Deferred Benefit Account Sample Clauses

Deferred Benefit Account. The Bank shall establish a Deferred Benefit Account on its books for Director, and shall credit to Director’s Deferred Benefit Account the following amounts at the times specified: (a) The compensation that the Director elects to defer pursuant to paragraph 1 above, credited as of the date the Director would otherwise have received the compensation. (b) As of each April 30, an amount equal to the interest earned since the last preceding April 30. Interest shall be calculated using the rate on (1) percentage point over the composite yield on Moody’s Long Term Bond Index rate in effect on the preceding April 30. The interest rate shall be applied to the average balance in the Deferred Benefit Account since the last April 30. The average balance shall be determined by adding the balance as of the end of each month in the year and dividing by 12. Interest will be compounded annually and will continue to be credited on any undistributed balance. A Director’s Deferred Benefit Account shall be utilized solely as a device for the measurement and determination of the amounts to be paid to Director pursuant to this Agreement. A Director’s Deferred Benefit Account shall not constitute or be treated as a trust fund of any kind. Title to and beneficial ownership of any assets, which the Bank may earmark to pay deferred compensation hereunder, shall at all times remain in the Bank, and the Director shall not have any interest in specific assets of the Bank by virtue of this Agreement. The Bank shall provide Director within 120 days after each April 30, a statement in such form as the Bank deems desirable setting forth the balance to the credit of Director in his Deferred Benefit Account as of April 30.