Phase-out Period for Federal Health Insurance Bank Accounts –

120.3 - Phase-out Period for Federal Health Insurance Bank Accounts – (Rev. 5, 08-30-02) A1-1420.3, B1-4418.3 In the event of termination of the bank agreement, the bank agrees to retain the contractor's Federal Health Insurance Account(s) for up to an additional 180-day period, beyond the current term, to allow for clearance of outstanding checks. (See subsection C of the IFB.) The letter-of-credit issued to the bank remains in effect to allow the bank to draw payment vouchers to cover all outstanding checks as they are presented for payment. During this phase out period, the current bank agreement continues in effect with the exception of the following: • Letter-of-Credit - Covenant 5; • The Term of the Bank Agreement - Covenant 7; • Termination of Agreement - Covenants 8 and 9; and • Renegotiation of Agreement - Covenant 10. It is further understood that during the phase out period: • The bank maintains collateral in an amount sufficient to cover the high balances in the account(s) less FDIC coverage on each account; • All bank service charges and earnings credits are consistent with those amounts reflected in the current agreement; • All terms and conditions of the original bid submitted by the bank, which are not inconsistent with this additional term, remain in effect; and • The contractor continues to complete the CMS-1521, CMS-1522 and the TAA Schedules.