Common use of Loan Collateral Clause in Contracts

Loan Collateral. For each loan of securities, Lending Agent shall require the Borrower to pledge as collateral the following items: (i) cash in U.S. dollars; (ii) U.S. Government Securities; or (iii) irrevocable performance letters of credit issued by (a) a domestic bank that is organized under the laws of the United States, (b) a domestic bank that is organized under the laws of a State, or (c) a foreign bank that has filed an agreement with the Federal Reserve Board to comply with the same rules and regulations applicable to U.S. banks in securities credit transactions (collectively, "Collateral") having an initial market value (as determined by Lending Agent pursuant to the applicable MSLA) at least equal to 102% of the market value (including any accrued interest) of any domestic securities loaned or 105% of the market value (including any accrued interest) of any foreign securities loaned, as the case may be (as determined pursuant to the applicable MSLA).