Common use of Authorization for Release of Pledged Securities Clause in Contracts

Authorization for Release of Pledged Securities. The Custodian shall require written authorization from the Administrator before effecting release of any of the Pledged Securities to the Depository. The Custodian will not pay the Depository any principal funds as a result of a maturity or redemption without 1) the receipt of written authorization by the Administrator, and 2) adequate collateral replacement or substitution of Approved Securities to ensure the Fair Market Value of the Securities Account exceeds the Pledge Amount, if needed. In no case shall the Fair Market Value of the Securities Account be less than the Pledge amount after the withdrawal.

Authorization for Release of Pledged Securities. The Custodian Qualified Trustee shall require written authorization from the Administrator before effecting release of any of the Pledged Securities to the Depository. The Custodian Qualified Trustee will not pay the Depository any principal funds as a result of a maturity or redemption without (1) the receipt of written authorization by the Administrator, and (2) adequate collateral replacement or substitution of Approved Securities to ensure the Fair Market Value of the Securities Account exceeds the Pledge Amount, if needed. In no case shall the Fair Market Value of the Securities Account be less than the Pledge amount after the withdrawal.