Common use of Prefunding Clause in Contracts

Prefunding. Employer shall timely provide to HQY all benefit claims pre-funding amounts. Employer acknowledges and agrees that all benefits claim pre-funding amounts submitted by Employer to HQY: (i) shall be comprised of Employer’s general assets (and will be treated as such by HQY); (ii) does not consist of Plan assets or participant/employee contributions, whether made by salary reduction or otherwise, within the meaning of ERISA, without regard to whether ERISA applies, and is not otherwise subject to any restrictions; and (iii) shall not be segregated or set aside in a trust or escrow account by HQY. Employer agrees to pay HQY the entire amount delivered, or deliverable, to participants in all Plans or programs, regardless of whether Employer collects sufficient payroll deductions from Employer’s participants. • If it is determined that the amount of prefunding requested from the Employer is not sufficient, HQY may request additional prefunding. Legal compliance • Employer is responsible for compliance with applicable law with respect to the services provided by HQY under this Schedule, including, without limitation, the review and approval of HQY’s form documents and templates, and HQY’s administration process.