Common use of Commissions and other costs Clause in Contracts

Commissions and other costs. The Central Bank of Iceland calculates a commission for securities lending transactions. Information can be found in the document “Terms and conditions for securities lending facilities for primary dealers,” which is published on the Government Debt Management website: xxx.xxxxxxx.xx. 1. The commission is based on the Central Bank's policy interest rate, which is presented and specified as the nominal interest rate. Interest payable on loaned securities is calculated by adding a premium to the policy interest rate, and interest payable on collateral securities is calculated by a deducting a haircut from the policy interest rate. The day count rule for calculating interest payable during the term of the agreement is A/360, where A signifies the actual number of days. 2. A processing fee is charged for each agreement concluded. 3. Commissions are paid at the beginning of the term of the agreement. Should the Central Bank incur any costs due to the custody of the collateral securities during the term of the agreement, it is entitled to collect these costs at the beginning of the term of the agreement. An example of such expenses is the custodial fee for HFF bonds held at Euroclear.

Commissions and other costs. The Central Bank of Iceland calculates a commission for securities lending transactions. Information on the calculation of commissions can be found in the document “Terms entitled "Fee schedule and conditions limits for securities lending facilities for primary dealerstransactions,” " which is published on the Government Debt Management website: , xxx.xxxxxxx.xx. 1. The commission is based on the Central Bank's ’s policy interest rate, which is presented and specified as the nominal interest rate. Interest payable on loaned securities is calculated by adding a premium to the policy interest rate, and interest payable on collateral securities is calculated by a deducting a the haircut from the policy interest rate. The day count rule for calculating interest payable during the term of the agreement is A/360, where A signifies the actual number of days. 2. A processing fee is charged for each agreement concluded. 3. Commissions are paid at the beginning of the term of the agreement. Should the Central Bank incur any costs due to the custody of the collateral securities during the term of the agreement, it is entitled to collect these costs at the beginning of the term of the agreement. An example of such expenses is the custodial fee for HFF bonds held at Euroclear.