Eligible Collateral
The Seattle Bank accepts a wide range of collateral to secure our members' credit
facilities, including a variety of securities, residential and commercial real estate
loans, and government-guaranteed loans. Members qualifying as Community Financial
Institutions are also eligible to pledge small business and agricultural loans.
And in some cases, certain assets owned by a member's affiliate may be used to secure
the member's credit facility through our tri-party pledge agreement.
Collateral Arrangements
The Seattle Bank offers members several options for pledging collateral. Securities
are pledged through our convenient securities safekeeping service. Other collateral
may be pledged under the blanket pledge, listing, or physical possession collateral
arrangements.
Blanket Pledge
The most widely used collateral arrangement by our members is the blanket pledge.
Collateral information is simply downloaded from the member's call report into our
information system. Information for collateral that is not directly available from
call reports is provided periodically by the member and uploaded into our systems.
Listing
Under the listing arrangement, members periodically provide us with loan-level detail
of pledged collateral. The additional information may allow us to advance more funds
on that collateral than under the blanket pledge. This arrangement is especially
well suited to members with limited collateral or complex business structures.
Physical Possession
The physical possession collateral arrangement provides full access to the liquidity
and risk management services of the Seattle Bank for a wide range of members with
unique credit needs.Under the physical possession arrangement, members deliver the
original loan documents to the Seattle Bank for the collateral securing its advances.
Funding Capacity of Collateral
The Seattle Bank has favorable and unique borrowing capacity rates for
the individual collateral types you pledge. Depending on your collateral arrangement,
either the book value or mark-to-market value of the collateral you pledge is adjusted
to determine the total borrowing capacity for your institution.
Members can quickly and easily view their borrowing capacity, credit usage and collateral
information online by logging in to the Seattle Bank's secure, members-only website.
Information is updated every 30 minutes.
Collateral Verification
Like its members, the Seattle Bank is dedicated to operating in a safe
and sound manner and in accordance with Federal regulations. The Seattle Bank may
periodically visit your institution to review collateral securing advances. Seattle
Bank employees complete these reviews free of charge. This process not only ensures
all members that their investment in the Seattle Bank is secure, but also helps
your institution get the most from the collateral you pledge.
Collateral Verification Process
Contact a Seattle Bank business development team
member to find out how you can get the most out of your available collateral.