Collateral Guide
Identifying Eligible Collateral Submitting Collateral     Securities     Mortgage Loans Borrowing Capacity

 

 

Safekeeping Department:
(201) 356-1033

 

Calling Officers:
(212) 441-6700

 

How to Submit Securities Collateral

Step 1:  Set up a Safekeeping Account
Members who currently do not have a 1LinkSK safekeeping (SK) custody account at the FHLBNY will need to request one in order to deliver securities collateral. To open a SK custody account each member is required to fill out and mail the "hard copies" with original signatures on the following forms – emailing signed documents will not be sufficient.

  1. A new or updated Global Authorization Form (HLB-106) indicating staff SK permissions
  2. Two* Amendment to Correspondent Services Agreements (HLB-110)
  3. Three* Securities Account Control Agreements (SFK-007)

*Members will receive back an executed original for their records.

Please note that FHLBNY will open three custody accounts on your behalf; a “Free”1 custody account where your unencumbered holdings will remain, a “Pledge to Third Party” custody account to hold assets that are pledged to third parties (service offering), and “Pledge to the FHLBNY” custody account which houses assets pledged for Regular or Repo Advances. All street side settlements will occur in your “Free” custody account with a subsequent movement into a pledged account in the event you require an asset to be pledged.

For a list of safekeeping fees, log on to 1Linksm to view the Correspondent Service Fees Schedule.

 

Step 2:  Receive/Deliver Securities

Instead of submitting forms, you can also use 1LinkSK to transact securities.

 

Step 3:  Move Securities to Collateral Custody Accounts
After you have been notified that your securities have settled into your “Free” custody account, you will need to enter a transaction on 1LinkSK or send an email to CustodyandPledgingServices@fhlbny.com and instruct to move the securities from your "Free" SK custody account into the “Pledge to FHLBNY” custody account. Be sure to designate which indebtedness program you require the securities to be pledged under:

  • Repo Advance Program
    This category is for when you would like to execute a Repo Advance transaction - which can only be collateralized by using securities or cash as collateral. You will receive a 2 basis point benefit on your advance rate by engaging in a Repo Advance with terms of two days or greater. You cannot execute an overnight Repo Advance under this category; overnight advances are available under the Regular Advance Program.
  • Regular Advance Program
    This category is used when you would like to execute a Regular Advance transaction which can be collateralized with cash, loan and/or securities collateral. You can execute overnight advances in addition to term advances.

If you are currently relying on the FHLBNY strictly as a contingent funding source you may want to pledge securities under the Regular Advance Program. This will enable you to execute overnight advances. If you wanted to engage in a funding strategy and execute a term advance under the Repo Advance Program, then simply enter transactions on 1LinkSK or send another email to switch the collateral designation.

1 A general account of securities which are free from encumbrances.

 

 

Safekeeping Department:
(201) 356-1033

 

Calling Officers:
(212) 441-6700

 

 
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