Zero Balance Account (ZBA)

Automated Centralized Cash Control

The Bank of Tennessee's Zero Balance Account (ZBA) is designed to provide the customer with centralized cash control function while decentralizing its cash disbursement or depository activities. With a ZBA account system, multiple demand deposit accounts act as satellite accounts that are electronically linked to a master account and maintained at a zero balance.

This reduces the number of accounts that need to be monitored or controlled, but maintains their disbursement and depository autonomy. In addition, by "pooling" your company's funds into a single master account, investment or debt reduction activities are simplified.

At the end of each business day, your company's satellite accounts are automatically drawn to zero, or a predetermined target balance. Transferring funds are automatically credited to or drawn from the master account. As a result, the net balances in each satellite account is the same each day. Only the balance in the concentration account fluctuates.

This way your company receives a variety of benefits, so you can conveniently:

• Maintain better control over funding while employing an audit trail
• Allow operating units to transact business without direct access to corporate funds
• Eliminate time spent monitoring and transferring account balances
• Eliminate idle cash
• Maximize the use of funds
• Simplify internal accounting