Collateral
Required Amount of Collateral
Each participating depository institution is required to pledge acceptable collateral with a total value of at least 105 percent of the amount of deposits of public funds in its pool, reduced to the extent deposits are insured by federal deposit insurance.
If pledged collateral consists of securities with a declining principal balance, the market value of the collateral pledged may not be less than 125 percent of the amount of the deposits, reduced to the extent deposits are insured by federal deposit insurance.