Acceptance of Term Deposits as Collateral

May 11, 2010

Announcement Regarding the Acceptance of Term Deposits Placed with the Federal Reserve under its Term Deposit Facility as Collateral for Discount Window lending and Payment System Risk purposes

The Federal Reserve is formally announcing the acceptance of Term Deposits placed with the Federal Reserve under its Term Deposit Facilityoffsite link as collateral for discount window lending and payment system risk purposes. The collateral margins for Term Deposits are listed below and have been added to the Discount Window & Payment System Risk Collateral Margins Table [MS Excel;199K]:

Margins for Securities
(as percentage of estimated fair market value)

Operating Circular No. 10offsite link is the lending agreement and promissory Note for Federal Reserve advances. It sets forth the terms under which Reserve Banks will extend credit to a depository institution and specifies the legal documents that must be filed before a depository institution can borrow from the discount window.

Please contact your Federal Reserve Bank for additional information.