Business Banking - Repurchase Agreements

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Cash Management Account

A Cash Management Sweep Account is available to all business and municipal customers who have excess cash balances that they would like to invest. This account is a repurchase agreement relationship in which all collected balances in an interest-free account are automatically transferred each night into an interest-bearing investment pool.

Transferred funds are collateralized by securities the bank owns, making this a safe and worry-free account.

At the end of each day after deposits, checks and ACH activity have posted or cleared the account, the remaining balance is then transferred into an interest-bearing investment pool without a "floor" balance requirement. Chemical Bank helps you earn more by investing "all" of your funds. Service charges are calculated based on the account type and the account activity.

All collected funds are invested based on a variable tiered rate that is indexed to the current Fed Funds rate.

All funds are kept in the same demand debit (checking) account, so you do not need to track transfers between accounts on a daily basis. The funds are liquid and there are no minimum requirements.

* Investment products are not bank deposits, not insured by the FDIC or any other government agency, not guaranteed by Chemical Bank, and may go down in value.


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