Pennsylvania Statutes Title 72 P.S. Taxation and Fiscal Affairs § 3836-4. Amounts required to be pledged;  eligible assets and valuation

(1) the same as those applicable to United States Treasury tax and loan accounts under the provisions of United States Treasury Circular No. 92 as in effect on the effective date of this act, except that the valuation of obligations of the Commonwealth and public bodies of the Commonwealth shall be at the face value thereof;  or

(2) an irrevocable letter of credit issued by a Federal Home Loan Bank in an amount equal to or greater than the total amount of public deposits being secured provided that the Federal Home Loan Bank issuing the irrevocable letter of credit maintains a rating of at least the second highest rating level from one nationally recognized rating agency.  If the line of credit to the United States Treasury as set forth in the Federal Home Loan Bank Act (47 Stat.  733, 12 U.S.C. § 1431(i)) is revoked or reduced, then irrevocable letters of credit issued by a Federal Home Loan Bank shall continue to be eligible to secure public deposits only if the Federal Home Loan Bank issuing the irrevocable letter of credit has the highest rating level from one nationally recognized rating agency.