Products and Solutions Guide - Federal Home Loan Bank of Boston
Products and Solutions Guide - Federal Home Loan Bank of Boston
Products and Solutions Guide - Federal Home Loan Bank of Boston
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Collateral Requirements cont’d.Collateral RequirementsMember’s Specific Collateral RecordkeepingRequirements – Depository InstitutionsCategory 1 Members:1. May use, commingle, encumber, or dispose <strong>of</strong> anyportion <strong>of</strong> their collateral as long as:a. there has been no event <strong>of</strong> default under themember’s “Agreement for Advances, CollateralPledge, <strong>and</strong> Security Agreement;” <strong>and</strong>b. the remaining eligible collateral accepted by the<strong>Bank</strong> still satisfies the collateral maintenance level.Upon receipt <strong>of</strong> a member’s request along withconfirmation that the member’s remaining collateralwould still satisfy the collateral maintenance level,the <strong>Bank</strong> will execute releases to facilitate dispositions<strong>of</strong> collateral by the member.2. Agree to permit <strong>Bank</strong> personnel to conduct periodic onsite reviews to verify collateral pledged.Category 2 Members:1. Are required to segregate <strong>and</strong> label all loans pledged as“Collateral for the <strong>Federal</strong> <strong>Home</strong> <strong>Loan</strong> <strong>Bank</strong> <strong>of</strong> <strong>Boston</strong>.”2. May not commingle, encumber, or dispose <strong>of</strong> anycollateral without the express written consent <strong>of</strong> the<strong>Bank</strong>.3. Agree to permit <strong>Bank</strong> personnel to conduct periodic onsite reviews to verify listed collateral that is pledged.Category 3 Members:1. Are required to deliver to the <strong>Bank</strong> or to a <strong>Bank</strong>approvedthird party custodian an amount <strong>of</strong> eligiblecollateral, acceptable to the <strong>Bank</strong>, sufficient to satisfythe collateral maintenance level along with any requiredassignment <strong>of</strong> collateral to the <strong>Bank</strong>.2. May not use, commingle, encumber, or dispose <strong>of</strong>collateral that has been assigned <strong>and</strong> delivered withoutthe express written consent <strong>of</strong> the <strong>Bank</strong>.3. Are required to segregate on site <strong>and</strong> mark as property<strong>of</strong> the <strong>Bank</strong> all ancillary documents that pertain tocollateral that has been delivered to the <strong>Bank</strong>.4. Are required to notify the <strong>Bank</strong> <strong>of</strong> the acceptance <strong>of</strong>proceeds from the repayment <strong>of</strong> notes pledged to the<strong>Bank</strong> as collateral. The <strong>Bank</strong> may require the delivery<strong>of</strong> an amount <strong>of</strong> collateral equal to the proceeds <strong>of</strong> therepayment <strong>of</strong> the notes into a collateral account tosecure the member’s indebtedness to the <strong>Bank</strong>.5. Agree to permit <strong>Bank</strong> personnel to conduct periodicon-site reviews to verify listed collateral that is pledged.collateralMain Telephone: 617-292-9600 • Customer Service: 1-800-358-9709 • Money Desk: 1-800-357-3452 • Relationship Managers, MPF, <strong>and</strong> Housing & Community Investment: 1-888-424-3863 42
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