Common use of Purchase of Certificates of Deposit Clause in Contracts

Purchase of Certificates of Deposit. Advisor will advise on the purchase of CDs which are intended to be fully insured by the FDIC or the NCUA for Participant’s accounts. Participant represents that CDs insured by the FDIC or the NCUA are permitted investments of Participant under applicable state and federal laws and Participant’s investment policies. Participant acknowledges that, although Advisor will restrict participation in the Program by financial institutions to those financial institutions which meet the criteria set forth in the Information Statement for the Program, the financial institutions that participate in the Program are generally small in size and are not rated by national credit rating organizations. The CDs will not be collateralized. Hence there will be reliance on federal deposit insurance and it is crucial that Participant's CDs be fully covered by FDIC or NCUA insurance. The FDIC insurance limits are set forth in the Federal Deposit Insurance Act, 12 U.S.C. §§ 1811 et seq., and in the related regulations found in Part 330 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 330). The NCUA insurance limits are set forth in the Federal Credit Union Act, 12 U.S.C. §§ 1751 et seq., and in the related regulations found in Part 745 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 745). You should review these regulations with your solicitor to ensure your compliance. You are responsible for your own compliance with the FDIC and NCUA insurance regulations. Participant understands that (i) CDs in amounts above applicable FDIC or NCUA insurance limits are not insured, and (ii) in determining FDIC and NCUA insurance limits Federal regulations provide that all amounts deposited by a depositor, including amounts deposited directly, through brokers or through other means in a financial institution regardless of the source will be combined in determining the insurance limit. For purposes of operating the Program, Advisor will assume, unless Participant informs Advisor to the contrary, that Participant is entitled to the full limit of FDIC or NCUA insurance in any FDIC-insured financial institution. Advisor will maintain records of all deposits made by Participant through the Program to assist Participant in maintaining CDs within applicable insurance limits, but Advisor is not responsible for deposits made directly by Participant outside of the Program or through other arrangements outside of the Program. It is Participant's sole responsibility to determine that deposits made directly by Participant outside of the Program or through other arrangements outside of the Program do not cause the CDs purchased by Participant under the Program to exceed the applicable insurance limit. Advisor will not monitor deposits made directly by Participant outside of the Program or through other arrangements outside of the Program, and Advisor has no responsibility therefor. Advisor strongly recommends that Participant not purchase CDs under the Program from any financial institution with which Participant has a depository relationship outside of the Program. CDs purchased by Participant under the Program are generally not negotiable and not liquid. If Participant wishes to make an early withdrawal, substantial penalties may apply. Certain financial institutions offering CDs through the Program do not permit withdrawals prior to the stated maturity date.

Purchase of Certificates of Deposit. Advisor will advise on the purchase of CDs which are intended to be fully full insured by the FDIC or the NCUA for Participant’s accounts. Participant represents that CDs insured by the FDIC or the NCUA are permitted investments of Participant under applicable state and federal laws and Participant’s investment policies. Participant acknowledges that, although Advisor will restrict participation in the Program by financial institutions to those financial institutions which meet the criteria set forth in the Information Statement for the Program, the financial institutions that participate in the Program are generally small in size and are not rated by national credit rating organizations. The CDs will not be collateralized. Hence there will be reliance on federal deposit insurance and it is crucial that Participant's CDs be fully covered by FDIC or NCUA insurance. The FDIC insurance limits are set forth in the Federal Deposit Insurance Act, 12 U.S.C. §§ §1811 et seq., and in the related regulations found in Part 330 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 330). The NCUA insurance limits are set forth in the Federal Credit Union Act, 12 U.S.C. §§ 1751 et seq., and in the related regulations found in Part 745 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 745). You should review these regulations with your solicitor to ensure your compliance. You are ultimately responsible for your own compliance with the FDIC and NCUA insurance regulations. Participant understands that (i) CDs in amounts above applicable FDIC or NCUA insurance limits are not insured, and (ii) in determining FDIC and NCUA insurance limits Federal regulations provide that all amounts deposited by a depositor, including amounts deposited directly, through brokers or through other means in a financial institution regardless of the source will be combined in determining the insurance limit. For purposes of operating the Program, Advisor will assume, unless Participant informs Advisor to the contrary, that Participant is entitled to the full limit of FDIC or NCUA insurance in any FDIC-insured financial institution. Advisor will maintain records of all deposits made by Participant through the Program to assist Participant in maintaining CDs within applicable insurance limits, but Advisor is not responsible for deposits made directly by Participant outside of the Program or through other arrangements outside of the Program. It is Participant's sole responsibility to determine that deposits made directly by Participant outside of the Program or through other arrangements outside of the Program do not cause the CDs purchased by Participant under the Program to exceed the applicable insurance limit. Advisor will not monitor deposits made directly by Participant outside of the Program or through other arrangements outside of the Program, and Advisor has no responsibility therefor. Advisor strongly recommends that Participant not purchase CDs under the Program from any financial institution with which Participant has a depository relationship outside of the Program. CDs purchased by Participant under the Program are generally not negotiable and not liquid. If Participant wishes to make an early withdrawal, substantial penalties may apply. Certain financial institutions offering CDs through the Program do not permit withdrawals prior to the stated maturity date.

Purchase of Certificates of Deposit. Advisor will advise on the purchase of CDs which are intended to be fully insured by the FDIC or the NCUA for Participant’s accounts. Participant represents that CDs insured by the FDIC or the NCUA Federal Deposit Insurance Corporation ("FDIC") are permitted investments of Participant under applicable state and federal laws and Participant’s investment policies. Participant acknowledges that, although Advisor will restrict participation in the Program by financial institutions to those financial institutions which meet the criteria set forth in the Information Statement for the Program, the financial institutions that participate in the Program are generally small in size and are not rated by national credit rating organizations. The CDs will not be collateralized. Hence there will be reliance on federal deposit insurance and it is crucial that Participant's CDs be fully covered by FDIC or NCUA insurance. The FDIC insurance limits are set forth in the Federal Deposit Insurance Act, 12 U.S.C. §§ §1811 et seq., and in the related regulations found in Part 330 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 330). The NCUA insurance limits are set forth in the Federal Credit Union Act, 12 U.S.C. §§ 1751 et seq., and in the related regulations found in Part 745 of Title 12 of the Code of Federal Regulations (12 C.F.R. Part 745). You should review these regulations with your solicitor to ensure your compliance. You are ultimately responsible for your own compliance with the FDIC and NCUA insurance regulations. Participant understands that (i) CDs in amounts above applicable FDIC or NCUA insurance limits are not insured, and (ii) in determining FDIC and NCUA insurance limits Federal regulations provide that all amounts deposited by a depositor, including amounts deposited directly, through brokers or through other means in a financial institution regardless of the source will be combined in determining the insurance limit. For purposes of operating the Program, the Advisor will assume, unless Participant informs the Advisor to the contrary, that Participant is entitled to the full limit of FDIC or NCUA insurance in any FDIC-insured financial institution. The Advisor will maintain records of all deposits made by Participant through the Program to assist Participant in maintaining CDs within applicable insurance limits, but the Advisor is not responsible for deposits made directly by Participant outside of the Program or through other arrangements outside of the Program. It is Participant's sole responsibility to determine that deposits made directly by Participant outside of the Program or through other arrangements outside of the Program do not cause the CDs purchased by Participant under the Program to exceed the applicable insurance limit. The Advisor will not monitor deposits made directly by Participant outside of the Program or through other arrangements outside of the Program, and the Advisor has no responsibility therefor. The Advisor strongly recommends that Participant not purchase CDs under the Program from any financial institution with which Participant has a depository relationship outside of the Program. Before initiating any transaction for the purchase of a CD under the Program, the Advisor will require that an authorized representative of Participant affirm that the transaction will not put Participant in a position of exceeding the applicable FDIC insurance limits with respect to the CD. CDs purchased by Participant under the Program are generally not negotiable and not liquid. If Substantial penalties may apply if Participant wishes to make an early withdrawal, substantial penalties may apply. Certain financial institutions offering CDs through the Program do not permit withdrawals prior to the stated maturity date.