Company: CHY
Filing Date: 2025-02-21
Form Type: N-2ASR
Source: 0001104659-25-016081
Chunk: 59

Company: CALAMOS CONVERTIBLE & HIGH INCOME FUND
Filing Date: 2025-02-21
Form: N-2ASR
Chunk 59
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. In the event of commencement of bankruptcy or insolvency proceedings with respect to the issuer of the repurchase agreement before repurchase of the security under a repurchase agreement, the Fund may encounter losses and delay and incur costs before being able to sell the security. Such a delay may involve loss of interest or a decline in price of the security. If the court characterizes the transaction as a loan and the Fund has not perfected a security interest in the security, the Fund may be required to return the security to the seller’s estate and be treated as an unsecured creditor of the seller. As an unsecured creditor, the Fund would be at risk of losing some or all of the principal and interest involved in the transaction. Lending of Portfolio Securities.The Fund has authorized SSB as securities lending agent to lend securities to registered broker-dealers or other institutional investors under agreements which require that the loans be secured continuously by collateral received in cash under the SSB Agreement. Counterparties to securities lending transactions through SSB are generally SSB’s approved counterparty list, subject to a concentration limit imposed by the Fund which precludes any single counterparty from constituting 25% or more of the Fund’s securities lending transactions then outstanding. The Fund has the right to limit or to prohibit altogether securities lending with otherwise eligible counterparties, subject to the potential for an increase in the Fund’s borrowing cost of either .25% or .45% per annum if such limits or prohibitions disqualify multiple counterparties which account for more than 25% or 50%, respectively, of the Fund’s recent securities lending transactions. Cash collateral received by SSB on behalf of the Fund is deposited into a custodial account in the name of the Fund before being treated as refinancing a portion of the amounts borrowed under the SSB Agreement. The interest paid by the Fund under the SSB Agreement is not impacted by whether the funding is through an advance by SSB or by receipt of collateral for securities lending. Under the terms of the SSB Agreement, the Fund is required to return the value of the collateral to the borrower at the termination of the selected securities loan(s). The Fund does not use affiliated agents in managing its lending program. The Fund continues to be entitled to receive the equivalent of the interest or dividends paid by the issuer on the securities loaned as well as the benefit of an increase and the detriment of any decrease in the market value of the securities loaned and would also receive compensation based on investment of the collateral, but bears the risk of loss