Contingency Collateral Options

posted on Monday, November 23, 2020 in Member Services

In addition to maximizing pledged loan collateral, it is important to consider additional options for quickly pledging collateral to avoid a collateral shortfall. Collateral shortfalls can result from the regular repricing, amortization, or maturity of collateral, changes in loan eligibility or your adjusted Eligibility Factor, or a delay in your ability to meet loan listing or delivery requirements before a deadline.

1. Pledge Securities

Securities Available for Pledging

Safekeep Direct

Safekeeping Securities with FHLB Des Moines through Safekeep Direct will allow for quick pledge should the need arise.

If you do not utilize Safekeep Direct ensure that your securities custodian is on the Bank’s approved custodian list

2. Cash

You may wire cash to your FHLB Des Moines account to be placed in a time deposit. This time deposit may be used as acceptable collateral.