Common use of Required Collateral Clause in Contracts

Required Collateral. The Qualified Public Depository shall secure all public deposits held by the Qualified Public Depository by pledging to the Treasurer eligible collateral, as defined in Tennessee Code Annotated §9-4-502(12), in an amount equal to or in excess of the required collateral as defined in Tennessee Code Annotated §9-4-502(19). Any security proposed by the Qualified Public Depository to be pledged as collateral pursuant to this Agreement must be approved by the Treasurer in accordance with Section 5.b. below prior to its deposit with a trustee custodian. The Treasurer will only accept securities clearly permitted above as collateral. Further, the Treasurer may, in good faith, decline to accept securities as collateral when circumstances require in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this Agreement and the Act. The Qualified Public Depository shall furnish to the Treasurer any supporting documents of newly formed securities as may be requested by the Treasurer.