Document:

Advances, Security and Deposit Agreement

 Exhibit 10.24 

 

			
	
 

	  	1501 Fourth Ave, Ste. 1900, Seattle, WA 98101-1693 206.340.2300 tel 206.340.2485 fax www.fhlbsea.com

 Advances, Security and Deposit Agreement 
  

	
	This Advances, Security and Deposit Agreement (“Agreement”), dated as of             June 20,
2004             is entered 
	                          
                                         
   (Date of Agreement)
	between HomeStreet Bank having its principal place of business at
	                (Full Corporate Name of Customer)
	            601 Union St., Ste 2000, Seattle,
98101             (“Customer”) and the Federal Home Loan Bank of
	(Full Address of Customer’s Executive Offices)
	Seattle, 1501 Fourth Avenue, Suite 1900, Seattle, WA 98101 (“Seattle Bank”).

 RECITALS 
 Whereas, Customer is a Member of Seattle Bank and desires from time to time to
apply for extensions of credit, deposit accounts and other services from Seattle Bank in accordance with the terms and conditions of this Agreement; and 
 Whereas, Seattle Bank requires that all existing and future indebtedness of Customer to Seattle Bank be secured pursuant to this Agreement. 
 AGREEMENT 
 NOW THEREFORE, Customer and Seattle Bank agree as follows: 

Article I. Definitions 

Section 1.1 Definitions As used in this Agreement, the following terms will have the following meanings: 

 

	1.1.1	“Account” or “Accounts” means Customer’s deposit account(s) with Seattle Bank, including demand and time deposit accounts.

  

	1.1.2	“Act” means the Federal Home Loan Bank Act, as amended from time to time. 

 

	1.1.3	“Advance” or “Advances” means any loans heretofore, now or hereafter made to Customer by Seattle Bank. 

 

	1.1.4	“Advance Master Application” means a writing executed by Customer and accepted by Seattle Bank, in form and content satisfactory to Seattle Bank, under which
Customer may make Requests from time to time to receive Advances, subject to the terms of this Agreement, the Seattle Bank’s Credit Policy, the Act and the Regulations. 

 

	1.1.5	“Advances Note” means any promissory note executed by Customer and accepted by Seattle Bank, in form and content satisfactory to Seattle Bank, relating to
Advances or Other Credit Accommodations. 

  

	1.1.6	“Advance Confirmation Advice” means a writing or an electronic transmission issued at any time by Seattle Bank, in form and content satisfactory to Seattle
Bank, confirming particular terms of an Advance made at the Request of Customer. 

  

	1.1.7	“Borrowing Capacity” means the maximum amount of Advances, Commitments and Other Credit Accommodations which Borrower may have outstanding at any time.
Borrowing Capacity is limited by the Act and Regulations, the Stock Ownership Requirement and Collateral Maintenance Requirement of the Credit Policy, and by Customer’s creditworthiness and the quality of Customer’s Eligible Collateral, as
determined by Seattle Bank from time to time. 

  

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	1.1.8	“Capital Plan” means the Capital Plan of the Federal Home Loan Bank of Seattle, adopted March 5, 2002, as amended November 22, 2002 and as hereafter
amended. 

  

	1.1.9	“Capital Stock” means all of Customer’s capital stock in Seattle Bank. 

 

	1.1.10	“Collateral” means all property, including the proceeds thereof, heretofore, now or hereafter assigned, transferred or pledged to Seattle Bank by Customer as
security for Indebtedness. 

  

	1.1.11	“Collateral Coverage Factor” means the percentage of value, as determined by Seattle Bank from time to time, of various types of Eligible Collateral which
will support the aggregate amount of all outstanding Advances, Commitments or Other Credit Accommodations made to Customer against such Eligible Collateral. 

 

	1.1.12	“Collateral Manual” means the Collateral Manual of the Seattle Bank, as published and revised by the Seattle Bank from time to time. 

 

	1.1.13	“Collateral Maintenance Requirement” means the minimum level of aggregate Eligible Collateral, discounted by applicable Collateral Coverage Factors, which
Customer must pledge to Seattle Bank, and maintain at or above such minimum level, to secure Customer’s outstanding Advances, Commitments or Other Credit Accommodations, as determined by Seattle Bank from time to time. 

 

	1.1.14	“Commitment” means any written agreement under which Seattle Bank is contractually obligated to make Advances to Customer, or payments on behalf of or for the
account of Customer, at a future date, irrespective of whether Seattle Bank’s obligation under such agreement is contingent upon the occurrence or non-occurrence of a condition subsequent. Commitments Include, without limitation, Letters of
Credit, firm commitments, guarantees or other financial arrangements made by Seattle Bank in writing to facilitate transactions between Customer and third parties. This Agreement is neither a Commitment nor an undertaking or obligation to provide
any Commitment. 

  

	1.1.15	“Credit Policy” means the credit and collateral policies of Seattle Bank, including without limitation the credit and collateral policies set forth in the
Users Guide and the Collateral Manual, as published and revised by the Seattle Bank from time to time. In addition to the Users Guide and Collateral Manual, the Credit Policy includes other policies adopted from time to time by Seattle Bank. The
Credit Policy is subject to the Act and Regulations, and in the event of any inconsistency between the Credit Policy and the Act or Regulations, the more restrictive statute, regulation or policy shall be controlling. 

 

	1.1.16	“De-Pledge” means the partial release, re-assignment and/or re-delivery by Seattle Bank or its approved custodian of any part of the Collateral pledged to
Seattle Bank for Indebtedness. 

  

	1.1.17	“Eligible Collateral” means Collateral other than Capital Stock which: (i) qualifies as security for Advances or Other Credit Accommodations under the
Act and Regulations; (ii) qualifies as security for Advances or Other Credit Accommodations under the Credit Policy, as amended by Seattle Bank from time to time, which maybe more restrictive than the Act or Regulations; (iii) is owned by
Customer free and clear of any liens, encumbrances or other interests, other than the pledge of such Collateral to Seattle Bank under this Agreement; and (iv) is not a home mortgage on which arty director, officer, employee, attorney or agent
of Customer or any federal home loan bank is personally liable, unless acceptance of such mortgage is specifically approved by formal resolution of the Seattle Bank’s board of directors, and the Finance Board has endorsed such resolution.

  

	1.1.18	“Eligible CFI Collateral” means, if Customer is a community financial institution as defined in the Regulations, certain small agri-business loans, small farm
loans or small business loans which meet the requirements of Eligible Collateral described in Subsection 1.1.17 above. 

  

	1.1.19	“Eligible Securities Collateral” means securities, now owned or hereafter acquired by Customer, whether certificated or uncertificated, which meet the
requirements of Eligible Collateral described in Subsection 1.1.17 above. 

  

	1.1.20	“Eligible Mortgage Collateral” means Mortgage Collateral which meets the requirements of Eligible Collateral described in Subsection 1.1.17 above.

  

	1.1.21	“Finance Board” means the Federal Housing Finance Board, or any successor agency thereto. 

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	1.1.22	“Funds” means money maintained in Customer’s Account(s) with Seattle Bank. 

 

	1.1.23	“Indebtedness” means all obligations of Customer to Seattle Bank, defined in the broadest and most comprehensive sense, to mean all primary, secondary,
direct, indirect, fixed or contingent, debts, duties, agreements, undertakings, obligations, covenants and conditions now or at any time in the future to be paid or performed by Customer in connection with or relating to Advances, Other Credit
Accommodations, Commitments, Accounts or Other Obligations, including, without limitation, all of Customer’s obligations to pay principal, interest, fees (including, without limitation, loan fees and prepayment fees), charges (including,
without limitation, overdraft charges), costs, reimbursements (including, without limitation, attorneys fees) and losses (including, without limitation, damages for Customer’s breach of any contractual obligations to Seattle Bank), which at any
time may be owing under or in connection therewith. 

  

	1.1.24	“Letter of Credit” means any standby letter of credit issued by Seattle Bank for the account of Customer. 

 

	1.1.25	“Listed Collateral” is defined in Section 3.4 below. 

  

	1.1.26	“Master Backup Support Agreement” means any agreement now or hereafter made by Seattle Bank and one or more other federal home loan bank(s) under which such
other federal home loan bank(s) may make Advances or Other Credit Accommodations to Customer in the event of a loss of power, communications or computer failure, property damage or other forms of business interruption adversely affecting Seattle
Bank’snormal operations. 

  

	1.1.27	“Member” means an owner of Capital Stock in Seattle Bank. 

  

	1.1.28	“Member Advance Stock Purchase Requirement” is described in Section 6.10 of this Agreement and in the Capital Plan. 

 

	1.1.29	“MERS” means Mortgage Electronic Registration Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, or any successor
thereto. 

  

	1.1.30	“MERS Mortgages” means mortgages registered with MERS, in which the Mortgage Documents name MERS as mortgagee, solely as nominee, for the originators of such
mortgages and their successors and assigns. 

  

	1.1.31	“Mortgage Collateral” means Mortgage Documents (excluding participation or other fractional interests therein) and all ancillary security agreements, policies
and certificates of insurance, guarantees, indemnities, evidences of recordation, applications, underwriting materials, surveys, appraisals, notices, opinions of counsel and loan servicing data and all other electronically stored and written records
or materials relating to the loans evidenced or secured by the Mortgage Documents. 

  

	1.1.32	“Mortgage Documents” means mortgages and deeds of trust (in this Agreement, “mortgages”) and all notes, bonds or other instruments evidencing loans
secured thereby (in this Agreement, “mortgage notes”) and any endorsements and assignments thereof to Customer. 

  

	1.1.33	“Mortgage Purchase Program” means any program offered by Seattle Bank for the purchase from a Member of mortgage notes and related mortgages.

  

	1.1.34	“Other Credit Accommodations” means credit products, other than Advances, authorized under the terms and conditions of the Act and the Regulations and offered
from time to time by Seattle Bank under its Credit Policy, including, without limitation, Swap Transactions, Letters of Credit and other Commitments. 

  

	1.1.35	“Other Eligible Collateral” means property, other than Eligible Mortgage Collateral or Eligible Securities Collateral, which meets the requirements of
Eligible Collateral described in Subsection 1.1.17 above, including, if Customer is a community financial institution as defined in the Regulations, any Eligible CFI Collateral. 

 

	1.1.36	“Other Obligations” means obligations of Customer to Seattle Bank other than those relating to Advances or Other Credit Accommodations, including, without
limitation, any repurchase obligations of Customer under a Mortgage Purchase Program, if applicable; overdraft charges, wire charges, Account fees and charges for other miscellaneous services provided to Customer by Seattle Bank; and all other
amounts, of any nature whatsoever, now or hereafter owed to the Seattle Bank by Customer. 

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	1.1.37	“Physical Possession Collateral” is defined in Section 3.5 below. 

 

	1.1.38	“Regulations” means the regulations of the Finance Board, as amended from time to time. 

 

	1.1.39	“Request” or “Requests” means any request(s) made by Customer via telephone, or other means made available by Seattle Bank from time to time, for
Advances. 

  

	1.1.40	“Stock Ownership Requirement” means the obligation of Customer to own minimum amounts of Capital Stock in accordance with the Capital Plan.

  

	1.1.41	“Swap Transaction” means an interest rate swap, cap or collar, currency exchange transaction, or any other similar transaction (including any option to enter
into any of the foregoing) or any combination of the foregoing, entered into between the Seattle Bank and Customer pursuant to the terms of the Credit Policy, this Agreement or other related documentation, including without limitation any form of
master agreement published by the International Swaps and Derivatives Association, Inc. 

  

	1.1.42	“UCC” means the Uniform Commercial Code, as amended from time to time, of the State of Washington or the state of formation of Customer, as applicable under
Section 6.13 of this Agreement. 

  

	1.1.43	“Users Guide” means the Financial Products and Services Users Guide of the Seattle Bank, as published and revised by Seattle Bank from time to time.

 Article II. Advances and Other Credit Accommodations 
 Section 2.1 Procedures for Advances The terms and conditions of this Agreement shall govern each Advance heretofore, now or hereafter made by Seattle Bank to Customer. The Credit Policy of the
Seattle Bank is an integral part of the terms and conditions of all such Advances and is incorporated in this Agreement by this reference as if fully set forth herein. Additional terms and conditions of Advances may be set forth in an Advance Master
Application and/or Advances Note, which Seattle Bank may require Customer to sign and deliver to Seattle Bank from time to time. Any additional, particular terms and conditions of an Advance orally quoted by Seattle Bank and accepted by Customer at
the time of the Customer’s Request for an Advance, including, without limitation, the principal amount, applicable interest rate or due date of the Advance, will be confirmed by Seattle Bank in an Advance Confirmation Advice or, if no Advance
Confirmation Advice is issued, will be evidenced by the books and records of the Seattle Bank. In cases in which a Request for an Advance is made orally by Customer of Seattle Bank in an electronically recorded telephone conversation, and a question
arises concerning any particulars of such Advance, Customer agrees that such recording or a transcript thereof will be an integral part of the Seattle Bank’s books and records and may be used as evidence of such particulars. In cases in which
an Advance requested orally by Customer is made by another federal home loan bank, on behalf of Seattle Bank, under a Master Backup Support Agreement, the books and records of such other federal home loan bank will establish any additional,
particular terms of such Advance. If such Advance is requested by Customer of such other federal home loan bank in an electronically recorded telephone conversation, and a question arises concerning any particulars of such Advance, Customer agrees
that such recording or a transcript thereof will be an integral part of the such other federal home loan bank’s books and records and may be used as evidence of such particulars. Unless otherwise agreed by Seattle Bank, each Advance will be
made by crediting Customer’s demand deposit Account(s) with Seattle Bank. In all cases, funding of any Request for an Advance will be subject to compliance by Customer with the terms and provisions of the Act, the Regulations, the Credit Policy
and this Agreement, including, without limitation, the Stock Ownership Requirement and Collateral Maintenance Requirement. In the event that Customer’s access to Advances is subsequently restricted pursuant to the Act, the Regulations or any
other provision of applicable law, Seattle Bank will not be required to fund any outstanding Commitment for Advances not funded prior to the effective date of such restriction. 
 Section 2.2 Repayment of Advances Customer agrees to repay each Advance in accordance with its terms and conditions. Customer will maintain in Customer’s demand deposit Account(s) with
Seattle Bank an amount at least equal to the amounts then currently due and payable to Seattle Bank with respect to Advances, and Customer hereby authorizes Seattle Bank to debit Customer’s Account(s) with Seattle Bank for all amounts due and
payable with respect to any Advance and for all other amounts due and payable under this Agreement. Customer agrees that, in the event any such debit results in Customer’s demand deposit Account being overdrawn, Customer will pay overdraft
charges thereon at the rate that Seattle Bank normally assesses for overdrafts on general demand deposit accounts. In the event that the balance in such demand deposit Account(s) is, at any time, insufficient to pay such due and payable amounts,
Seattle Bank may in its discretion and without notice to Customer: (i) make a “flexible 

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balance” or other similar Advance, as provided in the Credit Policy, in the amount of and for the purpose of paying such due and payable amounts; or (ii) apply any other deposits,
credits, Funds or other monies of Customer then in the possession of Seattle Bank to the payment of such due and payable amounts. All payments with respect to Advances will be applied to any fees, costs or charges applicable thereto, to interest due
thereon and to any principal amount thereof that is then due and payable, In such order and priority as Seattle Bank may determine. 

Section 2.3 Estoppel For any Advance evidenced by an Advance Confirmation Advice, failure of Customer, within ten (10) business days of
Customer’s receipt of the Advance Confirmation Advice, to deliver written notice to Seattle Bank specifying any disputed particulars thereof, including without limitation the principal amount, applicable interest rate or due date of the
Advance, will constitute the final agreement and acknowledgment by Customer that the particulars of the Advance Confirmation Advice are accurate and are those that Customer requested and by which Customer agreed to be bound, and Customer will
thereafter be estopped from asserting any claim or defense with respect thereto. For any Advance which has such particular terms established by the books and records of the Seattle Bank or another federal home loan bank rather than by an Advance
Confirmation Advice, such books and records shall be conclusive in the absence of manifest error. Seattle Bank reserves the right to correct its scrivener’s errors, if any, in any Advance Confirmation Advice or such books and records, and no
such errors shall affect Customer’s obligations in respect to the affected Advance. 
 Section 2.4 Interest Customer agrees to
pay interest on each Advance at a rate per annum determined on the basis described in the Credit Policy, Advance Master Application, Advances Note, Advance Confirmation Advice or the books and records of Seattle Bank or other federal home loan bank,
as the case may be, pertaining to such Advance. 
 Section 2.5 Commitment and Cancellation Fees Customer agrees to pay when due any
commitment fees and any cancellation fees applicable to any Commitments issued by Seattle Bank for Advances, determined on the basis described in the Credit Policy, the Commitment documentation or the books and records of Seattle Bank or other
federal home loan bank, as the case may be, pertaining to such Commitment. 
 Section 2.6 Other Credit Accommodations 

 

	2.6.1	Customer may apply to Seattle Bank for the issuance of other credit products, including without limitation Letters of Credit, firm commitments for Advances and Swap
Transactions, provided such other credit products, and Customer’s intended use thereof, are authorized under the Act, the Regulations and the Credit Policy. The terms and conditions of such Other Credit Accommodations shall be governed by the
Act, the Regulations, the Credit Policy, this Agreement and such other documentation as Seattle Bank may require from time to time. 

  

	2.6.2	The Borrowing Capacity of Customer shall be reduced by Seattle Bank’s outstanding obligations under any Letter of Credit, Swap Transaction, Commitment or Other
Credit Accommodation, as determined by Seattle Bank from time to time, in the same manner as outstanding Advances. 

  

	2.6.3	In the event any Commitment, including without limitation a Letter of Credit, is outstanding at the time of an Event of Default under Section 4.1 of this
Agreement, Seattle Bank may at its option make an Advance by crediting a special Account with Seattle Bank in an amount equal to the outstanding Commitment. Amounts credited to such special Account will be utilized by Seattle Bank for the purpose of
satisfying Seattle Bank’s obligations under the outstanding Commitment, When all such obligations have expired or have been satisfied, Seattle Bank will disburse the balance, if any, in such special Account first to the satisfaction of any
Indebtedness then owing by Customer to Seattle Bank and then to Customer or its successors in interest. Advances made pursuant to this Subsection 2.7.3 will be payable on demand and will bear interest at the rate in effect and being charged by
Seattle Bank from time to time on overdrafts on demand deposit accounts of its Customers. 

 Section 2.7 Prepayment
Fees Customer agrees to pay a prepayment fee upon the prepayment of all or any portion of any Advance or Other Credit Accommodation, made before the due date thereof, whether such prepayment is made voluntarily or involuntarily, including,
without limitation, any prepayment resulting from acceleration under Section 4.1 hereof upon an Event of Default. The amount of the prepayment fee shall not be less than zero and shall be determined by the Seattle Bank on the basis described in
the Regulations, the Credit Policy and any applicable Advance Master Application, Advances Note, Advance Confirmation Advice or Swap Transaction, as the case may be, pertaining to prepayment of such Advance or Other Credit Accommodation. Any
applicable illustrations and examples of prepayment fees in the Users Guide, as published and revised by the Seattle Bank from time to time, are 

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an integral part of the terms and conditions of this Agreement and are incorporated herein by this reference as if fully set forth at length. 

Section 2.8 Compliance with the Credit Policy, Act and Regulations Customer hereby agrees to comply with the terms and provisions of the
Credit Policy, the Act and the Regulations, including, without limitation, any reporting requirements, application procedures or eligibility requirements imposed by the Credit Policy, the Act or the Regulations with respect to particular types of
Advances, Commitments or Other Credit Accommodations. In the event of any inconsistency between the Credit Policy and the Act or the Regulations, Customer hereby agrees to comply with the more restrictive statute, regulation or policy. In the event
any provision of the Credit Policy, the Act or the Regulations is amended, Customer agrees to comply with the terms and provisions of the Credit Policy, the Act and the Regulations as so amended from time to time, provided that, to the extent
permitted by the Act and the Regulations, any particular terms of outstanding Advances or Commitments existing at the time of any such amendment, including, without limitation, interest rates or prepayment fees, will continue to be governed by the
terms and provisions of the Advance Master Application, Advances Note, Advance Confirmation Advice or Commitment documentation which applied to such outstanding Advances or Commitments at the time such Advances or Commitments were made.
Notwithstanding the foregoing, Seattle Bank shall retain the right to amend from time to time the Borrowing Capacity, Collateral Coverage Factors and Collateral Maintenance Requirements applicable to Customer and its Eligible Collateral, and
Customer agrees to comply with such changes upon Seattle Bank’s notice thereof to Customer. 
 Section 2.9 Additional Covenants by
Customer Customer will maintain a copy of this Agreement in its official records at all times. Customer will give Seattle Bank notice of any material event that would cause Customer, pursuant to the provisions of the Act, the Regulations, the
Credit Policy or this Agreement, to be ineligible to become a Customer of Seattle Bank or ineligible to obtain Advances, Commitments or Other Credit Accommodations. Any obligation of Seattle Bank to fund any Advance or Other Credit Accommodation,
including any Commitment, shall be conditioned upon the satisfaction of each of the following conditions precedent as of the date hereof and at the time of funding of each Advance or Other Credit Accommodation: (a) all representations and
warranties of Customer contained this Agreement, or otherwise made by Customer to Seattle Bank, are and continue to be correct; (b) no Event of Default under this Agreement, or other documentation relating to the Advance or Other Credit
Accommodation, has occurred or would result from such Advance; (c) the Seattle Bank has received such approvals, opinions or documents that the Seattle Bank may request in connection with the Advance or Other Credit Accommodation;
(d) Customer satisfies all membership and borrowing eligibility criteria under the Act, the Regulations, this Agreement and the Credit Policy; (e) Customer, in the judgment of Seattle Bank, is not engaging or has not engaged in unsafe or
unsound banking practices, has adequate capital, is not sustaining operating losses, does not have financial or managerial deficiencies that bear on the Customer’s creditworthiness, and has no other deficiencies as determined by Seattle Bank;
(f) there has been in Seattle Bank’s judgment no material adverse change in Customer, the Collateral or any financial or other information submitted by Customer to Seattle Bank in connection with an Advance, Other Credit Accommodations or
any Other Obligations; and (g) there has been in Seattle Bank’s judgment no change in governmental laws or regulations that materially affects the Seattle Bank’s power, right, authority, or ability to fund the Advance or Other Credit
Accommodation. 
 Article III. Security Agreement 
 Section 3.1 Creation of Security Interest As security for the timely payment of all Indebtedness and outstanding Commitments, Customer hereby assigns, transfers, and pledges to Seattle Bank,
and grants to Seattle Bank a security interest in all of the following Collateral now owned or hereafter acquired by Customer, and all proceeds thereof: 
  

	3.1.1	All promissory notes and other instruments, all mortgages, deeds of trust and other supporting obligations, all mortgage-backed securities, stock and other investment
property, and all accounts, general intangibles, payment intangibles, chattel paper, letter of credit rights, deposit accounts, money, goods, software, commercial tort claims, equipment and inventory, now owned or hereafter acquired by Customer,
including without limitation; 

  

	 	(a)	All Capital Stock now owned or hereafter acquired by Customer in Seattle Bank, including all payments which have been or hereafter are made on account of subscriptions
to and all unpaid dividends on such stock; 

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	 	(b)	All Funds of Customer now or hereafter on deposit with Seattle Bank; 

  

	 	(c)	All Eligible Mortgage Collateral and related Mortgage Documents now owned or hereafter acquired by Customer; 

 

	 	(d)	All Eligible Securities Collateral now owned or hereafter acquired by Customer; and 

 

	 	(e)	All Other Eligible Collateral now owned or hereafter acquired by Customer. 

 

	3.1.2	It is the intention of Seattle Bank and Customer that the Collateral shall include all assets now owned or hereafter acquired by Customer in which a security interest
can be created under the UCC, specifically including but not limited to the property types and categories set forth in Subsection 3.1.1 and Subparagraphs 3.1.1(a)-(e) above. All of the Collateral shall secure the Indebtedness, irrespective of
whether only part of the Collateral constitutes Eligible Collateral for purposes of satisfying the Collateral Maintenance Requirements of Section 3.3 below. 

 Section 3.2 Customer’s Representations and Warranties Regarding Collateral Customer represents and warrants to Seattle Bank, as of the date of this Agreement and the date of each Advance,
Commitment or Other Credit Accommodation made under this Agreement, as follows: 
  

	3.2.1	Customer owns and has marketable title to all Collateral and has the right and authority to grant a security interest in the Collateral and to subject all of the
Collateral to this Agreement, and Customer covenants that it will defend the Collateral against the claims and demands of all persons; 

  

	3.2.2	With respect to any Eligible Mortgage Collateral originated by any party (whether affiliated or unaffiliated) other than Customer, the Mortgage Documents contain either
a complete chain of endorsements (either on the mortgage note or a related allonge) from the originating party to Customer, a complete chain of endorsements in blank from each successive holder of the Mortgage Collateral or are MERS Mortgages for
which Customer’s ownership has been registered with MERS. 

  

	3.2.3	The information contained in any financial report, call report, certification, audit, confirmation, report, schedule, or other documents required under this Agreement
and any other information given from time to time by Customer as to each item of Eligible Collateral, and any information provided by Customer to its supervising state or federal agency in call reports or other reports, from which Seattle Bank
obtains information related to Collateral, is true, accurate and complete in all material respects; 

  

	3.2.4	All Eligible Collateral meets the standards and requirements from time to time established by the Credit Policy, the Act and the Regulations and, in any case of
variances among the Act, the Regulations and the Credit Policy, the most restrictive of such standards and requirements; 

  

	3.2.5	To Customer’s knowledge, no part of any real property encumbered by Mortgage Collateral contains or is subject to the effects of any hazardous materials or other
hazardous substances, except as may have been disclosed to and reasonably approved by Customer in its underwriting of Mortgage Collateral, and Customer will indemnify and hold Seattle Bank harmless, and, at the option of Seattle Bank, defend Seattle
Bank (with counsel satisfactory to Seattle Bank) from all liabilities, costs, damages, claims or expenses (including attorneys’ fees and environmental consultants’ fees) suffered, paid or incurred by Seattle Bank resulting from or arising
out of any requirement under any applicable federal, state or local law, regulation, ordinance, order, judgment or decree relating to the release or cleanup of any such hazardous material or hazardous substance; 

 

	3.2.6	Except as permitted under Section 3.3 of this Agreement, Customer will not (i) sell, offer to sell or otherwise transfer Eligible Collateral, nor pledge,
mortgage or create or suffer to exist a lien, claim of lien, encumbrance, right of set-off or other security interest or collateral assignment of any kind whatsoever in Eligible Collateral or the proceeds thereof in favor of any person other than
Seattle Bank, or (ii) transfer physical possession of the Mortgage Documents evidencing Eligible Mortgage Collateral to any third party or affiliate without the prior written consent of Seattle Bank; 

 

	3.2.7	 All taxes, assessments and governmental charges levied or assessed or imposed upon or with respect to Eligible Collateral, including any real property
subject to Eligible Mortgage Collateral, will be paid and if 

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Customer fails to promptly pay such taxes, assessments or governmental charges, Seattle Bank may (but will not be required to) pay the same and any such expense will be an obligation under this
Agreement; and 

  

	3.2.8	Customer will notify Seattle Bank promptly in writing of any change in the location of the Eligible Collateral and of any change in location of its principal place of
business or jurisdiction of incorporation, organization or formation. 

 Section 3.3 Collateral Maintenance Requirement

  

	3.3.1	Customer will at all times maintain an amount of Eligible Collateral, pledged to Seattle Bank under this Agreement, which, after discounting by the Collateral Coverage
applicable to such Eligible Collateral, has a value, as determined by Seattle Bank, of not less than the aggregate amount of all Advances, Commitments and Other Credit Accommodations then outstanding. This Collateral Maintenance Requirement may be
increased or decreased by Seattle Bank at any time, based upon Customer’s creditworthiness or the quality of Customer’s Eligible Collateral, as determined by Seattle Bank from time to time. Customer will not, without prior written consent
of Seattle Bank, assign, pledge, transfer, create any security interest in, sell, or otherwise dispose of any Eligible Collateral if: (i) such Eligible Collateral is Physical Possession Collateral under Section 3.5 of this Agreement;
(ii) immediately after such action, Customer’s remaining Eligible Collateral would be insufficient to comply with the Collateral Maintenance Requirement; or (iii) at the time of such action, there is an outstanding Event of Default
under Section 4.1 of this Agreement. 

  

	3.3.2	All Eligible Collateral (other than Physical Possession Collateral held by Seattle Bank or its custodian) will beheld by Customer in trust for the benefit of, and
subject to the direction and control of Seattle Bank, and will be physically safe guarded by Customer with at least the same degree of care as Customer would ordinarily use in prudently safeguarding its property. Without limiting the foregoing,
Customer will take all action necessary or desirable to protect and preserve Eligible Collateral held by Customer, including without limitation the maintaining of insurance on property securing mortgages constituting Eligible Collateral (such
policies and certificates of insurance relating to such mortgages are in this Agreement called “insurance”), the collection of payments under all such mortgages and under all such insurance, and otherwise assuring that loans comprising
Eligible Mortgage Collateral are serviced in accordance with the standards of a reasonable and prudent mortgagee. Customer, as Seattle Bank’s agent, will collect all payments when due on all Eligible Collateral held by Customer in trust for the
benefit of Seattle Bank. If Seattle Bank requests, all such collections shall be held separate from Customer’s other monies in one or more designated Accounts maintained at Seattle Bank. At Seattle Bank’s sole discretion, Seattle Bank may
then apply such collections to the payment of Indebtedness as it becomes due; otherwise, and provided there is no outstanding Event of Default under Section 4.1 of this Agreement, Customer may use and dispose of such collections in the ordinary
course of its business. 

  

	3.3.3	Subject to the Collateral Maintenance Requirement of Subsection 3.3.1 above, and provided there is no outstanding Event of Default under Section 4.1 of this
Agreement, Customer may use or dispose of all or part of the Collateral and proceeds thereof in the ordinary course of its business. Notwithstanding the foregoing, Customer may not use or dispose or all or part of Physical Possession Collateral or
the proceeds thereof, except upon the De-Pledging of such Physical Possession Collateral in accordance with Section 3.6 below. 

  

	3.3.4	Customer will, upon request of Seattle Bank, immediately take such actions and execute such documentation as Seattle Bank may deem necessary or appropriate to create
and perfect Seattle Bank’s security interest in the Collateral or otherwise to obtain, preserve, protect, enforce or collect the Collateral; including, without limitation, executing any agreements, instructions or other documents that Seattle
Bank deems necessary to establish control of Collateral by Seattle Bank or by its custodian on Seattle Bank’s behalf. 

  

	3.3.5	 Any Collateral that is not satisfactory to Seattle Bank may be rejected at any time as Eligible Collateral by Seattle Bank, or in Seattle Bank’s
discretion may at any time be discounted by a Collateral Coverage Factor that is less than the Collateral Coverage Factor normally ascribed thereto under the Credit Policy. Seattle Bank may require, before or during the period when any Advance is
made to Customer, that Customer make any or all Eligible Securities Collateral, all Mortgage Documents for Eligible Mortgage Collateral and any 

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other documents pertaining to Eligible Collateral, including without limitation any agreements between Customer and its servicing agents, available to Seattle Bank for its inspection and
approval. 

  

	3.3.6	In the case of any Eligible Collateral which is physically possessed by Customer, Customer will grant, upon Seattle Bank’s written request, an irrevocable license
to Seattle Bank, in form and content satisfactory to Seattle Bank (and if requested by Seattle Bank, joined in by any real property owner or landlord of the premises where such Eligible Collateral is located), that will allow representatives of
Seattle Bank to enter the premises of Customer in order to inspect from time to time and/or remove and take possession of the Eligible Collateral. 

  

	3.3.7	In the case of Eligible Collateral which is physically possessed by any affiliate or servicing agent of Customer, Customer will, upon Seattle Bank’s written
request, cause Customer’s affiliate or servicing agent to (i) grant an irrevocable license to Seattle Bank, in form and content satisfactory to Seattle Bank (and if requested by Seattle Bank, joined in by any real property owner or
landlord of the premises where such Eligible Collateral is located), that will allow representatives of Seattle Bank to enter the premises of Customer’s affiliate or servicing agent in order to inspect from time to time and/or remove and take
possession of the Eligible Collateral; and/or (ii) establish custodial or control agreements, in form and content satisfactory to Seattle Bank, under which the affiliate’s or servicing agent’s physical possession will be held for the
benefit of Seattle Bank as secured party. Seattle Bank may require such arrangements irrespective of whether the Eligible Collateral has been designated as Listed Collateral or Physical Possession Collateral under Sections 3.4 or 3.5 below.

  

	3.3.8	Seattle Bank’s acceptance as Eligible Collateral of any Mortgage Collateral relating to multifamily or commercial properties may, in the discretion of Seattle
Bank, be conditioned upon Customer’s execution and delivery of Rider(s) to this Agreement containing warranties and representations required of Customer by Seattle Bank for any Mortgage Collateral relating to multifamily or commercial
properties, 

 Section 3.4 Listed Collateral 

 

	3.4.1	At any time that Customer’s Eligible Mortgage Collateral or Eligible CFI Collateral becomes subject to mandatory listing requirements under the Credit Policy, or
at any other time, at the sole discretion of Seattle Bank, Customer will deliver to Seattle Bank, upon Seattle Bank’s written request, a status report and accompanying schedules, all in form and content acceptable to Seattle Bank, specifying
and describing any mortgage loan pledged to Seattle Bank as Eligible Mortgage Collateral and any item of Eligible CFI Collateral pledged to Seattle Bank (collectively, “Listed Collateral”). At such other times as Seattle Bank may request,
Customer will deliver to Seattle Bank periodic status reports and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Listed Collateral. 

 

	3.4.2	Upon Seattle Bank’s written request. Customer will physically segregate the mortgages, loan packages and other property comprising Listed Collateral from all other
property of Customer in a manner satisfactory to Seattle Bank. Until particular items of Listed Collateral are De-Pledged in accordance with the Credit Policy, the physical segregation of such items shall be maintained. 

 

	3.4.3	Upon Seattle Bank’s written request, Customer will hold each loan package included in Listed Collateral in a separate file folder, with each file folder clearly
labeled with the loan identification number and the name of the mortgagor. Upon written request of Seattle Bank, the file folder for each package of loan documents included within Listed Collateral will bed early marked or stamped with the
statement: “The Instrument(s) and Security Relating to this Loan Have Been Pledged to the Federal Home Loan Bank of Seattle.” 

 Section 3.5 Physical Possession Collateral 
  

	3.5.1	At any time that Customer becomes subject to mandatory physical possession requirements under the Credit Policy, or at any other time, at the sole discretion of Seattle
Bank, Customer will deliver to Seattle Bank, or to a custodian approved by Seattle Bank in its discretion, upon Seattle Bank’s written request, the mortgage loans pledged to Seattle Bank as Eligible Mortgage Collateral, securities pledged to
Seattle Bank as Eligible Securities Collateral, loans pledged to Seattle Bank as Eligible CFI Collateral and each item of Other Eligible Collateral pledged to Seattle Bank (collectively, “Physical Possession Collateral”).

  

	3.5.2	 Eligible Mortgage Collateral delivered to Seattle Bank or Its approved custodian as Physical Possession Collateral will be endorsed or assigned by
Customer in blank or, if requested by Seattle Bank, to Seattle 

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Bank. For MERS Mortgages, Customer will execute a notification to MERS of its assignment of the MERS Mortage in blank or, if requested by Seattle Bank, to Seattle Bank. Regardless of whether any
endorsement is stated to be “without recourse,” Customer shall be liable for any deficiency remaining after any exercise by the Bank of its remedies in respect of Collateral, as provided in Section 4.2 below.

  

	3.5.3	With respect to certificated Eligible Securities Collateral pledged to Seattle Bank as Physical Possession Collateral, the delivery requirements contained in this
Section 3.5 will be satisfied, at the election of Seattle Bank, by one of more of: (i) transfer of physical possession of such certificated securities to Seattle Bank; (ii) re- registration of such securities in Seattle Bank’s name;
or (iii) possession of such certificated securities, on Seattle Bank’s behalf, by a custodian approved by Seattle Bank. Any such possession of certificated securities by an approved custodian, on Seattle Bank’s behalf, will be
effected and evidenced by documentation acceptable to Seattle Bank in form and content, establishing Seattle Bank’s control of such certificated securities under the provisions of the UCC. 

 

	3.5.4	With respect to uncertificated Eligible Securities Collateral pledged to Seattle Bank as Physical Possession Collateral, satisfaction of the delivery requirements
contained in this Section 3.5 will be effected and evidenced by agreements, instructions or other documentation acceptable to Seattle Bank in form and content, establishing Seattle Bank’s control of such uncertificated securities under the
provisions of the UCC. 

  

	3.5.5	Concurrently with the initial delivery of Physical Possession Collateral, and at such other times as Seattle Bank may request, Customer will deliver to Seattle Bank a
status report and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Physical Possession Collateral held by Seattle Bank or its custodian. At such other times as Seattle Bank may request, Customer
will deliver to Seattle Bank periodic status reports and accompanying schedules, in form and content acceptable to Seattle Bank, describing the status of the Physical Possession Collateral. Until Physical Possession Collateral is De-Pledged in
accordance with Section 3.6 below, such physical possession by Seattle Bank or its approved custodian shall be maintained with respect to such Physical Possession Collateral. At Seattle Bank’s sole discretion, all proceeds the Physical
Possession Collateral, including without limitation all payments made under the loans or securities constituting Physical Possession Collateral, shall be held separate from Customer’s other monies in one or more designated Accounts maintained
at Seattle Bank. Seattle Bank may apply such monies to the payment of Indebtedness as it becomes due, or hold such monies as part of its Physical Possession Collateral, subject to De-Pledging under the terms and conditions of Section 3.6 below.

  

	3.5.6	Customer agrees to pay to Seattle Bank such reasonable fees and charges as may be assessed by Seattle Bank to cover Seattle Bank’s overhead and other costs
relating to the receipt, holding, De-Pledge, redelivery and reassignment of Physical Possession and to reimburse Seattle Bank upon request for all filing or recording fees and other reasonable expenses, disbursements and advances incurred or made by
Seattle Bank in connection therewith, including without limitation reasonable attorneys fees and costs of legal counsel of Seattle Bank. Customer shall pay the fees and expenses, including, without limitation, reasonable attorneys fees and costs, of
any custodian approved or retained by Seattle Bank with respect to Collateral. Any such sums owed to Seattle Bank or to such custodian may be collected by Seattle Bank, at its option, by debiting Customer’s Account(s) with Seattle Bank.

 Section 3.6 De-Pledging of Collateral Upon receipt by Seattle Bank of a written request from Customer, in form and
content acceptable to Seattle Bank, for the De-Pledge of any part of the Collateral or proceeds thereof in which Seattle Bank has perfected its security interest, setting forth (i) a sufficient description of the Collateral to be withdrawn or
reassigned; and (ii) a certificate of an authorized officer of Customer certifying that the immediately after such De-Pledge, Customer’s remaining Eligible Collateral will be sufficient to comply with the Collateral Maintenance
Requirement, Seattle Bank will promptly return, reassign or partially release to Customer, at Customer’s expense, the Collateral specified in said request. Notwithstanding anything to the contrary contained in this Agreement, Customer may not
obtain any such withdrawal or reassignment (a) while an Event of Default under this Agreement has occurred and is continuing; (b) at any time that Seattle Bank’s records indicate that immediately after such De-Pledge, Customer’s
remaining Eligible Collateral would be insufficient to comply with the Collateral Maintenance Requirement as determined by Seattle Bank; or (c) at any time that Seattle Bank reasonably and in good faith deems itself insecure. Customer will pay
upon request for all filing or recording fees and other reasonable expenses incurred by Seattle Bank or any approved custodian in connection with De-Pledging of any Collateral, including without

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limitation reasonable attorneys fees and costs of legal counsel of Seattle Bank or such custodian. Any such sums owed to Seattle Bank or to such custodian may be collected by Seattle Bank, at its
option, by debiting Customer’s demand or time deposit Account(s) with Seattle Bank. 
 Section 3.7 Reports, Collateral Audits;
Access 
  

	3.7.1	If requested by Seattle Bank at any time, Customer will furnish to Seattle Bank an audit report prepared in accordance with generally accepted auditing standards by an
external auditor acceptable to Seattle Bank, certifying the book value of the Eligible Collateral owned by Customer. If requested by Seattle Bank at any time, Customer will furnish to Seattle Bank a written report covering such matters regarding
Eligible Collateral as Seattle Bank may require, including without limitation a listing of mortgages comprising Eligible Mortgage Collateral or loans comprising Eligible CFI Collateral, the unpaid principal balances thereof, the status of payments
thereon and of taxes and insurance on the property encumbered thereby; securities and the publicly listed market value thereof, and any other information requested by Seattle Bank regarding the Eligible Collateral. Customer will give Seattle Bank
access at all reasonable times to Collateral in Customer’s possession and to Customer’s books and records of account relating to such Collateral, for the purpose of Seattle Bank’s examining, verifying or reconciling the Collateral and
Customer’s report to Seattle Bank thereon. 

  

	3.7.2	All Collateral and the satisfaction by Customer of the Collateral Maintenance Requirement will be subject to audit and verification by or on behalf of Seattle Bank.
Such audits and verifications may occur without notice during Customer’s normal business hours or upon reasonable notice at such other times as Seattle Bank may reasonably request. Customer will provide access to, and will make adequate working
facilities available to, the representatives or agents of Seattle Bank for purposes of such audits and verifications. Customer agrees to pay to Seattle Bank such reasonable fees and charges as may be assessed by Seattle Bank to cover overhead and
other costs relating to such audit and verification. 

 Section 3.8 Additional Documentation Customer will
make, execute, record and deliver to Seattle Bank such notices, instructions, assignments, listings, powers, and other documents with respect to the Collateral and Seattle Bank’s security interest therein in such form as Seattle Bank may
require. Customer authorizes Seattle Bank to file such financing statements as Seattle Bank deems necessary with respect to the Collateral, and Customer hereby ratifies any financing statements previously filed by Seattle Bank with respect to the
Collateral. 
 Section 3.9 Seattle Bank’s Responsibilities as to Collateral In the event that Seattle Bank takes
possession of any Collateral pursuant to the terms of this Agreement, Seattle Bank’s duty as to the Collateral will be solely to use reasonable care in the custody and preservation of the Collateral in its possession, which will not include any
steps necessary to preserve Customer’s rights against any third parties nor the duty to send notices, perform services, or take any action in connection with management of the Collateral. Seattle Bank will not have any responsibility or
liability for the form, sufficiency, correctness, genuineness or legal effect of any instrument or document constituting a part of the Collateral, or any signature thereon or the description or misdescription, or value of property represented, or
purported to be represented, by any such document or instrument. Customer agrees that any and all Collateral may be removed by Seattle Bank from the state or location where situated, and may there be dealt with by Seattle Bank as provided in this
Agreement. 
 Section 3.10 Seattle Bank’s Rights as to Collateral At any time or times, at the expense of Customer,
Seattle Bank will have the right, before or after the occurrence of an Event of Default as set forth in Section 4.1 of this Agreement, but shall not have the obligation, to do any or all things and take any and all actions that are deemed
necessary or convenient by Seattle Bank to the protection of its rights and interests under this Agreement and are lawful under the Act, the Regulations and the laws of the State of Washington, including, but not limited to, the following:

  

	3.10.1	Terminate any consent given under this Agreement; 

  

	3.10.2	Notify obligors on any Collateral to make payments thereon directly to Seattle Bank; 

 

	3.10.3	Endorse any Collateral that is in Customer’s name or that has been endorsed by others to Customer’s name; 

 

	3.10.4	Enter into any extension, compromise, settlement, or other agreement relating to or affecting any Collateral; 

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	3.10.5	Take any action Customer is required to take or which is otherwise necessary to: (i) file a financing statement or otherwise perfect a security interest in any or
all of the Collateral; or (ii) to obtain, preserve, protect, enforce or collect the Collateral; 

  

	3.10.6	Take control of any funds or other proceeds generated by the Collateral and use the same to reduce Indebtedness as it becomes due; and 

 

	3.10.7	Cause the Collateral to be transferred to Seattle Bank’s name or the name of its nominee. 

 Section 3.11 Power of Attorney Customer hereby appoints Seattle Bank as its true and lawful attorney, for and on behalf of Customer and in its name, place and stead, to prepare, execute and
record endorsements and assignments to Seattle Bank of all or any item of Collateral, giving or granting to Seattle Bank, as such attorney, full power and authority to do or perform every lawful act necessary or proper in connection therewith as
fully as Customer might or could do. Customer hereby ratifies and confirms all that Seattle Bank will lawfully do or cause to be done by virtue of this special power of attorney. This special power of attorney is granted for a period commencing on
the date of this Agreement and continuing until the discharge of all Indebtedness and Commitments and all obligations of Customer under this Agreement regardless of any Event of Default by Customer, is coupled with an interest and is irrevocable for
the period granted. As Customer’s true and lawful attorney-in-fact, Seattle Bank has no responsibility to take any steps necessary to preserve rights against prior parties nor the duty to send notices, perform services, or take any action in
connection with the management of the Collateral. 
 Article IV. Default; Remedies 

Section 4.1 Events of Default; Acceleration Upon the occurrence of and during the continuation any of the following events or conditions of
default (“Event of Default”), Seattle Bank may at its option, by a notice to Customer, declare all Indebtedness and accrued interest thereon, including any prepayment fees or charges which are payable in connection with the payment prior
to the originally scheduled maturity of any Advance or Other Credit Accommodation, to be immediately due and payable without presentment, demand, protest or any further notice and/or terminate any obligation on the part of Seattle Bank in respect of
any Commitment to make or continue making any Advances; 
  

	4.1.1	Failure of Customer to pay when due any interest on or principal of any Advance or Other Credit Accommodation; or 

 

	4.1.2	Failure of Customer to perform any promise or obligation or to satisfy any condition or liability contained in this Agreement, the Credit Policy or any Advances Note,
Advance Master Application or Advance Confirmation Advice, or in any other agreement to which Customer and Seattle Bank are parties, whether pertaining to any Advance, Other Credit Accommodation or Other Obligations; or 

 

	4.1.3	Evidence coming to the attention of Seattle Bank that any representations, statements, or warranty made or furnished in any manner to Seattle Bank by or on behalf of
Customer in connection with any Advance or Other Credit Accommodation, any specification of Eligible Collateral or any certification of Fair Market Value were false, misleading or incomplete in any material respect when made or, with the passage of
time, have become untrue in any material respect; or 

  

	4.1.4	Failure of Customer to maintain adequate Eligible Collateral free of any encumbrances or claims as required in this Agreement, or any material damage to or loss of
Eligible Collateral, or any sale or encumbrance of any Eligible Collateral except as permitted by this Agreement 

  

	4.1.5	The issuance of any tax, levy, seizure, attachment, garnishment, levy of execution, or other process with respect to any of the Collateral; or 

 

	4.1.6	Any suspension of payment by Customer to any creditor of sums due or the occurrence of any event which results in another creditor having the right to accelerate the
maturity of any indebtedness of Customer underany security agreement, indenture, loan agreement, or comparable undertaking; or 

  

	4.1.7	 Any taking over of the Customer or any of its assets or affiliates by a supervising agency, or an application for or appointment of a conservator or
receiver for Customer or any affiliate of Customer or Customer’s property, entry of a judgment or decree adjudicating Customer or any affiliate of Customer insolvent or bankrupt, an assignment by Customer or any affiliate of Customer for
benefit of creditors, or the entry of any 

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supervisory or consent order pertaining to Customer or any affiliate of Customer by any regulatory body or by any court at the request of such regulator; or 

 

	4.1.8	Sale by Customer of all or a material part of Customer’s asset or the taking of any other action by Customer to liquidate or dissolve; or 

 

	4.1.9	Termination of Customer’s membership in Seattle Bank, or Customer’s ceasing to be a type of financial institution that is eligible under the Act or the
Regulations to become a Customer of Seattle Bank; or 

  

	4.1.10	Merger, consolidation or other combination of Customer with an entity which is not a Customer of Seattle Bank if the non-Customer entity is the surviving entity; or

  

	4.1.11	Seattle Bank determines in good faith that a material adverse change has occurred in the financial condition of Customer from that disclosed at the time of the making
of any Advance or from the condition of Customer as theretofore most recently disclosed to Seattle Bank; or 

  

	4.1.12	Seattle Bank in good faith deems itself insecure even though Customer is not otherwise in default; or 

 

	4.1.13	Customer has borrowed, or committed to borrow, from any source an amount that is greater than the amount Customer is permitted to borrow under applicable law.

 Section 4.2 Remedies Upon the occurrence of any Event of Default, Seattle Bank will have all of the rights and
remedies provided by applicable law, including but not be limited to all of the remedies of a secured party under the UCC. In addition, Seattle Bank may take immediate possession of any of the Collateral or any part thereof wherever the same may be
found. Seattle Bank may sell, assign and deliver the Collateral or any part thereof at public or private sale for such price as Seattle Bank deems appropriate without any liability for any loss due to decrease in the market value of the Collateral
during the period held. Seattle Bank will have the right to purchase all or part of the Collateral at such sale. If the Collateral includes insurance or securities which will be redeemed by the issuer upon surrender, or any accounts or deposits in
the possession of Seattle Bank, Seattle Bank may realize upon such Collateral without notice to Customer. If any notification of intended disposition of any of the Collateral is required by applicable law, then, if no greater period of notification
is required by applicable law, such notification will be deemed reasonable and properly given if mailed, postage prepaid, at least 10 days before any such disposition to the address of Customer appearing on the records of Seattle Bank. The proceeds
of any sale will be applied in the order that Seattle Bank, in its sole discretion, may choose. Customer agrees to pay all the costs and expenses of Seattle Bank in the collection of the Indebtedness and enforcement of Seattle Bank’s rights and
remedies in case of default, including, without limitation, reasonable attorneys’ fees. Seattle Bank will, to the extent required by law, apply any surplus after payment of the Indebtedness, provision for repayment to Seattle Bank of any
amounts to be paid or advanced under outstanding Commitments, and all costs of collection and enforcement to third parties claiming a secondary security interest in the Collateral, with any remaining surplus paid to Customer. Customer will be liable
to Seattle Bank for any deficiency remaining. 
 Section 4.3 Payment of Prepayment Charges Any prepayment fees or charges for which
provision is made, whether under the Regulations, the Credit Policy, or any applicable Advance Master Application, Advances Note, Advance Confirmation Advice or Swap Transaction, as the case may be, with respect to any Advances or Other Credit
Accommodations, will be payable at the time of any voluntary or involuntary payment of the principal of such Advances or Other Credit Accommodations prior to the originally scheduled maturity thereof, including, without limitation, payments that are
made as a part of a liquidation of Customer or that become due as a result of an acceleration pursuant to Section 4.1 of this Agreement, whether such payment is made by Customer, by a conservator, receiver, liquidator or trustee of or for
Customer, or by any successor to or any assignee of Customer. 
 Article V. Accounts 

Section 5.1 Deposit Accounts The Customer may open Accounts with the Seattle Bank subject to the Act, the Regulations, the Credit
Policy and any other policies adopted by the Seattle Bank from time to time in respect to Accounts and related services, including without limitation the wire transfer of funds. Any Customer’s funds deposited in Accounts shall be subject to
withdrawal or charge at any time and from time to time upon wire transfers or any other orders for the payment of money when made and drawn on behalf of the Customer by a person or persons authorized by Resolution of the Customer under
Section 6.7 below. The Seattle Bank is authorized to pay any such wire transfers or other orders, provided they are in the form prescribed by it, and to charge the Customer’s Accounts

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therefor, without inquiry as to the circumstances of issue or the disposition of the proceeds, even if drawn to the individual order of any authorized person or payable to others for his account.

 Section 5.2 Bank’s Reliance The Seattle Bank, if it acts in good faith and with ordinary care (and without liability if it
does so act), can charge the Accounts with orders received by the Seattle Bank by telephone, or otherwise orally, from any person acting for or purporting to act for the Customer as its officer or employee, for the transfer of funds to others,
including the person giving such instructions or payable to others for his account, or between Accounts of the Customer. All scheduled charges and fees adopted by the Seattle Bank from time to time in respect to Accounts and related services will be
charged monthly to such Accounts. 
 Section 5.3 Positive Balance Requirement The Customer shall maintain a net positive collected
balance in all of its Accounts. The Seattle Bank, shall have the option of closing or restricting the use of Accounts in which positive balances are not maintained. For each day the aggregate collected balance of an Account is negative, the Customer
shall pay such overdraft charges as are consistent with the scheduled charges and fees adopted by the Seattle Bank from time to time in respect to Accounts and related services. 
 Article VI. Miscellaneous 
 Section 6.1 General Representations and Warranties by
Customer. Customer hereby represents and warrants that, as of the date of this Agreement and the date of each Advance or Other Credit Accommodation, including any Commitment, made pursuant to this Agreement: 

 

	6.1.1	Customer is not, and neither the execution of nor the performance of any of the transactions or obligations of Customer under this agreement will, with the passage of
time, the giving of notice or otherwise, cause Customer to be: (i) in violation of its charter or articles of incorporation, by-laws, the Act, or the Regulations, any other law or administrative regulation, or any court decree; or (ii) in
default under or in breach of any indenture, contract, or other instrument or agreement to which Customer is a party or by which it or any of its property is bound. 

 

	6.1.2	Customer has full corporate power and authority and has received all corporate and governmental authorizations and approvals (including without limitation those
required under the Act and the Regulations) as may be required to enter into and perform its obligations under this Agreement, to borrow each Advance and to obtain each Other Credit Accommodation. 

 

	6.1.3	The information given by Customer in any document provided, or in any oral statement made, in connection with any application or request for an Advance or Other Credit
Accommodation, is true, accurate and complete in all material respects. 

 Section 6.2 Assignment Seattle Bank may
assign or negotiate to any other federal home loan bank or to any other person or entity, with or without recourse, any Indebtedness of Customer or participations therein, and Seattle Bank may assign or transfer all or any part of Seattle
Bank’s right, title, and interest in and to this Agreement and may assign and deliver the whole or any part of the Collateral to the transferee, which will succeed to all the powers and rights of Seattle Bank in respect thereof, and Seattle
Bank will thereafter be forever relieved and fully discharged from any liability or responsibility with respect to the transferred Collateral. Customer hereby acknowledges and agrees that any such disposition will give rise to a direct obligation of
Customer to the participant. Customer hereby authorizes Seattle Bank and each participant, in case of default by Customer under this Agreement, to proceed directly, by right of setoff or otherwise, against any assets of Customer which may at the
time of such default be in the respective hands of Seattle Bank or any such participant. Customer further agrees that Seattle Bank may furnish any information pertaining to Customer which is in the possession of Seattle Bank to any prospective
participant to assist it in evaluating such participation provided that any non-pubic information reasonably designated in writing to Seattle Bank by Customer as constituting non-public information will be furnished to such prospective participant
on a confidential basis. Customer may not assign or transfer any of its rights or obligations under this Agreement without the express prior consent of Seattle Bank, which may be granted or withheld in Seattle Bank’s sole discretion.

 Section 6.3 Discretion of Seattle Bank to Grant or Deny Advances Nothing contained in this Agreement or in any documents
describing or setting forth the Credit Policy or any other policy of Seattle Bank will be construed as an agreement or commitment on the part of Seattle Bank to grant Advances or extend Commitments or Other Credit Accommodations under this
Agreement, the right and power of Seattle Bank in its discretion to either grant or deny any of the foregoing being herein expressly reserved. 

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 Section 6.4 Amendment; Waivers No modification, amendment or waiver of any provision of this
Agreement or consent to any departure therefrom will be effective unless executed by the party against whom such change is asserted and will be effective only in the specific instance and for the purpose for which given. No notice to or demand on
Customer in any case will entitle Customer to any other or further notice or demand in the same, or similar or other circumstances. Any forbearance, failure or delay by Seattle Bank in exercising any right, power or remedy under this Agreement will
not be deemed to be a waiver thereof, and any single or partial exercise by Seattle Bank of any right, power or remedy under this Agreement will not preclude the further exercise thereof. Every right, power and remedy of Seattle Bank will continue
in full force and effect until specifically waived by Seattle Bank in writing. 
 Section 6.5 Exceptions to Credit Policy Customer
acknowledges and agrees that no exception to the Credit Policy requested of Seattle Bank by Customer shall be binding upon the Seattle Bank unless (i) approved in writing by the Seattle Bank’s authorized representative and
(ii) authorized by the Act and Regulations. 
 Section 6.6 Jurisdiction; Legal Fees In any action or proceeding brought by
Seattle Bank or Customer in order to enforce any right or remedy under this Agreement, the parties hereby consent to, and agree that they will submit to, the jurisdiction of the United States District Court for the Western District of Washington,
or, if such action or proceeding may not be brought in federal court, the jurisdiction of the courts of King County, Washington, Customer agrees that, if any action or proceeding is brought by Customer seeking to obtain any legal or equitable relief
against Seattle Bank under or arising out of this Agreement or any transaction contemplated hereby, and such relief is not granted by the final decision, after any and all appeals, of a court of competent jurisdiction, Customer will pay all
attorneys’ fees and other costs incurred by Seattle Bank in connection therewith, Customer agrees to reimburse Seattle Bank for all costs and expenses (including reasonable fees and out-of-pocket expenses of counsel for Seattle Bank) incurred
by Seattle Bank in connection with (i) the administration, enforcement, interpretation or preservation of Seattle Bank’s rights under this Agreement including, but not limited to, its rights in respect of any Collateral or the audit or
possession thereof, whether or not an Event of Default has occurred or any suit has been brought; (ii) Seattle Bank’s rights in any litigation, arbitration or supervisory, receivership, bankruptcy or other insolvency or regulatory
proceedings affecting Customer, any Collateral or any Advances, Other Credit Accommodations or Other Obligations; or (iii) Seattle Bank’s preparation of additional documentation for Advances, Other Credit Accommodations or Other
Obligations or any Collateral, or any amendments, approvals, consents, waivers or releases requested, required, proposed or done from time to time. 
 Section 6.7 Notices Except as provided in Subsection 6.8.3 below, any notice, advice, request, consent or direction given, made or withdrawn pursuant to this Agreement must be in writing or by
machine-readable electronic transmission, and will be deemed to have been given to and received by a party to this Agreement when mailed to such party at its address given above by first class mail, or if given by hand or by electronic transmission,
when actually received by such party at its principal office. 
 Section 6.8 Signatures of Customer; Resolution; Oral Requests

  

	6.8.1	The Secretary or the Assistant Secretaries of Customer will from time to time certify to Seattle Bank on forms provided by Seattle Bank the names and specimen
signatures of the persons authorized to apply on behalf of Customer to Seattle Bank for Advances and otherwise act for and on behalf of Customer in accordance with this Agreement. Such certifications are incorporated in this Agreement and made a
part of this Agreement and will continue in effect until expressly revoked by Customer notwithstanding that subsequent certifications may authorize additional persons to act for and on behalf of Customer. 

 

	6.8.2	Prior to or at the time of the execution and delivery of this Agreement, the Secretary or the Assistant Secretaries of Customer shall provide the Seattle Bank with a
certified copy of a resolution adopted by the Customer’s Board of Directors or other governing body (“Resolution”) approving this Agreement and authorizing designated officers or employees of the Customer to obtain Advances and Other
Credit Accommodations, open and use Accounts, and incur Other Obligations. The Seattle Bank may rely upon, and the Customer is estopped from denying, the authority of the persons designated in the Resolution or of the persons to whom such authority
has been delegated pursuant to the terms of the Resolution. 

  

	6.8.3	 Notwithstanding the preceding or any other provision of this Agreement, the Seattle Bank may, but is not obligated to, honor, and Customer shall be
bound by, any form of request, including an oral request, for Advances, Other Credit Accommodations or other services from Seattle Bank, whenever such requests are 

	 Federal Home Loan Bank of Seattle 
	 Advances, Security and Deposit Agreement 

PAGE 15 OF 18 : 05/04 

	 	 
made by persons purporting to act as officers or employees of Customer, if Seattle Bank acts in good faith and with ordinary care (and without liability if it does so act).

 Section 6.9 Recording Conversations. Customer for itself and its employees hereby authorizes and consents to
Seattle Bank’s electronic recording of, transcription of and use of all telephone conversations made by Customer’s employees to the Seattle Bank for the purpose of requesting Advances or Other Credit Accommodations. The period of time for
which such recordings are stored or whether transcriptions are made shall be determined by Seattle Bank. 
 Section 6.10 Stock Ownership
Requirement The Seattle Bank and the Customer acknowledge and agree that the Customer is subject to the Member Advance Stock Purchase Requirement and other terms and conditions set forth in the Capital Plan of the Seattle Bank. The Member
Advance Stock Purchase Requirement provides that the Customer hold a specified amount capital stock in the Seattle Bank in connection with Advance transactions. Currently, each Customer is required to hold Class B (1) stock with a par value
equal to three and one-half percent (3.5%) of the unpaid principal balances of Advances As set forth in the Capital Plan, the Board of Directors of the Seattle Bank may change the above percentage within a range of not less than two and
one-half percent (2.5%) or not greater than four and one-half percent (4.5%). The Customer agrees to be bound by any such change in the Member Advance Stock Purchase Requirement percentage. Any such change in the Member Advance Stock Purchase
Requirement will be applied as of the implementation date of the change to all new Advances made by the Seattle Bank to the Customer. In addition, the Customer agrees and acknowledges that it will be subject to all amendments to the Capital Plan,
that may be made from time to time. 
 Section 6.11 Force Majeure Any obligations of the Seattle Bank in connection with this
Agreement, any Commitment, or otherwise arising in connection with any Advance, Other Credit Accommodation, Account, Mortgage Purchase Program or other service, shall be excused to the extent delayed or prevented by reason of computer,
communications system or power failure, labor disturbances, governmental laws, orders or regulations, riots, insurrection, acts of terror, war or any other causes beyond the reasonable control of the Seattle Bank. In addition, the Seattle Bank shall
not be liable for the failure of any wire transfer, fedwire or other such system. 
 Section 6.12 Limitation of Damages If Seattle
Bank, in connection with this Agreement, any Commitment, or any Advance, Other Credit Accommodation, Account, Mortgage Purchase Program or other service, breaches any obligation of Seattle Bank to Customer not otherwise excused by this Agreement or
applicable law, Seattle Bank will be obligated to Customer only for Customer’s actual, direct damages, if any. Under no circumstances shall Seattle Bank be liable for, and Customer hereby forever waives, any special, indirect or consequential
damages or any punitive or exemplary damages. 
 Section 6.13 Applicable Law; Severability In addition to the terms and conditions
specifically set forth in this Agreement and any other related documentation, this Agreement, and all Advances granted and Commitments extended under this Agreement, will be governed by the statutory and common law of the United States and, to the
extent Federal law Incorporates or defers to state law, the laws (exclusive of the choice of law provisions) of the State of Washington. Notwithstanding the foregoing, the UCC of the State of Washington, as amended from time to time, will be deemed
applicable to this Agreement and to any Advance or Other Credit Accommodation made or Collateral pledged under this Agreement, except as otherwise required by the provisions of RCW 62A.9A-301 through 307. In the event that any portion of this
Agreement conflicts with applicable law, such conflict will not affect other provisions of this Agreement that can be given effect without the conflicting provision, and to this end the provisions of this Agreement are declared to be severable.

 Section 6.14 Successors end Assigns This Agreement will be binding upon and inure to the benefit of the successors and permitted
assigns of Customer and Seattle Bank. 
 Section 6.15 Amendment and Restatement of Any Prior Agreement This Agreement amends and
restates the terms of, and is not a notation of, any previous agreements between the parties or their predecessors entitled “Advances, Security and Deposit Agreement,” “Deposit Account Resolution” or “Advances Agreement,
Pledge Agreement and Security Agreement.” This Agreement shall not release or impair the priority position of any existing Collateral for any existing Collateral securing any existing Indebtedness. 

NOTICE: ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, TO EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER
WASHINGTON LAW. 

	 Federal Home Loan Bank of Seattle 
	 Advances, Security and Deposit Agreement 

PAGE 16 OF 18 : 05/04 

 IN WITNESS WHEREOF, Customer and Seattle Bank have caused this Agreement to be signed in their names by
their duly authorized officers as of the date first above mentioned. 
  

			
	 HOMESTREET BANK

	 (Full Corporate Name of Customer)

		
	 By:
	 	 /s/ Bruce W. Williams
 (Signature of Authorized Officer)

		
		 	 Bruce W. Williams
 (Name of Authorized Officer)

		
		 	 Chief Executive Officer
 (Title of Authorized Officer)

		
	 and
	 	
		
	 By:
	 	 /s/ Debra L. Johnson
 (Signature of Authorized Officer)

		
		 	 Debra L. Johnson
 (Name of Authorized Officer)

		
		 	 EVP, Chief Financial Officer
 (Title of Authorized Officer)

	
	 FEDERAL HOME LOAN BANK OF SEATTLE

		
	 By:
	 	 /s/ Dale Jeschke
 (Signal of Authorized Officer)

		
		 	 Dale Jeschke
 (Name of Authorized Officer)

		
		 	 Assistant Vice President-Interim Credit Officer

(Title of Authorized Officer)

	 Federal Home Loan Bank of Seattle 
	 Advances, Security and Deposit Agreement 

PAGE 17 OF 18 : 05/04 

 CORPORATE ACKNOWLEDGMENT 

 

					
			
	STATE OF	 	Washington	 	)
		 	(State Where Signed)	 	
		 		 	      ) ss.
	COUNTY OF	 	King	 	)
		 	        (County Where Signed)	 	

  

	
	 I certify that I know or have satisfactory evidence that
                    Bruce W.
Williams                             is the
                                   
                                         
                                 (Name of Authorized officer of
Customer)
 person who appeared before me, and said person acknowledged that [he/she] signed this instrument, on oath stated

that [he/she] was authorized to execute the instrument and acknowlege it as the
                    CEO                    
             of

	                              
                                         
                                         
                                      (Title of
Authorized Officer)
	                HomeStreet
Bank                     to be the free and voluntary act of such party for the uses and purposes
	(Full Corporate Name of Customer)

					
	mentioned in the instrument.	  	/s/ Kathryn K.
Ebel                                         
                     
		  	    (Signature of Notary)
		
	                           
 9/21/04                        	  	Kathryn K.
Ebel                                         
                 
	(Date of Notary Acknowledgement)	  	(Please print notary’s legibly.)
		
		  	NOTARY PUBLIC in and for the State of   Washington      ,
		  	residing at
        Seattle                                
    .
		  	                        (City Where Notary
Resides)
		
	                notary seal of Kathryn K.
Ebel                                    	  	My commission expires:         3/30/05             ,
	(include notary seal in space above this line.)	  	

 CORPORATE ACKNOWLEDEGMENT 
  

					
			
	STATE OF	 	Washington	 	)
		 	(State Where Signed)	 	
		 		 	      ) ss.
	COUNTY OF	 	King	 	)
		 	        (County Where Signed)	 	

  

	
	 I certify that I know or have satisfactory evidence that
                    Debra L.
Johnson                             is the
                                   
                                         
                                     (Name of Authorized
officer of Customer)
 person who appeared before me, and said person acknowledged that [he/she] signed this instrument, on oath
stated
 that [he/she] was authorized to execute the instrument and acknowlege it as the
                    EVP/CFO                    
             of

	                              
                                         
                                         
                                         
 (Title of Authorized Officer)
	                HomeStreet
Bank                     to be the free and voluntary act of such party for the uses and purposes
	(Full Corporate Name of Customer)

					
	mentioned in the instrument.	  	/s/ Kathryn K.
Ebel                                    
		  	    (Signature of Notary)
		
	                           
 9/21/04                        	  	 Kathryn K.
Ebel                                         
             

	(Date of Notary Acknowledgement)	  	 (Please print notary’s legibly.)

		
		  	NOTARY PUBLIC in and for the State of   Washington      ,
		  	residing at
        Seattle                                
    .
		  	                        (City Where Notary
Resides)
		
	                 notary seal of
Kathryn K.
Ebel                                    
	  	My commission expires:         3/30/05             ,
	 (include notary seal in space above this line.)
	  	

	 Federal Home Loan Bank of Seattle 
	 Advances, Security and Deposit Agreement 

PAGE 18 OF 18 : 05/04Letter Agreement, dated January 5, 2007

 Exhibit 10.25 

 

 

 January 5, 2007 
 Federal Reserve Bank of San Francisco 
 Attn: Steve Arbogast, Credit & Risk, MS 830

 101 Market Street 
 San Francisco, CA
94105-1530 
 Dear Mr. Arbogast: 

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). 
 Any notices required under the Lending Agreement may be directed to the following department(s): 

Finance Department 
 Attn: Debra L. Johnson 
 HomeStreet Bank 

601 Union Street, Suite 2000 
 Seattle, WA 98101 
  

			
	HomeStreet Bank
	Full Legal Name of Borrower
		
	By:	 	/s/ Debra L. Johnson
		 	Authorized signature(s)

  

	
	Debra L. Johnson
	Name(s)

  

	
	Executive Vice President, Chief Financial Officer
	Title(s)

  

							
	HomeStreet Bank	  	 HOME OFFICE
 2000 Two Union
Square
 601 Union Street
 Seattle, WA
98101
	  	 OFFICE 206-623-3050
 TOLL FREE
800-654-1075
 www.homestreet.com
	  	
 

 Federal Reserve Banks 

Operating Circular No. 10 
 LENDING 
 Effective October 15, 2006 

 FEDERAL RESERVE BANKS 

OPERATING CIRCULAR NO. 10 
 Effective October 15, 2006 
 LENDING 

(Click CTRL + section or page number to go directly to the section) 

 

							
	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
	  			

  

 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. 

  

					
	Operating Circular No. 10	  		  	1
	Effective October 15, 2006	  		  	

 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; 

  

					
	Operating Circular No. 10	  		  	2
	Effective October 15, 2006	  		  	

	 	(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. 

  

					
	Operating Circular No. 10	  		  	3
	Effective October 15, 2006	  		  	

 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. 

  

					
	Operating Circular No. 10	  		  	4
	Effective October 15, 2006	  		  	

	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: 

  

 

	*	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. 

 

  

					
	Operating Circular No. 10	  		  	5
	Effective October 15, 2006	  		  	

	 	(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 

  

					
	Operating Circular No. 10	  		  	6
	Effective October 15, 2006	  		  	

	 	 
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; 

  

					
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	Effective October 15, 2006	  		  	

	 	(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. 

  

	*	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. 

  

					
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	Effective October 15, 2006	  		  	

	 	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

  

					
	Operating Circular No. 10	  		  	9
	Effective October 15, 2006	  		  	

 
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;

  

					
	Operating Circular No. 10	  		  	10
	Effective October 15, 2006	  		  	

	 	(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; 

  

					
	Operating Circular No. 10	  		  	11
	Effective October 15, 2006	  		  	

	 	(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; 

  

					
	Operating Circular No. 10	  		  	12
	Effective October 15, 2006	  		  	

	 	(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 

  

					
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	Effective October 15, 2006	  		  	

	 	 
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 

  

					
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	Effective October 15, 2006	  		  	

	 	 
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. 

  

					
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	Effective October 15, 2006	  		  	

	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. 

  

					
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	Effective October 15, 2006	  		  	

	 	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

  

					
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	Effective October 15, 2006	  		  	

	 	 
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. 

 

	*	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. 

  

					
	Operating Circular No. 10	  		  	18
	Effective October 15, 2006	  		  	

	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. 

  

					
	Operating Circular No. 10	  		  	19
	Effective October 15, 2006

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