Key Definition & Documents

Agreement between the issuer and ICD Securities, Inc.

The details of the CD terms agreed to by ICD and your institution. A terms agreement needs to be executed for each DTC CD issued. The agreement will detail the following:

• Amount to be funded.
• Settlement date of the CD.
• The total interest cost to your institution.
• The rate to be paid on the CD. This rate is determined by subtracting the brokerage fee from the total interest cost.
• Maturity Date.
• Interest Payment Frequency: The interest can be paid out monthly, quarterly, or semi-annually. For issues with maturities of 1 year or less, the payment frequency can be set up to be paid at maturity.
• Once the brokerage agreement and terms letter are executed, and the offering becomes firm, your institution must accept the funds.
• Best Efforts Offering. This means that no specific dollar amount is assured to be delivered by ICD. Only the amount sold by ICD will be settled. This type of offering is most commonly used and is the most cost-effective for the issuing bank and can result in savings between 5 to 10 basis points.

A onetime document signed by your institution and forwarded directly to DTC. This document must be executed prior to your first DTC issuance and is a DTC standard agreement. For more information, please visit www.dtcc.com.

The actual negotiable certificate of deposit that your institution will set up on its books. All Certificates issued through the DTC market are set up under “Cede & Co., as nominee of the Depository Trust Corporation.” There is one Master Certificate per each issued CUSIP ID number. The CUSIP ID number is issued by Standard & Poor’s to identify each individual offering.

This document is presented to the beneficiary owner from the selling dealer.

This document is executed between the underwriter and its selling group members.

For more information please feel free to contact your ICD Representative at 1-800-533-9891.