prop · H30329 · 2015-10-13 00:00:00 — ii.The fund receives at least 50 per cent of its total contributions (other than transfers of assets from other plans described in subparagraphs B(5) through (7) or from retirement and pension accounts described in subparagraph C(17)(a)) from the sponsoring employers; iii.Distributions or withdrawals from the fund are allowed only upon the occurrence of specified events related to retirement, disability, or death (except rollover distributions to other retirement funds described in subparagraphs B(5) through (7) or retirement and pension accounts described in subparagraph C(17)(a)), or penalties apply to distributions or withdrawals made before such specified events; or iv.Contributions (other than certain permitted make-up contributions) by employees to the fund are limited by reference to earned income of the employee or may not exceed ,000 annually, applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation. 6.The term “” means a fund established to provide retirement, disability, or death benefits to beneficiaries that are current or former employees (or persons designated by such employees) of one or more employers in consideration for services rendered, provided that: a)The fund has fewer than 50 participants; b)The fund is sponsored by one or more employers that are not Investment Entities or Passive NFEs; c)The employee and employer contributions to the fund (other than transfers of assets from retirement and pension accounts described in subparagraph C(17)(a)) are limited by reference to earned income and compensation of the employee, respectively; d)Participants that are not residents of the jurisdiction in which the fund is established are not entitled to more than 20 per cent of the fund’s assets; and e)The fund is subject to government regulation and provides information reporting to the tax authorities. 7.The term “of a Governmental Entity, or ” means a fund established by a Governmental Entity, or to provide retirement, disability, or death benefits to beneficiaries or participants that are current or former employees (or persons designated by such employees), or that are not current or former employees, if the benefits provided to such beneficiaries or participants are in consideration of personal services performed for the Governmental Entity, or . 8.The term “Qualified ” means a satisfying the following requirements: a)is a solely because it is an issuer of credit cards that accepts deposits only when a customer makes a payment in excess of a balance due with respect to the card and the overpayment is not immediately returned to the customer; and b)Beginning on or before [xx/xx/xxxx], the implements policies and procedures either to prevent a customer from making an overpayment in excess of ,000, or to ensure that any customer overpayment in excess of ,000 is refunded to the customer within 60 days, in each case applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation. For this purpose, a customer overpayment does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns. 9.The term “Vehicle” means an Investment Entity that is regulated as a collective investment vehicle, provided that all of the interests in the collective investment vehicle are held by or through one or more Entities described in subparagraph B(1), or individuals or Entities that are not Reportable Persons. Entity that is regulated as a collective investment vehicle does not fail to qualify under subparagraph B(9) as an Vehicle, solely because the collective investment vehicle has issued physical shares in bearer form, provided that: a)The collective investment vehicle has not issued, and does not issue, any physical shares in bearer form after [xx/xx/xxxx]; b)The collective investment vehicle retires all such shares upon surrender; c)The collective investment vehicle performs the due diligence procedures set forth in Sections II through VII and reports any information required to be reported with respect to any such shares when such shares are presented for redemption or other payment; and d)The collective investment vehicle has in place policies and procedures to ensure that such shares are redeemed or immobilized as soon as possible, and in any event prior to [xx/xx/xxxx]. 1.The term “Financial Account” means an account maintained by a , and includes a Depository Account, a Custodial Account and: a)in the case of an Investment Entity other than an Investment Entity that is a solely because it manages an Investment Entity described in subparagraph A(6)(b), any equity or debt interest in the ; b)in the case of a not described in subparagraph C(1)(a), any equity or debt interest in the , if the class of interests was established with a purpose of avoiding reporting in accordance with Section I; and c)any and any issued or maintained by a , other than a noninvestment-linked, non-transferable immediate life annuity that is issued to an individual and monetizes a pension or disability benefit provided under an account that is an Excluded Account. The term “Financial Account” does not include any account that is an Excluded Account. 2.The term “Depository Account” includes any commercial, checking, savings, time, or thrift account, or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness, or other similar instrument maintained by a in the ordinary course of a banking or similar business. A Depository Account also includes an amount held by an insurance company pursuant to a guaranteed investment contract or similar agreement to pay or credit interest thereon. 3.The term “Custodial Account” means an account (other than an or ) for the benefit of another person that holds one or more . 4.The term “Equity Interest” means, in the case of a partnership that is a , either a capital or profits interest in the partnership. In the case of a trust that is a , an Equity Interest is considered to be held by any person treated as a settlor or beneficiary of all or a portion of the trust, or any other natural person exercising ultimate effective control over the trust. A Reportable Person will be treated as being a beneficiary of a trust if such Reportable Person has the right to receive directly or indirectly (for example, through a nominee) a mandatory distribution or may receive, directly or indirectly, a discretionary distribution from the trust. 5.The term “” means a contract (other than an ) under which the issuer agrees to pay an amount upon the occurrence of a specified contingency involving mortality, morbidity, accident, liability, or property risk. 6.The term “” means a contract under which the issuer agrees to make payments for a period of time determined in whole or in part by reference to the life expectancy of one or more individuals. The term also includes a contract that is considered to be an in accordance with the law, regulation, or practice of the jurisdiction in which the contract was issued, and under which the issuer agrees to make payments for a term of years. 7.The term “” means an (other than an indemnity reinsurance contract between two insurance companies) that has a Cash Value. 8.The term “Cash Value” means the greater of (i) the amount that the policyholder is entitled to receive upon surrender or termination of the contract (determined without reduction for any surrender charge or policy loan), and (ii) the amount the policyholder can borrow under or with regard to the contract. Notwithstanding the foregoing, the term “Cash Value” does not include an amount payable under an : a)Solely by reason of the death of an individual insured under a life insurance contract including a refund of a previously paid premium provided such refund is a Limited Risk Refund as the term is understood in the Commentary; b)As a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the occurrence of the event insured against; c)Subject to the application of subparagraph C(8)(a), as a refund of a previously paid premium (less cost of insurance charges whether or not actually imposed) under an (other than a life insurance contract or an ) due to cancellation or termination of the contract, decrease in risk exposure during the effective period of the contract, or arising from the correction of a posting or similar error with regard to the premium for the contract; d)As a policyholder dividend (other than a termination dividend) provided that the dividend relates to an under which the only benefits payable are described in subparagraph C(8)(b); or e)As a return of an advance premium or premium deposit for an for which the premium is payable at least annually if the amount of the advance premium or premium deposit does not exceed the next annual premium that will be payable under the contract. 9.The term “Preexisting Account” means a Financial Account maintained by a as of [xx/xx/xxxx]. 10.The term “New Account” means a Financial Account maintained by a opened on or after [xx/xx/xxxx]. 11.The term “Preexisting Individual Account” means a Preexisting Account held by one or more individuals. 12.The term “New Individual Account” means a New Account held by one or more individuals. 13.The term “Preexisting Entity Account” means a Preexisting Account held by one or more Entities. 14.The term “Lower Value Account” means a Preexisting Individual Account with a balance or value as of [xxxx] that does not exceed ,000,000. 15.The term “High Value Account” means a Preexisting Individual Account with a balance or value that exceeds ,000,000 as of [xxxx] or of any subsequent year. 16.The term “New Entity Account” means a New Account held by one or more Entities. 17.The term “Excluded Account” means any of the following accounts: a)A retirement or pension account that satisfies the following requirements: i.The account is subject to regulation as a personal retirement account or is part of a registered or regulated retirement or pension plan for the provision of retirement or pension benefits (including disability or death benefits); ii.The account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); iii.Information reporting is required to the tax authorities with respect to the account; iv.Withdrawals are conditioned on reaching a specified retirement age, disability, or death, or penalties apply to withdrawals made before such specified events; and v.Either (i) annual contributions are limited to ,000 or less, or (ii) there is a maximum lifetime contribution limit to the account of ,000,000 or less, in each case applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation. A Financial Account that otherwise satisfies the requirements of this subparagraph will not fail to satisfy such requirements solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet the requirements of subparagraph C(17)(a) or (b) or from one or more retirement or pension funds that meet the requirements of any of subparagraphs B(5) through (7). b)An account that satisfies the following requirements: i.The account is subject to regulation as an investment vehicle for purposes other than for retirement and is regularly traded on an established securities market, or the account is subject to regulation as a savings vehicle for purposes other than for retirement; ii.The account is tax-favoured (i.e., contributions to the account that would otherwise be subject to tax are deductible or excluded from the gross income of the account holder or taxed at a reduced rate, or taxation of investment income from the account is deferred or taxed at a reduced rate); iii.Withdrawals are conditioned on meeting specific criteria related to the purpose of the investment or savings account (for example, the provision of educational or benefits), or penalties apply to withdrawals made before such criteria are met; and iv.Annual contributions are limited to ,000 or less, applying the rules set forth in paragraph C of Section VII for account aggregation and currency translation. A Financial Account that otherwise satisfies the requirements of this subparagraph will not fail to satisfy such requirements solely because such Financial Account may receive assets or funds transferred from one or more Financial Accounts that meet the requirements of subparagraph C(17)(a) or (b) or from one or more retirement or pension funds that meet the requirements of any of subparagraphs B(5) through (7). c)A life insurance contract with a coverage period that will end before the insured individual attains age 90, provided that the contract satisfies the following requirements: i.Periodic premiums, which do not decrease over time, are payable at least annually during the period the contract is in existence or until the insured attains age 90, whichever is shorter; ii.The contract has no contract value that any person can access (by withdrawal, loan, or otherwise) without terminating the contract; iii.The amount (other than a death benefit) payable upon cancellation or termination of the contract cannot exceed the aggregate premiums paid for the contract, less the sum of mortality, morbidity, and expense charges (whether or not actually imposed) for the period or periods of the contract’s existence and any amounts paid prior to the cancellation or termination of the contract; and iv.The contract is not held by a transferee for value. d)An account that is held solely by an estate if the documentation for such account includes a copy of the deceased’s will or death certificate. e)An account established in connection with any of the following: i.A court order or judgment. ii.A sale, exchange, or lease of real or personal property, provided that the account satisfies the following requirements: (i)The account is funded solely with a down payment, earnest money, deposit in an amount appropriate to secure an obligation directly related to the transaction, or a similar payment, or is funded with a that is deposited in the account in connection with the sale, exchange, or lease of the property; (ii)The account is established and used solely to secure the obligation of the purchaser to pay the purchase price for the property, the seller to pay any contingent liability, or the lessor or lessee to pay for any damages relating to the leased property as agreed under the lease; (iii)The assets of the account, including the income earned thereon, will be paid or otherwise distributed for the benefit of the purchaser, seller, lessor, or lessee (including to satisfy such person’s obligation) when the property is sold, exchanged, or surrendered, or the lease terminates; (iv)The account is not a or similar account established in connection with a sale or exchange of a ; and (v)The account is not associated with an account described in subparagraph C(17)(f). iii.An obligation of a servicing a loan secured by real property to set aside a portion of a payment solely to facilitate the payment of taxes or insurance related to the real property at a later time. iv.An obligation of a solely to facilitate the payment of taxes at a later time. f)A Depository Account that satisfies the following requirements: i.The account exists solely because a customer makes a payment in excess of a balance due with respect to a credit card or other revolving credit facility and the overpayment is not immediately returned to the customer; and ii.Beginning on or before [xx/xx/xxxx], the implements policies and procedures either to prevent a customer from making an overpayment in excess of ,000, or to ensure that any customer overpayment in excess of ,000 is refunded to the customer within 60 days, in each case applying the rules set forth in paragraph C of Section VII for currency translation. For this purpose, a customer overpayment does not refer to credit balances to the extent of disputed charges but does include credit balances resulting from merchandise returns. g)any other account that presents a low risk of being used to evade tax, has substantially similar characteristics to any of the accounts described in subparagraphs C(17)(a) through (f), and is defined in domestic law as an Excluded Account, provided that the status of such account as an Excluded Account does not frustrate the purposes of the Common Reporting Standard. 1.The term “Reportable Account” means an account held by one or more Reportable Persons or by a Passive NFE with one or more Controlling Persons that is a Reportable Person, provided it has been identified as such pursuant to the due diligence procedures described in Sections II through VII. 2.The term “Reportable Person” means a Reportable Jurisdiction Person other than: (i) a corporation the stock of which is regularly traded on one or more established securities markets; (ii) any corporation that is a Related Entity of a corporation described in (i); (iii)a Governmental Entity; (iv) an ; (v) a ; or (vi) a . 3.The term “Reportable Jurisdiction Person” means an individual or Entity that is resident in a Reportable Jurisdiction under the tax laws of such jurisdiction, or an estate of a decedent that was a resident of a Reportable Jurisdiction. For this purpose, an Entity such as a partnership, limited liability partnership or similar legal arrangement that has no for tax purposes shall be treated as resident in the jurisdiction in which its place of effective management is situated. 4.The term “Reportable Jurisdiction” means a jurisdiction (i) with which an agreement is in place pursuant to which there is an obligation in place to provide the information specified in Section I, and (ii) which is identified in a published list. 5.The term “Participating Jurisdiction” means a jurisdiction (i) with which an agreement is in place pursuant to which it will provide the information specified in Section I, and (ii) which is identified in a published list. 6.The term “Controlling Persons” means the natural persons who exercise control over an Entity. In the case of a trust, such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement other than a trust, such term means persons in equivalent or similar positions. The term “Controlling Persons” must be interpreted in a consistent with the Financial Action Task Force Recommendations. 7.The term “NFE” means any Entity that is not a . 8.The term “Passive NFE” means any: (i) NFE that is not an NFE; or (ii) an Investment Entity described in subparagraph A(6)(b) that is not a . 9.The term “NFE” means any NFE that meets any of the following criteria: a)Less than 50 per cent of the NFE’s gross income for the preceding calendar year or other appropriate reporting period is passive income and less than 50 per cent of the assets held by the NFE during the preceding calendar year or other appropriate reporting period are assets that produce or are held for the production of passive income; b)The stock of the NFE is regularly traded on an established securities market or the NFE is a Related Entity of an Entity the stock of which is regularly traded on an established securities market; c)The NFE is a Governmental Entity, an , a , or an Entity owned by one or more of the foregoing; d)Substantially all of the activities of the NFE consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a , except that an NFE does not qualify for this status if the NFE functions (or holds itself out) as an investment fund, such as a private equity fund, venture capital fund, leveraged buyout fund, or any investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes; e)The NFE is not yet operating a business and has no prior operating history, but is investing capital into assets with the intent to operate a business other than that of a , provided that the NFE does not qualify for this exception after the date that is 24 months after the date of the initial organization of the NFE; f)The NFE was not a in the past five years, and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a ; g)The NFE primarily engages in financing and hedging transactions with, or for, Related Entities that are not Financial Institutions, and does not provide financing or hedging services to any Entity that is not a Related Entity, provided that the group of any such Related Entities is primarily engaged in a business other than that of a ; or h)The NFE meets all of the following requirements: i.It is established and operated in its jurisdiction of exclusively for religious, charitable, scientific, artistic, cultural, athletic, or educational purposes; or it is established and operated in its jurisdiction of and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare; ii.It is exempt from income tax in its jurisdiction of ; iii.It has no shareholders or members who have a proprietary or beneficial interest in its income or assets; iv.The applicable laws of the NFE’s jurisdiction of or the NFE’s formation documents do not permit any income or assets of the NFE to be distributed to, or applied for the benefit of, a private person or non-charitable Entity other than pursuant to the conduct of the NFE’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the NFE has purchased; and v.The applicable laws of the NFE’s jurisdiction of or the NFE’s formation documents require that, upon the NFE’s liquidation or dissolution, all of its assets be distributed to a Governmental Entity or other non-profit organization, or escheat to the government of the NFE’s jurisdiction of or any political subdivision thereof. 1.The term “Account Holder” means the person listed or identified as the holder of a Financial Account by the that maintains the account. A person, other than a , holding a Financial Account for the benefit or account of another person as agent, custodian, nominee, signatory, investment advisor, or intermediary, is not treated as holding the account for purposes of this , and such other person is treated as holding the account. In the case of a or an , the Account Holder is any person entitled to access the Cash Value or change the beneficiary of the contract. If no person can access the Cash Value or change the beneficiary, the Account Holder is any person named as the owner in the contract and any person with a vested entitlement to payment under the terms of the contract. Upon the maturity of a or an , each person entitled to receive a payment under the contract is treated as an Account Holder. 2.The term “AML/KYC Procedures” means the customer due diligence procedures of a pursuant to the anti-money laundering or similar requirements to which such is subject.