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t <br /> EXHIBIT B-COMPENSATION <br /> Compensation shall be provided either in the form of a compensating balance determined by the <br /> formula described below or a direct fee basis. <br /> A. Compensating Balance Calculation <br /> The compensating Balance formula shall be as follows: <br /> r SC ' ADY <br /> x <br /> CB = SEAADM <br /> ) � � <br /> (1—i ) <br /> Where: <br /> CB Compensating Balance <br /> SC Service Charge <br /> EA Earnings Allowance Rate <br /> ADY Actual Days in Year <br /> ADM Actual Days in Month <br /> RR Federal Reserve Bank Reserve Requirement <br /> Services charges will be reconciled against the credit to the City on a monthly basis. If the <br /> charges exceed the credit, the City shall compensate Bank. If the credits exceed the service <br /> charges for the account, the Bank will compensate the City for excess service charge credits. <br /> The charges calculated in this Section shall be the sole compensation to Bank for accounts <br /> services provided. <br /> B. New Service Charge Factors/Prices <br /> New service charge factors and their prices may be added or old factors deleted by <br /> mutual agreement during the term of the agreement. <br /> C. Direct Fee Proposal <br /> In addition to the compensating balance proposals, Bank shall specify direct monthly fees <br /> for the City to consider in lieu of the compensating balance method of compensation. <br /> This fee shall be stated in dollars. Under this method of compensation, interest will be <br /> paid to the City on the basis of ledger balance before float and fees will be deducted from <br /> interest income automatically. <br />