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Office of the New York State Comptroller

Collateral Guidelines and Procedures to Secure State Deposits

All State deposits are required to be collateralized in accordance with Section 105 and Section 98a of New York State Finance Law.  Securities pledged as collateral must be held at the State's Fiscal Agency JP Morgan Chase.  The Cash Management Unit in the Office of the State Comptroller must approve all securities that are pledged and substituted for collateral.

Before State money is deposited in a bank, OSC will determine the initial collateral level that must be pledged at the State's Fiscal Agent.  OSC will instruct the State's fiscal agent to open a new escrow account for the bank.  At the time of opening, the bank must provide a contact name, address, telephone number and wiring instructions to send interest paid on the securities.

The Bank must complete the Collateral/Pledge/Substitution/Release Form and provide a copy by fax to both OSC and JP Morgan Chase.  OSC will approve the transaction and authorize JP Morgan Chase to accept or release the security.  JP Morgan Chase will then act upon the authorization from OSC.