MILLENNIUM INCOME TRUST
CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND
SENIOR FINANCIAL OFFICERS
I. COVERED OFFICERS/PURPOSE OF THE CODE
The code of ethics (this "Code") for Millennium Income Trust (the
"Company") applies to the Company's principal executive officer and principal
financial and accounting officer (the "Covered Officers," each of whom is set
forth in Exhibit A) for the purpose of promoting:
o honest and ethical conduct, including the ethical handling of actual
or apparent conflicts of interest between personal and professional
relationships;
o full, fair, accurate, timely and understandable disclosure in reports
and documents that the Company files with, or submits to, the
Securities and Exchange Commission ("SEC") and in other public
communications made by the Company;
o compliance with applicable laws and governmental rules and
regulations;
o the prompt internal reporting of violations of the Code to an
appropriate person or persons identified in the Code; and
o accountability for adherence to the Code.
Each Covered Officer should adhere to a high standard of business ethics
and should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.
II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF
INTEREST
OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private
interests interfere with the interests of, or his service to, the Company. For
example, a conflict of interest would arise if a Covered Officer, or a member of
his family, receives improper personal benefits as a result of his position with
the Company.
Certain conflicts of interest arise out of the relationships between
Covered Officers and the Company and already are subject to conflict of interest
provisions in the Investment Company Act of 1940, as amended ("Investment
Company Act") and the Investment Advisers Act of 1940, as amended ("Investment
Advisers Act"). For example, Covered Officers may not individually engage in
certain transactions (such as the purchase or sale of securities or other
property) with the Company because of their status as "affiliated persons" of
the Company. The compliance programs and procedures of the Company or the
Company's investment adviser (the "investment adviser") are designed to prevent,
or identify and correct, violations of these provisions. This Code does not, and
is not intended to, repeat or replace these programs and procedures, and
such conflicts fall outside of the parameters of this Code. Although typically
not presenting an opportunity for improper personal benefit, conflicts may arise
from, or as a result of, the contractual relationship between the Company and
the investment adviser or a third party service provider of which a Covered
Officer is also an officer or employee. As a result, this Code recognizes that
the Covered Officers will, in the normal course of their duties (whether
formally for the Company and/or for the investment adviser or a third party
service provider) be involved in establishing policies and implementing
decisions that will have different effects on the investment adviser or a third
party service provider and the Company. The participation of the Covered
Officers in such activities is inherent in the contractual relationship between
the Company and the investment adviser or a third party service provider and is
consistent with the performance by the Covered Officers of their duties as
officers of the Company. The foregoing activities, if performed in conformity
with the provisions of the Investment Company Act and the Investment Advisers
Act, will be deemed to have been handled ethically.
Other conflicts of interest are covered by the Code, even if such conflicts
of interest are not subject to provisions in the Investment Company Act and the
Investment Advisers Act. The overarching principle with respect to all conflicts
of interest covered by this Code is that the personal interest of a Covered
Officer should not be placed improperly before the interest of the Company.
Each Covered Officer must:
o not use personal influence or personal relationships improperly to
influence investment decisions or financial reporting by the Company
whereby the Covered Officer would benefit personally to the detriment
of the Company;
o not cause the Company to take action, or fail to take action, for the
individual personal benefit of the Covered Officer rather than the
benefit of the Company;
o report at least annually any affiliations or other relationships that
could potentially present a conflict of interest with the Company.
III. DISCLOSURE AND COMPLIANCE
o Each Covered Officer shall become familiar with the disclosure
requirements generally applicable to the Company;
o each Covered Officer shall not knowingly misrepresent, or cause others
to misrepresent, facts about the Company to others, whether within or
outside the Company, including to the Company's management, and
auditors, and to governmental regulators and self-regulatory
organizations;
o each Covered Officer may, to the extent appropriate within the Covered
Officer's area of responsibility and to the extent deemed necessary in
the sole discretion of the Covered Officer, consult with other
officers and employees of the Company and the investment adviser with
the goal of promoting full, fair, accurate, timely and understandable
disclosure in the reports and documents the Company files
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with, or submits to, the SEC and in other public communications made
by the Company; and
o each Covered Officer should seek to promote the Company's compliance
with the standards and restrictions imposed by applicable laws, rules
and regulations.
IV. REPORTING AND ACCOUNTABILITY
Each Covered Officer must:
o upon adoption of the Code (or thereafter as applicable, upon becoming
a Covered Officer), affirm in writing to the Secretary of the Company
(the "Secretary") that the Covered Officer has received, read and
understands this Code;
o annually thereafter affirm to the Secretary that the Covered Officer
has complied with the requirements of this Code;
o not retaliate against any other Covered Officer or any employee of the
Company or its affiliated persons for reports of potential violations
of this Code that are made in good faith; and
o notify the Secretary promptly if the Covered Officer knows of any
violation of this Code. Failure to do so is itself a violation of this
Code.
The Secretary is responsible for applying this Code to specific situations
in which questions are presented under it and has the authority to interpret
this Code in any particular situation. The Secretary is authorized to consult,
as appropriate, with counsel to the Company, and is encouraged to do so.
However, any approvals or waivers1 must be considered by the trustees of the
Company who are not "interested persons," as defined by Section 2(a)(19) of the
Investment Company Act, of the Company (the "Independent Trustees").
The Company will follow these procedures in investigating and enforcing
this Code:
o The Secretary will endeavor to take all appropriate action to
investigate any reported potential violations reported to him;
o if, after such investigation, the Secretary believes that no violation
has occurred, the Secretary is not required to take any further
action;
o any matter that the Secretary believes is a violation will be reported
to the Independent Trustees;
o if the Independent Trustees concur that a violation has occurred, the
Secretary will inform and make a recommendation to the Company's board
of trustees
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1 For this purpose, the term "waiver" includes the approval by the Company of a
material departure from a provision of this Code or the Company's failure to
take action within a reasonable period of time regarding a material departure
from a provision of this Code that has been made known to the Company's
management.
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(the "Board"), which will consider appropriate action, which may
include a review of, and appropriate modifications to, applicable
Company policies and procedures; notification to appropriate personnel
of the investment adviser or other relevant service provider; or a
recommendation to dismiss the Covered Officer; and
o any changes to or waivers of this Code will, to the extent required,
be disclosed as provided by SEC rules.
V. OTHER POLICIES AND PROCEDURES
This Code shall be the sole code of ethics adopted by the Company for
purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and
forms applicable to registered investment companies thereunder. Insofar as other
policies or procedures of the Company, investment adviser, principal underwriter
or service providers govern or purport to govern the behavior or activities of
the Covered Officers who are subject to this Code, they are superseded by this
Code to the extent that they overlap or conflict with the provisions of this
Code. The Company's and the investment adviser's and the principal underwriter's
codes of ethics, if any, under Rule 17j-1 under the Investment Company Act are
separate requirements applying to the Covered Officers and others, and are not
part of this Code.
VI. AMENDMENTS
Amendments to this Code may be made from time to time, as deemed
appropriate by the Secretary. The Board shall be informed of any such amendment
to the extent deemed material by the Secretary.
VII. CONFIDENTIALITY
All reports and records relating to the Company prepared or maintained
pursuant to this Code will be considered confidential and shall be maintained
and protected accordingly. Except as otherwise required by law or this Code,
such matters shall not be disclosed to anyone other than the investment adviser,
Board, and counsel to the Company.
VIII. INTERNAL USE
The Code is intended solely for the internal use by the Company and does
not constitute an admission, by or on behalf of the Company, as to any fact,
circumstance, or legal conclusion.
Date: September 15, 2003
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EXHIBIT A
Persons Covered by this Code of Ethics
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James A. Casselberry, Jr.
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CODE OF ETHICS
FOR PRINCIPAL EXECUTIVE
AND SENIOR FINANCIAL OFFICERS
CERTIFICATE OF COMPLIANCE
As a Covered Officer as defined in the Code of Ethics For Principal
Executive and Senior Financial Officers of Millennium Income Trust (the "Code"),
I hereby certify that I have received and have read and fully understand the
Code, and I recognize that I am subject to the Code. I further certify that I
will comply with the requirements of the Code.
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Signature
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Name (Please Print)
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Date
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