Short Term Borrowing

Short-Term Borrowing

An account shown in the current liabilities portion of a company's balance sheet. This account is comprised of any debt incurred by a company that is due within one year. The debt in this account is usually made up of short-term bank loans taken out by a company.

Definition of Short-Term Borrowings

Under the proposed rule, 'short-term borrowings' would be defined by reference to the various categories of arrangements that comprise the short-term obligations reflected in a registrant's financial statements, and all registrants would be required to present information for each category of short-term borrowings. Specifically, as proposed, 'short-term borrowings' would mean amounts payable for short-term obligations that are:

1.     Federal funds purchased and securities sold under agreements to repurchase;

2.     Commercial paper;

3.     Borrowings from banks;

4.     Borrowings from factors or other financial institutions; and

5.     Any other short-term borrowings reflected on the registrant's balance sheet.

LONG-TERM BORROWING

Twice a year (generally in the Spring & Fall following the Annual General Meeting and Semi-Annual respectively) the MFA will fund the loan requests of clients which have been vetted through all appropriate approval processes. Dates for regional district submission of loans requests are typically one month prior to the Annual General Meeting and Semi-Annual meeting.

Once a loan has been approved, clients can generally expect funding to occur in April for the Spring Issue or October for the Fall Issue. On occasion, the funding date may vary so please monitor the website for updates. If funds are required prior to issuance, please access our Short Term Borrowing page. The MFA will determine the exact date of funding as it monitors the capital market for the best interest rates available.