PRODUCT SOLUTIONS

DEVELOPED BY IDEALOGY WEB

LIABILITY SOLUTIONS

For many deposit-taking institutions, funding the gap between loan and deposit growth has become a significant challenge. To address this shortfall, institutions increasingly turn to alternative funding sources as well as enhanced deposit products. Shay Financial Services, Inc. provides both.

National Market CDs
Shay assists institutions with raising funds in the brokered deposit market. Brokered deposits are a valuable and important part of the funding mix of many well-capitalized financial institutions. Such funding, because it accesses the national market, can be accomplished without disrupting local branch deposit-taking activities and can provide greater flexibility of term and structure than can typically is feasible in their local area. Moreover, the cost of collecting and servicing brokered deposits is significantly lower than conventional deposits. Issuers make a single periodic interest payment; Shay and its affiliate, Anthem Bank & Trust are responsible for statement generation and tax reporting.

Many financial institutions find Shay's custodial CD the most attractive means of accessing the brokered deposit market. This alternative provides a balance of rate, simplicity and expedience. With a custodial CD, there is virtually no paperwork to complete. After a rate, term and structure are agreed upon, the issuer need only to execute a one-page confirmation. Funds are forwarded the same day and the issuer mails the physical certificate to our custodian. Its that simple.

CD Issuance Procedures
The DTC CD The Custodial CD
Step 1. Funding representative from Shay negotiates rate by phone with issuing institution (Issuer). Step 1. Funding representative from Shay negoiates rate by phone with issuing institution (Issuer).
Step 2. Shay sends Issuer a Letter of Representations and a Brokerage Agreement. Thereafter, the originals need to be signed and returned. Step 2. Shay sends Issuer a Letter of Representations and a Brokerage Agreement. Thereafter, the originals need to be signed and returned.
Step 3. Shay distributes CDs on a "Best Efforts" basis and advises Issuer of final offering amount two (2) days prior to settlement date. Step 3. Shay instructs the CD custodian, Anthem Bank & Trust (ABT) to fax the Certificate of Resolution to the Issuer.
Step 4. Shay provides Issuer with a Master CD Form which the Issuer must sign and return to the Depository Trust Company (DTC), one (1) day prior to settlement date. Step 4. Upon receiving the signed Purchase Confirmation with wire instructions, Shay wires funds to Issuer.
Step 5. Shay wires funds to Issuer on settlement date. Step 5. Issuer sends the original CD or safekeeping receipt, bank disclosures and signature cards to ABT.
Step 6. Issuers wires interest payments to DTC upon interest payment dates. Step 6. Issuer sends interest payments to ABT upon interest payment dates, via ACH or check.
Step 7. Shay contacts Issuer prior to CD maturity to effect a "rollover" rate and term. Step 7. Shay contacts Issuer prior to CD maturity to effect a "rollover" rate and term.
Step 8. In lieu of a "rollover", Issuer wires DTC principal amount at maturity. Step 8. In lieu of a "rollover", Issuer wires Shay principal amount at maturity.


Whether your in the market to gather deposits or add FDIC insured CDs to your investment portfolio, Shay's CD Desk is your single source. For additional information, please call 800.842.4112

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