Common use of ALLOCATION OF PURCHASE PAYMENTS INTO THE FIXED ACCOUNT Clause in Contracts

ALLOCATION OF PURCHASE PAYMENTS INTO THE FIXED ACCOUNT. Any Purchase Payment to this Contract may be allocated to the Fixed Account of the Contract. Purchase Payments allocated to the Fixed Account of the Contract will be credited to the Fixed Subaccounts. The Owner may allocate Purchase Payments to the Fixed Subaccount subject to the following limitations: a. The minimum amount that may be allocated to the Fixed Subaccount is shown on the Contract Specifications. b. If the Owner elects to allocate any Purchase Payment to a Fixed Subaccount and the Fixed Subaccount was not previously selected, the Owner must first provide LNY with Notice of allocation. Any Purchase Payment allocated to a Fixed Subaccount will be invested at the Guaranteed Interest Rate in effect for the respective one-year Guaranteed Period on the day the allocation is credited to the Fixed Subaccount.