Document:

Exhibit 10.7

  

  Execution Version

  

  

  

  

  

  

  

  
    

  

  

  
    SERIES 2022-7 ACCOUNT CONTROL AGREEMENT

     

    among

     

    VERIZON MASTER TRUST,

      as Grantor

     

    U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,

      as Secured Party

     

    and

     

    U.S. BANK NATIONAL ASSOCIATION,

      as Financial Institution

     

    

    

    Dated as of November 23, 2022

    
      

      

      
        

      

      

      

      

      

      

    

    

    

    
      
        

    

    TABLE OF CONTENTS

    

    

    Page

     

    	
            ARTICLE I

          	
            USAGE AND DEFINITIONS

          	
            1

          
	
            Section 1.1

          	
            Usage and Definitions

          	
            1

          
	
            ARTICLE II

          	
            ESTABLISHMENT OF COLLATERAL ACCOUNTS

          	
            1

          
	
            Section 2.1

          	
            Description of Accounts

          	
            1

          
	
            Section 2.2

          	
            Account Changes

          	
            2

          
	
            Section 2.3

          	
            Account Types

          	
            2

          
	
            Section 2.4

          	
            Securities Accounts

          	
            2

          
	
            Section 2.5

          	
            “Financial Assets” Election

          	
            3

          
	
            ARTICLE III

          	
            SECURED PARTY CONTROL

          	
            3

          
	
            Section 3.1

          	
            Control of Collateral Accounts

          	
            3

          
	
            Section 3.2

          	
            Investment Instructions

          	
            3

          
	
            Section 3.3

          	
            Conflicting Orders or Instructions

          	
            3

          
	
            ARTICLE IV

          	
            SUBORDINATION OF LIEN; WAIVER OF SET-OFF

          	
            4

          
	
            Section 4.1

          	
            Subordination of Lien; Waiver of Set-Off

          	
            4

          
	
            ARTICLE V

          	
            REPRESENTATIONS, WARRANTIES AND COVENANTS

          	
            4

          
	
            Section 5.1

          	
            Financial Institution’s Representations and Warranties

          	
            4

          
	
            Section 5.2

          	
            Financial Institution’s Covenants

          	
            5

          
	
            ARTICLE VI

          	
            OTHER AGREEMENTS

          	
            5

          
	
            Section 6.1

          	
            Reliance by Financial Institution

          	
            5

          
	
            Section 6.2

          	
            Termination

          	
            6

          
	
            Section 6.3

          	
            No Petition

          	
            6

          
	
            Section 6.4

          	
            Limitation of Liability

          	
            6

          
	
            Section 6.5

          	
            Conflict With Other Agreement

          	
            7

          
	
            Section 6.6

          	
            [Reserved]

          	
            7

          
	
            Section 6.7

          	
            Adverse Claims

          	
            7

          
	
            Section 6.8

          	
            Maintenance of Collateral Accounts

          	
            7

          
	
            ARTICLE VII

          	
            MISCELLANEOUS

          	
            8

          
	
            Section 7.1

          	
            Amendment

          	
            8

          
	
            Section 7.2

          	
            Benefit of Agreement

          	
            9

          
	
            Section 7.3

          	
            Notices

          	
            9

          

     

    

    
      
        
          

      

      
      TABLE OF CONTENTS

      (continued)

      Page

       

    

    	
            Section 7.4

          	
            GOVERNING LAW

          	
            9

          
	
            Section 7.5

          	
            Submission to Jurisdiction

          	
            10

          
	
            Section 7.6

          	
            WAIVER OF JURY TRIAL

          	
            10

          
	
            Section 7.7

          	
            No Waiver; Remedies

          	
            10

          
	
            Section 7.8

          	
            Severability

          	
            10

          
	
            Section 7.9

          	
            Headings

          	
            10

          
	
            Section 7.10

          	
            Counterparts

          	
            10

          
	
            Section 7.11

          	
            Electronic Signatures

          	
            10

          

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      -ii-

      
        

    

    This SERIES 2022-7 ACCOUNT CONTROL AGREEMENT, dated as of November 23, 2022 (this “Agreement”), is among VERIZON MASTER TRUST, a Delaware statutory trust, as grantor (the “Grantor”),

      U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association, as Indenture Trustee for the benefit of the Noteholders (in this capacity, the “Secured Party”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
      in its capacity as both a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC (in these capacities, the “Financial Institution”).

     

    BACKGROUND

     

    The Grantor is engaging in a securitization transaction in which it will issue the Notes under the Indenture (as defined below), and the Secured Party will hold funds in bank accounts for
      the benefit of the Noteholders.

     

    The parties are entering into this Agreement to perfect the security interest in the bank accounts.

     

    The parties agree as follows:

     

    ARTICLE I

      USAGE AND DEFINITIONS

     

    Section 1.1  Usage and
          Definitions.  Capitalized terms used but not defined in this Agreement are defined in (or defined by reference in) the Indenture, dated as of November 23, 2022 (the “Indenture”), between Verizon Master Trust, as trust, and U.S. Bank
        Trust Company, National Association, as indenture trustee (the “Indenture Trustee”).  The Indenture also contains by reference, usage rules that apply to this Agreement.  References to the “UCC” mean the Uniform Commercial Code as in
        effect in the State of New York.

     

     For purposes of this Agreement, “Hague Securities Convention” means The Convention on
        the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary (Concluded 5 July 2006), which became effective in the United States of America on April 1, 2017.

     

    ARTICLE II

      ESTABLISHMENT OF COLLATERAL ACCOUNTS

     

    Section 2.1  Description
          of Accounts.  Pursuant to this Agreement and the Indenture, the Grantor, the Servicer and the Financial Institution have established the following accounts, subject to the lien of the Secured Party (each, a “Collateral Account”), each
        of which Collateral Accounts shall be a Trust Financing Account:

     

    	

          	(i)	
             “Series 2022-7 Distribution Account – U.S. Bank Trust Company, National Association, as Note Paying Agent, as secured party for the benefit of the Secured Parties of Verizon Master Trust, Series
              2022-7” with account number 265533000.

          

     

    
      
        

    

    
    	

          	(ii)	
            “Series 2022-7 Reserve Account – U.S. Bank Trust Company, National Association, as Note Paying Agent, as secured party for the benefit of the Secured Parties of Verizon Master Trust, Series 2022-7”
              with account number 265533001.

          

     

    	

          	(iii)	
            “Series 2022-7 Principal Funding Account – U.S. Bank Trust Company, National Association, as Note Paying Agent, as secured party for the benefit of the Secured Parties of Verizon Master Trust, Series
              2022-7” with account number 265533002.

          

     

    Section 2.2  Account
          Changes.  Neither the Financial Institution nor the Grantor will change the name or account number of a Collateral Account without the consent of the Secured Party.  The Financial Institution will promptly notify the Servicer of any changes
        to the name or account number of a Collateral Account.  This Agreement will apply to each successor account to a Collateral Account, which will also be a Collateral Account.

     

    Section 2.3  Account
          Types.  The Grantor, the Financial Institution and the Secured Party hereby confirm and agree that each Collateral Account is either a “securities account” (as defined in Section 8-501 of the UCC) or a “deposit account” (as defined in Section
        9-102(a)(29) of the UCC).  The Grantor, the Financial Institution and the Secured Party acknowledge and agree that each Collateral Account is intended to be a “securities account.”  Notwithstanding such intention, (x) if a Collateral Account
        constitutes a “deposit account” under the UCC, the provisions of this Agreement governing a “deposit account” shall apply to such Collateral Account and (y) as used herein “deposit account” shall mean a Collateral Account to the extent that it is
        determined to be a “deposit account” (within the meaning of Section 9-102(a)(29) of the UCC) and “securities account” shall mean a Collateral Account to the extent that it is determined to be a “securities account” (within the meaning of Section
        8-501 of the UCC).

     

    Section 2.4  Securities
          Accounts.  If a Collateral Account is a securities account, the Financial Institution agrees that:

     

    (a) Financial

          Assets.  All property delivered to the Financial Institution pursuant to the Indenture and the Master Collateral Agreement that is granted to the Indenture Trustee shall be promptly credited to the applicable Collateral Account in accordance
        with the terms of the Indenture and the Master Collateral Agreement;

     

    (b) Registration

          and Indorsement.  All securities or other property underlying any financial assets credited to any securities account (other than cash) shall be registered in the name of the Financial Institution, indorsed to the Financial Institution or in
        blank or credited to another securities account maintained in the name of the Financial Institution, and in no case will any financial asset credited to any securities account be registered in the name of the Grantor or any other person, payable to
        the order of the Grantor or any other person, or specially indorsed to the Grantor or any other person, except to the extent the foregoing have been specially indorsed to the Financial Institution or in blank; and

     

    (c) Exercise
          of Rights.  Each Collateral Account is an account to which financial assets or other property are or may be credited, and the Financial Institution shall, subject to the

     

    
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    terms of this Agreement, treat the Grantor as entitled to exercise the rights that comprise any financial asset or other property credited to such account.

     

    Section 2.5  “Financial Assets” Election.  The Financial Institution hereby agrees that each item of property (whether investment property, financial asset, security, instrument, general intangible or cash) credited to a Collateral Account to
        the extent that it constitutes a securities account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the UCC.

     

    ARTICLE III

      SECURED PARTY CONTROL

     

    Section 3.1  Control of
          Collateral Accounts.

     

    (a) Notwithstanding

        any other provision of this Agreement, if at any time the Financial Institution shall receive any order from the Secured Party directing transfer or redemption of any financial asset relating to a Collateral Account or any instruction originated by
        the Secured Party directing the disposition of funds in a Collateral Account, the Financial Institution shall comply with such entitlement order or instruction without further consent by the Grantor or any other person.  If the Grantor is otherwise
        entitled to issue entitlement orders or instructions and such entitlement orders or instructions conflict with any entitlement order or instruction issued by the Secured Party, the Financial Institution shall follow the entitlement orders or
        instructions issued by the Secured Party and shall incur no liability therewith.

     

    (b) Until the
        Financial Institution receives a Notice of Sole Control pursuant to Section 6.8(a) from the Secured Party, the Financial Institution is authorized to act upon instructions, including entitlement orders, from either the Secured Party or the
        Grantor.  The Secured Party may exercise sole and exclusive control of the Collateral Accounts at any time by delivering to the Financial Institution a Notice of Sole Control as set forth in Section 6.8(a).

     

    Section 3.2  Investment
          Instructions.  If (a) the Financial Institution has not received an order or instruction from the Grantor directing the deposit, withdrawal, transfer or redemption of the cash or other financial assets credited to a Collateral Account (a “Secured

          Party Order”) for the investment of funds in a Collateral Account by 11:00 a.m. New York time (or another time agreed to by the Financial Institution) on the Business Day before a Payment Date or (b) the Financial Institution receives notice
        from the Secured Party that a Potential Default or Event of Default has occurred and is continuing, the Financial Institution will invest and reinvest funds in such Collateral Account according to the last investment instruction received, if any. 
        If no prior investment instructions have been received or if the instructed investments are no longer available or permitted, the Financial Institution will notify the Servicer and request new investment instructions, and the funds will remain
        uninvested until new investment instructions are received.  For the avoidance of doubt, the Financial Institution shall have no investment discretion.

     

    Section 3.3  Conflicting
          Orders or Instructions.  If the Financial Institution receives conflicting orders or instructions from the Secured Party and the Grantor or any other Person, the

     

    
      3

      
        

    

    Financial Institution will follow the orders or instructions of the Secured Party and not the Grantor or such other Person and shall incur no liability in connection therewith.

     

    ARTICLE IV

      SUBORDINATION OF LIEN; WAIVER OF SET-OFF

     

    Section 4.1  Subordination

          of Lien; Waiver of Set-Off.  In the event that the Financial Institution has or subsequently obtains by agreement, by operation of Law or otherwise a security interest in a Collateral Account or any “security entitlement” or other property
        credited thereto, the Financial Institution hereby agrees that such security interest shall be subordinate to the security interest of the Secured Party.  The financial assets, money and other items credited to any Collateral Account will not be
        subject to deduction, set-off, banker’s lien, or any other right in favor of any Person other than the Secured Party (except that the Financial Institution may set off (i) all amounts due to the Financial Institution in respect of customary fees
        and expenses for the routine maintenance and operation of the Collateral Accounts and (ii) the face amount of any checks which have been credited to any such Collateral Account but are subsequently returned unpaid because of uncollected or
        insufficient funds).

     

    ARTICLE V

      REPRESENTATIONS, WARRANTIES AND COVENANTS

     

    Section 5.1  Financial
          Institution’s Representations and Warranties.  The Financial Institution represents and warrants to the Grantor and the Secured Party as follows:

     

    (a) Organization. 

        The Financial Institution is duly organized, validly existing and qualified as a national banking association under the laws of the United States.

     

    (b) Power
          and Authority.  The Financial Institution has the corporate power and authority to execute, deliver and perform its obligations under this Agreement.  The Financial Institution has taken all action necessary to authorize the execution,
        delivery and performance by it of this Agreement.

     

    (c) Enforceability. 

        This Agreement has been duly executed by an authorized officer of the Financial Institution and constitutes the legal, valid and binding obligation of the Financial Institution, enforceable against it in accordance with its terms, except as such
        enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar Laws affecting creditors’ rights generally and, if applicable, the rights of creditors from time to time
        in effect or by general principles of equity.

     

    (d) No
          Agreements with Grantor.  There are no agreements between the Financial Institution and the Grantor or the Servicer governing or relating to a Collateral Account other than this Agreement, the Master Collateral Agreement, the Indenture and
        the other Transaction Documents and other Series Related Documents.

     

    (e) No Other
          Agreements.  The Financial Institution has not entered into, and until the termination of this Agreement will not enter into, an agreement relating to a Collateral Account in which it has agreed to comply with “entitlement orders” (as defined
        in Section 8-102(a)(8) of the UCC) or “instructions” (within the meaning of Section 9-104 of the UCC) of

     

    
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    any Person other than the Secured Party or purporting to limit or condition the obligation of the Financial Institution to comply with entitlement orders or instructions.

     

    (f) No
          Limitations.  The Financial Institution has not entered into an agreement limiting or conditioning the Financial Institution’s obligation to comply with any Secured Party Order.

     

    (g) No Liens. 

        Except for the claims and interest of the Secured Party and of the Grantor in the Collateral Accounts, the Financial Institution has no actual knowledge of any Lien on or claim to, or interest in, any of the Collateral Accounts or in any “financial
        asset” (as defined in Section 8-102(a) of the UCC) or other property credited thereto.

     

    (h) Maintenance

          of Collateral Accounts.  Each Collateral Account has been established as set forth in Article II, and such Collateral Accounts will be maintained in the manner set forth herein until termination of this Agreement.

     

    (i) Maintenance

          of Offices.  The Financial Institution has at the time of this Agreement, and had at the time of entry into the Indenture and the other Transaction Documents and other Series Related Documents executed on or prior to the date of this
        Agreement, one or more offices in the United States that maintains the securities accounts.

     

    Section 5.2  Financial
          Institution’s Covenants.

     

    (a) Statements,

          Confirmations and Other Correspondence.  The Financial Institution will promptly deliver copies of statements, confirmations and correspondence about the Collateral Accounts and the cash or other financial assets credited to a Collateral
        Account to the Grantor and the Secured Party.

     

    (b) Notice
          of Claim.  If a Person asserts a Lien against a Collateral Account (or in the cash or other financial assets credited to a Collateral Account), the Financial Institution will promptly notify the Secured Party.

     

    (c) Negative
          Covenants.  Until the termination of this Agreement, the Financial Institution will not enter into (i) an agreement relating to a Collateral Account in which it agrees to comply with entitlement orders or instructions of any Person other than
        the Secured Party or (ii) an agreement limiting or conditioning the Financial Institution’s obligation to comply with Secured Party Orders.

     

    ARTICLE VI

      OTHER AGREEMENTS

     

    Section 6.1  Reliance by
          Financial Institution.  The Financial Institution is not obligated to investigate or inquire whether the Secured Party may deliver a Secured Party Order.  The Financial Institution may rely on communications (including Secured Party Orders)
        believed by it in good faith to be genuine and given by the proper party.

     

    
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    Section 6.2  Termination.

     

    (a) The
        Financial Institution may terminate its rights and obligations under this Agreement if the Secured Party resigns or is removed as Indenture Trustee under the Indenture.  The Grantor may terminate the rights and obligations of the Financial
        Institution if the Financial Institution ceases to be a Qualified Institution.  No termination of the rights and obligations of the Financial Institution under this Agreement will be effective until new Collateral Accounts are established with, and
        the cash and other financial assets credited to the Collateral Accounts are transferred to, another securities intermediary who has agreed to accept the obligations of the Financial Institution under this Agreement or a similar agreement.

     

    (b) The Secured
        Party agrees to provide a Notice of Termination in substantially the form of Exhibit B hereto to the Financial Institution upon the request of the Grantor on or after the termination of the Secured Party’s security interest in the Collateral
        Accounts pursuant to the terms of the Indenture.  The termination of this Agreement does not terminate any Collateral Account or alter the obligations of the Financial Institution to the Grantor pursuant to any other agreement with respect to any
        Collateral Account.

     

    Section 6.3  No Petition. 

        Each party agrees that, before the date that is two (2) years and one (1) day (or, if longer, any applicable preference period) after payment in full of (a) all securities issued by the Depositor or by a trust for which the Depositor was a
        depositor or (b) all advances owed by Verizon Master Trust, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) the Depositor or (ii) the Grantor, respectively, any bankruptcy, reorganization,
        arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar Law.  This Section 6.3 will survive the termination of this Agreement.

     

    Section 6.4  Limitation
          of Liability.

     

    (a) Financial

          Institution.  The Financial Institution will not be liable under this Agreement, except for (i) its own willful misconduct, bad faith or gross negligence or (ii) breach of its representations, warranties or covenants in this Agreement.  The
        Financial Institution will not be liable for special, indirect, punitive or consequential losses or damages (including lost profit), even if the Financial Institution has been advised of the likelihood of the loss or damage and regardless of the
        form of action.

     

    (b) Secured
          Party.  The Secured Party is executing this Agreement not in its individual capacity but solely in its capacity as Indenture Trustee.  In performing its obligations under this Agreement, the Secured Party is subject to, and entitled to the
        benefits of, the terms of the Indenture that apply to the Indenture Trustee.  The Indenture Trustee will not have any liability for any act or failure to act of the Servicer, the Custodian, the Marketing Agent, any other Creditor Representative or
        Noteholder, the Administrator, the Grantor or any other Person.

     

    (c) Owner
          Trustee.  This Agreement has been signed on behalf of the Grantor by Wilmington Trust, National Association, not in its individual capacity, but solely in its capacity as Owner Trustee of the Grantor.  In no event will Wilmington Trust,
        National Association in its individual capacity or a beneficial owner of the Grantor be liable for the Grantor’s obligations

     

    
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    under this Agreement.  For all purposes under this Agreement, the Owner Trustee is subject to, and entitled to the benefits of, the Trust Agreement.

     

    Section 6.5  Conflict
          With Other Agreement.

     

    (a) In the
        event of any conflict between this Agreement (or any portion thereof) and any other agreement now existing or hereafter entered into, the terms of this Agreement shall prevail.

     

    (b) No
        amendment or modification of this Agreement or waiver of any right hereunder shall be binding on any party hereto unless it is in writing and is signed by all of the parties hereto.

     

    (c) The
        Financial Institution hereby confirms and agrees that:

     

    (i) there are no agreements entered into between the Financial Institution and the Grantor with respect to the Collateral Accounts other than this Agreement and the Indenture; and

     

    (ii) other than the Indenture, it has not entered into, and until the termination of this Agreement will not enter into, any other agreement with any other person relating to any Collateral Account or any financial assets or other property
        credited thereto pursuant to which it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of the UCC) or instructions (within the meaning of Section 9-104 of the UCC) of such other person.

     

    Section 6.6  [Reserved].

     

    Section 6.7  Adverse
          Claims.  If the Financial Institution receives written notice that any person is asserting any lien, encumbrance or Adverse Claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against any
        Collateral Account or any financial asset or other property credited thereto, the Financial Institution will promptly notify the Secured Party and the Grantor thereof.

     

    Section 6.8  Maintenance of Collateral Accounts.  In addition to, and not in lieu of, the obligation of the Financial Institution to honor entitlement orders and instructions as set forth in Section 3.1 hereof, the Financial Institution, the
        Grantor and the Secured Party agree that the Collateral Accounts shall be maintained as follows:

     

    (a) Notice of Sole Control.  If at any time the Secured Party delivers to the Financial Institution a Notice of Sole Control in substantially the form set forth in Exhibit A hereto (a “Notice of Sole Control”), the Financial
        Institution agrees that after receipt of such notice, it will take all instructions with respect to the Collateral Accounts solely from the Secured Party and shall not comply with instructions or entitlement orders of any other person.

     

    (b) Voting Rights.  Until such time as the Financial Institution receives a Notice of Sole Control signed by the Secured Party pursuant to subsection (a) of this

     

    
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    Section 6.8, the Grantor shall direct the Financial Institution with respect to the voting of any financial assets credited to any Collateral Account.

     

    (c) Eligible Account.  Until such time as the Financial Institution receives a Notice of Sole Control signed by the Secured Party, the Grantor shall direct, to the extent permitted by the Indenture, the Financial Institution with
        respect to the selection of investments to be made for the credit of a Collateral Account if it is a securities account, and after the Financial Institution receives a Notice of Sole Control signed by the Secured Party, the Secured Party shall
        direct, to the extent permitted by the Indenture, the Financial Institution with respect to the selection of investments to be made for the credit of a Collateral Account if it is a securities account; provided,
        however, that the Financial Institution shall not honor any instruction from such Person to purchase any investments other than Permitted Investments.

     

    (d) Statements and Confirmations.  The Financial Institution shall promptly send copies of all statements, confirmations and other correspondence concerning any Collateral Account or any financial assets or other property credited
        thereto simultaneously to each of the Grantor and the Secured Party at the address for each set forth in Section 7.3 of this Agreement.

     

    ARTICLE VII

      MISCELLANEOUS

     

    Section 7.1  Amendment.

     

    (a) Amendments

          to Clarify and Correct Errors and Defects.  The parties may amend this Agreement, without the consent of the Noteholders for the purpose of curing any ambiguity, correcting an error or correcting or supplementing any provision of this
        Agreement that may be defective or inconsistent with the other terms of this Agreement.

     

    (b) Other
          Amendments.  Other than as set forth in Section 7.1(c), the parties may also amend this Agreement, without the consent of the Noteholders, for the purpose of adding any provisions to, or changing in any manner or eliminating any provisions
        of, this Agreement or of modifying in any manner the rights of the Noteholders under this Agreement if either (x) the Grantor or the Administrator delivers an Officer’s Certificate to the Indenture Trustee and the Owner Trustee stating that the
        Grantor or the Administrator, as applicable, reasonably believes that such amendment will not have a material adverse effect on the interests of any Noteholder or (y) the Rating Agency Condition has been satisfied for the Notes with respect to such
        amendment.

     

    (c) Amendments

          Requiring Consent of Noteholders.  This Agreement may also be amended from time to time by the parties hereto, with the consent of the Noteholders of the Notes evidencing at least a majority of the outstanding principal amount of the
        Controlling Class of Notes and with prior written notice to the Indenture Trustee and the Rating Agencies, for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Agreement or of
        modifying in any manner the rights of the Noteholders under this Agreement.

     

    
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    It shall not be necessary for the consent of the Noteholders pursuant to this Section 7.1 to approve the particular form of any proposed amendment or consent, but it shall be sufficient if
      such consent shall approve the substance thereof.  For the avoidance of doubt, any Noteholder consenting to any amendment shall be deemed to agree that such amendment does not have a material adverse effect on such Noteholder.

     

    (d) [Reserved].

     

    (e) Indenture

          Trustee Consent.  The consent of the Indenture Trustee will be required for any amendment to this Agreement pursuant to Sections 7.1(b) or (c) that has a material adverse effect on the rights, duties, obligations, immunities or indemnities of
        the Indenture Trustee.

     

    Section 7.2  Benefit of
          Agreement.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  No other Person will have any right or obligation under this Agreement.

     

    Section 7.3  Notices.

     

    (a) Notices
          to Parties.  Notices, requests, directions, consents, waivers or other communications to or from the parties must be in writing and will be considered received by the recipient:

     

    (i) for personally delivered, express or certified mail or courier, when received;

     

    (ii) for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

     

    (iii) for an email, when receipt is confirmed by telephone or reply email from the recipient; and

     

    (iv) for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

     

    (b) Notice
          Addresses.  A notice, request, direction, consent, waiver or other communication must be addressed to the recipient at its address stated in Schedule A to the Transfer and Servicing Agreement, which address the party may change by notifying
        the other parties.

     

    Section 7.4  GOVERNING LAW.  BOTH THIS AGREEMENT AND THE COLLATERAL ACCOUNTS (AS WELL AS THE “SECURITIES ENTITLEMENTS” RELATING THERETO), INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, SHALL BE GOVERNED BY, AND
          CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK, BUT WITHOUT REGARD TO ANY OTHER CONFLICTS OF LAW

     

    
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    PROVISIONS THEREOF).  REGARDLESS OF ANY PROVISION IN ANY OTHER AGREEMENT, FOR PURPOSES OF THE UCC, NEW YORK SHALL BE DEEMED TO BE THE “BANK’S JURISDICTION” (WITHIN THE MEANING OF SECTION
      9-304 OF THE UCC) AND THE “SECURITIES INTERMEDIARY’S JURISDICTION” (WITHIN THE MEANING OF SECTION 8-110 OF THE UCC).  THE LAW OF THE STATE OF NEW YORK SHALL GOVERN ALL ISSUES SPECIFIED IN ARTICLE 2(1) OF THE HAGUE SECURITIES CONVENTION. 
      NOTWITHSTANDING SECTION 7.1 OF THIS AGREEMENT, THE PARTIES WILL NOT AGREE TO ANY AMENDMENT TO THIS AGREEMENT TO CHANGE THE GOVERNING LAW TO ANY LAW OTHER THAN THE LAWS OF THE STATE OF NEW YORK.

     

    Section 7.5  Submission
          to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to
        this Agreement.  Each party irrevocably waives, to the fullest extent permitted by Law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an
        inconvenient forum.

     

    Section 7.6  WAIVER OF JURY TRIAL.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF, OR IN CONNECTION WITH,
          THIS AGREEMENT OR ANY MATTER ARISING THEREUNDER WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

     

    Section 7.7  No Waiver;
          Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power,
        right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under Law.

     

    Section 7.8  Severability. 

        If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

     

    Section 7.9  Headings. 

        The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

     

    Section 7.10  Counterparts. 

        This Agreement may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

     

    Section 7.11  Electronic
          Signatures.  Each party agrees that this Agreement and any other documents to be delivered in connection herewith may be electronically signed, and that any electronic signatures appearing on this Agreement or such other documents are the
        same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

     

    [Remainder of Page Left Blank]

    

    

    
      10

      
        

    

    IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed by its duly authorized officer as of the date and year first above written.

     

    

    

    	 	
            VERIZON MASTER TRUST,

          
	 	
            as Grantor

          
	 	 	 
	 	
            By:  

          	
            WILMINGTON TRUST, NATIONAL

          
	 	 	
            ASSOCIATION, not in its individual

          
	 	 	
            capacity but solely as Owner Trustee of

          
	 	 	
            Verizon Master Trust

          
	 	 	 
	 	 	 
	 	
            By:

          	
             /s/ Beverly D. Capers                                      

          
	 	 	
            Name:  Beverly D. Capers

          
	 	 	
            Title:    Vice President

          
	 	 	 
	 	 	 
	 	
            U.S. BANK TRUST COMPANY, NATIONAL

          
	 	
            ASSOCIATION, not in its individual capacity but

          
	 	
            solely as Secured Party

          
	 	 	 
	 	 	 
	 	
            By:

          	
             /s/ Matthew M. Smith                                     

          
	 	 	
            Name:  Matthew M. Smith

          
	 	 	Title:    Vice President
	 	 	 
	 	 	 
	 	 	 
	 	
            U.S. BANK NATIONAL ASSOCIATION,

          
	 	
            as Financial Institution

          
	 	 	 
	 	 	 
	 	
            By:

          	
            
               /s/ Matthew M. Smith                                     

            

          
	 	 	
            Name:  Matthew M. Smith

          
	 	 	Title:    Vice President

    

    

    

    

    

    

    

    

    
      
        

    

    
    Exhibit A

     

    [Letterhead of U.S. Bank Trust Company, National Association]

     

    [Date]

     

    U.S. Bank National Association, as Financial Institution

    190 South LaSalle Street

    Chicago, Illinois 60603

    Attention: Global Structured Finance/Verizon Master Trust, Series 2022-7

     

    	

          	Re:	
            Notice of Sole Control

          

     

     

    Ladies and Gentlemen:

     

    As referenced in the Series 2022-7 Account Control Agreement dated as of November 23, 2022 (the “Agreement”), among Verizon Master Trust, a Delaware statutory trust, as grantor (the “Grantor”),
      U.S. Bank Trust Company, National Association, a national banking association, as Indenture Trustee for the benefit of the Noteholders (in this capacity, the “Secured Party”), and U.S. Bank National Association, a national banking association,
      in its capacity as both a “securities intermediary” as defined in Section 8-102 of the Uniform Commercial Code (“UCC”) and a “bank” as defined in Section 9-102 of the UCC (in such capacities, the “Financial Institution”), we hereby give
      you notice of our sole control over the Collateral Accounts (as defined in the Agreement) and all financial assets or other property credited thereto.  You are hereby instructed, in your capacity as Financial Institution, not to accept any direction,
      instruction or entitlement order with respect to any Collateral Account or the financial assets or other property credited thereto from any person other than the Secured Party, unless otherwise ordered by a court of competent jurisdiction.

     

    You are instructed to deliver a copy of this notice by electronic mail to the Grantor, c/o Cellco Partnership d/b/a Verizon Wireless, as administrator of the Verizon Master Trust at kee.chan.sin@verizon.com.

     

     

    	 	
            Very truly yours,

          
	 	 	 	 
	 	 	 	 
	 	
            U.S. BANK TRUST COMPANY, NATIONAL

          
	 	 	
            ASSOCIATION, not in its individual

          
	 	 	
            capacity, but solely as Secured Party

          
	 	 	 	 
	 	 	 	 
	 	
            By:  

          	
                                                                                       

          
	 	 	
            Name:  

          	 
	 	 	
            Title:

          	 

    

    

    

    

    
      A-1

      
        

    

    
    Exhibit B

     

    [Letterhead of U.S. Bank Trust Company, National Association]

     

    [Date]

     

    U.S. Bank National Association, as Financial Institution

    190 South LaSalle Street

    Chicago, Illinois 60603

    Attention: Global Structured Finance/Verizon Master Trust, Series 2022-7

    

    

     

    	

          	Re:	
            Termination of Series 2022-7 Account Control Agreement

          

     

    You are hereby notified that the Series 2022-7 Account Control Agreement dated as of November 23, 2022 (the “Agreement”), among Verizon Master Trust, a Delaware statutory trust, as grantor (the “Grantor”),

      U.S. Bank Trust Company, National Association, a national banking association, as Indenture Trustee for the benefit of the Noteholders (in this capacity, the “Secured Party”), and U.S. Bank National Association, a national banking association,
      in its capacity as both a “securities intermediary” as defined in Section 8-102 of the Uniform Commercial Code (“UCC”) and a “bank” as defined in Section 9-102 of the UCC (in such capacities, the “Financial Institution”) is terminated
      and you have no further obligations to the undersigned pursuant to the Agreement.  Notwithstanding any previous instructions to you, you are hereby instructed, as Financial Institution, to accept all future directions with respect to the Collateral
      Accounts from the Grantor.  This notice terminates any obligations you may have to the undersigned with respect to the Agreement; however, nothing contained in this notice shall alter any obligations which you may otherwise owe to U.S. Bank Trust
      Company, National Association pursuant to any other agreement.

     

    You are instructed to deliver a copy of this notice by electronic mail to the Grantor, c/o Cellco Partnership d/b/a Verizon Wireless, as administrator of the Verizon Master Trust at kee.chan.sin@verizon.com.

     

    

    

    	 	
            Very truly yours,

          
	 	 	 	 
	 	 	 	 
	 	
            U.S. BANK TRUST COMPANY, NATIONAL

          
	 	 	
            ASSOCIATION, not in its individual

          
	 	 	
            capacity, but solely as Secured Party

          
	 	 	 	 
	 	 	 	 
	 	
            By:  

          	
                                                                                       

          
	 	 	
            Name:  

          	 
	 	 	
            Title:

          	 

    

    

     

    

    

  

  B-1fhlbny_ex101.htm

EXHIBIT 10.1
  
 THE FEDERAL HOME LOAN BANK
  
 OF NEW YORK
  
 AMENDED AND RESTATED
  
 SUPPLEMENTAL EXECUTIVE RETIREMENT DEFINED BENEFIT & DEFINED
  
 CONTRIBUTION BENEFIT EQUALIZATION PLAN
  
 As Amended and Restated
  
 Effective January 1, 2023
  
 	 
	1
	

	 

  
 Table of Contents
  
 	 Introduction 
	  
	 Page 1
	
	 Article
	  
	  
	  

	  
	  
	  
	  
	  
	  

	  
	 1.
	 Definitions
	  
	 Page 2
	  

	  
	  
	  
	  
	  
	  

	  
	 2.
	 Membership
	  
	 Page 5
	  

	  
	  
	  
	  
	  
	  

	  
	 3.
	 Amount and Payment of Defined Benefit Plan Component
	  
	 Page 6
	  

	  
	  
	  
	  
	  
	  

	  
	 4.
	 Amount and Payment of Defined Contribution Plan Component
	  
	 Page 9
	  

	  
	  
	  
	  
	  
	  

	  
	 5.
	 Source and Methods of Payments
	  
	 Page 13
	  

	  
	  
	  
	  
	  
	  

	  
	 6.
	 Designation of Beneficiaries
	  
	 Page 14
	  

	  
	  
	  
	  
	  
	  

	  
	 7.
	 Administration
	  
	 Page 15
	  

	  
	  
	  
	  
	  
	  

	  
	 8.
	 Amendment and Termination
	  
	 Page 17
	  

	  
	  
	  
	  
	  
	  

	  
	 9.
	 General Provisions
	  
	 Page 19
	  

	  
	  
	  
	  
	  
	  

	 Signatures
	  
	 Page 20
	  

	  
	  
	  
	  
	  
	  

	 Schedule A
	  
	 Page 21
	
	 Schedule B
	  
	 Page 22
	

  
 	 
	2
	

	 

  
 SUPPLEMENTAL EXECUTIVE RETIREMENT DEFINED BENEFIT & DEFINED
 CONTRIBUTION BENEFIT EQUALIZATION PLAN
  
 Introduction
  
 The purpose of this Supplemental Executive Retirement Defined Benefit & Defined Contribution Benefit Equalization Plan (as more fully defined in Article 1, the “Plan”) is to provide to certain employees of the Federal Home Loan Bank of New York (as more fully defined in Article 1, the “Bank”) the benefits which would have been payable under the Pentegra Defined Benefit Plan for Financial Institutions’ Comprehensive Retirement Program (as more fully defined in Article 1, the “Defined Benefit Plan”), and benefits equivalent to the matching contributions, regular account contributions (after‐tax) and 401(k) account contributions (pre-tax) which would have been available under the Pentegra Defined Contribution Plan for Financial Institutions (as more fully defined in Article 1, the “Defined Contribution Plan”), but for the limitations placed on benefits and contributions for such employees by Sections 401(a)(17), 401(k)(3)(A)(ii), 401(m), 402(g) and 415 of the Internal Revenue Code of 1986, as amended. The Plan, as further described below, also enhances benefits for certain employees.
  
 The Plan is unfunded and all benefits payable under this Plan shall be paid solely out of the general assets of the Bank. No benefits under this Plan shall be payable by the Defined Benefit Plan or its assets or by the Defined Contribution Plan or its assets.
  
 	 
	1
	

	 

  
 Article 1. Definitions
  
 When used in the Plan, the following terms shall have the following meanings:
  
 1.01 "Actuary" means the independent consulting actuary retained by the Bank to assist the Committee (as that term is defined in this Article) in its administration of the Plan.
  
 1.02 "Bank" means the Federal Home Loan Bank of New York and each subsidiary or affiliated company thereof which participates in the Plan and their respective legal successors.
  
 1.03 "Beneficiary" means the beneficiary or beneficiaries designated in accordance with Article 5 of the Plan to receive the benefit, if any, payable upon the death of a Member (as that term is defined in this Article) of the Plan.
  
 1.04 "Board of Directors" means the Board of Directors of the Bank.
  
 1.05 "Committee" means the Nonqualified Plan Committee appointed by the Board of Directors.
  
 1.06 "Defined Benefit Plan" means the Pentegra Defined Benefit Plan for Financial Institutions’ Comprehensive Retirement Program, a qualified and tax‐exempt defined benefit pension plan and trust under IRC Sections 401(a) and 501(a), as adopted by the Bank.
  
 1.07 "Defined Benefit Plan Component" means and refers to the provisions of Article 3, which is and shall be deemed to be a separate nonqualified plan within the Federal Home Loan Bank of New York Supplemental Executive Retirement Defined Benefit & Defined Contribution Benefit Equalization Plan.
  
 1.08 "Defined Contribution Plan" means the Pentegra Defined Contribution Plan for Financial Institutions, a qualified and tax‐exempt defined contribution plan and trust under IRC Sections 401(a) and 501(a), as adopted by the Bank.
  
 	 
	2
	

	 

  
 1.09 "Defined Contribution Plan Component" means and refers to the provisions of Article 4, which is and shall be deemed to be a separate nonqualified plan within the Federal Home Loan Bank of New York Supplemental Executive Retirement Defined Benefit & Defined Contribution Benefit Equalization Plan.
  
 1.10 "IRC" means the Internal Revenue Code of 1986, as amended from time to time, or any successor thereto.
  
 1.11 "IRC Limitations" mean the cap on compensation taken into account by a plan under IRC Section 401(a)(17), the limitations on 401(k) contributions necessary to meet the average deferral percentage ("ADP") test under IRC Section 401(k)(3)(A)(ii), the limitations on employee and matching contributions necessary to meet the average contribution percentage ("ACP") test under IRC Section 401(m), the dollar limitations on elective deferrals under IRC Section 402(g), and the overall limitations on contributions and benefits imposed on qualified plans by IRC Section 415, as such provisions may be amended from time to time, and any similar successor provisions of federal tax law.
  
 1.12 "Member" means any person included in the membership of the Plan as provided in Article 2.
  
 1.13 "Plan" means The Federal Home Loan Bank of New York Supplemental Executive Retirement Defined Benefit & Defined Contribution Benefit Equalization Plan, as set forth herein and as amended from time to time.
  
 1.14 “Plan Administrator” shall be the Director of Human Resources of the Bank or a designee.
  
 	 
	3
	

	 

  
 1.15 "Retirement" means and refers to the Separation from Service of a Member under circumstances entitling the Member to a benefit from and under the terms of the Defined Benefit Plan.
  
 1.16 "Separation from Service" has the meaning set forth in Section 1.409A-1(h) of the Regulations promulgated under IRC Section 409A as may be amended from time to time.
  
 1.17 “Unforeseeable Emergency” has the meaning set forth in Section 1.409A-3(i)(3)(i) of the Regulations promulgated under IRC Section 409A or as amended. Under current regulations, an Unforeseeable Emergency means a severe financial hardship of the Member resulting from an illness or accident of the Member, the Member’s spouse, the Member’s beneficiary, or the Member’s dependent (as defined in Code Section 152(a), without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B)); loss of the Member’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance); imminent foreclosure of or eviction from the Member’s primary residence; the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication; the need to pay for the funeral expenses of a spouse or a dependent (as defined in Code Section 152(a)) or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Member.
  
 	 
	4
	

	 

  
 Article 2. Membership
  
 2.01 Each employee of the Bank who is included in the membership of the Defined Benefit Plan shall become a Member of the Defined Benefit Plan Component of the Plan on the later of (i) the date on which the Committee shall determine, in its sole and absolute discretion, that the employee is eligible to participate in the Defined Benefit Plan Component who is ratified beginning on or after January 1, 2023, is an officer at the rank of First Vice President or higher and received compensation in excess of the IRC Limitations as defined in Section 1.11 of the Plan in three (3) calendar years in a period of five (5) consecutive calendar years and (ii) the earliest date on which a benefit under the Defined Benefit Plan is limited by IRC Section 401(a)(17) or 415. (The foregoing shall not be construed to affect the current membership of any existing participants already determined to be a Member in the Defined Benefit Plan Component of the Plan.) If, on the date that payment of a Member's benefit from the Defined Benefit Plan commences, the Member is not entitled to receive a benefit under Article 3.01 of the Plan, the Member’s membership in the Defined Benefit Component of the Plan shall terminate on such date.
  
 2.02 Each employee of the Bank who is included in the membership of the Defined Contribution Plan shall become a Member of the Defined Contribution Plan Component of the Plan on the later of (i) the date on which the Committee shall determine, in its sole and absolute discretion, that the employee is eligible to participate in the Plan who is an officer at the rank of Vice President or higher and received compensation in excess of the IRC Limitations as defined in Section 1.07 of the Plan and (ii) the earliest date on which the Member is credited with an elective contribution addition under Section 4.01 of the Plan.
  
 2.03 Notwithstanding any other provision of this Plan to the contrary, the Committee, in its sole and absolute discretion, shall exclude from membership and participation in the Plan any employee (i) who is not one of a select group of management and highly compensated employees as the Committee shall fix and determine, or (ii) for any other reason as may be determined by the Committee.
  
 	 
	5
	

	 

  
 Article 3. Amount and Payment of Defined Benefit Plan Component
  
 3.01 The amount, if any, of the lump sum or annual benefit payable to or on account of a Member pursuant to the Defined Benefit Plan Component of the Plan shall equal (i) minus (ii), but not less than zero, as determined by the Committee, where:
  
 (i) is defined as the annual benefit (as calculated by the Defined Benefit Plan on the basis of the form of payment elected under the Defined Benefit Plan by the Member) that would otherwise be payable to or on account of the Member by the Defined Benefit Plan under the Defined Benefit Plan if the provisions of the Defined Benefit Plan were administered (A) without regard to the limitations imposed by Sections 401(a)(17) and 415 of the IRC and regardless of whether employment commenced on or after July 1, 2014 and (B) as if (x) the applicable annual salary rate did not exclude overtime and incentive compensation payments; and (y) the applicable benefit multiplier used to calculate a Member’s total pension benefit was 2%, provided that: (1) for the person who served as the Bank’s President and CEO on January 1, 2019, the applicable benefit multiplier was 2.5%, and (2) for those persons identified in Schedule B attached hereto, such persons will no longer accrue additional benefits under the Defined Benefit Plan; however, such benefits will be restored by the Defined Benefit Component of this Plan with the applicable benefit multiplier of 2.5% ; and
  
 (ii) is defined as the annual benefit (as calculated by the Defined Benefit Plan on the basis of the form of payment elected under the Defined Benefit Plan by the Member) that is payable to or on account of the Member by the Defined Benefit Plan under the Defined Benefit Plan after giving effect to any reduction of such benefit required by the limitations imposed by Sections 401(a)(17) and 415 of the IRC and otherwise determined in accordance with the terms of the Defined Benefit Plan as it may be amended from time to time.
  
 For purposes of this Section 3.01, for the person who served as the Bank’s President and CEO on January 1, 2019, the total pension benefit shall be calculated using that person’s highest consecutive three-year average earnings. Further, the normal form of payment option for this person will include a life annuity with a lump sum retirement death benefit which is 12 times the annual retirement allowance less the sum of such allowance payments made before death. Also, the cumulative incremental cost of living adjustment for this person shall be 1% of the retirement allowance at the end of the calendar year in which age 66 is reached.
  
 	 
	6
	

	 

  
 In addition, for purposes of this Section 3.01, "annual benefit" includes any benefits the Bank has elected to provide its employees under the Defined Benefit Plan and shall be in the form of a life annuity within the meaning of Section 1.409A-2(b)(2)(ii) of the Regulations promulgated under IRC Section 409A. The Defined Benefit Plan in effect upon the date of hire, as amended, establishes the qualified retirement benefit for each employee.
  
 3.02 The available form of payment under the Defined Benefit Component of this Plan shall be in a single lump sum payment or an annual benefit. Unless the Member elects an optional form of payment under this Article 3 pursuant to Section 3.03 of the Plan, the annual benefit, if any, payable to or on account of a Member under Section 3.01 of the Plan shall be converted by the Actuary and shall be payable to or on account of the Member in the "Regular Form" of payment, utilizing for that purpose the same actuarial factors and assumptions then used by the Defined Benefit Plan to determine actuarial equivalence under the Defined Benefit Plan. For purposes of the Plan, the "Regular Form" of payment means an annual benefit payable for the Member's lifetime and the death benefit described in Section 3.04 of the Plan.
  
 3.03 (a) A Member may, with prior written consent of the Plan Administrator and if made within sixty (60) days before a voluntary separation of service, request that the Defined Benefit Component be paid in the form of a single lump sum payment. This request if made shall be irrevocable. The lump sum benefit shall be paid within ninety (90) days following the Member’s separation of service, except that no benefits shall be paid prior to the date such benefit can be definitely determined by the Plan Administrator. A Member may, with the prior written consent of the Plan Administrator, elect in writing prior to the making of any annuity payment under this Article 3 to have the annual benefit, if any, payable to or on account of a Member under Section 3.02 of the Plan converted by the Actuary to any optional form of payment then permitted under the Defined Benefit Plan that is a life annuity within the meaning of Section 1.409A-2(b)(2)(ii) of the Regulations promulgated under IRC Section 409A other than the "Regular Form" of payment and that is actuarially equivalent to the “Regular Form” of payment. The Actuary shall utilize for the purpose of that conversion the same actuarial factors and assumptions then used by the Defined Benefit Plan to determine actuarial equivalence under the Defined Benefit Plan.
  
 	 
	7
	

	 

  
 (b) If a Member who had elected an optional form of payment under this Section 3.03 dies after the date benefit payments under the Plan had commenced, the only death benefit, if any, payable under the Plan in respect of said Member shall be the amount, if any, payable under the optional form of payment which the Member had elected under the Plan. If a Member who had elected an optional form of payment under this Section 3.03 dies before the date benefit payments under the Plan commence, the Member’s election of an optional form of benefit shall be inoperative.
  
 (c) An election of an optional form of payment under this Section 3.03 may be made only on a form prescribed by the Plan Administrator and filed by the Member with the Plan Administrator prior to the commencement of payment of the Member’s benefit under Section 3.02 of the Plan.
  
 3.04 Upon the death of a Member who had not elected the single lump sum payment or the optional form of payment under Section 3.03 of the Plan, a death benefit shall be paid to the Member's beneficiary in a lump sum equal to the excess, if any, of (i) over (ii), where:
  
 (i) is an amount equal to twelve (12) times the annual benefit, if any, payable under Section 3.02 of the Plan; and
  
 (ii) is the sum of the benefit payments, if any, which the Member had received under this Article 3.
  
 3.05 If a Member to whom a single lump sum or annual benefit is payable under this Article 3 dies before commencement of the payment of the Member’s benefit, the death benefit payable under Section 3.02 of the Plan shall be payable to the Member's beneficiary as if the payment of the Member's benefit had commenced on the first day of the month in which the Member’s death occurred.
  
  
 	 
	8
	

	 

  
 3.06 The annual benefit, if any, payable to or on account of a Member under this Article 3 shall commence to be paid no earlier than (i) the Member's Separation from Service, (ii) the date the Member becomes disabled, within the meaning of IRC Section 409A(a)(2)(c), or (iii) the Member's death, and the time or schedule of payments shall not be accelerated except as provided in Regulations promulgated pursuant to IRC Section 409A, nor shall any payment of benefits be deferred to a date other than the date fixed for such payment. Such annual benefit shall be paid in monthly installments commencing on the first day of the month next following the Member's Separation from Service constituting the Member's Retirement under the Defined Benefit Plan, except that no benefits shall be paid prior to the date such annual benefit can be definitely determined by the Plan Administrator. Nothing in this Plan shall be deemed to make the payment of benefits to a Member under this Article 3 dependent upon the commencement of the payment of benefits to the Member under the Defined Benefit Plan.
  
 Article 4. Amount and Payment of Defined Contribution Plan Component
  
 4.01 For each calendar year, if the Member's 401(k) account contributions and/or regular account contributions under the Defined Contribution Plan for such year have reached the maximum permitted by the IRC Limitations as determined by the Plan Administrator, and if the Member's compensation for that calendar year is expected to exceed the dollar limitation set forth in IRC Section 401(a)(17) (as indexed), and if the Member elects to reduce compensation for such calendar year by delivering to the Plan Administrator, prior to the commencement of such calendar year, a written election on such form as the Plan Administrator may designate, which election shall become irrevocable on the last day of the calendar year preceding such calendar year, then such Member shall be credited with an elective contribution addition under the Defined Contribution Plan Component equal to the reduction in the Member’s compensation made in accordance with such election; provided, however, that the sum of all such elective contribution additions for a Member with respect to any single calendar year made under this Section 4.01 shall not be greater than the excess of (i) over (ii), where:
  
 (i) is an amount equal to 19% of the Member’s compensation (as defined by the Defined Contribution Plan if its provisions were administered without regard to the IRC Limitations); and
  
 (ii) is an amount equal to the maximum amount of regular account, 401(k) account and additional elective deferral (as defined in IRC Section 125 or 414(v)) contributions the Member could make under the Defined Contribution Plan for the calendar year after giving effect to any limitation or reduction on elective contributions required by the IRC Limitations.
  
 If the reduction in a Member's compensation under such election under this Section 4.01 is determined to exceed the maximum allowable elective contribution additions for such calendar year, such excess and any related earnings credited under Section 4.03 of the Plan shall be paid to such Member within the first two and one‐half months of the succeeding calendar year.
  
 4.02 [Intentionally Omitted]
  
 	 
	9
	

	 

  
 4.03 For each elective contribution addition credited to a Member under Section 4.01 of the Plan, such Member shall also be credited with a matching contribution addition under this Article 4 equal to the matching contribution, if any, that would be credited under the Defined Contribution Plan with respect to such amount if contributed to the Defined Contribution Plan, determined as if the provisions of the Defined Contribution Plan were administered without regard to the IRC Limitations and determined after taking into account the Member's actual regular and 401(k) contributions to and actual matching contributions under the Defined Contribution Plan.
  
 For those Members identified on Schedule A attached hereto, effective beginning with the Defined Contribution Plan Component calendar year 2020, the Bank will provide for each Member’s elective contribution a matching contribution of up to 9% of such Member’s compensation. Such Members will be eligible to make deferrals for the Defined Contribution Plan Component calendar year on or before the last day of the preceding calendar year as provided for in Section 4.01.
  
 4.04 The Plan Administrator shall maintain a Defined Contribution Plan Component account within the financial records of the Bank for each Member who is a Member by reason of amounts credited under Section 4.01 of the Plan. The elective contribution additions, and matching contribution additions of a Member under Sections 4.01 and 4.03 of the Plan shall be credited to the Member’s Defined Contribution Plan Component account as soon as practicable after the date that the compensation reduced under Section 4.01 of the Plan would otherwise have been paid to such Member. In addition, the Defined Contribution Plan Component account of a Member shall be credited or debited from time to time with an investment return at a rate substantially equivalent to the net rate of return based on the Member’s account investment choices as offered by the Plan servicer administering the Plan on behalf of the Bank.
  
 	 
	10
	

	 

  
 4.05 The balance credited to a Member’s Defined Contribution Plan Component account shall be paid to the Member in a lump sum payment on the date that is the first business day after the 60th day following the Member’s Separation from Service with the Bank, or at such other date or dates that begins within ten (10) years of Separation from Service and in such form as the Member shall have elected in writing to the Bank on or before December 31, 2016, or, in the case of a Member who shall first elect to reduce compensation pursuant to Section 4.01 of the Plan subsequent to December 31, 2016, at the time the Member first so elects to reduce compensation, subject to the provisions of Section 4.07 of the Plan.
  
 If no election is made or if the election is not timely or properly made, distribution will be made in the form of a single lump sum payment. An election as to the manner of payment may not be changed after the payment has been made or payments have commenced. Prior to that time, a Member may change an election by filing a new election form with the Plan Administrator; provided, however, that: (i) the new election will not take effect until at least 12 months after the date the new election is filed; (ii) the single lump sum payment or the commencement of installment payments with respect to which such election is made must be deferred for a period of not less than five years from the date such payment would otherwise have been made; and (iii) the new election is filed at least 12 months prior to the date of the first scheduled payment under the Plan.
  
 If installment distributions are elected, the initial installment amount will be the account balance otherwise payable in a single sum multiplied by a fraction, the numerator of which is one and the denominator of which is the total number of installment payments. Subsequent installments will also be a fraction of the unpaid account balance, the numerator of which is always one but the denominator of which is the denominator used in calculating the previous installment minus one. For example, if five installment payments are elected, the initial installment will be one-fifth of the single sum account balance, the second will be one-fourth the remaining account balance, the third installment will be one-third the remaining account balance, and so on. The account will continue to earn benefits based on the investment choices of the Member.
  
 	 
	11
	

	 

  
 If the Member’s account balance upon eligibility for election disbursements is less than $10,000, then the entire amount will be paid in a single lump sum payment regardless of the Member’s payment election.
  
 4.06 If a Member dies or becomes disabled (within the meaning of IRC Section 409A(a)(2)(c)) prior to receiving the balance credited to the Member’s Defined Contribution Plan Component account under Section 4.05 of the Plan, the balance in the Member’s Defined Contribution Plan Component account at the time of the Member’s death shall be paid, in the event of death, to the Member’s designated Beneficiary or, in the event of the Member’s disability, to him, in a lump sum payment as soon as reasonably practicable after death or disability, as applicable.
  
 4.07 Subject to Section 4.08, the benefit under this Article 4 shall be paid at the time or times and in the form in which such benefit is payable pursuant to Section 4.05 of the Plan and shall commence to be paid no earlier than (i) the Member's Separation from Service, (ii) the date the Member becomes disabled, within the meaning of IRC Section 409A(a)(2)(c), or (iii) the Member's death, and the time or schedule of payments provided in Section 4.05 of the Plan shall not be accelerated except as provided in Regulations promulgated pursuant to IRC Section 409A, nor shall any payment of benefits be deferred to a date other than the date fixed for such payment.
  
 4.08 Upon a finding that the Member has suffered an Unforeseeable Emergency, subject to compliance with IRC Section 409A the Plan Administrator may, at the request of the Member, accelerate distribution of benefits or approve reduction or cessation of current deferrals under Section 4.01 in the amount reasonably necessary to alleviate such Unforeseeable Emergency, subject to the following conditions: (i) the request to take this type of distribution shall be made by filing a form provided by and filed with the Plan Administrator prior to the end of any calendar month; (ii) the amount distributed pursuant to this Section 4.08 with respect to an Unforeseeable Emergency shall not exceed the amount necessary to satisfy such financial emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise, by liquidation of the Member's assets (to the extent the liquidation of such assets would not itself cause severe financial hardship), or by cessation of deferrals under Section 4.01; and (iii) the amount determined by the Plan Administrator as the distribution shall be paid in a lump sum as soon as practicable after the end of the calendar month in which this special distribution election is made and approved by the Plan Administrator.
  
 	 
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 Article 5. Source and Method of Payments
  
 All payments of benefits under the Plan, whether arising under Article 3 with respect to the Defined Benefit Plan Component of the Plan or under Article 4 with respect to the Defined Contribution Plan Component of the Plan, shall be paid from, and shall only be a general claim upon, the general assets of the Bank, notwithstanding that the Bank, in its discretion, may establish a bookkeeping reserve or a grantor trust (as such term is used in IRC Sections 611 through 677) to reflect or to aid it in meeting its obligations under the Plan with respect to any Member or prospective Member or beneficiary; provided, that no contributions to such a grantor trust shall be made by the Bank during any “restricted period” as such term is defined in IRC Section 409(A)(b)(3)(B). No benefit whatever provided by the Plan shall be payable from the assets of the Defined Benefit Plan or the Defined Contribution Plan. No Member shall have any right, title or interest whatever in or to any investments which the Bank may make or any specific assets which the Bank may reserve to aid it in meeting its obligations under the Plan. A Member will be fully “vested” in the Defined Contribution Plan Component account balance at all times.
  
 	 
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 Article 6. Designation of Beneficiaries
  
 6.01 Each Member of the Plan may file with the Plan Administrator a written designation of one or more persons as the beneficiary who shall be entitled to receive the amount, if any, payable under the Plan upon the Member’s death. A Member may, from time to time, revoke or change the Member’s beneficiary designation without the consent of any prior beneficiary by filing a new designation with the Plan Administrator. The last such designation received by the Plan Administrator shall be controlling; provided, however, that no designation, or change or revocation thereof, shall be effective unless received by the Plan Administrator prior to the Member's death, and in no event shall it be effective as of a date prior to such receipt.
  
 6.02 If no such beneficiary designation is in effect at the time of a Member's death, or if no designated beneficiary survives the Member, or if, in the opinion of the Plan Administrator, such designation conflicts with applicable law, the Member's estate shall be deemed to have been designated as the Member’s beneficiary and shall be paid the amount, if any, payable under the Plan upon the Member's death. If the Plan Administrator is in doubt as to the right of any person to receive such amount, the Bank may retain such amount, without liability for any interest thereon, until the rights thereto are determined, or the Bank may pay such amount into any court of appropriate jurisdiction and such payment shall be a complete discharge of the liability of the Plan and the Bank therefor.
  
 	 
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 Article 7. Administration
  
 7.01 The Board of Directors has delegated to the Plan Administrator, subject to those powers which the Board has reserved as described in Article 8 of the Plan, general authority over and responsibility for the administration and interpretation of the Plan. The Plan Administrator shall have full power and authority to interpret and construe the Plan, and to make all determinations considered necessary or advisable for the administration of the Plan and any trust referred to in Article 5 of the Plan, and the calculation of the amount of benefits payable thereunder, and to review claims for benefits under the Plan. The Plan Administrator's interpretations and constructions of the Plan and its decisions or actions thereunder shall be binding and conclusive on all persons for all purposes. However, a Member may in writing appeal a decision of the Plan Administrator to the Committee as provided for in Section 7.03. Should the Plan Administrator determine that he or she may personally and uniquely benefit from a decision that is made regarding the Plan, such decision shall be made by the designee.
  
 7.02 If the Plan Administrator deems it advisable, it shall arrange for the engagement of a Plan servicer and advisors for investment plan options from which the Members choose, an Actuary, legal counsel and certified public accountants (who may be counsel to or accountants for the Bank), and other consultants, and make use of agents and clerical or other resources, for purposes of operating the Plan and retaining the Plan records concerning accounts, Member elections and beneficiary selections. The Plan Administrator may rely upon the written opinions of such Plan servicer and advisors, Actuary, counsel, accountants and consultants, and upon any information supplied by the Defined Benefit Plan for purposes of Article 3 of the Plan, and delegate to any agent its authority to perform any act hereunder, including, without limitation, those matters involving the exercise of discretion; provided, however, that such delegation shall be subject to revocation at any time at the discretion of the Plan Administrator. The Plan Administrator shall report to the Board of Directors, or to a committee designated by the Board, at such intervals as shall be specified by the Board or such designated committee, with regard to the matters for which it is responsible under the Plan.
  
 	 
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 7.03 All claims for benefits under the Plan shall be submitted in writing to the Plan Administrator. Written notice of the decision on each such claim shall be furnished with reasonable promptness to the Member or the Member’s beneficiary (the "claimant"). The claimant may request a review by the Committee of any decision denying the claim in whole or in part. Such request shall be made in writing and filed with the Committee within 30 days of such denial. A request for review shall contain all additional information which the claimant wishes the Committee to consider. Written notice of the decision on review shall be furnished to the claimant not later than 90 days following the Committee’s receipt of the request for review. The Committee may hold any hearing or conduct any independent investigation which it deems desirable to render its decision and the decision on review shall be made as soon as feasible after the Committee's receipt of the request for review. Written notice of the decision on review shall be furnished to the claimant and reported to the Plan Administrator. For all purposes under the Plan, such decisions on claims (where no review is requested) and decisions on review (where review is requested) shall be final, binding and conclusive on all interested persons as to all matters relating to the Plan.
  
 7.04 All expenses incurred by the Bank, the Committee, or the Plan Administrator in their administration of the Plan shall be paid by the Bank.
  
 	 
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 Article 8. Amendment and Termination
  
 The Board of Directors may amend, suspend or terminate, in whole or in part, the Plan without the consent of the Committee, Plan Administrator, or any Member, beneficiary or other person, except that no amendment, suspension or termination shall retroactively impair or otherwise adversely affect the rights of any Member, beneficiary or other person to benefits under the Plan which have accrued prior to the date of such action, as determined by the Committee in its sole discretion. The Plan Administrator may take any action which may be necessary or appropriate to facilitate the administration, management and interpretation of the Plan or to conform the Plan thereto, provided any such action does not have a material effect on the then currently estimated cost to the Bank of maintaining the Plan. Notwithstanding anything else to the contrary contained herein, upon termination of the Defined Contribution Plan Component of the Plan or the Defined Benefit Plan Component of the Plan, the applicable account balances and benefits shall be paid to each Member, beneficiary or other person entitled to benefits in accordance with the applicable plan termination rules described in Treas. Reg. Section 1.409A-3(j)(4)(ix) as may be amended from time to time.
  
 	 
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 Article 9. General Provisions
  
 9.01 The Plan shall be binding upon and inure to the benefit of the Bank, and its successors and assigns, and the Members, and their successors, assigns, designees and estates. The Plan shall also be binding upon and inure to the benefit of any successor organization succeeding to substantially all of the assets and business of the Bank, but nothing in the Plan shall preclude the Bank from merging or consolidating into or with, or transferring all or substantially all of its assets to, another organization which assumes the Plan and all obligations of the Bank hereunder. The Bank agrees that it will make appropriate provision for the preservation of Members' rights under the Plan in any agreement or plan which it may enter into to effect any merger, consolidation, reorganization or transfer of assets. Upon such a merger, consolidation, reorganization or transfer of assets and assumption of Plan obligations of the Bank, the term "Bank" shall refer to such other organization and the Plan shall continue in full force and effect until terminated pursuant to Article 8.
  
 9.02 Neither the Plan nor any action taken thereunder shall be construed as giving to a Member the right to be retained in the employ of the Bank or as affecting the right of the Bank to dismiss any Member from its employ.
  
 9.03 The Bank shall withhold or cause to be withheld from all benefits payable under the Plan all federal, state, local or other taxes required by applicable law to be withheld with respect to such payments.
  
 9.04 No right or interest of a Member under the Plan may be assigned, sold, encumbered, transferred or otherwise disposed of and any attempted disposition of such right or interest shall be null and void.
  
 	 
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 9.05 If the Plan Administrator shall find that any person to whom any amount is or was payable under the Plan is unable to care for his or her financial affairs because of illness, accident, or disability, or is a minor, or has died, then any payment, or any part thereof, due to such person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative), may, if the Plan Administrator is so inclined, be paid to such person's spouse, child or other relative, an institution maintaining or having custody of such person, or any other person deemed by the Plan Administrator to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be in complete discharge of the liability of the Plan and the Bank therefor.
  
 9.06 To the extent that any person acquires a right to receive payments from the Bank under the Plan, such right shall be no greater than the right of an unsecured general creditor of the Bank.
  
 9.07 All elections, designations, requests, notices, instructions and other communications from a Member, beneficiary or other person to the Plan Administrator required or permitted under the Plan shall be in such form as is prescribed from time to time by the Plan Administrator and shall be mailed by first-class mail or delivered to such location as shall be specified by the Plan Administrator and shall be deemed to have been given and delivered only upon actual receipt thereof at such location.
  
 9.08 The benefits payable under the Plan shall be in addition to all other benefits provided for employees of the Bank and shall not be deemed salary or other compensation by the Bank for the purpose of computing benefits to which he may be entitled under any other plan or arrangement of the Bank.
  
 9.09 No Plan Administrator or Committee member shall be personally liable by reason of any instrument executed by him or her or on his or her behalf, or action taken by him or her, in his or her capacity as a Committee member nor for any mistake of judgment made in good faith. The Bank shall indemnify and hold harmless the Defined Benefit Plan and each Plan Administrator, Committee member, and each employee, officer or director of the Bank or the Defined Benefit Plan, to whom any duty, power, function or action in respect of the Plan may be delegated or assigned, or from whom any information is requested for Plan purposes, against any cost or expense (including fees of legal counsel) and liability (including any sum paid in settlement of a claim or legal action with the approval of the Bank) arising out of anything done or omitted to be done in connection with the Plan, unless arising out of such person's fraud or bad faith.
  
 	 
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 9.10 In the event the Bank in error makes an overpayment, the Member agrees that the Bank, with notice to the Member, may charge the account back.
  
 9.11 The captions preceding the sections of the Plan have been inserted solely as a matter of convenience and shall not in any manner define or limit the scope or intent of any provisions of the Plan.
  
 9.12 The provisions of the Plan shall be construed, administered and governed under the laws of the United States including, without limitation, IRC Section 409A and implementing regulations and, to the extent they defer to the state law, the laws of the State of New York in effect from time to time.
  
 The Federal Home Loan Bank of New York Amended and Restated Defined Benefit & Defined Contribution Benefit Equalization Plan has been duly adopted by the Bank this 17th day of November 2022, to be amended and restated effective as of January 1, 2023.
  
 	 	 FEDERAL HOME LOAN BANK OF NEW YORK
	
	 	 	 	 
		By:	/s/ Mildred Tse-Gonzalez	
	  
	  
	 Mildred Tse-Gonzalez
	 
	 	 	 Director of Human Resources
 and Corporate Real Estate
	 

  
 	 Attest:
	
	 	 
	 /s/ Brian Finnegan
	
	 Brian Finnegan
	 
	 Corporate Secretary
	 

  
 	 
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 Schedule A
  
 Members Eligible to Participate in the “Bank Up To 9% Match” Under Section 4.03 of the Plan
  
 Members eligible to participate in the “Bank up to 9% match” under Section 4.03 of the Plan shall be those Members who serve as voting members of the Bank’s Management Committee.
 The actual list of such persons shall be maintained by the Plan Administrator.
  
 Unless expressly provided for in the Plan, additional Members may be added to or removed from Schedule A for future Plan years with the approval of the Bank’s Board of Directors.
  
 	 
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 Schedule B
  
 Members Eligible Effective July 1, 2021 to Accrue Retirement Benefits Solely From the Defined Benefit Component of the Plan
  
 The list of Members referenced in Section 3.01(i) of the Plan shall be maintained by the Plan Administrator.
  
 Unless expressly provided for in the Plan, additional Members may be added to or removed from Schedule B for future Plan years with the approval of the Bank’s Board of Directors.
  
 	 
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