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Can a Reserve Bank refuse to credit a Participant its award?

April 26, 2017award Bank credit participant refuse Reserve

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Can a Reserve Bank refuse to credit a Participant its award?

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As with other extensions of credit by Reserve Banks, TAF funds must be collateralized to the satisfaction of the Reserve Bank, and a Reserve Bank will not post the award to a Participant’s account if the amount of collateral pledged by the Participant is insufficient to cover its outstanding Indebtedness to the Reserve Bank under OC-10. In addition, loans with remaining maturity of over 28 days are subject to an additional collateral requirement. See Section VII (Collateral and Collateralization) below.