Common use of Crediting Rate Clause in Contracts

Crediting Rate. Interest will be credited initially at a daily rate equivalent to the crediting rate specified in Exhibit A. Interest will be calculated as simple interest on the Purchase Payment(s) received, less any Claims paid from the Funding Account. Interest will accrue beginning the day [immediately following the day] the Purchase Payment is received. The accrued interest is guaranteed subject to Section 4. The crediting rate is applied under this Agreement from the date of receipt of the initial Purchase Payment through the Maturity Date subject to adjustment pursuant to the terms of this Agreement. The crediting rate may be adjusted if any of the following occur: (a) AXA Equitable receives subsequent Purchase Payments, (b) cumulative Claims are paid from the Funding Account in excess of 20% of the total Purchase Payment(s) received by AXA Equitable prior to the Maturity Date (see Section 2.2 below), (c) AXA Equitable declares a pooled crediting rate adjustment (see Section 2.3 below) or (d) the Maturity Date is changed, as described in Section 5. The crediting rate may be adjusted downward, including below the Initial Minimum Crediting Rate specified in Exhibit A, but it will never be less than zero. Receipt of subsequent Purchase Payment(s) will result in a dollar-weighted blended crediting rate for the Funding Account. The dollar-weighted blended crediting rate is determined by the sum of: (a) the previous Purchase Payment(s) under the Agreement, multiplied by the current crediting rate under the Agreement and (b) the current Purchase Payment under the Agreement, multiplied by the crediting rate AXA Equitable has declared for new Funding Agreements based on the date received and the remaining time until maturity. The sum of (a) and (b) is divided by the sum of all Purchase Payment(s) made under the Agreement, to equal the dollar-weighted blended crediting rate. Such new blended crediting rate is not to exceed the current crediting rate; however, AXA Equitable reserves the right to set the blended crediting rate at a higher rate. The blended crediting rate may be adjusted in the event any of the following occur: (a) Claims are paid from the Funding Account in excess of 20% of the total Purchase Payment(s) received by AXA Equitable (see Section 2.2 below), or (b) a pooled crediting rate adjustment (see Section 2.3 below). The blended crediting rate may be adjusted below the minimum crediting rate specified in Exhibit, A but it will never be less than zero. AXA Equitable will accept subsequent Purchase Payments after Claims are paid, unless the remaining Principal in the Funding Account has been reduced to zero prior to receipt of any subsequent Purchase Payment(s) and no subsequent Purchase Payments are contemplated in Exhibit A. FA-MA2014

Crediting Rate. Interest will be credited initially at a daily rate equivalent to the crediting rate for each General Escrow Tranche and, if applicable, the Special Escrow Tranche, as specified in Exhibit A. Interest will be calculated as simple interest on the Purchase Payment(s) received, less any Claims paid from the Funding AccountGeneral Escrow Tranche(s). Interest will accrue on Purchase Payment(s) in each General Escrow Tranche(s) and the Special Escrow Tranche, if applicable, beginning the day [immediately following the day] the day Purchase Payment is Payment(s) are received. The accrued interest is guaranteed subject to Section 45. The crediting rate is applied to each General Escrow Tranche under this Agreement from the date day immediately following the day of receipt of the initial Purchase Payment Payment(s) through the Maturity Date Expiry Date, subject to adjustment pursuant to the terms of this Agreement. The crediting rate for each General Escrow Tranche may be adjusted if any of the following occur: (a) AXA Equitable receives subsequent Subsequent Purchase PaymentsPayments to a General Escrow Tranche, (b) cumulative Claims are paid from the General Escrow Tranches of the Funding Account in excess of 20% of the total Purchase Payment(s) received by AXA Equitable prior to the Maturity Date (see Section 2.2 3.2 below), (c) AXA Equitable declares a pooled crediting rate adjustment (see Section 2.3 3.3 below) or ), (d) the Expiry Date or Maturity Date is changed, as described in Section 56, or (e) the Expiry Date or Maturity Date is extended as described in Section 6.1. The crediting rate may be adjusted downward, including below the Initial Minimum Crediting Rate specified in Exhibit A, but it will never be less than zero. Receipt The crediting rate is applied to the Special Escrow Tranche, if applicable, under this Agreement from the day immediately following the day of subsequent receipt of the initial Purchase Payment(s) through the Maturity Date. The crediting rate of the Special Escrow Tranche is determined on a quarterly basis. AXA Equitable reserves the right to reset the crediting rate of the Special Escrow Tranche on a monthly basis and all Special Escrow Purchase Payments will accrue interest at the new crediting rate. Receipt of Subsequent Purchase Payment(s) to a General Escrow Tranche will result in a dollar-weighted blended crediting rate for the Funding Accountthat General Escrow Tranche. The dollar-weighted blended crediting rate is FA-MA2016 determined by the sum of: (a) the previous applicable Purchase Payment(s) under the Agreement, multiplied by the current crediting rate under the Agreement and (b) the current Purchase Payment under the Agreement, multiplied by the weekly crediting rate AXA Equitable has declared for new Funding Agreements monies based on the date received and the remaining time until maturitythe Maturity Date. The sum of (a) and (b) is divided by the sum of all applicable Purchase Payment(s) made under the Agreement, to equal the dollar-weighted blended crediting rate. Such new blended crediting rate is not to exceed the current crediting rate; however, AXA Equitable reserves the right to set the blended crediting rate at a higher rate. The blended crediting rate may be adjusted in the event any of the following occur: (a) Claims are paid from the General Escrow Tranche(s) in the Funding Account in excess of 20% of the total Purchase Payment(s) to the General Escrow Tranche(s) received by AXA Equitable (see Section 2.2 3.2 below), or (b) a pooled crediting rate adjustment (see Section 2.3 3.3 below). The blended crediting rate may be adjusted below the minimum crediting rate Initial Crediting Rate specified in ExhibitExhibit A, A but it will never be less than zero. AXA Equitable will accept subsequent Subsequent Purchase Payments after Claims are paid, unless the remaining Principal in the Funding Account has been reduced to zero prior to receipt of any subsequent Subsequent Purchase Payment(s) and no subsequent Purchase Payments are contemplated in Exhibit A. FA-MA2014).