Common use of Disposition of MMLF Collateral Clause in Contracts

Disposition of MMLF Collateral. (a) The Reserve Bank may elect to dispose of any Item of MMLF Collateral at any time after a notice of a Specified Event with respect thereto is provided to Treasury and shall do so taking into account the maximization of the value thereof and the mitigation of the potential for a disruption of the markets affected thereby. (b) On or after the one-year anniversary of the receipt of notice of a Specified Event, with respect to any corresponding Item of MMLF Collateral still held by the Reserve Bank at that time, Treasury may elect to direct the Reserve Bank to immediately dispose of such Item of MMLF Collateral pursuant to a written notice to the Reserve Bank setting forth reasonably detailed instructions for such disposition. The Reserve Bank shall, subject to any limitations or restrictions on transfer or other applicable requirements, dispose of such Item of MMLF Collateral in accordance with such instructions.