Common use of Purchase of Certificates of Deposit Clause in Contracts

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 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. Substantial penalties may apply if Participant wishes to make an early withdrawal.

Purchase of Certificates of Deposit. Participant represents that CDs The Advisor will purchase non-negotiable CDs, which are intended to be fully insured by the Federal Deposit Insurance Corporation ("“FDIC") are permitted investments of Participant under applicable state and federal laws and ”), for the Participant’s investment policiesaccount directly from the issuers of such CDs or through such brokers as the Advisor selects. Each CD will be issued by the financial institution in book-entry form and the book-entry registration shall be maintained by the financial institution. A safekeeping receipt or copy of the CD will be provided by the financial institution to Advisor and will be provided to Participant upon request. Participant authorizes the Advisor, in its capacity as transfer agent of the Portfolio, to redeem shares in Participant’s Designated Account, and Participant authorizes the custodian of the Portfolio to wire cash from Participant’s Designated Account to financial institutions that will issue CDs being purchased by Participant. Participant acknowledges that, although Advisor will restrict participation in the Program by that financial institutions to those financial institutions from which meet the criteria set forth in the Information Statement for the Program, the financial institutions that participate in the Program CDs are generally purchased may be small in size and are may not be 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 ’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, (ii) substantially all of the credit research performed by the Advisor will relate to the eligibility/applicability of FDIC insurance to the CDs, and (iiiii) in determining FDIC insurance limits 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 CDs purchased by the Advisor for the Participant through the Program to assist the Participant in maintaining CDs within applicable insurance limits, but the Advisor is not responsible for the effects on FDIC insurance limits of deposits made directly by the Participant outside of the Program or through other arrangements outside of the Programarrangements. It is the Participant's ’s sole responsibility to determine that deposits made directly by the Participant outside of the Program this Agreement or through other arrangements outside of the Program this Agreement do not cause the CDs purchased by the Participant under the Program hereunder to exceed the total insurance limitlimit for the CDs and other Participant deposits. The Advisor will not monitor monitor, and has no obligation to monitor, deposits made directly by the Participant outside of the Program or through other arrangements outside of and the Program, and Participant agrees that 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 CDthereto. FDIC insured CDs purchased by Participant under the Program generally are generally not negotiable and not liquid. Substantial penalties may apply if the Participant wishes to make makes an early withdrawalredemption.