REPURCHASE AGREEMENTS

A repurchase agreement* involves a short-term sale and subsequent repurchase of securities by a bank or other financial institution. The initial sales and the repurchase are made at the same dollar price with an agreed upon rate of interest paid to the initial buyer by the seller at the time of repurchase after a specified period of time.

Terms and Structures

• Maturity
  From one to 90 days
• Issued
  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
• Form
  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 Reserve system
• Quoted
  Repurchase agreements are quoted on a yield basis
• Rate Structure
  Yields vary according to money market conditions
• Interest
  Paid at maturity
• Denominations
  Normally issued with a minimum denomination of $100,000
• Security
  Securities used in repurchase agreements are typically direct obligations of the U.S. Government or federal agencies
• Tax Status
  Fully taxable on the federal and state level

Related Products and Services
•Online Money Market Trading

Corporate & Institutional Customer Service