Common use of Lending Guidelines Clause in Contracts

Lending Guidelines. A. The Lending Agent may only lend securities whose country of issuance is listed on the Program Manager’s list of Approved Countries for Equity Lending and Fixed Income Lending, a copy of which is attached hereto as Exhibit A. B. Collateralization 1. The required amount of collateralization upon the making of a loan shall be market value times the appropriate percentage for each security type: a. Domestic Securities – 102% b. International fixed income securities – 102% c. International equity securities – 105% 2. If the market value of the given collateral falls to 100% or below of the loaned security market value, the Lending Agent shall obtain additional collateral to bring the collateralization back to initial margin requirement by the end of the next business day. 3. The following forms of collateral are acceptable: a. Cash; b. Securities issued or guaranteed by the U.S. government or its agencies or instrumentalities; c. Irrevocable, non-negotiable standby letters of credit issued by a bank that qualifies as an investment company custodian bank under the 1940 Act or any “eligible foreign custodian” as defined in Rule l7f-5 under the 1940 Act; and d. In connection with loans of internationally traded debt and equity securities made through the Euroclear Securities Lending and Borrowing Program of Xxxxxx Guaranty Trust Company of New York, a guaranty issued by the program sponsor to participants in that program.

Lending Guidelines. A. The Lending Agent may only lend securities whose country of issuance is listed on the Program Manager’s list of Approved Countries for Equity Lending and Fixed Income Lending, a copy of which is attached hereto as Exhibit A. B. Collateralization 1. The required amount of collateralization upon the making of a loan shall be market value times the appropriate percentage for each security type: a. Domestic Securities – 102% b. International fixed income securities – 102% c. International equity securities – 105% 2. If the market value of the given collateral falls to 100% or below of the loaned security market value, the Lending Agent shall obtain additional collateral to bring the collateralization back to initial margin requirement by the end of the next business day. 3. The following forms of collateral are acceptable: a. Cash; b. Securities issued or guaranteed by the U.S. government or its agencies or instrumentalities; c. Irrevocable, non-negotiable standby letters of credit issued by a bank that qualifies as an investment company custodian bank under the 1940 Act or any “eligible foreign custodian” as defined in Rule l7f-5 17f-5 under the 1940 Act; and d. In connection with loans of internationally traded debt and equity securities made through the Euroclear Securities Lending and Borrowing Program of Xxxxxx Guaranty Trust Company of New York, a guaranty issued by the program sponsor to participants in that program.