Excess Program Withdrawals Sample Clauses
The Excess Program Withdrawals clause defines the rules and procedures for removing funds from an account or program when the withdrawals exceed a specified threshold or limit. Typically, this clause outlines the conditions under which excess withdrawals are permitted, any associated fees or penalties, and the notification requirements for both parties. Its core practical function is to manage and control the frequency and amount of withdrawals, thereby protecting the financial stability of the program and ensuring all parties are aware of the consequences of exceeding agreed-upon limits.
Excess Program Withdrawals. (a) With the ICS savings option, the consequences of exceeding the limit of six Program Withdrawals depend on whether you give us, in Section 4 of this Appendix A, an advance instruction to endeavor to reallocate your funds from the ICS savings option to the ICS demand option in the circumstances described in Section 3(b) of this Appendix A (a “Reallocation Instruction”).
(b) If you give us a Reallocation Instruction, the following provisions will apply:
(i) So long as you have not exceeded the limit of six Program Withdrawals for the ICS savings option in any two previous months:
(A) you may use all six permitted Program Withdrawals in a month, and
(B) if an excess (seventh) Program Withdrawal occurs before the last Business Day of the month, we will endeavor to reallocate all the remaining funds in your MMDAs at Destination Institutions to DDAs at Destination Institutions, and we will transfer to the Root Account any such funds not so reallocated.
(ii) If you have exceeded the limit of six Program Withdrawals for the ICS savings option in any two previous months and a sixth Program Withdrawal occurs in a month, (A) we will endeavor to reallocate all the remaining funds in your MMDAs at Destination Institutions to DDAs at Destination Institutions, and we will transfer to the Root Account any such funds not so reallocated, and (B) the ICS Custodial Account will be ineligible for the ICS savings option for the remainder of the month and for the next six full months. Your eligibility to use the ICS demand option will not be affected.
(c) If you do not give us a Reallocation Instruction, the following provisions will apply:
(i) If you have not exceeded the limit of six Program Withdrawals for the ICS savings option in any two previous months:
(A) you may use all six permitted Program Withdrawals in a month, and
(B) if an excess (seventh) Program Withdrawal occurs before the last Business Day of the month, we will transfer all the remaining funds in your MMDAs at Destination Institutions to the Root Account.
(ii) If you have exceeded the limit of six Program Withdrawals for the ICS savings option in any two previous months and a sixth Program Withdrawal occurs in a month, (A) we will transfer all the remaining funds in your MMDAs at Destination Institutions to the Root Account, and (B) the ICS Custodial Account will be ineligible for Program Deposits for the remainder of the month and for the next six full months. Your eligibility to use the ICS demand option ...
Excess Program Withdrawals. (a) The consequences of exceeding the limit of six Program Withdrawals are as follows:
(i) So long as you have not exceeded the limit of six Program Withdrawals in any two previous months:
(A) you may use all six permitted Program Withdrawals in a month, and
(B) if an excess (seventh) Program Withdrawal occurs before the last Business Day of the month, we will transfer all the remaining funds in your MMDAs at Destination Institutions to the Transaction Account.
(ii) If you have exceeded the limit of six Program Withdrawals in any two previous months and a sixth Program Withdrawal occurs in a month, (A) we will transfer all the remaining funds in your MMDAs at Destination Institutions to the Transaction Account, and (B) the ICS Custodial Account will be ineligible for Program Deposits for the remainder of the month and for the next six full months.
(b) If all the funds in MMDAs for an ICS Custodial Account have been returned to the Transaction Account pursuant to Section 3.5(a), no Program Deposits will occur before the end of the month. If, in addition, the ICS Custodial Account has become ineligible for Program Deposits, no Program Deposits for the ICS Custodial Account will occur during the period of ineligibility.