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Excerpt from SEC FRP 203.02.b An arrangement where the [compensating] equilibrium required is expressed as a mean after some time would ordinarily result in extra footnote disclosure of the standard amount required to be maintained for arrangements in existence for the reporting day given that the amount held for the shut with the reporting period
Some borrowing arrangements tend not to prohibit the withdrawal of compensating balances, but being a functional make a difference; long term credit availability could be dependent on the upkeep of these kinds of balances. Accordingly, reporting entities need to disclose this point (by way of example, "the compensating balances can be withdrawn, b