What is a Repurchase Agreement Sweep?
Repurchase Agreement Sweeps are sales of securities with the agreement that the securities will be repurchased at a specified rate of interest at a stated time. U.S. Government or Agency Securities collateralizes Repurchase Agreements, with a market value at least equal to the amount invested. Interest rates are indexed to the targeted Fed Funds rate. 1 How it works: North Shore Bank’s Repurchase Agreement Sweep operates by establishing a target balance for your checking account. On a daily basis, balances above that target are automatically swept into your repurchase agreement investment. If daily disbursements exceed the target balance in your checking account, funds are automatically moved to your checking account. Earnings are credited to your business checking account each month. How your Company benefits. • Fully automated sweep eliminates missed investment opportunities. • Eliminates the time-consuming responsibilities of managing and timing transfers of idle cash between your c
