Common use of Collateralization Clause in Contracts

Collateralization. On the date hereof and contemporaneously with the execution of this Custody Agreement, the Bank shall provide the IBFD with a statement of the total amount of Public Funds (as defined in the Agreement) on deposit at the Bank by sending an e-mail to ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ at ▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇.▇▇▇, or his designee. Immediately after executing this Custody Agreement, the Bank shall deposit into and deliver and credit to the Account, as security for its obligations under the Agreement, Collateral having a Market Value which equals the Collateral Requirement. If a Letter of Credit has also been obtained by the Bank as Pledged Collateral, the Bank may use the maximum draw amount under such Letter of Credit in connection with its analysis to determine if the Collateral Requirement has been satisfied (i.e., the maximum draw amount of the Letter of Credit shall be credited against the Collateral Requirement). The Bank hereby grants to the IBFD a first and prior security interest under the UCC in and to the Account and all Collateral credited to or otherwise held in the Account from time to time. The Bank acknowledges that this Custody Agreement constitutes written notification to the Bank, pursuant to Articles 8 and 9 of the UCC and applicable federal regulations for the Federal Reserve Book Entry System, of the IBFD’s security interest in the Collateral. The IBFD and the Bank are also entering into this Custody Agreement to provide for the IBFD’s control of the Collateral and to perfect, and confirm the priority of, the IBFD’s security interest in the Collateral. The Bank agrees to promptly make all necessary entries or notations on its books and records to reflect the IBFD’s security interest in the Collateral.

Collateralization. On the date hereof and contemporaneously with the execution of this Custody Agreement, the Bank shall provide the IBFD with a statement of the total amount of Public Funds (as defined in the Agreement) on deposit at the Bank by sending an e-mail to ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ at ▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇.▇▇▇, or his designee. Immediately after executing this Custody Agreement, the Bank shall deposit into and deliver and credit to the Account, as security for its obligations under the Agreement, Collateral having a Market Value which equals the Collateral Requirement. If a Letter of Credit has also been obtained by the Bank as Pledged Collateral, the Bank may use the maximum draw amount under such Letter of Credit in connection with its analysis to determine if the Collateral Requirement has been satisfied (i.e., the maximum draw amount of the Letter of Credit shall be credited against the Collateral Requirement). The Bank hereby grants to the IBFD a first and prior security interest under the UCC in and to the Account and all Collateral credited to or otherwise held in the Account from time to time. The Bank acknowledges that this Custody Agreement constitutes written notification to the Bank, pursuant to Articles 8 and 9 of the UCC and applicable federal regulations for the Federal Reserve Book Entry System, of the IBFD’s security interest in the Collateral. The IBFD and the Bank are also entering into this Custody Agreement to provide for the IBFD’s control of the Collateral and to perfect, and confirm the priority of, the IBFD’s security interest in the Collateral. The Bank agrees to promptly make all necessary entries or notations on its books and records to reflect the IBFD’s security interest in the Collateral.

Collateralization. On the date hereof and contemporaneously with the execution of this Custody Agreement, the Bank shall provide the IBFD with a statement of the total amount of Public Funds (as defined in the Agreement) on deposit at the Bank by sending an e-mail to ▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ at ▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇.▇▇▇, or his her designee. Immediately after executing this Custody Agreement, the Bank shall deposit into and deliver and credit to the Account, as security for its obligations under the Agreement, Collateral having a Market Value which equals the Collateral Requirement. If a Letter of Credit has also been obtained by the Bank as Pledged Collateral, the Bank may use the maximum draw amount under such Letter of Credit in connection with its analysis to determine if the Collateral Requirement has been satisfied (i.e., the maximum draw amount of the Letter of Credit shall be credited against the Collateral Requirement). The Bank hereby grants to the IBFD a first and prior security interest under the UCC in and to the Account and all Collateral credited to or otherwise held in the Account from time to time. The Bank acknowledges that this Custody Agreement constitutes written notification to the Bank, pursuant to Articles 8 and 9 of the UCC and applicable federal regulations for the Federal Reserve Book Entry System, of the IBFD’s security interest in the Collateral. The IBFD and the Bank are also entering into this Custody Agreement to provide for the IBFD’s control of the Collateral and to perfect, and confirm the priority of, the IBFD’s security interest in the Collateral. The Bank agrees to promptly make all necessary entries or notations on its books and records to reflect the IBFD’s security interest in the Collateral.