Purchase of Certificates of Deposit Clause Samples
The 'Purchase of Certificates of Deposit' clause outlines the terms under which a party may acquire certificates of deposit (CDs) as part of a financial agreement. It typically specifies the conditions for purchasing CDs, such as the minimum investment amount, interest rates, maturity dates, and any restrictions on transfer or redemption. For example, the clause may require that CDs be purchased from approved financial institutions or set limits on the total value of CDs held. The core function of this clause is to provide clear guidelines for investing in CDs within the context of the agreement, ensuring both parties understand the rules and limitations associated with such investments.
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 ...
Purchase of Certificates of Deposit. Participant acknowledges that in recommending the purchase of a CD from a particular financial institution, Advisor will rely substantially on the availability to Participant of insurance provided by the Federal Deposit Insurance Corporation (“FDIC”). Deposits, including CDs, in amounts above the FDIC insurance limit are not insured. All amounts deposited by a depositor, including amounts deposited directly, through brokers or through other means, including CDs, in a single financial institution will be combined by the FDIC in determining whether such depositor is within the insurance coverage as to that institution. Advisor will assume, unless Participant informs Advisor to the contrary, that Participant is entitled to the maximum applicable FDIC insurance in any particular FDIC insured financial institution. It is Participant’s sole responsibility to assure that deposits made by Participant in an insured institution outside of this Agreement do not cause the CDs purchased for the account of Participant in such institution to exceed the FDIC insurance limit. Advisor will not monitor deposits made by Participant outside this Agreement, and Advisor has no responsibility therefor. The financial institutions that participate are generally small in size and are not rated by national credit rating organizations. The CDs will not be collateralized. CDs purchased by Participant hereunder are generally not negotiable and not liquid. Substantial penalties may apply if Participant wishes to make an early withdrawal.
Purchase of Certificates of Deposit. (Please review this section.)
Purchase of Certificates of Deposit. Participant represents that CDs insured by the 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 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). You should review these regulations with your solicitor to ensure your compliance. You are ultimately responsible for your own compliance with the FDIC insurance regulations. Participant understands that (i) CDs in amounts above applicable FDIC insurance limits are not insured, and (ii) in determining FDIC 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 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 insurance limit. The Advisor will not monitor deposits made directly by Participant outside of the Program or through other arrangements outs...