Commercial Sweep/Repurchase Agreement
Isn't it time to make managing your business's cash position easier?
The Commercial Sweep/Repurchasing Agreement is a simple, automatic way for you to save valuable time in managing your company's cash position while earning higher returns on your daily operating cash.
- A sweep arrangement is designed to give you the opportunity to automatically invest excess funds from your commercial checking account
- Excess funds are invested in a Sweep/Repurchase Agreement which offers a higher return on your daily operating cash.
- The funds invested in a Sweep/Repurchase Agreement are fully collateralized by government securities.
- An earnings credit, at a rate determined by the Bank, will continue to apply to your commercial checking account.
- A combined monthly statement will be provided detailing all transactions for your commercial checking account and Sweep/Repurchase Agreement.
- In addition, the bank will provide you each day with a written confirmation via fax, email, or U.S. Post Office describing the specific government security that was selected as collateral for your Sweep/Repurchase Agreement, as well as your Sweep/Repurchase Agreement balance.
Here's How it Works
- With a Sweep/Repurchase Agreement, you continue to write checks against and make deposits to your commercial checking account just like you always have. The difference is that excess funds are automatically transferred, or swept, on a daily basis, into your Sweep/Repurchase Agreement.
- Funds remaining in you commercial checking account consist of a pre-determined "target" balance, which is a compensating balance used to partially or fully offset account maintenance and activity fees.
- Each day, if the total amount of checks presented for payment exceeds the amount of any deposits, funds are automatically swept from the Sweep/Repurchase Agreement back to the commercial checking account to cover the checks presented and to return the commercial checking account to the target balance.
- In addition to the regular commercial checking account fees, a monthly Sweep/Repurchase Agreement fee will also apply.
- The Sweep/Repurchase Agreement can only be accessed through automatic transfers.
Higher Rates on Larger Balances
The Commercial Sweep/Repurchase Agreement is based on a tiered-balance structure, which means the larger the balance you maintain, the higher the rate of interest.
Interest rates are currently determined based upon the following tiers:
Less than $100,000.00
$100,000.00 - $249,999.99
$250,000.00 - $499,999.99
$500,000.00 - $999,999.99
$1,000,000.00 and above
Note: Interest rates on Sweep/Repurchase Agreements are determined by the bank and are subject to change on a daily basis.
For more information about our Sweep/Repurchase Agreement, please call (785) 336-6143
Sweep/Repurchase Agreements are secured obligations of the bank. Any amounts placed on Sweep/Repurchase Agreements are not deposits of the bank, are not insured by the FDIC, and are not guaranteed in any way by the United States or any of its agencies.