Special Custody Account Agreement
Mortgage securities are marketed on a daily basis and are valued in accordance with the Special Custody and Collateral Agreement and this Agreement (collectively, the “Account Documents”). Transactions in special deposit account(s) relating to the Client`s securities are reflected in the relevant records in the Client`s account with the Company, with the exception of transactions which do not change the Client`s account balance (e.B transfer of securities from a special deposit account to another special deposit account). Unless otherwise agreed between the parties, the Client shall provide in advance the funds and/or securities available in the Client`s account (accordingly in the Special Bank Account and/or the Special Deposit Account) which are appropriate and sufficient for the settlement of any transaction concluded by the Company on the Client`s instructions. Return of the Customer`s assets from the special bank account or special deposit account concerned in accordance with the clause relating to the termination of the CONTRACT. The storage of the client`s securities in the special deposit account can be carried out on a fungible basis and thus the client`s securities can be mixed with securities of other clients of the company. In the event of any conflict between any provision of this Agreement and the Special Custody and Employment Agreement between the parties, this Agreement shall prevail. Except as limited herein, Customer has the right to recall mortgage securities upon request and without conditions, and BNPP NY will provide such security or equivalent security within a commercially reasonable period of time (in any event, no later than the standard settlement cycle of such securities). Any provision of this Agreement or the Special Custody and Pledge Agreement may be modified or revoked if, but only if, such modification or waiver is made in writing and signed by Customer and Pershing. For the purposes of this Agreement, “material adverse event” means a material adverse effect on (x) the Borrower`s business, financial condition, operation, assets or property, or (y) the validity or enforceability of this Agreement or the Special Custody and Pledge Agreement or Pershing`s rights and remedies hereunder or below. . . .