PUBLIC INTEREST REGISTRY (PIR).ORG. Credit and Payment Policies

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1 PUBLIC INTEREST REGISTRY (PIR).ORG Credit and Payment Policies Credit Policies Registrars must have a Public Interest Registry ( PIR ) Registrar Financial Information Form and a Registrar Data Form on file with PIR. Establishing Credit To secure its initial obligations arising under a Registry-Registrar Agreement, or to increase its originally established credit limit, a Registrar must: a. Provide PIR with a cash deposit (the Cash Deposit ) paid by check or wire transfer, or b. Provide PIR with an irrevocable, transferable, letter of credit (the Letter of Credit ) The amount of the Cash Deposit and/or Letter of Credit must at all times be in an amount sufficient to secure the complete payment of all fees and costs payable by the Registrar under the Registry- Registrar Agreement. If a Registrar establishes a Cash Deposit with PIR, then PIR shall apply the Cash Deposit to all fees and other amounts due under The Registry-Registrar Agreement. The Letter of Credit shall be an irrevocable, transferable stand-by letter of credit from a bank acceptable to PIR s Bank, and shall provide security for the Registrar s satisfaction of its obligations under the Registry-Registrar agreement. Exhibit B outlines the requirements for the Letter of Credit. Exhibit C is the Letter of Credit format required by PIR s bank. If the Registrar expects the total cost of its registrations for any month to exceed the amount in the Letter of Credit, the Registrar must supplement the credit limit established by the irrevocable Letter of Credit with a Cash Deposit for an amount at least equal to this anticipated excess. If PIR finds, in its reasonable discretion, that the Cash Deposit and/or Letter of Credit are not sufficient to secure the complete payment of any outstanding or anticipated fees or other amounts due under the Registry-Registrar Agreement, registration of domain names for the Registrar will be suspended, and new registrations will not be accepted until all outstanding fees and other amounts due under the Registry-Registrar Agreement have been paid and the Cash Deposit or Letter of Credit is replenished to an amount sufficient to secure the complete payment of any proposed or anticipated registrations. Therefore, the Registrar should ensure timely payment of invoices and should provide PIR with a notification threshold sufficient to prevent the payment security account from depleting to zero.

2 Payment for Domain Name Registrations processed 1. If the Registrar has established credit by a Cash Deposit: Each month PIR shall mail an invoice to each Registrar that has established a Cash Deposit, detailing the domain names processed during the previous month, the amount applied from the Cash Deposit and the remaining balance of the Cash Deposit. At no time shall a Registrar register or be entitled to register any domain name if the Cash Deposit (plus the amount of any Letter of Credit) does not contain sufficient funds to pay the fees arising from such registration plus any unpaid fees and other outstanding amounts due under the Registry-Registrar Agreement. A Registrar may replenish the Cash Deposit by wiring readily available funds to PIR at the account shown on Exhibit A. Checks should be made payable to the Public Interest Registry, 1775 Wiehle Avenue, Suite 100, Reston, Virginia Please note that a check is not credited to the Registrar s account until it clears and provides available funds. This can require several days for domestic (US) checks and several weeks for international checks. For quicker availability, funds should be sent by wire transfer. In the event a Registrar s check is returned for non-sufficient funds, PIR reserves the right to require that all future payments by such Registrar be made by wire transfers. 2. If the Registrar has established credit by a Letter of Credit: If a Registrar establishes only a Letter of Credit, PIR will make available a monthly invoice to the Registrar for domain names processed during the previous month. The Registrar must pay invoices upon receipt by check or wire transfer in order to ensure timely processing of future domain name registrations. Please note that a check is not credited to the Registrar s account until it clears and provides available funds. This can require several days for domestic (US) checks and several weeks for international checks. For quicker availability, funds should be sent by wire transfer. At no time shall a Registrar register or be entitled to register any domain names if the sum of all unpaid fees and other outstanding amounts due under The Registry-Registrar Agreement, plus the Fees arising from such registration, exceed the amount of the Letter of Credit (plus the amount of any Cash Deposit). (See above for requirements regarding Cash Deposits.) PIR is not responsible for the failure of or any related deliveries due to outdated or inaccurate contact information or failure caused by postal and electronic mail carriers. Therefore, it is essential that the Registrar keep contact information current with PIR. Updates to contact information should be sent to financial@pir.org. Only authorized personnel of PIR can modify this policy. Modifications must be in writing. Payment Policies 1. All payments of fees or other amounts under the Registry-Registrar Agreement must be made in U.S. dollars. 2

3 2. Electronic statements of activity are available in the registrar relations area of the website. 3. Funds must be wired to the Wells Fargo Bank, N.A. The content of the wire transfer is outlined in Exhibit A. Funds will be credited to the Registrar s account on the next business day following receipt by Wells Fargo Bank, N.A. 4. EFFECTIVE NOVEMBER 1, 2013, once a Registrar has established its payment security using either Cash Deposit or Letter of Credit, PIR will accept credit cards to update account balances under the policies set forth in Exhibit D. 3

4 EXHIBIT A WIRE TRANSFER INSTRUCTIONS In order for your wire transfer to be accepted by our bank, you must provide the following information about your bank, bank account and amount to be transferred: Registrar Bank Name and Address Name As Shown on Registrar Bank Account Amount to Be Transferred to Public Interest Registry Account This wire transfer is going to Wells Fargo Bank, NA. Therefore, the following information is required. Beneficiary name: Public Interest Registry Account Number: Beneficiary Bank Name: Bank Address: SWIFT Code: Wells Fargo Bank, N.A. Wells Fargo 420 Montgomery Street San Francisco, CA USA WFBIUS6S Bank ABA Number for Wires: Bank ABA Number for ACH: You must include the following Originator to Beneficiary Information (OBI) in order for funds to be properly credited to your account: For (Registrar Name) (Registrar Number*) *Your account number consists of four numbers and two letters such as 1234-AB 4

5 EXHIBIT B PUBLIC INTEREST REGISTRY LETTER OF CREDIT REQUIREMENTS As security for Registrar s full and faithful performance of the terms, covenants, conditions and provisions of the Registry-Registrar Agreement by Registrar, including the payment of fees, and in compliance with the requirements of Section 4.2 of the Agreement, Registrar shall, in the event that Registrar has not established a Cash Deposit, deliver to PIR an irrevocable, transferable stand-by Letter of Credit running in favor of PIR and satisfying the following terms (as reasonably determined by PIR): 1. The irrevocable, transferable stand-by Letter of Credit should be advised to PIR in U.S. Dollars and available for payment at the counters of Wells Fargo Bank, N.A. 2. The irrevocable, transferable stand-by Letter of Credit shall be issued by a bank approved by PIR, in its sole and reasonable discretion, and in the initial amount determined by the parties to satisfy the requirement of Section 4.2 of the Agreement. 3. The irrevocable, transferable stand-by Letter of Credit or any substitute irrevocable, transferable stand-by Letter of Credit shall be maintained in full force and effect until the expiration of the 60-day period commencing on the expiration or termination of the term of the Registry-Registrar Agreement. The Letter of Credit shall be irrevocable for the term thereof and shall provide that it is automatically renewable for successive one-year periods without any action whatsoever on the part of PIR; provided, however, that the issuing bank shall have the right not to renew the Letter of Credit upon written notice, given by certified mail, to PIR not less than 60 days prior to the expiration of the then current term thereof (it being understood, however, that the privilege of the issuing bank not to renew the Letter of Credit shall not, in any event, diminish the obligation of Registrar to maintain an irrevocable, transferable stand-by Letter of Credit, or cash security deposit, with PIR through the date which is 60 days after the expiration or termination of the term of the Registry-Registrar Agreement ). 4. The irrevocable, transferable stand-by Letter of Credit shall allow multiple draws, and shall allow PIR to draw against the irrevocable, transferable stand-by Letter of Credit in the event of (a) a failure by Registrar to pay any fees or other payment obligation under The Registry- Registrar Agreement and/or (b) upon receipt of any notice not to renew the irrevocable, transferable stand-by Letter of Credit. Upon any draw of the irrevocable, transferable standby Letter of Credit due to the issuing bank s notice not to renew, such funds so drawn shall be held by PIR as a Cash Deposit in accordance Section 4.2 of the Agreement. The irrevocable, transferable stand-by Letter of Credit will allow the drawing thereof by presentation of (1) such irrevocable, transferable stand-by Letter of Credit and (2) a certificate signed by an officer or representative of PIR certifying as to the occurrence of the event specified in (a) or (b) above, at the counters of Wells Fargo Bank, N.A. 5. The form and provisions of the irrevocable, transferable stand-by Letter of Credit shall be acceptable to PIR, in its sole and reasonable discretion. 5

6 6. In the event of an assignment of the Agreement by PIR, then PIR shall have the right to transfer the irrevocable, transferable stand-by Letter of Credit to the assignee, and it is agreed that the provisions hereof shall apply to every transfer or assignment of the irrevocable, transferable stand-by Letter of Credit to a new Registry. As used in connection with the irrevocable, transferable stand-by Letter of Credit, PIR means the Public Interest Registry and its assignees and each of its assignees subsequent assignees. 7. If, as a result of any draw of all or any part of the irrevocable, transferable stand-by Letter of Credit, the amount of the irrevocable, transferable stand-by Letter of Credit shall be less than the then required amount, Registrar shall promptly provide PIR with additional letter(s) of credit, or a cash security deposit, in an amount equal to the deficiency, and no default of Registrar shall be deemed cured until such deficiency is restored. 6

7 EXHIBIT B EXHIBIT C IRREVOCABLE STANDBY LETTER OF CREDIT NO DRAFT LETTER OF CREDIT AMOUNT ISSUE DATE EXPIRY DATE USD$************ TO: Wells Fargo Bank, National Association SWIFT PNBP US 33 SLC BENEFICIARY: Public Interest Registry 1775 Wiehle Avenue, Suite 200 Reston, VA APPLICANT: We hereby establish, at the request and for the account of (the account party ), in your favor, this Irrevocable Standby Letter of Credit No., in the amount of United States Dollars (the Stated Amount ), and expiring at the close of banking business at our office at: on: (the Expiration Date ). We hereby irrevocably authorize you to draw on us in accordance with the terms and conditions hereinafter set forth, in one or more drawings when accompanied by the following: Your draft(s) bearing thereon Drawn under Bank s Letter of Credit No.., payable at sight on a banking day (as defined below), and duly endorsed on its reverse thereof, or your SWIFT or tested telex message stating that: We certify that we are drawing the amount of: as it relates to past due credit obligations from the Applicant. Multiple drawings are permitted. This Letter of Credit sets forth in full the terms of our undertaking and such undertaking shall not in any way be modified, amended or amplified by reason of our reference to any agreement or instrument referred to herein or in which this letter of credit is referred. Any such agreement shall not be deemed incorporated herein by reference. This letter of credit is automatically renewable for successive one year periods without any amendment being required unless you receive an authenticated swift/telex from us dated not less than 60 days prior to the applicable expiry date stating that we elect not to have this letter of credit renewed for a further one year period. Except as otherwise expressly stated herein, this Letter of Credit shall be governed by the International Standby Practices 1998 International Chamber of Commerce Publication No. 590 ( ISP98 ).

8 We hereby agree with you that draft(s) drawn under and in compliance with the terms and conditions of this Letter of Credit shall be duly honored on due presentation to our offices listed above. We agree that all drawings presented in compliance with the credit terms will be honored on the 2 nd business day from receipt in accordance with your instructions. Communications to us with respect to this Letter of Credit must be in writing and shall be addressed to us at: specifically referring therein to this Letter of Credit by its number. Very truly yours, Authorized Signature Issuing Bank s Signor 8

9 Attachment 1 Date:, 20 Advising/Confirming Bank: Wells Fargo Bank, N.A. Re: Irrevocable Standby Letter Of Credit No. Ladies and Gentlemen: For value received, Public Interest Registry (the Beneficiary ) hereby irrevocably transfers to: [Transferee name] [Transferee address] (The Transferee ) all rights of the Beneficiary to draw under the above Letter of Credit in its entirety. By this transfer, all rights of the Beneficiary in such Letter of Credit are transferred to the Transferee and the Transferee shall have the sole rights as beneficiary thereof, including sole rights relating to any amendments, whether increases or extensions or other amendments, and whether now existing or hereafter made. All amendments are to advised directly to the Transferee without necessity of any consent or of notice to the Beneficiary. The Letter of Credit is returned herewith, and we ask you to notify the Transferee in such form, as you deem advisable of this transfer and of the terms and conditions of the Letter of Credit. Sincerely, BENEFICIARY SIGNATURE AUTHENTICATED By: Name: Title: (Authorized Signature) ACKNOWLEDGED: TRANSFEREE By: Name: Title: 9

10 EXHIBIT D CREDIT CARD POLICIES EFFECTIVE NOVEMBER 1, 2013, once a Registrar has established its payment security using either Cash Deposit or Letter of Credit, PIR will accept credit cards to update account balances under the following policies: 1. Registrars who wish to utilize a credit card to update their account balance must first have an authorized contact complete the Credit Card Authorization Form available at and submit the form online. 2. Submission of the Credit Card Authorization Form will create an auto generated Verification Number that must be used in order to process future credit card transactions. PIR Technical Support will verify the Authorization Form contact information and contact the Registrar once the credit card option becomes activated for their account. 3. Registrars are limited to one credit card transaction per 24 hour period. 4. Transactions can only be processed using VISA, Mastercard, Discover, or American Express. 5. Transactions cannot be less than US $1,000 nor can they exceed US $10, All credit card transactions will be subject to a 4.5 percent Expedited Funding Fee which will be added to the transaction amount. (E.g.: If you wish to update your account balance by US $1,000, you will enter the Amount as $1,000. When you receive confirmation from PIR the total amount charged to your credit card will be US $1,045. Your registrar account will then be updated by US $1,000) 7. Any registrar that files a chargeback against PIR will be prevented from utilizing the credit card balance update process to update their ORG account balance in the future. 10