Document:

EX-10.1.A

 

EXHIBIT 10.1.A

Form of Blanket
Agreement for Advances and Security Agreement, as in effect for
signatories prior to November 21, 2005

FEDERAL HOME LOAN BANK OF CINCINNATI

Blanket Agreement for Advances

and

Security Agreement

Cincinnati, Ohio

______________ ______, 2004

                                                                                                                                                                                                        

the principal place of business of which is located at _________________________________________

(hereinafter called the “Borrower”), in consideration of advances (as further defined in Section 1
below) or other financial accommodations heretofore or at anytime hereafter made or granted to
Borrower and any affiliate of Borrower by the FEDERAL HOME LOAN BANK OF CINCINNATI (hereinafter
called the “Bank”), hereby grants to the Bank a security interest in and collateral assignment of
all of the Borrower’s assets or rights to the extent listed and defined in Section 2 below and
hereunder, and in any Addendum hereto, now or hereafter acquired, and all proceeds and products
thereof, cash or non-cash, to secure the payment of all such advances and all other indebtedness
and liabilities of the Borrower to the Bank, now existing or hereafter arising, plus interest
thereon and all costs of collection and legal expenses incurred by the Bank in collecting and/or
enforcing any of such liabilities or realizing on the security given hereby (hereinafter
collectively called the “Obligations”).

     1. APPLICATION AND AUTHORITY FOR ADVANCES; REPAYMENT; INTEREST AFTER MATURITY.
Pursuant to the Federal Home Loan Bank Act of 1932, as amended, and all relevant rules and
regulations in effect thereunder (hereinafter collectively the “Act”), the Bank makes available
loans to its members and certain qualified non-member mortgagees (hereinafter referred to as
“advances”), which advances shall be used by such members and their affiliates for the purposes
specified in the Act. The procedures and the form of application for such advances shall be as
specified within the “Advance Programs” in effect from time to time as adopted by the Board of
Directors of the Bank as part of its “Credit Policy”. The Borrower shall furnish to the Bank a
certified copy of a resolution of the Borrower’s Board of Directors (or other governing body)
specifying certain of the Borrower’s officers or other employees who are authorized to apply for,
amend and renew such advances from the Bank. Generally, all applications for advances shall be
made by such specified persons in writing, except that applications may be made by facsimile on the
conditions set out in the Credit Policy only if applications for advances by facsimile are then
permitted by the Credit Policy. However, unless the Bank shall be otherwise notified by the
Borrower in writing, the Bank may honor any form of request, including an oral request, for
disbursements of previously-approved applications for advances. The Bank’s records of such
advances to the Borrower shall be rebuttable evidence of such advance and of the Borrower’s
agreement to repay same in accord with the Advance Programs. Further, notwithstanding the
particular repayment schedule or interest rates specified in the Advance Programs, or within the
notice of approval from the Bank as to any such advance, interest shall be assessed against
past-due principal

1

 

and/or interest (whether past due because of maturity, acceleration or otherwise), or, at the
Bank’s option upon any event of default occurring and continuing hereunder, at a default rate as
outlined in the Credit Policy.

     2. SECURED PROPERTY LISTING AND DEFINITION. The following collateral shall be
included in the Bank’s security interest (as noted in the box by each category) and all of such
items, together with all shares of the Bank owned by Borrower and such other collateral as may from
time to time be specified in separate agreements between the Bank and the Borrower or between the
Bank and any affiliate of the Borrower (each such separate agreement hereinafter sometimes called
an “Addendum”), or which are otherwise pledged to the Bank or in which the Bank takes a security
interest or collateral assignment, if any, shall hereinafter collectively be called the “secured
property”:

          
(a) o Obligations of the United States of America, or obligations fully

guaranteed by the United States of America, or other securities (whether certificated or
uncertificated), investment property, financial assets, security entitlements, accounts or other
equity or ownership interests in any corporation, partnership, limited liability company, trust or
other entity, association or organization, including without limitation any affiliate which holds
or may hold, directly or indirectly, transferred assets of the Borrower, which obligations or
securities are approved by the Bank as eligible collateral security and delivered to the Bank’s
possession or (at the Bank’s sole discretion) are otherwise in the Bank’s control or subject to an
acceptable negative pledge, which obligations or securities are to be treated as secured property
(whether hereunder or pursuant to other agreements with the Bank), and all replacements therefor
and proceeds thereof (hereinafter called “Securities Collateral”).

          
(b) o 100% of the Borrower’s one to four family mortgage portfolio i.e., each
and every one to four family residential mortgage or one to four family residential deed of trust
in favor of the Borrower or an affiliate of Borrower, as the case may be, as mortgagee, and the
notes or other instruments evidencing indebtedness secured thereby, or any participation or
residual interest therein, complying with the requirements of the Act and meeting the requirements
of Sections 5(b) and 5(e) below, whether now existing or hereafter acquired) and all replacements
therefor and proceeds thereof (hereinafter sometimes called “Blanket One to Four Mortgage
Collateral”).

          
(c) o 100% of the Borrower’s multi-family mortgage portfolio (i.e., each and
every five or more family residential mortgage or five or more family residential deed of trust in
favor of the Borrower or an affiliate of Borrower, as the case may be, as mortgagee, and the notes
or other instruments evidencing indebtedness secured thereby, or any participation or residual
interest therein, complying with the requirements of the Act and meeting the requirements of
Sections 5(b) and 5(e) below, whether now existing or hereafter acquired) and all replacements
therefor and proceeds thereof (hereinafter the “Blanket Multi-Family Mortgage Collateral,” and,
along with the interests of the Bank specified in Section 2(c) above, collectively called “Blanket
Mortgage Collateral”).

     3. EVIDENCE OF SECURED PROPERTY: MAINTENANCE OF COLLATERAL LEVEL. The Borrower agrees
to deliver to the Bank such evidence of eligibility to borrow hereunder, its interest in the
secured property and of availability of same for use as collateral pursuant hereto, in accordance
with the Credit Policy and as the Bank may in good faith request. The

2

 

Borrower agrees that all secured property shall be subject to audit and verification by or on
behalf of the Bank at the sole expense of the Borrower. The Borrower will at all times maintain,
as minimum secured property hereunder, secured property having an aggregate collateral value
acceptable to the Bank, which shall make such determination in good faith and in conformity with
the requirements of Section 5(b) below, and if the Borrower fails to do so (a) the Borrower will,
within three (3) days of receipt of written notification from the Bank, reduce its unpaid advances
or other Obligations as requested in writing by the Bank or (b) the Borrower, upon the written
request of the Bank, will immediately deposit additional collateral and/or agree to additional
security interests satisfactory to the Bank.

     4. SECURITIES COLLATERAL. If item 2(a) above is included in the secured property,
Securities Collateral shall be given to the Bank in aggregate principal amounts as required by the
Bank and, if in certificated or other tangible form, such Securities Collateral (or custodial
receipts for same acceptable to the Bank) shall be deposited with the Bank, together with
indorsements acceptable to the Bank. In said connection, the Bank will be deemed to be an
entitlements holder of and in sole control, within the meaning of Article 8 of the Uniform
Commercial Code, of any Securities Collateral, with full power to hold and dispose of same as
financial assets under Article 8 of the Uniform Commercial Code (including, without limitation,
full power to exercise voting rights and to receive any income resulting from stock splits, stock
dividends, cash dividends or otherwise), and the Borrower agrees to take and/or consent to such
further actions as the Bank may deem appropriate to take and maintain control over any Securities
Collateral, including obtaining the agreement of the issuer of any Securities Collateral to comply
with instructions originated by the Bank without further consent by the Borrower and the agreement
of any securities intermediary to comply with entitlement orders originated by the Bank without
further consent by the Borrower. The Bank, upon the occurrence and during the continuation of an
event of default (should the Bank have not already accelerated the Obligations), may retain any
interest or principal payments, or dividends or other distributions, collected by it as to such
Securities Collateral and apply same against interest or principal of the Obligations in its sole
discretion.

     5. MORTGAGE COLLATERAL. The Borrower acknowledges that the Bank is permitting it to
retain in its possession all Specific and Blanket Mortgage Collateral (together or separately the
“Mortgage Collateral”) for purposes of servicing, collection and foreclosure, and the Borrower
acknowledges that the Borrower will hold such Mortgage Collateral, and all proceeds and payments
therefrom, in trust as the Bank’s security and for the benefit and subject to the direction and
control of the Bank, and upon the following additional terms and conditions:

          (a) At the Bank’s request and sole option, the Borrower shall immediately deliver to the Bank
an Assignment of each item of Mortgage Collateral in the Bank’s form for the same. Further, at the
Bank’s request and sole option, the Borrower will physically deliver to the Bank all documentation
as to Specific Mortgage Collateral and/or Blanket Mortgage Collateral (including, without
limitation, any participation certificates or other evidence thereof) and/or endorse in favor of
the Bank all or any portion of same. Except as authorized by the Bank, the Borrower shall not
withdraw any Specific Mortgage Collateral prior to its payment in full of all Obligations. The
Borrower shall promptly notify the Bank in writing (i) whenever principal payments in excess of ten
percent (10%) of the remaining unpaid balance are made by Borrower’s customers on any item of
Specific Mortgage Collateral, (ii) whenever any item of Specific Mortgage Collateral is paid off in
full by Borrower’s customers or involved in any foreclosure action, and/or (iii) whenever any
building on property serving as Specific Mortgage Collateral is damaged by casualty or otherwise in
excess of twenty-five percent (25%) of its appraised value (if the Borrower does not reasonably
believe that such building can be promptly repaired). Such written notices shall not initially be
required where a Borrower’s Blanket Mortgage

3

 

Collateral provides collateral for the Obligations (i.e., if Sections 2(c) or 2(d) above has been
utilized by the Borrower).

          (b) The aggregate of the (i) market value of Securities Collateral and (ii) principal balances
due under Mortgage Collateral shall be maintained at all times by the Borrower in an amount not
less than that percentage of outstanding advances required by the Credit Policy.

          (c) Upon written direction from the Bank, the Borrower will deposit all collections from
Mortgage Collateral in a separate bank account designated as required by the Bank as a source of
which to withdraw interest and principal payments on the Obligations.

          (d) Unless and until otherwise directed in writing by the Bank after the occurrence of an
event of default and only during the continuation of such event of default (should the Bank have
not accelerated the maturity of the Obligation involved), the Borrower shall have the right to make
and retain all collections from time to time coming due on Mortgage Collateral, to execute and
deliver satisfactions of or releases of such Mortgage Collateral paid in full, and to take all
necessary legal action to enforce collection of delinquent payments, including foreclosure, without
disclosing this security arrangement and trust, and to use all collections so made by the Borrower
in its ordinary course of business.

          (e)(i) The Borrower shall keep and maintain all Mortgage Collateral at all times free and
clear of pledges, liens, participation interests (unless taken or held by an affiliate of Borrower,
of which the Borrower owns or controls, directly or indirectly, 100% of the voting stock of such
affiliate), and encumbrances, unless the Bank approves, or is deemed to have approved, any such
pledge, lien, participation interest or encumbrance, as provided in this Section 5(e)(i). Borrower
shall promptly give the Bank specific and detailed written notice of any security interest or
participation in Mortgage Collateral taken by third party lenders, affiliates or others. If at the
time of such notice, no outstanding advances by Bank to Borrower are secured either wholly or
partially by collateral pledged by Borrower or any affiliate of Borrower and if the Bank does not
reply in writing to such notice by Borrower within thirty (30) days following receipt of it, such
security interest or participation of a third party lender or affiliate shall be deemed approved.

          (ii) Whenever it is commercially reasonable, the Borrower shall obtain the Bank’s written
approval prior to the actual sale or transfer of (or the granting of any participation in) such
Mortgage Collateral. However, in case of pledge of Blanket Mortgage Collateral (i.e. notation by
the Borrower of Sections 2(c) or 2(d) above), and if the Bank has not yet demanded or acquired
physical possession of documentation related to such Mortgage Collateral, and when it is not
commercially reasonable to obtain a release of such Mortgage Collateral prior to the sale or
transfer of mortgages, then the Borrower is not required to comply with this subsection 5(e)(ii) of
the Agreement provided the Borrower submits to the Bank within ten (10) business days after the
contractual sale or transfer date, or any earlier sale or transfer date, a properly executed
original Notice and Release Request in which the Borrower warrants to the Bank that an aggregate
pledged mortgage portfolio equal in book value to at least that percentage of outstanding advances
required by the Credit Policy still remains unsold and not participated in or encumbered by others.

          (f) The buildings located on each mortgaged property constituting Mortgage Collateral shall be
covered by all risk hazard insurance and by insurance against all other risks customary and
generally required by mortgage lenders in the area in which the mortgaged property is located for
the type of mortgage loan involved in an amount not less than the unpaid balance due the Borrower
by its customer on each such item of Mortgage Collateral. The Borrower will cause such insurance
policies to

4

 

include the Borrower and its “successors and assigns” as loss payee under a standard mortgagee
endorsement to evidence the Bank’s mortgagee/assignee interest therein and, if the Bank so
requires, to give the Bank ten (10) days prior notice of any policy cancellation. At the Bank’s
demand, the Borrower will physically deliver to the Bank any such insurance policies. The Bank may
cause any secured property to be insured if the Borrower fails to do so, and any such expense shall
be an additional Obligation hereunder.

     6. WARRANTIES AND FURTHER COVENANTS.

          (a) Borrower hereby represents and warrants that the Borrower and/or any pledging affiliate is
the true and lawful owner of all the Securities Collateral and/or Mortgage Collateral free and
clear of all claims, liens, encumbrances, rights of set-off, mortgages and security interests of
any nature whatsoever (except this security interest and as may be further specified below) and
Borrower covenants that it shall defend the Securities Collateral and/or the Mortgage Collateral
against the claims and demands of all persons.

          (b) Borrower hereby represents and warrants that (i) the existence of all necessary power to
enter into and execute this Agreement, (ii) this Agreement is not in violation of its Articles,
Charter, Regulations or By-Laws, or of any federal, state or local laws or administrative or
judicial rulings, (iii) no consent or approval of any securities exchange is necessary for the
valid pledge of the Securities Collateral under this Agreement, and (iv) this Agreement is
enforceable in accordance with its terms.

          (c) Borrower hereby represents and warrants that it is either a member of the Bank or a
qualified and eligible nonmember mortgagee with full powers to borrow hereunder.

          (d) Borrower hereby agrees to execute and deliver financing statements under the Uniform
Commercial Code, and statements or amendments thereof or supplements thereto, recordable
Assignments of Mortgage Collateral, and such other instruments as the Bank may from time to time
require in order to evidence, perfect, secure, preserve, protect and enforce the security interest
hereby granted. The Bank is hereby irrevocably appointed as Attorney-In-Fact for the Borrower in
all matters pertaining to all such perfection, preservation, protection and enforcement and
evidencing same hereunder.

          (e) Borrower hereby represents and warrants that to the best of its knowledge the secured
property, including any property subject to the lien of any Mortgage Collateral, is free from any
and all environmental hazards. Borrower shall indemnify Bank, hold Bank harmless, and, at the
option of Bank, defend Bank with counsel satisfactory to Bank, from all liabilities, costs,
damages, claims or expenses (including attorneys’ fees and environmental consultant’s fees),
suffered, paid or incurred by Bank resulting from or arising out of any requirement under any
applicable federal, state or local law, statute, regulation, order, judgment or decree requiring
that any release of a hazardous material, solid waste, pollutant or contaminant at any of the
secured property be remedied, cleaned up or lawfully disposed of.

          (f) Except as permitted under Section 5(e) above, the Borrower hereby agrees that it shall not
(i) sell, offer to sell or otherwise transfer the secured property, nor pledge, mortgage or create,
or suffer to exist a security interest claim, lien, encumbrance, right of set-off or other security
interest or collateral assignment of any kind whatsoever in the secured property or the proceeds or
products thereof in favor of any person other than the Bank without prior written consent of the
Bank,

5

 

or (ii) transfer physical possession of notes and mortgages constituting Mortgage Collateral
hereunder to any third party or affiliate without the prior written consent of the Bank.

          (g) At any time that any advances to Borrower are outstanding that are secured wholly or
partially with collateral pledged by an affiliate of Borrower pursuant to a PLEDGE AND SECURITY
AGREEMENT (as permitted under the Credit Policy), Borrower hereby agrees that it shall cause such
affiliate to comply with all terms and conditions of such PLEDGE AND SECURITY AGREEMENT.

          (h) All taxes, assessments and governmental charges levied or assessed or imposed upon or with
respect to the secured property, including any property subject to the lien of any Mortgage
Collateral, shall be paid and if Borrower fails to promptly pay such taxes, assessments or
governmental charges, Bank may (but shall not be required to) pay the same and any such expense
shall be an additional Obligation hereunder.

          (i) Borrower will notify Bank promptly in writing of any change in the location of its
principal place of business or jurisdiction of incorporation, organization or formation. Borrower
shall promptly inform Bank of any change in location of any of the secured property from the
Borrower’s principal place of business or otherwise. Borrower shall promptly respond to any
inquiry by Bank concerning the location of Borrower’s principal place of business, jurisdiction of
incorporation, organization or formation or the location of any of the secured property.

     7. EVENTS OF DEFAULT: ACCELERATION. Any one or more of the following shall
constitute events of default hereunder: (a) default by Borrower in the payment or performance,
when due or payable, of any of the Obligations; (b) the making by the Borrower of any
misrepresentation to the Bank hereunder, or otherwise for the purpose of obtaining loan advances or
an extension of same; (c) failure of the Borrower after request by the Bank to furnish promptly
financial information or to permit promptly the inspection of books or records; (d) failure of
Borrower to perform or observe any of the provisions of this Agreement or of any other instrument
pertaining to the Obligations or secured property (subject to a ten (10) day cure period after
written notice from the Bank is received by the Borrower); (e) issuance of an injunction or
attachment against property of the Borrower which the Bank in good faith considers materially
adverse to such Borrower’s financial condition; (f) appointment of a receiver or liquidator of any
part of the property of the Borrower, or if the management of Borrower is assumed by any
supervisory authority; (g) the commencement by or against the Borrower of any proceeding under any
bankruptcy, arrangement, reorganization, insolvency or similar law for the relief of debtors; (h)
termination for any reason of Borrower’s membership in the Bank or its status as a nonmember
mortgagee and/or state housing finance agency eligible for advances hereunder; (i) an event of
default occurs under any PLEDGE AND SECURITY AGREEMENT between any affiliate of Borrower and Bank;
(j) the occurrence of such a change in the condition or affairs (financial or otherwise) of the
Borrower, or of an affiliate supplying secured property securing the Obligations, as in the good
faith opinion of the Bank impairs the Bank’s security or increases its risk; or (k) if the Bank in
good faith deems itself insecure. Upon occurrence of any of the events of default and failure by
the Borrower to cure within the applicable cure period, if any, any or all of the Obligations
shall, at the option of the Bank and notwithstanding any time or credit allowed by any instrument
evidencing or document relating to the Obligations, be immediately due and payable without notice
or demand (except for the events of default noted in Subsections (j) and (k) above, for which the
Bank must give written notice to the Borrower). The Bank may then, without first resorting to any
other property securing the Obligations from other parties (including, without limitation, property
provided by any affiliate of Borrower), exercise any one or more of the rights and remedies granted
pursuant to this Agreement and/or the Credit Policy and also

6

 

exercise any or all of the rights and remedies afforded to a secured party under the Uniform
Commercial Code as enacted in Ohio or the Borrower’s state of operation or to the Bank under the
Act. In case of any event of default hereunder, Borrower agrees, upon the request of the Bank, to
promptly dissolve or cause the dissolution of any subsidiary or affiliate providing secured
property under a PLEDGE AND SECURITY AGREEMENT and the distribution of such secured property to
Borrower. Upon repossession or recovery of the secured property by the Bank, it may, after
reasonable written notification to the Borrower, sell the secured property at public or private
sale, at which sale the Bank may become the purchaser. The proceeds of sale of the secured
property shall be applied to the Obligations in such manner and order of priority as the Bank may
determine. Pending any such action, the Bank may liquidate the secured property and/or continue to
use and exercise rights of ownership pertaining to the secured property. Borrower does hereby
make, constitute and appoint Bank as its true and lawful attorney-in-fact to deal with the secured
property and, in the Borrower’s name and stead to sell, assign, collect, compromise, settle and
release of record any portion of the secured property as fully as Borrower could do if acting for
itself. The Borrower hereby agrees to be liable to the Bank for any deficiency that may result
upon such liquidation and sale of the secured property and waives all claims for damages by reason
of any seizure, repossession, retention, use or sale of said secured property. The requirement of
reasonable notice, if necessary, shall be met if such notice is mailed, postage prepaid, to the
first of the places of business of the Borrower shown in this Agreement at least ten (10) days
before the time of the sale or other disposition. While exercising its rights as a secured party
hereunder, including use and receipt of benefits from the secured property, and provided the Bank’s
actions are commercially reasonable under the circumstances or do not constitute negligence or
willful misconduct, the Bank shall not be liable in any fashion to the Borrower or third party
(including without limitation Borrower’s customers or shareholders) for any damages arising from
such use, or any obligations, duties or liabilities of the Borrower in connection therewith
(including without limitation Borrower’s contracts, agreements, guarantees, commitments or
warranties). Each of the rights, powers and remedies provided herein or now or hereafter existing
at law or in equity or otherwise shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for in this Agreement or hereafter existing at law or
in equity or otherwise. The exercise of any such rights, powers or remedies shall not preclude the
simultaneous or later exercise of any or all other such rights, powers or remedies.

     8. WAIVERS: CONTINUED LIABILITY. The Bank shall not be deemed to have waived any of
its rights in this Agreement or to the secured property unless such waiver is in writing and signed
by the Bank and such waiver shall not operate as a waiver of any other default or of the same
default on a subsequent occasion. No renewal or extension of time of payment of the Obligations at
any rate of interest, no release, surrender, exchange or modification of the secured property, no
release of any person primarily or secondarily liable on the Obligations (including any maker,
endorser, guarantor or surety), no delay in enforcement of payment of the Obligations and no delay,
omission or forbearance in exercising any right or power with respect to the Obligations, the
secured property, or this Agreement shall affect the liability of the Borrower to the Bank.

     9. DURATION. The term of this Agreement shall commence with the date hereof and end
on the termination date, which is the date when the Borrower has paid in full all of the
Obligations secured hereby, and either: (i) the Bank gives written notice to the Borrower that no
further advances are to be made hereunder, or (ii) the Borrower gives written notice to the Bank
that it does not intend to apply for further advances hereunder. Until such termination, this
Agreement shall be a continuing one, and after such termination any liabilities hereunder of the
Borrower to the Bank not satisfied prior to such termination shall survive and remain in full force
and effect until satisfied.

7

 

     10. ATTORNEY-IN-FACT. Borrower hereby appoints the Bank its irrevocable
attorney-in-fact, with full power of substitution, in its name or otherwise, but at the Borrower’s
sole cost and expense (i) to transfer any shares of stock or Securities Collateral hereby or
otherwise secured to Bank into the name of the Bank or its designee or assignee, (ii) to endorse on
behalf of the Borrower any promissory notes or other instruments delivered by the Borrower to the
Bank, (iii) to execute and/or record such documents and instruments as the Bank, in its sole
judgment, deems necessary or appropriate to further evidence or perfect or affect a transfer of the
security interest granted to the Bank herein or otherwise, and (iv) to record this Agreement as a
power of attorney where the Bank deems appropriate.

     11. NOTICE. (a) Any written notice, approval, or direction provided for in this
Agreement to be given by the Bank to the Borrower shall include and be satisfied by notice given to
the Borrower by: (i) hand delivery, regular first class mail, or any other form of physical
delivery, or (ii) facsimile, whether or not receipt of such facsimile is confirmed with the
Borrower or a follow-up hard copy is mailed or otherwise physically delivered to the Borrower, and
(b) any written notice provided for in this Agreement to be given by the Borrower to the Bank shall
only include and be satisfied by notice given to the Bank by: (i) registered or certified mail
(postage prepaid, return receipt requested) or some other form of delivery whereby receipt is
confirmed, or (ii) facsimile, but only if receipt by the Bank is confirmed by the Borrower and a
follow-up hard copy is delivered to the Bank by the means specified in subsection (b)(i) of this
Section 11.

     12. GENERAL. All rights and liabilities hereunder shall be governed and limited by
and construed in accordance with the Act and the laws of the State of Ohio (matters related to
eligibility for advances and the rate of interest assessed by the Bank on advances or other
Obligations shall be governed solely by the Act). This Agreement shall inure to the benefit and
bind the Bank and the Borrower and their respective successors and assigns. Any provision hereof
which may prove limited or unenforceable, under any laws or judicial rulings shall not affect the
validity or enforcement of the remainder of the provision or of any other provision.

8

 

	 	 	 	 	 	 	 	 	 
	FEDERAL HOME LOAN BANK

           OF CINCINNATI	 	 	 	BORROWER:
	 
	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	By	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its Senior Vice President	 	 	 	[Signature of Officer Authorized By Board
to Execute This Agreement]
	 
	 	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its Vice President,	 	 	 	Type Name of Authorized Officer and Title
	   Credit Risk Management	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	And	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	[Signature of Officer Authorized By Board
to Execute This Agreement]
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Type Name of Authorized Officer and Title
	 
	 	 	 	 	 	 	 	 
	Two Witnesses to Signature of	 	 	 	 	 	 
	Borrower’s Officers:	 	 	 	[IMPRESS CORPORATE SEAL HERE OR
	 	 	 	 	 	 	INDICATE “NO CORPORATE SEAL”]
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

9

 

STATE OF                                                                                 )

COUNTY OF                                                                                 ) S:

     On this ___, before me appeared
___, to me personally known, who being by me duly sworn, did say that
he or she is ___President of the above-named Borrower, a corporation; that the seal
affixed to the foregoing instrument is the seal of said corporation; that said instrument was
signed and sealed on behalf of said corporation by authority of its Board of Directors; and said
___President acknowledged said instrument to be the free act and deed of said corporation
and his or her free act and deed as such officer, for the uses and purposes in said instrument
mentioned.

My commission expires:

	 	 	 
	 

	 	Notary Public,                                                            
	 

	 	(signature)
	 
	 	 
	                                        

	 	County of                                                             
	 
	 	 
	 

	 	State of                                                             
	 
	 	 
	[IMPRESS NOTARY SEAL HERE]
	 	 

10EX-10.1.B

 

EXHIBIT 10.1.B

Form of Blanket Security
Agreement, for new signatories on and after November 21, 2005

FEDERAL HOME LOAN BANK OF CINCINNATI

BLANKET SECURITY AGREEMENT

     This Blanket Security Agreement (the “Blanket Agreement”) is entered this ___day of
                    , 200___, by and between                                         , a                      organized under the laws of
                     (“Borrower”), and the FEDERAL HOME LOAN BANK OF CINCINNATI, a corporation organized
under the federal laws of the United States of America (the “FHLBank”).

     This Blanket Agreement is entered in consideration of (i) the agreement of FHLBank from time
to time to consider making secured Advances to Borrower, and (ii) the agreements of Borrower
contained in this Blanket Agreement. However, neither this Blanket Agreement nor any Addendum,
taken alone or together with any other FHLBank document or FHLBank’s Credit Policy, should be
deemed an absolute, irrevocable or unconditional agreement or commitment by the FHLBank to make,
amend, extend, restate, relend or replace Advances hereunder or otherwise to Borrower. FHLBank
expressly reserves the right and power in its discretion to either grant or deny any such
Advance requested or secured hereunder.

     1. DEFINITIONS. Each term used in this Blanket Agreement is defined in this Section 1
as follows.

          “Act” means the
Federal Home Loan Bank Act, codified at 12 United States Code Sections 1421
through 1440, as the same may be modified from time to time, together with the regulations
implementing such act, codified at 12 Code of Federal Regulations Parts 900 through 998, as the
same may be modified from time to time.

          “Advance” means an advance of funds that FHLBank makes, extends or renews from time to time to
Borrower pursuant to the Credit Policy. For purposes of this agreement, the term “Advance” also
includes any other FHLBank extension of credit such as Letters of Credit issued on a Member’s
behalf or collateralized swaps.

          “Affiliate” means an entity that is affiliated with Borrower because (i) Borrower owns or
controls such affiliate in whole or in part, (ii) such affiliate owns or controls Borrower in whole
or in part, or (iii) such entity owns or controls both Borrower and such affiliate in whole or in
part.

          “Agricultural Mortgage Collateral” means any Collateral, whether now or hereafter acquired,
that consists of (i) a loan that the Borrower or the Pledging Affiliate reports to its primary
regulator is a “farm real estate loan,” or (ii) a promissory note that the maker secures with a
mortgage or deed of trust of real property used for agricultural purposes, together with all rights
of the holder of such note under all documents pertaining to such note, mortgage or deed of trust,
and mortgaged or conveyed property, and the proceeds, replacements, and products thereof, whether
now or hereafter acquired.

          “Applicable Document” means any contract, agreement, lease, instrument, articles or
certificates of organization or incorporation, charter, organizational document, code of
regulations, by-law, or other writing to which FHLBank, Borrower, or any Pledging Affiliate is a

1

 

party that imposes obligations on any of them or regulates the conduct of the affairs of any
of them.

          “Applicable Law” means any of the following applicable to Borrower or any Pledging Affiliate:
law, statute, treaty, convention, rule, regulation, code, decree, judgment, ordinance, guide,
manual, order or other obligation other than an Applicable Document, pursuant to which a government
or any agency, subdivision, official, or court or tribunal thereof that regulates FHLBank,
Borrower, or any Pledging Affiliate or the activities of any of them.

          “Blanket Agreement” means this Blanket Security Agreement.

          “Blanket Mortgage Collateral” means all of the Mortgage Collateral in which Borrower and any
applicable Pledging Affiliate has (i) an interest and (ii) granted a security interest to FHLBank,
whether now or hereafter acquired, and the proceeds, replacements, and products thereof, whether
now or hereafter acquired.

          “Borrower” means the Borrower identified in the first sentence of this Blanket Agreement.

          “Collateral” means any Mortgage Collateral or Securities Collateral, or other collateral
security, whether now or hereafter acquired, in which Borrower or a Pledging Affiliate has granted
a security interest, lien or other collateral encumbrance in favor of FHLBank to secure Borrower’s
Obligations pursuant to this Blanket Agreement, any Addendum or amendment to it, or any other
agreement with FHLBank from time to time, whether now or hereafter acquired, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Collateral Maintenance Requirement” means the amount of Lendable Collateral Value of
Qualifying Collateral that FHLBank determines from time to time in accordance with the Credit
Policy is necessary to secure the amount of Advances to Borrower then outstanding and unpaid.

          “Commercial Real Estate Mortgage Collateral” means any Collateral, whether now or hereafter
acquired, that consists of a promissory note that the maker secures with a mortgage or deed of
trust on real property and that is used for retail office, industrial, or other commercial use,
together with all rights of the holder of such note under all of documents pertaining to such note,
and mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds, replacements,
and products thereof, whether now or hereafter acquired.

          “Credit Policy” means the Credit Policy that FHLBank issues to govern the making of Advances
to Members from time to time, including any documents or guides referred to or incorporated in such
policy, as FHLBank may modify such Credit Policy from time to time. Any such modification is
binding on Borrower and any Pledging Affiliate. The Supplemental Real Estate Collateral Guide is a
part of the Credit Policy.

          “Cross Collateralized Loan” means any loan or interest therein constituting a part of Mortgage
Collateral that is secured by collateral that also secures a loan or loans or interest therein that
are not included in Mortgage Collateral. “Cross Collateralized Loan” also means a

2

 

loan included in Specific Mortgage Collateral that is secured by collateral for another loan
or loans that are not so included in Specific Mortgage Collateral or that are not Qualifying
Collateral..

          “DDA” means the demand deposit account of Borrower with FHLBank.

          “Deed of Trust” means a deed of trust used to secure the obligations of an obligor on a
secured loan included in Collateral in lieu of a mortgage.

          “Event of Default” means any of the events described in Section 10 hereof.

          “FHLBank” means the Federal Home Loan Bank of Cincinnati, a corporation organized under the
federal laws of the United States of America, and for purposes of any indemnification or similar
provision under the Blanket Agreement, includes all officers, directors, employees and agents of
FHLBank.

          “Hazardous Material” means a material that, if it is released into the environment, Applicable
Laws require the owner or operator of the property at which such release occurred to remedy the
effect on the environment of such release.

          “Home Equity Line of Credit Collateral” means Collateral, whether now or hereafter acquired,
that consists of an agreement between a borrower and a lender for the lender to advance funds to
such borrower and the borrower to repay such advances, pursuant to which the borrower grants a
mortgage or deed of trust of property that is improved with one to four units, each suitable for
the residence of one family, together with all rights of the lender under all documents pertaining
to such agreement, mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Junior Mortgage Collateral” means any Collateral, whether now or hereafter acquired, that
consists of a promissory note that the maker secures with a mortgage or deed of trust of real
property and that is subject to a lien inferior in priority to one or more mortgages or deeds of
trust, together with all rights of the holder of such note under all documents pertaining to such
note, mortgage or deed of trust, and mortgaged or conveyed property, and the proceeds,
replacements, and products thereof whether now or hereafter acquired.

          “Lendable Collateral Value” means the value that FHLBank determines from time to time that
Qualifying Collateral has.

          “Letter of Credit” means a letter of credit that FHLBank has issued on behalf of Borrower, for
payments of drafts on which Borrower must reimburse FHLBank;

          “Mortgage Collateral” means any Collateral, whether now or hereafter acquired, that consists
of promissory notes that the maker secures with a mortgage or deed of trust of real property that
is improved with one to four units, each suitable for the residence of one family, together with
all rights of the holders of such notes under all documents pertaining to such notes, mortgages or
deeds of trust, and mortgaged or conveyed property, and if applicable, Multi-family Mortgage
Collateral, Agricultural Mortgage Collateral, Commercial Real Estate Mortgage

3

 

Collateral, Home Equity Line of Credit Collateral, and Junior Mortgage Collateral,
participations in any of the foregoing to the extent that the Credit Policy permits from time to
time, and the proceeds, replacements, and products thereof, whether now or hereafter acquired.

          “MPP” means FHLBank’s Mortgage Purchase Program, as FHLBank may modify it from time to time.

          “Multi-family Mortgage Collateral” means any Collateral, whether now or hereafter acquired,
that consists of a promissory note that the maker secures with a mortgage or deed of trust of real
property that is improved with five or more units, each suitable for the residence of one family,
together with all rights of the holders of such note under all documents pertaining to such note,
mortgage or deed of trust, and mortgaged or conveyed property, and if applicable, participations in
any of the foregoing to the extent that the Credit Policy permits from time to time, and the
proceeds, replacements, and products thereof, whether now or hereafter acquired.

          “Obligations” means all indebtedness and liabilities of Borrower and any Pledging Affiliate to
FHLBank, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, including any extensions or renewals, and whether incurred alone or with others,
as maker, guarantor, endorser, or surety, plus interest thereon, and all costs of collection, legal
expenses and attorney fees that FHLBank pays or incurs in administering, collecting, or enforcing
any of such indebtedness or liabilities, or realizing on security granted in this Blanket Agreement
or otherwise. Such Obligations include without limitation the obligations of Borrower to FHLBank
under the MPP Program and the obligation of Borrower to reimburse FHLBank the amount of any drafts
on any Letter of Credit that FHLbank may honor.

          “One to Four Family Mortgage Collateral” means any Collateral, whether now or hereafter
acquired, that consists of promissory notes that the maker secures with a mortgage or deed of trust
of real property that is improved with one to four units, each suitable for the residence of one
family, together with all rights of the holders of such notes under all documents pertaining to
such notes, mortgages or deeds of trust, and mortgaged or conveyed property, participations in any
of the foregoing to the extent that the Credit Policy permits from time to time, and the proceeds,
replacements, and products thereof, whether now or hereafter acquired.

          “Pledging
Affiliate” means an entity that is providing Collateral, by
completing and executing a Pledging Affiliate Addendum in the form
that FHLBank may specify from time to time and that is affiliated with Borrower because (i)
Borrower owns or controls such affiliate in whole or in part, (ii) such affiliate owns or controls
Borrower in whole or in part, or (iii) such entity owns or controls both Borrower and such
affiliate in whole or in part.

          “Qualifying Collateral” means Collateral that FHLBank determines in accordance with the Act
and the Credit Policy, including the underwriting, documentation, and valuation requirements
incorporated therein from time to time, must secure the repayment of Advances. Excluded from
Qualifying Collateral, without limitation, is Collateral that Borrower or a Pledging Affiliate has
participated or Transferred to the extent that the Credit Policy does not authorize such
participation or Transfer.

4

 

          “Scorecard Validation Statistics” means any reports and underlying schedules and statistics
used to validate custom scorecard models, or vendor provided scorecards, including without
limitation, bureau scores, KS statistics, population stability statistics and reports,
characteristic analysis statistics and reports, maximum delinquency reports and distributions,
vintage analyses or other reports showing trends in scorecard predictiveness, or any other reports
or statistics used in validating the initial or ongoing predictiveness or scorecards or scoring
systems used to underwrite or service loans pledged to the FHLBank, including, without limitation,
behavioral or bankruptcy scores and models.

          “Specific Mortgage Collateral” means the Mortgage Collateral, if any, specifically identified
in any Assignment of Mortgage that Borrower or any Pledging Affiliate may have heretofore executed
and delivered or may hereafter execute and deliver to FHLBank from time to time.

          “Securities Collateral” means obligations of the United States of America, or obligations
fully guaranteed by the United States of America, or other securities (whether certificated or
uncertificated), investment property, financial assets, security entitlements, accounts or other
equity or ownership interests in any corporation, partnership, limited liability company, trust or
other entity, association or organization, including without limitation any affiliate which holds
or may hold, directly or indirectly, transferred assets of the Borrower, which obligations or
securities (i) are approved by the FHLBank as Qualifying
Collateral, (ii) delivered to the FHLBank’s
possession or (at the FHLBank’s sole discretion) are otherwise
in the FHLBank’s control or subject to an
acceptable negative pledge, (iii) are specifically identified in any Assignment of Securities that
Borrower or any Pledging Affiliate may heretofore have executed and delivered or may hereafter
execute and deliver to FHLBank from time to time, and (iv) are to be treated as Collateral
(whether hereunder or pursuant to other agreements with FHLBank), and all replacements therefor and
proceeds thereof (hereinafter called “Securities Collateral”).

          “Status Report” means specific, pledged loan level information that FHLBank may request from
time to time. Such information may include, but is not limited to, information identifying the
borrower, account and loan numbers, servicing information, principal, interest, tax, and insurance
payment status, payment or delinquency histories since loan origination, appraisal or underlying
collateral valuation sources, loan to value, debt to income or housing ratios and the components
used in the calculation thereof, the existence or requirement to maintain single premium credit
life insurance, the existence of prepayment penalties, loan term data including payment amounts,
interest rates, annual percentage rates, margins, caps, floors, balloon amounts, balloon dates,
maturities, amortization periods, HUD-1 Statements or any specific information reflected on those
Statements, FICO scores, bureau scores, or internal credit scoring model scores or results.

          “Supplemental Collateral” means Agricultural Mortgage Collateral, Commercial Real Estate
Mortgage Collateral, Home Equity Line of Credit Collateral, and Junior Mortgage Collateral.

          “Supplemental Real Estate Collateral Guide” means FHLBank’s Supplemental Real Estate
Collateral Program Policies and Procedures, as FHLBank may modify it from time to time. Any such
modification is binding on Borrower and any Pledging Affiliate.

5

 

          “Transfer” means to sell, grant, mortgage, pledge, assign, lease, grant a security interest in
or lien on, participate or otherwise transfer, directly or indirectly, by operation of law, or
otherwise, any interest in any item of property, whether real or personal.

          “UCC” means the Uniform Commercial Code in effect in Ohio from time to time, unless the
Uniform Commercial Code in effect in Ohio directs the application of the law of a different
jurisdiction to the perfection or effect of perfection or non-perfection of a security interest in
personal property. In the latter event, the “UCC” means the Uniform Commercial Code then in effect
in such other jurisdiction.

     2. GRANT OF SECURITY INTEREST. Borrower grants and shall cause each Pledging
Affiliate to grant to FHLBank, its successors and assigns from time to time a security interest in
the Collateral identified in Exhibit A to this Blanket Agreement and/or any Addendum to it, whether
now existing or that Borrower or any Pledging Affiliate hereafter attaches, in order to secure the
performance of the Obligations of Borrower and each Pledging Affiliate from time to time for
purposes of this Blanket Agreement. As to any rights of FHLBank as a secured party hereunder,
FHLBank shall be deemed to act as the exclusive security agent and attorney-in-fact of Borrower and
any Pledging Affiliate, as further specified in Section 14 below. Borrower, any Pledging Affiliate,
and FHLBank may modify from time to time the Collateral in which Borrower and any such Pledging
Affiliate have granted a security interest to FHLBank by completing
and executing a Blanket
Security Agreement Amendment, in the form that FHLBank may specify
from time to time.

     3. REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants, and shall cause
each Pledging Affiliate to represent and warrant, and each Pledging Affiliate from time to time
represents and warrants, in each case to FHLBank effective as of the Effective Date and each time
that Borrower obtains an Advance, as follows:

          (a) Borrower and each Pledging Affiliate from time to time is duly organized and validly
existing under the law governing its organization.

          (b) No Applicable Law or Applicable Document limits the power of Borrower or any Pledging
Affiliate to enter this Agreement or perform its obligations hereunder, and the execution of this
Agreement by Borrower and/or any Pledging Affiliate, will not violate or result in a default under
any Applicable Law or Applicable Document.

          (c) Borrower and each Pledging Affiliate have full power and authority to enter this Blanket
Agreement and to perform their respective obligations hereunder.

          (d) This Blanket Agreement is the legal, valid, and binding obligation of Borrower and each
Pledging Affiliate.

          (e) The execution of this Agreement and the performance of their respective obligations
hereunder by Borrower and each Pledging Affiliate has been duly authorized.

          (f) Neither Borrower nor any Pledging Affiliate need obtain any security exchange’s consent or
approval to enter this Blanket Agreement or perform any of its obligations hereunder.

6

 

          (g) No securities or “blue sky” law requires the registration of any Collateral prior to or in
connection with the sale of such Collateral.

          (h) Borrower is either a member in good standing of FHLBank or a nonmember that the Act
authorizes to obtain or hold advances.

          (i) Borrower and each Pledging Affiliate holds all of the right, title, and interest in, to,
and under the Collateral in which it has granted a security interest to FHLBank, and such interest
is free and clear of all claims, security interests, liens, participation interests, rights of set
off, or any other encumbrances or legal or beneficial interests whatsoever other than (i) full or
partial participations in favor of Pledging Affiliates of Borrower that have granted a security
interest in such participations to FHLBank, and (ii) the rights of other holders of security
interests with which FHLBank has entered into a written agreement governing the relative priorities
of the security interests of FHLBank and such other party in such Collateral. The title to all
such Collateral (other than that participated in whole or in part to an Affiliate) is and remains
marketable.

          (j) Borrower and each Pledging Affiliate has the right and authority to grant a security
interest in the Collateral provided in this Blanket Agreement and otherwise to perform their
respective obligations under this Blanket Agreement.

          (k) Each document that Borrower or any Pledging Affiliate has given or may give FHLBank from
time to time (i) in connection with obtaining Advances, (ii) pertinent to Collateral, or (iii)
otherwise pursuant to this Blanket Agreement, including financial statements, is and remains true
and complete and does not fail to include information that prevents the same from being misleading.

          (l) The information that Borrower and each Pledging Affiliate has or may from time to time
give to (i) FHLBank or (ii) the entity or entities having regulatory authority over FHLBank,
Borrower or any Pledging Affiliate, including (without limitation) in connection with the
Collateral and any financial statement, is true and complete.

          (m) No release of a Hazardous Material has occurred at any property securing any item of
Collateral, the effect of which on the environment Applicable Laws would require the owner or
operator of such property to remedy.

          (n) The Qualifying Collateral in which either Borrower or any Pledging Affiliate has granted
to FHLBank a security interest has a Lendable Collateral Value equal to or greater than the
Collateral Maintenance Requirement.

          (o) Each document that evidences Mortgage Collateral is genuine and in all respects what it
appears to be.

          (p) The obligations of each borrower under each mortgage loan included in Mortgage Collateral
are valid and enforceable.

          (q) The amount that Borrower or the applicable Pledging Affiliate represents to FHLBank that
the borrower under each mortgage loan owes on such mortgage loan included

7

 

in Mortgage Collateral is the correct amount unconditionally due and owing, and such borrower
does not dispute that such borrower owes such amount.

          (r) The lien of each mortgage included in Mortgage Collateral (other than those liens created
under the Home Equity Line of Credit Mortgage Collateral and Junior Mortgage Collateral) is a first
and best lien against the property that it encumbers, except for the lien of nondelinquent taxes.

     4. AFFIRMATIVE COVENANTS. Borrower shall, Borrower shall cause each Pledging
Affiliate to, and each Pledging Affiliate shall, do the following:

          (a) furnish FHLBank from time to time evidence satisfactory to FHLBank of the authority of
representatives of Borrower or any Pledging Affiliate to obtain, amend, or renew Advances or specify
that Collateral in which Borrower or Pledging Affiliate may grant a security interest to FHLBank;

          (b) deliver to FHLBank such evidence as it may request of Borrower’s eligibility to obtain
Advances, and its interest or the applicable Pledging Affiliate’s interest in the Collateral;

          (c) permit FHLBank to enter facilities at which the Collateral or evidence of the Collateral
is located and afford FHLBank working space in such facilities to inspect the Collateral and all
documents, tangible or electronic, related to or evidencing such Collateral;

          (d) permit FHLBank to copy any document, tangible or electronic, evidencing, relating or
pertaining to the Collateral;

          (e) cooperate in any inspection or audit of any document, electronic or tangible, evidencing
or relating or pertaining to Collateral that FHLBank may deem necessary or appropriate from time to
time;

          (f) cause any other party acquiring an interest in Collateral to satisfy the obligations of
each Pledging Affiliate and Borrower related to such Collateral under this Blanket Agreement;

          (g) collectively maintain Qualifying Collateral with a Lendable Collateral Value equal to or
greater than the Collateral Maintenance Requirement;

          (h) pay all taxes, assessments and any other governmental charges levied, assessed, or imposed
upon any Collateral and any constituent property thereunder;

          (i) inform FHLBank in writing promptly after any change in the location of Borrower’s or any
Pledging Affiliate’s chief executive office, jurisdiction of organization or charter situs;

          (j) inform FHLBank promptly of any occurrence or pending occurrence that renders or may make
Borrower ineligible for membership in the FHLBank;

8

 

          (k) inform FHLBank promptly of any merger, consolidation, or sale of substantially all the
stock or assets of Borrower or any Pledging Affiliate, or the acquisition by Borrower or any
Pledging Affiliate of substantially all of the stock or assets of another entity;

          (l) inform FHLBank promptly of any change in (i) the physical location of any Collateral, (ii)
any servicer of any Mortgage Collateral, or (iii) any securities intermediary holding any
Securities Collateral;

          (m) respond promptly, accurately, and completely to any FHLBank inquiry concerning (i) the
location of the chief executive office, jurisdiction of organization, or charter location of
Borrower or any Pledging Affiliate, (ii) the physical location of any Collateral, (iii) the
identity and other information relating to any servicer of any Mortgage Collateral, or (iv) the
identity and any information relating to any securities intermediary holding Securities Collateral;

          (n) pay the costs that FHLBank incurs from time to time in auditing and verifying or having
third parties verify or audit on its behalf (i) the financial condition of Borrower and each
Pledging Affiliate, and (ii) the existence of sufficient Qualifying Collateral with a Lendable
Collateral Value equal to or greater than the Collateral Maintenance Requirement to secure Advances
to Borrower outstanding from time to time;

          (o) if FHLBank notifies Borrower that the Lendable Collateral Value of Qualifying Collateral
is less than the Collateral Maintenance Requirement, either (i) immediately grant FHLBank a
security interest in additional Qualifying Collateral necessary to increase the Lendable Collateral
Value of Qualifying Collateral to the Collateral Maintenance Requirement, or (ii) repay so much of
the Advances or other extensions of credit or reduce the stated amounts of outstanding Letters of
Credit as may be necessary to thereafter make the Lendable Collateral Value of Qualifying
Collateral equal to or less than the Collateral Maintenance Requirement;

          (p) comply in all respects with the Credit Policy, as FHLBank may amend it from time to time;

          (q) deliver to FHLBank such evidence of Borrower’s or Pledging Affiliate’s interest in the
Collateral and its availability for use as Collateral as FHLBank may from time to time request;

          (r) provide to FHLBank upon FHLBank’s request, statements and information with respect to the
business and financial status of Borrower and each Pledging Affiliate, including profit and loss
reports, income statements, balance sheets, and other financial information, all prepared in
accordance with generally accepted accounting principles, and with such details and formats as
FHLBank may require from time to time;

          (s) if any mortgage loan included in Mortgage Collateral or in a pool backing any Securities
Collateral has been originated or serviced in violation of any Applicable Law, including any
applicable predatory lending, abusive loan practice, or high interest loan law, notify FHLBank of
such violation promptly upon discovering such violation, and if the Credit Policy requires that any
such Mortgage Collateral must be Qualifying Collateral in order to secure the amount of Advances,
the stated amount of Letters of Credit, or any other extensions of credit then outstanding, and
FHLBank so directs, (i) grant a security interest in or deliver a

9

 

substitute Collateral that will constitute Qualifying Collateral to replace the affected
security or mortgage loan, or (ii) reduce the amount of Advances, stated amounts of Letters of
Credit, or other extensions of credit then outstanding;

          (t) if FHLBank requires, make, execute, record, and deliver to FHLBank additional agreements,
financing statements, notices, assignments, listings, powers, and other documents in connection
with all or a part of the Collateral;

          (u) concurrently with the delivery of Collateral to FHLBank that FHLBank requires or within
fourteen (14) days after FHLBank requests, deliver to FHLBank a Status Report specifying and
describing the Collateral with accompanying schedules in a format and with such details that
FHLBank may prescribe from time to time and provide such information that FHLBank requires to value
such Collateral;

          (v) furnish annually and at such other times as FHLBank may request, or cause Borrower’s
external auditor or other third party consulting firm that FHLBank has approved to furnish, an
audit report, in such detail as FHLBank from time to time may specify with respect to Collateral,
Qualifying Collateral, compliance with applicable Collateral Maintenance Requirements, and
compliance with the Credit Policy, that Borrower’s external auditor or such third party has
prepared in accordance with generally accepted auditing standards or generally accepted accounting
principles, as applicable;

          (w) furnish within fourteen (14) days after FHLBank’s request any Scorecard Validation
information that Borrower or any Pledging Affiliate has on file.

          (x) whenever the authority of the persons authorized on behalf of Borrower or any Pledging
Affiliate to obtain Advances, grant a security interest in Collateral, or execute or modify this
Blanket Agreement changes, promptly notify FHLBank of such change and give FHLBank a copy of the
most current resolution or resolutions so authorizing such representatives or a list of the names
and specimen signatures of such authorized representatives that an authorized representative of
Borrower or such Pledging Affiliate certifies to FHLBank is accurate.

     5. NEGATIVE COVENANTS. Borrower shall not, and Borrower shall not permit any Pledging
Affiliate to:

          (a) except to the extent and in the manner authorized in Section 7 hereof, Transfer any
Collateral or any interest therein;

          (b) suffer to exist against Borrower or any Pledging Affiliate or the successors and assigns
of either, including (without limitation) FHLBank, any right of set off that any person or entity
may exercise under or related to any of the Collateral; or

          (c) transfer possession of the Collateral to any party other than a Pledging Affiliate,
FHLBank, or a collateral agent designated by FHLBank.

     6. SECURITIES COLLATERAL.

10

 

          (a) If the Collateral includes Securities Collateral, Borrower shall grant or cause one or
more Obligor Entities to grant a security interest in such Securities Collateral having a fair
market value or a principal dollar amount acceptable to FHLBank.

          (b) Borrower shall, and Borrower shall cause each Pledging Affiliate granting FHLBank a
security interest in Securities Collateral to, endorse in favor of FHLBank (in form acceptable to
FHLBank) all Securities Collateral that consists of certificated securities.

          (c) FHLBank shall be an entitlement holder and in sole control of all Securities Collateral
for purposes of Article 8 of the UCC. FHLBank shall have full power under Article 8 of the UCC to
hold and dispose of such Securities Collateral as financial assets, including the full power to
exercise voting rights and receive any proceeds or income resulting from stock splits, stock
dividends, cash dividends, or otherwise.

          (d) Borrower shall, and Borrower shall cause each Pledging Affiliate granting a security
interest in Securities Collateral to, act (and consent to such further acts) as FHLBank may request
to (i) establish and maintain FHLBank’s control over any Securities Collateral as provided in
Section 8-106 of the UCC, and (ii) obtain the agreement of (A) the issuer of any Securities
Collateral to comply with FHLBank’s instructions without any further consent of Borrower, and (B)
any securities intermediary holding Securities Collateral to comply with FHLBank’s entitlement
orders without the further consent of Borrower.

          (e) While any Event of Default is continuing and unless waived by FHLBank, Borrower or
Pledging Affiliate, as the case may be, may (i) collect and retain any interest or principal
payments, dividends, or other distributions that the issuer of such Securities Collateral or any
securities intermediary holding such Securities Collateral may distribute, and (ii) apply any such
principal payments, dividends, and other distributions that FHLBank collects to the principal or
interest or both of the Obligations in whatever manner or order as FHLBank in its sole discretion
may elect.

     7. MORTGAGE COLLATERAL.

          (a) Except to the extent that FHLBank directs otherwise, Borrower and each Pledging Affiliate
that has granted a security interest in Mortgage Collateral may retain possession of the same for
purposes of servicing, collecting, and enforcing such Mortgage Collateral. Borrower and each
Pledging Affiliate shall hold such Mortgage Collateral and the proceeds of and collections from
such Mortgage Collateral in trust for FHLBank’s security and benefit. Borrower shall, and shall
cause each Pledging Affiliate to, comply with all directions that FHLBank gives pursuant to this
Blanket Agreement. Except to the extent that FHLBank directs otherwise or this Blanket Agreement
otherwise provides, Borrower and each Pledging Affiliate that has granted a security interest in
Mortgage Collateral may in the ordinary course of its business (i) retain all collections from
Mortgage Collateral, (ii) release mortgages included in Mortgage Collateral, (iii) retain all
collections from Mortgage Collateral, and act to collect delinquent payments due under Mortgage
Collateral, including exercising the remedy of foreclosure. Neither Borrower nor any Pledging
Affiliate need disclose the interest of FHLBank in such Mortgage Collateral while so acting.

11

 

          (b) FHLBank from time to time may direct Borrower and any Pledging Affiliate that has granted
a Security interest in Mortgage Collateral to (i) segregate the documents evidencing or securing
each mortgage loan that constitutes a part of Mortgage Collateral in file folders, labeled with the
name of the borrower and/or number used to identify the loan, from the documents evidencing or
securing the other mortgage loans that constitute Mortgage Collateral, to mark such folders and
documents as Mortgage Collateral in which FHLBank has a security interest, (ii) segregate
physically all such Mortgage Collateral from mortgage loans that do not constitute Mortgage
Collateral, (iii) segregate physically Mortgage Collateral from any other assets in Borrower’s or
such Pledging Affiliate’s possession, and (iv) segregate Mortgage Collateral physically from loan
documents that are not part of Mortgage Collateral within a collateral vault or in a separate
collateral vault.

          (c) FHLBank from time to time may direct Borrower and any Pledging Affiliate possessing
Mortgage Collateral to produce (i) lists of (A) the mortgage loans included in Mortgage Collateral
and (B) the documents constituting or pertaining to them, whether paper or electronic, and (ii)
reports containing information pertaining to the same in such detail that FHLBank may require.
Such information may include details of loan structure, terms of loans, and underwriting. Such
documents shall include the following: ancillary security agreements, policies and certificates of
insurance or guarantees, rent assignments, FHA mortgage insurance or VA loan guarantee
certificates, title insurance policies, evidence of recordation, applications, underwriting
materials, surveys, appraisals, approvals, permits, notices, opinions of counsel, and loan
servicing data.

          (d) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to endorse in form acceptable to FHLBank, including
endorsement in blank if FHLBank so directs, all promissory notes included in Mortgage Collateral
in favor of FHLBank and any collateral agent that FHLBank may designate.

          (e) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to deliver physical possession of such Mortgage
Collateral, including any participation certificates or related documents, to FHLBank or a
collateral agent designated by FHLBank.

          (f) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to (i) pay immediately to FHLBank any and all
collections from Mortgage Collateral, (ii) deposit in an account designated by FHLBank from time to
time all collections, including checks, drafts, cash, and other remittances of payment on Mortgage
Collateral, from Mortgage Collateral, and (iii) to direct the obligors on mortgage loans included
in Mortgage Collateral to remit payments due under such Mortgage Collateral to FHLBank or to a
collateral agent or depository designated by FHLBank from time to time. FHLBank may apply all
amounts that it receives as collections or proceeds of Mortgage Collateral to principal and
interest of the Obligations, in whatever manner or order FHLBank in its sole discretion may elect.

          (g) FHLBank may from time to time direct Borrower and any Pledging Affiliate that has granted
a security interest in Mortgage Collateral to assign the mortgages

12

 

included in such Mortgage Collateral to FHLBank, a collateral agent designated by FHLBank or
MERS, or to notify MERS of the assignment of such Mortgage Collateral to FHLBank or such collateral
agent.

          (h) With regard to Specific Mortgage Collateral and, to the extent that FHLBank shall direct,
Blanket Mortgage Collateral, Borrower shall, and shall cause any Pledging Affiliate that has
granted a security interest in Mortgage Collateral, to promptly notify FHLBank if any of the
following occur:

               (i) payment of the remaining principal balance of a mortgage loan;

               (ii) payment in full of a mortgage loan occurs; or

               (iii) whenever (A) casualty damage to any building encumbered by a mortgage securing a
mortgage loan decreases the appraised value of such building twenty-five percent (25%) or more,
and (B) such damage cannot be repaired promptly.

          (i) Borrower or any Pledging Affiliate that has granted a security interest in Mortgage
Collateral may Transfer Mortgage Collateral to an Affiliate of Borrower that is a Pledging
Affiliate provided that Borrower or such Pledging Affiliate first notifies FHLBank in writing of
such Transfer.

          (j) Borrower and any Pledging Affiliate that has granted a security interest in Mortgage
Collateral may Transfer Mortgage Collateral to any person or entity that is not a Pledging
Affiliate provided that FHLBank (i) first approves such Transfer in writing, (ii) is otherwise
reasonably deemed to have approved such Transfer, or (iii) as further specified below:

          If FHLBank has not directed delivery of the physical possession of Mortgage Collateral to FHLBank
or its designee or notified Borrower in writing that Borrower or any Pledging Affiliate must obtain
FHLBank’s written consent prior to effecting a Transfer of any loans included in Mortgage
Collateral, Borrower or a Pledging Affiliate may Transfer Mortgage Collateral, as long as following
such Transfer, the Qualifying Collateral has a Lendable Collateral Value equal to or greater than
the Collateral Maintenance Requirement. In such event, (A) FHLBank shall be deemed to have
approved such Transfer, and (B) Borrower or a Pledging Affiliate, as the case may be, need not
notify FHLBank prior to effecting such Transfer.

          (k) Borrower shall, and shall cause each Pledging Affiliate to, insure that (i) “all risk”
property insurance covers any building or other property securing any obligation included in
Mortgage Collateral in an amount equal to the replacement cost of such building, (ii) such other
insurance as lenders in the vicinity of such building customarily require covers such building,
(iii) all such insurance includes Borrower or the Pledging Affiliate, as the case may be, its
successors and assigns, as loss payee under a standard mortgagee endorsement, and (iv) if FHLBank
so directs, such insurance shall provide that the insurer may not cancel it without at least ten
(10) days’ prior written notice to FHLBank. Borrower or any Pledging Affiliate may satisfy the
foregoing insurance requirement with a blanket insurance policy containing such deductibles, limits
of liability as FHLBank may approve in writing in advance and issued by an insurer as FHLBank may
approve in writing in advance. Any insurer issuing such insurance must satisfy the standards that
FHLBank may establish from time to time for such insurers.

13

 

FHLBank may direct from time to time Borrower and any Pledging Affiliate to physically deliver
the originals of such insurance to FHLBank or a collateral agent designated by FHLBank. If any
such insurance required by this subsection lapses, FHLBank may obtain such insurance in its favor
at Borrower’s expense and as an additional Obligation hereunder.

          (l) Borrower shall, and shall cause each Pledging Affiliate to, pay any fees or expenses that
FHLBank incurs in connection with reviewing, acquiring, evidencing, protecting, perfecting,
evaluating or realizing on its security interest in Mortgage Collateral, including (without
limitation) insurance premiums and the fees of attorneys, accountants, evaluation consultants,
recording offices and collateral agents.

          (m) Borrower shall, and shall cause each Pledging Affiliate to originate and service all loans
included in Mortgage Collateral in accordance with all Applicable Laws, including without
limitation those relating to predatory or high cost lending or abusive loan practices.

          (n) Borrower shall, and shall cause each Pledging Affiliate to, enforce the payment provisions
of all mortgage loans included in Mortgage Collateral, including collecting all amounts specified
thereunder when due.

     8. PAYMENT. Borrower shall, and shall cause each Pledging Affiliate to, pay FHLBank
any and all costs that FHLBank may incur in exercising its rights under this Agreement or entering
this Agreement, including reasonable attorney fees. Such costs may include those related to the
receipt, holding, redelivery, and reassignment of Collateral, recording fees, and the expenses and
disbursements of any custodian, consultant, or appraiser or otherwise as noted in Section 7 above.
If any payment is due to FHLBank pursuant to this Agreement, (i) FHLBank may debit Borrower’s DDA
to satisfy such payments and (ii) Borrower may set off such amount that is due to FHLBank against
any amount whatsoever that FHLBank may owe Borrower or any Pledging Affiliate (including, without
limitation, proceeds of the repurchase of FHLBank stock owned by such Borrower or Pledging
Affiliate).

     9. DESTRUCTION OF NOTES; LOST NOTES. (a) If Borrower, any Pledging Affiliate,
or any holder has destroyed any promissory note or other document that constitutes a part of
Mortgage Collateral or does so in the future, Borrower shall, and shall cause each Pledging
Affiliate to, notify FHLBank of such destruction. No Mortgage Collateral with respect to which any
holder of the note or any other document that comprises or represents such Collateral, including
Borrower or any Pledging Affiliate, may constitute Qualifying Collateral unless FHLBank approves
such Mortgage Collateral as Qualifying Collateral. Borrower shall not and shall not permit its
Pledging Affiliates to destroy any notes or other documents included in Mortgage Collateral with a
view to substituting electronic images for such documents unless FHLBank shall have approved the
same in writing in advance. FHLBank may elect to treat any such Mortgage Collateral as Collateral
that is not Qualifying Collateral or impose on such Collateral a higher Collateral Maintenance
Requirement than similar Mortgage Collateral with respect to which such notes or other documents
comprising or representing it have not been destroyed.

14

 

     (b) If Borrower or any Pledging Affiliate has lost any note or other document that constitutes
a part of Mortgage Collateral, Borrower or such Pledging Affiliate shall provide FHLBank an
affidavit satisfactory to FHLBank concerning the circumstances of such loss.

     10. INDEMNITY. Borrower shall, and shall cause each Pledging Affiliate, to indemnify
FHLBank, defend with counsel acceptable to FHLBank, and hold FHLBank harmless from and against all
losses, damages, claims, causes of action, liabilities, penalties, fines, costs, and expenses,
including reasonable attorney fees and litigation expenses, that FHLBank suffers, pays, or incurs
as a result of any of the following:

               (i) the origination of any mortgage loan included in Mortgage Collateral that has resulted in
whole or in part from violations of Applicable Laws, including (without limitation) those
governing such origination, any “predatory lending” laws, or any such mortgage loan otherwise does
not comply in any other respect with Applicable Laws;

               (ii) Applicable Laws impose liability on FHLBank as a result of its holding a security
interest on or becoming the owner of any item of Mortgage Collateral, including (without
limitation) any liability related to a release of a Hazardous Material at property that is
security for any part of the Mortgage Collateral;

               (iii) FHLBank’s exercise and/or enforcement of its rights under this Agreement;

               (iv) Borrower’s or any Pledging Affiliate’s failure to perform any of its obligations
hereunder when due;

               (v) Any of Borrower’s or Pledging Affiliate’s representations or warranties are untrue as of
the time made or deemed made; or

               (vi) Borrower’s or any Pledging Affiliate’s loss or destruction of any document that is a
part of Mortgage Collateral, including without limitation, any promissory note.

     11. DEFAULT. Any one or more of the following shall be an Event of Default under this
Agreement:

               (i) failure of Borrower or any Pledging Affiliate to pay or perform any Obligation when due;

               (ii) Any representation or warranty of Borrower or any Pledging Affiliate to FHLBank is
untrue at the time made or deemed made and FHLBank deems such representation or warranty material;

               (iii) Borrower or any Pledging Affiliate fail to furnish promptly after FHLBank’s request
financial information or information related to the Collateral, to inspect any financial records
or documents pertaining to the Collateral, or to comply promptly with any direction that FHLBank
gives pursuant to this Blanket Agreement,

15

 

               (iv) failure of Qualifying Collateral to have a Lendable Collateral Value equal to or more
than the current Collateral Maintenance Requirement that the Credit Policy requires;

               (v) failure of Borrower or any Pledging Affiliate to perform any other obligation under this
Blanket Agreement within ten (10) days after FHLBank gives notice of the need to perform the same;

               (vi) an injunction or attachment issues against any part of the property owned by Borrower or
any Pledging Affiliate which FHLBank considers materially adverse to Borrower or such Pledging
Affiliate’s property;

               (vii) a receiver, conservator, or liquidator is appointed for any part of the property of
Borrower or any Pledging Affiliate, or a supervisory authority, receiver, or conservator assumes
management of any part of the business of Borrower or any Pledging Affiliate;

               (viii) Borrower or any Pledging Affiliate commences any of the following or any of the
following is commenced against Borrower or any Pledging Affiliate: proceedings in bankruptcy,
arrangement, reorganization, receivership, conservatorship, assignment for the benefit of
creditors, composition, or other similar laws or procedures for the relief of debtors;

               (ix) Borrower’s membership in FHLBank or its eligibility to borrow Advances as a nonmember
state housing finance agency ceases for any reason;

               (x) FHLBank notifies Borrower that a change in the condition or business or other affairs of
Borrower or any Pledging Affiliate, financial or otherwise, has occurred that FHLBank considers to
materially impair Borrower’s financial or business status or FHLBank’s security or increases its
risk; or

               (xi) FHLBank notifies Borrower that FHLBank deems itself insecure.

     12. REMEDIES.

          (a) Upon the occurrence of an Event of Default, FHLBank may exercise all or one or more of the
following remedies:

               (i) without notice to or demand of Borrower or any Pledging Affiliate, declare all
Obligations immediately due and payable, regardless of the other payment provisions applying to
such Obligations;

               (ii) exercise any remedy available to FHLBank provided in this Blanket Agreement, the Credit
Policy, the UCC, at law, or in equity, including those rights described in Sections 6 and 7
hereof;

16

 

               (iii) direct Borrower to, and Borrower shall dissolve or cause the dissolution of any
Pledging Affiliate and the distribution of the assets of such Pledging Affiliate to Borrower;

               (iv) sell the Collateral at public or private sale and distribute the proceeds of sale to pay
the Obligations in whatever manner and order of priority FHLBank in its sole discretion may elect;
in connection with any private sale, FHLBank may do those things necessary or appropriate to
comply with applicable securities laws, including (without limitation) a sale or private sale to
the highest of two or more bidders who can qualify as buyers in private placements;

               (v) purchase the Collateral at any such public or private sale and pay such purchase price by
declaring Obligations equal to such purchase price discharged;

               (vi) pending the exercise of any other remedy, FHLBank may liquidate the Collateral or
continue to exercise control over the Collateral as if FHLBank owned it; or

               (vii) as Borrower’s or Pledging Affiliate’s attorney in fact, in Borrower’s name, and on
Borrower’s behalf, sell, assign, collect, compromise, and release all or any part of the
Collateral as fully as Borrower or any Pledging Affiliate could acting on its own behalf; or

               (viii) at FHLBank’s option, advance funds or do any other thing necessary or appropriate to
cure such Event of Default.

          (b) If following the exercise of such remedies, any Obligations remain unsatisfied, Borrower
and Pledging Affiliate shall be liable for any such deficiency. Borrower shall, and shall cause
each Pledging Affiliate to, waive any claims for damages resulting from FHLBank’s exercise of any
such remedy and not to assert any such claims.

          (c) FHLBank may satisfy any reasonable notice requirement that Applicable Law may impose on
sale of the Collateral by mailing such notice at least ten (10) days prior to such sale.

          (d) FHLBank shall not be liable to Borrower, any Pledging Affiliate, or any third party for
any damages resulting from FHLBank’s exercise or failure to exercise any of its remedies hereunder
or for any liabilities or obligations of Borrower or any Pledging Affiliate in connection
therewith, including any of the same under Borrower’s or any Pledging Affiliate’s contracts.
FHLBank need not do anything to preserve rights under Mortgage Collateral, send notices, perform
services, or take any action to manage any Collateral.

          (e) Each right, power and remedy of FHLBank hereunder shall be cumulative, concurrent, and in
addition to each and every other right, power, and remedy hereunder, at law, or in equity, and
shall be deemed exercised by an irrevocable power of attorney as further specified in Section 15
below. FHLBank’s exercise of any one of such rights, powers, or remedies shall not preclude the
simultaneous or later exercise of any other such right, power, or remedy.

17

 

     13. WAIVERS; CONTINUED LIABILITY. FHLBank shall not be deemed to have waived any of
its rights in this Blanket Agreement or to the Collateral unless FHLBank shall have made such
waiver in a writing that FHLBank has signed. No such waiver shall operate as a waiver of any other
default or of the same default on a subsequent occasion. No (i) renewal or extension of time of
payment of the Obligations at any rate of interest, (ii) release, surrender, exchange or
modification of the Collateral, (iii) release of any person primarily or secondarily liable on the
Obligations (including any maker, endorser, guarantor or surety), (iv) delay in enforcement of
payment of the Obligations, (v) delay, omission or forbearance in exercising any right or power
with respect to the Obligations, the Collateral, or this Blanket Agreement shall affect the
liability of the Borrower or any Pledging Affiliate to the FHLBank.

     14. DURATION. The term of this Blanket Agreement shall commence on the date hereof
and end on the date when the Borrower has paid in full all of the Obligations secured hereby, and
either: (i) FHLBank gives written notice to Borrower that FHLBank will make no further Advances to
Borrower, Borrower has no further servicing obligations under the MPP to FHLBank and FHLBank has
redeemed Borrower’s stock in FHLBank, or (ii) the Borrower gives written notice to the FHLBank that
Borrower does not intend to apply for further Advances, Borrower has no further servicing
obligations under the MPP to FHLBank and FHLBank has redeemed Borrower’s stock in FHLBank. Until
such termination, this Agreement shall be a continuing one. After such termination any liabilities
hereunder of the Borrower to FHLBank not satisfied prior to such termination shall survive and
remain in full force and effect until satisfied.

     15. ATTORNEY-IN-FACT. Borrower hereby appoints FHLBank its irrevocable
attorney-in-fact, coupled with an interest, with full power of substitution, in its name or
otherwise, but at the Borrower’s sole cost and expense to (i) transfer any shares of stock or
Securities Collateral in which FHLBank has a security interest into the name of FHLBank or its
designee or assignee, (ii) endorse on behalf of Borrower or any Pledging Affiliate any promissory
notes or other instruments in which Borrower or any Pledging Affiliate granted a security interest
to FHLBank, (iii) execute and/or record such documents and instruments as FHLBank, in its sole
judgment, deems necessary or appropriate to further evidence, perfect, or effect a transfer of the
security interest granted to the FHLBank herein or otherwise, (iv) notify obligors on any item of
Collateral to make payment directly to FHLBank or its designee, (v) enter into any extension,
compromise, settlement, release, renewal, or other agreement, (vi) take control of proceeds of
Collateral and apply them to the principal or interest of Obligations in such manner or order as
FHLBank in its sole discretion may elect, and (vii) record this Blanket Agreement as a power of
attorney where the FHLBank deems appropriate.

     16. NOTICE. (a) FHLBank shall give any written notice, approval, or direction that
this Blanket Agreement provides that FHLBank shall give to Borrower or any Pledging Affiliate by:
(i) hand delivery, regular first class mail, or any other form of physical delivery, or (ii)
facsimile or e-mail, whether or not receipt of such facsimile or e-mail is confirmed with the
Borrower or a follow-up hard copy is mailed or otherwise physically delivered to the Borrower.

          (b) Borrower and any Pledging Affiliate shall give any written notice that this Blanket
Agreement provides for Borrower or Pledging Affiliate by: (i) registered or certified mail
(postage prepaid, return receipt requested) or some other form of delivery whereby receipt

18

 

is confirmed, or (ii) facsimile or e-mail, but only if Borrower or Pledging Affiliate confirms
the delivery of a follow-up hard copy to the FHLBank by the means specified in subsection (b)(i) of
this Section 16.

     17. GENERAL. The Act and the Laws of the State of Ohio shall govern all rights and
liabilities hereunder, except that only the Act shall govern eligibility for Advances and the rate
of interest that FHLBank assesses on Advances or other Obligations. This Agreement shall inure to
the benefit and bind the FHLBank, Borrower, each Pledging Affiliate and their respective successors
and assigns. Neither Borrower nor Pledging Affiliate may assign any of its rights hereunder or
delegate the performance of its duties without FHLBank’s prior written approval. Any provision
that any law or judicial ruling may limit or render unenforceable in whole or in part shall not
affect the validity or enforcement of any other part of such provision or any of the other
provisions of this Blanket Agreement.

     18. FORUM. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR FHLBANK TO ENTER INTO THIS
BLANKET AGREEMENT AND EXTEND CREDIT TO BORROWER, ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR
ARISING OUT OF THIS BLANKET AGREEMENT, ITS VALIDITY OR PERFORMANCE, AT THE SOLE OPTION OF FHLBANK,
ITS SUCCESSORS AND ASSIGNS, AND WITHOUT LIMITATION ON THE ABILITY OF FHLBANK, ITS SUCCESSORS AND
ASSIGNS, TO EXERCISE ALL RIGHTS AS TO THE COLLATERAL AND OTHER SECURITY FOR THE OBLIGATIONS OR
INITIATE AND PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO REPAYMENT OF THE
OBLIGATIONS, SHALL BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR SUCCESSORS AND ASSIGNS
AT CINCINNATI, OHIO. BORROWER, FHLBANK AND EACH PLEDGING AFFILIATE CONSENTS TO AND SUBMITS TO THE
EXERCISE OF JURISDICTION OVER ITS PERSON BY ANY COURT SITUATED AT CINCINNATI, OHIO HAVING
JURISDICTION OVER THE SUBJECT MATTER, WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY CERTIFIED MAIL DIRECTED TO THE PARTIES AT
THEIR RESPECTIVE ADDRESSES SET FORTH HEREIN OR AS OTHERWISE PROVIDED UNDER THE LAWS OF THE STATE OF
OHIO. BORROWER AND EACH OBLIGOR WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY
OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL
OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

     19. JURY TRIAL WAIVER. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR FHLBANK TO ENTER
INTO THIS AGREEMENT AND EXTEND CREDIT TO BORROWER, BORROWER, EACH PLEDGING AFFILIATE, AND FHLBANK
WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THIS BLANKET AGREEMENT AND/OR THE CONDUCT OF THE RELATIONSHIP BETWEEN FHLBANK AND BORROWER
AND ANY PLEDGING AFFILIATE.

     IN WITNESS WHEREOF, Borrower and FHLBank each has caused the duly authorized representative of
each to execute this Blanket Agreement.

19

 

	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	And:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 		 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	FEDERAL HOME LOAN BANK OF CINCINNATI	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	And:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

20

 

	 	 
	[STATE/COMMONWEALTH] OF                           

	)
	 

	) SS:
	COUNTY OF                     

	 )

     The foregoing instrument was acknowledged before me this ___day of                     , 20___, by
                                         and                                         , as                                          and
                                        , respectively, of [Borrower Name], a
                                         organized under the laws of                                         , on behalf of the
                                        .

	 	 	 	 	 	 	 
	 
	 	 	 	 	 
	 

	 	Notary Public	 	 	 	 

	 	 	 	 	 	 	 
	 	 	My Commission
expires:                	 	 
	 

	 	 	 	 

	 	 

	 	 	 

21

 

EXHIBIT A

COLLATERAL SCHEDULE

The Collateral that Borrower is pledging and in which it is granting a security interest pursuant
to the foregoing Blanket Agreement is identified below opposite the blank or blanks that Borrower
has checked and initialed:

	 	1.	 	(___) All of Borrower’s One to Four Family Mortgage Collateral
	 
	 	2.	 	(___) All of Borrower’s Multi-family Mortgage Collateral
	 
	 	3.	 	(___) Securities Collateral identified in
separate Assignment of Security documents
	 
	 	4.	 	(___) All of Borrower’s Agricultural Mortgage Collateral
	 
	 	5.	 	(___) All of Borrower’s Commercial Real Estate Mortgage Collateral
	 
	 	6.	 	(___) All of Borrower’s Home Equity Line of Credit Collateral
	 
	 	7.	 	(___) All of Borrower’s Junior Mortgage Collateral
	 
	 	8.	 	(___) All of Borrower’ Collateral Identified
in separate Assignment of Mortgage documents

22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]