Gary,

I work in Joe Deffner's group & am looking  our ability to rehypothecate 
securities, & the associated cash benefits.

Under some of our agreements, we are at present receiving collateral in the 
form of government securities; given that market value of the securities may 
not be equivalent to the the cash value we wish to define the haircuts 
applied to them. Under previous agreements we have proposed the following 
haircuts:

 SECURITY          Percentage Haircut
1. Securities issued or directly & fully guaranteed or insured by the USA 
having   98%
 maturities of 5 years or less from the valuation date

2. Securities issued or directly & fully guaranteed or insured by the USA 
having   95%
 maturities of more than five years but less than 10 years from the valuation 
date


3. Securities issued or directly & fully guaranteed or insured by the USA 
having   95%
 maturities of 10 years  or more from the valuation date



Please confirm or suggest appropriate amendments to the haircut on the above 
securities.

Many thanks,

Soma