Exhibit 10.32

 
 
 
 
 
 
 
 
 

 
 
 
Federal Reserve Banks
Operating Circular No. 10
 
 
LENDING
 
 
Effective October 15, 2006
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

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FEDERAL RESERVE BANKS
OPERATING CIRCULAR NO. 10
Effective October 15, 2006
 
  LENDING
 
 

1.0           SCOPE................................................................................................................1

2.0           DEFINED
TERMS..............................................................................................1

3.0           ADVANCES........................................................................................................5

4.0           INTEREST...........................................................................................................5

5.0           REPAYMENT OF
ADVANCE..........................................................................5

6.0           GRANT OF SECURITY
INTEREST...............................................................6

7.0           COLLATERAL...................................................................................................6

8.0           MAINTENANCE OF LENDING
DOCUMENTS............................................9

 
9.0           REPRESENTATIONS AND
WARRANTIES..............................................10

10.0        
COVENANTS...................................................................................................11

11.0         WAIVER OF IMMUNITY; SUBMISSION TO JURISDICTION.............13

12.0         REMEDIES UPON
DEFAULT........................................................................14

13.0         INDEMNIFICATION.......................................................................................16
 
14.0         MISCELLANEOUS.........................................................................................16

15.0         AMENDMENT..................................................................................................17

16.0         NOTICE.............................................................................................................17

17.0         TERMINATION...............................................................................................18

18.0         GOVERNING
LAW.........................................................................................19

19.0         WAIVER OF JURY
TRIAL............................................................................19

20.0         STATUS OF PREVIOUS LENDING
AGREEMENT..................................19
 
 
APPENDIX 1: FINANCING STATEMENT COLLATERAL DESCRIPTION
 
APPENDIX 2: TERMS OF CONTROL AGREEMENT

APPENDIX 3: APPLICATION PACKAGE FOR U.S. BORROWERS
FORM OF LETTER OF AGREEMENT
FORM OF CERTIFICATE
FORM OF AUTHORIZING RESOLUTIONS FOR BORROWERS
FORM OF OFFICIAL OC-10 AUTHORIZATION LIST
 
APPENDIX 4: APPLICATION PACKAGE FOR BRANCHES OR AGENCIES OF NON-U.S. BORROWERS
FORM OF LETTER OF AGREEMENT
FORM OF CERTIFICATE
FORM OF AUTHORIZING RESOLUTIONS FOR BORROWERS
FORM OF OFFICIAL OC-10 AUTHORIZATION LIST
FORM OF OPINION OF FOREIGN OUTSIDE COUNSEL
FORM OF OPINION OF UNITED STATES OUTSIDE COUNSEL

APPENDIX 5: Ancillary Agreements
FORM OF AGREEMENT FOR THIRD PARTY CUSTODIAN TO HOLD COLLATERAL
 
FORM OF CORRESPONDENT CREDIT AND PAYMENT AGREEMENT

EXHIBIT 1: LETTER OF AGREEMENT TO CORRESPONDENT CREDIT AND PAYMENT AGREEMENT
 

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CREDIT AND SECURITY TERMS

1.0           SCOPE
 
 
1.1
This Operating Circular is issued by each Reserve Bank and sets forth the terms
under which an entity may, in accordance with the Federal Reserve Act and
regulations promulgated thereunder by the Board of Governors of the Federal
Reserve System, obtain Advances from, incur Obligations to, or pledge Collateral
to a Federal Reserve Bank.

 
 

2.0           DEFINED TERMS
 
 
2.1
The capitalized terms used hereafter in this Operating Circular have the
meanings defined below:

 
Account means a master account at a Reserve Bank, as defined in the Operating
Circular No. 1 issued by such Reserve Bank.
 
Advance means an extension of credit to the Borrower (not including a discount
of paper) pursuant to Regulation A, including any renewal or extension thereof.
 
Advance Repayment Amount means the amount of an Advance, plus all accrued and
unpaid interest thereon.
 
Adverse Claim has the meaning set forth in Section 9.1(d).
 
Application Package means the Application Package, substantially in the form of
Appendix 3 or 4, as appropriate, which the Borrower submitted in connection with
its agreement to this Operating Circular.
 
Bank means the Federal Reserve Bank in whose district the Borrower is located
(determined in accordance with 12 C.F.R. Section 204.3(b)), or such other
Reserve Bank with which the Borrower has entered into a borrowing relationship
under this Operating Circular.
 
Board of Governors means the Board of Governors of the Federal Reserve System.

Borrower means an entity that incurs an Obligation to the Bank.
 
Borrower-in-Custody or BIC Arrangement means an arrangement whereby the Bank
authorizes a Borrower, or an affiliate of the Borrower, to retain possession of
the Collateral, as described in Section 7 of this Operating Circular.
 
Business Day means any day the Bank is open for conducting all or substantially
all its banking functions.
 
Certificate means the certificate, substantially in the form set forth in the
appropriate Application Package, provided to the Bank by the Borrower.
 
Collateral means:
 
 
(i)
all the Borrower’s rights, title, and interest in property (wherever located,
now owned or hereafter acquired), including, but not limited to, accounts,
chattel paper, inventory, equipment, instruments, investment property, general
intangibles, documents, deposit accounts, commercial tort claims and, real
property that is (a) identified on a Collateral Schedule, (b) identified on the
books or records of a Reserve Bank as pledged to, or subject to a security
interest in favor of, the Bank or any other Reserve Bank or (c) in the
possession or control of, or maintained with, the Bank or any other Reserve Bank
including, but not limited to, investment property, but excluding any investment
property in any Unrestricted Securities Account maintained at any Reserve Bank
that the Borrower may not encumber under applicable law;

 
 
(ii)
all documents, books and records, including programs, tapes, and related
electronic data processing software, evidencing or relating to any or all of the
foregoing; and

 
 
(iii)
to the extent not otherwise included, all proceeds and products of any and all
of the foregoing and all supporting obligations given by any person with respect
to any of the foregoing, including but not limited to interest, dividends,
insurance, rents and refunds.

 
Collateral Schedule means the written, electronic or other statement(s) listing
Collateral in effect at any time.  Each statement of Collateral shall be in the
form required by the Bank and shall identify the items of Collateral with the
specificity required by the Bank.  The removal of an item from a statement of
Collateral will not be effective and will not affect the Bank's security
interest in the item unless such removal is made in accordance with this
Operating Circular and the Bank’s procedures, including prior Bank approval or
authorization.
 
Event of Default means any of the following:
 
 
(i)
the Borrower fails to repay or satisfy any Obligation when due;

 
 
(ii)
the Borrower fails to perform or observe any of its obligations or agreements
under the Lending Agreement or under any other instrument or agreement delivered
or executed in connection with the Lending Agreement or under any other
agreement with the Bank or another Reserve Bank;

 
 
(iii)
any representation or warranty made or deemed to be made by the Borrower under
or in connection with the Lending Agreement, or that is contained in any
certificate, document or financial or other statement delivered by it or in
connection with the Lending Agreement, is inaccurate in any material respect on
or as of the date made or deemed made;

 
 
(iv)
the Insolvency of the Borrower;

 
 
(v)
the Lending Agreement or any other agreement delivered or executed in connection
with the Lending Agreement ceases, for any reason, to be in full force and
effect, or any person so asserts or any security interest or lien created hereby
ceases to be enforceable or have the same effect and priority purported to be
created hereby;

 
 
(vi)
the creation of an encumbrance upon Collateral, or placement of a levy, judicial
seizure of, or an attachment upon Collateral;

 
 
(vii)
whenever the Bank deems itself insecure with respect to the financial condition
of the Borrower or the Borrower’s ability to perform its Obligations.

 
FRB Lending Documents has the meaning set forth in Section 8 of this Operating
Circular.
 
Indebtedness means the total of the Borrower’s overdrafts (whether intraday or
overnight) in its Account(s) and any penalties and charges thereon.
 
Insolvency means:
 
 
 (i)
the condition of insolvency;

 
 (ii)
that a proceeding relating to bankruptcy, insolvency, reorganization or relief
of debtors, seeking to adjudicate an entity bankrupt or insolvent or seeking
reorganization, adjustment, dissolution, liquidation or other relief with
respect to the Borrower or the Borrower's debt is commenced;

 
 
 (iii)
that an assignment for the benefit of the Borrower’s creditors occurs;

 
 (iv)
that a receiver, custodian, conservator, or the like is appointed for the
Borrower or for any of its United States or foreign branches or agencies;

 
 (v)
that the Borrower has been closed by order of its supervisory authorities, or a
public officer has been appointed to take over such entity;

 
 
 (vi)
that the Borrower ceases or refuses to make payments in the ordinary course of
business, or admits in a record its inability to pay its debt as they become
due;

 
 
 (vii)
the Borrower’s business is suspended, or any party has presented or filed a
petition for winding-up or liquidating the Borrower; or

 
 
 (viii)
any other circumstances that evince the Borrower's inability to pay its debts
when due.

 
Lending Agreement means this Operating Circular, any Collateral Schedule, each
document in the Application Package executed or furnished to the Bank by the
Borrower, and any other agreement or document executed by the Borrower in
connection with this Operating Circular, in each case as the same may be
amended, supplemented or otherwise modified from time to time.
 
Letter of Agreement means the Letter of Agreement, substantially in the form
found in Appendix 3 or 4, as appropriate, pursuant to which the Borrower agrees
to be bound by the terms of this Operating Circular.
 
Obligation, whether now existing or hereafter incurred, means:
 
 
(i)
Advance Repayment Amounts;

 

 
(ii)
Indebtedness;

 

 
(iii)
any other liabilities of the Borrower to the Bank or any other Reserve Bank,
including without limitation, any service fees, whether due or to become due;
and

 

 
(iv)
any expense the Bank or its designee(s) may incur to:

 

 
a.
obtain, preserve and/or enforce the Lending Agreement or the Bank's security
interest in Collateral and the Borrower’s Obligations under the Lending
Agreement,

 
 
b.
collect any or all of the foregoing, or

 
 
c.
assemble, transport, maintain or preserve Collateral (including, without
limitation, taxes, assessments, insurance premiums, repairs, reasonable
attorneys’ fees, rent, transportation, storage costs, and expenses of sale).

 
Regulation A means the Board of Governors' Regulation A, 12 C.F.R. part 201, as
amended and supplemented from time to time.
 
Reserve Bank means any one of the Federal Reserve Banks (including the Bank).
 
UCC means the Uniform Commercial Code.
 
Unrestricted Securities Account has the meaning set forth in Operating Circular
No. 7.
 
The following terms are used herein as defined in Articles 8 and 9 of the
UCC:  account, chattel paper, control, deposit account, documents, equipment,
financial assets, financing statement, general intangibles, instruments,
inventory, investment property, record, securities account and securities
intermediary.

3.0           ADVANCES*

 
3.1
A request for an Advance shall be made to the Bank in a form and time acceptable
to the Bank.  An Advance must be secured by Collateral acceptable to the
Bank.  Upon the Bank's request, the Borrower shall submit a written application
for an Advance.  The Bank may also require the Borrower to execute a promissory
note and/or additional relevant agreements or documents at any time with respect
to an Advance.

 
 
 3.2
The Bank's making of an Advance is subject to the terms of the Federal Reserve
Act as implemented by Regulation A.

 
 
 3.3
The Bank’s approval of a request for an Advance shall be evidenced by, and the
Advance shall be deemed made at the time of, the Bank’s record of the credit of
the amount of the Advance to an Account agreed upon by the Borrower and the
Bank.

 
4.0           INTEREST
 
 
4.1
The interest rate applicable to an Advance shall be the rate, as from time to
time established by the Bank subject to the determination of the Board of
Governors, that applies to the particular credit program described under
Regulation A under which the Bank made the Advance.  Interest on an Advance
shall accrue from the day the Advance is credited to the Account and shall be
payable at the applicable rate in effect on that day, except that if the
interest rate changes while an Advance is outstanding, the new rate shall apply
as of the day on which the rate change is effective.  Interest shall be computed
on the basis of 365 days in a year.
 

 
 4.2
If all or any portion of an Advance Repayment Amount is not paid when due
(whether by acceleration or otherwise), interest on the unpaid portion of the
Advance Repayment Amount shall be calculated at a rate 500 basis points higher
than the applicable rate then in effect until the unpaid Advance Repayment
Amount is paid in full.

5.0           REPAYMENT OF ADVANCE
 
 
5.1
The Borrower promises to pay an Advance Repayment Amount when due in actually
and finally collected funds.  An Advance Repayment Amount is immediately due and
payable

 
 
(a)
on demand;

 

 
(b)
without any demand, notice or other action:

 
 
 
 (i)
on the due date and time specified by the Bank in writing (provided that if such
date falls on a day that is not a Business Day, the due date shall be extended
to the next Business Day).  If no due date and time is specified, then an
Advance Repayment Amount is due 24 hours after the Advance was made (provided
that if such time falls on a day that is not a Business Day, the time shall be
extended to such time on the next Business Day); or

 
 
 (ii)
upon the occurrence of any Event of Default described in clause (iv), (v) or
(vii) of the definition of such term; or

 
 
(c)
at the Bank’s option, upon the occurrence of any other Event of Default; or

 

(d)
at the Bank's option, if the Borrower, in whole or in part, is acquired, merged,
dissolved, or nationalized, or sells or otherwise disposes of substantially all
of its assets, or if the Borrower is taken over in any other way by any other
person or entity.

 
 
5.2
Operating Circular No. 1 issued by the Reserve Bank maintaining the Account
where Indebtedness is incurred governs when such Indebtedness is due and
payable; provided, however, that if an Advance Repayment Amount becomes due
under Sections 5.1(a), (b)(ii), (c) or (d), all other Obligations shall become
due and payable immediately, without any demand, notice, or other action.
 

 
5.3
The Borrower waives any right to presentment, notice of dishonor, protest, and
any other notice of any kind except as expressly provided for herein.
 

 
5.4
The Borrower may prepay an Advance Repayment Amount, in whole or in part,
without penalty.
 

 
5.5
The Bank or the appropriate Reserve Bank will debit the Borrower’s Account for
the Advance Repayment Amount and all other Obligations when due.  If the
Borrower does not have an Account, the Borrower must make arrangements
satisfactory to the Bank for paying the Advance Repayment Amount prior to
requesting any Advance, such as making payment through a correspondent.

6.0           GRANT OF SECURITY INTEREST

For value received and in consideration of the Bank permitting the Borrower to
obtain Advances or incur Indebtedness, the Borrower hereby transfers and assigns
to the Bank and grants to the Bank for itself and as agent for each other
Reserve Bank to which an Obligation is or becomes owing, a continuing security
interest in and lien on the Collateral as collateral security for the timely and
complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of all Obligations.

7.0           COLLATERAL
 
 
 
7.1
The Borrower shall ensure that the Collateral meets the requirements as the Bank
may from time to time prescribe and shall deliver, hold, store or otherwise
maintain Collateral on such terms and conditions as the Bank may from time to
time prescribe.  Borrower must keep all Collateral Schedules current and updated
in accordance with the Bank's instructions.

 
 

 
7.2
The Bank may at any time request the Borrower to replace any item of Collateral
or to grant a lien and security interest in additional assets of a type and in
an amount acceptable to the Bank, and the Borrower shall promptly do so.

 
 

 
7.3
Unless otherwise specified by the Bank in writing, the Borrower shall promptly
withdraw from the Collateral Schedule:

 
 
(a)
any Collateral that has a payment of principal or interest past due, in whole or
in part, for more than 30 days (or 60 days past due for mortgage notes, and
other types of consumer debt, including student loans);

 
 

 
(b)
any Collateral that has been paid in full by the obligor; or

 
 

 
(c)
any Collateral if the obligor on such Collateral becomes insolvent, or if a
receiver, custodian, or the like is appointed for the obligor.

 
Prior to such withdrawal, however, the Borrower shall update any relevant
Collateral Schedule and pledge substitute Collateral acceptable to the Bank by
submitting an updated Collateral Schedule or otherwise pledging such Collateral
to the Bank.
 
 
7.4
Except as may be the case for book-entry securities held on a Reserve Bank’s
books pursuant to Operating Circular No. 7 issued by the Bank, the Bank has no
duty to collect any income accruing on Collateral or to preserve any rights
relating to Collateral.

 
 
7.5
The Borrower hereby:

 
 
(a)
authorizes the Bank at any time to file or record in any filing office in any
jurisdiction which the Bank determines appropriate to perfect the security
interests set forth hereunder, financing statements, and any amendments or
continuation statements related thereto without the signature of the Borrower
therein, that describes the Collateral substantially as set forth on Appendix 1
hereto, and the Borrower shall, promptly at the Bank’s request, provide any
additional information required by Article 9 of the UCC, as in effect in any
relevant jurisdiction, for the sufficiency or acceptability of any financing
statement;

 
 

 
(b)
ratifies its authorization for the Bank to have filed any financing statement,
including any  amendment or continuation statement related thereto, in any
jurisdiction, where the same has been filed prior to the date on which the
Letter of Agreement is signed by the Borrower;

 
 

 
(c)
authorizes the Bank, at any time, to take any and all other actions that may be
necessary or, in the Bank’s sole discretion, desirable to obtain, preserve,
perfect or enforce the Bank’s security interest in the Collateral;

 
 

 
(d)
authorizes the Bank to endorse or assign as the Borrower’s agent any item of
Collateral, to cause Collateral consisting of uncertificated securities to be
marked on the books of the securities issuer as pledged to the Bank or its
nominee as pledgee, and to inspect Collateral held by the Borrower and copy any
relevant records and/or documents.

 
 
7.6
If the Bank approves, the Borrower may hold certain Collateral in a BIC
Arrangement ("BIC-held Collateral") subject to the following:#

 
 
(a)
BIC-held Collateral shall be prominently identified as Pledged to the Bank and
subject exclusively to the Bank’s written instructions. At the Bank’s request,
the Borrower shall, without delay, prominently and conspicuously affix a legend
to items of BIC-held Collateral indicating that such items are subject to a
security interest in favor of the Bank.

 
 

 
(b)
The Borrower shall mark its records to show that BIC-held Collateral has been
pledged to the Bank and is subject exclusively to the Bank’s written
instructions. Any computer generated list or report containing BIC-held
Collateral must incorporate a legend indicating that such Collateral is pledged
to the Bank.

 
 

 
(c)
Upon the Bank’s request, the Borrower shall at all times segregate BIC-held
Collateral from its own assets or the assets of any other party and shall hold
Collateral in such location(s) approved by the Bank. BIC-held Collateral shall
not be removed from such location(s) without the prior written approval of the
Bank.

 
 

 
(d)
The Borrower may withdraw or replace BIC-held Collateral only with the approval
of the Bank and on terms acceptable to the Bank.

 
 

 
(e)
The Bank may from time to time notify Borrower of additional requirements on
BIC-held Collateral.  The Borrower's failure to comply with such requirements
shall disqualify the Borrower from participation in the BIC Arrangement.

 
 
7.7
With respect to any item of Collateral not delivered or transferred to the Bank
or its custodian, including BIC-held Collateral, the Borrower shall hold such
item of Collateral in trust for the Bank until the Collateral is delivered or
transferred in accordance with the Bank’s instructions.  The Borrower bears the
risk of loss for any Collateral held in the Borrower’s possession, at any
custodian, maintained in an account at a securities intermediary other than a
Reserve Bank, or in transit to or from the Bank.  The Borrower also bears the
risk of any accidental loss or damage to Collateral in the Bank’s possession to
the extent the Bank exercised reasonable care.

 
 
7.8
Unless an Event of Default occurs or the Bank expressly directs otherwise, any
proceeds, dividend, interest, rent, proceeds of redemption, and/or any other
payment received by the Borrower regarding any Collateral may be retained by the
Borrower.  If the Bank directs that any of the foregoing be paid to the Bank,
the Borrower shall remit those payments, or cause such payments to be remitted,
promptly to the Bank and, until receipt by the Bank, such payments are deemed to
be held in trust for the Bank.

 
 
7.9
The Bank is under no obligation to allow for the withdrawal of any item of
Collateral from the pledge to the Bank, or to allow the removal of any item of
Collateral from the Collateral Schedule or otherwise release its security
interest in any item of Collateral unless:

 
 
(a)
the Borrower has provided substitute Collateral acceptable to the Bank; or

 
 
(b)
the Bank has verified, in accordance with its normal customs and procedures,
that all Obligations have been unconditionally repaid in full and that the
Borrower is not currently in default under another agreement with the Bank or
any other Reserve Bank.

 
 
7.10
In order to perfect its security interest in property, whether now owned or
hereafter acquired, maintained with any other Reserve Bank including, but not
limited to, any deposit account, investment property in any Unrestricted
Securities Account, and items in the process of collection and their proceeds,
but excluding any investment property in any Unrestricted Securities Account
maintained at any Reserve Bank that the Borrower may not encumber under
applicable law, Bank will enter, or has entered, a control agreement,
substantially in the form of Appendix 2, with any other Reserve Bank with
respect to any accounts of Borrower maintained at such Reserve Banks.  Borrower
hereby agrees to and consents to be bound by the terms of any such control
agreement.   It is understood that any such control agreement creates in favor
of the Bank and for the benefit of the other Reserve Banks, a legal, valid, and
enforceable security interest, perfected by control, within the meaning of the
UCC, in Collateral described in this section.  The Bank will not exercise its
rights in such accounts under such agreement except upon the occurrence of an
Event of Default.

 
 
7.11
Unless Bank notifies the Borrower otherwise, the Borrower shall be permitted to
Transfer Collateral consisting of securities held in the Borrower's Unrestricted
Securities Account as provided for in Operating Circular No. 7.  Securities that
the Borrower Transfers shall be free and clear of any security interest of the
Bank created hereunder.  The term "Transfer" as used in this Section, has the
meaning set forth in Operating Circular No. 7.

 
8.0           MAINTENANCE OF LENDING DOCUMENTS
 
The documents specified below (“FRB Lending Documents”) must be maintained
continuously as official records of the Borrower.  The documents listed in
subparagraph (a) shall at all times be kept together in one place (in the case
of a foreign Borrower, at the office of its branch or agency in the Federal
Reserve District in which the Borrower may obtain an Advance or incur
Indebtedness), while the document listed in subparagraph (b) may be kept in any
accessible and secure location on the Borrower’s premises.  The FRB Lending
Documents mean:
 
 
(a)
a copy of the Lending Agreement; and

 
 
(b)
a current statement of outstanding Advances and Indebtedness.

9.0
REPRESENTATIONS AND WARRANTIES

 
 
9.1
The Borrower represents and warrants that:

 
 
(a)
(i) the Borrower has the power and authority, and the legal right, to make,
deliver and perform the Lending Agreement and to obtain an Advance or otherwise
incur Indebtedness; (ii) the Borrower has taken all necessary organizational
action to authorize the execution, delivery and performance of the Lending
Agreement and to authorize the obtaining of an Advance on the terms and
conditions of the Lending Agreement; (iii) no consent or authorization of,
filing with, notice to or other act by or in respect of, any governmental
authority or any other person is required in connection with the obtaining of
Advances hereunder or with the execution, delivery, performance, validity or
enforceability of the Lending Agreement; and (iv) the Lending Agreement has been
duly executed and delivered on behalf the Borrower;

 
 
(b)
the Borrower is 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 which could have any adverse effect whatsoever
upon the validity, performance or enforceability of any of the terms of the
Lending Agreement;

 
 
(c)
the Lending Agreement constitutes a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms;

 
 
(d)
the Borrower has rights in Collateral sufficient to grant an enforceable
security interest to the Bank and its rights in Collateral are free of any
assertion of a property right that would adversely affect a Reserve Bank's right
to Collateral, including but not limited to any claim, lien, security interest,
encumbrance, preference or priority arrangement or restriction on the transfer
or pledge of Collateral (an "Adverse Claim"), except as created by, or otherwise
permitted under, the Lending Agreement or by the Bank;

 
 
(e)
all information set forth on the Certificate is accurate and complete and there
has been no change in such information since the date of the Certificate;

 
 
(f)
(i) the Lending Agreement is effective to create in favor of the Bank for itself
and for the benefit of the other Reserve Banks, if applicable, a legal, valid,
and enforceable security interest in the Collateral described in the Lending
Agreement and proceeds thereof; (ii) when financing statements are filed in the
state filing offices located in the jurisdictions specified on the Certificate,
those security interests shall constitute a fully and validly perfected lien on,
and security interest in, all rights, title and interest of the Borrower in such
Collateral as to which perfection can be obtained by filing, as security for the
Obligations, in each case prior and superior in right to any other person
(except for liens that arise by operation of law); and (iii) no financing
statement or other public notice with respect to all or any part of the
Collateral is on file or of record in any public office, except such as have
been filed in favor of the Bank pursuant to the Lending Agreement, are permitted
by the Lending Agreement, or are otherwise permitted by the Bank;

 
 
(g)
no statement or information contained in the Lending Agreement or any other
document, certificate, or statement furnished by the Borrower to the Bank or any
other Reserve Bank for use in connection with the transactions contemplated by
the Lending Agreement, on and as of the date when furnished,  is untrue as to
any material fact or omits any material fact necessary to make the same not
misleading, and the representations and warranties in the Lending Agreement are
true and correct in all material respects;

 
 
(h)
the Borrower has evaluated the potential risks and liabilities accruing to the
Borrower under applicable Federal and State environmental laws, rules, and
regulations and has determined, to the best of the Borrower’s knowledge that
under applicable laws, rules, or regulations that impose environmental liability
on a creditor or lender or an owner or manager of the real property that secures
Collateral, the Borrower does not have and has not assumed any liability of any
person thereunder; and

 
(i)           no Event of Default has occurred or is continuing.
 
 
9.2
Each time the Borrower requests an Advance, incurs any Indebtedness, or grants a
security interest in any Collateral to a Reserve Bank, the Borrower is deemed to
make all of the foregoing representations and warranties on and as of the date
such Advance or Indebtedness is incurred or security granted.  Such
representations and warranties shall be true on and as of such date and shall
remain true and correct so long as the Lending Agreement remains in effect, any
Obligation remains outstanding, or any other amount is owing to the Bank.

 
10.0        COVENANTS
 
The Borrower covenants that so long as the Lending Agreement remains in effect
or any Obligation remains outstanding or any other amount is owing to the Bank:
 
 
(a)
the Borrower shall provide to the Bank any reports or statements that the Bank
requests;

 
 
(b)
the Borrower shall permit the Bank or its designee to inspect or copy any
documents or evidence in the Borrower’s possession or control relating to
Collateral and any Obligation;

 
 
(c)
except for the security interest herein granted or otherwise permitted hereunder
or by the Bank, the Borrower shall have rights in the Collateral free from any
Adverse Claim, and shall maintain the security interest created hereby as a
perfected security interest with the priority set forth in Section 9.1(f) and
shall take all actions necessary or prudent to defend against Adverse Claims;

 
 
(d)
except as otherwise permitted hereunder or by the Bank, the Borrower shall not
(i) sell or otherwise dispose of, or offer to sell or otherwise dispose of, the
Collateral or any interest therein, or (ii) pledge, mortgage, or create, or
permit the existence of any right of any person in or claim to, the Collateral
other than the security interest granted herein;

 
 
(e)
the Borrower shall pay promptly when due (or before they become delinquent) all
taxes, assessments, governmental charges, and levies imposed upon the Collateral
or any income or profits therefrom, and any claims of any kind against
Collateral;

 
 
(f)
upon the Bank’s request, the Borrower shall promptly reimburse the Bank for any
expense incurred by the Bank with respect to enforcing or administering the
Lending Agreement and any item of Collateral, including perfecting or
maintaining perfection of the Borrower’s and/or the Bank’s security interest in
Collateral, and assembling, transporting, safekeeping, managing, inspecting, or
liquidating Collateral, whether Collateral is held by the Bank, its custodian,
or the Borrower;

 
 
(g)
the Borrower shall not perform any act with respect to any Collateral that would
impair the Bank’s rights or interests therein, nor will the Borrower fail to
perform any act that would reasonably be expected to prevent such impairment or
that is necessary to preserve the Bank’s rights;

 
 
(h)
at the Bank’s request, the Borrower shall promptly execute any agreement or
document and take any other actions that the Bank deems necessary or desirable,
including but not limited to the execution and delivery of any document the Bank
deems necessary to grant, perfect or otherwise protect the Bank’s security
interest in any existing or additional Collateral;

 
 
(i)
the Borrower shall promptly notify the Bank if the Borrower is or is about to
become an  undercapitalized depository institution or a critically
undercapitalized depository institution, as such terms are defined in Regulation
A;

 
 
(j)
the Borrower shall renew or keep in full force and effect its organizational
existence or take all reasonable action to maintain all rights, privileges,
licenses and franchises necessary or desirable in the normal conduct of its
business;

 
 
(k)
without providing at least 30 days’ prior written notice to the Bank and
submitting an updated Certificate to the Bank, the Borrower shall not cause or
permit any of the information provided in the Certificate, including its
jurisdiction of organization, to become untrue;

 
 
(l)
the Borrower shall continuously maintain the FRB Lending Documents in the same
manner as it maintains all other official corporate records, and the FRB Lending
Documents shall be immediately and routinely available to any examiner
authorized to examine the Borrower;

 
 
(m)
in any BIC Arrangement, the Borrower shall provide for periodic audits of
BIC-held Collateral pledged to the Bank, shall notify the Bank immediately of
any irregularities discovered during any audits, shall certify periodically, as
determined by the Bank, that it is complying with the requirements of the BIC
Arrangement, and shall ensure risk ratings assigned to any Collateral subject to
Borrower’s internal loan ratings are accurate;

 
 
(n)
the Borrower shall promptly notify the Bank of the occurrence or impending
occurrence of any Event of Default; and

 
 
(o)
the Borrower shall promptly notify the Bank of any change in applicable law, the
regulations or policies of its chartering and/or licensing authority, or its
charter, bylaws, or other governing documents, or any legal or regulatory
process asserted against the Borrower, that materially affects or may materially
affect the Borrower’s authority or ability to lawfully perform its obligations
under the Lending Agreement.

 
11.0      WAIVER OF IMMUNITY; SUBMISSION TO JURISDICTION
 
 
11.1
If the Borrower or its property is now, or in the future becomes, entitled to
any immunity, whether characterized as sovereign or otherwise (including,
without limitation, immunity from set-off, from service of process, from
jurisdiction of any court or tribunal, from attachment in aid of execution, from
attachment prior to the entry of a judgment, or from execution upon a judgment)
in any legal proceeding in Federal or State courts in the United States of
America, or in the courts of the country where the Borrower is chartered, or in
the courts of the country in which the Borrower principally conducts its
business, then the Borrower expressly and irrevocably waives, to the maximum
extent permitted by law, any such immunity. To the extent the Borrower receives
any such entitlement in the future, the Borrower shall promptly notify the Bank
of such entitlement.

 
 
11.2
The Borrower submits in any legal action or proceeding relating to or arising
out of the Lending Agreement, or the conduct of any party with respect therefor
or for recognition and enforcement of any judgment in respect thereof, to the
nonexclusive general jurisdiction of the Federal District Court sitting where
the Bank’s head office is located and any appellate court thereof.  In the case
of a foreign Borrower, such Borrower also submits to the non-exclusive
jurisdiction of the courts of the country where the Borrower is chartered or in
which it principally conducts its business over any suit, action or proceeding
arising out of or relating to the Lending Agreement. The Borrower agrees that
service of process in any such action or proceeding may be effected by mailing a
copy thereof by registered or certified mail (or any substantially similar form
of mail), postage prepaid, to the address provided in the Letter of Agreement;
and agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction.  The Borrower irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the venue
of any such suit, action, or proceeding brought in any such court and any claim
that any such suit, action or proceeding brought in such a court has been
brought in an inconvenient forum. The Borrower also agrees that a final judgment
in any such suit, action, or proceeding brought in such court shall be
conclusive and binding upon the Borrower.  The foregoing does not diminish or
otherwise affect the Bank's rights under Section 25B of the Federal Reserve Act,
12 USC § 632.

 
12.0        REMEDIES UPON DEFAULT
 
 
12.1
Upon the occurrence of, and at any time during the continuance of, an Event of
Default, the Bank may pursue any of the following remedies, separately,
successively, or concurrently:

 
 
(a)
debit the Borrower’s Account, or cause the Borrower’s Account to be debited (in
the case of an Account at another Reserve Bank), in an amount up to the
Borrower’s unpaid Obligations;

 
 

 
(b)
set off any Obligation against any amount owed by the Bank or any other Reserve
Bank to the Borrower, whether or not such amount owed is then due and payable;

 
 

 
(c)
exercise any right of set-off or banker’s lien provided by applicable law
against the Borrower’s property in the possession or control of, or maintained
with, the Bank or any other Reserve Bank, including but not limited to items in
process of collection and their proceeds and any balance to the credit of the
Borrower with a Reserve Bank;

 
 

 
(d)
take possession of any Collateral not already in the Bank’s possession, without
demand and without legal process.  Upon the Bank’s demand, the Borrower shall
assemble and make Collateral available to the Bank as the Bank directs.  The
Borrower grants to the Bank the right, for this purpose to enter into or on any
premises where Collateral may be located; and

 
 

 
(e)
pursue any other remedy available to collect, enforce, or satisfy any
Obligation, including exercising its rights as a secured creditor to collect
income on the Collateral, or to sell, assign, transfer, lease or otherwise
dispose of Collateral whether or not Collateral is in the Bank’s possession.

 
 
12.2
If the Bank exercises its rights in Collateral upon an Event of Default:

 
 
(a)
the Bank may sell, assign, transfer, and deliver, at the Bank’s option, all or
any part of Collateral at private or public sale, at such prices as the Bank
may, in good faith, deem best, without advertisement, and the Borrower waives
notice of the time and place of the sale, except any notice that is required by
law and may not be waived;

 
 
(b)
the Bank has no obligation to prepare Collateral for sale, and the Bank may sell
Collateral and disclaim any warranties without adversely affecting the
commercial reasonableness of the sale;

 
 
(c)
the Bank has no obligation to collect from any third party or to marshal any
assets in favor of the Borrower to satisfy any Obligation; and

 
 
(d)
the Bank or another Reserve Bank may purchase any or all of Collateral and pay
for it by applying the purchase price to reduce amounts owed by the Borrower to
the Bank or any other Reserve Bank.

 
 
12.3
The Borrower appoints the Bank, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of the Borrower, to endorse, assign, transfer, and deliver Collateral
to any party, and to take any action deemed necessary or advisable by the Bank
either to protect the Bank’s interests or exercise its rights under the Lending
Agreement, including taking any action to perfect or maintain the Bank’s
security interest (including but not limited to recording an assignment of a
mortgage or filing a financing statement).  This power of attorney is coupled
with an interest and as such is irrevocable and full power of substitution is
granted to the assignee or holder.  As attorney-in-fact, the Bank may take any
lawful action to collect all sums due in connection with Collateral, the Bank
may release any Collateral, instruments or agreements securing or evidencing the
Obligations as fully as the Borrower could do if acting for itself, and the Bank
may take any action set forth in Section 7.5, but the Bank has no obligation to
take any such actions or any other action in respect of the Collateral.

 
 
12.4
The proceeds realized by the Bank upon selling or disposing of Collateral, to
the extent actually received in cash by the Bank or another Reserve Bank, will
be applied toward satisfaction of the Obligations.  The Bank shall apply such
proceeds first to any fees, other charges, penalties, indemnities, and costs and
expenses of, collection, or realizing on interests in Collateral (including
reasonable attorneys’ fees), next to accrued but unpaid interest, and last to
the unpaid principal balance.  The Bank will account to the Borrower for any
surplus amount realized upon such sale or other disposition, and the Borrower
shall remain liable for any deficiency.

 
 
12.5
No delay or failure by the Bank to exercise any right or remedy accruing upon an
Event of Default shall impair any right or remedy, waive any default or operate
as an acquiescence to the Event of Default, or affect any subsequent Event of
Default of the same or of a different nature.

 
 
12.6
On complying with the provisions of the Lending Agreement and applicable law,
the Bank is fully discharged from any liability or responsibility to any person
regarding Collateral.

 
13.0        INDEMNIFICATION
 
 
13.1
The Borrower shall indemnify the Bank and its officers, directors, employees and
agents (each, an "Indemnified Party") for any loss, claim, damage, liability,
and expense (including, without limitation, reasonable attorneys’ fees, court
costs and expenses of litigation) incurred by an Indemnified Party in the course
of or arising out of the performance of the Lending Agreement, any action
related to Collateral, or any action to which an Indemnified Party may become
subject in connection with the Bank’s exercise, enforcement or preservation of
any right or remedy granted to it under the Lending Agreement, except to the
extent that such loss, claim, damage, liability, or expense results, as
determined by a court, from the Bank’s gross negligence or willful misconduct.

 
 
13.2
The Bank will give the Borrower written notice of any claim that the Bank or any
other person may have under this indemnity.  The Borrower is not liable for any
claim that is compromised or settled by the Bank or such persons without the
Borrower’s prior written consent, provided that the Borrower responded promptly
and in the Bank’s judgment, adequately, to the Bank’s notice of such
claim.  This indemnity remains an obligation of the Borrower notwithstanding
termination of the Lending Agreement, and is binding on the Borrower’s
successors and assigns.  Upon written demand from the Bank, the Borrower shall
pay promptly amounts owed under this indemnity, free and clear of any right of
offset, counterclaim or other deduction, and the Bank’s reasonable determination
of amounts owing hereunder is binding.  If not promptly paid by the Borrower,
such obligation becomes an Obligation secured under the Lending Agreement.

 
14.0        MISCELLANEOUS
 
 
14.1
The Bank is not obligated by the Lending Agreement or otherwise to make,
increase, renew, or extend any Advance to the Borrower.

 
 
14.2
The amount of any Advance Repayment Amount and/or Obligation reflected on the
books and records of a Reserve Bank is presumptive evidence of the amounts due
and owing by the Borrower to such Reserve Bank.

 
 

 
14.3
The Borrower’s obligations under the Lending Agreement shall be performed by it
at its own cost and expense.

 
 
14.4
Unless expressly agreed otherwise by the Bank, the time zone of the Bank’s head
office shall be used to determine any deadline hereunder, including the time an
Advance Repayment Amount is due and payable.

 
 
14.5
The Bank may record telephone communications between the Bank and the Borrower
and such recordings may be submitted in evidence to any court or in any
proceeding for the purpose of establishing any matters pertinent to the Lending
Agreement.

 
 
14.6
The Bank may rely on any record used by the Borrower to endorse or pledge
Collateral to the Bank.

 
 
14.7
The Bank’s rights and remedies under the Lending Agreement are in addition to
any others agreed to by the Borrower or that may exist at law or in equity.

 
 
14.8
Any provision of the Lending Agreement that is unenforceable or invalid under
any law in any jurisdiction is ineffective to the extent of such
unenforceability or invalidity without affecting the enforceability or validity
of any other provision, and any such unenforceability or invalidity shall not
invalidate or render unenforceable such provision in any other jurisdiction.

 
 
14.9
The Lending Agreement is binding on the receivers, administrators, permitted
assignees and successors, and legal representatives of the Borrower and inures
to the benefit of the Bank, its assignees and successors.

 
 
14.10
The Bank may sell, transfer, assign or participate to any other Reserve Bank(s)
any or all of its interest in repayment of any Obligation and may purchase any
Obligation from any other Reserve Bank.  The Borrower may not assign its rights
or obligations hereunder.

 
 
14.11
The Bank is not required to provide a written advice to the Borrower for any
Advance or Advance Repayment Amount.

 
 
14.12
The Bank has no liability for acting in reliance upon any communication
(including a fax, telex, electronic communication, or similar communication)
reasonably believed by the Bank to be genuine or to be sent by an individual
acting on behalf of the Borrower.

 
 
14.13
The Section headings used herein are for convenience only and are not to affect
the construction hereof or be taken into consideration in the construction
hereof.

15.0
AMENDMENT

 
The Bank, in its sole discretion, may amend the Lending Agreement without prior
notice at any time.  The Bank shall notify the Borrower of any such amendment
and, thereafter, any pledge of Collateral, request for any Advance or incurrence
of any other Obligation shall constitute the Borrower’s agreement to such
amendment as of the effective date of such amendment.  An amendment does not
modify, except for a change in interest rate or other charges, the terms of an
outstanding Advance.
 
16.0
NOTICE

 
 
16.1
Any notice or other communication in respect of this Agreement may be given in
any manner set forth below to the addresses or numbers or in accordance with the
e-mail or electronic messaging system details provided in or pursuant to this
Agreement with respect to the receiving party (the "recipient") and will be
deemed effective as indicated:

 
 
(a)
if in writing and delivered in person or by courier, on the date it is
delivered;

 
 

 
(b)
if sent by facsimile transmission, on the date that transmission is received in
legible form (it being agreed that the burden of proving receipt will be on the
sender and will not be met by a transmission report generated by the sender's
facsimile machine);

 
 

 
(c)
if sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted;

 
 

 
(d)
if sent by electronic messaging system, on the date that electronic message is
received;

 
 

 
(e)
if sent by e-mail, on the date that e-mail is delivered; or

 
 

 
(f)
if by telephone or other oral communication, on the date that oral communication
occurred, provided that such oral communication either is confirmed promptly in
writing by at least one of the methods specified in (a) to (e) above or is
recorded,

 
unless the date of the delivery (or attempted delivery), the receipt or the
occurrence, as applicable, is not a Business Day or that communication is
delivered (or attempted), received or shall have occurred, as applicable, after
the close of business on a Business Day, in which case that communication shall
be deemed given and effective on the first following day that is a Business Day.
 
 
16.2
If sent to the Borrower, the notice must be addressed as indicated by the
Borrower in the Letter of Agreement, or as otherwise specified by the Borrower
in a record.  If sent to the Bank, the notice must be addressed to the credit
function at the Bank’s head office or as otherwise specified by the Bank.

 
17.0
TERMINATION

 
 
17.1
The Borrower may terminate its consent to be bound by the Lending Agreement by
giving written notice to the credit function at the Bank’s head office or as
otherwise specified by the Bank, so long as no Advance is then
outstanding.%  Notice of termination does not release the Borrower or affect the
Bank’s rights, remedies, powers, security interests or liens against Collateral
in existence prior to the Bank’s receipt of the notice, nor does notice of
termination affect any provision of the Lending Agreement which by its terms
survives termination of the Lending Agreement.

 
 
17.2
Upon termination, the Bank may retain Collateral until the Bank has had a
reasonable opportunity to verify, in accordance with its normal customs and
procedures, that all of the Borrower’s Obligations, contingent or otherwise, to
the Bank or any other Reserve Bank have been fully satisfied and discharged.

 
 18.0
GOVERNING LAW

 
 
18.1
The Lending Agreement, including any Advance or any other transaction entered
into pursuant thereto, is governed by the law of the State in which the Bank’s
head office is located.  The Lending Agreement is a security agreement for
purposes of the UCC, as in effect in any relevant jurisdiction, and other
applicable law.

 
 

19.0
WAIVER OF JURY TRIAL

 
THE BORROWER AND THE BANK EACH HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVE ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, COUNTERCLAIM, OR CROSS CLAIM
ARISING IN CONNECTION WITH, OUT OF, OR OTHERWISE RELATING TO THE LENDING
AGREEMENT, THE COLLATERAL, OR ANY TRANSACTION OR AGREEMENT ARISING THEREFROM OR
RELATED THERETO.
 
20.0        STATUS OF PREVIOUS LENDING AGREEMENT
 
This Operating Circular amends and restates the Bank’s Operating Circular
governing Lending dated January 2, 1998.

--------------------------------------------------------------------------------

* Although a Reserve Bank almost always extends credit in the form of an
Advance, a Reserve Bank may extend credit by discounting paper that meets the
requirements described in the Federal Reserve Act and Regulation A if the
Reserve Bank concludes that a discount more effectively would meet the needs of
the situation.  A loan in the form of a discount would be subject to a separate
agreement between the Reserve Bank and the Borrower.  Such agreement may be
based on this Circular and, if so, may vary or supplement the terms of this
Circular as appropriate.
 
# If Collateral is held by an affiliate of the Borrower, the Borrower must
comply with (or compel such affiliate's compliance with) the provisions in this
Operating Circular pertaining to BIC-held Collateral.  In addition, such
affiliate must execute an Agreement for Third Party Custodian to Hold
Collateral, the form of which is in Appendix 5.  Finally, the Bank may require
the affiliate to complete Collateral Schedules and participate or comply with
inspection and certification requirements related to the BIC-held Collateral.
For purposes of this Circular, affiliate means a parent, direct or indirect
subsidiary of the Borrower or any entity having the same parent or ultimate
parent as the Borrower.
 
% Collateral arrangements, including arrangements with securities
intermediaries, such as Euroclear or Clearstream, and third-party custody and
Borrower-in-Custody arrangements may have their own termination provisions.

--------------------------------------------------------------------------------

APPENDIX 1: FINANCING STATEMENT COLLATERAL DESCRIPTION
 
 
All accounts, chattel paper, inventory, equipment, instruments, investment
property, general intangibles, documents, and all assets, now owned or hereafter
acquired, that are identified, from time to time, by Debtor to Secured Party in
writing, by electronic means (including by CD-ROM) or by any other means agreed
by the parties, as collateral securing the obligations of Debtor to Secured
Party under a written agreement between the parties, and all proceeds thereof;
and all collateral, guarantees, letters of credit, surety bonds and other
supporting obligations pertaining to the foregoing, and all proceeds thereof.
 
 
 
 
 
 

--------------------------------------------------------------------------------

APPENDIX 2: TERMS OF CONTROL AGREEMENT
 
 
Reference is made to Operating Circular No. 10 as issued by each of the Federal
Reserve Banks, as the same may be amended, supplemented or otherwise modified
from time to time ("OC-10"; capitalized terms used but not defined herein have
the meaning assigned them in OC-10).
 
Whereas, by agreeing to OC-10, each Borrower has given the Federal Reserve Bank
with which it has agreed to OC-10 (an "OC-10 Reserve Bank"), for itself and as
agent for each other Federal Reserve Bank, a security interest in property,
whether now owned or hereafter acquired, maintained with any other Federal
Reserve Bank (an "Account Maintaining Reserve Bank") including, but not limited
to, any deposit account, investment property in any securities account, and
items in the process of collection and their proceeds (but excluding any
investment property in any Unrestricted Securities Account maintained at any
Federal Reserve Bank that the Borrower may not encumber under applicable law)
(each an "Account");
 
Whereas each OC-10 Reserve Bank would like to perfect its security interest in
each Account  now or hereafter maintained at any Account Maintaining Reserve
Bank by control, as such term is used in Articles 8 and 9 of the Uniform
Commercial Code in effect in the relevant jurisdictions; and
 
Whereas, by agreeing to OC-10, each Borrower has agreed to and consented to be
bound to the terms of this Control Agreement;
 
Now, therefore, each Account Maintaining Reserve Bank agrees with each OC-10
Reserve Bank, for itself and as agent for each other Federal Reserve Bank, that
with respect to any Borrower maintaining an Account at such Account Maintaining
Reserve Bank, it  will follow the instructions of an OC-10 Reserve Bank as to
the withdrawal or disposition of funds or securities from time to time credited
to any such Account, or as to any other matters pertaining to such Account
without further consent or instruction from Borrower, subject only to the
interest that the Account Maintaining Reserve Bank may also have in such
Account.
 
This Agreement is governed by the law of the State in which the Account
Maintaining Reserve Bank's head office is located.
 
 
FEDERAL RESERVE BANK OF ATLANTA
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF MINNEAPOLIS
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF BOSTON
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF NEW YORK
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF CHICAGO
 
By:  ________________________________
Name:
Title:
Date:
FEDERAL RESERVE BANK OF PHILADELPHIA
 
By:  ________________________________
Name:
Title:
Date:
FEDERAL RESERVE BANK OF CLEVELAND
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF RICHMOND
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF DALLAS
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF SAN FRANCISCO
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF KANSAS CITY
 
By:  ________________________________
Name:
Title:
Date:
 
FEDERAL RESERVE BANK OF ST. LOUIS
 
By:  ________________________________
Name:
Title:
Date:
 

--------------------------------------------------------------------------------

APPENDIX 3: APPLICATION PACKAGE FOR U.S. BORROWERS
 
 
U.S. Borrowers desiring capacity to request to borrow funds from their local
Federal Reserve Bank should submit the following documents, forms of which are
included in this appendix:
 
 
Letter of Agreement
Certificate
Authorizing Resolutions
Official OC-10 Authorization List
 
 
Before submitting such documentation, a Borrower should consult with its Reserve
Bank for any special instructions.
 
 
 
 
 
 
 
 

--------------------------------------------------------------------------------

FORM OF LETTER OF AGREEMENT
[Letterhead of the Borrower]

 
 
Date: ______________________________
 
Federal Reserve Bank of __________________________________
Address
City, State, Zip
 
Attention:
 
In consideration of being able to request Advances from and incur Indebtedness
to you and in consideration of your making Advances to us we agree to the
provisions of your Operating Circular No. 10, effective October 15, 2006, as
amended and supplemented from time to time thereafter (“Circular;” capitalized
terms used but not defined herein shall have the meaning specified in the
Circular).
 
[Enclosed are (1) certified copies of the Certificate, (2) certified copies of
the resolutions that you requested and (3) documents(s) containing the name,
title, and signature of those persons authorized to request Advances from and to
pledge our assets to you.]1
 
Any notices required under the Lending Agreement may be directed to the
following department(s):  [list department(s) and address(es)].

 
_____________________________________________
Full Legal Name of Borrower
 
 
By:  _________________________________________2
 
 Authorized signature(s)

 
 

 
 

______________________________________________
Name(s)

______________________________________________
Title(s)

--------------------------------------------------------------------------------

 
1 Each Borrower should contact the Bank for instructions as to whether this
paragraph and the referenced documents, forms of which are provided as part of
this Appendix 3, must be submitted.
 
2 The signatory or signatories should be authorized to sign documents on behalf
of the Borrower as provided in the Authorizing Resolutions for Borrowers
required by OC-10.
 

--------------------------------------------------------------------------------

SCHEDULE A
To Letter of Agreement
 
 
FORM OF CERTIFICATE3
 
 
The undersigned, the ____________________________ and
_____________________________ of
                                                                         
        (Title)                            
                                  (Title)
___________________________ (the “Borrower”) hereby certifies, with reference to
Operating Circular No. 10,
                (Name of Borrower)
effective as of October 15, 2006, as amended or supplemented from time to time
thereafter (“OC-10”; terms used but
not defined herein have the meaning specified therein), as agreed to by the
Borrower by Letter of Agreement
dated ____________ __, ______ to the Bank as follows:
           (Date of Letter of Agreement)
 
 
(a)
attached hereto are true, correct and complete, as of the date of this
Certificate, copies of the official
document that specifies the official name or names of the Borrower in its
jurisdiction of organization
(“Organizational Document”).

 
 
(b)
The information listed below is true and correct as of the date of this
certificate:

 

 
1.           Borrower’s current mailing address is:

 
 

 
2.           Borrower’s jurisdiction of organization is4:

 
 

 
3.           Borrower’s Organizational number is (indicate n/a if not
applicable):

 
 

 
4.           Borrower's ABA number is :

IN WITNESS WHEREOF, the undersigned has signed this Certificate on __________
__, 2____.

 
      ___________________________5
       Name:
       Title:
 
 
      ___________________________6
       Name:
       Title:
 
 

--------------------------------------------------------------------------------

 
3
Borrowers that have previously provided the documents and information requested
in this Certificate need only certify that the previously provided documents and
information have not changed.

 
4
Borrowers operating under a Federal charter (e.g., national banks or Federal
savings banks or associations) (see 12 U.S.C. §§ 22 and 1464(a), and 12 C.F.R. §
552.3), please specify the State of the Borrower’s main office or home office.

 
5
One signatory should be someone authorized to sign documents on behalf of the
Borrower as provided in the Authorizing Resolutions for Borrowers required by
OC-10.

 
6
The other signatory should be in-house or outside counsel to the Borrower.

--------------------------------------------------------------------------------

FORM OF AUTHORIZING RESOLUTIONS FOR BORROWERS
 
 
As evidenced by my signature below, I certify that the following are correct and
complete copies of the resolutions duly
adopted on ________________ at a meeting7 of
_____________________________________________________
                                   (Date)                                              
                  (Type of governing body, e.g. board of directors)
of the _________________________ (“Borrower”), a
_________________________________________________
                (Official name of the
Borrower)                                 (Commercial bank, mutual savings bank,
savings bank and loan
                                                                                                  association,
credit union, or other charter type)
duly established and operating under the laws of ______________________________,
with its head office located at
_____________________________________ in accordance with applicable law and the
Borrower's chartering documents.
I also certify that the resolutions have not been modified, remain in effect,
are not in conflict with any provisions of the
Borrower’s certificate of incorporation, bylaws, or chartering and/or licensing
statutes or requirements, and are reflected in
the minutes of the meeting at which these resolutions were approved:
 
 
1.
RESOLVED, that the Borrower is authorized to request advance(s) from, incur
indebtedness, including
overdrafts, to and pledge and grant a security interest in the Borrower’s
property, whether now owned or
hereafter acquired, to a Federal Reserve Bank.

 
 
2.
RESOLVED, that the persons with the following titles:
___________________________________________________________________________________
                                                                (Exact titles of
authorized persons)
and each of their successors in office, any ____________ of whom ____________
authorized to
                                                                             
    (one/two)                                (is/are)
(1) take each of the actions listed in paragraphs (a)-(e) immediately below and
(2) send the names, titles, and
signatures of individuals authorized to take such actions in the name and on
behalf of the Borrower:8

 

 
(a)           to borrow money from a Federal Reserve Bank on the terms and
security that such Federal Reserve
Bank requires;

 

 
(b)           to discount, rediscount, or sell (with or without the Borrower’s
agreement to repurchase) and, for any
of those purposes, to endorse and assign notes, drafts, bills of exchange,
acceptances, other bills receivable,
evidences of indebtedness, and securities, now or hereafter acquired by the
Borrower;

 
 

 
(c)           to make, execute, and deliver any application, note, agreement,
certificate, power of attorney, and
any other document that any Federal Reserve Bank requires in connection with any
transaction authorized by
this resolution;

 
 

 
(d)           to grant, assign, pledge, and transfer to any Federal Reserve Bank
security interests in any or all
property of the Borrower, whether now owned or hereafter acquired, and to
endorse, assign, deliver,
deposit, and/or pledge any of such property to any Federal Reserve Bank as
collateral to secure payment
or performance of any obligation of the Borrower to a Federal Reserve Bank; and

 
 

 
(e)           to do any and all other acts and things that may be necessary or
incidental to any transaction
authorized by the relevant resolution, or that may be designed or intended to
carry out the purpose of
such resolution.

 
3.
RESOLVED, that a Federal Reserve Bank making an extension of credit to the
Borrower is appointed as the Borrower’s attorney-in-fact for it and in its place
and stead, to endorse, assign, transfer and sell, set over and deliver
collateral pledged to such Federal Reserve Bank, and to take any other action
deemed necessary or advisable by the Federal Reserve Bank to exercise its rights
with respect to any advance or indebtedness owed by the Borrower, in its
capacity as secured party, including but not limited to accepting and endorsing
payments on loans, preparing and/or filing of any documents necessary to
perfect, protect, preserve, or release the interest of the Federal Reserve Bank
or the Borrower in such collateral, or compromising disputes or handling
insurance issues related to such collateral.  The power of attorney is coupled
with an interest and as such is irrevocable, and full power of substitution is
granted to the assignee or holder.  The Borrower ratifies any and all action
authorized herein and taken by any such Federal Reserve Bank as the Borrower’s
attorney-in-fact.  The rights, powers, and authority of the attorney-in-fact to
perform any and all act(s) whatsoever necessary remains in full force and effect
and binds the Borrower, its legal representatives, successors, and assigns until
all indebtedness of the Borrower to any such Federal Reserve Bank has been fully
satisfied and discharged.

4.
RESOLVED, that we approve and consent to be bound by the provisions of the
Federal Reserve Bank of __________’s Operating Circular No 10, effective October
15, 2006, as amended and supplemented from time to time thereafter (“OC-10”).

 
5.
RESOLVED, that the Borrower is authorized and approved to use any record (as
such term is used in OC-10) to endorse or pledge to a Reserve Bank the notes and
other obligations offered as collateral to secure payment or performance of any
obligations of the Borrower to a Reserve Bank. The record will have the full
force and effect of a manual endorsement.

 
6.
RESOLVED, that these resolutions and the powers and authorizations granted or
confirmed by them continue in effect until written notice of revocation is
received by each Reserve Bank that has relied or is relying on such resolutions
and the Borrower shall continue to be bound with respect to any outstanding
obligations and pledges to any Reserve Bank at the time the notice of revocation
is received by such Reserve Bank.

 
7.
RESOLVED, that a duly certified copy of these resolutions be furnished to each
Reserve Bank to which the Borrower applies for an advance or has an account.

 
 
IN WITNESS WHEREOF, I have hereunto subscribed my name.
 
 
_______________________________________
Signature of certifying official9
 
 
_______________________________________
Name and Title
 
 
_______________________________________
Date
 

--------------------------------------------------------------------------------

 
7
The language of this certification should be modified if the resolutions were
adopted by written consent or otherwise.

 
8
If certain persons are authorized to undertake only some of these activities,
e.g., to borrow, but not to pledge on behalf of the Borrower, this resolution
should be split to so specifically identify who is authorized to undertake which
activit(y)(ies).

 
9
The certifying official must be the secretary of the Borrower or another person
authorized to certify the statements in this document and, in any case, may not
be a person authorized in Paragraph 2.

 

--------------------------------------------------------------------------------

FORM OF OFFICIAL OC-10 AUTHORIZATION LIST

Routing (ABA) No. _____________________
Page ____ of _____
This supersedes our previous Official OC-10 Authorization List:
                    (circle:)   YES   or   NO
If neither is circled, previous list will also remain in effect.

 
Name of Borrower:
Date:
Street Address:
Telephone:

 
To the Federal Reserve Banks:  Below are the names, titles and signatures of the
individuals authorized to pledge collateral to/ request to borrow money from the
Federal Reserve Banks on behalf of the Borrower identified above.
Name and Title (printed):
Telephone No. and E-Mail Address:
Signature:
Borrow10
Pledge10
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 

Authorizing Officer (must be identified by title in Borrower's Authorizing
Resolutions):
 
Signature:________________________________
 
 _______________________________________
 (Printed Name and Title)
_______________________________________
 (Telephone)
  ______________________________________
 (E-Mail Address)
 
State of _________________________________)
County of _______________________________)
Subscribed and sworn to before me on __________,
20___, by________________________________.
 ________________________________________
  Notary Public
 
  (Notary Seal)
 

Secretary's Certification:
I, ____________________, Secretary (or Assistant
Secretary) of the above Borrower do hereby certify
that ________________________________ is a
___________________ of such Borrower.
 
Signature: ____________________________
 
_____________________________________
 (Printed Name and Title)
State of _______________________________)
County of _____________________________)
Subscribed and sworn to before me on _______,
20___, by_______________________________.
 _______________________________________
  Notary Public
 
  (Notary Seal)

--------------------------------------------------------------------------------

 
10 Check as appropriate.  For instance, check both if authorized to pledge and
to make borrowing requests on behalf of the borrower.
 

--------------------------------------------------------------------------------

APPENDIX 4: APPLICATION PACKAGE FOR BRANCHES OR AGENCIES OF NON-U.S. BORROWERS
 
 
Non-U.S. Borrowers desiring capacity to request to borrow funds from their local
Federal Reserve Bank should submit the following documents, forms of which are
included in this appendix:
 
 
Letter of Agreement
Certificate
Authorizing Resolutions
Official OC-10 Authorization List
Legal Opinion of Foreign Outside Counsel
Legal Opinion of United States Outside Counsel

 
Before submitting such documentation, a Borrower should consult with its Reserve
Bank for any special instructions.
 
 
 

--------------------------------------------------------------------------------

FORM OF LETTER OF AGREEMENT
[Letterhead of the Borrower]
 
 
 
Date: ______________________________
 
Federal Reserve Bank of __________________________________
Address
City, State, Zip
 
Attention:
 
In consideration of being able to request Advances from and incur Indebtedness
to you and in consideration of your making Advances to us through our
branch/agency located in ___________________11 and/or allowing us to incur
Indebtedness, ________________12 as a whole (and not merely its offices in the
United States of America) agrees to the provisions of your Operating Circular
No. 10, effective October 15, 2006, as amended and supplemented from time to
time thereafter (“Circular;” capitalized terms used but not defined herein shall
have the meaning specified in the Circular).
 
[Enclosed are (1) certified copies of the Certificate, (2) certified copies of
the resolutions that you requested and (3) documents(s) containing the name,
title, and signature of those persons authorized to request Advances from and to
pledge our assets to you.]13
 
Any notices required under the Lending Agreement may be directed to the
following department(s):  [list department(s) and address(es)].
 
 
_____________________________________________
Full Legal Name of Borrower12
 
 
By:  _________________________________________14
 Authorized signature(s)
 
 
______________________________________________
Name(s)

 
______________________________________________
Title(s)
 

--------------------------------------------------------------------------------

 
11
Specify the branch or agency through which Advances will be requested.

 
12
Specify the name of the institution (not the branch or agency).

 
13
Each Borrower should contact the Bank for instructions as to whether this
paragraph and the referenced documents, forms of which are provided as part of
this Appendix 4, must be submitted.

 
14
The signatory or signatories should be authorized to sign documents on behalf of
the Borrower as provided in the Authorizing Resolutions for Borrowers required
by OC-10.

 

--------------------------------------------------------------------------------

FORM OF CERTIFICATE15
 
 
The undersigned, the _______________________  and ________________________ of
                                                                          (Title)                                                        (Title)
________________________ (the “Borrower”) hereby certifies, with reference to
Operating Circular No. 10,
          (Name of Borrower)
effective as of October 15, 2006, as amended or supplemented from time to time
thereafter (“OC-10”; terms used
but not defined herein have the meaning specified therein), as agreed to by the
Borrower by Letter of Agreement
dated _____________ ___, _____ to the Bank as follows:
           (Date of Letter of Agreement)
 
(a)
attached hereto are true, correct and complete, as of the date of this
Certificate, copies of (1) the
official document that specifies the official name or names of the Borrower in
its jurisdiction
of organization (“Organizational Document”) and (2) the official filing in each
State office in
the United States in which the Borrower is doing business that authorizes the
Borrower to do
business in that State.

 
 
(b)
The information listed below is true and correct as of the date of this
certificate:

 

 
5.           Borrower’s current mailing address is:

 
 

 
6.           Borrower’s jurisdiction of organization is16:

 
 

 
7.           Borrower’s Organizational number is (indicate n/a if not
applicable):

 
 

 
8.           Borrower's ABA number, if any, is :

 
 
(c)
[Check one]:

 
□ Borrower’s name as it appears in the Organizational Document is in Standard
Roman,
 
□ Borrower’s name as it appears in the Organizational Document is not in
Standard Roman,
and the government of Borrower’s home country has official rules for
transliterating words
into Standard Roman.  Borrower’s name, transliterated according to such rules
into
Standard Roman is ____________________________.
                                     (Insert official transliterated name)
 
□ Borrower’s name as it appears in the Organizational Document is not in
Standard Roman,
and the government of Borrower’s home country does not have official rules for
transliterating
words into Standard Roman.  Borrower’s preferred transliteration of its name
into Standard
Roman is _____________________________________.
                            (Insert preferred transliterated name)
 
IN WITNESS WHEREOF, the undersigned has signed this Certificate on ________ __,
2___.
 

 
      ___________________________17
      Name:
      Title:
 

      ___________________________18
  Name:
      Title:
 

--------------------------------------------------------------------------------

 
15
Borrowers that have previously provided the documents and information requested
in this Certificate need only certify that the previously provided documents and
information have not changed.

 
16
Please specify the home State and State of the branch/agency location, as
well.  The Bank may file financing statements in the state filing office of each
such jurisdiction, as well as in the filing office in Washington, D.C.

 
17
One signatory should be someone authorized to sign documents on behalf of the
Borrower as provided in the Authorizing Resolutions for Borrowers required by
OC-10.

 
18
The other signatory should be in-house or outside counsel to the Borrower.

 

--------------------------------------------------------------------------------

FORM OF AUTHORIZING RESOLUTIONS FOR BORROWERS
 
 
As evidenced by my signature below, I certify that the following are correct and
complete copies of the resolutions
duly adopted on ____________ at a meeting19 of
_______________________________________ of the
                             
         (Date)                                         (Type of governing body,
e.g. board of directors)
_________________________ (“Borrower”), a
__________________________________________________
 (Official name of the Borrower )                               (Commercial
bank, mutual savings bank, savings bank and loan
                                                                        association,
credit union, or other charter type)
duly established and operating under the laws of _____________________________,
with its head office located
at _____________________________________ in accordance with applicable law and
the Borrower's chartering
documents.  I also certify that the resolutions have not been modified, remain
in effect, are not in conflict with any
provisions of the Borrower’s certificate of incorporation, bylaws, or chartering
and/or licensing statutes or
requirements, and are reflected in the minutes of the meeting at which these
resolutions were approved:
 
1.
RESOLVED, that the Borrower is authorized to request advance(s) from, incur
indebtedness, including
overdrafts, to and pledge and grant a security interest in the Borrower’s
property, whether now owned
or hereafter acquired, to a Federal Reserve Bank.

 
2.
RESOLVED, that the persons with the following titles:
______________________________________________________________________________
                                                      (Exact titles of
authorized persons)
and each of their successors in office, any _________ of whom _________
authorized to (1) take each of
                                                                             
(one/two)                        (is/are)
the actions listed in paragraph (a)-(e) immediately below and (2) send the
names, titles, and signatures of
individuals authorized to take such actions in the name and on behalf of the
Borrower:20

 

(a) 
to borrow money from a Federal Reserve Bank and to incur indebtedness to a
Federal Reserve
Bank on the terms and security that such Federal Reserve Bank requires;

 
 

(b) 
to discount, rediscount, or sell (with or without the Borrower’s agreement to
repurchase) and, for
any of those purposes, to endorse and assign notes, drafts, bills of exchange,
acceptances, other
bills receivable, evidences of indebtedness, and securities, now or hereafter
acquired by the Borrower;

 
 

(c) 
to make, execute, and deliver any application, note, agreement, certificate,
power of attorney, and
any other document that any Federal Reserve Bank requires in connection with any
transaction
authorized by this resolution;

 
 

(d) 
to grant, assign, pledge, and transfer to any Federal Reserve Bank security
interests in any or all
property of the Borrower, whether now owned or hereafter acquired, and to
endorse, assign, deliver,
deposit, and/or pledge any of such property to any Federal Reserve Bank as
collateral to secure
payment or performance of any obligation of the Borrower to a Federal Reserve
Bank; and

 
 

(e) 
to do any and all other acts and things that may be necessary or incidental to
any transaction
authorized by the relevant resolution, or that may be designed or intended to
carry out the
purpose of such resolution.

 
3.
RESOLVED, that a Federal Reserve Bank making an extension of credit to the
Borrower is appointed as
the Borrower’s attorney-in-fact for it and in its place and stead, to endorse,
assign, transfer and sell,
set over and deliver collateral pledged to such Federal Reserve Bank, and to
take any other action deemed
necessary or advisable by the Federal Reserve Bank to exercise its rights with
respect to any advance
or indebtedness owed by the Borrower, in its capacity as secured party,
including but not limited to
accepting and endorsing payments on loans, preparing and/or filing of any
documents necessary to
perfect, protect, preserve, or release the interest of the Federal Reserve Bank
or the Borrower in such
collateral, or compromising disputes or handling insurance issues related to
such collateral.  The power
of attorney is coupled with an interest and as such is irrevocable, and full
power of substitution is
granted to the assignee or holder.  The Borrower ratifies any and all action
authorized herein and taken
by any such Federal Reserve Bank as the Borrower’s attorney-in-fact.  The
rights, powers, and authority
of the attorney-in-fact to perform any and all act(s) whatsoever necessary
remains in full force and effect
and binds the Borrower, its legal representatives, successors, and assigns until
all indebtedness of the
Borrower to any such Federal Reserve Bank has been fully satisfied and
discharged.

 
4.
RESOLVED, that we approve and consent to be bound by the provisions of the
Federal Reserve Bank of
__________’s Operating Circular No 10, effective October 15, 2006, as amended
and supplemented from
time to time thereafter (“OC-10”).

 
5.
RESOLVED, that the Borrower is authorized and approved to use any record (as
such term is used in OC-10)
to endorse or pledge to a Reserve Bank the notes and other obligations offered
as collateral for any advance
or other indebtedness of the Borrower to a Reserve Bank. The record will have
the full force and effect of a
manual endorsement.

 
6.
RESOLVED, that these resolutions and the powers and authorizations granted or
confirmed by them
continue in effect until written notice of revocation is received by each
Reserve Bank that has relied or
is relying on such resolutions and the Borrower shall continue to be bound with
respect to any
outstanding obligations and pledges to any Reserve Bank at the time the noticeof
revocation is received
by such Reserve Bank.

 
7.
RESOLVED, that a duly certified copy of these resolutions be furnished to each
Reserve Bank to which the
Borrower applies for an advance or has an account.

 
8.
RESOLVED, that the Borrower, with respect to any Reserve Bank and the Borrower’s
obligations to any
Reserve Bank, to the maximum extent permitted by law, expressly and irrevocably
waives any immunity
that the Borrower now has or that in the future it may become entitled to,
whether characterized as
sovereign or otherwise (including, without limitation, immunity from set-off,
from services of process,
from jurisdiction of any court or tribunal, from attachment in aid of execution,
from attachment prior to
the entry of a judgment, or from execution upon a judgment), in any legal
proceeding in the United States
of America, the country where the Borrower is chartered, and the country in
which the Borrower
principally conducts its business and expressly submits to jurisdiction in
Federal or State courts in the
United Stares of America or in the courts of the Borrower’s chartering country,
or the country where the
Borrower principally conducts its business.

 
IN WITNESS WHEREOF, I have hereunto subscribed my name.
 
_______________________________________
Signature of certifying official21

_______________________________________
Name and Title
 
_______________________________________
Date
 
 
EMBASSY OF THE UNITED STATES OF AMERICA22
 
[SEAL]
 
_______________________________________
City, Country
 
 
On _________, ________________________ personally appeared before me, adequately
identified [himself/herself],
             Date        Name of official signing above
 
and, after being duly sworn by me, stated that [he/she] is the
_______________________ of
                                                                                                                                  Title
 
____________________________ whose governing body adopted the resolutions set
forth in this document and
   Official name of foreign Borrower

that [he/she] executed this document by authority of that governing body.
 
 
_______________________________________]
Signature of U.S. Consul
 
[SEAL]

--------------------------------------------------------------------------------

 
19
The language of this certification should be modified if the resolutions were
adopted by written consent or otherwise.

 
20
If certain persons are authorized to undertake only some of these activities,
e.g., to borrow, but not to pledge on behalf of the Borrower, this resolution
should be split to so specifically identify who is authorized to undertake which
activit(y)(ies).

 
21
The certifying official must be the secretary of the Borrower or another person
authorized to certify the statements in this document and, in any case, may not
be a person authorized in Paragraph 2.

 
22
If appropriate, an apostille may be substituted for this consular
certificate.  Generally, if this consular certificate is used, it must be
executed by an ambassador, a minister plenipotentiary, a minister extraordinary,
a minister resident, a charge d’affaires, a consular agent, a consul general, a
vice-consul general, a deputy consul general, a consul, a vice-consul, a deputy
consul, a consular agent, a vice-consular agent, a commercial agent, or a
vice-commercial agent of the United States of America within his or her
jurisdiction.  The seal or stamp of his or her office or the seal or stamp of
the consulate or legation to which he or she is attached must be affixed as must
the seal or stamp of the appropriate U.S. embassy.

 

--------------------------------------------------------------------------------

FORM OF OFFICIAL OC-10 AUTHORIZATION LIST

Routing (ABA) No. _____________________
Page ____ of _____
This supersedes our previous Official OC-10 Authorization List:
                    (circle:)   YES   or   NO
If neither is circled, previous list will also remain in effect.

 
Name of Borrower:
Date:
Street Address:
Telephone:

 
To the Federal Reserve Banks:  Below are the names, titles and signatures of the
individuals authorized to pledge collateral to/ request to borrow money from the
Federal Reserve Banks on behalf of the Borrower identified above.
Name and Title (printed):
Telephone No. and E-Mail Address:
Signature:
Borrow23
Pledge23
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       
 
 
 
 
 
 

Authorizing Officer (must be identified by title in Borrower's Authorizing
Resolutions):
 
Signature:________________________________
 
 _______________________________________
 (Printed Name and Title)
_______________________________________
 (Telephone)
  ______________________________________
 (E-Mail Address)
 
State of _________________________________)
County of _______________________________)
Subscribed and sworn to before me on __________,
20___, by________________________________.
 ________________________________________
  Notary Public
 
  (Notary Seal)
 

Secretary's Certification:
I, ____________________, Secretary (or Assistant
Secretary) of the above Borrower do hereby certify
that ________________________________ is a
___________________of such Borrower.
 
Signature: ____________________________
 
_____________________________________
 (Printed Name and Title)
State of _______________________________)
County of _____________________________)
Subscribed and sworn to before me on _______,
20___, by_______________________________.
 _______________________________________
  Notary Public
 
  (Notary Seal)

 

--------------------------------------------------------------------------------

 
23 Check as appropriate.  For instance, check both if authorized to pledge and
to make borrowing requests on behalf of the borrower.
 

--------------------------------------------------------------------------------

FORM OF OPINION OF FOREIGN OUTSIDE COUNSEL
[Letterhead of the Borrower’s Outside Counsel]

 
 
Date: _______________________________

Federal Reserve Bank of ___________________________________
Address
City, State, Zip
 
Attention:
 
In re: [Foreign Bank’s name]
 
In connection with the authorization for [foreign Borrower's name] (“Borrower”),
through its [city/cities] [branch/agency], to request advances from, incur
indebtedness to, and pledge collateral to any Federal Reserve Bank in the United
States of America, you have requested us to furnish you with an opinion of
counsel regarding the authority of the Borrower and its [city/cities]
[branch/agency] to engage in those activities under the laws of [chartering
jurisdiction].24
 
We are legal counsel to the Borrower in [city, country], its place of
[incorporation or chartering or formation] and in that capacity are familiar
with its affairs and the laws of [chartering jurisdiction] affecting it.
 
We are of the opinion that:
 
(1)
The Borrower, a [describe type of entity--e.g., corporation], including its
branches and agencies in the United States of America, has been duly
[incorporated/chartered/formed] and is validly existing and in good standing as
a [corporation] under the laws of [chartering jurisdiction].

 
(2)
Under the laws of [chartering jurisdiction], the Borrower, including its
branches or agencies located in the United States of America, (i) has the
[corporate] power and authority to execute and deliver the Letter of Agreement,
dated _____ __, 200_, to  your Operating Circular No.10 (“Circular”), effective
October 15, 2006, as amended and supplemented from time to time thereafter and
[list other executed agreements] (together the “Lending Agreement”), and to
obtain advances from, incur indebtedness to, and perform its obligation under
the Lending Agreement and pledge its collateral and grant security interests in
its assets to any Federal Reserve Bank, whether now owned or hereafter acquired,
as collateral security for the payment or performance of any obligation of the
Borrower to any Federal Reserve Bank and (ii) has duly authorized, executed and
delivered the Lending Agreement.25

 
(3)
The Lending Agreement constitutes the valid and legally binding obligation of
the Borrower in its entirety as a juridical entity and not merely as its
branches or agencies located in the United States of America.

 

(4)
Regarding the Borrower’s obligations to any Federal Reserve Bank, the Borrower
and its assets are entitled to
_____________________________________________________________________________________
List immunities which the Borrower’s assets may be entitled to, including
immunity from set-off, service of process, jurisdiction
_______________________________________________________________________________________
of any court or tribunal, attachment in aid of execution, attachment prior to
the entry of a judgment, or execution upon a judgment
in any legal proceeding in the United States of America or the country where the
Borrower is chartered.  The Borrower has effectively waived such
immunity/immunities it is now entitled to as well as any other immunity that, in
the future, it may become entitled to in such jurisdictions26 and has
effectively submitted to jurisdiction in the courts of its chartering country.

 
(5)
The resolutions of the governing body of the Institution, dated __________, that
authorize requesting advances from, incurring indebtedness to, and pledging and
granting security interests in the Institution's assets to any Federal Reserve
Bank, have been duly adopted.

 
(6)
The chartering jurisdiction [does] [does not] have a system for filing or
recording a security interest.  [The chartering jurisdiction has a system for
filing or recording a security interest, and a filing or recording has been made
on behalf of the Federal Reserve Banks.  That filing or recording [is not
subject to renewal][must be renewed ______________.]27

 
(7)
In any action or proceeding arising out of or relating to the Lending Agreement
in any court in [chartering jurisdiction], such court would give effect to the
governing law provisions of the Lending Agreement which provide that the Lending
Agreement shall be governed by the law of the State of ___________ or Federal
laws.  However, if a court were to hold that the Lending Agreement is governed
by, and is to be construed in accordance with the laws of [chartering
jurisdiction], the Lending Agreement would be, under such laws, enforceable
against the Borrower in its entirety as a juridical entity and not merely as its
branches or agencies created in the United States of America.

 
There are no other material issues relevant to the issues addressed by this
opinion which we wish to draw to your attention.

--------------------------------------------------------------------------------

 
24
If the foreign Borrower principally conducts its business in a jurisdiction
other than its chartering jurisdiction then the Borrower should also get an
opinion of outside counsel with respect to Paragraphs 2, 3, 4, and 6 hereto for
the jurisdiction in which the Borrower principally conducts its business.  Each
reference to the chartering jurisdiction in these paragraphs should be replaced
with a reference to the country in which the Borrower principally conducts its
business.

 
25
An opinion of counsel from a jurisdiction in which the Borrower principally
conducts its business should also address whether any office of the Borrower
licensed to operate in such jurisdiction can pledge its assets to secure an
Obligation of the Borrower to a Reserve Bank

 
26
If there are any limitations on the Borrower’s ability to waive any immunity,
please identify and discuss those limitations.

 
27
Specify how frequently the filing or recording must be renewed.

 

--------------------------------------------------------------------------------

FORM OF OPINION OF UNITED STATES OUTSIDE COUNSEL
[Letterhead of the Borrower’s United States Outside Counsel]
 
 
Date:  ____________________
 
Federal Reserve Bank of _______________________________
Address
City, State, Zip
 
Attention:

In re:  ___________________________________________
                                           Foreign bank
           ___________________________________________
                                                  City
 
You have requested our opinion on certain matters in connection with the
authorization for _______________
                                                                                                                                                                   
Foreign bank’s name
(“Borrower”), through its __________ [branch/agency], to request advances from,
incur indebtedness to, and
                                                      City
pledge and grant security interests in its assets to, any Federal Reserve Bank.
  
We are legal counsel to the _________ [branch/agency] of the Borrower and in
that capacity are familiar with
                                                         City
its affairs and the laws of ______________ and the United States of America
affecting it.28 We have
                                                                  State
investigated those laws to the extent we believe necessary to render the
opinions expressed in this letter.
  
We are of the opinion that:
 

(1) 
The Borrower, through its ___________ [branch/agency], is authorized to request
advances from,

 
                                                        City

 
incur indebtedness to, and pledge and grant security interests in its assets to,
any Federal Reserve Bank.

 
 

(2)
The Borrower and its assets are entitled
to________________________________________________

 
                                                                             List
immunities, if any, which the Borrower’s assets may be entitled to,

_______________________________________________________________________________
including immunity from set-off, service of process, jurisdiction of any court
or tribunal, attachment in aid of execution,
__________________________________________________ in any legal proceeding
brought in the
attachment prior to the entry of a judgment or execution upon a judgment.

 
Federal or State courts in the United States of America.  The Borrower has
effectively waived such
immunity/immunities it is now entitled to as well as any other immunity that, in
the future, it may become
entitled to and has effectively submitted to the jurisdiction of the United
States courts.

 
(3)
The agreement of the Borrower to the terms of your Operating Circular No. 10,
effective October 15, 2006, as
amended from time to time, is valid and binding on the Borrower.

 
In rendering our opinion, we have assumed the correctness of the opinion(s)
addressed to you dated
___________________, from ______________________________, legal counsel to the
Borrower at its
___________________________________________________ in
______________________________.
         place of incorporation or chartering/principal place of
business                                              Country

--------------------------------------------------------------------------------

 
28
If the office is a Federal branch or agency, the reference to State law should
be omitted.  Opinions of counsel must be obtained for all branches and agencies
which may seek an Advance or incur Indebtedness.

--------------------------------------------------------------------------------

APPENDIX 5: ANCILLARY AGREEMENTS
 
 
Form of Agreement for Third Party Custodian to Hold Collateral
Form of Correspondent Credit and Payment Agreement
Exhibit 1:  Form of Letter Agreement for Obtaining Advances Through
Correspondent

 
 
 
 
 
 
 
 
 
 
 
 

--------------------------------------------------------------------------------

FORM OF AGREEMENT FOR THIRD PARTY CUSTODIAN TO HOLD COLLATERAL29
 
[Third Party Custodian Letterhead]
 
 
[Date]
 
Federal Reserve Bank of ______________
Address
City, State, Zip
 
Re:  [Insert Borrower’s name](the “Borrower”)
 
We hereby acknowledge that the Borrower has entered into an agreement with you
and has granted you a first priority security interest in certain specified
assets of the Borrower and proceeds thereof (such assets and proceeds, together
with any related documentation, “Collateral”).  We further acknowledge that,
pursuant to our agreement with the Borrower, from time to time we receive and
maintain possession of certain of the Collateral, which are presently kept at
our premises located at [insert address of facilities].  We further acknowledge
that we have received and hold possession of the Collateral for your benefit
until we receive notice from you that your security interest has been
terminated.
 
We hereby waive, surrender and relinquish any rights in or to the Collateral,
including, without limitation, any security interests or liens provided by
applicable law to which we may otherwise be entitled.  We further acknowledge
and agree that we have not acquired any rights in the Collateral sufficient to
transfer an interest or grant a security interest in or to the Collateral or
will not exercise any such rights with respect to Collateral consisting of
negotiable instruments.
 
We further acknowledge that, according to the terms of your agreement with the
Borrower, you have the right to inspect the Collateral, and, upon default, the
right to remove and take possession of the Collateral.  We agree (1) to permit
you to exercise these rights and to permit you access to the Collateral in order
to exercise these rights at your request, (2) to copy you on any reports
pertaining to the Collateral that we provide to the Borrower, (3) to ignore
instructions from the Borrower at your request, and (4) to follow any other of
your instructions with regard to the Collateral to the extent the instructions
would have been within the scope of the Borrower’s power as set forth in our
agreement with the Borrower, all without first receiving the consent or
permission of the Borrower. We further agree that, at your request, all
representations, warranties and covenants, and agreements regarding access to
the Collateral or information about the Collateral, made by us in our agreement
with the Borrower shall inure to your benefit, without the consent of the
Borrower.
 
Sincerely,
 
[insert third party custodian name]
 
By:  _________________________
Name:
Title
 
Cc: [insert Borrower name]

Borrower confirms and agrees to the foregoing.
 
[insert Borrower name]

By:  ___________________________
Name:
Title:

--------------------------------------------------------------------------------

 
29 If the third-party custodian is an affiliate of the Borrower, it must execute
this Agreement.  In all cases, prior to asking its third-party custodian to sign
this agreement, a Borrower should consult with the Reserve Bank, which,
depending upon the specifics of the third-party custodial arrangement, may
require additions to or modifications of this form of agreement.

--------------------------------------------------------------------------------

FORM OF CORRESPONDENT CREDIT AND PAYMENT AGREEMENT
 
 
1.0           SCOPE
 
 
1.1
This Appendix sets forth the agreement (“Correspondent Agreement”) among the
Bank, a Borrower, and another depository institution that maintains an Account
and is designated by the Borrower as its Correspondent (“Correspondent”) under
which the Bank may make an Advance to and obtain repayment from the Borrower
through the Correspondent.

 
 

 
1.2
For the Borrower to receive an Advance under the Correspondent Agreement, the
Borrower and the Correspondent must obtain the prior approval of the Bank and
execute a letter of agreement in the form of Exhibit 1 of this Appendix.

 
 

 
1.3
The Correspondent Agreement supplements the Lending Agreement and the terms of
the Lending Agreement are incorporated herein.  Capitalized terms in the
Correspondent Agreement have the same meaning as defined in the Circular.

 
 

 
1.4
In the event of a conflict between the other provisions of the Lending Agreement
and the provisions of the Correspondent Agreement, the provisions of the
Correspondent Agreement control.  The terms of the Correspondent Agreement shall
also prevail over any inconsistent terms in any other account agreement between
the Correspondent’s Reserve Bank and the Correspondent regarding the operation
of the Correspondent’s Account.

 
2.0           ADVANCE
 
 
2.1
If the Borrower applies for an Advance, the Borrower authorizes the
Correspondent to provide any information requested by the Bank regarding the
Borrower’s credit position and any extension of credit made by the Correspondent
to the Borrower.  The Correspondent shall provide such information promptly.

 
 

 
2.2
Any credit entry made to the Correspondent’s Account by the Bank for the benefit
of the Borrower constitutes an Advance to the Borrower in accordance with the
terms of the Lending Agreement, and such Advance shall be held in trust by the
Correspondent for the Borrower and shall not be subject to any lien or right of
set-off by the Correspondent.

 
 

 
2.3
The Borrower is solely responsible for notifying the Correspondent of any
incoming credit to the Correspondent’s Account for an Advance on the day the
Advance is requested.  The Borrower’s failure to give such notice does not
affect the rights and obligations of the Bank and the Correspondent with respect
to each other under this Correspondent Agreement.

 
 3.0           NOTICE OF DEBIT AND CREDIT
 
 
3.1
The Bank shall send to the Borrower and the Correspondent an advice of any
credit or debit posted to the Correspondent’s Account made pursuant to the
Correspondent Agreement by the next Business Day following the credit or
debit.  The advice to the Correspondent shall be sent to an employee identified
by the Correspondent in Exhibit 1.  If the Correspondent does not furnish a list
of employees to the Bank, or if in the Bank’s opinion it is not feasible to
direct a notice to a named individual due to the medium used (e.g., a
computer-generated notice), then the Bank may give an advice or notice required
under this Agreement to any officer of the Correspondent.

 
 

 
3.2
Any credit or debit posted to the Correspondent’s Account by the Bank under this
Correspondent Agreement constitutes authority for the Correspondent, consistent
with applicable law, to credit or debit, respectively, the Borrower’s account on
its books for the amount of the credit or debit.

 
4.0           REPAYMENT
 
 
4.1
An Advance Repayment Amount is due in accordance with Paragraph 5.1 of the
Credit and Security Terms.  This obligation remains notwithstanding nonreceipt
of the Advance by the Borrower after the Advance is credited to the
Correspondent’s Account.

 
4.2
Any funds deposited with the Correspondent by the Borrower for the purpose of
repaying an Advance Repayment Amount are held in trust for the Bank and are not
subject to any lien or right of set-off by the Correspondent.

 
4.3
Except as otherwise agreed by the Bank in writing, the Borrower and the
Correspondent authorize the Bank, or the appropriate Reserve Bank, to debit the
Correspondent’s Account for the Advance Repayment Amount in full when the
Advance Repayment Amount is due.  The Borrower shall ensure that sufficient
funds are made available to the Correspondent to pay this amount.  Unless
otherwise agreed, the Borrower shall promptly reimburse the Correspondent for
the amount of any debit made to the Correspondent’s Account hereunder.

 
4.4
Unless the Correspondent in writing irrevocably waives all rights to contest a
debit to its Account to pay the Borrower’s Advance Repayment Amount, the
repayment is considered provisional and the Bank retains an unimpaired security
interest in Collateral Pledged by the Borrower to secure the Advance Repayment
Amount until the Correspondent is deemed to have unconditionally approved the
debit under Paragraph 5.

 
5.0           CORRESPONDENT’S APPROVAL OF A DEBIT
 
 
5.1
If, after making a good faith effort, the Correspondent has not received the
full amount of the Advance Repayment Amount from the Borrower, then the
Correspondent may instruct the Bank, up until one hour before the Advance
Repayment Amount is due, not to debit the Correspondent’s Account for the amount
that the Correspondent has not received.

 
 

 
5.2
In addition, if the date and time an Advance Repayment Amount is due is
accelerated pursuant to Paragraph 5.1 of the Credit and Security Terms and
becomes immediately payable, and if the Correspondent is not provided with
advance notice of said acceleration, then the Correspondent may instruct the
Bank to reverse the debit by giving the Bank notice before the close of Fedwire
on the day the Advance Repayment Amount becomes immediately payable.

 
5.3
Upon receiving such an instruction, the Bank will not debit the Correspondent’s
Account for the amount the Correspondent states it has not received from the
Borrower, or will reverse the debit, as the case may be.  The Bank is not
required to inquire into the basis for or validity of any such instruction
before acting upon it.

 
5.4
Upon receiving such an instruction from the Correspondent, the Advance Repayment
Amount is immediately due and payable and the Bank may exercise any remedies
available to it, including any remedies available under the Lending Agreement,
to obtain full repayment of the Advance Repayment Amount.

 
5.5
If the Correspondent fails to instruct the Bank not to debit the Correspondent’s
Account before the Advance Repayment Amount is due as provided in Paragraph 5.1,
or to reverse the debit as provided in Paragraph 5.2, the Correspondent is
deemed to have unconditionally approved the debit and the Correspondent has no
right to refuse or contest the debit.

 
5.6
If the Correspondent receives funds from the Borrower to pay the Advance
Repayment Amount after the Correspondent instructed the Bank to not debit the
Correspondent’s Account, then the Correspondent shall promptly revoke its
instruction.

 
 

6.0           MISCELLANEOUS
 
 
6.1
Unless otherwise agreed by the Bank, the time zone of the Bank’s head office is
used to determine whether any deadline set forth herein has been met.

 
6.2
No delay or failure by the Bank to exercise any right or remedy accruing upon
any Event of Default shall impair any right or remedy, waive any default or
operate as an acquiescence to the Event of Default, or affect any subsequent
default of the same or of a different nature.

 
6.3
The Bank or the Correspondent’s Reserve Bank may record telephone communications
between it and the Correspondent or the Borrower regarding any debit or credit
to the Correspondent’s Account made hereunder.

 
6.4
The Correspondent Agreement is binding on the receivers, administrators,
successors, assigns and legal representatives of the Borrower and the
Correspondent, and inures to the benefit of the Bank and its successors and
assigns.  The rights and obligations hereunder, however, may not be assigned by
the Borrower or the Correspondent without the prior written consent of the Bank.

 
7.0           AMENDMENT
 
 
7.1
The Bank, in its sole discretion, may amend this Correspondent Agreement without
prior notice at any time.  Any amendment applies only to a transaction under
this Correspondent Agreement made on or after the effective date of the
amendment.

 
8.0           NOTICE
 
 
8.1
Unless otherwise specified in the Correspondent Agreement or by the Bank, all
notices required under the Correspondent Agreement shall be:  (a) sent by
first-class mail, postage prepaid; (b) personally delivered; or (c) sent by
telecopy, facsimile, or electronic means to a number or electronic address
identified in writing by the intended recipient (and, in such case, confirmed by
prepaid, first-class mail).  If sent by the Bank, the notice must be addressed
as indicated to the Bank in writing by the Borrower or the Correspondent.  If
sent by the Borrower or the Correspondent, the notice must be addressed to the
credit function at the Bank’s head office.

 
 

 
8.2
The Borrower or the Correspondent is deemed to have delivered any notice
required hereunder when the notice is received by the credit function at the
Bank’s head office.  The Bank is deemed to have delivered any notice required
hereunder when the notice is sent.  If the notice is sent by the Bank only via
first-class mail, however, the notice is effective three days after it is
deposited in any United States postal box.

 
 9.0           TERMINATION
 
 
9.1
Any party may terminate this Correspondent Agreement by giving written notice to
the other parties.  The rights and liabilities of the parties under the
Correspondent Agreement survive any termination of it until such time as all
Advance Repayment Amounts owed by the Borrower hereunder and the Correspondent’s
obligations to the Bank under this Agreement have been satisfied in full.

 
10.0           GOVERNING LAW
 
 
10.1
The Correspondent Agreement, including any Advance or any other transaction
entered into pursuant thereto, is governed by Federal law and, to the extent not
inconsistent therewith, the law of the State in which the Bank’s head office is
located, excluding that State’s law regarding conflicts of law.

 
11.0           EFFECTIVE DATE/STATUS OF PREVIOUS AGREEMENTS
 
 
11.1
The Correspondent Agreement is effective when the Bank receives the letter of
agreement in the form of Exhibit 1 to this Appendix.  At that time, the
Correspondent Agreement supersedes any and all previous agreements, if any,
relating to a Reserve Bank making any Advance to and obtaining payment from the
Borrower through the Correspondent.

 

--------------------------------------------------------------------------------

Exhibit 1
 Letter of Agreement
To Correspondent Credit and Payment Agreement
 
EXHIBIT 1:FORM OF LETTER OF AGREEMENT TO
CORRESPONDENT CREDIT AND PAYMENT AGREEMENT [Letterhead of Depository
Institution]
 
 
Date:  _____________________________
 
Federal Reserve Bank of ____________________________
Address
City, State, Zip
 
Attention:
 
In order to request advances from you through a correspondent and in order to
make payments to you through a
correspondent, we agree to the provisions of the Correspondent Credit and
Payment Agreement, currently an
ancillary agreement appended to your Operating Circular No. 10, effective
October 15, 2006, as amended and
supplemented from time to time thereafter.  We designate
__________________________________ as the
Correspondent under that agreement.
 
 
________________________________________
Name of depository institution

 
By:   __________________________________30
         Authorized signature(s)
 
 
________________________________________
Names(s)

 
________________________________________
Title(s)

We agree to act as Correspondent for __________________________________________
and, as such, to
                           Name of depository institution
be bound by the provision of the Correspondent Credit and Payment Agreement,
currently an ancillary
agreement attached to your Operating Circular No. 10, effective October 15,
2006, as amended from time to time
("Correspondent Agreement").  Pursuant to paragraph 3.1 of the Correspondent
Agreement, we are furnishing
below a list of individuals to whom the Federal Reserve Bank of
_____________________________ may
provide an advice of credit or debit entries made under the Correspondent
Agreement.  These individuals are
also authorized to instruct the Reserve Bank not to debit our account or to
reverse a debit in accordance with
Paragraph 5 of the Correspondent Agreement. We may amend this list from time to
time.

 
_____________________________________
Name of Correspondent
 
 
By:           __________________________________
             Authorized signature(s)

  
________________________________________
Names(s)

 
________________________________________
Title(s)

 
________________________________________
Date
 
 
Individuals permitted to receive notification of credit or debit entries
described in the Correspondent Credit and
Payment Agreement and authorized to instruct the Reserve Bank not to debit the
Correspondent Account or to
reverse a debit:  [list between 3 and 5 employees]

  
Name
 
 
Title
                       

 

--------------------------------------------------------------------------------

 
30
The signatory or signatories should be authorized to sign documents on behalf of
the Borrower as provided in the Authorizing Resolutions for Borrowers required
by OC-10.