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The Required Participants Fund Deposit for each Participant is recalculated daily.

Settlement of Required Participants Fund Deposits Calculated at the End of a Month

After settlement on the last Business Day of each month, DTC calculates each Participant’s Required Participants Fund Deposit. Each Participant will be notified of its new Required Participants Fund Deposit on the first Business Day of the following month. If a Participant’s Required Participants Fund Deposit, as calculated on the last Business Day of a month, exceeds its Actual Participants Fund Deposit, then the Participant will be notified of the increase, and the amount representing the difference between the Participant’s Required Participants Fund Deposit and Actual Participants Fund Deposit will be systematically charged to the settlement account of the Participant. The amount, once collected through settlement, (a) will be treated as a Deposit by the Participant to the Participants Fund and (b) will be noted on applicable information and/or reports made available to the Participant as a Participants Fund contribution (Activity Code 70-01).

Collection of Required Participants Fund Deposits Calculated on an Intra-month Basis

A Participant is required to Deposit the difference between its Actual Participants Fund Deposit and its Required Participants Fund Deposit calculated on an intra-month basis, i.e., on a Business Day other than the last Business Day of a month, only if the Participant:

(a)  has not been placed on the Watch List (as defined pursuant to Rule 1) and the difference between the Participant’s Required Participants Fund Deposit and a reference amount (the determination of which is described below) (“Reference Amount”) (i) is equal to or exceeds $500,000 and (ii) represents a percentage increase of 25 percent or more over the Reference Amount (“Standard Threshold”), or

(b)  has been placed on the Watch List and the difference between the Participant’s Required Participants Fund Deposit represents a percentage increase of 10 percent or more over the Reference Amount (“Watch List Threshold”).

The Participant shall satisfy any deficit in its Required Participants Fund Deposit that it is required to satisfy pursuant to this subsection, on the same Business Day that the difference is calculated and a report or other notification of the deficit is made available to the Participant.

The Reference Amount equals the Participant’s Required Participants Fund Deposit as previously calculated on the latter of:

(a)  the last Business Day of the prior month;

(b)  the most recent Intra-month Business Day (prior to the then current Business Day), when the amount resulting from daily calculation of the Participant’s Required Participants Fund Deposit met or exceeded either the Standard Threshold or the Watch List Threshold and a deficit collection was effectuated; and

(c)  the most recent intra-month Business Day (prior to the then current Business Day) when DTC effected an adjustment to the Participant’s Required Participants Fund Deposit in accordance with Rule 9(A).

Return of Excess Deposits

At least quarterly, if a Participant’s Actual Participants Fund Deposit is greater than its Required Participants Fund Deposit, DTC will so notify the Participant. The Participant may request, on a monthly basis, the return of any part of its excess deposit. A Participant may maintain an excess deposit (i.e., Voluntary Participants Fund Deposit) that could reduce administration or activity caused by the monthly calculation or intra-month calculation.

This section shall apply only to the calculation and collection of DTC Participants Fund Deposits, as described above, and does not supersede or limit any provisions of the DTC Rules or any rights of DTC in accordance with applicable law and DTC’s Rule and Procedures, including but not limited to with respect to transactions in securities and money payments.

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