J.P. MORGAN CHASE BANK-2016 - Laserfiche WebLink

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B. Exemption. J.P. Morgan recognizes that the City is an "exempt person" under the currency transaction reporting regulations, given the City's status as a political subdivision of a State, and, as a result, the Bank is not required to file currency transaction reports in connection with the City's currency transactions and no exemption designations are required under such regulations for such political subdivisions (31 CFR 1020.315 (a), (b) (2), and (c) (2)). C. Interest Earnings. Bank must be able to provide interest earnings on the Cash Balance in excess of required compensation balances. Please provide options for excess balances. As part of the proposal, the bank shall provide the proposed formula to calculate interest earnings. Ali interest earnings shall be credited to the Operating Account. In today's current rate environment, the City may consider using our Hybrid Demand Deposit account for excess cash balances. The Hybrid Demand Deposit account provides a combination of an earnings credit allowance on non - interest bearing balances to offset banking service fees and an interest rate on balances over a predefined target threshold. Interest accrues daily and is paid monthly. How It Works: Balances up to a predetermined threshold ( "the peg balance ") earn an earnings credit allowance at our enhanced managed earnings credit rate (currently 0.60%) to offset bank service fees. Please see Section V. B. 2. below for additional information on the bank's ECR. Excess balances above the threshold earn hard dollar interest at a proposed managed rate of 0.31% gross /o.189% net of PAF *. The interest rate paid on excess balances above the peg may fluctuate during the contract period as market conditions warrant. Interest accrues daily and is paid on the last business day of the month. The peg balance may be changed at any time prior to the next billing cycle (and will be applied on a go forward basis) to adjust for unplanned changes in transaction fees (e.g. significant volume changes, service additions /deletions, to compensate for periods in which minimum balance levels fall below the peg balance amount). Your relationship team will work with you to determine the appropriate peg balance, which is subject to the mutual agreement of the bank and City. *Please note that all balances held in Demand Deposit Accounts (DDAs), including Hybrid DDA's that exclusively receive ECR, are subject to the firm's Premium Assessment Fee (PAF). The PAF is a monthly administrative fee assessed to address various regulatory and other charges affecting J.P. Morgan. The current Premium Assessment Fee is 0.13%. Page 35 JYMorgan