Cash Management

Cash Management Solutions for the

Real Estate Industry

Presented by:

Bernadette Knight, Treasury Product Sales Manager, SVP

Lyndie Fasold, Treasury Product Consultant, VP

INVESTMENT AND INSURANCE PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NO BANK GUARANTEE • MAY LOSE VALUE

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Agenda

• Introduction

• Challenges of the Real Estate Industry

• Cash Management Solutions & Flow

• Cash Management Product Offerings for Real Estate Industry

• Questions & Answers

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Challenges of the Real Estate Industry

Managing information on bank accounts

Collections from tenants

Streamlining the payment process

Bank account reconciliation

Safeguarding bank accounts

Segregation and reporting of tenant funds

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Treasury Cash Management Solutions

Work with clients to help manage the complexity of today’s business environment

through the development of credit and cash management solutions that are designed to:

• Minimize Risk

• Maximize Returns

• Increase Operational Efficiency

Regardless of your company’s technology level, financial institutions offer a suite of

solutions for each step of the way.

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Disbursements

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Cash Management Flow

Collection

Check

ACH

Wire

ACH

Check

Wire

Electronic Banking

Investments

Borrowings

Lockbox

Mail

Deposit

File

Manual

Domestic

International

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Electronic Banking

Accurate, real-time account information reporting daily

Virtual Access via the Internet

Convenience, available 24/7 - when and where youneed it

Constantly reviewed and updated security features

Information Reporting

- Reporting of Account Balances and Transaction Details

- Notification of Same Day Account Activity(Wires and ACH)

- Positive Pay Exception Report (FraudPrevention Tool)

The power of information is delivered via Online Banking


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Electronic Banking

Transaction Initiation

- ACH Origination

- Foreign and Domestic WireTransfer Initiation

Additional Modules

- Transaction History Retention

- Bill Payment Capability

- Various Transaction and CashManagement Reports

The power of information is delivered via Online Banking


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Electronic Banking

Funds Transfers - Domestic

Manage time critical payments with confidence

• Same day availability

• Initiate with ease via the Internet

• Move domestic and international funds througha single sign-on

• Ability to set multiple layers of security available

• Schedule recurring and future-dated domesticwire transfers

Funds Transfer - International

• Issue payments in over 90 currencies

• Real time online foreign currency exchangequotations

• Array of Applications include:– International employee compensation– Commercial payments– Overseas expenses

Payment Services

Automated Clearing House (ACH) Services

Cost effective payments with next day availability

• Reduce cost and float vs. paper remittances

• Convenient and secured delivery channels via the Internet or direct transmission

• Various payment applications

– Direct deposit of payroll

– Vendor payments

– Expense reimbursement

– Pension / dividend / commission payments


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Electronic Banking

Two-Factor Token Authentication at sign-on

In addition to entering a user ID and password, users enter a token generated password during sign-on and when processing certain financial transactions.

128-bit SSL Encryption

Account / User Administration

System administration capabilities including “Tiered” system administration to allow assigning one of six levels of authority to designated administrators; Maker-Checker capability is also available for administrative transactions

System administration audit report & user entitlement report

Account / User Administration – Business Settings

Tailor system time out period

Set and adjust password expiration period for business

Wire Transfer / Transfer Approvals & Models

• Multiple approval levels possible to segregate transaction initiation/release authority

• Wire models available

Control / Fraud Prevention


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Chicago, IL

New Castle, DE

Los Angeles, CA

Dallas,TX

Uniondale, NY

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Nationwide hub with strategic sites

– Los Angeles, CA

– Dallas, TX

– Chicago, IL

– New Castle, DE

– Uniondale, NY

24/7 operation at all sites processing over 40 million payments per month

Use of unique zip codes to maximize cash flows

Use of advanced, image-based processing platform

– Reduce collection float

– Provide timely and accurate

information of receivables

Check & invoice data capture

for upload into A/R system

Near real-time internet access

to checks & remittance information

Collections - Lockbox Overview

Lockbox Services are ideal for companies looking to accelerate and automate

the receivables process.


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How Does Lockbox Work?

Payment mailed USPS Courier Pick-up LBX Processing Facility

Data is consolidated

Checks go to the transit process

Data delivery to Customer

And into the payment

system for collection

• Dispatch

• Data transmission

• Integration with other A/R

• Images via CD-Rom


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Key Features

Imaging technology

– Front and back view of checks, coupons

and wholesale remittance documents,

including invoices and correspondence,

and envelopes

– Online images available next day

Simultaneous access to multiple users

– Images of critical documents provided to

multiple users within your company

simultaneously via CitiBusiness Online

Seven-year archive

– Transactions available online immediately

for 90 days

– Transactions aged over 90 days are

available within four to eight hours of query

– Variable online image retention option is

available for up to 120 days

Benefits

Maximized funds availability

– Reduced mail, processing andavailability float

– Accelerated check clearing

– Multiple daily deposits

Optimized mail collection

– Up to 11 post office pickups daily

– Unique five-digit zip code reduces sorting time at post office

– High-speed sorters read and automatically sort to the box level


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Collections - Remote Check Deposit

Benefits

• Efficient – Significantly speeds collections and eliminates the photocopying or microfilming

involved in preparing checks for deposit

• Convenient – Virtually removes all geographic limitations and extends same day deposit

window with cut-off times to 8:00 pm local time

• Streamlined – Consolidates deposits, decreases clearing times and provides faster

notification of returned items.

• Cost Effective – Virtually eliminates trips to the branch, courier expenses and mail float, as

well as reduces account and deposit adjustment fees.

Remote Check Deposit * is a fast, reliable way to take advantage of all Check 21 has to offer – the

convenience and security of making image-enabled deposits directly into your Citibank account without ever

leaving your office


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1. Connect a piece of hardware called a check

scanner to your desktop/laptop, similar to

connecting a printer.

• One scanner to one PC

2. Scan checks

3. View images online via an internet base application

4. Approve, adjust, rescan as necessary

5. Transmit images for deposit

• One/many locations can deposit to one/many accounts

• Unreadable images will not be accepted for image deposit

• Variable “maker/checker” options

• No direct access to deposit account

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How Does RCD Work?

Remote Check Deposit (RCD) Overview

Things to Consider:

• Maximum items per deposit patch –

300 Items

• Need to develop a process

to manage and maintain

original checks


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Substitute Check (IRD)


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Collections/Payments - ACH Origination

ACH transactions are electronic, value-dated debits or credits that are exchanged among

participants. The Automated Clearing House Network can reach virtually every financial institution in the

United States.

Citibank is a leader in providing ACH Origination Services, regularly ranking among the top

providers in volume according to rankings published by the National Automated Clearing House

Association (NACHA). In 2008, Citibank initiated an average of 10.2 million ACH credits and 60 million

ACH debits monthly carrying a total value of approximately $70 billion USD.

• Files can be initiated online or via direct transmission

• Reduce cost and float vs. paper remittances

• Support for direct debit, payment, tax and direct deposit applications

• Secure options for transaction initiation

• ACH return information is available via electronic banking


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Account Reconciliation Services

Basic Reconcilement• Monthly statements of check issued

Partial Reconcilement• Detailed information on all checks paid to your account

Full Reconcilement• Checks are matched against issue file provided by client

Positive Pay• Checks matched against issue file provided by client• Discrepancies / exceptions reported to client for payment decision

Reconciliation plans designed to meet your risk management requirements.

LOW RISK HIGH RISK

BasicPartial

FullPositive

Pay


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Account Reconciliation Services & Safeguarding Accounts

Basic Reconcilement Service

Paid Check Listing Summary by Transaction Report

Partial Reconcilement Service

Paid Check Listing Duplicate Checks Report Stop Payments on File Report

Summary by Transaction Report Reversal Report Stop Payments Placed Report

Paid Checks Proof of Report Stop Payments Deleted Report

Full Reconcilement Service (All Basic and Partial Reconcilement Reports Plus):

Back-Value Detail Report Paid and Outstanding Checks Report Issuance Listing Report

Proof of Outstanding Report Outstanding Checks Report Paid Without Issuance Report

Positive Pay Service

• Issuance Information received daily or at time of check issuance

• Paid information matched daily: Amount, Check Serial Number and Payee

• Unresolved exceptions reported to customer for “Pay or No Pay” decision

• Key product for reconciliation and fraud protection

Reconcilement Services and Reporting


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Account Reconcilement Services

Sample file upload screen

Sample decision screen


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Safeguarding Accounts - ACH Services

ACH Debit Block

An ACH Block is a systemic means to force the return of any debit sent via the Automated Clearing House

to a DDA prior to posting of the entry.

• How does it work: Accounts flagged for this service will have all debit entries automatically returned

to the sending bank as "Not Authorized".

ACH Debit Filter

ACH Filter Service is essentially a Block on an Account plus electronic authorization(s) per client

instructions allowing certain Debits to pass on to posting.

• How does it work: An ACH Filter is a systemic means to selectively allow debits to pass into posting

based on predetermined criteria such as sending company ID and maximum dollar amount allowed.

Items that do not pass the criteria will be returned to the sending bank as "Not Authorized".

Minimize fraud with ACH Blocks & Filters


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Security Deposit Accounts

Via an Online platform you can manage tenant funds in segregated accounts

• Maintain Control account in the name of the property and Sub accounts for each tenant

• Interest credited monthly

• 1099 tax information mailed to Control or Client account holders

• Consolidated Account Statements containing the Control and all linked Client accounts are mailed to Control account mailing address

• Online sub account opening

• No fee or service charge

Control tenant funds with ease and confidence


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Thank You!

Bernadette Knight – 718.248.3092 [email protected]

Lyndie Fasold – 203.975.6122 [email protected]

Important Disclosures

Citigroup Inc. (Citigroup) and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it

is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer

should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.

All banking, commercial loans and credit lines are provided by Citibank, N.A. (Citibank), an equal opportunity lender, or its banking or lending

affiliates. All credit products are subject to satisfaction of Citibank’s underwriting guidelines and credit approval. Fees and conditions, including

minimum balances, apply to some products and services. Some products and services are provided by third parties not affiliated with Citibank, N.A.

Citibank, N.A. is not responsible for such parties’ performance.

Securities are offered through Citigroup Global Markets Inc. Member SIPC.

©2009 Citigroup Inc. Citibank, N.A. Member FDIC. CitiBusiness, Citi and Arc Design and Citibank and Arc Design are trademarks and service

marks of Citigroup Inc. or its affiliates and are used and registered throughout the world. Citibank, N.A. and Citigroup Global Markets Inc. are

affiliated companies under the common control of Citigroup Inc.

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