Document:

EX-10.6

 

EXHIBIT 10.6

Advance, Pledge and Security Agreement

(Specific Pledge)

	 	 	 	 	 
	Institution:

	 	 	 	 
	 

	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

This Advance, Pledge and Security Agreement (Agreement) is made by and between the Federal Home
Loan Bank of Topeka (FHLBank) and the above-described institution (Institution).

CONTENTS

	 

	 	DEFINITIONS
	1.1

	 	Defined Terms
	 

	 	ADVANCES AND OTHER INDEBTEDNESS
	2.1

	 	Advance Procedures; Demand Deposit Account
	2.2

	 	Estoppel
	2.3

	 	Obligation to Repay
	2.4

	 	Funding Commitments; Ineligibility
	2.5

	 	Stock Purchase
	 

	 	SECURITY AGREEMENT
	3.1

	 	Specific Pledge; Required Collateral Amount
	3.2

	 	Perfection of Security Interest
	3.3

	 	Release of Collateral
	3.4

	 	Institution’s Representations and Warranties Concerning Collateral
	3.5

	 	Reports, Audits and Access
	3.6

	 	FHLBank’s Responsibility as to Collateral
	3.7

	 	Application of Payments
	 

	 	DEFAULT; REMEDIES; POWER OF ATTORNEY
	4.1

	 	Events of Default; Acceleration
	4.2

	 	Remedies
	4.3

	 	Power of Attorney
	4.4

	 	Payment of Prepayment Charges
	4.5

	 	Default Rate
	4.6

	 	Sale of Collateral
	 

	 	MISCELLANEOUS
	5.1

	 	General Representations and Warranties
	5.2

	 	FIRREA Covenant
	5.3

	 	Good Faith; Liability of Bank
	5.4

	 	Assignment of Indebtedness
	5.5

	 	Discretion to Deny Advances
	5.6

	 	Access to Bank Records
	5.7

	 	Amendments; Waivers
	5.8

	 	Jurisdiction; Legal Fees
	5.9

	 	Applicable Law; Severability
	5.10

	 	Successors and Assigns
	5.11

	 	Notices
	5.12

	 	Consent to Receive Information
	5.13

	 	Recorded Conversations
	5.14

	 	Entire Agreement
	5.15

	 	Counterparts
	 	 	 

FHLBank and the Institution agree as follows:

DEFINITIONS

	1.1	 	Defined Terms. The following terms shall have the following meanings:

	 	a.	 	“Act” means the Federal Home Loan Bank Act, as amended, 12 U.S.C. 1421, et seq.
	 	b.	 	“Advance” or “Advances” means any and all loans or other extensions of credit,
including without limitation Interest Rate Exchange and Option Transactions, letters of
credit, credit enhancement obligations in connection with acquired member assets,
guarantees, insurance company funding agreements, or other arrangements intended to
facilitate transactions between the Institution and third parties (but excluding any
obligations that FHLBank may now or hereafter have to honor such as items or transfer
orders under a depository or similar agreement between the Institution and FHLBank),
regardless of whether FHLBank’s obligation is contingent upon the occurrence or
nonoccurrence of any condition, and including all loans or other extensions of credit by
FHLBank to the Institution prior to the date hereof.
	 	c.	 	“Business Day” means any day that the Federal Reserve Bank of Kansas City is open
for business.

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	 	d.	 	“Capital Stock” means all of the capital stock of FHLBank, of any class or classes,
owned by the Institution and all payments that have been or hereafter are made on account
of any subscription for such capital stock and all unpaid dividends on such capital
stock.
	 
	 	e.	 	“Collateral” means all assets and property, including the proceeds thereof,
assigned, transferred or pledged to FHLBank by the Institution pursuant to Section 3.1 of
the Agreement or otherwise.
	 
	 	f.	 	“Commitment” or “Commitments” means any agreement under which FHLBank is obligated
to make an Advance to the Institution.
	 
	 	g.	 	“Confirmation” means a written or machine-readable electronic transmission issued
by FHLBank from time to time confirming an Advance, including the notation of the Advance
on the Institution’s demand deposit account statement and schedules to insurance company
funding agreements.
	 
	 	h.	 	“Member Products Policy” means the Member Products Policy of FHLBank as published
from time to time or, if FHLBank ceases to have a policy with that title, any other
policy or policies of FHLBank governing credit, lending, collateral, pricing and acquired
member assets.
	 
	 	i.	 	“Eligible Collateral” means Collateral, other than Capital Stock, which: (1)
qualifies as security for Advances under the terms and conditions of the Act and the
Regulations and satisfies the requirements that may be established by FHLBank from time
to time; and (2) is owned by the Institution free and clear of any liens, encumbrances or
interests other than the interest of FHLBank hereunder.
	 
	 	j.	 	“Indebtedness” means all indebtedness of the Institution to FHLBank, whether now
outstanding or hereafter incurred, including all Advances and any other sums owed by the
Institution to FHLBank pursuant to any provision hereof, and all other obligations and
liabilities of the Institution to FHLBank.
	 
	 	k.	 	 “Lending Value” means the value that FHLBank shall from time to time, in its sole
discretion, ascribe to the various types of Collateral.
	 
	 	l.	 	“Regulations” means the regulations of the Federal Housing Finance Board or its
successor, as amended, 12 CFR Chapter IX.
	 
	 	m.	 	“Required Collateral Amount” means the aggregate dollar amount that FHLBank may
specify from time to time with respect to each Advance and any other obligation or
liability of the Institution to FHLBank. FHLBank may increase or decrease the Required
Collateral Amount at any time.
	 
	 	n.	 	“Interest Rate Exchange and Option Transaction” or “Interest Rate Exchange and
Option Transactions” means any and all interest rate swaps, interest rate caps, floors or
collars, options, futures, forward contracts, currency exchange transactions or similar
transactions entered into between FHLBank and the Institution.

ADVANCES AND OTHER INDEBTEDNESS

	2.1	 	Advance Procedures; Demand Deposit Account. All Advances are subject to and governed
by the Member Products Policy, which is incorporated in and made a part of this Agreement.
Periodically, the Institution may apply to FHLBank for Advances in accordance with the
procedures established by FHLBank. Unless otherwise agreed to in writing by FHLBank, each
Advance shall be evidenced by a Confirmation and shall be made by crediting a demand deposit
account of the Institution with FHLBank and payments of interest, principal or other amounts
owed to FHLBank shall be made by debiting such account. The Institution shall maintain
sufficient available balances in the account to fund all payments due to FHLBank.

	2.2	 	Estoppel. Failure of the Institution to deliver a written notice to FHLBank
specifying any disputed term or condition of an Advance within ten (10) Business Days after
FHLBank mails by first-class mail or transmits electronically a Confirmation to the
Institution shall constitute the agreement and acknowledgment by the Institution that the
terms and conditions of the Advance as stated in the Confirmation are valid and are those that
the Institution requested and by which the Institution agreed to be bound. The Institution
shall thereafter be estopped from asserting any claim or defense with respect to the repayment
of such Advance and all interest, fees and other charges thereon or in connection therewith.

	2.3	 	Obligation to repay. The Institution unconditionally agrees to repay all Advances
and other Indebtedness, together with all interest and any fees, costs and expenses in
connection therewith, at the applicable interest rate per annum provided in the Confirmation
pertaining thereto, all upon the terms and conditions stated in the applicable Confirmation,
FHLBank’s Member Products Policy for such type of Advance or Indebtedness and as otherwise
specified herein. Accrued interest on each Advance shall be due and payable at the times
specified in FHLBank’s Member Products Policy, Confirmation or as otherwise specified in
writing by FHLBank.

	2.4	 	Funding Commitments; Ineligibility. In the event the Institution’s access to
Advances is restricted by any applicable law or regulatory directive, FHLBank shall not fund
outstanding Commitments to the Institution. The

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	 	 	Institution shall immediately notify FHLBank
if it becomes ineligible for Advances under any applicable law or regulatory directive.

	2.5	 	Stock Purchase. The Institution unconditionally agrees that whenever it receives an
Advance or transacts any other business with FHLBank, it shall purchase Capital Stock as and
when required by FHLBank’s Capital Plan, Member Products Policy, and any applicable laws,
Regulations, resolutions of FHLBank’s board of directors and provisions of FHLBank’s
Organization Certificate or bylaws, all as in effect at the time the Advance or other
transaction is entered into (or, if at that time FHLBank does not have a Capital Plan, any
other plans or policies of FHLBank governing Capital Stock and capital structure). The
Institution authorizes FHLBank to effect such purchase by exchanging shares of classes of
Capital Stock held by the Institution and/or debiting the Institution’s accounts at
FHLBank in accordance with such Capital Plan, Member Products Policy, and any applicable laws,
Regulations, resolutions of FHLBank’s board of directors and provisions of FHLBank’s
Organization Certificate or bylaws, as amended.

SECURITY AGREEMENT

	3.1	 	Specific Pledge; Required Collateral Amount.

	 	a.	 	As security for all present and future Indebtedness, the Institution hereby
assigns, transfers and pledges to FHLBank, and grants to FHLBank a security interest in,
the following (1) Capital Stock; (2) all accounts and deposit accounts of the Institution
held by FHLBank; (3) all property specified and described by the Institution from time to
time on schedules or forms prescribed by FHLBank; (4) all property delivered from time to
time by the Institution to FHLBank or FHLBank’s custodian; and (5) the proceeds of any of
the foregoing.
	 
	 	b.	 	The Institution shall at all times have granted FHLBank a security interest in an
amount of Eligible Collateral that has a Lending Value at least equal to the Required
Collateral Amount applicable to the Institution.
	 
	 	c.	 	While the Institution may, except as provided below, retain the documents
evidencing any Collateral it has pledged to FHLBank, it is specifically understood and
agreed that the Institution holds such documents solely for the benefit, and subject to
the direction and control, of FHLBank.
	 
	 	d.	 	The Institution shall not assign, pledge, transfer, create any security interest
in, sell or otherwise dispose of any Collateral without the prior written consent of
FHLBank.
	 
	 	e.	 	FHLBank may take such steps as it reasonably deems necessary to protect its
security interest in Collateral including, without limitation, filing financing
statements, requiring delivery, and requiring the pledging and/or perfection of
additional collateral whether or not such additional collateral is Eligible Collateral.

	3.2	 	Perfection of Security Interest.

	 	a.	 	Immediately upon FHLBank’s request, and from time to time thereafter, the
Institution shall take all actions as FHLBank shall reasonably deem necessary or
appropriate to perfect FHLBank’s security interest in the Collateral, including but not
limited to the making, execution and delivery to FHLBank of such assignments, listings,
powers, financing statements or other instruments and documents as FHLBank may require.
	 
	 	b.	 	The Institution agrees to pay to FHLBank upon demand such fees and charges as may
be assessed by FHLBank to cover overhead and other costs relating to the perfection of
FHLBank’s security interest in the Collateral (including without limitation the receipt,
holding and redelivery of Collateral and to reimburse FHLBank upon request for all
recording fees) and other reasonable expenses, disbursements and advances incurred or
made by FHLBank in connection therewith (including the reasonable compensation and the
expenses and disbursements of any bailee that may be appointed by FHLBank hereunder, and
the agents and legal counsel of FHLBank and of such bailee).
	 
	 	c.	 	In the event any Collateral that was Eligible Collateral ceases to be Eligible
Collateral, the Institution will promptly notify FHLBank in writing of the reason such
Collateral has ceased to be Eligible Collateral and request the release of such
Collateral pursuant to Section 3.3.
	 
	 	d.	 	The form and sufficiency of all documents pertaining to the Collateral shall be
satisfactory to FHLBank. Any Collateral that is not satisfactory to FHLBank may be
rejected by FHLBank or may have a Lending Value ascribed thereto that shall be less than
the value normally ascribed thereto under FHLBank’s Member Products Policy, or as FHLBank
may otherwise specify.

	3.3	 	Release of Collateral. Upon receipt by FHLBank of a written request from the
Institution asking for the release of any Collateral, FHLBank shall promptly release to the
Institution, at the Institution’s expense, the Collateral specified in said written request.
Notwithstanding anything to the contrary herein, while an Event of Default hereunder shall
have occurred and be continuing, or at any time that FHLBank’s records indicate that such
release would reduce the

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	 	 	Lending Value of the Institution’s Collateral below the Required
Collateral Amount, or at any time that the FHLBank reasonably and in good faith deems itself
insecure, FHLBank may refuse such request.

	3.4	 	Institution’s Representations and Warranties Concerning Collateral. The Institution
represents and warrants to FHLBank, as of the date hereof and as of each date on which there
shall be any outstanding Indebtedness or Commitment, as follows:

	 	a.	 	The Institution owns and has title to all Collateral and has the right and
authority to grant a security interest to FHLBank in all Collateral and to subject all
Collateral to this Agreement.
	 
	 	b.	 	All Collateral that the Institution pledges to FHLBank meets the standards and
requirements for Eligible Collateral from time to time established by FHLBank, the Act
and the Regulations.
	 
	 	c.	 	The Institution has not conveyed or otherwise created, and there does not otherwise
exist, any participation interest (except as permitted by the Member Products Policy) or
other direct, indirect, legal or beneficial interest, lien or encumbrance, in any
Collateral that the Institution has pledged to FHLBank, in favor of any person or entity
other than FHLBank and the Institution, except as specifically communicated in writing to
FHLBank.

	3.5	 	Reports, Audits and Access.

	 	a.	 	The Institution shall provide FHLBank with written periodic reports containing such
information on the Collateral as FHLBank shall require from time to time, including
listings of mortgages and securities, unpaid principal balances thereof and
certifications concerning the status of payments of mortgages and of taxes and insurance
on property securing mortgages. The Institution shall give FHLBank access at all
reasonable times to Collateral in the possession of the Institution and to the books and
records of account of the Institution relating to the Collateral for the purpose of
permitting FHLBank to examine, verify or reconcile the Collateral and the reports of the
Institution to FHLBank thereon.
	 
	 	b.	 	All Collateral and the satisfaction by the Institution of the Required Collateral
Amount shall be subject to periodic audit and verification by or on behalf of FHLBank.
Such audits and verifications may occur without notice during the Institution’s normal
business hours or upon reasonable notice at such other times as FHLBank may reasonably
request. The Institution shall provide access to, and shall make adequate working
facilities available to, the representatives or agents of FHLBank for purposes of such
audits and verifications. The Institution agrees to pay to FHLBank such reasonable fees
and charges as may be assessed by FHLBank to cover overhead and other costs relating to
such audits and verifications.
	 
	 	c.	 	The Institution shall furnish to FHLBank annually, if FHLBank requests, an audit
report prepared by an external independent auditor of the Institution in such form as
FHLBank may require certifying the accuracy of any or all information required to be
given to FHLBank by the Institution with respect to the Collateral, and
copies of any available audited financial statements, management letters and directors’
exams in regard to the Institution.
	 
	 	d.	 	In order for FHLBank to adequately assess and monitor the financial and business
condition of the Institution, the Institution authorizes FHLBank to obtain all
information, examination reports and all other reports, and any regulatory notices,
actions or orders, in paper or electronic form, concerning or relating to the Institution
or its affiliates and prepared or issued by or for any agency or other governmental
subdivision, department, division, office, board, bureau or other instrumentality that
regulates or examines the Institution. FHLBank shall take reasonable precautions to
maintain the confidentiality of all information, reports and other documents obtained
under this Section 3.5.
	 
	 	e.	 	If the Lending Value of the Eligible Collateral pledged by the Institution shall at
any time fall below the Required Collateral Amount, the Institution shall immediately
notify FHLBank.

	3.6	 	Bank’s Responsibility as to Collateral. In the event that FHLBank shall take
possession of any Collateral hereunder, FHLBank’s duty as to such Collateral shall be solely
to use reasonable care in the custody and preservation of the Collateral in its possession.
This duty shall not require FHLBank to take any steps necessary to preserve rights against
prior parties or the duty to send notices, perform services or take any action in connection
with the management of the Collateral. The Institution shall make and maintain copies,
microfilm or other recordings of all Collateral delivered to FHLBank.

	3.7	 	Application of Payments. FHLBank may, in its sole discretion, apply any payments by
or recovery from the Institution, which are received by FHLBank without any designation from
the Institution (at the time of such payment or recovery) as to the intended application
thereof, at such time and in such manner and order of priority as FHLBank shall deem
appropriate.

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DEFAULT; REMEDIES; POWER OF ATTORNEY

	4.1	 	Events of Default; Acceleration. Upon the occurrence of and during the continuation
of any of the following events or conditions of default (Event of Default), FHLBank may at its
option and notwithstanding any other provision hereof, by a notice to the Institution, declare
all Indebtedness, including but not limited to any accrued interest and any prepayment charges
that are provided for upon payment of an Advance before the date(s) scheduled for repayment,
to be immediately due and payable, without presentment, demand, protest or any further notice:

	 	a.	 	Failure of the Institution to keep sufficient available balances on deposit with
FHLBank to pay any interest, principal or other amount then due and owing to FHLBank one
(1) Business Day after FHLBank gives notice to the Institution that its available
balances on deposit with FHLBank are insufficient to pay amounts then due and owing; or
	 
	 	b.	 	Continued failure of the Institution to perform any promise or obligation or to
satisfy any condition or liability contained in this Agreement for five (5) Business Days
after FHLBank gives notice to the Institution of such failure; or
	 
	 	c.	 	Continued failure of the Institution to provide adequate Eligible Collateral as
required by FHLBank for three (3) Business Days after FHLBank gives notice to the
Institution of such failure unless the Institution shall reduce its Required Collateral
Amount during such three (3) Business Day period such that the Institution has sufficient
Eligible Collateral; or
	 
	 	d.	 	Any suspension of payment by the Institution to any creditor of sums due or the
occurrence of any event that results (or which with the giving of notice or passage of
time or both will result) in acceleration of the maturity of any indebtedness of the
Institution to others under any security agreement, indenture, loan agreement or other
undertaking, provided that such indebtedness is a material amount with respect to the
Institution and is not subject to a good faith dispute, or the Institution’s admission
that it is unable to pay its debts as they mature; or
	 
	 	e.	 	Appointment of a trustee, conservator, receiver, liquidator, custodian or similar
official for the Institution, or for substantially all of the Institution’s property, or
the entry of a judgment, decree or administrative decision adjudicating the Institution
insolvent or bankrupt, or the commencement of proceedings seeking any of the foregoing if
such proceedings have not been dismissed within 30 calendar days; or
	 
	 	f.	 	Sale by the Institution of all or substantially all of the Institution’s assets or
the taking of any action by the Institution to liquidate or dissolve; or
	 
	 	g.	 	Termination of the Institution’s membership in FHLBank or the Institution’s ceasing
to be a type of financial institution that is eligible under the Act to become a member
of FHLBank; or
	 
	 	h.	 	Merger, consolidation or other combination of the Institution with an entity that
is not a member of FHLBank if the nonmember entity is the surviving entity in such
transaction; or
	 
	 	i.	 	FHLBank determines that any representation or warranty made or furnished by the
Institution, its employees or other representatives to FHLBank, in this Agreement or in
any other manner, in connection with any Advance or other Indebtedness or Collateral, is
incorrect or misleading in any material respect; or
	 
	 	j.	 	FHLBank reasonably and in good faith determines that a material adverse change has
occurred in the financial condition of the Institution that materially impairs its
ability to pay its debts as they mature.

	4.2	 	Remedies. Upon the occurrence of any Event of Default, FHLBank shall have all of the
rights and remedies provided by applicable law, which shall include, but not be limited to,
all of the remedies of a secured party under the Uniform Commercial Code as in effect in the
State of Kansas. In addition, FHLBank may take immediate possession of any of the Collateral
or any part thereof wherever the same may be found. FHLBank may sell, assign and deliver the
Collateral or any part thereof to public or private sale for such price as FHLBank deems
appropriate without any liability for any loss due to decrease in the market value of the
Collateral during the period held. FHLBank shall have the right to purchase all or part of
the Collateral at such sale. If the Collateral includes instruments or securities that will
be redeemed by the issuer upon surrender, or any accounts or deposits in the possession of
FHLBank, FHLBank may realize upon such Collateral without notice to the Institution. If any
notification of intended disposition of any of the Collateral is required by applicable law,
such notification shall be deemed reasonable and properly given if mailed, postage prepaid, at
least five (5) Business Days before any such disposition to the address of the Institution
appearing on the records of FHLBank. Upon the occurrence of any Event of Default, FHLBank
may, in its sole discretion, apply any payment by or recovery from the Institution or any sum
realized from Collateral, at such time and in such manner and order of priority as FHLBank
shall deem fit, regardless of any manifestation of any contrary intention or desire on the
part of the Institution or the provisions of any other agreement between FHLBank and the
Institution. The Institution agrees that FHLBank may exercise its right of setoff upon the

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	 	 	occurrence of an Event of Default in the same manner as if the Advances and Commitments were
unsecured. Notwithstanding any other provision hereof, upon the occurrence of any Event of
Default at any time when all or part of the obligations of the Institution to FHLBank
hereunder shall be the subject of any guarantee by a third party for FHLBank’s benefit and
there shall be other outstanding obligations of the Institution to FHLBank that are not so
guaranteed but that are secured by the Collateral, then any sums realized by FHLBank from the
Collateral, or from any other Collateral pledged or furnished to FHLBank by the Institution
under any other agreement, shall be applied first to the satisfaction of such other
nonguaranteed obligations and then to the Institution’s guaranteed obligations hereunder. The
Institution agrees to pay all the costs and expenses of FHLBank in the collection of the
Indebtedness and enforcement and preservation of FHLBank’s rights and remedies in case of
default, including, without limitation, reasonable attorneys’ fees. FHLBank in its discretion
may apply any surplus after payment of Indebtedness, provision for repayment to FHLBank of any
amounts to be paid 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 the Institution. The Institution shall be liable to FHLBank for any
deficiency remaining.

	4.3	 	Power of Attorney. After the occurrence of an Event of Default, FHLBank may in its
discretion, in its own name or in the name of its nominee or of the Institution, do any or all
things and take any and all actions that are pertinent to the protection of FHLBank’s interest
hereunder and, if such actions are subject to the laws of a state, are lawful under the laws
of the State of Kansas, including the following:

	 	a.	 	Terminate any consent given hereunder;
	 
	 	b.	 	Notify obligors on any Collateral to make payments thereon directly to FHLBank;
	 
	 	c.	 	Endorse any Collateral that is in the Institution’s name or that has been endorsed
by others to the Institution’s name;
	 
	 	d.	 	Enter into any extension, compromise, settlement or other agreement relating to or
affecting any Collateral;
	 
	 	e.	 	Take any action the Institution is required to take or that is otherwise necessary
to: (1) sign and record a financing statement or otherwise perfect a security interest
in any or all of the Collateral; or (2) to obtain, preserve, protect, enforce or collect
the Collateral;
	 
	 	f.	 	Take control of any funds or other proceeds generated by or arising from the
Collateral and use the same to reduce Indebtedness as it becomes due; and
	 
	 	g.	 	Cause the Collateral to be transferred to FHLBank’s name or the name of its
nominee.

	 	 	The Institution hereby appoints FHLBank as its true and lawful attorney, for and on behalf of
the Institution and in its name, place and stead, to prepare, execute and record endorsements
and assignments to FHLBank of all or any item of Collateral (including the identification and
listing, by exhibit prepared by FHLBank or otherwise, of mortgage loans constituting such
Collateral), giving or granting to FHLBank, as such attorney, full power and authority to do
or perform every lawful act necessary or proper in connection therewith as fully as the
Institution could or might do. The Institution hereby ratifies and confirms all that FHLBank
shall lawfully do or cause to be done by virtue of this special power of attorney. This
special power of attorney (i) is granted for a period commencing on the date of the Event of
Default and continuing until the discharge of all Indebtedness and all obligations of the
Institution hereunder, (ii) is coupled with an interest, and (iii) is irrevocable for the
period granted. As the Institution’s true and lawful attorney-in-fact, FHLBank shall have no
responsibility to take any steps necessary to preserve rights against other parties or the
duty to send notices, perform services or take any action in connection with the management of
the Collateral.

	4.4	 	Payment of Prepayment Charges. Any prepayment fees or charges for which provision is
made, whether under a Confirmation or otherwise, with respect to any Advance shall be payable
at the time of any voluntary or involuntary payment of the principal of such Advance prior to
the originally scheduled maturity thereof. This shall include, without limitation, payments
that are made in connection with the liquidation of the Institution or that become due as a
result of an acceleration by FHLBank pursuant to Section 4.1, whether such payment is made by
the Institution, by a trustee, conservator, receiver, liquidator, custodian or similar
official, of or for the Institution, or by any successor to or any assignee of the
Institution. The Institution acknowledges and agrees that the damages incurred by FHLBank due
to a prepayment of an Advance will be difficult to ascertain at the time of such prepayment
and, in lieu thereof, the Institution and FHLBank agree that the formula for calculation of
the prepayment fee (or for the calculation of the fee payable upon prepayment of a
non-prepayable Advance) set forth in the Confirmation or in the Member Products Policy at the
time the Advance is issued constitutes a fair, reasonable and good faith estimate of the
damages suffered by FHLBank because of such prepayment and is therefore payable as a
prepayment fee or charge.

	4.5	 	Default Rate. Any payment of principal or interest or any other sum due hereunder,
if not paid when due (whether at stated maturity, by acceleration or otherwise) shall bear
interest, to the maximum extent permitted by law, at a rate

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	 	 	per annum for each day during the
period commencing on the due date thereof until such amount shall be paid in full equal to 315
basis points above the previous business day’s daily effective federal funds rate as provided
in Federal Reserve Statistical Release H.15 and daily updates thereto, or any equivalent
successor rate, release or publication, or as otherwise set forth in the Member Products
Policy.
	 
	4.6	 	Sale of Collateral. In view of the possibility that federal and state securities and
other laws may impose certain restrictions on the method by which sale of the Collateral may
be effected, FHLBank and the Institution agree that any sale of the Collateral as a result of
an Event of Default shall be deemed “commercially reasonable” regardless of whether the notice
or manner of such sale contains provisions or imposes, or is subject to, conditions or
restrictions deemed appropriate to comply with the Securities Act of 1933 or any other
applicable federal or state securities or other law. It is further agreed that from time to
time FHLBank may attempt to sell the Collateral by means of private placement. In so doing,
FHLBank may restrict the bidders and prospective purchasers to those who will represent and
agree that they are purchasing for investment only and not for distribution, or otherwise
impose restrictions deemed appropriate by FHLBank for the purpose of complying with the
requirements of applicable securities laws. FHLBank may solicit offers to buy such
Collateral, for cash or otherwise, from a limited number of investors deemed by FHLBank to be
responsible parties who might be interested in purchasing such Collateral. If FHLBank
solicits offers from at least three (3) such investors, then the acceptance by FHLBank of the
highest offer obtained therefrom (whether or not three (3) offers are obtained) shall be
deemed to be a commercially reasonable method of disposing of the Collateral.

MISCELLANEOUS

	5.1	 	General Representations and Warranties. The Institution hereby represents and
warrants that to the best of its knowledge as of the date hereof and as of each date on which
there shall be any outstanding Indebtedness or Commitment:

	 	a.	 	The Institution is not now, and neither the execution of nor the performance of any
of the transactions or obligations of the Institution under this Agreement shall, with
the passage of time, the giving of notice, or otherwise, cause the Institution to be: (1)
in violation of its charter or articles of incorporation, by-laws, the Act or the
Regulations, any other law or administrative regulation, any court decree or any order of
any regulatory authority or (2) in default under or in breach of any indenture, contract
or other instrument or agreement to which the Institution is a party or by which the
Institution or any of its property may be bound; in each case so as to materially affect
the Institution’s ability to perform its obligations under this Agreement.
	 
	 	b.	 	The Institution has full corporate power and authority and has received all
corporate and governmental authorizations and approvals as may be required to enter into
and perform its obligations under this Agreement and to borrow each Advance.
	 
	 	c.	 	The information given by the Institution in any document provided, or in any oral
statement made, in connection with an application or request for an Advance or a
Commitment, or a pledge, specification or delivery of Collateral, is true, accurate and
complete in all material respects.

	5.2	 	FIRREA Covenant. If the Institution is an insured depository institution, it further
represents and warrants to, and covenants and agrees with, FHLBank that the necessary action
to authorize the delivery of this Agreement and the performance of its obligations hereunder
includes all authorizations required for insured depository institutions under the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the Institution
will at all times during the term of this Agreement continuously include and maintain this
Agreement, including all exhibits, attachments, supplements, Confirmations incorporated herein
and evidence of all necessary approvals, as part of its official written books and records.
In addition to any other remedies which FHLBank may have under this Agreement or otherwise, if
the Institution breaches or defaults on any of its obligations set forth in this paragraph,
FHLBank shall be entitled to apply to any court of competent jurisdiction for an order
requiring specific performance by the Institution of such obligations, and the Institution
shall not contest any such application and shall comply with any such order.

	5.3	 	Good Faith; Liability of Bank. The Institution and FHLBank shall have an obligation
of good faith in the performance and enforcement of every duty or right imposed or granted by
this Agreement, and any other actions or inactions taken or not taken with respect to this
Agreement. “Good Faith” shall mean honesty in fact (i.e., an objective standard rather than a
subjective standard). FHLBank shall not be liable for any costs, expenses, damages,
liabilities or claims (including attorneys’ and accountants’ fees) incurred by the
Institution, except those costs, expenses, damages, liabilities or claims arising out of the
gross negligence or willful misconduct of FHLBank or any of its employees or duly appointed
agents. In no event shall FHLBank be liable to the Institution or any third party

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	 	 	for special, indirect or consequential damages, or lost profits or loss of business, arising under
or in connection with this Agreement, even if previously informed of the possibility of such
damages and regardless of the form of action.
	 
	5.4	 	Assignment of Indebtedness. The Institution hereby gives FHLBank the full right,
power and authority to pledge or assign to any party all or part of the Indebtedness, together
with a proportionate amount of the Collateral, as security for Consolidated Federal Home Loan
Bank Obligations issued pursuant to the provisions of the Act or for any other
purpose authorized by the Act, the Regulations or the Federal Housing Finance Board. In the
case of any such pledge or assignment, FHLBank shall have no further responsibility with
respect to Collateral transferred to the pledgee or assignee, and all references herein to
“FHLBank” shall be read to refer instead to the pledgee or assignee with respect to such
Collateral. The Institution may not voluntarily or involuntarily or by operation of law or
otherwise assign or transfer any of its rights or obligations hereunder or with respect to any
Indebtedness or Commitments without the express prior written consent of FHLBank.

	5.5	 	Discretion to Deny Advances. Nothing contained herein or in any documents describing
or setting forth FHLBank’s Member Products Policy or other policies shall be construed as an
agreement or commitment on the part of FHLBank to grant Advances hereunder, or to enter into
any other transaction, the right and power of FHLBank in its discretion to either grant (with
or without conditions) or deny any Advance or other transaction requested hereunder being
expressly reserved.

	5.6	 	Access to Bank Records. FHLBank shall grant to all governmental regulatory agencies
having jurisdiction over the Institution, to the Institution’s independent public accountants
(to be named by written notice delivered to FHLBank) and to the Institution’s internal
auditors the right at any reasonable time to examine and audit the Institution’s records in
FHLBank’s possession, the right to request directly from FHLBank any reports, summaries or
information of FHLBank relating to the Institution and the right to observe the processing of
reports or examine the Institution’s documents at FHLBank; provided, however, FHLBank’s
obligations hereunder shall not apply to the extent that the records, reports, summaries,
information or documents sought or requested are contained in or derived from data not
provided by FHLBank to the Institution or by the Institution to FHLBank pursuant to this
Agreement.

	5.7	 	Amendment; Waivers. No modification, amendment or waiver of any provision of this
Agreement or consent to any departure therefrom shall be effective unless executed by the
party against whom such change is asserted and shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on the Institution in
any case shall entitle the Institution to any other or further notice or demand in the same,
or similar or other circumstance. Any forbearance, failure or delay by FHLBank in exercising
any right, power or remedy hereunder shall not be deemed to be a waiver thereof, and any
single or partial exercise by FHLBank of any right, power or remedy hereunder shall not
preclude the further exercise thereof. Every right, power and remedy of FHLBank shall
continue in full force and effect until specifically waived by FHLBank in writing.

	5.8	 	Jurisdiction; Legal Fees. In any action or proceeding brought by FHLBank or the
Institution 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 District of Kansas, or if such action or proceeding may not be brought in
federal court, the jurisdiction of the District Court of the County of Shawnee, State of
Kansas, to the exclusion of all other courts. The Institution agrees that if any action or
proceeding is brought by the Institution seeking to obtain any legal or equitable relief
against FHLBank 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, the Institution will pay all attorneys’ fees and other costs incurred
by FHLBank in connection therewith. The Institution agrees to reimburse FHLBank for all costs
and expenses (including reasonable fees and out-of-pocket expenses of counsel for FHLBank)
incurred by FHLBank in connection with the enforcement or preservation of FHLBank’s rights
under this Agreement including, but not limited to, its rights in respect of any Collateral
and the audit or possession thereof.

	5.9	 	Applicable Law; Severability. This Agreement and all Advances granted under this
Agreement shall 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 choice of law
provisions) of the State of Kansas. In the event that any portion of this Agreement conflicts
with applicable law, such conflict shall not affect other provisions of this Agreement that
can be given effect without the conflicting provision, and to this end the provisions of the
Agreement shall be severable.

	5.10	 	Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the successors and permitted assignees of the Institution and FHLBank.

	5.11	 	Notices. Any notice, advice, request, consent or direction given, made or withdrawn
pursuant to this Agreement shall be in writing or by machine-readable electronic transmission,
and shall be deemed to have been duly given to and received by a party hereto three (3)
Business Days after it shall have been mailed to such party at its address herein

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	 	 	provided, if delivered by first-class mail, or if delivered by hand or by machine-readable electronic
transmission, when actually received by such party at its principal office.
	 
	5.12	 	Consent to Receive Information. By executing this Agreement the Institution grants
permission to FHLBank to send to the Institution from time to time notices, announcements,
press releases and other communications, some of which may be deemed advertisements,
concerning FHLBank and its products and services and other information which FHLBank believes
may be of interest or benefit to its members, by mail, delivery service or e-mail, or
facsimile to the facsimile number(s) set forth below the Institution’s signature, or to such
other facsimile number(s) as the Institution shall indicate from time to time.

	5.13	 	Recorded Conversations. Each party authorizes the other, in its discretion, to
record telephone conversations between employees or other representatives of the parties
concerning any proposed or actual Advances or other transactions between the parties. Such
recorded conversations shall be admissible evidence of the terms and conditions of such
transactions and the parties waive any right to object to the admission of such evidence on
the ground that it is not in writing. The parties shall not be obligated to inform the other
party of such recording at any time.

	5.14	 	Entire Agreement. This Agreement embodies the entire agreement and understanding
between the parties hereto relating to the subject matter hereof and supersedes all prior
agreements between such parties, and all oral and written statements by either party, that
relate to such subject matter. Notwithstanding the above, Advances made by FHLBank to the
Institution prior to the execution of this Agreement shall continue to be governed by the
terms of the Confirmation pursuant to which such Advances were made, and otherwise by the
terms and conditions of this Agreement.

	5.15	 	Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall constitute but one Agreement.

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IN WITNESS WHEREOF, FHLBank and the Institution have caused this Agreement to be signed in their
names by their duly authorized officers.

	 	 	 	 	 	 	 	 	 
	INSTITUTION	 	FEDERAL HOME LOAN BANK OF TOPEKA
	 	 	 	 	 	 	One Security Benefit Place, Suite 100

Topeka, KS 66606-2444
	 
	 	 	 	 	 	 	 	 
	By:  
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 
	 	Authorized Signature	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signature
	 	 	 	 	 
	Name and Title	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name and Title
	Attest:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Signature	 	Date:	 	 
	 

	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Secretary	 	Attest	 	:
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Signature
	Fax No(s):  	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Secretary

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Page 10 of 10EX-10.7

 

EXHIBIT 10.7

Advance, Pledge and Security Agreement

(Blanket Pledge)

			
	Institution:
	 	 
	 

	 	 
	 
	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 
	 	 
	 

	 	 

This Advance, Pledge and Security Agreement (Agreement) is made by and between the Federal Home
Loan Bank of Topeka (FHLBank) and the above-described institution (Institution).

CONTENTS

	 

	 	DEFINITIONS
	1.1

	 	Defined Terms
	 

	 	ADVANCES AND OTHER INDEBTEDNESS
	2.1

	 	Advance Procedures; Demand Deposit Account
	2.2

	 	Estoppel
	2.3

	 	Obligation to Repay
	2.4

	 	Funding Commitments; Ineligibility
	2.5

	 	Stock Purchase
	 

	 	SECURITY AGREEMENT
	3.1

	 	Blanket Pledge; Required Collateral
	3.2

	 	Listed Collateral; Perfection
	3.3

	 	Listed Collateral; Deletion or Redelivery
	3.4

	 	Representations and Warranties
	3.5

	 	Reports, Audits and Access
	3.6

	 	FHLBank’s Responsibility as to Collateral
	3.7

	 	Application of Payments
	 

	 	DEFAULT; REMEDIES; POWER OF ATTORNEY
	4.1

	 	Events of Default; Acceleration
	4.2

	 	Remedies
	4.3

	 	Power of Attorney
	4.4

	 	Payment of Prepayment Charges
	4.5

	 	Default Rate
	4.6

	 	Sale of Collateral
	 

	 	MISCELLANEOUS
	5.1

	 	General Representations and Warranties
	5.2

	 	FIRREA Covenant
	5.3

	 	Good Faith; Liability of FHLBank
	5.4

	 	Assignment of Indebtedness
	5.5

	 	Discretion to Deny Advances
	5.6

	 	Access to FHLBank Records
	5.7

	 	Amendments; Waivers
	5.8

	 	Jurisdiction; Legal Fees
	5.9

	 	Applicable Law; Severability
	5.10

	 	Successors and Assigns
	5.11

	 	Notices
	5.12

	 	Consent to Receive Information
	5.13

	 	Recorded Conversations
	5.14

	 	Entire Agreement
	5.15

	 	Counterparts
	 	 	 

FHLBank and the Institution agree as follows:

DEFINITIONS

	1.1	 	Defined Terms. The following terms shall have the following meanings:

	 	a.	 	“Act” means the Federal Home Loan Bank Act, as amended, 12 U.S.C. 1421, et seq.
	 	b.	 	“Advance” or “Advances” means any and all loans or other extensions of credit,
including without limitation Interest Rate Exchange and Option Transactions, letters of
credit, credit enhancement obligations in connection with acquired member assets, and
guarantees or other arrangements intended to facilitate transactions between the
Institution and third parties (but excluding any obligations that FHLBank may now or
hereafter have to honor such as items or transfer orders under a depository or similar
agreement between the Institution and FHLBank), regardless of whether FHLBank’s
obligation is contingent upon the occurrence or nonoccurrence of any condition, and
including all loans or other extensions of credit by FHLBank to the Institution prior to
the date hereof.
	 	c.	 	“Business Day” means any day that the Federal Reserve Bank of Kansas City is open
for business.
	 	d.	 	“Capital Stock” means all of the capital stock of FHLBank, of any class or classes,
owned by the Institution and all payments that have been or hereafter are made on account
of any subscription for such capital stock and all unpaid dividends on such capital
stock.
	 	e.	 	“Collateral” means all assets and property, including the proceeds thereof,
assigned, transferred or pledged to FHLBank by the Institution pursuant to Section 3.1 of
the Agreement or otherwise.

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	 	f.	 	“Commitment” or “Commitments” means any agreement under which FHLBank is obligated
to make an Advance to the Institution.
	 
	 	g.	 	“Confirmation” means a written or machine-readable electronic transmission issued
by FHLBank from time to time confirming an Advance, including the notation of the Advance
on the Institution’s demand deposit account statement.
	 
	 	h.	 	“Member Products Policy” means the Member Products Policy of FHLBank as published
from time to time or, if FHLBank ceases to have a policy with that title, any other
policy or policies of FHLBank governing credit, lending, collateral, pricing and acquired
member assets.
	 
	 	i.	 	“Eligible Collateral” means Collateral, other than Capital Stock, which (1)
qualifies as security for Advances under the terms and conditions of the Act and the
Regulations and satisfies the requirements that may be established by FHLBank from time
to time; and (2) is owned by the Institution free and clear of any liens, encumbrances or
interests other than the interest of FHLBank hereunder.
	 
	 	j.	 	“Indebtedness” means all indebtedness of the Institution to FHLBank, whether now
outstanding or hereafter incurred, including all Advances and any other sums owed by the
Institution to FHLBank pursuant to any provision hereof, and all other obligations and
liabilities of the Institution to FHLBank.
	 
	 	k.	 	“Lending Value” means the value that FHLBank shall from time to time, in its sole
discretion, ascribe to the various types of Collateral.
	 
	 	l.	 	“Listed Collateral” means all individual items of Collateral which (1) the
Institution has specifically identified as Collateral in a written or electronic
communication to FHLBank (including the description of any individual item of Collateral
in a financing statement or similar document); or (2) the Institution has delivered or
caused to be delivered to FHLBank or to a bailee, custodian or agent acting on FHLBank’s
behalf.
	 
	 	m.	 	“Regulations” means the regulations of the Federal Housing Finance Board or its
successor, as amended, 12 CFR Chapter IX.
	 
	 	n.	 	“Required Collateral Amount” means the aggregate dollar amount that FHLBank may
specify from time to time with respect to each Advance and any other obligation or
liability of the Institution to FHLBank. The FHLBank may increase or decrease the
Required Collateral Amount at any time.
	 
	 	o.	 	“Interest Rate Exchange and Option Transaction” or “Interest Rate Exchange and
Option Transactions” means any and all interest rate swaps, interest rate caps, floors or
collars, options, futures, forward contracts, currency exchange transactions, or similar
transactions entered into between FHLBank and the Institution.

ADVANCES AND OTHER INDEBTEDNESS

	2.1	 	Advance Procedures; Demand Deposit Account. All Advances are subject to and governed
by the Member Products Policy, which is incorporated in and made a part of this Agreement.
Periodically, the Institution may apply to FHLBank for Advances in accordance with the
procedures established by FHLBank. Unless otherwise agreed to in writing by FHLBank, each
Advance shall be evidenced by a Confirmation and shall be made by crediting a demand deposit
account of the Institution with FHLBank, and payments of interest, principal or other amounts
owed to FHLBank shall be made by debiting such account. The Institution shall maintain
sufficient available balances in the account to fund all payments due to FHLBank.

	2.2	 	Estoppel. Failure of the Institution to deliver a written notice to FHLBank
specifying any disputed term or condition of an Advance within ten (10) Business Days after
FHLBank mails by first-class mail or transmits electronically a Confirmation to the
Institution shall constitute the agreement and acknowledgment by the Institution that the
terms and conditions of the Advance as stated in the Confirmation are valid and are those that
the Institution requested and by which the Institution agreed to be bound. The Institution
shall thereafter be estopped from asserting any claim or defense with respect to the repayment
of such Advance and all interest, fees and other charges thereon or in connection therewith.

	2.3	 	Obligation to Repay. The Institution unconditionally agrees to repay all Advances
and other Indebtedness, together with all interest and any fees, costs and expenses in
connection therewith, at the applicable interest rate per annum provided in the Confirmation
pertaining thereto, all upon the terms and conditions stated in the applicable Confirmation,
FHLBank’s Member Products Policy for such type of Advance or Indebtedness and as otherwise
specified herein. Accrued interest on each Advance shall be due and payable at the times
specified in FHLBank’s Member Products Policy, Confirmation or as otherwise specified in
writing by FHLBank.

	2.4	 	Funding Commitments; Ineligibility. In the event the Institution’s access to
Advances is restricted by any applicable law or regulatory directive, FHLBank shall not fund
outstanding Commitments to the Institution. The Institution shall immediately notify FHLBank
if it becomes ineligible for Advances under any applicable law or regulatory directive.

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	2.5	 	Stock Purchase. The Institution unconditionally agrees that whenever it receives an
Advance or transacts any other business with FHLBank, it shall purchase Capital Stock as and
when required by FHLBank’s Capital Plan, Member Products Policy, and any applicable laws,
Regulations, resolutions of FHLBank’s board of directors and provisions of FHLBank’s
Organization Certificate or bylaws, all as in effect at the time the Advance or other
transaction is entered into (or, if at that time FHLBank does not have a Capital Plan, any
other plans or policies of FHLBank governing Capital Stock and capital structure). The
Institution authorizes FHLBank to effect such purchase by exchanging shares of classes of
Capital Stock held by the Institution and/or debiting the Institution’s accounts at FHLBank in
accordance with such Capital Plan, Member Products Policy, and any applicable laws,
Regulations, resolutions of FHLBank’s board of directors and provisions of FHLBank’s
Organization Certificate or bylaws, as amended.

SECURITY AGREEMENT

	3.1	 	Blanket Pledge; Required Collateral.

	 	a.	 	As security for all present and future Indebtedness, the Institution hereby
assigns, transfers and pledges to FHLBank, and grants to FHLBank a security interest in,
all assets and properties now owned or hereafter acquired by the Institution, wherever
located, including, without limitation, all (1) Capital Stock; (2) instruments
(including, without limitation, all notes, promissory notes, and all other instruments
evidencing a debt, and any mortgage, deed of trust, title or other document securing a
debt); (3) investment property (including, without limitation, mortgage-backed
securities, other securities, share certificates or other participation interests in any
securities trust, and mortgage loan participation certificates); (4) chattel paper; (5)
choses in action; (6) general intangibles; (7) certificates of deposit; (8) accounts and
deposit accounts (including, without limitation, deposit accounts of the Institution held
by FHLBank); and (9) proceeds of all of the foregoing.
	 
	 	b.	 	The Institution shall at all times have granted FHLBank a security interest in an
amount of Eligible Collateral that has a Lending Value at least equal to the Required
Collateral Amount applicable to the Institution.
	 
	 	c.	 	While the Institution may, except as provided below, retain the documents
evidencing any Collateral it has pledged to FHLBank, it is specifically understood and
agreed that the Institution holds such documents solely for the benefit, and subject to
the direction and control, of FHLBank. The Institution shall at all times retain (or
deliver to a custodian or other bailee to hold for the exclusive benefit of the
Institution) the original, executed notes, mortgages and any assignments and amendments
thereof for all mortgage loans that the Institution represents to be Eligible Collateral
(by including their value in any report of Eligible Collateral or otherwise), unless it
delivers such originals to FHLBank.
	 
	 	d.	 	The Institution may use, commingle and dispose of the Collateral and collect,
compromise and dispose of the proceeds of the Collateral, and any transferee of such
Collateral shall take free and clear of any security or other interest granted to FHLBank
in Section 3.1(a) hereof, subject only to the Institution’s obligation to maintain the
Collateral as provided in Section 3.1(b); provided, however, that this Section 3.1(d)
shall not apply to Listed Collateral.
	 
	 	e.	 	FHLBank may take such steps as it reasonably deems necessary to protect its
security interest in Collateral including, without limitation, filing financing
statements, requiring delivery, and requiring the pledging and/or perfection of
additional collateral whether or not such additional collateral is Eligible Collateral.

	3.2	 	Listed Collateral; Perfection.

	 	a.	 	Immediately upon FHLBank’s request, and from time to time thereafter, the
Institution shall provide FHLBank an amount of Listed Collateral which is also Eligible
Collateral that has a Lending Value at all times at least equal to the Required
Collateral Amount applicable to the Institution. The Institution shall take all actions
as FHLBank shall reasonably deem necessary or appropriate to perfect FHLBank’s security
interest in the Listed Collateral, including but not limited to the making, execution and
delivery to FHLBank of such assignments, listings, powers, financing statements or other
instruments and documents as FHLBank may require. The Institution shall not assign,
pledge, transfer, create any security interest in, sell or otherwise dispose of any
Listed Collateral without the prior written consent of FHLBank.
	 
	 	b.	 	The Institution agrees to pay to FHLBank upon demand such fees and charges as may
be assessed by FHLBank to cover overhead and other costs relating to the perfection of
FHLBank’s security interest in the Listed Collateral (including without limitation the
receipt, holding and redelivery of Collateral and to reimburse FHLBank upon request for
all recording fees) and other reasonable expenses, disbursements and advances incurred or
made by FHLBank in connection therewith (including the reasonable compensation and the
expenses and disbursements of any bailee that may be appointed by FHLBank hereunder, and
the agents and legal counsel of FHLBank and of such bailee).

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Page 3 of 9

 

 

	 	c.	 	In the event any Listed Collateral that was Eligible Collateral ceases to be
Eligible Collateral, the Institution will promptly notify FHLBank in writing of the
reason such Listed Collateral has ceased to be Eligible Collateral and request the
deletion or redelivery of such Listed Collateral pursuant to Section 3.3.
	 
	 	d.	 	The form and sufficiency of all documents pertaining to the Listed Collateral shall
be satisfactory to FHLBank. Any Listed Collateral that is not satisfactory to FHLBank
may be rejected by FHLBank or may have a Lending Value ascribed thereto that shall be
less than the value normally ascribed thereto under FHLBank’s Member Products Policy, or
as FHLBank may otherwise specify.

	3.3	 	Listed Collateral; Deletion or Redelivery. Upon receipt by FHLBank of a written
request from the Institution asking for the deletion or redelivery of any Listed Collateral,
FHLBank shall promptly redeliver to the Institution, at the Institution’s expense, or
acknowledge the deletion of, the Listed Collateral specified in said written request.
Notwithstanding anything to the contrary herein, while an Event of Default shall have occurred
and be continuing, or at any time that FHLBank’s records indicate that such deletion or
redelivery would reduce the Lending Value of the Institution’s Eligible Collateral below the
Required Collateral Amount, or at any time that FHLBank reasonably and in good faith deems
itself insecure, FHLBank may refuse such request.

	3.4	 	Representations and Warranties. The Institution represents and warrants to FHLBank,
as of the date hereof and as of each date on which there shall be any outstanding Indebtedness
or Commitment, as follows:

	 	a.	 	The Institution owns and has title to all Collateral and has the right and
authority to grant a security interest to FHLBank in all Collateral and to subject all
Collateral to this Agreement.
	 
	 	b.	 	All Listed Collateral, and all other Collateral that the Institution represents to
be Eligible Collateral (by including its value in any report of Eligible Collateral or
otherwise), meets the standards and requirements for Eligible Collateral from time to
time established by FHLBank, the Act and the Regulations.
	 
	 	c.	 	The Institution has not conveyed or otherwise created, and there does not otherwise
exist, any participation interest (except as permitted by the Member Products Policy) or
other direct, indirect, legal or beneficial interest, lien or encumbrance, in any Listed
Collateral or any other Collateral that the Institution represents to be Eligible
Collateral, in favor of any person or entity other than FHLBank and the Institution,
except as specifically communicated in writing to FHLBank.

3.5 Reports, Audits and Access.

	 	a.	 	The Institution shall provide FHLBank with written periodic reports containing such
information on the Collateral as FHLBank shall require from time to time, including
listings of mortgages and securities, unpaid principal balances thereof and
certifications concerning the status of payments of mortgages and of taxes and insurance
on property securing mortgages. The Institution shall give FHLBank access at all
reasonable times to Collateral in the possession of the Institution and to the books and
records of account of the Institution relating to the Collateral for the purpose of
permitting FHLBank to examine, verify or reconcile the Collateral and the reports of the
Institution to FHLBank thereon.
	 
	 	b.	 	All Collateral and the satisfaction by the Institution of the Required Collateral
Amount shall be subject to periodic audit and verification by or on behalf of FHLBank.
Such audits and verifications may occur without notice during the Institution’s normal
business hours or upon reasonable notice at such other times as FHLBank may reasonably
request. The Institution shall provide access to, and shall make adequate working
facilities available to, the representatives or agents of FHLBank for purposes of such
audits and verifications. The Institution agrees to pay to FHLBank such reasonable fees
and charges as may be assessed by FHLBank to cover overhead and other costs relating to
such audits and verifications.
	 
	 	c.	 	The Institution shall furnish to FHLBank, if FHLBank requests, an audit report
prepared by an external independent auditor of the Institution in such form as FHLBank
may require certifying the accuracy of any or all information required to be given to
FHLBank by the Institution with respect to the Collateral, and copies of any available
audited financial statements, management letters and directors’ exams in regard to the
Institution.
	 
	 	d.	 	In order for FHLBank to adequately assess and monitor the financial and business
condition of the Institution, the Institution authorizes FHLBank to obtain all
information, examination reports and all other reports, and any regulatory notices,
actions or orders, in paper or electronic form, concerning or relating to the Institution
or its affiliates and prepared or issued by or for any agency or other governmental
subdivision, department, division, office, board, bureau or other instrumentality that
regulates or examines the Institution. FHLBank shall take reasonable precautions to
maintain the confidentiality of all information, reports and other documents obtained
under this Section 3.5.
	 
	 	e.	 	If the Lending Value of the Eligible Collateral owned by the Institution shall at
any time fall below the Required Collateral Amount, the Institution shall immediately
notify FHLBank.

	3.6	 	FHLBank’s Responsibility as to Collateral. In the event that FHLBank shall take
possession of any Collateral hereunder, FHLBank’s duty as to such Collateral shall be solely
to use reasonable care in the custody and

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preservation of the Collateral in its possession. This duty shall not require FHLBank to take
any steps necessary to preserve rights against prior parties or the duty to send notices,
perform services or take any action in connection with the management of the Collateral. The
Institution shall make and maintain copies, microfilm or other recordings of all Collateral
delivered to FHLBank.

	3.7	 	Application of Payments. FHLBank may, in its sole discretion, apply any payments by
or recovery from the Institution, which are received by FHLBank without any designation from
the Institution (at the time of such payment or recovery) as to the intended application
thereof, at such time and in such manner and order of priority as FHLBank shall deem
appropriate.

DEFAULT; REMEDIES; POWER OF ATTORNEY

	4.1	 	Events of Default; Acceleration. Upon the occurrence of and during the continuation
of any of the following events or conditions (Event of Default), FHLBank may at its option and
notwithstanding any other provision hereof, by a notice to the Institution, declare all
Indebtedness, including but not limited to any accrued interest and any prepayment charges
that are provided for upon payment of an Advance before the date(s) scheduled for repayment,
to be immediately due and payable, without presentment, demand, protest or any further notice:

	 	a.	 	Failure of the Institution to keep sufficient available balances on deposit with
FHLBank to pay any interest, principal or other amount then due and owing to FHLBank one
(1) Business Day after FHLBank gives notice to the Institution that its available
balances on deposit with FHLBank are insufficient to pay amounts then due and owing; or
	 
	 	b.	 	Continued failure of the Institution to perform any promise or obligation or to
satisfy any condition or liability contained in this Agreement for five (5) Business Days
after FHLBank gives notice to the Institution of such failure; or
	 
	 	c.	 	Continued failure of the Institution to provide adequate Eligible Collateral as
required by FHLBank for three (3) Business Days after FHLBank gives notice to the
Institution of such failure unless the Institution shall reduce its Required Collateral
Amount during such three (3) Business Day period such that the Institution has sufficient
Eligible Collateral; or
	 
	 	d.	 	Any suspension of payment by the Institution to any creditor of sums due or the
occurrence of any event that results (or which with the giving of notice or passage of
time or both will result) in acceleration of the maturity of any indebtedness of the
Institution to others under any security agreement, indenture, loan agreement or other
undertaking, provided that such indebtedness is a material amount with respect to the
Institution and is not subject to a good faith dispute, or the Institution’s admission
that it is unable to pay its debts as they mature; or
	 
	 	e.	 	Appointment of a trustee, conservator, receiver, liquidator, custodian or similar
official for the Institution, or for substantially all of the Institution’s property, or
the entry of a judgment, decree or administrative decision adjudicating the Institution
insolvent or bankrupt, or the commencement of proceedings seeking any of the foregoing if
such proceedings have not been dismissed within 30 calendar days; or
	 
	 	f.	 	Sale by the Institution of all or substantially all of the Institution’s assets or
the taking of any action by the Institution to liquidate or dissolve; or
	 
	 	g.	 	Termination of the Institution’s membership in FHLBank or the Institution’s ceasing
to be a type of financial institution that is eligible under the Act to become a member
of FHLBank; or
	 
	 	h.	 	Merger, consolidation or other combination of the Institution with an entity that
is not a member of FHLBank if the nonmember entity is the surviving entity in such
transaction; or
	 
	 	i.	 	FHLBank determines that any representation or warranty made or furnished by the
Institution, its employees or other representatives to FHLBank, in this Agreement or in
any other manner, in connection with any Advance or other Indebtedness or Collateral, is
incorrect or misleading in any material respect; or
	 
	 	j.	 	FHLBank reasonably and in good faith determines that a material adverse change has
occurred in the financial condition of the Institution that materially impairs its
ability to pay its debts as they mature.

	4.2	 	Remedies. Upon the occurrence of any Event of Default, FHLBank shall have all of the
rights and remedies provided by applicable law, which shall include, but not be limited to,
all of the remedies of a secured party under the Uniform Commercial Code as in effect in the
State of Kansas. In addition, FHLBank may take immediate possession of any of the Collateral
or any part thereof wherever the same may be found. FHLBank may sell, assign and deliver the
Collateral or any part thereof to public or private sale for such price as FHLBank deems
appropriate without any liability for any loss due to decrease in the market value of the
Collateral during the period held. FHLBank shall have the right to purchase all or part of
the Collateral at such sale. If the Collateral includes instruments or securities that will
be redeemed by the issuer upon surrender, or any accounts or deposits in the possession of
FHLBank, FHLBank may realize upon such Collateral without notice to the Institution. If any
notification of intended disposition of any of the Collateral is required by applicable law,
such notification shall be

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deemed reasonable and properly given if mailed, postage prepaid, at least five (5) Business
Days before any such disposition to the address of the Institution appearing on the records of
FHLBank. Upon the occurrence of any Event of Default, FHLBank may, in its sole discretion,
apply any payment by or recovery from the Institution or any sum realized from Collateral, at
such time and in such manner and order of priority as FHLBank shall deem fit, regardless of
any manifestation of any contrary intention or desire on the part of the Institution or the
provisions of any other agreement between FHLBank and the Institution. The Institution agrees
that FHLBank may exercise its right of setoff upon the occurrence of an Event of Default in
the same manner as if the Advances and Commitments were unsecured. Notwithstanding any other
provision hereof, upon the occurrence of any Event of Default at any time when all or part of
the obligations of the Institution to FHLBank hereunder shall be the subject of any guarantee
by a third party for FHLBank’s benefit and there shall be other outstanding obligations of the
Institution to FHLBank that are not so guaranteed but that are secured by the Collateral, then
any sums realized by FHLBank from the Collateral, or from any other Collateral pledged or
furnished to FHLBank by the Institution under any other agreement, shall be applied first to
the satisfaction of such other non-guaranteed obligations and then to the Institution’s
guaranteed obligations hereunder. The Institution agrees to pay all the costs and expenses of
FHLBank in the collection of the Indebtedness and enforcement and preservation of FHLBank’s
rights and remedies in case of default, including, without limitation, reasonable attorneys’
fees. FHLBank in its discretion may apply any surplus after payment of Indebtedness,
provision for repayment to FHLBank of any amounts to be paid 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 the Institution. The
Institution shall be liable to FHLBank for any deficiency remaining.

	4.3	 	Power of Attorney. After the occurrence of an Event of Default, FHLBank may in its
discretion, in its own name or in the name of its nominee or of the Institution, do any and
all things and take any and all actions that are pertinent to the protection of FHLBank’s
interest hereunder and, if such actions are subject to the laws of a state, are lawful under
the laws of the State of Kansas, including the following:

	 	a.	 	Terminate any consent given hereunder;
	 
	 	b.	 	Notify obligors on any Collateral to make payments thereon directly to FHLBank;
	 
	 	c.	 	Endorse any Collateral that is in the Institution’s name or that has been endorsed
by others to the Institution’s name;
	 
	 	d.	 	Enter into any extension, compromise, settlement or other agreement relating to or
affecting any Collateral;
	 
	 	e.	 	Take any action the Institution is required to take or that is otherwise necessary
to: (1) sign and record a financing statement or otherwise perfect a security interest
in any or all of the Collateral; or (2) to obtain, preserve, protect, enforce or collect
the Collateral;
	 
	 	f.	 	Take control of any funds or other proceeds generated by or arising from the
Collateral and use the same to reduce Indebtedness as it becomes due; and
	 
	 	g.	 	Cause the Collateral to be transferred to FHLBank’s name or the name of its
nominee.

The Institution hereby appoints FHLBank as its true and lawful attorney, for and on behalf of
the Institution and in its name, place and stead, to prepare, execute and record endorsements
and assignments to FHLBank of all or any item of Collateral (including the identification and
listing, by exhibit prepared by FHLBank or otherwise, of mortgage loans constituting such
Collateral), giving or granting to FHLBank, as such attorney, full power and authority to do
or perform every lawful act necessary or proper in connection therewith as fully as the
Institution could or might do. The Institution hereby ratifies and confirms all that FHLBank
shall lawfully do or cause to be done by virtue of this special power of attorney. This
special power of attorney (i) is granted for a period commencing on the date of the Event of
Default and continuing until the discharge of all Indebtedness and all obligations of the
Institution hereunder, (ii) is coupled with an interest, and (iii) is irrevocable for the
period granted. As the Institution’s true and lawful attorney-in-fact, FHLBank shall have no
responsibility to take any steps necessary to preserve rights against other parties or the
duty to send notices, perform services or take any action in connection with the management of
the Collateral.

	4.4	 	Payment of Prepayment Charges. Any prepayment fees or charges for which provision is
made, whether under a Confirmation or otherwise, with respect to any Advance shall be payable
at the time of any voluntary or involuntary payment of the principal of such Advance prior to
the originally scheduled maturity thereof. This shall include, without limitation, payments
that are made in connection with the liquidation of the Institution or that become due as a
result of an acceleration by FHLBank pursuant to Section 4.1, whether such payment is made by
the Institution, by a trustee, conservator, receiver, liquidator, custodian or similar
official, of or for the Institution, or by any successor to or any assignee of the
Institution. The Institution acknowledges and agrees that the damages incurred by FHLBank due
to a prepayment of an Advance will be difficult to ascertain at the time of such prepayment
and, in lieu thereof, the Institution and FHLBank agree that the formula for calculation of
the prepayment fee (or for

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calculation of the fee payable upon prepayment of a non-prepayable Advance) set forth in the
Confirmation or in the Member Products Policy at the time the Advance is issued constitutes a
fair, reasonable and good faith estimate of the damages suffered by FHLBank because of such
prepayment and is therefore payable as a prepayment fee or charge.

	4.5	 	Default Rate. Any payment of principal or interest or any other sum due hereunder if
not made when due (whether at stated maturity, by acceleration or otherwise) shall bear
interest, to the maximum extent permitted by applicable law, at a rate per annum for each day
during the period commencing on the due date thereof until such amount shall be paid in full
equal to 315 basis points above the previous business day’s daily effective federal funds rate
as provided in Federal Reserve Statistical Release H.15 and daily updates thereto, or any
equivalent successor rate, release or publication, or as otherwise set forth in the Member
Products Policy.

	4.6	 	Sale of Collateral. In view of the possibility that federal and state securities and
other laws may impose certain restrictions on the method by which sale of the Collateral may
be effected, FHLBank and the Institution agree that any sale of the Collateral as a result of
an Event of Default shall be deemed “commercially reasonable” regardless of whether the notice
or manner of such sale contains provisions or imposes, or is subject to, conditions or
restrictions deemed appropriate to comply with the Securities Act of 1933 or any other
applicable federal or state securities or other law. It is further agreed that from time to
time FHLBank may attempt to sell the Collateral by means of private placement. In so doing,
FHLBank may restrict the bidders and prospective purchasers to those who will represent and
agree that they are purchasing for investment only and not for distribution, or otherwise
impose restrictions deemed appropriate by FHLBank for the purpose of complying with the
requirements of applicable securities laws. FHLBank may solicit offers to buy such
Collateral, for cash or otherwise, from a limited number of investors deemed by FHLBank to be
responsible parties who might be interested in purchasing such Collateral. If FHLBank
solicits offers from at least three (3) such investors, then the acceptance by FHLBank of the
highest offer obtained therefrom (whether or not three (3) offers are obtained) shall be
deemed to be a commercially reasonable method of disposing of the Collateral.

MISCELLANEOUS

	5.1	 	General Representations and Warranties. The Institution hereby represents and
warrants that to the best of its knowledge as of the date hereof and as of each date on which
there shall be any outstanding Indebtedness or Commitment:

	 	a.	 	The Institution is not now, and neither the execution of nor the performance of any
of the transactions or obligations of the Institution under this Agreement shall, with
the passage of time, the giving of notice, or otherwise, cause the Institution to be: (1)
in violation of its charter or articles of incorporation, by-laws, the Act or the
Regulations, any other law or administrative regulation, any court decree or any order of
any regulatory authority, or (2) in default under or in breach of any indenture, contract
or other instrument or agreement to which the Institution is a party or by which the
Institution or any of its property may be bound; in each case so as to materially affect
the Institution’s ability to perform its obligations under this Agreement.
	 
	 	b.	 	The Institution has full corporate power and authority and has received all
corporate and governmental authorizations and approvals as may be required to enter into
and perform its obligations under this Agreement and to borrow each Advance.
	 
	 	c.	 	The information given by the Institution in any document provided, or in any oral
statement made, in connection with an application or request for an Advance or a
Commitment, or a pledge, specification or delivery of Collateral, is true, accurate and
complete in all material respects.

	5.2	 	FIRREA Covenant. If the Institution is an insured depository institution, it further
represents and warrants to, and covenants and agrees with, FHLBank that the necessary action
to authorize the delivery of this Agreement and the performance of its obligations hereunder
includes all authorizations required for insured depository institutions under the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as amended, and the Institution
will at all times during the term of this Agreement continuously include and maintain this
Agreement, including all exhibits, attachments, supplements, Confirmations incorporated herein
and evidence of all necessary approvals, as part of its official written books and records.
In addition to any other remedies which FHLBank may have under this Agreement or otherwise, if
the Institution breaches or defaults on any of its obligations set forth in this paragraph,
FHLBank shall be entitled to apply to any court of competent jurisdiction for an order
requiring specific performance by the Institution of such obligations, and the Institution
shall not contest any such application and shall comply with any such order.

	5.3	 	Good Faith; Liability of FHLBank. The Institution and FHLBank shall have an
obligation of good faith in the performance and enforcement of every duty or right imposed or
granted by this Agreement, and any other actions or inactions taken or not taken with respect
to this Agreement. “Good Faith” shall mean honesty in fact (i.e., an

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objective standard rather than a subjective standard). FHLBank shall not be liable for any
costs, expenses, damages, liabilities or claims (including attorneys’ and accountants’ fees)
incurred by the Institution, except those costs, expenses, damages, liabilities or claims
arising out of the gross negligence or willful misconduct of FHLBank or any of its employees
or duly appointed agents. In no event shall FHLBank be liable to the Institution or any third
party for special, indirect or consequential damages, or lost profits or loss of business,
arising under or in connection with this Agreement, even if previously informed of the
possibility of such damages and regardless of the form of action.

	5.4	 	Assignment of Indebtedness. The Institution hereby gives FHLBank the full right,
power and authority to pledge or assign to any party all or part of the Indebtedness, together
with a proportionate amount of the Collateral, as security for Consolidated Federal Home Loan
Bank Obligations issued pursuant to the provisions of the Act or for any other purpose
authorized by the Act, the Regulations or the Federal Housing Finance Board. In the case of
any such pledge or assignment, FHLBank shall have no further responsibility with respect to
Collateral transferred to the pledgee or assignee, and all references herein to “FHLBank”
shall be read to refer instead to the pledgee or assignee with respect to such Collateral.
The Institution may not voluntarily or involuntarily or by operation of law or otherwise
assign or transfer any of its rights or obligations hereunder or with respect to any
Indebtedness or Commitments without the express prior written consent of FHLBank.

	5.5	 	Discretion to Deny Advances. Nothing contained herein or in any documents describing
or setting forth FHLBank’s Member Products Policy or other policies shall be construed as an
agreement or commitment on the part of FHLBank to grant Advances hereunder, or to enter into
any other transaction, the right and power of FHLBank in its discretion to either grant (with
or without conditions) or deny any Advance or other transaction requested hereunder being
expressly reserved.

	5.6	 	Access to FHLBank Records. The FHLBank shall grant to all governmental regulatory
agencies having jurisdiction over the Institution, to the Institution’s independent public
accountants (to be named by written notice delivered to FHLBank) and to the Institution’s
internal auditors the right at any reasonable time to examine and audit the Institution’s
records in FHLBank’s possession, the right to request directly from FHLBank any reports,
summaries or information of FHLBank relating to the Institution and the right to observe the
processing of reports or examine the Institution’s documents at FHLBank; provided, however,
FHLBank’s obligations hereunder shall not apply to the extent that the records, reports,
summaries, information or documents sought or requested are contained in or derived from data
not provided by FHLBank to the Institution or by the Institution to FHLBank pursuant to this
Agreement.

	5.7	 	Amendments; Waivers. No modification, amendment or waiver of any provision of this
Agreement or consent to any departure therefrom shall be effective unless executed by the
party against whom such change is asserted and shall be effective only in the specific
instance and for the purpose for which given. No notice to or demand on the Institution in
any case shall entitle the Institution to any other or further notice or demand in the same,
or similar or other circumstance. Any forbearance, failure or delay by FHLBank in exercising
any right, power or remedy hereunder shall not be deemed to be a waiver thereof, and any
single or partial exercise by FHLBank of any right, power or remedy hereunder shall not
preclude the further exercise thereof. Every right, power and remedy of FHLBank shall
continue in full force and effect until specifically waived by FHLBank in writing.

	5.8	 	Jurisdiction; Legal Fees. In any action or proceeding brought by FHLBank or the
Institution to enforce any right or remedy under this Agreement, the parties consent to, and
agree that they will submit to, the jurisdiction of the United States District Court for the
District of Kansas, or if such action or proceeding may not be brought in federal court, the
jurisdiction of the District Court of the County of Shawnee, State of Kansas, to the exclusion
of all other courts. The Institution agrees that if any action or proceeding is brought by
the Institution seeking to obtain any legal or equitable relief against FHLBank 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, the Institution will pay all attorneys’ fees and other costs incurred by FHLBank
in connection therewith. The Institution agrees to reimburse FHLBank for all costs and
expenses (including reasonable fees and out-of-pocket expenses of counsel for FHLBank)
incurred by FHLBank in connection with the enforcement or preservation of FHLBank’s rights
under this Agreement including, but not limited to, its rights in respect of any Collateral
and the audit or possession thereof.

	5.9	 	Applicable Law; Severability. This Agreement and all Advances granted under this
Agreement shall 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 choice of law
provisions) of the State of Kansas. In the event that any portion of this Agreement conflicts
with applicable law, such conflict shall not affect other provisions of this Agreement that
can be given effect without the conflicting provision, and to this end the provisions of the
Agreement shall be severable.

	5.10	 	Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the successors and permitted assignees of the Institution and FHLBank.

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	5.11	 	Notices. Any notice, advice, request, consent or direction given, made or withdrawn
pursuant to this Agreement shall be in writing or by machine-readable electronic transmission,
and shall be deemed to have been duly given to and received by a party hereto three (3)
Business Days after it shall have been mailed to such party at its address herein provided, if
delivered by first-class mail, or if delivered by hand or by machine-readable electronic
transmission, when actually received by such party at its principal office.

	5.12	 	Consent to Receive Information. By executing this Agreement the Institution grants
permission to FHLBank to send to the Institution from time to time notices, announcements,
press releases and other communications, some of which may be deemed advertisements,
concerning FHLBank and its products and services and other information which FHLBank believes
may be of interest or benefit to its members, by mail, delivery service or e-mail, or
facsimile to the facsimile number(s) set forth below the Institution’s signature, or to such
other facsimile number(s) as the Institution shall indicate from time to time.

	5.13	 	Recorded Conversations. Each party authorizes the other, in its discretion, to
record telephone conversations between employees or other representatives of the parties
concerning any proposed or actual Advances or other transactions between the parties. Such
recorded conversations shall be admissible evidence of the terms and conditions of such
transactions and the parties waive any right to object to the admission of such evidence on
the ground that it is not in writing. The parties shall not be obligated to inform the other
party of such recording at any time.

	5.14	 	Entire Agreement. This Agreement embodies the entire agreement and understanding
between the parties hereto relating to the subject matter hereof and supersedes all prior
agreements between such parties, and all oral and written statements by either party, that
relate to such subject matter. Notwithstanding the above, Advances made by FHLBank to the
Institution prior to the execution of this Agreement shall continue to be governed by the
terms of the Confirmation pursuant to which such Advances were made, and otherwise by the
terms and conditions of this Agreement.

	5.15	 	Counterparts. This Agreement may be executed in one or more counterparts, all of
which shall constitute but one Agreement.

IN WITNESS WHEREOF, FHLBank and the Institution have caused this Agreement to be signed in their
names by their duly authorized officers.

	 	 	 	 	 	 	 	 	 	 	 
	INSTITUTION	 	 	 	FEDERAL HOME LOAN BANK OF TOPEKA
	 	 	 	 	 	 	One Security Benefit Place, Suite 100
	 	 	 	 	 	 	Topeka, KS 66606-2444
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Authorized Signature	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Authorized Signature

	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name and Title	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name and Title

	 
	 	 	 	 	 	 	 	 	 	 
	Attest:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Signature
	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	Secretary
	 	 	 	Attest:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Signature

	 
	 	 	 	 	 	 	 	 	 	 
	Fax No(s).:

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Secretary

	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

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