Home > Lending > Fed Funds

Fed Funds

Look To UBB As Regional
Fed Funds Market Maker

It is the intention of United Bankers' Bank to be a regional market maker in Fed Funds. UBB will pay market premium rates to attract sellers of Fed Funds. UBB intends to meet the funding needs of community banks by selling Fed Funds on a consistent best efforts basis subject to market conditions and fund availability as determined by UBB at its sole discretion.

Guidelines Revised To Better Serve You

Effective Feb. 1, 2008, UBB modified its Fed Funds Guidelines as follows:

  1. Borrowing limits
    50% of equity capital or $5,000,000, whichever is less subject to change as provided in the Federal Funds Agreement.
  2. Higher limits
    Borrowing limits on an individual bank request basis may be approved at the discretion of UBB.
  3. Consecutive Borrowing Days
    No specific limit on consecutive borrowing days (although Fed Fund borrowing beyond 90 days is generally discouraged). The rate will increase after 30 consecutive borrowing days.
  4. Collateral Pledge
    You may be asked within UBB's discretion to secure your Fed Fund borrowings through a collateral pledge in accordance with the terms of the Federal Funds Agreement.

UBB retains the right within its discretion to change or modify its Fed Funds program. In particular, customer financial performance or market strategies initiated by a customer that significantly raises risk as determined by UBB may result in Fed Fund borrowings being limited, subject to interest rate increases, available on a secured basis only, or not available at all.

We encourage you to review the Federal Funds Agreement for the complete terms of the UBB Fed Funds Program, and contact your correspondent banking officer with any questions you may have.