Collateral Vault

Collateral Vault Operations

Collateral Vault Operations enables Blanket and Custody Status members to potentially increase borrowing capacity by pledging loans to FHLB Dallas. A security interest is held on the pledged collateral for the duration of the borrowing period.

Requirements for pledging collateral are outlined in the Member Products and Credit Policy.

Member borrowing capacity for pledged collateral is updated by comparing the unpaid balance of the loan collateral against the unpaid balance the member has in outstanding obligations to FHLB Dallas. To access the available credit programs, members' qualifying collateral is stored onsite, or, if applicable, is listed at FHLB Dallas.

To Pledge Collateral

Members who elect to deliver collateral undergo a two-step process in pledging a loan. Members prepare and submit the required loan documentation package to FHLB Dallas for each delivered loan, as well as an electronic file (see Delivered Loans Add Template document) that contains all of the descriptive information of the loans that are being delivered, which is then submitted.

Members who elect to list loans will submit an electronic file (see Listed Loans Add Template document). More detailed information on this process is found in the Loan Pledging Instructions. For complete instructions on adding collateral, please reference the instructions under the "Collateral Add" tab in the Collateral section of SecureConnect.

Update of Pledged Collateral

For loans pledged to the FHLB Dallas Vault to continue with receiving loan value, members are required to submit a monthly update for all loans that have been pledged as collateral.

Beginning each month, an updated list of the member's pledged collateral is available via SecureConnect in the "Collateral Monthly Update" tab. A member's update file is submitted via SecureConnect with current information on each loan prior to the 21st of each month to prevent a potential loss of value.

Once FHLB Dallas receives the uploaded monthly update file, detailed reports will be provided that identify the condition of the member's pledged notes in the "Reports" tab of SecureConnect. For complete instructions on updating collateral, please see the instructions on the "Monthly Update" tab in the Collateral section of SecureConnect.

Request for Collateral

To request the release of collateral, members must request a Release of Collateral through SecureConnect. To release the collateral for each loan, the member must have sufficient availability to offset any outstanding obligations. For complete instructions on releasing collateral, please see the instructions under the "Request for Release" tab in the Collateral section of SecureConnect.