Common use of Collateral substitution Clause in Contracts

Collateral substitution. (i) Zero per- cent of the fair value of collateral pledged to the national bank or Fed- eral savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with other assets that qual- ify as level 1 liquid assets, without the consent of the national bank or Fed- eral savings association; (ii) 15 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty, where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2A liquid assets, without the con- sent of the national bank or Federal savings association; (iii) 50 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where under, the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2B liquid assets, without the con- sent of the national bank or Federal savings association; (iv) 100 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qual- ify as HQLA, without the consent of the national bank or Federal savings association; (v) Zero percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 1 or level 2A liquid as- sets, without the consent of the na- tional bank or Federal savings associa- tion; (vi) 35 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2B liquid assets, with- out the consent of the national bank or Federal savings association; (vii) 85 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qualify as HQLA, without the con- sent of the national bank or Federal savings association; (viii) Zero percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2B liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with other assets that qualify as HQLA, without the con- sent of the national bank or Federal savings association; and (ix) 50 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2B liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qualify as HQLA, without the con- sent of the national bank or Federal savings association.

Collateral substitution. (i) Zero per- cent of the fair value of collateral pledged to the national bank or Fed- eral savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with other assets that qual- ify as level 1 liquid assets, without the consent of the national bank or Fed- eral savings association; (ii) 15 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty, where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2A liquid assets, without the con- sent of the national bank or Federal savings association; (iii) 50 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where under, the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2B liquid assets, without the con- sent of the national bank or Federal savings association;; aworley on LAPBH6H6L3 with DISTILLER (iv) 100 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 1 liquid assets and xxx- gible HQLA and where, under the con- tract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qual- ify as HQLA, without the consent of the national bank or Federal savings association; (v) Zero percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 1 or level 2A liquid as- sets, without the consent of the na- tional bank or Federal savings associa- tion; (vi) 35 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that qualify as level 2B liquid assets, with- out the consent of the national bank or Federal savings association; (vii) 85 percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2A liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qualify as HQLA, without the con- sent of the national bank or Federal savings association; (viii) Zero percent of the fair value of collateral pledged to the national bank or Federal savings association by a counterparty where the collateral qualifies as level 2B liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with other assets that qualify as HQLA, without the con- sent of the national bank or Federal savings association; and (ix) 50 percent of the fair value of col- lateral pledged to the national bank or Federal savings association by a counterparty where the collateral VerDate Sep<11>2014 19:17 Aug 25, 2023 Jkt 259035 PO 00000 Frm 00884 Fmt 8010 Sfmt 8010 Q:\12\12V1.TXT PC31 qualifies as level 2B liquid assets and eligible HQLA and where, under the contract governing the transaction, the counterparty may replace the pledged collateral with assets that do not qualify as HQLA, without the con- sent of the national bank or Federal savings association.