Collateral Requirement - (Rev. 5, 08-30-02)

30.2 - Collateral Requirement - (Rev. 5, 08-30-02) A1-1403.2, B1-4403.2 Posted collateral is based on the balance to be maintained in the time account less FDIC coverage, if applicable. The RO advises the contractor, upon notification by the Federal Reserve Bank, when collateral is posted. (Collateral must be acceptable under the guidelines provided to the Federal Reserve by the Department of the Treasury). The contractor shall place the collateral with the Federal Reserve Bank or Branch of the district where its servicing financial institution is located or with a custodian designated by the Federal Reserve Bank or Branch. It shall include a letter with the collateral that states that the collateral is pledged as security for public money by CMS, agency account number 5555-4454-5 under the terms of 31 CFR, Part 202 (Treasury Circular 176).