Fall Regulatory Summit

Internal Use Only

ICS One-Way Buy

ƒ Funds come from other participating institutions with excess customer funds that they don’t want to keep on balance sheet. ƒ There are no collateralization requirements. ƒ Set up is easy; participating institutions sign a simple, two-page addendum to the existing

Participating Institution Agreement. ƒ The contracted rate is the all-in cost.

ƒ The cost for this funding is tied to an index, such as the Fed Funds Effective Rate, the Fed Funds Target Rate, or the Secured Overnight Financing Rate, over terms ranging from 1 month to multiple years.

BNY Mellon — Custody, Settlement, Recordkeeping

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Internal Use Only

CDARS Early Withdrawal

ƒ Early withdrawals of CDs issued through CDARS are available but may be subject to substantial penalties. ࡳ For a CD with a term of 4 weeks or 13 weeks, the penalty is equivalent to substantially all the interest that would have been earned over the full term and will invade principal. ࡳ For longer maturities, the penalty is equivalent to approximately one-half of the interest that would have been earned over the full term and may invade principal. ࡳ Early withdrawal penalties may not apply when a depositor dies or a bank fails. ƒ Early withdrawals can only occur at the individual CD level. The bank’s customer may withdraw one or all of the CDs issued to it. ƒ Early withdrawals settle on the next business day if entered prior to 2:30 PM ET. ƒ The bank whose customer has requested a withdrawal will receive the funds from the destination institution(s) via BNY Mellon. The proceeds will be less any penalties paid. The bank, if participating in CDARS Reciprocal, will keep the issued deposits on its balance sheet until the maturity date.

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