Specifications include, but are not limited to: The depository agreement covering collateral and its safekeeping shall be executed between the Center and the depository for custody of pledged securities in full compliance with FIRREA requiring a bank resolution. All time and demand deposits above FDIC coverage shall be collateralized at a minimum of 102% of market value principal plus accrued interest daily. The bank shall be responsible for the daily monitoring and maintaining of collateral at the Center's required 102% margin levels. Pledged collateral shall be evidenced by original safekeeping receipts/report sent directly to the Center preferably by the custodian within one business day of receipt. The Center shall receive a monthly report of collateral pledged including description, par, market value and cusip. Substitution rights shall be granted if the bank obtains the Center’s prior approval and if substituting securities are received before previously pledged securities are removed from safekeeping. Substitution rights may be waived under certain conditions approved by the Center if online access to priced collateral is available.
