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                                   AMENDMENT

    AMENDMENT made as of June 15, 2001 to that certain Custody Agreement dated
as of       between The Bank of New York ("Custodian") and each Morgan Stanley
Dean Witter Fund having a Custody Agreement with Custodian and listed on Exhibit
A hereto (each a "Fund" and each such Custody Agreement hereinafter referred to
as the "Custody Agreement").

                              W I T N E S S E T H:

    WHEREAS, Rule 17f-7 under the Investment Company Act of 1940, as amended
(the "Rule"), was adopted on June 12, 2000 by the Securities and Exchange
Commission;

    WHEREAS, the Fund and Custodian desire to amend the Custody Agreement to
conform to the Rule;

    NOW, THEREFORE, the Fund and Custodian hereby agree as follows:

    A. The following new Article is hereby added to the Custody Agreement:

                              FOREIGN DEPOSITORIES

     1. As used in this Article, the term "Foreign Depository" shall mean each
Eligible Securities Depository as defined in Rule 17f-7 under the Investment
Company Act of 1940, as amended (the "Rule"), identified by Custodian to the
Fund from time to time, and their respective nominees.

     2. With respect to each Foreign Depository, Custodian shall exercise
reasonable care, prudence, and diligence such as a person having
responsibilities for the safekeeping of the Fund's assets would exercise (i) to
provide the Fund or its investment adviser with an analysis of the custody risks
associated with maintaining assets with the Foreign Depository, and (ii) to
monitor such custody risks on a continuing basis and promptly notify the Fund of
any material change in such risks. The Fund acknowledges and agrees that such
analysis and monitoring shall not include any evaluation of Country Risks. As
used herein the term "Country Risks" shall mean with respect to any Foreign
Depository: (a) the financial infrastructure of the country in which it is
organized, but not of any Foreign Depository to the extent covered by an
analysis described in clause (i) of this Section, (b) such country's prevailing
custody and settlement practices, (c) nationalization, expropriation or other
governmental actions, (d) such country's regulation of the banking or securities
industry, (e) currency controls, restrictions, devaluations or fluctuations, and
(f) market conditions which affect the orderly execution of securities
transactions or affect the value of securities.

     3. In the event that Custodian believes that a depository institution has
ceased to be an Eligible Securities Depository, Custodian shall promptly notify
the Fund and shall act in accordance with instructions of the Fund with respect
to the disposition of any assets of the Fund held by such depository
institution.

     4. Custodian shall exercise reasonable care, prudence and diligence in
performing the requirements set forth in paragraphs 1, 2 and 3 above.

     B. The Fund hereby represents and warrants that before authorizing the
placement of assets with a particular Foreign Depository, the Fund or the
investment adviser has determined, based in party on the Fund's review of the
risks analysis provided to the Fund by Custodian as described in Section 2 of
the new Article, that the custody arrangements of such Foreign Depository
provide reasonable safeguards against the custody risks associated with
maintaining assets with such Foreign Depository within the meaning of
Rule 17f-7 under the Investment Company Act of 1940.

     C. This Amendment may be executed in any number of counterparts, each of
which shall be deemed to be an original, but such counterparts, shall, together,
constitute only one amendment.

01NYC7812
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    IN WITNESS WHEREOF, the Fund and Custodian have caused this Amendment to be
executed by their respective officers, thereunto duly authorized, as of the day
and year first above written.

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<S>                                             <C>
                                                EACH MORGAN STANLEY DEAN WITTER FUND LISTED ON
                                                 EXHIBIT A HERETO

                                                By:              /s/ BARRY FINK
                                                ..............................................

                                                Barry Fink
                                                Title: Vice President

                                                THE BANK OF NEW YORK

                                                By:          /s/ EDWARD G. MCGANN
                                                ..............................................

                                                Edward G. McGann
                                                Title: Vice President
</Table>

                                       2
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                                   EXHIBIT A

<Table>
<C>  <S>
 1.  Active Assets California Tax-Free Trust
 2.  Active Asset Government Securities Trust
 3.  Active Assets Institutional Money Trust
 4.  Active Assets Money Trust
 5.  Active Assets Premier Money Trust
 6.  Active Assets Tax-Free Trust
 7.  Morgan Stanley 21st Century Trend Fund
 8.  Morgan Stanley Aggressive Equity Fund
 9.  Morgan Stanley All Star Growth Fund
10.  Morgan Stanley American Opportunities Fund
11.  Morgan Stanley Balanced Growth Fund
12.  Morgan Stanley Balanced Income Fund
13.  Morgan Stanley Dean Witter California Insured Municipal
      Income Trust
14.  Morgan Stanley Dean Witter California Quality Municipal
      Securities
15.  Morgan Stanley California Tax-Free Daily Income Trust
16.  Morgan Stanley California Tax-Free Income Fund
17.  Morgan Stanley Capital Growth Securities
18.  Morgan Stanley Competitive Edge Fund
19.  Morgan Stanley Convertible Securities Trust
20.  Morgan Stanley Developing Growth Securities Trust
21.  Morgan Stanley Diversified Income Trust
22.  Morgan Stanley Dividend Growth Securities Inc.
23.  Morgan Stanley Equity Fund
24.  Morgan Stanley Federal Securities Trust
25.  Morgan Stanley Financial Services Trust
26.  Morgan Stanley Fund of Funds:
        Domestic Portfolio
        International Portfolio
27.  Morgan Stanley Global Utilities Fund
28.  Morgan Stanley Dean Witter Government Income Trust
29.  Morgan Stanley Growth Fund
30.  Morgan Stanley Hawaii Municipal Trust
31.  Morgan Stanley Health Sciences Trust
32.  Morgan Stanley Dean Witter High Income Advantage Trust
33.  Morgan Stanley Dean Witter High Income Advantage Trust II
34.  Morgan Stanley Dean Witter High Income Advantage Trust III
35.  Morgan Stanley High Yield Securities Inc.
36.  Morgan Stanley Income Builder Fund
37.  Morgan Stanley Income Securities Inc.
38.  Morgan Stanley Dean Witter Insured California Municipal
      Securities
39.  Morgan Stanley Dean Witter Insured Municipal Bond Trust
40.  Morgan Stanley Dean Witter Insured Municipal Income Trust
41.  Morgan Stanley Dean Witter Insured Municipal Securities
42.  Morgan Stanley Dean Witter Insured Municipal Trust
43.  Morgan Stanley Intermediate Income Securities Inc.
44.  Morgan Stanley KLD Social Index Fund
45.  Morgan Stanley Limited Term Municipal Trust
46.  Morgan Stanley Liquid Asset Fund Inc.
47.  Morgan Stanley Market Leader Trust
48.  Morgan Stanley Mid-Cap Equity Trust
49.  Morgan Stanley Mid-Cap Value Fund
</Table>

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<Table>
<C>  <S>
50.  Morgan Stanley Multi-State Municipal Series Trust:
        The Arizona Series
        The Florida Series
        The New Jersey Series
        The Pennsylvania Series
51.  Morgan Stanley Dean Witter Municipal Income Opportunities
      Trust
52.  Morgan Stanley Dean Witter Municipal Income Opportunities
      Trust II
53.  Morgan Stanley Dean Witter Municipal Income Opportunities
      Trust III
54.  Morgan Stanley Dean Witter Municipal Premium Income Trust
55.  Morgan Stanley NASDAQ-100 Index Fund
56.  Morgan Stanley Natural Resource Development Securities Inc.
57.  Morgan Stanley New Discoveries Fund
58.  Morgan Stanley New York Municipal Money Market Trust
59.  Morgan Stanley Dean Witter New York Quality Municipal
      Securities
60.  Morgan Stanley New York Tax-Free Income Fund
61.  Morgan Stanley Next Generation Trust
62.  Morgan Stanley North American Government Income Trust
63.  Morgan Stanley Prime Income Trust
64.  Morgan Stanley Dean Witter Quality Municipal Income Trust
65.  Morgan Stanley Dean Witter Quality Municipal Investment
      Trust
66.  Morgan Stanley Dean Witter Quality Municipal Securities
67.  Morgan Stanley Real Estate Fund
68.  Morgan Stanley S&P 500 Index Fund
69.  Morgan Stanley S&P 500 Select Fund
70.  Morgan Stanley Select Dimensions Investment Series:
        The American Opportunities Portfolio
        The Balanced Growth Portfolio
        The Developing Growth Portfolio
        The Diversified Income Portfolio
        The Dividend Growth Portfolio
        The Global Equity Portfolio
        The Growth Portfolio
        The Mid-Cap Equity Portfolio
        The Money Market Portfolio
        The North American Government Portfolio
        The Utilities Portfolio
        The Value-Added Portfolio
71.  Morgan Stanley Select Municipal Reinvestment Fund
72.  Morgan Stanley Short-Term Bond Fund
73.  Morgan Stanley Short-Term U.S. Treasury Trust
74.  Morgan Stanley Small Cap Growth Fund
75.  Morgan Stanley Special Value Fund
76.  Morgan Stanley Strategist Fund
77.  Morgan Stanley Tax-Exempt Securities Trust
78.  Morgan Stanley Tax-Free Daily Income Trust
79.  Morgan Stanley Tax-Managed Growth Fund
80.  Morgan Stanley Technology Fund
81.  Morgan Stanley Total Market Index Fund
82.  Morgan Stanley Total Return Bond Fund
83.  Morgan Stanley Total Return Trust
84.  Morgan Stanley U.S. Government Money Market Trust
85.  Morgan Stanley U.S. Government Securities Trust
86.  Morgan Stanley Utilities Fund
87.  Morgan Stanley Value Fund
88.  Morgan Stanley Value-Added Market Series
</Table>

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<Table>
<C>  <S>
89.  Morgan Stanley Variable Investment Series:
        The Aggressive Equity Portfolio
        The Capital Growth Portfolio
        The Competitive Edge Portfolio
        The Dividend Growth Portfolio
        The Equity Portfolio
        The High Yield Portfolio
        The Income Builder Portfolio
        The Money Market Portfolio
        The Quality Income Plus Portfolio
        The S&P 500 Index Portfolio
        The Short-Term Bond Portfolio
        The Strategist Portfolio
        The Utilities Portfolio
90.  TCW/DW Term Trust 2002
91.  TCW/DW Term Trust 2003
</Table>