COMBINED NOTES TO FINANCIAL STATEMENTS
NOTE 6 -- FINANCING AGREEMENT
Effective July 3, 1996, a financing agreement was put in place with all of the Evergreen Funds and their custodian,
State Street Bank and Trust Company (the "Bank"). Under the agreement, the Bank is providing an unsecured
line of credit facility, in the aggregate amount of $100 million ($50 million committed and $50 million
uncommitted), to be accessed by the Funds for temporary or emergency purposes only and is subject to each
participating Fund's borrowing restrictions. Borrowings under this facility bear interest at .75% per annum above
the Bank's cost of funds as set periodically by the Bank. A commitment fee of .10% per annum will be incurred
on the unused portion of the committed facility which will be allocated to all participating funds.
Prior to July 3, 1996, Global Real Estate had a financing agreement with the Bank, which provided the Fund with
a line of credit, in the aggregate amount of the lesser of $5,000,000 or 5% of the value of the Fund's net assets,
to be accessed for temporary or emergency purposes. Borrowings under the line of credit bore interest at 1%
above the Bank's cost of funds as set periodically by the Bank and were secured by securities pledged by the
During the year ended October 31, 1996, Global Real Estate had borrowings outstanding for 162 days under the
lines of credit and incurred interest charges amounting to $16,803. Global Real Estate's average debt outstanding
during the year aggregated $583,642 at a weighted average interest rate of 6.4%. Global Real Estate had no
outstanding borrowings at October 31, 1996.
NOTE 7 -- CONCENTRATION OF CREDIT RISK
Since Global Real Estate invests a substantial portion of its assets in REITs, it may be more affected by economic
developments in the real estate industry than would a general equity fund.
NOTE 8 -- DEFERRED TRUSTEES' FEES
Each Trustee may defer any or all of his compensation related to performance of his duties as a Trustee of