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

Authorization for Release of Pledged Securities. The Custodian shall comply with and perform any and all demands or orders received from the Treasurer relating to the Depository’s Pledged Securities, without notice or consent by the Depository. Such demands or orders include, but are not limited to, liquidating the Depository’s Pledged Securities and submitting the proceeds pursuant to the direction of the Treasurer. 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.