implementation guide Revision 3/10
Contents Section 1: Seamless Implementation 2 Our Service Commitment 2 Your Roles & Responsibilities 2 The Implementation Process 3 Implementation Details 4 Section 2: Implementation Step A Set-Up of Checking Account 5 Section 3: Implementation Step B Service Agreements 6 Section 4: Implementation Step C Service Set-Up 8 Section 5: Implementation Step D Implementation 11 Sub-Account Set-Up 12 Key Total Treasury 15 Section 6: Implementation Step E Post Implementation 17 Additional Sub-Account Set-Ups 17 Closing Sub-Accounts 17 Section 7: Glossary of Terms 18 This document is designed to provide general information only and is not legal advice. If legal advice or other expert assistance is required, the services of a competent professional should be sought. KeyBank (Key) does not make any warranties regarding the results obtained from the use of this information. Page Revision 3/10 1
Section 1: Seamless Implementation This guide provides step-by-step details on how, working with you as a partner, Key can establish your Services. At Key, we understand this service plays an integral role in simplifying your escrow sub-account reconcilement. With this in mind, we are committed to ensuring the best possible experience. Our Service Commitment Deliver accurate information that will meet or exceed our established service levels Work with you as a partner to identify problems and look for solutions that will benefit you and allow us to maintain quality standards Keep the lines of communication open so that in the event of any delays in the delivery of your services, you are informed immediately. Your Roles & Responsibility While Key will work to ensure seamless implementation of your service and avoid delays, you can assist us by providing the needed resources when requested and forwarding completed documents and/or information in a timely manner. Revision 3/10 2
The Implementation Process Phase I: Information Gathering Meet & have dialogue to gather information regarding your needs Provide appropriate documents Forward completed documents to Key Phase II: Service Set-up Key activates services Confirmation occurs between you & Key Phase III: Post Implementation Key provides appropriate system access user IDs, etc. You are production-ready 1-5 business days 1 business day 3 business days Steps A-C Step D Step E Revision 3/10 3
Implementation Details Responsibility & Timing Your Cash Management Sales Officer will schedule an initial implementation meeting to discuss the process, timing and details for implementing your new services. The grid below highlights the critical implementation steps and typical timing. Based on your unique needs and resources, Key will discuss with you typical turnaround time for the implementation of these services. A Implementation Step Key Responsibility Client Responsibility Timing Open Account A non-interest bearing master account will be established within the Key system Activate account on system; provide you with paperwork to complete account set-up Ensure signature cards are returned in a timely manner Number of days is dependent on your completion and delivery of signature cards and risk questionnaire to Key B Sign Service Agreement Determine appropriate KAM solution You will sign service agreement with Key and a valid W-9 or W- 8BEN Provide you a copy of the service agreement Sign and return copies to Key Number of days is dependent on your delivery of signed agreement to Key C Service Selection Prerequisite products: non-interest master account Define users, access controls Provide guidance to you on service offerings within the product; champion the implementation process Make decisions on service functionality and provide the needed resources to ensure implementation support Number of days is dependent on availability D Testing & Implementation Complete sub-account set-up forms Ensure proper set-up and testing of your service based on the options you selected Have staff available for testing and questions; timing is heavily dependent on availability On average, 2 business days; dependent on service functionality chosen and availability of your resources E Post Implementation What to expect and timing How to open additional subaccounts, how to close subaccounts E-mail and/or mail appropriate information to you Ensure the appropriate information is received; contact Key if you do not receive by specified timing 3-4 business days after implementation Revision 3/10 4
Section 2: Implementation Step A Set-Up of Account Clients will need to open a non-interest bearing master account, and determine the appropriate KAM solution to meet their needs. Revision 3/10 5
Section 3: Implementation Step B Service Agreements In order to implement services, you must sign a copy of the Master Account Agreement. Your Cash Management Sales Officer will provide electronic copies of these agreements. Your service cannot be implemented without a signed agreement. Below is a sample for reference. Revision 3/10 6
*Please see your Cash Management Sales Officer for a Public KAM Agreement. Revision 3/10 7
Section 4: Implementation Step C Service Set-up The set-up of your Key Accounts Manager services will be unique, based on your needs and other Key services you may be using. The chart below provides guidance, options, and requirements to consider as you make decisions. Your Cash Management Sales Officer will work with you to determine which function best fits your needs. Key Accounts Manager is limited to the following industries: Rental Security Lifecare Attorney Escrow Real Estate Escrow Agent Pre-Need and Funeral Trust Family Self Sufficiency Non Profit Public Available for any property management company that handles security deposits, including: Apartment landlords Property managers Storage unit operators Facilities that offer life care, including: Nursing homes Extended care facility Assisted living facilities For attorneys not using Interest on Lawyers Trust (IOLTA/IOTA) escrow accounts. Ideal for law firms that manage: Estates and trusts Court settlements Real estate escrow agents managing consumer funds during title transfers of building contracts: Title companies Real estate developers Condo developers Handling of pre-need funeral home trusts. For Public Housing Authorities. Designed for: Government non profit organizations Non-government non profit organizations (NGOs) Designed for governments that centralize funds management for multiple departments. Requirements You should review the Product Information Guide for Key Accounts Manager services in order to decide which service is appropriate for your needs. Based on state laws and regulations, Key Accounts Manager can only be offered in certain states. Revision 3/10 8
The following grid highlights availability: Rental Security Lifecare Attorney Escrow Real Estate Escrow East Pre-need (Funeral Trust) Non Profit Family Self- Sufficiency New York X X X X X X X * Maine X X X X X X * Connecticut X X X X * Midwest Ohio X X X X X * Indiana X X X X X X * Michigan X X X X X X * Kentucky X X X X X X * West Washington X X X X X X * Oregon X X X X X X * Colorado X X X X X X * Utah X X X X X X * Idaho X X X X X X * Alaska X X X X X * Arizona X X * Key Accounts Manager Module * Please contact your Cash Management Sales Officer for availability. Security and Segregation of Duties For those individuals within your company that will access the Key Accounts Manager Module on Key Total Treasury, you need to consider who will be able to initiate funds transfers and access reports. Public Functionality Decide which users will access your service? Determine what functionality each user will have access to. Segregation of duties, etc. Options Who will be able to initiate funds transfers? Who will be able to access reports? Which reports will each user be able to access? Revision 3/10 9
Account Titling of Your Subaccounts You will need to work with your Cash Management Sales Officer to determine how you want your subaccount titling to be structured. Revision 3/10 10
Section 5: Implementation Step D Implementation Once you have set-up a non-interest bearing master account and determined the appropriate KAM solution, you will receive a letter outlining the documentation required to ensure a timely and seamless implementation of KAM services. Revision 3/10 11
In addition, you must complete the appropriate sub-account set-up form, which will be provided by KAM support. To Set-up New Sub Accounts: 1. Obtain new templates 2. Complete the required fields in the set-up template, as illustrated in this guide. 3. Email the spreadsheet to the KAM Support Team at Key_Accounts_Manager@keybank.com 4. Submit any additional documentation, such as W-8s (original) or W-9s. to: KeyBank Key Accounts Manager OH-01-51-0633 PO box 5998 Cleveland, OH, 44101-5998 Key_Accounts_Manager@keybank.com 5. Accounts will only be opened once all required documentation is received. 6. Email or contact the KAM Support Team Monday-Friday, 8:00 a.m. ET- 5:00 p.m. ET at (800) 361-4031with any questions. Please note: If any of your requests cannot be processed, you will be contacted by the KAM Support Team. Revised sub account requests should be resubmitted through a new template. Once new sub accounts have been set-up, they appear on your KAM reports on Key Total Treasury. New sub accounts opened on the last business day of a month will appear on the next month s KAM report. Required Fields on Sub Account Template: A. Date mm/dd/yyyy: Date prepared by the client. B. Prepared By: The name of the person who completes the template. C. Telephone Number: Preparer s telephone number. D. Master\Client Name: Name of organization, which must be the same as the name on the master account. Rental Security Ace Properties Lifecare Skilled Nursing Facility Attorney Escrow J &J Law Offices Real Estate Escrow Agent Ace Properties Pre-need Funeral Trust (NY) NY Funeral Home Family Self Sufficiency Public Housing Authority Non Profit The Foundation Public The City Revision 3/10 12
E. Master Account Number: The client s master checking account number. F. Group Number: The Group number assigned to the client by the KAM Support Team, provided when the account was opened. G. Division: An optional field used by clients for identification purposes. H. Unit Number: An optional field defined by the client. These may contain miscellaneous information. I. Sub Account Name: Sub account holder s name (individual or business). J. Title Line 2: Additional titling for a sub account holder. K. Sub Account Deposit Amount: An optional field indicating the amount of the first deposit. Clients performing prefunding will use this field. L. Rental Security Pet, Garage, or Other Deposit Flag: An optional field that identifies the presence of additional fees. Enter P, G, O, or leave blank. Rental Security P Lifecare Attorney Escrow Real Estate Escrow Agent Pre-need Funeral Trust (NY) Family Self Sufficiency Non Profit Public M. New York Rental Security Year End Interest: Required for New York clients only. All other clients should leave this field blank. Indicate C if sub account interest is to be sent via paper check or A if it is to be direct deposited to the sub account. Rental Security Lifecare Attorney Escrow Real Estate Escrow Agent Pre-need Funeral Trust (NY) Family Self Sufficiency Non Profit Public A N. Sub Account SSN\EIN\TIN: The tax identification number of the sub account holder (SSN=Social Security Number, EIN=Employer Identification Number, TIN=Tax Identification Number). O. Sub Account U.S. Citizen: Enter Y if the sub account holder is a U.S. citizen, otherwise enter N. P. Tax ID Indicator: Enter 0 if the sub account holder is an individual; otherwise enter 1 to indicate a business. Q. Pre-Need Only Irrevocable Trust Flag: Required for Pre-need clients only. Enter a Y if the sub account is an irrevocable trust; otherwise enter an N. Rental Security Lifecare Attorney Escrow Real Estate Escrow Agent Pre-need Funeral Trust (NY) Y Family Self Sufficiency Non Profit Public Revision 3/10 13
R. Non Profit and Lifecare Only Sub Account Date of Birth mm/dd/yyyy: The date of birth of the sub account holder. Rental Security Lifecare Attorney Escrow Real Estate Escrow Agent Pre-need Funeral Trust (NY) Family Self Sufficiency Non Profit 11/30/1932 11/30/1932 Public S. Sub Account Street Address: The number and name of the street for the sub account holder. T. Additional Space for Foreign Address: An optional field to include additional foreign address information. U. City: The city of the street address. V. State, Possession or Canadian Province Code: The state of the street address. W. Zip code: The zip code of the street address. X. KeyBank Use Only- Country Code: Leave blank. Revision 3/10 14
Key Total Treasury To view reports and initiate funds transfers, you will need to be set-up to access Key Total Treasury. A representative of your company must be available to work with Key during set-up. Ideally, this representative will have access to the Key Total Treasury system when the service is live. Key Total Treasury Log-In Log in to the Key Total Treasury Web site by following the steps below. 1 Open an internet browser and go to www.key.com. Click on the Corporate Banking tab. 2 Enter your Log-on ID and Password in the Key Total Treasury section. Revision 3/10 15
3 Click on the Key Accounts Manager module tab within Key Total Treasury. 4 Select report you would like to view or initiate transfer. Revision 3/10 16
Section 6: Step E Post Implementation You will receive communication from Key after services are set up appropriately in our system. Once you receive communication, service will occur within seven business days from month-end or last monthly input file from you. Please review the following within two weeks of service set-up or sooner. If you implemented Key Total Treasury You will receive E-mail confirmation detailing user IDs and passwords At this time, you may open additional sub-accounts by completing the appropriate Key Accounts Manager set-up forms. You may also close subaccounts by completing the Key Accounts Manager Closeout Form. Copies of these forms have been included in the Appendix for your review. Revision 3/10 17
Section 7: Glossary of Terms 1099 An IRS required tax form sent by KeyBank to sub account owners that earn $10.00 or more in interest for the previous tax reporting year. ACH FDIC IRS Key KAM Master Account TIN W-8(BEN) The Automated Clearing House, which is used to electronically transfer funds. Federal Deposit Insurance Corporation, an entity assures the protection of balances in KAM up to the maximum allowable limit (set by the FDIC). Internal Revenue Service KeyBank Our Key Accounts Manager solution segregates client escrow funds into separate, no access sub-accounts, each clearly identified by a unique account number, as well as the client s social security or taxpayer ID number. A non-interest bearing account with sub accounts tied to it. A tax identification number, which is used to pen KAM sub accounts. A document issued by the IRS to be completed by persons with a foreign status (beneficial owner) for tax purposes. W-9 A document issued by the IRS to be completed by U.S. citizens for tax purposes. Revision 3/10 18