158 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS OF AEGON N.V.  NOTE 7.2 As part of the AEGON Levensverzekering N.V. funding program  the Company regularly enters into securitization contracts  for its mortgage loans. At December 31, 2010 securitization  contracts named SAECURE 3, SAECURE 4, SAECURE 5 and  SAECURE 6 NHG have been derecognized with a total value  of EUR 3.1 billion (2009: EUR 3.9 billion).  In the third quarter of 2010, in relation to the publicly placed  securitization SAECURE 2, the special purpose entity decided  to use its right to redeem all notes to the note holders and sold  the mortgage loans back to AEGON Levensverzekering N.V., a  wholly owned subsidiary of AEGON N.V. via AEGON Nederland  N.V., at market value. This transaction did not generate a  profit or loss for AEGON.  With respect to the transactions SAECURE 3, 4, 5 and 6 NHG,  the related mortgage loans have been sold and derecognized  and the special purpose entities are not consolidated in the  financial statements of AEGON. The structure of these  transactions is as follows: the economic ownership of a certain  amount of aggregate mortgage receivables was conveyed to a  special purpose entity. This special purpose entity funded the  purchase of mortgages from AEGON Levensverzekering N.V.  with the issuance of mortgage-backed securities. The transfer  of ownership title will take place only if the borrowers are duly  notified by the special purpose entity upon the occurrence of  certain pre-defined ‘notification events’. At the same time  AEGON Levensverzekering N.V. entered into a fixed-to-floating  swap agreement with the contract parties agreed to pay the  floating rate (EURIBOR based) and receive the fixed rate (yield  from the mortgage receivables). After a period of seven years,  Movement on the loan allowance account during the year were  as follows: Refer to note 3 for information on the fair value measurement. Only other insignificant amounts of unquoted equity  instruments are measured at cost. AEGON owns EUR 178 million (2009: EUR 194 million) of shares  in the Federal Home Loan Bank that are measured at par, which  equals the amortized cost value. The bank has implicit financial  support from the United States government. The redemption  value of the shares is fixed at par and can only be redeemed by  the bank.  the interest of the notes issued by the special purpose entity in  respect of this transaction will step-up, together with a similar  step-up in the fixed-to-floating swap agreement. At that same  time, the special purpose entity has the right to call the notes.  A deferred purchase arrangement forming part of the contract  to sell the mortgage loans to the special purpose entity entitles  AEGON Levensverzekering N.V. to any specified residual positive  value of the special purpose entity at maturity. A 3.3% portion  of securitized mortgage loans forming part of SAECURE 4 and  amounting to EUR 12 million (2009: EUR 13 million) continues  to be recognized as a financial asset on balance, representing  the interest rate risk retained by AEGON Levensverzekering N.V.  in respect of the fourth publicly placed securitization contract.  At December 31, 2010 the market value of these securitized  mortgage loans (off balance) is EUR 3.1 billion (2009: 3.9 billion).  DERECOGNITION MEASUREMENT OTHER Refer to note 49 for a discussion of collateral received and paid. 2010 2009 At January 1  (150) (90) Addition charged to income statement  (114) (132) Reversal to income statement 17 20 Amounts written off 66 50 Net exchange differences  (6) 2 AT DECEMBER 31  (187) (150)