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BANKERS' ACCEPTANCES

Bankers' Acceptances* are drafts drawn by a commercial firm upon a bank and "accepted" by the bank. The drafts instruct the bank to pay a designated party a certain sum of money at a specified time in the future. The bank's "acceptance" means that the bank is guaranteeing the availability of the funds at the maturity of the Acceptance.

Terms and Structures

Maturity
Generally 30 to 180 days
Issued
Offered on a continuing basis and readily marketable; maturities contingent on supply
Form
Securities can either be maintained in Wachovia’s Institutional Trust Services Custody Department, or with another custody agent
Quoted
On a discount yield basis
Rate Structure
Yields vary according to money market conditions, maturities, and size of Acceptance
Interest
Acceptances are discounted at purchase and the return to the investor is the difference between the purchase price and face (par) value of the Acceptance
Denominations
Typically $1,000,000
Security
Acceptances carry the irrevocable credit of the accepting bank to make payment at maturity
Tax Status
Fully taxable on the federal and state level

* Products and services are offered by Wachovia Bank, National Association.

Wachovia Securities is the trade name for the corporate and investment banking services of Wachovia Corporation and its subsidiaries, including Wachovia Capital Markets, LLC ("WCM"), member FINRA/SIPC.

Debt and equity underwriting, trading, research and sales, loan syndications agent services, and corporate finance and M&A advisory services are offered by WCM.

Mezzanine capital, private equity, municipal securities trading and sales, cash management, credit, international, leasing and risk management products and services are offered by various non-broker dealer subsidiaries of Wachovia Corporation.

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