Institutions are permitted to utilise specific forms of funded credit protection as eligible collateral. These include cash deposits or cash assimilated instruments held by a third-party institution in a non-custodial arrangement, which must be pledged to the lending institution.

Additionally, life insurance policies can be pledged as collateral, along with instruments issued by either a third-party institution or an investment firm. These instruments must be subject to a repurchase agreement, allowing for their return upon request by the issuer.