Common use of Guaranteed Term Classifications Clause in Contracts

Guaranteed Term Classifications. The grouping of Terms according to their time to maturity. The following are the Classifications: (1) Short Term: Terms of at least one month up to and including 3 years; or (2) Long Term: Terms of greater than 3 years and up to and including 10 years. During a Deposit Period, we may make available one or more Terms within a Classification. A toll-free telephone number will provide information on current credited interest rates for new Deposit Period terms. The Contract Holder has the option to allocate Net Purchase Payment(s) and transfers into any or all of the available Deposit Period Terms. If no specific direction is given, Net Purchase Payment(s) and transfers will go into available Terms on a pro rata basis within the Classification(s) previously chosen by the Contract Holder. If there are no Terms available in the Long Term Classification previously chosen, such amounts will be allocated to the Term within the Short Term Classification with the longest period. If there are no Terms available in the Short Term Classification previously chosen, such amounts will be allocated to the Term within the Long Term Classification with the shortest period.