What are the collateral requirements for a credit transaction with an affiliate?
(a) Collateral required for extensions of credit and certain other covered transactions. A member bank must ensure that each of its credit transactions with an affiliate is secured by the amount of collateral required by paragraph (b) of this section at the time of the transaction. (b) Amount of collateral required. (1) The rule. A credit transaction described in paragraph (a) of this section must be secured by collateral having a market value equal to at least: (i) 100 percent of the amount of the transaction, if the collateral is: (A) Obligations of the United States or its agencies; (B) Obligations fully guaranteed by the United States or its agencies as to principal and interest; (C) Notes, drafts, bills of exchange, or bankers acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or (D) A segregated, earmarked deposit account with the member bank that is for the sole purpose of securing credit transactions between the member bank and its affiliates an
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