| (a) Without the need of any further agreement or pledge,
the depository has a lien on each depository account owned by a depository
account holder to secure any fees, charges, or other obligations owed
or that may become owed to the depository in connection with any of
the depository account holder's depository accounts.
(b) On default in the payment or in the satisfaction
of a depository account holder's obligation, the depository, without
notice to or consent of the depository account holder, may, to the
extent necessary to pay or satisfy the obligation, plus any applicable
fees:
(1) transfer on the depository's books all or part
of the balance of a depository account;
(2) liquidate all or part of the balance of a depository
account; or
(3) suspend withdrawal privileges for all or part of
a depository account.
(c) To be recognized by the depository, a pledge to
a third party by a depository account holder of the holder’s
rights, interest, and entitlements in and to a depository account
must be made on a form prescribed by the depository. A pledge made
to a third party in this manner is subject to any lien of the depository
on a depository account for unpaid fees, charges, or other obligations
of the depository account holder, irrespective of whether the depository's
lien was created before or after the pledge to a third party was made
or perfected.
(d) On the satisfaction of other requirements of law
with respect to the perfection and enforcement of a pledge of that
type, and subject to a lien of the depository and any applicable fees,
the depository may liquidate all or part of the balance of a depository
account to the extent necessary to pay or satisfy the pledge, plus
any applicable fees.
(e) If the depository liquidates all or part of a depository
account to pay or satisfy a lien of the depository or a pledge under
this section, the depository shall only liquidate the minimum amount
of precious metal as is available in the depository account to pay
or satisfy the lien or pledge, as determined by reference to the exchange
rates applicable at the time of the liquidation. Upon liquidation,
the depository shall apply the proceeds to satisfy the lien or pledge
and shall refund to the depository account holder any amount in excess
of the amount required to pay or satisfy the lien or pledge. The depository
shall not be obligated to a depository account holder for any difference
between the official exchange rate at the time a request for liquidation
was received and the proceeds actually received upon liquidation after
satisfaction of any unpaid fees.
(f) The depository may require that a secured party
seeking to enforce a pledge under this section provide information
as is reasonably necessary to ensure that a delivery of precious metals
under this section is made in accordance with applicable law and policies
established by the depository.
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