Download the Word version of this template and use it when designing the terms of your agreement.
Sample Financial Institution Partner Agreement
Use the language in this example when putting together an agreement with partnering bank(s) or credit union(s). Keep in mind that this is just a sample. Some financial institutions might be willing to accept all these provisions, but some will not. Be ready to modify this to make it work. To succeed, Assets for Independence (AFI) projects must have cooperative financial partners—so be sure to contact the AFI Resource Center for guidance on any hurdles you encounter.
The 'AFI Project Agency' is the grantee
[Name of Bank] is making a non-Federal cash contribution as well as an in-kind contribution to the [AFI Project Agency]. The details of this commitment are as follows:
The 'AFI Project' is the grantee's IDA initiative
- [Name of Bank] shall hold a Project Reserve Fund, in the name of [AFI Project], which shall include both the non-Federal cash contribution and the Federal grant funds.
- [Name of Bank] agrees to deposit, as soon after receipt as is practicable, into the Project Reserve Fund all funds provided to our bank from public or private sources in connection with the AFI project and any investment proceeds from the Reserve Fund.
- The Reserve Fund shall accrue interest on a monthly basis at a rate of ___%.
- Each IDA shall be opened when an approved AFI participant comes to a designated location (street address of [Name of Bank]) and presents an account form, signed by the applicant and the AFI project coordinator, and an initial deposit of at least $___, to a teller or bank manager. The account form shall include the participant's name, address, telephone numbers, Social Security number, asset goal, total savings goal, monthly savings goal, and method of payment (cash, check, money order, or electronic transfer).
- Each IDA shall be a regular interest-bearing savings account, held in the name of the participant, and shall accrue interest on a monthly basis at ___% (subject to change due to periodic rate adjustments made by the bank at its discretion and with prior written notice to the [AFI Project]).
- After IDAs are opened, participants who make deposits by check or money order may make deposits at any [Name of Bank] location by bringing in or mailing the deposits. Cash deposits may be made at any location but may not be mailed. Deposits must be made before 4 p.m. on the last working day of the month; otherwise, the deposit shall be reflected on the next month's statement.
- Each participant must present an [AFI Project] authorized withdrawal form, signed by the participant and [AFI Project] coordinator before the participant's share and match share will be issued to a designated third party. This form shall include the name of the vendor to whom the cashier's checks will be written, and the accurate amounts of the participant's share and the match share plus interest earned.
- The [AFI Project Agency] shall be responsible for tracking all monthly matches and interest accrued to each participant. Since all matching funds are held in the Project Reserve Fund, the funds plus interest accrued will be issued from the bank only when a participant provides a completed authorized withdrawal form to the bank and only for the amount stated on that form.
- [Name of Bank] shall provide [AFI Project Agency], free of charge, with a monthly statement or spreadsheet reflecting the deposits, withdrawals, and interest accrued in both the Project Reserve Fund and participants' IDAs. Each participant shall receive, free of charge, a monthly or quarterly statement, which shall include their deposits, withdrawals, and interest accrued.
- [Name of Bank] is making a non-Federal cash commitment to the [AFI Project], contingent on award of an AFI grant, of $______ to match the Federal AFI grant funds. The funds shall be contributed as follows: $_____ for Y1, $_____ for Y2, $_____ for Y3, and $_____ for Y4.
- In addition to the donated funds, [Name of Bank] shall also provide trained bank employees to assist with financial education, which is an estimated in-kind value of $_____ per hour per employee. [Name of Bank] shall implement staff training and policy and procedure development for IDAs at an estimated in-kind value of $_____. The bank will allow [AFI Project Agency] to use the conference rooms during or after business hours at an estimated rate of $____ an hour as in-kind assistance. [Name of Bank] also commits to waive fees customarily associated with opening savings accounts, and monthly service fees, for the Project Reserve Fund and the IDAs, an estimated in-kind value of $_____ for approximately ____ participants.
- In addition to the non-Federal cash contribution, the total in-kind estimates are valued at $______ over the next 5 years.
- [Name of Bank] complies with Federal Deposit Insurance Corporation accounting regulations, reporting quarterly and annually, and will comply with any additional financial reporting requirements of the Office of Community Services. [AFI Project Agency] follows government auditing standards: OMB circular A–110 (Uniform Administrative Requirements for Grants and Agreements for Non-Profit Organizations) and A–122 (Cost Principles for Non-Profit Organizations).
- This agreement shall be effective from the beginning date of the [AFI Project Agency’s] grant award through the closing date of the project period specified in the award, unless modified by consent of [Name of Bank] and [AFI Project Agency].
- Other terms of this agreement may be modified by consent of both [Name of Bank] and [AFI Project Agency].
- All terms shall be consistent with the laws applicable in this State and with AFI policies as described in the Assets for Independence Act or other guidance issued by the Office of Community Services, Administration for Children and Families, U.S. Department of Health and Human Services.
Signature: [Authorized Financial Institution] Date
Signature: [AFI Project Agency] Date