Common use of Creation Deposits through the Clearing Process: Allocation of Fails; Posting of Accounts Clause in Contracts

Creation Deposits through the Clearing Process: Allocation of Fails; Posting of Accounts. 1. The Trust recognizes that fails to receive (including partial fails) may occur from time to time with respect to one or more of the security issues in a basket of Deposit Securities settled through the Clearing Process. The Trust acknowledges and agrees that, whenever a fail to receive shall occur on a settlement date, Bank shall book to a single control account maintained for all funds for which Bank provides Index Receipt Agent services (the “Control Account”), the quantity of the security that it failed to receive (each such fail a “short receive position”) and the cash value of that short position that it receives from NSCC (and that NSCC, pursuant to its rules, marks to market daily) pending settlement. Bank shall not post to any ETF Series account any cash that it receives from NSCC on a short receive position pending settlement.

Creation Deposits through the Clearing Process: Allocation of Fails; Posting of Accounts. 1. The Trust recognizes that fails to receive (including partial fails) may occur from time to time with respect to one or more of the security issues creates in a basket of Deposit Securities settled through the Clearing Process. The Trust acknowledges and agrees that, whenever a fail to receive shall occur on a settlement date, Bank ▇.▇. ▇▇▇▇▇▇ shall book to a single control account maintained for all funds for which Bank ▇.▇. ▇▇▇▇▇▇ provides Index Receipt Agent services (the “Control Account”), the quantity of the security that it failed to receive (each such fail a “short receive position”) and the cash value of that short position that it receives from NSCC (and that NSCC, pursuant to its rules, marks to market daily) pending settlement. Bank ▇.▇. ▇▇▇▇▇▇ shall not post to any ETF Series account any cash that it receives from NSCC on a short receive position pending settlement.