FS Form 5903 COLLATERAL PLEDGE AND SECURITY AGREEMENT

OMB NO. 1530-0017

This Section for Official Use Only
Date (YYYY/MM/DD)_______ /____ /____
Financial Institution Name: _________________________________________
RTN:________________________________ 5902 ID: ____________________________

COLLATERAL PLEDGE AND SECURITY AGREEMENT
This Collateral Pledge and Security Agreement (Agreement) is between
_________________________________________________________________________________________________________
(Name of financial institution)

(”Depositary”), a duly organized financial institution, and the U.S. Department of the Treasury (“Treasury”).
WHEREAS, Depositary accepts, or desires to accept, deposits of funds of the United States and/or funds subject to the
control or regulation of the United States (“Public Money”) in connection with the performance of depositary or other
financial services for the Government as requested by Treasury (“Services”); and
WHEREAS, in order to permit Depositary to hold deposits of Public Money, Treasury requires Depositary to
collateralize the amount of such deposits that exceed the limits of insurance provided by the Federal Deposit
Insurance Corporation or the National Credit Union Administration by the pledge of, and the grant of a security
interest in, certain Collateral as defined herein;
NOW THEREFORE, in consideration of Treasury permitting the Depositary to accept and hold deposits of Public
Money, and for other good and valuable consideration hereby acknowledged as received, the parties mutually agree
as follows:
1. Pledge of Collateral: Depositary hereby pledges to Treasury Collateral of the classes described, and under
the terms and conditions set forth, in 31 CFR Parts 202 and 380, other relevant Treasury regulations and
instructions, the Federal Reserve Banks’ Operating Circular No. 9, and other collateral policies and
procedures of the Federal Reserve Banks, as each may be amended from time to time, which Collateral shall
be in such amount as Treasury may require from time to time. Depositary agrees to maintain the pledge of
such Collateral at all times while performing the Services. Such Collateral, and any addition thereto or
substitution therefore, shall be deposited with Treasury or with any Federal Reserve Bank acting as
Treasury’s fiscal agent. In the case of book-entry securities, Depositary shall cause the appropriate Federal
Reserve Bank to make such entries on its books to identify the Collateral as being pledged to Treasury. If
approved by Treasury or its fiscal agent, Collateral may also be held for the benefit of Treasury in a Custody
Account with an approved third-party Custodian, and Depositary hereby pledges to Treasury the Custody
Account, any and all investment property and security entitlements from time to time held in, by, or for the
benefit of the Custody Account, and all proceeds thereof.
2. Definition: The term “Collateral” as used herein means the securities and obligations, any addition thereto
or substitution therefor, all interest, dividends, distributions and sums distributed or payable therefrom, all
other rights and privileges incident to such securities, and all proceeds and profits of such securities and
obligations, all of which are pledged by Depositary to Treasury. “Collateral” also includes the
aforementioned Custody Account and any and all investment property and security entitlements from time
to time held in, by, or for the benefit of the Custody Account, and all proceeds thereof, all of which are
FS Form 5902

Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete

pledged by Depositary to Treasury.
3. Grant of Security Interest: Depositary hereby grants, transfers, delivers, and assigns to Treasury a lien on
and security interest in the Collateral as security for the timely and complete performance of the Services
and all other obligations of the Depositary concerning deposits of Public Money arising out of any
agreement with Treasury. Depositary agrees to take all steps requested by Treasury to create, maintain, and
perfect Treasury’s security interest in the Collateral granted by this Agreement.
4. Subject Public Money Deposits: The pledge and security interest granted herein shall secure not only such
Public Money as is held by Depositary at the time of this Agreement, but also any and all Public Money
subsequently deposited in Depositary regardless of the accounts in which such funds may be held or
identified by Depositary.
5. Substitution of Collateral: Depositary shall have the right at any time to seek approval of Treasury, acting
by itself or through its fiscal agent, to substitute Collateral of equal or greater value and of eligible types.
Depositary shall provide Treasury or its fiscal agent with a statement of the respective values of the
Collateral to be replaced and the Collateral to be substituted. No Collateral, except for normal income and
principal distributions (not including proceeds of maturities), may be substituted without the prior written
approval of Treasury or its fiscal agent. Depositary acknowledges that all substituted and additional
Collateral is subject to the pledge and security interest granted by this Agreement.
6. Depositary Representations: Depositary represents and warrants that:
a. It is a financial institution duly organized, validly existing, and in good standing under the laws of
the jurisdiction of its organization and is not in violation of any laws or regulations in any respect
of which could have any adverse effect whatsoever on the validity, performance, or enforceability
of any of the terms of this Agreement;
b. It has, or will have as of the time of delivery of any Collateral under this Agreement, the right,
power, and authority to grant a security interest therein with priority over any other rights or
interest therein;
c. It is duly authorized, by resolution of the Board of Directors, Governing Body, or Loan Committee
of the Depositary which is reflected in the minutes of a meeting of that body, and has full right,
power, and authority to execute this Agreement, and to pledge and grant a security interest with
respect to the Collateral. The resolution remains in full force and effect without modification or
rescission and copies of the resolution and relevant portion of the minutes of said meeting are
attached hereto as Exhibit A and made a part hereof;
d. It is the true and legal owner of all Collateral pledged under this Agreement;
e. The Collateral is free and clear of all liens and claims and will remain free and clear of any and all
security interests, liens, and claims of any other person, except for the security interest herein
granted to Treasury;
f.
FS Form 5902

No other person or entity has any right, title, or interest in the Collateral; and
Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete

g. The Collateral has not been pledged or assigned for any other purpose.
Depositary shall be deemed to repeat such representations and warranties with respect to any substituted
or additional Collateral.
7. Continuously Maintain Agreement as Official Record: Depositary agrees that it will immediately upon
execution of this Agreement keep and continuously maintain, as part of its official records, an executed copy
of this Agreement and such other customary writings and records sufficient to identify those securities
which have been pledged to Treasury.
8. Treasury’s Obligation: Depositary agrees that Treasury’s sole obligation to Depositary with respect to
Collateral is to return or release, or cause the return or release of, the Collateral to Depositary at the
termination, and full performance by Depositary, of its obligations with respect to all deposits of Public
Money secured hereunder.
9. Rights Upon Default: In the event of:
a. Depositary’s failure to pay, when due, the whole or any part of the Public Money deposited with
the Depositary;
b. The failure for any reason of any federal Government entity to receive promptly funds to be
transmitted or otherwise handled by Depositary in the performance of the Services;
c. Any other default, failure, or breach in the observance or performance by Depositary of any of its
obligations, duties, or requirements concerning deposits of Public Money hereunder or under any
other agreement with Treasury;
d. Any representation or warranty of Depositary made herein being incorrect or untrue as of the
date hereof or any date hereafter;
e. Any failure or suspension of active operations of Depositary, including but not limited to
insolvency, bankruptcy, or unsatisfactory financial or safety and soundness conditions; or
f.

Depositary being closed for business by law or by proper corporate action, or a receiver, or
conservator, or liquidator, or any other officer being appointed for the purpose of terminating the
business of the Depositary,

then Depositary shall be in default of this Agreement and Treasury shall have all the rights and remedies of a
secured party under all applicable federal and state laws with respect to the Collateral, including without
limitation the right, without prior notice or demand, through such agents as Treasury may designate for the
purpose, to forthwith unilaterally redeem or sell the Collateral, and any addition thereto or substitution
therefore, or any part thereof, at either public or private sale, and apply the proceeds of such redemption or
sale, after deducting all necessary or proper expense of such redemption or sale, to the payment of Public
Money deposited with Depositary or the repayment of Public Money received by Depositary for
transmission or handling, or both, with Depositary to remain liable for any deficiency, and with any surplus
remaining from the proceeds of the redemption or sale of such securities after payment or repayment in full
FS Form 5902

Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete

has been made, to be paid to Depositary, or its receiver or conservator.
In the event of default, Treasury shall also have the right to unilaterally direct such agents as Treasury may
designate for the purpose to instruct any Custodian of Collateral to liquidate the Collateral held in any
Custody Account and pay the proceeds thereof to Treasury or its agent, and to exercise any and all other
security entitlements with respect to the Custody Account and the other Collateral, to withdraw the
Collateral, or any part thereof, from the Custody Account and deliver such Collateral to Treasury or its agent,
or to transfer the Collateral or any part thereof into the name of Treasury or its nominee, and ownership of
the Collateral shall transfer to Treasury.
Depositary authorizes the release, withdrawal, and delivery of the Collateral to Treasury upon default by
Depositary, and authorizes such agents as Treasury may designate to perform the above tasks to rely,
without verification, on the written statement of Treasury as to the existence of a default and to comply
with all instructions issued by Treasury without further consent of Depositary.
10. Incorporation by Reference: The provisions, terms, and conditions of 31 CFR Parts 202 and 380, other
relevant Treasury regulations and instructions, the Federal Reserve Banks’ Operating Circular No. 9, and
other collateral policies and procedures of the Federal Reserve Banks, as each may be amended from time to
time, are incorporated by reference as if each were fully set forth herein.
11. Successors and Assigns: This Agreement is binding upon the Depositary, its successors and assigns, and
shall inure to Treasury’s benefit, and its successors and assigns.
12. Modification: The provisions of this Agreement may be supplemented, amended, or modified at any time
by agreement in writing between Depositary and Treasury, as provided by the attached resolution of
Depositary’s Board of Directors or Loan Committee, except that Treasury retains the right to revoke this
agreement at any time without prior notification to Depositary.
13. Effective Date: This Agreement shall become effective on the date this Agreement is executed by Treasury
or Treasury’s fiscal agent on its behalf, and shall continue in full force and effect until terminated by the
Parties.
14. Termination: This Agreement remains in effect until terminated. Depositary or Treasury may initiate the
termination of this Agreement by sending written notice to the other party of its desire to terminate the
Agreement. The Agreement will terminate only after Treasury confirms in writing to Depositary that
Depositary no longer holds deposits of Public Money that are required to be collateralized.
15. Fiscal Agent of the United States: Depositary acknowledges that Treasury has authorized the Federal
Reserve Bank indicated below to receive this Agreement and sign on behalf of Treasury as its fiscal agent, and
understands that the Federal Reserve Bank indicated below will only do so if Depositary’s Resolution referred
to in Paragraph 6(c) above predates the Effective Date of this Agreement. Accordingly, the Depositary
acknowledges that the Federal Reserve Bank may take actions on behalf of Treasury consistent with the
purposes of this Pledge and Security Agreement.
16. Superseding Agreement: After the Effective Date, this Agreement shall supersede any prior collateral
agreement between the parties, and the terms hereof shall apply to and be binding on all current Collateral

FS Form 5902

Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete

deposited under any prior agreement between the parties.
In witness whereof, the parties have executed this Agreement by the undersigned duly authorized officers of the
parties hereto.

FOR DEPOSITARY
________________________________________________________
Name of Financial Institution, City, State

______________________________
Financial Institution ABA/RTN #

_____________________________________________
Signature of Officer Executing Agreement
_____________________________________________
Name & Title of Officer Executing Agreement

(SEAL)

ATTEST __________________________________
Signature of Attesting Officer
__________________________________
Name of Attesting Officer
__________________________________
Title of Attesting Officer

FOR U.S. DEPARTMENT OF THE TREASURY
_____________________________________________
Signature of Treasury or FRB Official
_____________________________________________
Name & Title of Treasury or FRB Official
_____________________________________________
Organization of Official
_____________________________________________
Effective Date

FS Form 5902

Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete

PAPERWORK REDUCTION ACT NOTICE
We estimate it will take you about 15 minutes to complete this form. However, you are not required to provide
information requested unless a valid OMB control number is displayed on the form. Any comments or suggestions
regarding this form should be sent to the Bureau of the Fiscal Service, Forms Management Officer, Parkersburg, WV
26106-1328.

FS Form 5902

Department of the Treasury | Bureau of the Fiscal Service

Revised May 2015
Previous editions of FMS Form 5902 are obsolete