Common use of General Collateral Clause in Contracts

General Collateral. (GC)‌ The AFMA definition of General Collateral (GC) is collateral that meets a non-specific maturity requirement but has a quality requirement. As distinct from GC transactions with the Reserve Bank of Australia, a two-tier GC market, designated as “GC1” and “GC2”, is operated and classified as follows: • GC1 – Actively traded AUD Commonwealth and Semi-Government Bonds. Treasury Notes and Commonwealth and State Government Indexed bonds • GC2 – Any securities accepted by the RBA in daily liquidity dealings EXCEPT Global and Exchangeable securities Note: Unless specified the term “GC” within these conventions refers to both GC1 and GC2.