The Deposit Insurance Fund (DIF) was established on March 31, 2006 as a result of the merger of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) pursuant to the recently enacted deposit insurance reform legislation. The FDIC is the administrator of the DIF. The DIF is an insurance fund responsible for protecting insured bank and thrift depositors from loss due to institution failures. Depositor funds are protected by the full faith and credit of the United States government.

Not only are all ANOVAFunds FDIC Insured but ANOVA maintains a network of participating banks that represent the highest quality standards, and traditions in banking. ANOVA uses a nationally recognized bank rating service as well as a review of key capital ratios in order to insure that the participating banks have sufficient financial strength to accept deposits through the ANOVA program. Through the qualifying process the banks capital position and supervisory agreements are reviewed to highlight character and safety standards. Next, an ongoing monitoring, or early detection system, is implemented to ensure ongoing standards are met and/or exceeded regularly. ANOVA’s participating banks must fall into one of the two highest classifications to qualify as an ANOVA participating bank. If the bank is classified as a “Well Capitalized” bank then agreements will be executed upon review completion. If the bank is classified as an “Adequately Capitalized” bank then a waiver must be obtained from the FDIC allowing the bank to accept deposits from ANOVA before any further review is conducted.

All transactions are facilitated by a Third Party Custodian – a regional or national Trust Bank - who has a fiduciary responsibility to the Depositor for all deposit accounts. ANOVA’s Custodial & Fiduciary Agreement for Services with Custodian insures the highest level of security and fiduciary responsibility to our customers and participating banks.

Note - since 1934 when the FDIC was formed nobody has ever lost $1 of FDIC insured funds.

Anova Financial receives cash deposits from depositors through our custodial bank using web-based application AnovaFunds. Community banks request these funds using secure web-based application AnovaCore. Anova Financial then allocates funds to these community banks using the same online technology. Allocations are made to stay within the FDIC limits on insured funds of $100,000 per account per bank (or $250,000 per sub-account for qualified retirement plans). Anova Financial offers competitive rates to depositors while providing liquidity and FDIC insurance.

Each community bank may receive up to $100,000 per depositor account. In the case that depositors have sub-accounts the community banks may receive up to $100,000 per sub-account (or $250,000 per sub-account for qualified retirement plans) to stay within the FDIC insurance requirements.

Depositors such as pension fund managers, trustees, clerks of the court, non-profit organizations, money market portfolio managers, credit unions, insurance companies and private individuals have a new alternative to manage cash that is more secure, daily liquid without sacrificing returns. In addition, depositors may call their money at any time using the ANOVA's patented web-based technology.

Anova Financial's patent-pending web-based technology enables each stake holder to securely and seamlessly interact with ANOVA. Depositors can make deposits, make withdrawals, request reports and monitor their funds real-time through secure transactions in their web browser. Community banks can request funds, generate reports and receive transaction audits using the technology. The custodial banks and Anova Financial keep detailed secure transaction audits and meet regular reporting requirements.

Opening an account is easy and should take no more than 5-10 minutes to complete the account activation document. With our AnovaFunds program you don’t change banks; you link your Bank Operating Account – “Linked Account” to your AnovaFunds Account to earn a higher interest rate for excess cash deposits above $100,000 (or above $250,000 for qualifying retirement accounts). Once ANOVA has your completed account activation document we will create a link to your existing Personal or Business Checking or Savings Bank Account. Once the link has been established you can sweep excess cash into the AnovaFunds Account as you choose or withdraw funds as you need them back to your Bank Operating Account.

The AnovaFunds Account is a Self-directed Jumbo Sweep Account which stretches your FDIC insurance coverage up to $5,000,000 through our AnovaFunds Bank Network. We aggregate your deposit with state and local governments, pension funds, insurance companies, money market managers and others to enable you to earn higher interest through our FDIC-Insured, Liquid, Money Market Deposit Account. You access and manage one account while earning a higher yield due to the aggregated wholesale deposit value we bring through our network of participating banks.

No, in fact to have an ANOVAFunds account you must have a Personal or Business Checking or Savings Bank Account with another institution. We then link your personal checking account to your ANOVAFunds account. You can easily transfer funds from or to your ANOVAFunds account without charge. You can do transactions online at www.anovafinancial.com or by calling an ANOVA Account Representative toll free at 888-266-8293. Funds generally move between your existing linked bank account and your ANOVAFunds account within 24 hours.

ANOVA’s minimum deposit for opening an AnovaFunds Account online is $100,000. However, ANOVA reserves the right to modify this minimum under certain circumstances. Please contact an ANOVA Customer Service Representative at 1-888-266-8293 if you would like to learn more regarding these certain circumstances.

Deposits are daily liquid and can be withdrawn the next day if requested prior to 12:30 PM

The Interest Rate on your account depends on the account balance. The following table provides applicable rates, yields and minimum account balances that apply to these rates and yields. Your Interest Rate and APY will change monthly and you will be notified two (2) business days prior to the new month of the applicable rates, yields, and minimum balances that apply to your accounts.

Depositor Rates November 2008 2.85% APR       2.89% APY* Deposit Type Rate Yield* Min Deposit   AnovaFunds Insured Deposits   2.85% 2.89% $100,000   GoldSource   2.93% 2.97% $2,000,000   Institutional & Jumbo Deposits   Call for a Quote

* Annual Percentage Yield as of the posted month, $100,000 initial minimum deposit. Interest accrued daily and credited monthly. APY assumes interest will remain on deposit for 12 months. Rates are subject to change.

ANOVA currently charges no fees associated with your deposits or withdrawals. However, fees, described in the applicable product or account disclosure statement may apply to services ordered online and to transfers from your existing Personal or Business Checking or Savings Account (Linked Account). You may also incur fees for the telephone and Internet services you use to access the service.

You will automatically get a statement each month by logging into your account. Your statement will show all accounts that you have at ANOVA.

We take your security and privacy very seriously and always go the extra step to protect your information and your money. Industry-leading technology protects our systems. Sophisticated business procedures exist to verify your identity and ensure that all requests related to your account come directly from you. Transfers from your ANOVAFunds account can only be made to your existing linked bank account. No one else can access your account without your Customer number, Password and other personal information.

Interest on your account will be accrued daily and credited monthly. Interest shall be calculated on each Account by taking the average balance during each calendar month, multiplying the ratio of actual days in the given month divided by 365 days, times the agreed upon interest rate. A month shall be defined as the first day following the last banking business day of the prior calendar month, as defined by the Federal Reserve, through the last banking business day of the current month.

If you close your account before interest is credited, you will receive the accrued interest earned through the date of closing minus any amounts you owe us as it relates to “Liens or Set-offs”.