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#2091739 - 08/04/16 10:12 PM Repurchase Accounts
Betty Banker Offline
Member
Joined: Sep 2015
Posts: 54
We have several accounts set with under repurchase agreements. It has been brought to my attention that checks have been issued on the accounts and deposits are also being made into these accounts. Can repurchase accounts be transactional accounts?

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#2091745 - 08/05/16 10:23 AM Re: Repurchase Accounts Betty Banker
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
I don't know where to start except to say that some banks offer transaction accounts where deposited funds are swept up into a repurchase agreement nightly and swept down to cover checks presented for payment. You need to find someone in your bank who can explain your product offering to you.
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#2091861 - 08/05/16 03:15 PM Re: Repurchase Accounts Betty Banker
ahkcompliance Offline
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Joined: Sep 2008
Posts: 2,474
Midwest
We offer a product as Ken described.

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#2091887 - 08/05/16 04:13 PM Re: Repurchase Accounts Betty Banker
Rocky P Offline
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Joined: Jun 2003
Posts: 7,650
Florida
SWolfe, you may also want to take a look at the repurchase agreement, signed by the customer and the bank to identify responsibilities and limitations.
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#2095001 - 08/24/16 04:58 PM Re: Repurchase Accounts Betty Banker
SMQ, CRCM Offline
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Between the lines
What type of accounts are the banks using to sweep the funds into and out of?

Can they use Money Market accounts or Savings Accounts? What about excessive transaction restrictions?
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#2095003 - 08/24/16 05:06 PM Re: Repurchase Accounts SMQ, CRCM
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The need for sweep accounts died in 2011 when it became possible for banks to open interest bearing DDA's for any customer.

If the funds are worth a premium interest rate to your bank, just design an interest bearing DDA with minimum balance requirements that makes the project worthwhile.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2095051 - 08/24/16 06:52 PM Re: Repurchase Accounts Betty Banker
SMQ, CRCM Offline
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Joined: Apr 2001
Posts: 4,828
Between the lines
So if I read between the lines, the excessive transaction rules would still apply. Doing an audit and found a couple where the accounts are MMAs and I wanted verification that this won't work.

Thanks,
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#2095074 - 08/24/16 07:30 PM Re: Repurchase Accounts SMQ, CRCM
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The restrictions on activity apply to all savings accounts, particularly those used to fund "sweep" arrangements.
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#2095094 - 08/24/16 08:01 PM Re: Repurchase Accounts Betty Banker
SMQ, CRCM Offline
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Between the lines
Thanks, appreciate the verification!
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