Exhibit A - Acceptable Collateral
|
Security
|
Valuation Percentage
|
|||
|---|---|---|---|---|
| (A) | Ìý | Cash |
100%
|
|
| (B) | (x) | mortgage backed securities issued by Ginnie Mae | Ìý | |
| Ìý | Ìý | but with respect to either (x) or (y) excluding interest only or principal only stripped securities, securities representing residual interests in mortgage pools, or securities that are not listed on a national securities exchange or regularly quoted in a national quotation service) and in each case having a remaining maturity of: | Ìý | |
| Ìý | Ìý | (i) | less than one year |
98% |
| Ìý | Ìý | (ii) | greater than one year |
98% |
| (C) | (x) | Negotiable debt obligations issued by the Federal Home Loan Mortgage Corporation ("Freddie Mac") or the Federal Home Loan Mortgage Association ("Fannie Mae") or | Ìý | |
| Ìý | (y) | mortgage backed securities issued by Freddie Mac or Fannie Mae | Ìý | |
| Ìý | Ìý | but excluding interest only or principal only stripped securities, securities representing residual interests in mortgage pools, or securities that are not listed on a national securities exchange or regularly quoted in a national quotation service. |
98% |
|
| (D) | Ìý | Any other collateral acceptable to the Â̾ÞÈËÊÓƵ in it sole discretion. | The valuation percentage shall be determined by the Valuation Agent from time to time and in its reasonable discretion. | |
Ìý
For example, if a counterparty is required to post $1.0 million of collateral and wished to use Ginnie Mae's with five years remaining to maturity, it would be required to post $1,020,408 ($1.0 million/0.98) to satisfy the collateral requirement.
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