Compensating Balance definition

Compensating Balance means the portion of any demand deposit (or any time deposit or certificate of deposit) maintained by a carrier (or by any per son on behalf of the carrier) which con stitutes support for existing borrowing arrangements of the barrier (or any per son) with a lending institution. Such ar rangements include both outstanding borrowings and the assurance of future credit availability. (The compensating balance requirement should be adjusted by the amount of float unless such ad justment would cause the compensating balance to be greater than the cash balance per carrier’s books. The float ad justment is made by substracting the float from the compensating balance re quirement if the collected bank ledger balance exceeds the cash balance per car rier’s books or by adding the float to the compensating balance requirement if the collected bank ledger balance is less than the cash balance per carrier’s books.)

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Compensating Balance means the portion of any demand deposit (or any time- deposit or certificate of deposit) maintained by a carrier (or by any per son on behalf of the' carrier) which con stitutes support for existing borrowing arrangements of the carrier (or any per son) with a lending institution. Such ar rangements include both outstanding borrowings and the assurance of future credit availability. (The compensating balance requirement should be adjusted by the amount of float unless such ad justment would cause the compensating balance to be greater than the cash bal

More Definitions of Compensating Balance

Compensating Balance means the cash balance which the Treasurer maintains with a depository to compensate the depository for its services.

Compensating Balance means a balance on which no interest is paid to the account holder and any earnings are retained by the Contractor as compensation for services under the Agreement.