualification fees
incurred by such class of shares;
(iv) Securities and Exchange Commission
registration fees incurred by such class of
shares;
<PAGE>
(v) the expense of administrative personnel and
services (including, but not limited to,
those of a fund accountant, [custodian]1 or
divided paying agent charged with
calculating net asset values or determining
or paying dividends) as required to support
the shareholders of such class of shares;
(vi) litigation or other legal expenses relating
solely to such class of shares;
(vii) fees of the Company's Directors incurred as
a result of issues relating to such class of
shares; and
(viii) independent accountants' fees relating
solely to such class of shares.
The initial determination of the class expenses that will be
allocated by the Company to a particular class of shares and any subsequent
changes thereto will be reviewed by the Board of Directors and approved by a
vote of the Directors of the Company, including a majority of the Directors who
are not interested persons of the Company.
Income, realized and unrealized capital gains and losses, and
any expenses of the Multi-Class Funds not allocated to a particular class of any
such Fund pursuant to this Plan shall be allocated to each class of the Fund on
the basis of the net asset value of that class in relation to the net asset of
the Fund.
III. Class Arrangements.
------------------
The following summarizes the Rule 12b-1 distribution fees,
shareholder servicing fees, exchange privileges and other shareholder services
applicable to each class of shares of the Multi-Class Funds. Additional details
regarding such fees and services are set forth in each Fund's current Prospectus
and Statement of Additional Information.
A. Class A Shares -
1. Initial Sales Load: None.
------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
--------
1. Rule 18f-3 requires that services related to the management of the
portfolio's assets, such as custodial fees, be borne by the fund
and not by class.
<PAGE>
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: Up
-------------------------------------
to .25% per annum of average daily net
assets.
6. Conversion Features: None.
-------------------
7. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Class A Shares may be exchanged for Class A
shares of any other Fund.
8. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
B. Class B Shares -
1. Initial Sales Load: None.
------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: None.
-------------------------------------
6. Conversion Features: None.
-------------------
7. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Class B shares may be exchanged for Class B
shares of other Multi-Class Funds.
8. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
C. Class C Shares (created for all funds which are
purchased by Schroeder & Co. clients)
1. Maximum Initial Sales Load: None.
--------------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
<PAGE>
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees:
-------------------------------------
.25% per annum of the average daily net
assets.
6. Sub-Accounting/Transfer Agent Fee: .20% per
---------------------------------
annum of the average daily net assets.
7. Conversion Features: None.
-------------------
8. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Class C Shares may be exchanged for Class C
shares of any other Fund.
9. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
D. TRA Class of Shares (created for all funds which are
purchased by MetLife Securities, Inc. clients)
1. Maximum Initial Sales Load: None.
--------------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: .25%
-------------------------------------
per annum of the average daily net assets.
6. Sub-Accounting/Transfer Agent Fee: [.20%]
---------------------------------
per annum of the average daily net assets.
7. Conversion Features: None.
-------------------
8. Exchange Privileges:Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
TRA Class of Shares may be exchanged for TRA
Class of Shares ofany other Fund.
9. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
<PAGE>
E. Evergreen Class of Shares (created for all funds which are
purchased by clients of Evergreen Funds)
1. Initial Sales Load: None.
------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: Up
-------------------------------------
to .25% per annum of average daily net
assets.
6. Conversion Features: None.
-------------------
7. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Evergreen shares may be exchanged for
Evergreen shares of any other Fund.
8. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
F. Chase Vista Select Class of Shares (created for all funds
which are purchased by clients of Chase Vista Funds)
1. Initial Sales Load: None.
------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: Up to
-------------------------------------
.25% per annum of average daily net assets.
6. Conversion Features: None.
-------------------
7. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Chase Vista Select shares may be exchanged
for Chase Vista Select shares of any other
Fund.
<PAGE>
8. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
G. Pinnacle Class of Shares (created for all funds which are
purchased by clients of Cowles, Sabol & Co./Mutual Securities,
Inc.)
1. Initial Sales Load: None.
------------------
2. Contingent Deferred Sales Charge: None.
--------------------------------
3. Redemption Fees: None.
---------------
4. Rule 12b-1 Distribution Fees: None.
----------------------------
5. Rule 12b-1 Shareholder Servicing Fees: None.
-------------------------------------
6. Conversion Features: None.
-------------------
7. Exchange Privileges: Subject to restrictions
-------------------
and conditions set forth in the Prospectus,
Pinnacle shares may be exchanged for
Pinnacle shares of other Multi-Class Funds.
8. Other Incidental Shareholder Services:
-------------------------------------
As provided in the Prospectus.
IV. Board Review.
------------
The Board of Directors of the Company shall review this Plan
as frequently as it deems necessary. Prior to any material amendments to this
Plan, the Company's Board of Directors, including a majority of the Directors
that are not interested persons of the Company, shall find that the Plan, as
proposed to be amended (including any proposed amendments to the method of
allocating class and/or fund expenses) is in the best interest of each class of
shares of a Multi-Class Fund individually and the Fund as a whole. In
considering whether to approve any proposed amendments(s) to the Plan, the
Directors of the Company shall request and evaluate such information as they
consider reasonably necessary to evaluate the proposed amendments(s) to the
Plan.
In making its determination to approve this amendment to the
Plan, the Board focused on, among other things, the relationship between or
among the classes and examined potential conflicts of interest between classes
regarding the allocation of fees, services, waivers and reimbursement of
expenses, and voting rights. The Board evaluated the level of services provided
to each class and the cost of those services to ensure that the services are
appropriate and the allocation of expenses is reasonable. In approving any
subsequent amendments to this
<PAGE>
Plan, the Board shall focus on and evaluate such factors as well as any others
deemed necessary by the Board.
<PAGE>
EXHIBIT A
California Daily Tax Free Income Fund, Inc.
Connecticut Daily Tax Free Income Fund, Inc.
Daily Tax Free Income Fund, Inc.
Florida Daily Municipal Income Fund
Georgia Daily Municipal Income Fund, Inc.
Institutional Daily Income Fund
Kentucky Daily Municipal Income Fund, Inc.
Michigan Daily Tax Free Income Fund, Inc.
New Jersey Daily Tax Free Income Fund, Inc.
North Carolina Daily Municipal Income Fund, Inc.
Pennsylvania Daily Municipal Income Fund
Short Term Income Fund, Inc.
Tennessee Daily Municipal Income Fund, Inc.
Texas Daily Municipal Income Fund, Inc.
Virginia Daily Municipal Income Fund, Inc.
