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Rev 6.4.04

COLLATERAL SECURITY AGREEMENT

(For Nevada Public Deposits Secured Under Pooled Collateral Method)

This

COLLATERAL SECURITY AGREEMENT

(“Agreement”)

to accept and collateralize

public funds deposits, is made and entered into on the date last herein written by and between the

state of Nevada, acting through its Office of the State Treasurer (“Treasurer”) and

_______________________________ (“Depository”) with its principal place of business in

______________.

WHEREAS

, chapter 356 of the Nevada Revised Statutes (NRS) and chapter 356 of the

Nevada Administrative Code (NAC) authorizes the Treasurer to enter into this Agreement,

subject to the approval of the Nevada Board of Finance; and

WHEREAS

, the Depository desires to act as a depository for public funds as described

in NRS 356.360; and

WHEREAS

, the Depository has certain types of bonds and/or securities ascribed to it in

subsection 1 of NRS 356.360 (collectively “Collateral”) which may be pledged for the benefit of

the Treasurer with any insured state or national bank or insured state or federal credit union or

savings and loan association other than the Depository or an affiliation thereof, as collateral to

secure deposits of public funds with the Depository; and

WHEREAS

, the Depository has or intends by agreement to transfer said Collateral to a

third party depository (hereinafter referred to as “Custodian”) pursuant to subsection 1 of NRS

356.360 which will accept and hold said Collateral in trust for the use and benefit of the

Treasurer to secure deposits of public funds so deposited at the Depository; and

WHEREAS

, the Treasurer oversees the program to monitor collateral as described in

NRS 356.350; and

WHEREAS

, this Agreement shall become effective on the date approved by the Nevada

Board of Finance;

NOW THEREFORE

, in consideration for the premises and for other good and valuable

consideration, the receipt and sufficiency of which are hereby acknowledged, it is mutually

agreed as follows:

Subject to Nevada Law

. All uninsured public funds on deposit shall be

collateralized in accordance with the provisions of NRS chapter 356 and NAC

chapter 356, and subsequent amendments thereof. To the extent any terms of this

Agreement are inconsistent with the provisions of NRS chapter 356 or NAC chapter

356, the provision of NRS chapter 356 and NAC chapter 356 shall control.

Depository Representations

. The Depository represents and warrants, as required

by NRS chapter 356 and NAC chapter 356, it is an insured state or national bank or

insured state or federal credit union or savings and loan association, with offices in

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Rev 6.4.04

the state of Nevada. The Depository agrees to hold acceptable collateral authorized

and approved in accordance with applicable Nevada law, including but not limited to

NRS chapter 356 and NAC chapter 356, as the law currently exists and as may be

amended from time to time.

Approval

. The Depository represents that it is duly authorized and has the full right,

power and authority to execute this Agreement and to pledge and grant a security

interest with respect to the Collateral, by approval and resolution of its Board of

Directors or Loan Committee, which approval and resolution is reflected in the

minutes of a meeting of that body, certification of which is attached to this

Agreement as

Exhibit A

and incorporated herein by this reference.

Pledge of Collateral

. The Depository agrees to deliver and place Collateral with the

Custodian pursuant to paragraph (1) of NAC 356.120 by agreement attached hereto

Exhibit B

and incorporated herein by this reference. The Depository hereby

further pledges and grants for the benefit of the Treasurer a continuing security

interest in said Collateral placed with the Custodian to secure uninsured deposits of

public funds held in the Depository pursuant to NRS chapter 356 and NAC chapter

356 under this Agreement, or in the case of book entry securities, instructing the

Custodian to make the necessary book entries on the Custodian’s books or causing

the appropriate federal reserve bank Custodian to make such entries on its books and

identifying the eligible Collateral as being pledged to the Treasurer. The Depository

shall be entitled to income on any and all interest, dividends, distributions and sums

distributed or payable from such Collateral, and all proceeds and profits of any of

said Collateral, unless the Depository fails to pay any part of any public deposit on

demand of the Treasurer. The Depository shall provide the Treasurer with evidence

of pledged Collateral by reporting to the Treasurer as described in subsection 1(d) of

NRS 356.360 and section 1 of NAC 356.140.

Minimum Collateral

. At all times during the term of this Agreement, the

Depository agrees:

a. To maintain on deposit with the Custodian, for the benefit of the Treasurer,

acceptable Collateral having a fair market value that is at least 102 percent of

the amount of the uninsured balances of the public money of the public

depositor held by the Depository.

b. Should the Depository not maintain the minimum level of Collateral required

to be held by the Custodian as described in paragraph (a), the Depository must

pledge additional collateral to meet the requirements described in paragraph

(a) on or before the close of market on the same business day that the

Depository fails to maintain the minimum level of Collateral required by

paragraph (a).

c. Depository agrees that at no time will the Depository hold public money in an

amount exceeding the total equity of the Depository as reflected in the

financial statements of the Depository.

Rev 6.4.04

Ownership, Additions, Release or Substitution of Collateral

. The Depository

represents and warrants that it is the owner of the Collateral and that such Collateral

is and will remain free and clear of any and all security interests, liens and claims of

any other person, except for the security interest and pledge granted in this

Agreement to the Treasurer. The Depository shall be deemed to repeat such

representation with respect to Collateral delivered in addition to or in substitution of

the existing Collateral. The Depository shall have the right at any time, with prior

written approval of the Treasurer, to substitute acceptable Collateral of equal or

greater fair market value. No Collateral may be substituted when the substitution is

less than the existing fair market value without written approval of the Treasurer. No

Collateral may be released without written approval of the Treasurer.

Maintenance of Collateral

. The Depository agrees to take all steps required by it

under applicable law to create, maintain and perfect the Treasurer’s security interest

in the Collateral granted by this Agreement. The Depository agrees to execute any

additional documents or take whatever other action is requested by the Treasurer to

perfect and continue the Treasurer’s security interest in the Collateral.

Continuously Maintain Agreement

. The Depository agrees that it will immediately

upon execution of this Agreement keep and continuously maintain an executed copy

of this Agreement, the agreement provided for in paragraph 4 above, and such other

customary writings and records sufficient to identify the Collateral which has been

pledged to the Treasurer.

Termination

. This Agreement shall continue in full force and effect for as long as

the Depository holds deposits of public funds that are required to be collateralized as

described in NRS 356.360. Notwithstanding the foregoing, either party may

terminate its participation under this Agreement for any reason by giving written

notification of termination to the other. Termination becomes effective ninety (90)

days after the date the non-terminating party receives such written notice of

termination.

10.

Successors and Assigns

. This Agreement is continuing and binding upon the

Depository, its successors and assigns, and shall inure to the benefit of the Treasurer,

and his successor and assigns.

11.

Default and Remedies

. The Depository shall be in default of this Agreement upon:

failure to place Collateral with the Custodian; failure to repay public funds deposited

with the Custodian in accordance with the terms of the deposit; failure to perform any

of the material terms of this Agreement; closure, suspension or revocation by any

federal or state authority or banking regulators; or any representation, warranty or

statement made or furnished to the Treasurer by or on behalf of the Depository

proving to have been false in any material respect when made or furnished. In the

event of default, the Treasurer shall have all the rights and remedies of a secured

party provided for at law or in equity, by NRS chapter 356, NAC chapter 356 or by

Nevada law.

Rev 6.4.04

12.

Service Fees

The Depository acknowledges and agrees that the Depository shall

compensate the Treasurer for services under this Agreement pursuant to a pro rata

assessment as provided for in NRS 356.370. Any service charge or other

compensation of any kind or nature whatsoever which is to be paid to the Custodian

for the safekeeping of the Collateral as provided for in this Agreement shall be done

exclusively by the Depository.

13.

Attorney’s Fees

. In the event either party is required to commence any suit or action

to enforce the terms of this Agreement, the prevailing party is entitled to recover its

reasonable attorney’s fees and costs.

14.

Amendments or Modifications

. No alteration, variation, amendment, modification

or waiver of any provision of this Agreement or waiver of any right hereunder shall

be valid or binding on any party hereto unless it is reduced to writing and is signed by

all of the parties.

15.

Governing Law

. This Agreement shall be governed by the laws of the state of

Nevada and, whenever possible, each provision of this Agreement shall be

interpreted in such a manner as to be effective and valid under said laws; provided,

however, if any provision of this Agreement shall be construed to be prohibited or

invalid under applicable law, such provision shall be ineffective only to the extent of

such prohibition or invalidity without invalidating the remainder of such provision or

remaining provisions in this Agreement.

IN WITNESS THEREOF

, the parties have executed this Agreement on the ________ day of

________________, ______ by the undersigned duly authorized officers of the parties hereto.

ACCEPTED:

FOR TREASURER:

_____________________________ ___________________

(Signature) (Title)

FOR DEPOSITORY:

_____________________________ ___________________

(Signature) (Title)

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COLLATERAL SECURITY AGREEMENT (For Nevada Public Deposits Secured (Nevada State Treasurer)

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