We have a third party custodian who has possession of our securities used in repo agreements. Further, we have an examiner telling us our contract with the third party custodian must specifically state that the repo collateral may not have liens. I recognize the collateral cannot have liens, but I do not see where it is required to be spelled out in our contract. Before I push the issue, am I overlooking this requirement?

Thanks!

It probably wouldn't be in your safekeeping agreement, it would be in your pledging agreement.