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4. The Depository shall issue to the Treasurer at the time of each inactive deposit a receipt on a form agreed to by the Depository and the Treasurer, stating the interest to be paid, if any, the duration of the deposit, the frequency of interest payments, and the terms of the withdrawal. Each such deposit receipt is by reference made a part of this contract. 5. As security for said deposit,the Depository shall at all times maintain with the agent of Depository named herein, commencing forthwith, eligible securities having a market value of at least 10% in excess of the actual total amount of local agency moneys on deposit with the Depository. If any eligible security is determined by the administrator of local agency security of the State of California in accordance with Government Code Section 53661 to be not qualified to secure public deposits, additional security shall be substituted immediately by the depository as necessary to comply with the requirements of this paragraph. 6. Eligible securities are those listed in Government Code Section 53651. 7. The Agent of Depository, authorized by the Treasurer and the Depository to hold the eligible securities posted as collateral under this contract, is the Federal Home Loan Bank. Said Agent of Depository has filed with the administrator of local agency of the State of California an agreement to comply in all respects with the provisions of Title 5, Division 2, Part 1, Chapter 4, Article 2 (commencing with Section 53630) of the Government Code. 8. Authority for placement of securities for safekeeping in accordance with Government Code Section 53659 is hereby granted to the Agent of Depository, including placement with any Federal Reserve Banks or branches thereof,and the following banks, other than depository, located in cities designated as reserve cities by the Board of Governors of the Federal Reserve System:NOT APPLICABLE. 9. If the Depository fails to pay all or part of any deposits of the Treasurer which are subject to this contract when ordered to do so in accordance with the terms of withdrawal set forth on the deposit receipt (which is by reference made a part hereof). The Treasurer will immediately notify, in writing, the Administrator of Local Agency Security. Action of the Administrator in converting the collateral required by Paragraph 5 above for the benefit of the Treasurer is governed by Government Code Section 53665. 10. The Depository may add, substitute or withdraw eligible securities being used as security for deposits made hereunder in accordance with Government Code Section 53654, provided the requirements of paragraph 5 are met. 11. The depository shall have and hereby reserves the right to collect the interest on the securities, except in cases where the securities are liable for sale or are sold or converted in accordance with the provisions of Government Code Section 53665. Page 2