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Securities Safekeeping Agreement

The COB implements a written hedging contract with each bank before resorting to the custodian`s custody services. Conservation, also known as “safe keep,” is the storage of assets or other valuables in a protected area. Many people choose to put financial assets on deposit. To do this, individuals can use self-controlled conservation methods or banking or brokerage services. Financial institutions are custodians and, therefore, are legally responsible for all depository assets. Under this agreement, royalties are often nominal or the service is provided at no direct cost as part of a broader relationship. Governments need to understand what services are provided and how fixed assets are maintained. The general elements of a basic conservation regime are: it is also important to know that banks and financial institutions can use conservation and conservation conditions interchangeably. However, as discussed below and in the purchase of conservatory and deposit-making services, these agreements have different guarantees and offers and the government must determine what is the best level of service. Investors who purchase fixed-rate securities through their Wells Fargo Securities account can hold Wells Fargo Bank on deposit for a fee. The securities are held in a well-debited account of Wells Fargo Bank.

The use of a custodian or custodian may also eliminate the risk of holding securities in physical form (for example. B per theft, loss, fraud, damage or delay of deliveries). New York Mellon Bank (BNY), State Street Bank and Trust Company, JPMorgan Chase and Citigroup are among the world`s largest deposit banks. License for participants working in the securities market for the execution of custody transactions No. 077-02768-000100 of November 8, 2000 (issued for an indeterminate period). In a typical conservation agreement, the government assigns to a company other than the party that sells the investment to ensure the transfer and retention of the securities. This allows investment transactions to be carried out on a delivery versus payment (DVP) basis, with secure delivery and simultaneous payment. A deposit account does not protect the government from making a bad investment decision or acquiring an unusual or incorrect guarantee. On the other hand, if the investor wishes to keep his own securities certificates separately, he can rent a safe. In both cases, the company often gives an overview of the value of the assets over time and may present options for the purchase and sale of the assets. The security of public funds should be the priority investment objective of all governments.

One of the most important measures in terms of protection and fraud is the separation of the retention function from the investment function. The investment policy should include a section on conservation and conservation, which defines how the government should hold its securities from an independent third party in order to minimize the risk of a fraudulent transaction. An independent third party in a conservation agreement may be a financial institution totally independent of where the equity assets are held or may be a separate division of the same designated institution. Governments should ensure that when they use the same institution both for the trade of their assets and for the use of child care, there are appropriate firewalls and safeguards to protect your company`s money.