Collateralization. In accordance with the provisions of Section 10 of the GML, all deposits of the New York Liquid Asset Fund (NYLAF), including certificates of deposit and special time deposits, in excess of the amount insured under the provisions of the Federal Deposit Insurance Act shall be secured: 1. By a pledge of “eligible securities” with an aggregate “market value” as provided by Section 10 of the GML, equal to the aggregate amount of deposits from the categories designated in Appendix A to the policy. 2. By an eligible “irrevocable letter of credit” issued by a qualified bank other than the depositary bank in favor of New York Liquid Asset Fund (NYLAF) for a term not to exceed 90 days with an aggregate value equal to 140% of the aggregate amount of deposits and the agreed upon interest, if any. A qualified bank is one whose commercial paper and other unsecured short-term debt obligations are rated in one of the highest rating categories by at least one nationally recognized bank rating agency or by a bank that is in compliance with applicable federal minimum risked-based capital requirements.
Appears in 4 contracts
Samples: Municipal Cooperation Agreement, Municipal Cooperation Agreement, Municipal Cooperation Agreement
