Time Deposit. 1. The Accountholder can use any Enrolled Account as a source account for the time deposit placement. The Accountholder may use the selected source Enrolled Account or a different account as the settlement account where the time deposit’s principal amount and interest earned, if any, will be credited. 2. A time deposit placed through the Facility may only be closed, renewed, or terminated through the Facility. 3. For each renewal of the time deposit placement, the prevailing interest rate at the time of renewal, as determined solely by SBA, will be applied. 4. Time deposits which are terminated prior to maturity date shall earn interest according to the following rates: • If the pre-termination occurs during the first half of the term, the interest rate shall be 25% of the stipulated rate. • If the termination occurs during the second half of the term, the interest rate shall be 50% of the stipulated rate. 5. All applicable taxes, fees, and/or charges (including pre- termination charges) on the time deposit shall be for the account of the Accountholder. 6. SBA shall not issue a Certificate of Time Deposit (CTD) for time deposits placed through the Facility.
Appears in 3 contracts
Sources: Electronic Banking Agreement, Electronic Banking Agreement, Electronic Banking Agreement
Time Deposit. 1. The Accountholder can use any Enrolled Account as a source account for the time deposit placement. The Accountholder may use the selected source Enrolled Account or a different account as the settlement account where the time deposit’s principal amount and interest earned, if any, will be credited.
2. A time deposit placed through the Facility may only be closed, renewed, or terminated through the Facility.
3. For each renewal of the time deposit placement, the prevailing interest rate at the time of renewal, as determined solely by SBA, will be applied.
4. Time deposits which that are terminated prior to maturity date shall earn interest according to the following rates: • If the pre-termination occurs during the first half of the term, the interest rate shall be 25% of the stipulated rate. • If the termination occurs during the second half of the term, the interest rate shall be 50% of the stipulated rate.
5. All applicable taxes, fees, and/or charges (including pre- pre-termination charges) on the time deposit shall be for the account of the Accountholder.
6. SBA shall not issue a Certificate of Time Deposit (CTD) for time deposits placed through the Facility.
Appears in 1 contract
Sources: Electronic Banking Agreement