municipality within this Commonwealth; or
(iv) United States Treasury Bonds issued at a
discount without a regular schedule of interest payments
to maturity, otherwise known as Zero Coupon Bonds, having
a maturity date of not more than 10 years after the date
of purchase and at the maturity date having a value of
not less than the applicable amount under paragraph (1).
The cash deposit, certificate of deposit, amount of the
irrevocable letter of credit or market value of the
securities shall be equal at least to the sum of the
bond.
(4) The secretary shall, upon receipt of a deposit of
cash, letters of credit or negotiable bonds, immediately
place the same with the State Treasurer, who shall receive
and hold the same in the name of the Commonwealth, in trust,
for the purpose for which the deposit is made.
(5) The State Treasurer shall be custodian of and shall
safely keep the deposits. The operator making the deposit may
from time to time demand and receive from the State
Treasurer, on the written order of the secretary, the whole
or any portion of collateral deposited, by depositing with
the State Treasurer, in lieu of the collateral, other
collateral of classes specified in this section that have a
market value at least equal to the sum of the bond and may
also demand, receive and recover the interest and income from
the negotiable bonds as they become due and payable.
(6) If negotiable bonds on deposit under this subsection
mature or are called, the State Treasurer, at the request of
the owner of the bonds, shall convert them into other
negotiable bonds, of classes specified in this section,
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