Common use of Cost of Funds Expense Clause in Contracts

Cost of Funds Expense. The Cost of Funds Expense for any Plan Year shall be the after-tax amount as calculated by taking the amount of the premium(s) for the insurance contract(s) listed above (whether or not such policies are purchased) times the Bank's investment portfolio yield, plus the increase in the policy's cash surrender value since the implementation date times the interest rate paid on federal funds sold. The interest rates used for the portfolio yield and fed funds sold will be an average for the Plan Year.