Haircut on securities

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