Securities and funds deposited by a foreign branch or foreign agency with a depository under the deposit agreement shall be held by the depository as a special deposit free of any lien, charge, right of set-off, credit or preference in connection with any claim of the depository against the foreign branch or foreign agency. The depository shall not accept, as a deposit by the foreign branch or foreign agency pursuant to the deposit agreement, any asset that is not accompanied by documentation necessary to facilitate transfer of title.

The depository shall furnish to the foreign branch or foreign agency, upon the deposit of any securities or funds pursuant to the deposit agreement, a receipt or statement evidencing such deposit. Such receipt or statement shall identify the deposit as having been made by the foreign branch or foreign agency pursuant to section 202-b(1) of the Banking Law and under the deposit agreement, and it shall provide the amount of the deposit and, with respect to deposits of securities, a description of each security so deposited.

The depository shall release deposited securities, in connection with their substitution or otherwise, or funds to the foreign branch or foreign agency upon written request:

The right to substitute or withdraw securities or funds provided in this section may be terminated or suspended by the superintendent at any time.

The following or similar certificate shall be executed by a duly authorized officer of the foreign branch or foreign agency where withdrawals are made pursuant to paragraph (c)(1) of this section:

The depository shall furnish to the foreign branch or foreign agency, at least once in each calendar month, a statement of all transactions in the special deposit account since the closing date of the previous such statement. The statement shall include a listing of the securities on deposit and/or the amount of funds on deposit as of the closing date of the statement. A copy of such statement shall be simultaneously forwarded by the depository to the superintendent.

The depository may pay to the foreign branch or foreign agency interest earned on securities or funds deposited in accordance with such arrangements as may be made between the depository and the foreign branch or foreign agency. The superintendent is authorized to issue an order revoking this provision.

Except as provided below, a depository shall hold the securities deposited by a foreign branch or foreign agency under the deposit agreement separate and apart from all other securities and shall permit examination and comparison thereof by duly authorized representatives of the foreign branch or foreign agency or of the superintendent. A depository may utilize a central depository, clearing corporation or book entry system to hold securities deposited pursuant to a deposit agreement, provided that the records of the central depository, clearing corporation or book entry system show that the securities are held for the depository as principal or as agent or as custodian of its customers. The depository shall maintain adequate records to demonstrate the disposition of such book entry deposits.

The depository shall give to the safekeeping, handling and shipping of securities deposited with it by the foreign branch or foreign agency the same degree of care given by such depository to its own securities.

The superintendent shall not be required to pay for any of the services rendered or any expenses incurred by the depository or the foreign branch or foreign agency under or in connection with this Part or the deposit agreement.

The foreign branch or foreign agency or the depository may terminate the deposit agreement by giving the other party thereto at least 60 days written notice of such termination, or such shorter notice as the superintendent may approve, provided that no termination by the foreign branch, the foreign agency or the depository shall be effective until:

If the conditions provided in paragraphs (k)(1)-(4) of this section are not met within 60 days after notice of termination, or such shorter period as the superintendent may by order approve, the superintendent may order the depository to release the securities and/or funds on such terms as may be specified in such order, and in such case the superintendent shall furnish a copy of such order to the foreign branch or foreign agency. The depository shall in such case release the securities and funds upon the terms so specified, and the deposit agreement shall terminate upon such release.