Common use of Termination of the Plan Clause in Contracts

Termination of the Plan. a. The Subscriber may designate a date for the Plan to end (the termination date) by providing ATBSI with clear written instructions signed by the Subscriber as long as the Subscriber follows these rules: i. The termination date cannot be later than the last day of the 35th year following the year the Plan was established or deemed to be established; ii. If Contributions made to another RESP are transferred into the Plan and the other RESP was created before the Plan, the termination date cannot be later than the last day of the 35th year following the year in which the other RESP was created. The Subscriber undertakes to sign and send to the trustees notice in writing of the termination date; The termination date cannot be later than the last day of the 35th year following the year the Plan was established or deemed to be established iii. If the Subscriber dies before the termination date, then the termination date will be the earlier of the termination date that the Subscriber specified and the 31st anniversary of the Subscriber’s death; iv. Under the terms of the Act, the termination date will be before March 1 of the year following the year in which the first Accumulated Income Payment is made out of the Plan; b. The Subscriber may change the termination date by sending ATBSI written instructions. Those instructions must clearly explain the change requested and identify the Plan by its account number. The instructions must be signed by the Subscriber and dated. If ATBSI receives more than one set of instructions, ATBSI will follow the instructions with the later date. c. On or before the termination date, ATBSI must make payments under section 11 or 13 of this Agreement according to the Subscriber’s written instructions. The Subscriber will provide instructions to ATBSI on which of the Plan Assets the Subscriber wants ATBSI to sell to make these payments. If the Subscriber fails to provide instructions on which Plan Assets to sell, ATBSI will sell any of the Plan Assets that ATBSI, in its sole discretion, considers appropriate. ATBSI will make the payments described in this paragraph after deducting: i. Any sales costs and other related fees or charges, including penalties; ii. Any taxes, including interest and penalties, that are or may become payable by the Plan; iii. Any amount required to be withheld on account of the Subscriber’s liability for income tax as a result of withdrawing funds from the Plan; iv. Any fees under section 19 of this Agreement; d. If the Subscriber has not given ATBSI instruction by the termination date for making payments from the Plan, then ATBSI may deposit the amount, if any, which could be refunded under section 13 of this Agreement in an interest bearing account with CWT, ATBSI or an affiliate. CWT will pay any remaining amount to a Designated Educational Institution or to a trust in favor of a Designated Educational Institution, at ATBSI’s discretion and according to Applicable Tax Legislation.

Termination of the Plan. a. The Subscriber may designate a date for the Plan to end (the termination date) by providing ATBSI with clear written instructions signed by the Subscriber as long as the Subscriber follows these rules: i. The termination date cannot be later than the last day of the 35th year following the year the Plan was established or deemed to be established, unless the Plan Beneficiary has a Disability in which case the termination date cannot be later than the last day of the 40th year following the year in which the Plan was established or deemed to be established; ii. If Contributions made to another RESP are transferred into the Plan and the other RESP was created before the Plan, the termination date cannot be later than the last day of the 35th year following the year in which the other RESP was created. The Subscriber undertakes to sign and send to the trustees notice in writing of the termination date; The termination date cannot be later than the last day of the 35th year following the year the Plan was established or deemed to be established, unless the Plan Beneficiary has a Disability in which case the termination date cannot be later than the last day of the 40th year following the year in which the Plan was established or deemed to be established iii. If the Subscriber dies before the termination date, then the termination date will be the earlier of the termination date that the Subscriber specified and the 31st anniversary of the Subscriber’s death; iv. Under the terms of the Act, the termination date will be before March 1 of the year following the year in which the first Accumulated Income Payment is made out of the Plan;. b. The Subscriber may change the termination date by sending ATBSI written instructions. Those instructions must clearly explain the change requested and identify the Plan by its account number. The instructions must be signed by the Subscriber and dated. If ATBSI receives more than one set of instructions, ATBSI will follow the instructions with the later date. c. On or before the termination date, ATBSI must make payments under section 11 or 13 of this Agreement according to the Subscriber’s written instructions. The Subscriber will provide instructions to ATBSI on which of the Plan Assets the Subscriber wants ATBSI to sell to make these payments. If the Subscriber fails to provide instructions on which Plan Assets to sell, ATBSI will sell any of the Plan Assets that ATBSI, in its sole discretion, considers appropriate. ATBSI will make the payments described in this paragraph after deducting: i. Any sales costs and other related fees or charges, including penalties; ii. Any taxes, including interest and penalties, that are or may become payable by the Plan; iii. Any amount required to be withheld on account of the Subscriber’s liability for income tax as a result of withdrawing funds from the Plan; iv. Any fees under section 19 of this Agreement;. d. If the Subscriber has not given ATBSI instruction by the termination date for making payments from the Plan, then ATBSI may deposit the amount, if any, which could be refunded under section 13 of this Agreement in an interest bearing account with CWT, ATBSI or an affiliate. CWT will pay any remaining amount to a Designated Educational Institution or to a trust in favor of a Designated Educational Institution, at ATBSI’s discretion and according to Applicable Tax Legislation.