§ 703.104. Requirements for Counterparty agreements, collateral and Margining.
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/us/cfr/t12/s§ 703.104·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
To enter into Derivative transactions under this subpart, a Federal credit union must:
(a)Have an executed Master Services Agreement with a Counterparty. Such agreement must be reviewed by counsel with expertise in similar types of transactions to ensure the agreement reasonably protects the interests of the Federal credit union;
(b)Use only the following Counterparties:
(1)For exchange-traded and cleared Derivatives: Swap Dealers, Introducing Brokers, and/or FCMs that are current registrants of the CFTC; or
(2)For Non-cleared Derivative transactions: Swap Dealers that are current registrants of the CFTC.
(c)Utilize contracted Margin requirements with a maximum Margin threshold amount of $250,000; and
(d)For Non-cleared Derivative transactions, accept as eligible collateral, for Margin requirements, only the following: Cash (U.S. dollars), U.S. Treasuries, government-sponsored enterprise debt, U.S. government agency debt, government-sponsored enterprise residential mortgage-backed security pass-through securities, and U.S. government agency residential mortgage-backed security pass-through securities.
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§ 703.104
Requirements for Counterparty agreements, collateral and Margining.
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