As a business or commercial customer
of First South Bank, you also have the option of investing
in Repurchase Agreements*.
Repurchase Agreements are overnight
investments with the Bank that are secured by pledged
interest in U.S. Treasury Instruments. Excess funds
are swept into an overnight investment account and swept
back, as needed, to your checking account.
Terms and Structures
From one to 90 days.
When a repurchase agreement is initiated, the bank issues
a confirmation of the sale of the securities to the
customer and a second confirmation of the bank’s obligation
to repurchase them at the maturity date.
The securities involved in a Repurchase Agreement can
be maintained as a "hold in custody" agreement
in Wachovia’s Institutional Trust Services Custody Department
or can be delivered to the customer through the Federal
Repurchase agreements are quoted on a yield basis.
Yields vary according to money market conditions.
Paid at maturity.
Normally issued with a minimum denomination of $100,000.
Securities used in repurchase agreements are typically
direct obligations of the U.S. Government or federal
Fully taxable on the federal and state level.
For more information on Business Finance
here to send us your questions, or contact us at
*Repurchase agreements are not FDIC insured or Bank
guaranteed and may lose value.