EXHIBIT 24(b)(8)(b)

                            GLOBAL CUSTODY AGREEMENT


     This  AGREEMENT  is  effective  August 1, 1995,  and is  between  THE CHASE
MANHATTAN BANK, N.A. (The "Bank") and The AAL Mutual Funds (The "Customer).

1.   Customer Accounts.

     The  Bank  agrees  to  establish  and  maintain  the   following   accounts
("Accounts"):

     (a) A custody account in the name of the Customer  ("Custody  Account") for
any and all  stocks,  shares,  bonds,  debentures,  notes,  mortgages  or  other
obligations  for the  payment  of  money,  bullion,  coin and any  certificates,
receipts, warrants or other instruments representing rights to receive, purchase
or subscribe  for the same or  evidencing  or  representing  any other rights or
interests   therein  and  other  similar   property   whether   certificated  or
uncertificated as may be received by the Bank or its Subcustodian (as defined in
Section 3) for the account of the Customer ("Securities"); and

     (b) A deposit account in the name of the Customer  ("Deposit  Account") for
any and all cash in any currency  received by the Bank or its  Subcustodian  for
the account of the  Customer,  which cash shall not be subject to  withdrawal by
draft or check.

     The Customer  warrants its authority to: 1) deposit the cash and Securities
("Assets")  received in the  Accounts  and 2) give  Instructions  (as defined in
Section 11) concerning the Accounts. The Bank may deliver securities of the same
class in place of those deposited in the Custody Account.

     Upon  written  agreement  between  the  Bank and the  Customer,  additional
Accounts may be established and separately  accounted for as additional Accounts
under the terms of this Agreement.

2.   Maintenance of Securities and Cash at Bank and Subcustodian Locations.

     Unless Instructions specifically require another location acceptable to the
Bank:

     (a) Securities  will be held in the country or other  jurisdiction in which
the  principal  trading  market  for such  Securities  is  located,  where  such
Securities  are to be  presented  for  payment  or  where  such  Securities  are
acquired; and

     (b) Cash will be credited to an account in a country or other  jurisdiction
in which such cash may be legally  deposited  or is the legal  currency  for the
payment of public or private debts.

     Cash  may  be  held  pursuant  to   Instructions   in  either  interest  or
non-interest  bearing accounts as may be available for the particular  currency.
To the  extent  Instructions  are  issued  and the Bank  can  comply  with  such
Instructions,  the Bank is  authorized  to maintain cash balances on deposit for
the Customer with itself or one of its  affiliates at such  reasonable  rates of
interest as may from time to time be paid on such accounts,  or in  non-interest
bearing accounts as the Customer may direct, if acceptable to the Bank.

     If the Customer  wishes to have any of its Assets held in the custody of an
institution other than the established Subcustodians as defined in Section 3 (or
their securities depositories), such arrangement must be authorized by a written
agreement, signed by the Bank and the Customer.

3.   Subcustodians and Securities Depositories.

     The Bank may act under this Agreement through the  subcustodians  listed in
Schedule A of this Agreement  with which the Bank has entered into  subcustodial
agreements ("Subcustodians"). The Customer authorizes the Bank to hold Assets in
the Accounts in accounts which the Bank has established  with one or more of its
branches or Subcustodians. The Bank and Subcustodians are authorized to hold any
of the Securities in their account with any securities  depository in which they
participate.

     The Bank  reserves the right to add new,  replace or remove  Subcusdodians.
The Customer  will be given  reasonable  notice by the Bank of any  amendment to
Schedule  A. Upon  request by the  Customer,  the Bank will  identify  the name,
address and principal  place of business of any  Subcustodian  of the Customer's
Assets and the name and address of the  governmental  agency or other regulatory
authority that supervises or regulates such Subcustodian.

4.   Use of Subcustodian.

     (a) The Bank will  identify  such Assets on its books as  belonging  to the
Customer.

     (b) A Subcustodian  will hold such Assets together with assets belonging to
other customers of the Bank in accounts identified on such Subcustodian's  books
as special custody accounts for the exclusive benefit of customers of the Bank.

     (c) Any Assets in the Accounts held by Subcustodian will be subject only to
the  instructions of the Bank or its agent.  Any Securities held in a securities
depository  for  the  account  of a  Subcustodian  will be  subject  only to the
instructions of such Subcustodian.

     (d) Any agreement the Bank enters into with a Subcustodian  for holding its
customer's  assets  shall  provide  that such  assets will not be subject to any
right,  charge,  security  interest,  lien or claim of any kind in favor of such
Subcustodian except for safe custody or administration,  and that the beneficial
ownership  of such  assets  will be freely  transferable  without the payment of
money or value  other than for safe  custody or  administration.  The  foregoing
shall not apply to the extent of any special  agreement or  arrangement  made by
the Customer with any particular Subcustodian.


<PAGE>

5.   Deposit Account Transactions.

     (a) The Bank or its  Subcustodians  will  make  payments  from the  Deposit
Account upon receipt of Instructions  which include all information  required by
the Bank.

     (b) In the event that any  payment to be made under this  Section 5 exceeds
the funds available in the Deposit  Account,  the Bank, in its  discretion,  may
advance the Customer  such excess amount which shall be deemed a loan payable on
demand,  bearing interest at the rate customarily charged by the bank on similar
loans.

     (c) If the Bank credits the Deposit  Account on a payable  date,  or at any
time prior to actual collection and reconciliation to the Deposit Account,  with
interest,  dividends,  redemptions  or any other amount due,  the Customer  will
promptly return any such amount upon oral or written notification: (i) that such
amount has not been  received  in the  ordinary  course of business or (ii) that
such amount was incorrectly  credited.  If the Customer does not promptly return
any amount  upon such  notification,  the Bank shall be  entitled,  upon oral or
written  notification  to the  Customer,  to reverse such credit by debiting the
Deposit Account for the amount previously credited. The Bank or its Subcustodian
shall have no duty or obligation to institute legal proceedings, file a claim or
a proof of claim in any  insolvency  proceeding  or take any other  action  with
respect to the  collection  of such amount,  but may act for the  Customer  upon
Instructions after consultation with the Customer.


6.   Custody Account Transactions.

     (a) Securities will be  transferred,  exchanged or delivered by the bank or
its  Subcustodian  upon receipt by the Bank of  Instructions  which  include all
information required by the Bank. Settlement and payment for Securities received
for,  and  delivery of  Securities  out of, the  Custody  Account may be made in
accordance  with the customary or established  securities  trading or securities
processing  practices and procedures in the  jurisdiction or market in which the
transaction occurs, including,  without limitation,  delivery of Securities to a
purchaser,  dealer or their  agents  against a receipt with the  expectation  of
receiving  later payment and free  delivery.  Delivery of Securities  out of the
Custody  Account  may  also be  made  in any  manner  specifically  required  by
Instructions acceptable to the Bank.

     (b) The Bank,  in its  discretion,  may credit or debit the  Accounts  on a
contractual  settlement  date with cash or Securities  with respect to any sale,
exchange  or  purchase  of  Securities.  Otherwise,  such  transactions  will be
credited or debited to the Accounts on the date cash or Securities  are actually
received by the Bank and reconciled to the Account.

          (i) The Bank may reverse credits or debits made to the Accounts in its
     discretion if the related  transaction  fails to settle within a reasonable
     period,  determined by the bank in its  discretion,  after the  contractual
     settlement date for the related transaction.

          (ii)  If any  Securities  delivered  pursuant  to this  Section  6 are
     returned  by the  recipient  thereof,  the Bank may reverse the credits and
     debits of the particular transaction at any time.

7.   Action of the Bank.

     The Bank shall follow  Instructions  received  regarding assets held in the
Accounts.  However,  until it receives  Instructions  to the contrary,  the Bank
will:

     (a)  Present  for payment  any  Securities  which are  called,  redeemed or
retired or otherwise become payable and all coupons and other income items which
call for payment upon presentation,  to the extent that the Banker  Subcustodian
is actually aware of such opportunities.

     (b)  Execute  in  the  name  of  the  Customer  such  ownership  and  other
certificates as may be required to obtain payments in respect of Securities.

     (c)  Exchange  interim  receipts or  temporary  Securities  for  definitive
Securities.

     (d)  Appoint  brokers  and  agents  for  any   transaction   involving  the
Securities,  including,  without  limitation,  affiliates  of  the  Bank  or any
Subcustodian.

     (e) Issue  statements  to the  customer,  at times  mutually  agreed  upon,
identifying the Assets in the Accounts.

     The Bank will send the Customer an advice or  notification of any transfers
of Assets to or from the Accounts.  Such  statements,  advices or  notifications
shall indicate the identity of the entity having  custody of the Assets.  Unless
the  Customer  sends  the Bank a  written  exception  or  objection  to any Bank
statement  within sixty (60) days of receipt,  the  Customer  shall be deemed to
have approved such statement. In such event, or where the Customer has otherwise
approved any such statement,  the Bank shall, to the extent permitted by law, be
released,  relieved and discharged with respect to all matters set forth in such
statement or reasonably  implied  therefrom as though it had been settled by the
decree of a court of competent  jurisdiction in an action where the Customer and
all persons  having or claiming  an interest in the  Customer or the  Customer's
Accounts were parties.

     All  collections  of funds or other property paid or distributed in respect
of Securities in the Custody Account shall be made at risk of the Customer.  The
Bank  shall have no  liability  for any loss  occasioned  by delay in the actual
receipt of notice by the Bank or by its Subcustodians of any payment, redemption
or other transaction  regarding  Securities in the Custody Account in respect of
which the bank has agreed to take any action under this agreement.

8.   Corporate Action; Proxies.

     Whenever the Bank receives  information  concerning  the  Securities  which
requires  discretionary  action by the beneficial owner of the securities (other
than a proxy), such as subscription rights, bonus issues, stock repurchase plans
and  rights  offerings,  or legal  notices  or  other  material  intended  to be
transmitted to securities holders ("Corporate Actions"),  the Bank will give the
Customer notice of such Corporate  Actions to the extent that the Bank's central
corporate actions  department has actual knowledge of a Corporate Action in time
to notify its customers.

     When a rights entitlement or a fractional  interest resulting from a rights
issue, stock dividend, stock split or similar Corporate Action is received which
bears an expiration date, the Bank will endeavor to obtain Instructions from the
Customer or its Authorized  Person, but if Instructions are not received in time
for the Bank to take timely action,  or actual notice of such  Corporate  Action
was received too late to seek Instructions,  the Bank is authorized to sell such
rights entitlement or fractional interest and to credit the Deposit Account with
the proceeds or take any other action it deems, in good faith, to be appropriate
in which case it shall be held harmless for any such action.

     The Bank will  deliver  proxies to the  Customer  or its  designated  agent
pursuant to special arrangements which may have been agreed to in writing.  Such
proxies shall be executed in the appropriate nominee name relating to Securities
in the  Custody  Account  registered  in the name of such  nominee  but  without
indicating  the manner in which such  proxies are to be voted;  and where bearer
Securities  are  involved,   proxies  will  be  delivered  in  accordance   with
Instructions.

9.   Nominees.

     Securities  which are ordinarily  held in registered form may be registered
in a nominee name of the Bank,  Subcustodian  or securities  depository,  as the
case  may be.  The  Bank may  without  notice  to the  Customer  cause  any such
Securities  to cease to be  registered in the name of any such nominee and to be
registered  in the  name of the  Customer.  In the  event  that  any  Securities
registered  in a nominee name are called for partial  redemption  by the issuer,
the Bank may allot the called  portion to the respective  beneficial  holders of
such class of  security  in any manner the Bank deems to be fair and  equitable.
The  Customer  agrees to hold the  Bank,  Subcustodians,  and  their  respective
nominees  harmless from any liability  arising directly or indirectly from their
status as a mere record holder of Securities in the Custody Account.

10.  Authorized Persons.

     As used in this Agreement,  the term "Authorized Person" means employees or
agents including  investment  managers as have been designated by written notice
from the Customer or its designated agent to act on behalf of the Customer under
this Agreement.  Such persons shall continue to be Authorized Persons until such
time as the Bank receives Instructions from the customer or its designated agent
that any such employee or agent is no longer Authorized Person.

11.  Instructions.

     The  term  "Instructions"  means  instructions  of  any  Authorized  Person
received by the Bank, via telephone,  telephone,  facsimile  transmission,  bank
wire or other teleprocess or electronic  instruction or trade information system
acceptable  to the Bank which the Bank believes in good faith to have been given
by  Authorized   Persons  or  which  are  transmitted  with  proper  testing  or
authentication  pursuant  to terms and  conditions  which the Bank may  specify.
Unless otherwise  expressly  provided,  all Instructions  shall continue in full
force and effect until canceled or superseded.

     Any  Instructions  delivered  to  the  Bank  by  telephone  shall  promptly
thereafter be confirmed in writing by an Authorized  Person (which  confirmation
may bear the facsimile signature of such Person), but the Customer will hold the
Bank harmless for the failure of an Authorized  Person to send such confirmation
in  writing,  the  failure of such  confirmation  to  conform  to the  telephone
instructions  received or the Bank's failure to produce such confirmation at any
subsequent time. The Bank may  electronically  record any instructions  given by
telephone,  and any other  telephone  discussions  with  respect to the  Custody
Account.  The Customer  shall be  responsible  for  safeguarding  any test Keys,
identification  codes or other  security  devices  which  the  Bank  shall  make
available to the Customer or its Authorized Persons.

12.  Standard of Care; Liabilities.

     (a) The Bank shall be responsible  for the  performance of only such duties
as are set forth in this Agreement or expressly  contained in Instructions which
are consistent with the provision of this Agreement as follows:

          (i) The Bank will use reasonable  care with respect to its obligations
     under this  Agreement  and the  safekeeping  of  Assets.  The Bank shall be
     liable to the  Customer for any loss which shall occur as the result of the
     failure of a Subcustodian  to exercise  reasonable care with respect to the
     safekeeping of such Assets to the same extent that the Bank would be liable
     to the Customer if the Bank were  holding  such Assets in New York.  In the
     event of any loss to the  Customer  by reason of the failure of the Bank or
     its  Subcustodian to utilize  reasonable  care, the Bank shall be liable to
     the Customer only to the extent of the  Customer's  direct  damages,  to be
     determined  based on the market value of the property  which is the subject
     of the loss at the date of discovery of such loss and without  reference to
     any special conditions or circumstances.

          (ii) The Bank will not be responsible for any act,  omission,  default
     or for the  solvency  of any  broker  or agent  which it or a  Subcustodian
     appoints unless such appointment was made negligently or in bad faith.

          (iii) The Bank shall be indemnified  by, and without  liability to the
     Customer for any action  taken or omitted by the Bank  whether  pursuant to
     Instructions or otherwise within the scope of this Agreement if such act or
     omission  was  in  good  faith,  without  negligence.   In  performing  its
     obligations  under this Agreement,  the Bank may rely on the genuineness of
     any document which it believes in good faith to have been validly executed.

          (iv) The Customer  agrees to pay for and hold the Bank  harmless  from
     any liability or loss  resulting  from the  imposition or assessment of any
     taxes or other governmental  charges, and any related expenses with respect
     to income from or Assets in the Accounts.

          (v) The Bank shall be entitled to rely and may act, upon the advice of
     counsel  (who may be counsel for the  Customer) on all matters and shall be
     without  liability for any action  reasonably  taken or omitted pursuant to
     such advice.

          (vi) The Bank need not maintain any  insurance  for the benefit of the
     Customer.

          (vii) Without limiting the foregoing, the Bank shall not be liable for
     any loss which  results  from:  1) the  general  risk of  investing,  or 2)
     investing or holding  Assets in a  particular  country  including,  but not
     limited to, losses resulting from  nationalization,  expropriation or other
     governmental  actions;  regulation of the banking or  securities  industry;
     currency restrictions,  devaluations or fluctuations; and market conditions
     which prevent the orderly  execution of securities  transactions  or affect
     the value of Assets.

          (viii)  Neither party shall be liable to the other for any loss due to
     forces beyond their control  including,  but not limited to strikes or work
     stoppages,  acts of war or  terrorism,  insurrection,  revolution,  nuclear
     fusion, fission or radiation, or acts of God.

     (b)  Consistent  with and  without  limiting  the first  paragraph  of this
Section 12, it is specifically  acknowledged that the Bank shall have no duty or
responsibility to:

          (i) question  Instructions  or make any suggestions to the Customer or
     an Authorized Person regarding such Instructions;

          (ii) supervise or make  recommendations with respect to investments or
     the retention of Securities;

          (iii)  advise the  Customer  or an  Authorized  Person  regarding  any
     default in the payment of principal or income of any security other than as
     provided in Section 5(c) of this Agreement;

          (iv)  evaluate  or  report to the  Customer  or an  Authorized  Person
     regarding  the financial  condition of any broker,  agent or other party to
     which  Securities  are  delivered  or  payments  are made  pursuant to this
     Agreement;

          (v) review or reconcile trade confirmations received from brokers. The
     Customer  or its  Authorized  Persons  (as  defined in Section  10) issuing
     Instructions  shall bear any  responsibility  to review such  confirmations
     against Instructions issued to and statements issued by the Bank.

     (c)  The  Customer   authorizes  the  Bank  to  act  under  this  Agreement
notwithstanding  that the Bank or any of its divisions or affiliates  may have a
material interest in a transaction,  or circumstances are such that the Bank may
have a potential  conflict of duty or interest  including the fact that the Bank
or any of its affiliates may provide brokerage services to other customers,  act
as financial advisor to the issuer of Securities,  act as a lender to the issuer
of Securities,  act in the same transaction as agent for more than one customer,
have a material interest in the issue of Securities, or earn profits from any of
the activities listed herein.

13.  Fees and Expenses.


     The Customer  agrees to pay the Bank for its services  under this Agreement
such  amount  as may be  agreed  upon  in  writing,  together  with  the  Bank's
reasonable out-of-pocket or incidental expenses,  including, but not limited to,
legal  fees.  The Bank  shall  have a lien on and is  authorized  to charge  any
Account of the Customer  for any among owing to the Bank under any  provision of
this Agreement.

14.  Miscellaneous.

     (a) Foreign Exchange Transactions.  To facilitate the administration of the
Customer's trading and investment activity, the Bank is authorized to enter into
spot or forward  foreign  exchange  contracts with the Customer or an Authorized
Person for the Customer and may also provide foreign

     (b)  Certification of Residency,  etc. The Customer  certifies that it is a
resident  of the United  States and agrees to notify the Bank of any  changes in
residency.  The Bank may rely upon this  certification  or the  certification of
such other facts as may be required to administer the Bank's  obligations  under
this  Agreement.  The  Customer  will  indemnify  the Bank  against  all losses,
liability,  claims or  demands  arising  directly  or  indirectly  from any such
certifications.

     (c) Access to  Records.  The Bank shall  allow the  Customer's  independent
public  accountant  reasonable access to the records of the Bank relating to the
Assets as is required in connection with their  examination of books and records
pertaining to the Customer's  affairs.  Subject to restrictions under applicable
law,  the Bank  shall  also  obtain  an  undertaking  to permit  the  Customer's
independent  public  accountants   reasonable  access  to  the  records  of  any
Subcustodian  which has physical  possession of any Assets as may be required in
connection with the examination of the Customer's books and records.

     (d) Governing Law; Successors and Assigns. This Agreement shall be governed
by the laws of the  State of New York and  shall  not be  assignable  by  either
party, but shall bind the successors in interest of the Customer and the Bank.

     (e) Entire  Agreement;  Applicable  Riders.  Customer  represents  that the
Assets deposited in the Accounts are (Check one):


          Employee  Benefit  Plan  or  other  assets  subject  to  the  Employee
          Retirement Income Security Act of 1974, as amended ("ERISA");


     x    Mutual  Fund  assets  subject  to  certain   Securities  and  Exchange
          Commission ("SEC") rules and regulations;

          Neither of the above.


     This Agreement consists exclusively of this document together with Schedule
A and the following Rider(s) [Check applicable rider(s)]:

          ERISA


     x    MUTUAL FUND


     x    DOMESTIC SPECIAL TERMS AND CONDITIONS


     There  are no  other  provisions  of  this  Agreement  and  this  Agreement
supersedes any other agreements,  whether written or oral,  between the parties.
Any amendment to this Agreement must be in writing, executed by both parties.

     (f)  Severability.  In the  event  that  one or  more  provisions  of  this
Agreement are held invalid,  illegal or  enforceable in any respect on the basis
of any particular circumstances or in any jurisdiction,  the validity,  legality
and enforceability of such provision or provisions under other  circumstances or
in other  jurisdictions  and of the remaining  provisions will not in any way be
affected or impaired.

     (g) Wavier.  Except as otherwise provided in this Agreement,  no failure or
delay on the part of either  party in  exercising  any power or right under this
Agreement  operates as a waiver,  nor does any single or partial exercise of any
power or right  preclude any other or further  exercise,  or the exercise of any
other power or right.  No waiver by a party of any provision of this  Agreement,
or waiver of any breach or default, is effective unless in writing and signed by
the party against whom the waiver is to be enforced.

     (h) Notices.  All notices  under this  Agreement  shall be  effective  when
actually  received.  Any notices or other  communications  which may be required
under this Agreement are to be sent to the parties at the following addresses or
such other addresses as may subsequently be given to the other party in writing:


Bank:        The Chase Manhattan Bank, N.A.
             Chase Metro Tech Center
             Brooklyn, NY  11245
             Attention: Global Custody Division

             or telex: __________________________





Customer:    Terrance P. Gallagher, SVP & CFO    Treasurer, The AAL Mutual Funds

             AAL Capital Management Corporation

             222 West College Avenue

             Appleton, WI  54919-0007__________

             or telex: _________________________

     (i)  Termination.  This  Agreement may be terminated by the Customer or the
Bank by giving sixty (60) days written  notice to the other,  provided that such
notice to the Bank shall specify the names of the persons to whom the Bank shall
deliver the Assets in the  Accounts.  If notice of  termination  is given by the
Bank,  the  Customer  shall,  within  sixty (60) days  following  receipt of the
notice, deliver to the Bank Instructions  specifying the names of the persons to
whom the Bank shall deliver the Assets. In either case the Bank will deliver the
Assets to the persons so specified,  after  deducting any amounts which the Bank
determines in good faith to be owed to it under Section 13. If within sixty (60)
days following receipt of a notice of termination by the Bank, the bank does not
receive  Instructions  from the Customer  specifying the names of the persons to
whom the Bank shall deliver the Assets,  the Bank, at its election,  may deliver
the Assets to a bank or trust company doing business in the State of New York to
be held and  disposed of pursuant to the  provisions  of this  Agreement,  or to
Authorized  Persons,  or may continue to hold the Assets until  Instructions are
provided to the Bank.

                                   CUSTOMER


                                   By:  /s/ John H. Pender
                                        -------------------------------
                                          John H. Pender, President
                                          The AAL Mutual Funds



                                   THE CHASE MANHATTAN BANK, N.A.


                                   By: /s/ Rosemary M. Stidmon
                                           ----------------------------
                                           Vice President
                                           SSA/AOA2F60.WP5-052693/062995


<PAGE>



STATE OF Wisconsin         )

                           : ss.

COUNTY OF Outagamie        )



On this 24 day of July , 1995 before me  personally  came John H. Pender,  to me
known, who being by me duly sworn, did depose and say that he resides in WI at ;
that he is President of The AAL Mutual Funds,  the entity described in and which
executed the  foregoing  instrument;  that he/she knows the seal of said entity,
that the seal affixed to said instrument is such seal, that it was so affixed by
order of said entity, and that he/she signed his/her name thereto by like order.


                                             /s/ John H. Pender
                                             ---------------------------
                                             John H. Pender



Sworn to before me this 24th

day of July, 1995

/s/ Alice M. Pollitt
-----------------------------
Alice M. Pollitt

                           Notary
In and for the County of Outagamie
State of Wisconsin
My Commission Expires on July 18, 1999


<PAGE>



STATE OF NEW YORK          )

                           : ss.

COUNTY OF NEW YORK         )


    On this 30 day of June   , 1995, before me personally came Rosemary Stidmon,
to me known,  who being by me duly sworn, did depose and say that she resides in
New  Jersey at 31  Sagamore  Drive;  that she is a Vice  President  of THE CHASE
MANHATTAN BANK, (National  Association),  the corporation described in and which
executed  the  foregoing  instrument;   that  he/she  knows  the  seal  of  said
corporation,  that the seal affixed to said  instrument is such corporate  seal,
that it was so affixed by order of the Board of Directors  of said  corporation,
and that he/she signed his/her name thereto by like order.



                                             /s/ Rosemary M. Stidmon
                                             -----------------------------
                                             Rosemary M. Stidmon



Sworn to before me this 30th

day of June, 1995.

/s/ Laiyee Ng
--------------------------------
Laiyee Ng
                           Notary
              LAIYEE NG
 Notary Public, State of New York
         No. 01NG-5012929
   Qualified in Queens County
Cert. Filed in Kings & N.Y. Counties
  Commission Expires June 15, 1997.







                  Mutual Fund Rider to Global Custody Agreement

                   Between The Chase Manhattan Bank, N.A. and

                 The AAL Mutual Funds, effective August 1, 1995


     Customer  represents that the Assets being placed in the Bank's custody are
subject to the  Investment  Company  Act of 1940 (the  Act),  as the same may be
amended from time to time.

     Except to the extend that the Bank has specifically agreed to comply with a
condition  of a rule,  regulation,  interpretation  promulgated  by or under the
authority  of the SEC or the  Exemptive  Order  applicable  to  accounts of this
nature issued to the Bank  (Investment  Company Act of 1940,  Release No. 12053,
November 20, 1981),  as amended,  or unless the Bank has otherwise  specifically
agreed,  the Customer shall be solely responsible to assure that the maintenance
of  Assets  under  this  Agreement   complies  with  such  rules,   regulations,
interpretations  or exemptive order promulgated by or under the authority of the
Securities Exchange Commission.

     The following modifications are made to the Agreement:

     Section 3. Subcustodians and Securities Depositories.

     Add the following language to the end of section 3:

The terms  Subcustodian  and securities  depositories  as used in this Agreement
shall mean a branch of a qualified U.S. bank, an eligible  foreign  custodian or
an eligible foreign securities depository, which are further defined as follows:
         
     (a)  "qualified  U.S.  Bank" shall mean a qualified U.S. bank as defined in
Rule 17f-5 under the Investment Company Act of 1940;
         
     (b) "eligible  foreign  custodian"  shall mean (i) banking  institution  or
trust company  incorporated  or organized under the laws of a country other than
the United States that is regulated as such by that  country's  government or an
agency  thereof and that has  shareholders'  equity in excess of $200 million in
U.S. currency (or a foreign currency equivalent thereof),  (ii) a majority owned
direct or indirect  subsidiary of a qualified U.S. bank or bank holding  company
that is  incorporated  or organized  under the laws of a country  other than the
United  States and that has  shareholders'  equity in excess of $100  million in
U.S.  currency  (or a  foreign  currency  equivalent  thereof)  (iii) a  banking
institution  or trust  company  incorporated  or  organized  under the laws of a
country  other than the United  States or a majority  owned  direct or  indirect
subsidiary of a qualified U.S. bank or bank holding company that is incorporated
or organized  under the laws of a country other than the United States which has
such other  qualifications as shall be specified in Instructions and approved by
the  bank;  or (iv) any other  entity  that  shall  have  been so  qualified  by
exemptive order, rule or other appropriate action of the SEC; and
         
     (c)  "eligible  foreign  securities  depository"  shall  mean a  securities
depository or clearing  agency,  incorporated  or organized  under the laws of a
country other than the United States,  which operates (i) the central system for
handling  securities  or  equivalent  book-entries  in that  country,  or (ii) a
transnational  system for the  central  handling  of  securities  or  equivalent
book-entries.
           
     The Customer  represents  that its Board of Directors  has approved each of
the  Subcustodians  listed in Schedule A to this  Agreement and the terms of the
subcustody  agreements  between  the  Bank and each  Subcustodian,  and  further
represents that its Board has determined that the use of each  Subcustodian  and
the terms of each subcustody agreement are consistent with the best interests of
the Fund(s) and its (their) shareholders. The Bank will supply the Customer with
any  amendment  to Schedule A for  approval.  The  Customer has supplied or will
supply the Bank with  certified  copies of its Board of Directors  resolution(s)
with respect to the foregoing  prior to placing Assets with any  Subcustodian so
approved.

Section 11. Instructions.

     Add the following language to the end of Section 11:

                  Deposit Account Payments and Custody Account Transactions made
         pursuant to Section 5 and 6 of this  Agreement may be made only for the
         purposes listed below.  Instructions must specify the purpose for which
         any transaction is to be made and Customer shall be solely  responsible
         to assure  that  Instructions  are in accord  with any  limitations  or
         restrictions  applicable  to the Customer by law or as may be set forth
         in its  prospectus.  

     (a) In  connection  with the  purchase or sale of  Securities  at prices as
confirmed by Instructions;

     (b) When Securities are called, redeemed or retired, or otherwise payable;

     (c) In exchange for or upon conversion into other securities alone or other
securities   and  cash   pursuant   to  any  plan  or   merger,   consolidation,
reorganization, recapitalization or readjustment;

     (d) Upon  conversion  of  Securities  pursuant  to their  terms  into other
securities;

     (e)  Upon  exercise  of  subscription,  purchase  or other  similar  rights
represented by Securities;

     (f) For the payment of interest,  taxes,  management or  supervisory  fees,
distributions or operating expenses;
         
     (g) In connection with any borrowings by the Customer requiring a pledge of
Securities, but only against receipt of amounts borrowed;

     (h) In  connection  with any loans,  but only  against  receipt of adequate
collateral as specified in  Instructions  which shall  reflect any  restrictions
applicable to the Customer;

     (i) For the  purpose  of  redeeming  shares  of the  capital  stock  of the
Customer and the delivery to, or the crediting to the account of, the Bank,  its
Subcustodian or the Customer's  transfer  agent,  such shares to be purchased or
redeemed;

     (j) For the purpose of  redeeming  in kind shares of the  Customer  against
delivery to the Bank, its Subcustodian or the Customer's  transfer agent of such
shares to be so redeemed;

     (k) For delivery in accordance  with the provisions of any agreement  among
the  Customer,  the Bank and a  broker-dealer  registered  under the  Securities
Exchange  Act of  1934  (the  "Exchange  Act")  and a  member  of  The  National
Association of Securities  Dealers,  Inc. ("NASD"),  relating to compliance with
the rules of The Options  Clearing  Corporation  and of any registered  national
securities exchange, or of any similar organization or organizations,  regarding
escrow or other arrangements in connection with transactions by the Customer;

     (l) For release of  Securities  to  designated  brokers  under covered call
options,  provided,  however,  that such Securities  shall be released only upon
payment  to the  Bank of  monies  for the  premium  due  and a  receipt  for the
Securities  which are to be held in escrow.  Upon exercise of the option,  or at
expiration,  the bank  will  receive  from  brokers  the  Securities  previously
deposited.  The Bank will act strictly in accordance  with  Instructions  in the
delivery of Securities to be held in escrow and will have no  responsibility  or
liability for any such Securities which are not returned promptly when due other
than to make proper request for such return;

     (m)  For  spot or  forward  foreign  exchange  transactions  to  facilitate
security trading, receipt of income from Securities or related transactions;

     (n) For other proper purposes as may be specified in Instructions issued by
an officer of the  Customer  which shall  include a statement of the purpose for
which the  delivery  or  payment  is to be made,  the  amount of the  payment or
specific  Securities to be delivered,  the name of the person or persons to whom
delivery  or payment is to be made,  and a  certification  that the purpose is a
proper under the instruments governing the Customer; and

     (o) Upon the termination of this Agreements set forth in Section 14(i).

Section 12. Standard of Care; Liabilities.

         Add the following subsection (c) to Section 12:

         (c)  The Bank hereby  warrants  to the  Customer  that in its  opinion,
              after due inquiry,  the  established  procedures to be followed by
              each of its branches,  each branch of a qualified U.S. bank,  each
              eligible foreign  custodian and each eligible  foreign  securities
              depository  holding  the  Customer's  Securities  pursuant to this
              Agreement afford  protection for such Securities at least equal to
              that afforded by the Bank's established procedures with respect to
              similar   securities   held  by  the  Bank   and  its   securities
              depositories in New York.

         Section 14.  Access to Records.

         Add the following language to the end of Section 14(c):

         Upon reasonable  request from the Customer,  the Bank shall furnish the
Customer  such  reports (or portions  thereof) of the Bank's  system of internal
accounting  controls  applicable to the Bank's duties under this Agreement.  The
Bank shall endeavor to obtain and furnish the Customer with such similar reports
as it may reasonably  request with respect to each  Subcustodian  and securities
depository holding the Customer's assets.


<PAGE>



                                 GLOBAL CUSTODY
                                   AGREEMENT

                            WITH THE AAL MUTUAL FUNDS

                               DATE August 1, 1995

                                    DOMESTIC
                       SPECIAL TERMS AND CONDITIONS RIDER

Domestic Corporate Actions and Proxies

     With respect to domestic U.S. and Canadian  Securities  (the latter if held
in DTC),  the  following  provisions  will apply rather than the  provisions  of
Section 8 of the Agreement:

     The Bank will send to the Customer or the  Authorized  Person for a Custody
     Account, such proxies (signed in blank, if issued in the name of the Bank's
     nominee or the nominee of a central  depository)  and  communications  with
     respect to Securities  in the Custody  Account as call for voting or relate
     to legal  proceedings  within a reasonable time after sufficient copies are
     received by the Bank for forwarding to its customers. In addition, the Bank
     will follow coupon payments, redemptions, exchanges or similar matters with
     respect to Securities in the Custody Account and advise the Customer or the
     Authorized  Person for such Account of rights issued,  tender offers or any
     other discretionary  rights with respect to such Securities,  in each case,
     of which the Bank has received notice from the issuer of the Securities, or
     as to which notice is published in publications  routinely  utilized by the
     Bank for this purpose.


<PAGE>


                  Mutual Fund Rider to Global Custody Agreement

                   Between The Chase Manhattan Bank, N.A. and

                 The AAL Mutual Funds, effective August 1, 1995


     Customer  represents that the Assets being placed in the Bank's custody are
subject to the  Investment  Company  Act of 1940 (the  Act),  as the same may be
amended from time to time.
          
     Except to the extend that the Bank has specifically agreed to comply with a
condition  of a rule,  regulation,  interpretation  promulgated  by or under the
authority  of the SEC or the  Exemptive  Order  applicable  to  accounts of this
nature issued to the Bank  (Investment  Company Act of 1940,  Release No. 12053,
November 20, 1981),  as amended,  or unless the Bank has otherwise  specifically
agreed,  the Customer shall be solely responsible to assure that the maintenance
of  Assets  under  this  Agreement   complies  with  such  rules,   regulations,
interpretations  or exemptive order promulgated by or under the authority of the
Securities Exchange Commission.

     The following modifications are made to the Agreement:

Section 3. Subcustodians and Securities Depositories.

     Add the following language to the end of section 3:

     The  terms  Subcustodian  and  securities  depositories  as  used  in  this
Agreement  shall mean a branch of a qualified  U.S.  bank,  an eligible  foreign
custodian  or an  eligible  foreign  securities  depository,  which are  further
defined as follows:

     (a)  "qualified  U.S.  Bank" shall mean a qualified U.S. bank as defined in
Rule 17f-5 under the Investment Company Act of 1940;

     (b) "eligible  foreign  custodian"  shall mean (i) banking  institution  or
trust company  incorporated  or organized under the laws of a country other than
the United States that is regulated as such by that  country's  government or an
agency  thereof and that has  shareholders'  equity in excess of $200 million in
U.S. currency (or a foreign currency equivalent thereof),  (ii) a majority owned
direct or indirect  subsidiary of a qualified U.S. bank or bank holding  company
that is  incorporated  or organized  under the laws of a country  other than the
United  States and that has  shareholders'  equity in excess of $100  million in
U.S.  currency  (or a  foreign  currency  equivalent  thereof)  (iii) a  banking
institution  or trust  company  incorporated  or  organized  under the laws of a
country  other than the United  States or a majority  owned  direct or  indirect
subsidiary of a qualified U.S. bank or bank holding company that is incorporated
or organized  under the laws of a country other than the United States which has
such other  qualifications as shall be specified in Instructions and approved by
the  bank;  or (iv) any other  entity  that  shall  have  been so  qualified  by
exemptive order, rule or other appropriate action of the SEC; and

     (c)  "eligible  foreign  securities  depository"  shall  mean a  securities
depository or clearing  agency,  incorporated  or organized  under the laws of a
country other than the United States,  which operates (i) the central system for
handling  securities  or  equivalent  book-entries  in that  country,  or (ii) a
transnational  system for the  central  handling  of  securities  or  equivalent
book-entries.  The Customer  represents that its Board of Directors has approved
each of the  Subcustodians  listed in Schedule A to this Agreement and the terms
of the subcustody agreements between the Bank and each Subcustodian, and further
represents that its Board has determined that the use of each  Subcustodian  and
the terms of each subcustody agreement are consistent with the best interests of
the Fund(s) and its (their) shareholders. The Bank will supply the Customer with
any  amendment  to Schedule A for  approval.  The  Customer has supplied or will
supply the Bank with  certified  copies of its Board of Directors  resolution(s)
with respect to the foregoing  prior to placing Assets with any  Subcustodian so
approved.

Section 11. Instructions.

     Add the following language to the end of Section 11:

     Deposit Account Payments and Custody Account  Transactions made pursuant to
Section  5 and 6 of this  Agreement  may be made  only for the  purposes  listed
below.  Instructions must specify the purpose for which any transaction is to be
made and Customer shall be solely responsible to assure that Instructions are in
accord with any limitations or restrictions applicable to the Customer by law or
as may be set forth in its  prospectus.  (a) In connection  with the purchase or
sale of Securities at prices as confirmed by  Instructions;  (b) When Securities
are called,  redeemed or retired,  or otherwise payable;  (c) In exchange for or
upon  conversion  into  other  securities  alone  or other  securities  and cash
pursuant to any plan or merger, consolidation, reorganization,  recapitalization
or readjustment;  (d) Upon conversion of Securities pursuant to their terms into
other securities;  (e) Upon exercise of subscription,  purchase or other similar
rights  represented  by  Securities;  (f) For the  payment of  interest,  taxes,
management or supervisory  fees,  distributions  or operating  expenses;  (g) In
connection with any borrowings by the Customer requiring a pledge of Securities,
but only against receipt of amounts borrowed;

     (h) In  connection  with any loans,  but only  against  receipt of adequate
collateral as specified in  Instructions  which shall  reflect any  restrictions
applicable to the Customer;
        
     (i) For the  purpose  of  redeeming  shares  of the  capital  stock  of the
Customer and the delivery to, or the crediting to the account of, the Bank,  its
Subcustodian or the Customer's  transfer  agent,  such shares to be purchased or
redeemed;

     (j) For the purpose of  redeeming  in kind shares of the  Customer  against
delivery to the Bank, its Subcustodian or the Customer's  transfer agent of such
shares to be so redeemed;

     (k) For delivery in accordance  with the provisions of any agreement  among
the  Customer,  the Bank and a  broker-dealer  registered  under the  Securities
Exchange  Act of  1934  (the  "Exchange  Act")  and a  member  of  The  National
Association of Securities  Dealers,  Inc. ("NASD"),  relating to compliance with
the rules of The Options  Clearing  Corporation  and of any registered  national
securities exchange, or of any similar organization or organizations,  regarding
escrow or other arrangements in connection with transactions by the Customer;
  
     (l) For release of  Securities  to  designated  brokers  under covered call
options,  provided,  however,  that such Securities  shall be released only upon
payment  to the  Bank of  monies  for the  premium  due  and a  receipt  for the
Securities  which are to be held in escrow.  Upon exercise of the option,  or at
expiration,  the bank  will  receive  from  brokers  the  Securities  previously
deposited.  The Bank will act strictly in accordance  with  Instructions  in the
delivery of Securities to be held in escrow and will have no  responsibility  or
liability for any such Securities which are not returned promptly when due other
than to make proper request for such return;

     (m)  For  spot or  forward  foreign  exchange  transactions  to  facilitate
security trading, receipt of income from Securities or related transactions;

     (n) For other proper purposes as may be specified in Instructions issued by
an officer of the  Customer  which shall  include a statement of the purpose for
which the  delivery  or  payment  is to be made,  the  amount of the  payment or
specific  Securities to be delivered,  the name of the person or persons to whom
delivery  or payment is to be made,  and a  certification  that the purpose is a
proper under the instruments governing the Customer; and

     (o) Upon the termination of this Agreements set forth in Section 14(i).

Section 12. Standard of Care; Liabilities.

     Add the following subsection (c) to Section 12:

     (c) The Bank hereby warrants to the Customer that in its opinion, after due
inquiry, the established procedures to be followed by each of its branches, each
branch of a qualified  U.S.  bank,  each  eligible  foreign  custodian  and each
eligible  foreign  securities   depository  holding  the  Customer's  Securities
pursuant to this Agreement afford  protection for such Securities at least equal
to that afforded by the Bank's  established  procedures  with respect to similar
securities held by the Bank and its securities depositories in New York.

Section 14. Access to Records.

     Add the following language to the end of Section 14(c):

     Upon  reasonable  request  from the  Customer,  the Bank shall  furnish the
Customer  such  reports (or portions  thereof) of the Bank's  system of internal
accounting  controls  applicable to the Bank's duties under this Agreement.  The
Bank shall endeavor to obtain and furnish the Customer with such similar reports
as it may reasonably  request with respect to each  Subcustodian  and securities
depository holding the Customer's assets.


<PAGE>



                            GLOBAL CUSTODY AGREEMENT

                            WITH THE AAL MUTUAL FUNDS

                               DATE August 1, 1995

                                    DOMESTIC
                       SPECIAL TERMS AND CONDITIONS RIDER

Domestic Corporate Actions and Proxies

With respect to domestic  U.S. and  Canadian  Securities  (the latter if held in
DTC), the following  provisions will apply rather than the provisions of Section
8 of the Agreement:

     The Bank will send to the Customer or the  Authorized  Person for a Custody
     Account, such proxies (signed in blank, if issued in the name of the Bank's
     nominee or the nominee of a central  depository)  and  communications  with
     respect to Securities  in the Custody  Account as call for voting or relate
     to legal  proceedings  within a reasonable time after sufficient copies are
     received by the Bank for forwarding to its customers. In addition, the Bank
     will follow coupon payments, redemptions, exchanges or similar matters with
     respect to Securities in the Custody Account and advise the Customer or the
     Authorized  Person for such Account of rights issued,  tender offers or any
     other discretionary  rights with respect to such Securities,  in each case,
     of which the Bank has received notice from the issuer of the Securities, or
     as to which notice is published in publications  routinely  utilized by the
     Bank for this purpose.

CHASE
SCHEDULE A


June, 95
                           SUB-CUSTODIANS EMPLOYED BY

              THE CHASE MANHATTAN BANK, N.A. LONDON, GLOBAL CUSTODY

                             17f-5 QUALIFIED AGENTS



<TABLE>
<CAPTION>
<S>                 <C>                                <C>    
COUNTRY             SUB-CUSTODIAN                      CORRESPONDENT BANK


ARGENTINA           The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Main Branch                        Buenos Aires
                    25 De Mayo 130/140
                    Buenos Aires
                    ARGENTINA

AUSTRALIA           The Chase Manhattan Bank           The Chase Manhattan Bank
                    Australia Limited                  Australia Limited
                    36th Floor                         Sydney
                    World Trade Center
                    Jamison Street
                    Sydney
                    New South Wales 2000
                    AUSTRALIA

AUSTRIA             Creditanstalt - Bankverein         Credit Lyonnais
                    Schottengasse 6                    Vienna
                    A - 1011, Vienna
                    AUSTRIA


BANGLADESH          Standard Chartered Bank            Standard Chartered Bank
                    18-20 Motijheel C.A.               Dhaka
                    Box 536,
                    Dhaka-1000
                    BANGLADESH

BELGIUM             Generale Bank                      Credit Lyonnais Bank
                    3 Montagne Du Parc                 Brussels
                    1000 Bruxelles
                    BELGIUM


BOTSWANA            Barclays Bank of                   Barclays Bank of
                    Botswana Ltd.                      Botswana Ltd
                    Gaborone                           Gaborone
                    BOTSWANA

BRAZIL              Banco Chase Manhattan, S.A.        Banco Chase Manhattan S.A.
                    Chase Manhattan Center             Sao Paulo
                    Rua Verbo Divino, 1400
                    Sao Paulo, SP 04719-002
                    BRAZIL

CANADA              The Royal Bank of Canada           Royal Bank of Canada
                    Royal Bank Plaza                   Toronto
                    Toronto
                    Ontario M5J 2J5
                    CANADA

                    Canada Trust                       Royal Bank of Canada
                    Canada Trust Tower                 Toronto
                    BCE Place
                    161 Bay at Front
                    Toronto
                    Ontario M5J 2T2
                    CANADA

CHILE               The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Agustinas 1235                     Santiago
                    Casilla 9192
                    Santiago
                    CHILE

COLOMBIA            Cititrust Colombia S.A.            Cititrust Colombia SA.
                    Sociedad Fiduciaria                Sociedad Fiduciaria
                    Carrera 9a No 99-02                Santafe de Bogota
                    Santafe de Bogota, DC
                    COLOMBIA

CZECH REPUBLIC      Ceskoslovenska Obchodni 
                         Banka, A.S.                   Ceskoslovenska Obchodni Banka
                    Na Prikope 14                      A.S.
                    115 20 Praha I Praha
                    CZECH REPUBLIC


DENMARK             Den Danske Bank                    Den Danske Bank
                    2 Holmens Kanala DK 1091           Copenhagen
                    Copenhagen
                    DENMARK



EGYPT               National Bank of Egypt             National Bank of Egypt
                    24 Sherif Street                   Cairo
                    Cairo
                    EGYPT

EUROBONDS           Cedet S.A.                         ECU:Lloyds Bank PLC
                    67 Boulevard Grande                International Banking Division
                    Duchesse Charlotte                 London
                    LUXEMBOURG                         For all other currencies: see
                    A/c The Chase                      relevant country
                    Manhattan Bank, N.A.
                    London
                    A/c No. 17817

EURO CDS            First Chicago Clearing Centre      ECU:Lloyds Bank PLC
                    27 Leadenhall Street               Banking Division London
                    London EC3A IAA                    For all other currencies: see
                    UNITED KINGDOM                     relevant country

FINLAND             Kansallis-Osake-Pankki             Kanasallis-Osake-Pankki
                    Aleksis Kiven 3-5                  Helsinki
                    00500 Helsinki
                    FINLAND

FRANCE              Banque Paribas                     Societe Generale
                    Ref256                             Paris
                    BP 141
                    3, Rue D'Antin
                    75078 Paris
                    Cedex 02
                    FRANCE

GERMANY             Chase Bank A.G.                    Chase Bank A. G.
                    Alexanderstrasse 59                Frankfurt
                    Postfach 90 01 09
                    60441 Frankfurt/Main
                    GERMANY

GHANA               Barclays Bank of                   Barclays Bank of
                    Ghana Ltd.                         Ghana Ltd.
                    Accra
                    GHANA

GREECE              Barclays Bank Plc                   National Bank of Greece S.A.
                    I Kolokotroni Street                Athens
                    10562 Athens                        Alc Chase Manhattan Bank, N.A.,
                    GREECE                              London
                                                        Alc No. 040/7/921578-68



HONG KONG           The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    40/F One Exchange Square           Hong Kong
                    8, Connaught Place
                    Central, Hong Kong
                    HONG KONG


HUNGARY             Citibank Budapest Rt.              Citibank Budapest Rt.
                    Vaci Utca 19-21                    Budapest
                    1052 Budapest V
                    HUNGARY


INDIA               The Hongkong and Shanghai          The Hongkong and Shanghai
                    Banking Corporation Limited        Banking Corporation Limited
                    52/60 Mahatma Gandhi Road          Bombay
                    Bombay 400 001
                    INDIA


INDONESIA           The Hongkong and Shanghai          The Chase Manhattan Bank, N.A.
                    Banking Corporation Limited        Jakarta
                    World Trade Center
                    J1. Jend Sudirman Kav. 29-31
                    Jakarta 10023
                    INDONESIA

IRELAND             Bank of Ireland                    Allied Irish Bank
                    International Financial            Dublin
                    Services Centre
                    I Harbourmaster Place
                    Dublin 1
                    IRELAND


ISRAEL              Bank Leumi Le-Israel B.M.          Bank Leumi Le-Israel B.M
                    19 Herzl Street                    Tel Aviv
                    65136 Tel Aviv
                    ISRAEL


ITALY               The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Piazza Mcda I                      Milan
                    20121 Milan
                    ITALY




JAPAN               The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    1-3 Marunouchi  1-Chome            Tokyo
                    Chiyoda-Ku
                    Tokyo 100
                    JAPAN


JORDAN               Arab Bank Limited                 Arab Bank Limited
                     P 0 Box 950544-5                  Amman
                     Amman
                     Shmeisani
                     JORDAN

MALAYSIA            The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Pernas International               Kuala Lumpur
                    Jalan Sultan Ismail
                    50250, Kuala Lumpur
                    MALAYSIA

MAURITIUS           The Hongkong and Shanghai          The Hongkong and Shanghai
                    Banking Corporation Limited        Banking Corporation Limited
                    Port Louis                         Port Louis
                    MAURITIUS

MEXICO              The Chase Manhattan Bank, N.A.     No correspondent Bank
(Equities)          Hamburgo 213, Piso 7
                    Colonia Juarez, 06660 Mexico D.F.
                    MEXICO

(Government Bonds)  Banco Nacional de Mexico,          No correspondent Bank
                    Avenida Juarez No. 104 - 11 Piso
                    06040 Mexico D.F.
                    MEXICO


MOROCCO             Banque Commerciale du Maroc        Banque Commerciale du Maroc
                    I Rue ldriss Lahrizi               Casablanca
                    Casablanca 0 1
                    MOROCCO


NETHERLANDS         ABN AMRO N.V.                      Credit Lyonnais
                     Securities Centre                 Bank Nederland N. V.
                     P 0 Box 3200                      Rotterdam
                     4800 De Breda
                     NETHERLANDS




NEW ZEALAND         National Nominees Limited          National Bank of New Zealand
                    Level 2 BNZ Tower                  Wellington
                    125 Queen Street
                    Auckland
                    NEW ZEALAND


NORWAY              Den norske Bank                    Den norske Bank
                    Kirkegaten 21                      Oslo
                    Oslo I
                    NORWAY

PAKISTAN            Citibank N.A.                      Citibank N.A.
                    State Life Building No. 1          Karachi
                    I.I. Chundrigar Road
                    Karachi
                    PAKISTAN

PERU                Citibank, N.A.                     Citibank N.A.
                    Camino Real 457                    Lima
                    CC Torre Real - 5th Floor
                    San Isidro, Lima 27
                    PERU

PHILLIPPINES        The Hongkong and Shanghai          The Hongkong and Shanghai
                    Banking Corporation Limited        Banking Corporation Limited
                    Hong Kong Bank Centre 3/F          Manila
                    San Miguel Avenue
                    Ortigas Commercial Centre
                    Pasig Metro Manila
                    PHILIPPINES

POLAND              Bank Handlowy W. Warsawie. S.A.    Bank Polska Kasa Opieki S.A.
                    Custody Dept. Capital Markets      Warsaw
                    Centre - V Branch
                    LTI, Kasprzaka 18/20
                    01-211 Warsaw
                    POLAND

PORTUGAL            Banco Espirito Santo & Comercial
                      de Lisboa                        Banco Pinto & Sotto Mayor
                    Servico de Gestaode Titulo         Avenida Fontes Pereira de Melo
                    R. Mouzinho da Silveira, 36 r/c    1000 Lisbon
                    1200 Lisbon
                    PORTUGAL

SHANGHM (CHINA)     The Hongkong and Shanghai          The Chase Manhattan Bank, N.A.
                    Banking Corporation Limited        Hong Kong
                    Shanghai Branch
                    Corporate Banking Centre
                    Unit 504, 5/F Shanghai Centre
                    1376 Nanjing Xi Lu
                    Shanghai
                    THE PEOPLE'S REPUBLIC OF CHINA

SHENZHEN (CHINA)    The Hong kong and Shanghai         The Chase Manhattan Bank, N.A.
                    Banking Corporation Limited        Hong Kong
                    I st Floor
                    Central Plaza Hotel
                    No. I Chun Feng Lu
                    Shenzhen
                    THE PEOPLE'S REPUBLIC OF CHINA

SINGAPORE           The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Shell Tower                        Singapore
                    50 Raffles Place
                    Singapore 0 104
                    SINGAPORE

 SLOVAK REPUBLIC    Ceskoslovenska Obchodni Banka,     Ceskoslovenska
                    S.A. (CSOB)                        Obchodni Banka,
                    Michalska 18                       S.A.
                    815 63 Bratislava                  Bratislava
                    SLOVAK REPUBLIC

SOUTH AFRICA        Standard Bank of South Africa      Standard Bank of South Africa
                    Standard Bank Chambers             South Africa
                    46 Marshall Street
                    Johannesburg 2001
                    SOUTH AFRICA

SOUTH KOREA         The Hongkong & Shanghai            The Hongkong & Shanghai
                    Banking Corporation Limited        Banking Corporation Limited
                    6/F Kyobo Building                 Seoul
                    #1 Chongro, 1-ka Chongro-Ku,
                    Seoul
                    SOUTH KOREA

SPAIN               The Chase Manhattan Bank, N.A.     Banco Bilbao Vizcaya
                    Calle Peonias 2                    Madrid
                    7th Floor
                    La Piovera
                    28042 Madrid
                    SPAIN


SRI LANKA           The Hongkong & Shanghai            The Hongkong & Shangai
                    Banking Corporation Limited        Banking Corporation Limited
                    24, Sir Baron Jayatilaka Mawatha,  Colomho
                    Colombo 1,
                    SRI LANKA

SWEDEN              Skandinaviska Enskilda Banken      Svenska Handelsbanken
                    Kungstradgardsgatan 8              Stockholm
                    Stockholm S-106 40
                    SWEDEN

SWITZERLAND         Union Bank of Switzerland          Union Bank of Switzerland
                    45 Bahnhofstrassc                  Zurich
                    8021 Zurich
                    SWITZERLAND


TAIWAN              The Chase Manhattan Bank, N.A.     No correspondent Bank
                    673 Min Sheng East Road - 9th Floor
                    Taipei
                    TAIWAN
                    Republic of China

THAILAND            The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Bubhajit Building                  Bangkok
                    20 North Sathorn Road
                    Silom, Bangrak
                    Bangkok 10500
                    THAILAND

TURKEY              The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Yildiz Posta Caddesi 52            Istanbul
                    Dedeman Ticaret Merkezi, Kat 11
                    80700 Esentepe
                    Istanbul
                    TURKEY

 U. K.              The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    Woolgate House                     London
                    Coleman Street
                    London EC2P 2HD
                    UNITED KINGDOM

URUGUAY             The First National Bank of Boston  The First National Bank of Boston
                    Zabala 1463                        Montevideo
                    Montevideo
                    URUGUAY

U.S.A.              The Chase Manhattan Bank, N.A.     The Chase Manhattan Bank, N.A.
                    1 Chase Manhattan Plaza            New York
                    New York
                    NY 10081
                    U.S.A.

VENEZUELA           Citibank N.A.                      Citibank N.A.
                    Carmelitas a Altagracia            Caracas
                    Edificio Citibank
                    Caracas 1010
                    VENEZUELA

ZIMBABWE            Barclays Bank of Zimbabwe          Barclays Bank of Zimbabwe
                    Ground Floor                       Harare
                    Kurima House
                    42 George Silundika Avenue
                    Harare
                    ZIMBABWE


ZAMBIA              Barclays Bank of Zambia            Barclays Bank of Zambia
                    Kafue House                        Lusaka
                    Cairo Road
                    P.O. Box 31936
                    Lusaka
                    ZAMBIA
</TABLE>



                             CUSTODIAN FEE SCHEDULE
                                     BETWEEN

                         THE CHASE MANHATTAN BANK, N.A.
                           GLOBAL SECURITIES SERVICES

                                       AND

                              THE AAL MUTUAL FUNDS



U.S. DOMESTIC ASSETS

All Assets:       0.5 basis points (0.00005)

           $12 book-entry transactions (DTC, FED, PTC, etc.)
           $22 non-book-entry transactions


ASSETS HELD OVERSEAS

Asset-Based Fee:           

     8 basis points on all asset held in foreign securities (Group A)

     16  basis  points  on  all  assets  held  in  foreign securities (Group B)

     40  basis  points  on all  assets  held  in  emerging markets (Group C)

Transaction Fee - Emerging markets - $120.00

           Other Services

           Futures                 $25 per futures transaction
                                   $6 per mark-to-market wire
           Options                 $25 per transaction

           Transfers to
           successor custodian     Transaction
                                   charges in
                                   accordance
                                   with fee
                                   schedule.
           Minimum Fee

           $50,000 per annum

Out-of-Pocket Expenses: (i.e., stamp taxes, registration costs,
scrip fees, special transportation costs, etc.): As incurred.

NOTE: Out-of-pocket expenses will be forwarded to AAL for payment Fees are to be
paid monthly based on the month end market value, as reported by AAL.


Group A

Canada                     Germany                      Switzerland
CedelItaly                 United Kingdom
France                     Japan

Group B

Australia                  Hong Kong                    Norway
Austria                    Ireland                      Singapore
Belgium                    Luxembourg                   Spain
Denmark                    Netherlands                  Sweden
Finland                    New Zealand

Group C

Argentina                  India                        Philippines
Bangladesh                 Indonesia                    Poland
Botswana                   Israel                       Portugal
Brazil                     Jordan                       South Africa
ChileMalaysia              South Korea
ChinaMauritius             Sri Lanka
Colombia                   Mexico                       Taiwan
GhanaMorocco               Thailand
Greece                     Pakistan                     Turkey
Hungary                    Peru                         Uruguay
                           Venezuela


Approved:  /s/ John H. Pender
           ---------------------------------------
               John H. Pender, President
               The AAL Mutual Funds



Approved:  /s/ Jerry Garcia
          ----------------------------------------
               Jerry Garcia, Assistant Treasurer
               Chase Manhattan Bank, N.A.