Federal Reserve Collateral Guidelines

Last Update: 6/3/2014

 Contents
Introduction ...................................................................................................................................................... 1
Securities ........................................................................................................................................................... 1
Acceptance Criteria for Securities ................................................................................................................. 1
Securities Valuation and Margins .................................................................................................................. 3
Pledging Arrangements for Securities ........................................................................................................... 4
Loans ................................................................................................................................................................. 7
Acceptance Criteria for Individual Loans ....................................................................................................... 7
Loan Valuation and Margins.......................................................................................................................... 9
Pledging Arrangements for Loans................................................................................................................ 10
Access to Collateral Information ..................................................................................................................... 12
Intra‐day Collateral Balances ....................................................................................................................... 12
Ex‐post Collateral Information .................................................................................................................... 13
Introduction
This guide provides an overview of the Federal Reserve’s collateral program. Collateral pledged to Federal
Reserve Banks can be used to secure discount window advances and may be used to offset risk associated
with extensions of daylight credit or master account activity. For more information on the use of collateral
under the Payments System Risk (PSR) policy, refer to the Guide to the Federal Reserve’s Payment System
Risk Policy on Intraday Credit. This guide is designed to acquaint depository institutions with:

(1) the various types of assets accepted as collateral

(2) the available pledging arrangements and estimated processing times
(3) the approach used to value and establish margins on assets pledged as collateral

The information contained in this guide is a summary. It does not supersede or replace any requirements
contained in specific Federal Reserve agreements, policies or procedures, and may be periodically updated.
Prior to pledging collateral to a Federal Reserve Bank, an institution should complete the required
agreements located in the Federal Reserve’s Lending Agreement, Operating Circular 10. Additional
information is located on the Discount Window & Payment System Risk website.

The pledging institution under the terms and condition of the Federal Reserve’s Lending Agreement makes
assignments of collateral. It should be noted that the Reserve Bank will normally require a perfected security
interest in collateral pledged and will require a public filing when appropriate.

Please contact your Reserve Bank to discuss specific questions regarding collateral eligibility or pledging
procedures. Toll‐free phone numbers are listed on the Discount Window & Payment System Risk Website.

Securities
Reserve Banks accept a wide range of assets as collateral. General acceptance criteria for securities can
be found below. Following the general acceptance criteria there is a detailed list of eligible asset types
along with pledging instructions and valuation information.

Acceptance Criteria for Securities

1) The pledging institution must have rights in the securities that are sufficient to grant an
enforceable security interest to the Reserve Bank. The Reserve Bank must be able to obtain a
perfected, first priority security interest in the securities, free of the adverse claims of third
parties, including the claims of an insolvency official or an affiliate of the pledging institution.
2) Securities should not be subject to any regulatory or other constraint(s) that impair their liquidation.
3) Securities may not be obligations of the pledging institution or an affiliate of the pledging
institution, or otherwise correlated with the financial condition of the pledging institution.
4) Unless otherwise indicated, securities must be rated investment grade and in some cases must be
rated "AAA" (where indicated). If more than one rating is available, the most conservative (lowest)
rating will determine whether the requirement is met.
5) Intermediated securities must be transferred to the Reserve Bank's account at DTC, Euroclear or
Clearstream or the pledging institution’s U102 account in FSS. Certificated securities must be
held at a custodian approved by the Reserve Bank or at the Reserve Bank.
6) Securities denominated in eligible foreign currencies are acceptable. Eligible foreign currencies are:

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 Japanese Yen, Euro, Australian Dollars, Canadian Dollars, British Pounds, Danish Krone, Swiss
Francs, and Swedish Krona.

Asset Type Eligibility Pledging Process

U.S. Treasury Securities and Fully FSS

Guaranteed Agencies DTC (limited basis)
Government Sponsored Enterprises – For structured notes, the FSS
Bills, Notes, Bonds, and Zero Coupons principal balance may not be DTC (limited basis)
structured as a derivative
Foreign Government Agencies Includes securities backed by Clearstream
guarantees of export credit Euroclear
agencies

Foreign denominated securities

are acceptable and must be AAA
rated
Foreign Government, Foreign Includes securities backed by FSS
Government Guaranteed, and Brady guarantees of government Clearstream
Bonds export credit agencies Euroclear

Foreign denominated securities

are acceptable
Supranationals Foreign denominated securities FSS
are acceptable and must be AAA
rated
Corporate Bonds Excludes convertible bonds DTC

Includes subordinated debt

For structured notes, the

principal balance may not be
structured as a derivative
Covered Bonds Must be U.S. issued DTC
German Jumbo Pfandbriefe U.S. dollar and foreign Clearstream
denominated securities are Euroclear
acceptable and must be AAA
rated

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 Asset Type Eligibility Pledging Process
Municipal Bonds Municipal bonds without ratings DTC
may be acceptable; contact your
Reserve Bank for additional
details

Foreign denominated securities

are acceptable and must be AAA
rated
Asset Backed Securities DTC
Collateralized Debt Obligations Must be AAA rated DTC
Commercial Mortgage Backed Must be AAA rated DTC
Securities
Agency Backed Mortgages (Pass ‐Excludes IO, PO, Z, inverse FSS
Throughs and CMOs) floater, and residual tranches DTC (limited basis)
Private Label Collateralized Mortgage Must be AAA rated DTC
Obligations ‐Excludes IO, PO, Z, inverse
floater, and residual tranches
Trust Preferred Securities Dividend payments must not be DTC
suspended
Certificates of Deposit, Bankers’ DTC
Acceptances, Commercial Paper, Asset
Backed Commercial Paper
Government Sponsored Enterprises – Preferred stock must be DTC
Stock investment grade rated

Common stock must be listed on a

stock exchange

Securities Valuation and Margins

In general, the Federal Reserve seeks to value securities collateral at a fair market value estimate. Margins
are applied to the Federal Reserve’s fair market value estimate and are designed to account for the risk
characteristics of the pledged asset as well as the volatility of the value of the pledged asset over an
estimated liquidation period.

Securities are typically valued daily using prices supplied by external vendors. Eligible securities for which
a price cannot readily be obtained will be assigned an internally modeled fair market value estimate based
on comparable securities, and they will receive the lowest margin for that asset type.

Margins for securities are assigned based on asset type and duration. Margins are established based on the
historical price volatility of each category, measured over typical liquidation periods.

See the Federal Reserve Discount Window & Payment System Risk Collateral Margins Table for more
information.

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 Pledging Arrangements for Securities

Note: Stated processing times for all pledging processes are approximate and may vary based on volume and other constraints,
and are not guaranteed.

Fedwire® Securities Service (FSS) Pledging Process –

Hours of Operation:
Pledge: 8:30 a.m. ET – 7:00 p.m. ET or 30 minutes after the close of Fedwire
Withdrawal: 8:30 a.m. ET – 3:15 p.m. ET (1:30 p.m. ET for offline banks)

General Processing Time:

Pledge: Effective upon the completion of the transaction
Withdrawals: Effective within minutes of the DI entering instructions via on‐line access or providing
instructions via off‐line access for automated withdrawals. Withdrawals requiring
manual intervention may take up to 30 minutes.

These securities are recorded in the Federal Reserve’s Fedwire Securities Service (FSS). The FSS maintains all
marketable U.S. Treasury securities in electronic form, as well as many federal government agencies,
government sponsored enterprises (GSE) and certain supranational organizations’ securities and provides
safekeeping, transfer, and delivery‐versus‐payment settlement services. To pledge these securities to the
Federal Reserve, the securities must be held in the pledging institution’s Federal Reserve account (U102).
Operating Circular No. 7, Fedwire Securities Account Maintenance and Transfer Services, contains specific
information regarding FSS accounts. Additional information can be found at www.frbservices.org.

A pledge or withdrawal request can be submitted online using FedLine® or offline by contacting Wholesale
Operations staff by phone. It should be noted that principal and interest payments on pledged securities
will continue to flow to the pledging institution; however, principal at maturity may be suspended if needed
to collateralize an outstanding obligation.

A pledging institution with an existing FSS account should contact the appropriate Wholesale Operations
Site to verify that the Federal Reserve (U102) restricted securities account has been activated. If the U102
account is not activated, the institution should instruct the Wholesale Operations Site to establish a U102
account. Pledging institutions without an existing FSS relationship should contact the appropriate Wholesale
Operations Site to obtain the authorization forms necessary.

Note: pledging institutions are not required to maintain a master account with a Federal Reserve Bank to
establish a U102 account.

For PSR purposes only, certain institutions may use in‐transit collateral to secure additional daylight
overdraft capacity beyond their net debit cap in support of their max cap. In‐transit securities are defined
as book‐entry securities transferred over FSS that have been purchased by a depository institution but not
yet paid for and owned by the institution’s customers. The pledging of securities in‐ transit requires
institutions to record on its books in real time both the securities that are pledged to the Reserve Bank, and
the cash allocated by the institution’s customers to fund securities transactions.

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There are special instructions related to in‐transit book‐entry securities collateral that must be considered
by the depository institution. Pledging institutions must provide a file to the Federal Reserve’s Collateral
Management System (CMS) each night containing CUSIP‐level, minute‐by‐minute data on securities
pledged and cash provided by the institution’s customers to fund the securities purchases. Institutions will
need to establish a connection for the data transmission, comply with deadlines for file submission, and
conform to file formatting requirements. CMS will price and apply any necessary margin adjustments to
these securities net of customer funding amounts to arrive at a value for in‐transit collateral for each
minute of the day.

Institutions interested in pledging in‐transit collateral for PSR purposes should contact their local Reserve
Bank staff for detailed information and technical specifications. In addition, at least twice a year, the RB
performs an audit of these DIs’ processes and records.

Depository Trust Company (DTC) Pledging Process –

Hours of Operation:
Pledge: 8:00 a.m. ET – 5:00 p.m. ET**
Withdrawal: 8:00 a.m. ET – 5:00 p.m. ET **
** Note: Institutions may request an end of day extension through the local Reserve Bank. Extension requests must be
submitted no later than 4:30 pm ET.

General Processing Time:

Note: Stated processing times for all pledging processes are approximate and may vary based on volume and other constraints,
and are not guaranteed.
Pledge: The majority of eligible DTC securities receive straight‐through processing within the
Federal Reserve’s Collateral Management System (CMS). Straight‐through processing is
effective within minutes of receiving message from DTC. Some DTC securities may
require manual processing, which can take between 10 minutes and several hours after
receiving message from DTC. If accepted by the Federal Reserve, collateral value is
assigned within seconds; if rejected, DTC will reverse the pledge on its books within
minutes. Note: For some securities, it may take several days to gather and evaluate
information needed to make a final eligibility determination and provide collateral
value. A Reserve Bank may either reject the pledge while completing its analysis or
accept it and not assign a collateral value until after eligibility is determined.

Withdrawal: Effective within minutes after receiving message from DTC for automated withdrawals.
Withdrawals requiring manual intervention may take up to 30 minutes.

DTC is a central securities depository for equity and fixed‐income securities in the U.S. market. Each Reserve
Bank has established a pledge account with DTC through which securities may be pledged to the Federal
Reserve. All DTC bank participants are eligible to pledge securities via DTC. Non‐DTC participants can
pledge securities through a DTC bank participant. Participants can reposition collateral by logging directly
into DTC’s Participant Terminal System (PTS)/Participant Browser Service (PBS) and using DTC’s “COLL”
function. The DTC PTS/PBS system contains specific screens for repositioning assets to the Federal Reserve.
Below is the list of Federal Reserve pledge accounts:

Boston 600 Chicago 608

New York 694 St. Louis 601

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 Philadelphia 603 Minneapolis 611
Cleveland 610 Kansas City 606
Richmond 602 Dallas 617
Atlanta 609 San Francisco 618

Securities should be pledged using Federal Reserve purpose code 01.

Pledges can be made by entering a separate pledge request for each security or by using a file feed option
that allows the input of multiple pledges through a file upload feature. Repositioning instructions are
communicated between DTC and the CMS via an automated connection; therefore, there is no requirement
to contact the Federal Reserve prior to repositioning Federal Reserve collateral into or out of a Reserve
Bank’s pledge account. Questions regarding the use of DTC’s PTS/PBS system should be directed to DTC. It
should be noted that principal and interest payments on pledged securities will continue to flow to the
pledging institution.

Institutions may request an end of day extension up to 6:00 pm ET to allow for late day pledging and
withdrawing of securities. To request an extension, an institution should contact its local Reserve Bank no
later than 4:30 pm ET on the day the extension is needed. At the time the extension is requested, the
following information should be provided to the local Reserve Bank:

o Reason for extension

o The type and number of transactions (e.g. pledges,
withdrawals)
o Estimated time needed to complete processing

Institutions should be aware that late‐day pledges requiring manual review may not be processed if required
information is not readily available prior to the end of the processing day.

Clearstream Pledging Process –

Hours of Operation:
Pledge: The Federal Reserve receives a file from Clearstream once a day, no later than 1:30 p.m.
ET
Withdrawal: For same day release, requests must be submitted to Clearstream prior to 12:00 p.m. ET

Clearstream is an international central securities depository based in Luxembourg and is a principal clearing
and settlement agent for global and non‐USD securities. Pledging collateral via Clearstream requires that
the pledging institution and the Reserve Bank enter into a tri‐party pledging arrangement. At this time, only
the Federal Reserve Bank of New York has a pledging agreement in place with Clearstream. Any institution
wishing to pledge collateral via Clearstream should contact its local Reserve Bank.

Euroclear Pledging Process –

Hours of Operation:

Pledge: The Federal Reserve receives a file from Euroclear once a day, no later than 1:30 p.m.
ET
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 Withdrawal: For same day release, requests must be submitted to the Reserve Bank prior to 9:00
a.m. ET.

Euroclear is an international central securities depository based in Belgium and is a principal clearing and
settlement agent for global and non‐USD securities. Pledging collateral via Euroclear requires that the
pledging institution and the Reserve Bank enter into a tri‐party pledging arrangement. At this time, only the
Federal Reserve Banks of Boston and New York have pledging agreements in place with Euroclear. Any
institution wishing to pledge collateral via Euroclear should contact its local Reserve Bank.

Loans
Reserve Banks accept a wide range of assets as collateral. General acceptance criteria for loan portfolios can
be found below. Following the general acceptance criteria there is a detailed list of eligible asset types along
with pledging instructions and valuation information.

Acceptance Criteria for Individual Loans

1) The pledging institution must have rights in the loans that are sufficient to grant an enforceable
security interest to the Reserve Bank. The Reserve Bank must be able to obtain a perfected, first
priority security interest in the loans, free of the adverse claims of third parties, including the
claims of an insolvency official or an affiliate of the pledging institution.
2) Loans should not be subject to any regulatory or other constraint(s) that impairs their
liquidation, including but not limited to environmental law or other forms of lender liability.
3) Loans must be in readily negotiable, transferable or assignable form.
4) Loans must be payable to the pledging depository institution, unless an alternative arrangement
is approved by the Reserve Bank.
5) Notes must be stored on the pledging depository institution’s premises or at a Reserve Bank, unless
an alternative arrangement is approved by the Reserve Bank.
6) Loans must be pledged at the note level (e.g. if a drawdown under a master note is pledged, the
master note itself must also be pledged). The maturity dates and outstanding balances of all
draw downs may not exceed the maturity date and current face amount of a pledged master
note.
7) Loan participations must be clearly structured as purchase‐sale transactions and must not
contain any assignability restrictions. Participations in loans to the pledging institution's affiliates
are not acceptable.
8) Loans with any of the following characteristics are not acceptable:
a. Loans classified as Other Assets Especially Mentioned, Substandard, Doubtful or Loss, or
that are otherwise identified for management’s special attention;
b. Loans to insiders, including loans to directors, officers or principal shareholders;
c. Loans to an affiliate of the pledging depository institution
9) Loans secured by the stock or credit of the pledging institution or an affiliate are only acceptable
in limited circumstances and with the approval of the local Reserve Bank.
10) FRBs will review the pledging depository institution's internal risk rating policies to
determine acceptable risk ratings for pledged loans.
11) Loans to foreign obligors are only acceptable in limited circumstances and with the approval of
the local Reserve Bank.

Loans to Foreign Obligors Pledged as Collateral:

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Out of concern for Reserve Banks’ ability to perfect and enforce a security interest in loans to foreign
obligors pledged as collateral, Reserve Banks will no longer accept such loans as collateral unless those loans
meet criteria as described below.

Foreign obligor loans (FOL) are commercial loans or commercial real estate loans to entities that are
incorporated outside of the U.S. or whose principal place of business or main office is outside of the U.S. For
loans that rely on the strength of guarantors, the domicile of the guarantor determines the classification
(e.g., loans to U.S. shell companies that are guaranteed by foreign parents are considered foreign). Because
of the risk that a Reserve Bank may be unable to perfect or enforce its security interest in such collateral,
the Federal Reserve restricts the eligibility of pledges of FOL collateral to include only:

o loans pledged by U.S. depository institutions or

o loans pledged by foreign depository institutions chartered in the same jurisdiction
as the obligor

To pledge eligible FOL collateral, a depository institution should contact its local Reserve Bank to learn more
about how to seek a legal opinion from the relevant foreign jurisdiction. Foreign counsel will need to
interact closely with Reserve Bank counsel to ensure that the opinion addresses the Federal Reserve’s
concerns. The cost of the foreign counsel will be borne by the depository institution.

Depository institutions that participate in the Borrower‐in Custody (BIC) Loan program will be required to
report the amount and jurisdiction of all pledged FOL collateral on the annual BIC loan certification. Any
foreign obligor loan collateral discovered during a routine BIC inspection that has either not been reported
or has not received an acceptable legal opinion will be given zero value or will be removed from the BIC.
Violations of this policy could result in an institution being deemed ineligible for the BIC program.

The following loan types may be pledged through processes described below: Borrower‐in‐Custody, Third
Party Custodian, and Reserve Bank Custody arrangements. In addition, final eligibility is determined
through review and approval by the local Reserve Bank.

Asset Type Eligibility

Agricultural Loans Must not be more than 30 days past due

Commercial Loans and Leases Must not be more than 30 days past due

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 U.S. Agency Guaranteed Loans Only the guaranteed portion of the principal
balance may be pledged as a guaranteed loan.
The nonguaranteed portion must be pledged as
a non‐guaranteed loan

The guarantee must be fully transferable to the

Reserve Bank, as determined by the Reserve
Bank; generally, guarantees of the Small
Business Administration, U.S. Department of
Education, the Export Import Bank of the United
States, and the Rural Housing Service are
transferable
Commercial Real‐Estate Loans Must not be more than 30 days past due

Construction Real‐Estate Loans Must not be more than 30 days past due

Raw Land Must not be more than 30 days past due

1‐4 Family Mortgage Loans (first lien) Must not be more than 60 days past due

1‐4 Family Mortgage Loans (second lien, home Must not be more than 60 days past due
equity
Private Banking Loans Must not be more than 60 days past due

Consumer Loans – unsecured Must not be more than 60 days past due

Consumer Loans and Leases (auto, boat, etc.) Must not be more than 60 days past due

Consumer Loans – Credit Cards (prime and sub‐ Must not be more than 60 days past due
prime)
Student Loans Must not be more than 60 days past due

Loan Valuation and Margins

In general, the Federal Reserve seeks to value loan collateral at a fair market value estimate. Margins are
applied to the Federal Reserve’s fair market value estimate and are designed to account for the risk
characteristics of the pledged asset as well as the volatility of the value of the pledged asset over an
estimated liquidation period.

The Federal Reserve uses reported cash flow characteristics and proxy credit spreads to calculate a fair
market value estimate for each pledged loan. When individual loan cash flow characteristics are not
available, the Federal Reserve uses general assumptions to estimate the fair market value of the loan pool.

Margins for loan collateral are likewise based on reported cash flow characteristics. Margins are
established based on the historical volatility of risk-free rates and proxy credit spreads, measured over
typical liquidation periods.

See the Federal Reserve Discount Window & Payment System Risk Collateral Margins Table for more
information.
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Pledging Arrangements for Loans
Note: Stated processing times for all pledging processes are approximate and may vary based on volume and other constraints,
and are not guaranteed.

Borrower‐In‐Custody Arrangements (BIC)

Hours of Operation:

Pledge: Local RB business hours

Withdrawal: Local RB business hours

General Processing Time:

Pledge: Within one business day after receipt of the cover letter and schedule of collateral
for established BIC arrangements
Withdrawal: Within one business day after receipt of the withdrawal request
Revaluation: Within one business day after receipt of the cover letter and schedule of collateral

BIC arrangements may be used when an institution would like to pledge a portfolio of its customer loans and
prefers to maintain physical control of the loans either on its own premises or on the premise of an affiliate.
An institution may qualify for a BIC arrangement at the discretion of its local Reserve Bank. An institution
must maintain appropriate document‐storage facilities and have an acceptable loan recordkeeping system
capable of identifying the assets subject to the Reserve Bank's security interest. An institution must contact
its Reserve Bank to request this pledging arrangement and receive instructions.

For commercial loan portfolios an institution must submit its internal risk rating policies to its local Reserve
Bank. Reserve Bank analysts will conduct a review of the institution's internal rating system and loan‐
documentation practices. If acceptable, the Reserve Bank will rely upon the integrity of an institution's
rating system and internal credit evaluation procedures to confirm the credit quality of loans pledged. The
Reserve Bank will also use this information to determine which loans within a proposed portfolio will be
eligible to be pledged and what collateral value and margin will be assigned.

Once an institution has met all the reporting requirements of its local Reserve Bank and the BIC
arrangement has been approved, the institution must submit a cover letter and initial collateral schedule or
equivalent documentation listing current outstanding amounts for the loans, along with other pertinent
information.

Institutions are generally required to submit collateral schedules in an electronic form eligible for the
automated loan deposit process (ALD). With the ALD process, each customer loan in a collateral schedule is
recorded and valued individually. Listings can be submitted in several electronic file formats, including
Excel®, comma separated value (CSV), text and non‐imaged portable document format (PDF). Reserve Banks
also have a specified fixed‐format text file that can be used. Please see the Automated Loan Deposit page
on the Discount Window & Payment System Risk website for additional information.

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Collateral schedules that cannot be processed using ALD are referred to as group deposits. With a group
deposit, each loan pledge is recorded and valued as one aggregate amount.

After the initial deposit, an institution must submit a periodic collateral schedule that identifies assets held
under the BIC arrangement. An institution should contact its Reserve Bank to learn what specific
information to include on the collateral schedule and how frequently the schedule should be submitted.
Some types of BIC collateral may be subject to more‐ or less‐frequent updates.

Third‐Party Custodian Arrangements

Note: Stated processing times for all pledging processes are approximate and may vary based on volume and other constraints,
and are not guaranteed.

Hours of Operation:

Pledge: Local RB business hours

Withdrawal: Local RB business hours

General Processing Time:

Pledge: Within one business day after receipt of the cover letter and schedule of collateral
(assuming arrangement has been approved by the local Reserve Bank)
Withdrawal: Within one business day after receipt of the withdrawal request
Revaluation: Within one business day after receipt of the cover letter and schedule of collateral

An institution may designate a third party custodian to provide custody services for collateral pledged to a
Federal Reserve Bank. Third party custody arrangements involve an institution (borrower), another
institution that holds the assets to be pledged (custodian) and the Reserve Bank (lender). A third party
custodian must not be affiliated with a pledging institution and must be approved by the Reserve Bank prior
to any pledge of collateral. Custodians that are affiliated with the pledging institution or loan
documentation held at a records and information and management firm (RIM), (e.g. Iron Mountain) will be
considered under the Borrower‐in‐Custody pledging arrangement. In some cases, an acceptable custodian
may be an entity other than a financial institution. In all cases, however, the custodian must be in sound
financial condition and have acceptable custody controls for the assets in its possession. An institution must
contact its Reserve Bank to request this pledging arrangement and receive instructions. The custodian and
the institution will be required to complete an additional agreement found in Appendix 5 of Operating
Circular 10: Lending.

Loan collateral held by a third‐party custodian will be subject to many of the same review requirements as
loans pledged under a BIC arrangement. In addition to the custodian maintaining appropriate document‐
storage facilities, the recordkeeping system must be capable of identifying the assets subject to the Reserve
Bank's security interest and an institution’s internal risk rating policies will be assessed to determine that its
internal risk‐rating system accurately reflects the credit quality of its loan portfolio.

After the initial deposit, an institution or custodian must submit a periodic collateral schedule that identifies
assets held under a Third Party Custody arrangement. An institution should contact its Reserve Bank to learn

11
what specific information to include on the collateral schedule and how frequently to submit the schedule.
Some types of collateral may be subject to more‐ or less‐frequent updates.

Reserve Bank Custody

Hours of Operation:

Pledge: Local RB business hours

Withdrawal: Local RB business hours

General Processing Time:

Note: Stated processing times for all pledging processes are approximate and may vary based on volume and other constraints,
and are not guaranteed.

Pledge: Within one business day after receipt of the cover letter and schedule of collateral
(assuming arrangement has been approved by the local Reserve Bank)
Withdrawal: Within one business day after receipt of the withdrawal request
Revaluation: Within one business day after receipt of the cover letter and schedule of collateral

Reserve Bank custody of collateral is available for custody of tangible assets such as promissory notes.
Customer obligations (i.e. consumer and commercial loans) physically delivered to a Reserve Bank must
be in a form such that the assets may be liquidated without further action by the institution(endorsement
of pledged notes or power of attorney may be required).

As with the borrower‐in‐custody program, a cover letter and detailed collateral schedule/listing must be
provided at the time of deposit and on a periodic basis. Upon delivery, the Reserve Bank will confirm that
the assets have been received and accepted as collateral. An institution should contact its Reserve Bank
for additional information regarding pledging requirements.

After the initial deposit, an institution must submit a periodic collateral schedule (in electronic or hard‐
copy form) that identifies assets held under Reserve Bank custody. An institution should contact its
Reserve Bank to learn what specific information to include on the collateral schedule and how
frequently to submit the schedule. Some types of collateral may be subject to more‐ or less‐frequent
updates.

Access to Collateral Information

Intra‐day Collateral Balances

Institutions can view intra‐day collateral balances and activity in the Account Management Information
application (AMI) which is updated throughout the day with real‐time collateral information. AMI users at
institutions that have access to real‐time balance and risk attribute information will also have access to
collateral information.

Balances for collateral pledged for Federal Reserve and Treasury purposes can be viewed on the
“View Collateral Balances” screen in AMI under “Collateral Totals.” Collateral pledged to the Federal
Reserve is used for discount window and payment system risk purposes. Collateral pledged to the

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Treasury reflects the aggregate amount of the collateral pledged to all Treasury collateral programs.

Summary and detailed collateral activity can also be viewed intra‐day. This information is available on the
“View Collateral Balances” screen under “Collateral for FR Purposes: Summary of Activity.” Summary activity
displays increases and decreases to an institution’s collateral pledged to the Federal Reserve and rolled up
by asset type (Securities and Loans). Increases may include deposits and revaluations, and decreases may
include withdrawals and revaluations. The “Detailed Activity” screen displays institutions’ collateral activity
chronologically as of the current day. Transactions displayed include account transfers, deposits, and
withdrawals, as well as certain changes to collateral values initiated by the Reserve Banks, such as market
value updates

Finally, the aggregate value of collateral available for daylight overdraft purposes can be found on the “View
Balances” screen, with other related information, such as daylight overdraft balance, collateralized daylight
overdrafts, and uncollateralized daylight overdrafts. This information is updated throughout the day as
values change.

If intra‐day collateral information is unavailable through AMI, institutions should contact their local Reserve
Banks for collateral balances. More information on accessing collateral information through AMI can be
found in the Account Management Guide on the Federal Reserve Bank Services website.

Ex‐post Collateral Information

Information on pledged collateral and collateral transactions is available through AMI and secure e‐mail.
Institutions may download the following collateral reports from AMI:

• Statement of Collateral Holdings

• Summary Transaction Listing

AMI creates two sets of collateral reports each day per institution. After approximately 5:30 p.m. ET,
institutions may access a preliminary version of their holdings statement and transaction report. When all
collateral activities have completed for the day, which is generally well after the close of business, a final
version of the reports is available the following morning. Institutions will also have access to the final
holdings statement and transaction report for the previous 5 business days.

Collateral reports can also be received through secure e‐mail in a portable document format (PDF) at
intervals requested by the institution such as daily, weekly, or monthly. The following collateral reports are
available:

• Statement of Collateral Holdings

• Statement of Trust Receipts
• Summary Transaction Listing
• Notification of Collateral Revaluations
• Notification of Maturing Collateral

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A Statement of Collateral Holdings is generated at the end of the business day. This report lists an
institution’s collateral holdings at the CUSIP level as of the end of the current business day.

A Statement of Trust Receipts is generated on‐request. This report is intended for institutions that act as
custodians and lists securities held by the custodian bank. This report is usually produced in association
with mergers for those depositors involved in a merger.

A Summary Transaction Listing is generated at the end of each business day. The report summarizes all
transactions processed (deposits, revaluations, and withdrawals) for the day.

A Notification of Collateral Revaluations is generated on request. This report lists all securities or loan
portfolios that require a revaluation within a specified number of days.

A Notification of Maturing Collateral is generated on request. The report lists all holdings that will be
maturing within a specified timeframe (i.e. 1 month).

For delivery by secure e‐mail, institutions may designate multiple recipients and report delivery can be
customized based upon individual needs. For example, recipients can receive reports on a daily, weekly, or
monthly basis. The reports can be set up to include all collateral programs or just specific collateral
programs (i.e., Federal Reserve and Treasury Tax and Loan). Reports can also depict all collateral holdings
or have FSS holdings in a separate report.

As noted above, the e‐mail delivery of the collateral reports will be through Federal Reserve’s secure e‐ mail
services provided by ZixCorp, Inc. If the recipient is a ZixCorp customer, they will receive an email in their
native mail box from FRS‐CMS‐[email protected] with the collateral reports attached. If the recipient is not a
ZixCorp customer, they will receive an e‐mail from FRS‐CMS‐[email protected] stating that they have a
message from the FRSecure message center.

The recipient must click on the link in the e‐mail to go the FRSecure message center secure e‐mail site to pick
up the e‐mail and access the reports. At the FRSecure message center secure e‐mail site, they will be
prompted for a login ID and password. If the recipient has never logged into the FRSecure Message Center
before, they will need to create a login ID and strong password. Please note that messages on the FRSecure
message center secure e‐mail site will expire 21 days after the e‐mail delivery date.

An institution should contact their Reserve Bank's discount window staff to request e‐mail delivery of
reports.

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