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Can collateral pledged for other purposes be used to collateralize daylight overdrafts for pricing purposes?

April 26, 2017collateral collateralize daylight overdrafts pledged pricing purposes Used

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Can collateral pledged for other purposes be used to collateralize daylight overdrafts for pricing purposes?

1 Answer

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Yes, if unencumbered. Unencumbered collateral pledged to the discount window, as well as PSR collateral held for problem institutions or for max cap purposes, can be used to offset daylight overdraft fees.