Reverse Repurchase Agreements are advances that are fully secured by securities owned by the member and held in safekeeping at Corporate America Credit Union.  Advances may be made for the member's liquidity or for arbitrage purposes.

A reverse repurchase transaction is the sale of a security with the simultaneous agreement to repurchase the same security on a certain date in the future at a predetermined price.  Eligible securities include:

• U.S. Treasury bills, notes, and bonds
  
• Government agency notes, bonds and discount notes
  
• Certain government mortgage-backed securities

Physical securites must be in negotiable form.  Certificates of Deposit and Bank Agreements, among other securities, are not eligible for the program.

For more information, please contact Corporate America at (205) 313-4300 or (800) 292-6242 ext.100.