FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

OMB NO. 1530-0017 

This Section for Official Use Only

Date (YYYY/MM/DD)_______ /____ /____

Financial Institution Name: _________________________________________

RTN:________________________________ 5902 ID: ____________________________

COLLATERAL PLEDGE AND SECURITY AGREEMENT 

This Collateral Pledge and Security Agreement (Agreement) is between 

_________________________________________________________________________________________________________ 

(Name of financial institution)

(”Depositary”), a duly organized financial institution, and the U.S. Department of the Treasury (“Treasury”). 

WHEREAS, Depositary accepts, or desires to accept, deposits of funds of the United States and/or funds subject to the 

control or regulation of the United States (“Public Money”) in connection with the performance of depositary or other 

financial services for the Government as requested by Treasury (“Services”); and 

WHEREAS, in order to permit Depositary to hold deposits of Public Money, Treasury requires Depositary to 

collateralize the amount of such deposits that exceed the limits of insurance provided by the Federal Deposit 

Insurance Corporation or the National Credit Union Administration by the pledge of, and the grant of a security 

interest in, certain Collateral as defined herein; 

NOW THEREFORE, in consideration of Treasury permitting the Depositary to accept and hold deposits of Public 

Money, and for other good and valuable consideration hereby acknowledged as received, the parties mutually agree 

as follows: 

1. Pledge of Collateral: Depositary hereby pledges to Treasury Collateral of the classes described, and under 

the terms and conditions set forth, in 31 CFR Parts 202 and 380, other relevant Treasury regulations and 

instructions, the Federal Reserve Banks’ Operating Circular No. 9, and other collateral policies and 

procedures of the Federal Reserve Banks, as each may be amended from time to time, which Collateral shall 

be in such amount as Treasury may require from time to time. Depositary agrees to maintain the pledge of 

such Collateral at all times while performing the Services. Such Collateral, and any addition thereto or 

substitution therefore, shall be deposited with Treasury or with any Federal Reserve Bank acting as 

Treasury’s fiscal agent. In the case of book-entry securities, Depositary shall cause the appropriate Federal 

Reserve Bank to make such entries on its books to identify the Collateral as being pledged to Treasury. If 

approved by Treasury or its fiscal agent, Collateral may also be held for the benefit of Treasury in a Custody 

Account with an approved third-party Custodian, and Depositary hereby pledges to Treasury the Custody 

Account, any and all investment property and security entitlements from time to time held in, by, or for the 

benefit of the Custody Account, and all proceeds thereof. 

2. Definition: The term “Collateral” as used herein means the securities and obligations, any addition thereto 

or substitution therefor, all interest, dividends, distributions and sums distributed or payable therefrom, all 

other rights and privileges incident to such securities, and all proceeds and profits of such securities and 

obligations, all of which are pledged by Depositary to Treasury. “Collateral” also includes the 

aforementioned Custody Account and any and all investment property and security entitlements from time 

to time held in, by, or for the benefit of the Custody Account, and all proceeds thereof, all of which are 
 FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

pledged by Depositary to Treasury. 

3. Grant of Security Interest: Depositary hereby grants, transfers, delivers, and assigns to Treasury a lien on 

and security interest in the Collateral as security for the timely and complete performance of the Services 

and all other obligations of the Depositary concerning deposits of Public Money arising out of any 

agreement with Treasury. Depositary agrees to take all steps requested by Treasury to create, maintain, and 

perfect Treasury’s security interest in the Collateral granted by this Agreement. 

4. Subject Public Money Deposits: The pledge and security interest granted herein shall secure not only such 

Public Money as is held by Depositary at the time of this Agreement, but also any and all Public Money 

subsequently deposited in Depositary regardless of the accounts in which such funds may be held or 

identified by Depositary. 

5. Substitution of Collateral: Depositary shall have the right at any time to seek approval of Treasury, acting 

by itself or through its fiscal agent, to substitute Collateral of equal or greater value and of eligible types. 

Depositary shall provide Treasury or its fiscal agent with a statement of the respective values of the 

Collateral to be replaced and the Collateral to be substituted. No Collateral, except for normal income and 

principal distributions (not including proceeds of maturities), may be substituted without the prior written 

approval of Treasury or its fiscal agent. Depositary acknowledges that all substituted and additional 

Collateral is subject to the pledge and security interest granted by this Agreement. 

6. Depositary Representations: Depositary represents and warrants that: 

a. It is a financial institution duly organized, validly existing, and in good standing under the laws of 

the jurisdiction of its organization and is not in violation of any laws or regulations in any respect 

of which could have any adverse effect whatsoever on the validity, performance, or enforceability 

of any of the terms of this Agreement; 

b. It has, or will have as of the time of delivery of any Collateral under this Agreement, the right, 

power, and authority to grant a security interest therein with priority over any other rights or 

interest therein; 

c. It is duly authorized, by resolution of the Board of Directors, Governing Body, or Loan Committee 

of the Depositary which is reflected in the minutes of a meeting of that body, and has full right, 

power, and authority to execute this Agreement, and to pledge and grant a security interest with 

respect to the Collateral. The resolution remains in full force and effect without modification or 

rescission and copies of the resolution and relevant portion of the minutes of said meeting are 

attached hereto as Exhibit A and made a part hereof; 

d. It is the true and legal owner of all Collateral pledged under this Agreement; 

e. The Collateral is free and clear of all liens and claims and will remain free and clear of any and all 

security interests, liens, and claims of any other person, except for the security interest herein 

granted to Treasury; 

f. No other person or entity has any right, title, or interest in the Collateral; and 
 FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

g. The Collateral has not been pledged or assigned for any other purpose. 

Depositary shall be deemed to repeat such representations and warranties with respect to any substituted 

or additional Collateral. 

7. Continuously Maintain Agreement as Official Record: Depositary agrees that it will immediately upon 

execution of this Agreement keep and continuously maintain, as part of its official records, an executed copy 

of this Agreement and such other customary writings and records sufficient to identify those securities 

which have been pledged to Treasury. 

8. Treasury’s Obligation: Depositary agrees that Treasury’s sole obligation to Depositary with respect to 

Collateral is to return or release, or cause the return or release of, the Collateral to Depositary at the 

termination, and full performance by Depositary, of its obligations with respect to all deposits of Public 

Money secured hereunder. 

9. Rights Upon Default: In the event of: 

a. Depositary’s failure to pay, when due, the whole or any part of the Public Money deposited with 

the Depositary; 

b. The failure for any reason of any federal Government entity to receive promptly funds to be 

transmitted or otherwise handled by Depositary in the performance of the Services; 

c. Any other default, failure, or breach in the observance or performance by Depositary of any of its 

obligations, duties, or requirements concerning deposits of Public Money hereunder or under any 

other agreement with Treasury; 

d. Any representation or warranty of Depositary made herein being incorrect or untrue as of the 

date hereof or any date hereafter; 

e. Any failure or suspension of active operations of Depositary, including but not limited to 

insolvency, bankruptcy, or unsatisfactory financial or safety and soundness conditions; or 

f. Depositary being closed for business by law or by proper corporate action, or a receiver, or 

conservator, or liquidator, or any other officer being appointed for the purpose of terminating the 

business of the Depositary, 

then Depositary shall be in default of this Agreement and Treasury shall have all the rights and remedies of a 

secured party under all applicable federal and state laws with respect to the Collateral, including without 

limitation the right, without prior notice or demand, through such agents as Treasury may designate for the 

purpose, to forthwith unilaterally redeem or sell the Collateral, and any addition thereto or substitution 

therefore, or any part thereof, at either public or private sale, and apply the proceeds of such redemption or 

sale, after deducting all necessary or proper expense of such redemption or sale, to the payment of Public 

Money deposited with Depositary or the repayment of Public Money received by Depositary for 

transmission or handling, or both, with Depositary to remain liable for any deficiency, and with any surplus 

remaining from the proceeds of the redemption or sale of such securities after payment or repayment in full 
 FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

has been made, to be paid to Depositary, or its receiver or conservator. 

In the event of default, Treasury shall also have the right to unilaterally direct such agents as Treasury may 

designate for the purpose to instruct any Custodian of Collateral to liquidate the Collateral held in any 

Custody Account and pay the proceeds thereof to Treasury or its agent, and to exercise any and all other 

security entitlements with respect to the Custody Account and the other Collateral, to withdraw the 

Collateral, or any part thereof, from the Custody Account and deliver such Collateral to Treasury or its agent, 

or to transfer the Collateral or any part thereof into the name of Treasury or its nominee, and ownership of 

the Collateral shall transfer to Treasury. 

Depositary authorizes the release, withdrawal, and delivery of the Collateral to Treasury upon default by 

Depositary, and authorizes such agents as Treasury may designate to perform the above tasks to rely, 

without verification, on the written statement of Treasury as to the existence of a default and to comply 

with all instructions issued by Treasury without further consent of Depositary. 

10. Incorporation by Reference: The provisions, terms, and conditions of 31 CFR Parts 202 and 380, other 

relevant Treasury regulations and instructions, the Federal Reserve Banks’ Operating Circular No. 9, and 

other collateral policies and procedures of the Federal Reserve Banks, as each may be amended from time to 

time, are incorporated by reference as if each were fully set forth herein. 

11. Successors and Assigns: This Agreement is binding upon the Depositary, its successors and assigns, and 

shall inure to Treasury’s benefit, and its successors and assigns. 

12. Modification: The provisions of this Agreement may be supplemented, amended, or modified at any time 

by agreement in writing between Depositary and Treasury, as provided by the attached resolution of 

Depositary’s Board of Directors or Loan Committee, except that Treasury retains the right to revoke this 

agreement at any time without prior notification to Depositary. 

13. Effective Date: This Agreement shall become effective on the date this Agreement is executed by Treasury 

or Treasury’s fiscal agent on its behalf, and shall continue in full force and effect until terminated by the 

Parties. 

14. Termination: This Agreement remains in effect until terminated. Depositary or Treasury may initiate the 

termination of this Agreement by sending written notice to the other party of its desire to terminate the 

Agreement. The Agreement will terminate only after Treasury confirms in writing to Depositary that 

Depositary no longer holds deposits of Public Money that are required to be collateralized. 

15. Fiscal Agent of the United States: Depositary acknowledges that Treasury has authorized the Federal 

Reserve Bank indicated below to receive this Agreement and sign on behalf of Treasury as its fiscal agent, and 

understands that the Federal Reserve Bank indicated below will only do so if Depositary’s Resolution referred 

to in Paragraph 6(c) above predates the Effective Date of this Agreement. Accordingly, the Depositary 

acknowledges that the Federal Reserve Bank may take actions on behalf of Treasury consistent with the 

purposes of this Pledge and Security Agreement.

16. Superseding Agreement: After the Effective Date, this Agreement shall supersede any prior collateral 

agreement between the parties, and the terms hereof shall apply to and be binding on all current Collateral 
 FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

deposited under any prior agreement between the parties. 

In witness whereof, the parties have executed this Agreement by the undersigned duly authorized officers of the 

parties hereto. 

FOR DEPOSITARY 

________________________________________________________ ______________________________ 

Name of Financial Institution, City, State Financial Institution ABA/RTN # 

 

_____________________________________________ 

Signature of Officer Executing Agreement 

_____________________________________________ 

Name & Title of Officer Executing Agreement 

ATTEST __________________________________ 

 Signature of Attesting Officer 

 (SEAL) 

__________________________________ 

 Name of Attesting Officer 

__________________________________ 

 Title of Attesting Officer 

FOR U.S. DEPARTMENT OF THE TREASURY 

_____________________________________________ 

Signature of Treasury or FRB Official 

_____________________________________________ 

Name & Title of Treasury or FRB Official 

_____________________________________________ 

Organization of Official 

_____________________________________________ 

Effective Date 
 FS Form 5903 Department of the Treasury | Bureau of the Fiscal Service Revised May 2015 

Previous editions of FMS Form 5903 are obsolete

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