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a. Subject to those requirements set forth above, FICAL shall maintain eligible securities as listed in subsections (a) through (1), (n) and (o) of California Government Code Section 53651 (herein called "Non REN Security") and/or promissory notes secured by first mortgages and first trust deeds upon improved residential property in California meeting the eligibility criteria established by California Government Code Section 53651.2 (herein "REN Security"). When any of CLIENT'S funds on deposit with FICAL under this Agreement are secured by Non-REN security, the market value of such security shall be at least ten percent (10%) in excess of the actual total amount of such funds of CLIENT, and when any of CLIENT'S funds on deposit with FICAL under this Agreement are secured by REN Security, the market value of such security shall be at least Fifty percent (50%) in excess of the amount of such funds of CLIENT. b. 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 FICAL as necessary, to comply with the requirements of this paragraph. c. FICAL has filed with the Administrator of Local Agency Security 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. A copy of this agreement is available on request. d. Authority for placement of securities for safekeeping in accordance with Government Code Section 53659 is hereby granted to FICAL, including placement with any Federal Reserve Banks or branches thereof, the Federal Home Loan Bank of San Francisco and any trust company located in this state. e. If FICAL fails to pay all or part of any deposits of the CLIENT which are subject to this Agreement when ordered to do so in accordance with the terms of distribution or termination clauses, the CLIENT will immediately notify, in writing, the Administrator of Local Agency Security. Action of the Administrator in converting the collateral required above for the benefit of the CLIENT is governed by Government Code Section 53665. f. FICAL 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 set forth above are met. g. FICAL shall have and hereby reserves the right to collect the interest on the securities, except in cases where the securities are liable to sale or are sold or converted in accordance with the provisions of Government Code Section 53665. 6