Common use of INVESTMENT OF HSA ASSETS Clause in Contracts

INVESTMENT OF HSA ASSETS. 4.1 The custodial funds held in this HSA will initially be held in the Accountowner’s Cash Account and invested in FDIC-insured interest-bearing deposit accounts established by the Recordkeeper. The Accountholder understands and acknowledges that the Recordkeeper will post interest based on the average monthly account balance in accordance with the current interest rates and formula at xxx.xxxxx.xxx, which may be updated periodically. 4.2 If the custodial funds held in the Cash Account exceed the Minimum Balance, the Accountowner may elect to establish an Investment Account by directing the Recordkeeper to transfer funds in excess of the Minimum Balance to any of the investment options listed at xxx.xxxxx.xxx. The Recordkeeper will debit the Cash Account, and the funds will be transferred to the Investment Custodian in accordance with the written directions of the Accountowner. The minimum amount that may be transferred to the Investment Account is $50.00. 4.3 The Accountowner understands and acknowledges that amounts held in an Investment Account are not FDIC-insured, are not bank-issued or guaranteed, and are subject to investment risks, including fluctuations in value and the possible loss of the principal amount invested. The Accountowner has the sole authority and discretion to select and direct the investment of assets in the Investment Account and bears full and sole responsibility for the success or failure of any selection made. The Recordkeeper shall have no duty other than to follow the written investment directions of the Accountholder, and shall be under no duty to question the Accountowner’s investment directions. 4.4 The Accountowner understands and acknowledges that the Recordkeeper, the Bank Custodian and the Investment Custodian are NOT liable for any loss of principal or income in the Investment Account or for any expenses that may be incurred relating to investments selected by the Accountowner. 4.5 The Recordkeeper has the right to liquidate assets in the Accountowner’s Investment Account if necessary to make distributions or to pay fees or expenses properly chargeable against the HSA. If the Accountowner does not direct the Recordkeeper to liquidate specific assets, then the Recordkeeper will decide which assets to liquidate in its complete and sole discretion. The Accountowner understands and acknowledges that the Recordkeeper is not liable for any adverse consequences resulting from the Accountowner’s direction to liquidate specific assets or, in the absence of such direction, the Recordkeeper’s decision to liquidate specific assets. 4.6 Notwithstanding anything in this Agreement to the contrary, the following restrictions on investments shall apply: (a) The assets of this HSA may not be merged or co-mingled with other property, except as a part of a common trust fund or common investment fund; (b) No part of this HSA may be invested in life insurance contracts; and (c) No part of this HSA may be invested in any collectible as defined in Code Section 408(m), including, but not limited to, stamps, coins, antiques and works of art. However, investments in any gold coin described in Section 5112(a)(7), (8), (9), or (10) of Title 31, or any silver coin described in Section 5112(e) of Title 31, shall be permitted. 4.7 This HSA may include uninvested cash contributions for which no interest will be received, including without limitation circumstances described in Section 11.1.

INVESTMENT OF HSA ASSETS. 4.1 The custodial funds held in this HSA will initially be held in the Accountowner’s Cash Account and invested in FDIC-insured interest-bearing deposit accounts established by the Recordkeeper. The Accountholder understands and acknowledges that the Recordkeeper will post interest based on the average monthly account balance in accordance with the current interest rates and formula at xxx.xxxxx.xxx, which may be updated periodically. 4.2 If the custodial funds held in the Cash Account exceed the Minimum Balance, the Accountowner may elect to establish an Investment Account by directing the Recordkeeper to transfer funds in excess of the Minimum Balance to any of the investment options listed at xxx.xxxxx.xxx. The Recordkeeper will debit the Cash Account, and the funds will be transferred to the Investment Custodian in accordance with the written directions of the Accountowner. The T he minimum amount that may be transferred to the Investment Account is $50.00. 4.3 The Accountowner understands and acknowledges that amounts held in an Investment Account are not FDIC-insured, are not bank-issued or guaranteed, and are subject to investment risks, including fluctuations in value and the possible loss of the principal amount invested. The Accountowner has the sole authority and discretion to select and direct the investment of assets in the Investment Account and bears full and sole responsibility for the success or failure of any selection made. The Recordkeeper shall have no duty other than to follow the written investment directions of the Accountholder, and shall be under no duty to question the Accountowner’s investment directions. 4.4 The Accountowner understands and acknowledges that the Recordkeeper, the Bank Custodian and the Investment Custodian are NOT liable for any loss of principal or income in the Investment Account or for any expenses that may be incurred relating to investments selected by the Accountowner. 4.5 The Recordkeeper has the right to liquidate assets in the Accountowner’s Investment Account if necessary to make distributions or to pay fees or expenses properly chargeable against the HSA. If the Accountowner does not direct the Recordkeeper to liquidate specific assets, then the Recordkeeper will decide which assets to liquidate in its complete and sole discretion. The Accountowner understands and acknowledges that the Recordkeeper is not liable for any adverse consequences resulting from the Accountowner’s direction to liquidate specific assets or, in the absence of such direction, the Recordkeeper’s decision to liquidate specific assets. 4.6 Notwithstanding anything in this Agreement to the contrary, the following restrictions on investments shall apply: (a) The assets of this HSA may not be merged or co-mingled with other property, except as a part of a common trust fund or common investment fund; (b) No part of this HSA may be invested in life insurance contracts; and (c) No part of this HSA may be invested in any collectible as defined in Code Section 408(m), including, but not limited to, stamps, coins, antiques and works of art. However, investments in any gold coin described in Section 5112(a)(7), (8), (9), or (10) of Title 31, or any silver coin described in Section 5112(e) of Title 31, shall be permitted. 4.7 This HSA may include uninvested cash contributions for which no interest will be received, including without limitation circumstances described in Section 11.1.