Facts about an indemnity bond ;
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12 CFR 7.1017 - NATIONAL BANK AS GUARANTOR OR SURETY ON INDEMNITY BOND.
" (2) The transaction is for the benefit of a customer and the bank obtains from the customer a segregated deposit that is sufficient in amount to cover the bank's total potential liability. A segregated deposit under this section includes collateral: (ii) That has a market value, at the close of each business day, equal to the bank's total potential liability and is composed of:
(A) Cash;
(B) Obligations of the United States or its agencies;
(C) Obligations fully guaranteed by the United States or its agencies as to principal and interest; or
(D) Notes, drafts, or bills of exchange or bankers' acceptances that are eligible for rediscount or purchase by a Federal Reserve Bank; or
(iii) That has a market value, at the close of each business day, equal to 110 percent of the bank's total potential liability and is composed of obligations of a State or political subdivision of a State. "
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