---
kind: "section"
citation: "12 C.F.R. § 703.104"
title: "12"
number: "703.104"
heading: "Requirements for Counterparty agreements, collateral and Margining."
url: "https://uscodex.org/cfr/12/703.104"
---

# §703.104. Requirements for Counterparty agreements, collateral and Margining.


To enter into Derivative transactions under this subpart, a Federal credit union must:

- (a) **Have an executed Master Services Agreement with a Counterparty.** Such agreement must be reviewed by counsel with expertise in similar types of transactions to ensure the agreement reasonably protects the interests of the Federal credit union;
- (b) **Use only the following Counterparties—**
  - (1) **For exchange-traded and cleared Derivatives—** Swap Dealers, Introducing Brokers, and/or FCMs that are current registrants of the CFTC; or
  - (2) **For Non-cleared Derivative transactions—** Swap Dealers that are current registrants of the CFTC.
- (c) Utilize contracted Margin requirements with a maximum Margin threshold amount of $250,000; and
- (d) For Non-cleared Derivative transactions, accept as eligible collateral, for Margin requirements, only the following: Cash (U.S. dollars), U.S. Treasuries, government-sponsored enterprise debt, U.S. government agency debt, government-sponsored enterprise residential mortgage-backed security pass-through securities, and U.S. government agency residential mortgage-backed security pass-through securities.

## Notes

### Source

Source: 86 FR 28247, May 26, 2021, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1757(7), 1757(8), 1757(14) and 1757(15).

### Source

Source: 68 FR 32960, June 3, 2003, unless otherwise noted.