Common use of Financial Institutions with Local Client Base Clause in Contracts

Financial Institutions with Local Client Base. A Swiss Financial Institution that meets all of the following requirements: a) The Financial Institution must be licensed and regulated under the laws of Switzerland; b) The Financial Institution must have no fixed place of business outside Switzerland; c) The Financial Institution must not solicit account holders outside Switzerland. For this purpose, a Financial Institution shall not be considered to have solicited account holders outside of Switzerland merely because it operates a website, provided that the website does not specifically indicate that the Financial Institution provides accounts or services to nonresidents or otherwise target or solicit U.S. customers; d) The Financial Institution must be required under the tax laws of Switzerland to perform either information reporting or withholding of tax with respect to accounts held by residents of Switzerland; e) At least 98 percent of the accounts by value provided by the Financial Institution must be held by residents (including residents that are entities) of Switzerland or a Member State of the European Union; f) Subject to subparagraph (g), below, beginning on January 1, 2014, the Financial Institution does not provide accounts to (i) any Specified U.S. Person who is not a resident of Switzerland (including a U.S. Person that was a resident of Switzerland when the account was opened but subsequently ceases to be a resident of Switzerland), (ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with Controlling Persons who are U.S. citizens or residents; g) On or before January 1, 2014, the Financial Institution must implement policies and procedures to monitor whether it provides any account held by a person described in subparagraph (f), and if such an account is discovered, the Financial Institution must report such account as though the Financial Institution were a Reporting Swiss Financial Institution or close such account; h) With respect to each account that is held by an individual who is not a resident of Switzerland or by an entity, and that is opened prior to the date that the Swiss Financial Institution implements the policies and procedures described in subparagraph (g), the Financial Institution must review those accounts in accordance with the procedures described in Annex I to this Agreement applicable to Preexisting Accounts to identify any U.S. Account or account held by a Nonparticipating Financial Institution, and must close any such accounts that were identified, or report on such accounts as though the Financial Institution were a Reporting Swiss Financial Institution; i) Each Related Entity of the Financial Institution must be incorporated or organized in Switzerland and must meet the requirements set forth in this paragraph; and j) The Financial Institution must not have policies or practices that discriminate against opening or maintaining accounts for individuals who are Specified U.S. Persons and who are residents of Switzerland.

Financial Institutions with Local Client Base. A Swiss Financial Institution that meets all of the following requirements: a) The Financial Institution must be licensed and regulated under the laws of Switzerland; b) The Financial Institution must have no fixed place of business outside Switzerland; c) The Financial Institution must not solicit account holders outside Switzerland. For this purpose, a Financial Institution shall not be considered to have solicited account holders outside of Switzerland merely because it operates a website, provided that the website does not specifically indicate that the Financial Institution provides accounts or services to nonresidents or otherwise target or solicit U.S. customers; d) The Financial Institution must be required under the tax laws of Switzerland to perform either information reporting or withholding of tax with respect to accounts held by residents of Switzerland; e) At least 98 percent of the accounts by value provided by the Financial Institution must be held by residents (including residents that are entities) of Switzerland or a Member State of the European Union; f) Subject to subparagraph (g), below, beginning on January July 1, 2014, the Financial Institution does not provide accounts to (i) any Specified U.S. Person who is not a resident of Switzerland (including a U.S. Person that was a resident of Switzerland when the account was opened but subsequently ceases to be a resident of Switzerland), (ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with Controlling Persons who are U.S. citizens or residents; g) On or before January July 1, 2014, the Financial Institution must implement policies and procedures to monitor whether it provides any account held by a person described in subparagraph (f), and if such an account is discovered, the Financial Institution must report such account as though the Financial Institution were a Reporting Swiss Financial Institution or close such account; h) With respect to each account that is held by an individual who is not a resident of Switzerland or by an entity, and that is opened prior to the date that the Swiss Financial Institution implements the policies and procedures described in subparagraph (g), the Financial Institution must review those accounts in accordance with the procedures described in Annex I to this Agreement applicable to Preexisting Accounts to identify any U.S. Account or account held by a Nonparticipating Financial Institution, and must close any such accounts that were identified, or report on such accounts as though the Financial Institution were a Reporting Swiss Financial Institution; i) Each Related Entity of the Financial Institution must be incorporated or organized in Switzerland and must meet the requirements set forth in this paragraph; and j) The Financial Institution must not have policies or practices that discriminate against opening or maintaining accounts for individuals who are Specified U.S. Persons and who are residents of Switzerland.

Financial Institutions with Local Client Base. A Swiss Financial Institution that meets all of the following requirements: a) The Financial Institution must be licensed and regulated under the laws of Switzerland; b) The Financial Institution must have no fixed place of business outside Switzerland; c) The Financial Institution must not solicit account holders outside Switzerland. For this purpose, a Financial Institution shall not be considered to have solicited account holders outside of Switzerland merely because it operates a website, provided that the website does not specifically indicate that the Financial Institution provides accounts or services to nonresidents or otherwise target or solicit U.S. customers; d) The Financial Institution must be required under the tax laws of Switzerland to perform either information reporting or withholding of tax with respect to accounts held by residents of Switzerland; e) At least 98 percent of the accounts by value provided by the Financial Institution must be held by residents (including residents that are entities) of Switzerland or a Member State of the European Union;; 40 As amended by exchanges of notes of June 10, 2013 and 21 May, 2014. f) Subject to subparagraph (g), below, beginning on January July 1, 2014201441, the Financial Institution does not provide accounts to (i) any Specified U.S. Person who is not a resident of Switzerland (including a U.S. Person that was a resident of Switzerland when the account was opened but subsequently ceases to be a resident of Switzerland), (ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with Controlling Persons who are U.S. citizens or residents; g) On or before January July 1, 2014201442, the Financial Institution must implement policies and procedures to monitor whether it provides any account held by a person described in subparagraph (f), and if such an account is discovered, the Financial Institution must report such account as though the Financial Institution were a Reporting Swiss Financial Institution or close such account; h) With respect to each account that is held by an individual who is not a resident of Switzerland or by an entity, and that is opened prior to the date that the Swiss Financial Institution implements the policies and procedures described in subparagraph (g), the Financial Institution must review those accounts in accordance with the procedures described in Annex I to this Agreement applicable to Preexisting Accounts to identify any U.S. Account or account held by a Nonparticipating Financial Institution, and must close any such accounts that were identified, or report on such accounts as though the Financial Institution were a Reporting Swiss Financial Institution; i) Each Related Entity of the Financial Institution must be incorporated or organized in Switzerland and must meet the requirements set forth in this paragraph; and j) The Financial Institution must not have policies or practices that discriminate against opening or maintaining accounts for individuals who are Specified U.S. Persons and who are residents of Switzerland.

Financial Institutions with Local Client Base. A Swiss Financial Institution that meets all of the following requirements: a) The Financial Institution must be licensed and regulated under the laws of Switzerland; b) The Financial Institution must have no fixed place of business outside Switzerland; c) The Financial Institution must not solicit account holders outside Switzerland. For this purpose, a Financial Institution shall not be considered to have solicited account holders outside of Switzerland merely because it operates a website, provided that the website does not specifically indicate that the Financial Institution provides accounts or services to nonresidents or otherwise target or solicit U.S. customers; d) The Financial Institution must be required under the tax laws of Switzerland to perform either information reporting or withholding of tax with respect to accounts held by residents of Switzerland; e) At least 98 percent of the accounts by value provided by the Financial 39 As amended by exchanges of notes of June 10, 2013/21 May, 2014. 40 As amended by exchanges of notes of June 10, 2013/21 May, 2014. Institution must be held by residents (including residents that are entities) of Switzerland or a Member State of the European Union; f) Subject to subparagraph (g), below, beginning on January July 1, 2014201441, the Financial Institution does not provide accounts to (i) any Specified U.S. Person who is not a resident of Switzerland (including a U.S. Person that was a resident of Switzerland when the account was opened but subsequently ceases to be a resident of Switzerland), (ii) a Nonparticipating Financial Institution, or (iii) any Passive NFFE with Controlling Persons who are U.S. citizens or residents; g) On or before January July 1, 2014201442, the Financial Institution must implement policies and procedures to monitor whether it provides any account held by a person described in subparagraph (f), and if such an account is discovered, the Financial Institution must report such account as though the Financial Institution were a Reporting Swiss Financial Institution or close such account; h) With respect to each account that is held by an individual who is not a resident of Switzerland or by an entity, and that is opened prior to the date that the Swiss Financial Institution implements the policies and procedures described in subparagraph (g), the Financial Institution must review those accounts in accordance with the procedures described in Annex I to this Agreement applicable to Preexisting Accounts to identify any U.S. Account or account held by a Nonparticipating Financial Institution, and must close any such accounts that were identified, or report on such accounts as though the Financial Institution were a Reporting Swiss Financial Institution; i) Each Related Entity of the Financial Institution must be incorporated or organized in Switzerland and must meet the requirements set forth in this paragraph; and j) The Financial Institution must not have policies or practices that discriminate against opening or maintaining accounts for individuals who are Specified U.S. Persons and who are residents of Switzerland.